THE LEADERSHIP CENTRE FOR LOCAL GOVERNMENT (A company limrted by guarantee) REPORT OF THE TRUSTEES and FINANCIAL STATEMENTS for the year ended 31 March 2024 Company Registration Number 05467557 Charity Number 1123234
The Leadership Centre for Local Government Year ended 31st March 2024 REPORT AND FINANCIAL STATEMENTS 2024 CONTENTS Page LEGAL AND ADMINISTRATIVE DETAILS................... .. . .................... WHATWE DO................................................................................................. CHAIR'S STATEMENT................................................................................... STATEMENT OF TRUSTEES, RESPONSIBILITIES.................................... 15 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LEADERSHIP CENTRE FOR LOCAL GOVERNMENT................................ 17 STATEMENT OF FINANCIALACTIVITIES...................................................21 BALANCE SHEET.........................................................................................22 STATEMENT OF CASH FLOWS..................................................................23 ACCOUNTING POLICIES.............................................................................24 2of29
The Leadership Centre for Local Government Year ended 31st March 2024 LEGAL AND ADMINISTRATIVE DETAILS Re istered Name: The Leadership Centre for Local Govemment Chari number: 1123234 Com an number: 05467557 istered office: 18 Smith Square. London SW1 P 3HZ Statuto Auditors- PKF Littlejohn LLP. 15 Westferry Circus, Canary Iltharf, London E14 4HD Bankers: Barclays. UK Banking, 1 Churchill Place, London, E14 5HP Solicitors: Bates Wells London LLP 2* Cannon Street, London. EC4M 6YH Directors and Trustees The Directors of the charitable company {the charity) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees. The Trustees serving during the year and up to the date of approval of the financial statements were: Attendance- possible 5 Board Meetin Helen Baile Tamara Finklestein Cllr Keith House David Llo Chair Lord Ga Porter resi Jan Sobiera. Mel Nebhra ani resi ned 1P Jul 2024 ned 1$1 December 2023 ointed 17th Jul 2024 Chief Executive Mark Rogers Secretary and Chief Operating Officer John Jarvis 3of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees. Annual Report WHAT WE DO The Leadership Centre supports and empowers leaders of SerViS to the public to have the greatest collective positive impact with the communities they serve. We work with organisations and individuals across all sectors, with an emphasis on leadership of place. We seek to connect and collaborate to explore and address the most complex issues facing communities, staying relentlessly focused on the leadership required for improved social, economic and environmental outcomes. CHAIR'S STATEMENT It is with great pleasure that I present the Leadership Centre's Annual Report. 2023-24 was. to use a sporting metaphor, a game of two halves. The organisation continued its adaptation to the post-pandemic world and, crucially, commenced implementation of a new three-year strategy and communications plan to reflect and, insofar as possible, anticipate the present and future leadership challenges for those seeking to enhance public good. The strategy sets out our purpose an unwavering commitment to support leaders in their endeavour to understand and respond to complexity, develop their political acumen and become culturally competent. Underpinning this, we have identified three key missions.. Innovate.. We are committed to creating a collaborative missions-based platform for experimentation and enquiry. We want to act as a convenor in this space because we believe breakthroughs can come from connecting disciplines which should be discussing social issues together, but are not. Inspire.. We offer a range of cutting-edge projects. programrnes and supportive, experienced consultancy. Our work is designed to help create significant, sustainable transformation in complex systems - ultimately creating lasting change which benefits society. Invest.. We are interested in every system that is finding the leadership challenge difficult and we want what we have to be available to everyone. We are developing opportunities which support future generations of leaders and help organisations to reach the people they aspire to reach, by supporting them to invest in local communities in a way which builds relationships and activates populations. With this clarity of purpose and direction, the Centre's team has been working hard on delivering programmes and projects with its clients, whilst also investing into the range of business development opportunities set out in the strategy. At the same time as focusing on delivering the Centre's missions, the organisation has also had to address the challenges arising from a very tough market, especially in the public sector. If the pandemic changed the way the clients had to operate to stay safe and healthy, then its wider economic consequences have accentuated an already considerable challenge to maintaining, let alone growing revenues. Consequently, the Centre's strategy has been strengthened to place an even clearer focus on growth, with a commitment to returning to profit in the 2024-25 financial year and restoring its reserves over the medium term. 4of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees, Annual Report Consequently, 2023-24 has been a process of continued delivery of bespoke, high quality and impactful development. At the same time. it continued researching and investing into new opportunities to strengthen and grow the reach and reputation of the Centre, supported in this work by drawing upon expert advisers in the commercial development of organisations like ours. I hope that you enjoy reading about our ambitious agenda and would be delighted for you to join us on thisjourney of supporting leaders to be the very best they can be forthe communities they serve. David Lloyd, Chair 5of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees, Annual Report REPORT OF THE TRUSTEES The Trustees present their report and audited financial statements of The Leadership Centre for Local Government {"the Leadership Centre") for the year from 1 April 2023 to 31 March 2024. The Trustees have adopted the provisions of the Statement of Recommended Practice 'Accounting and Reporting by Charities. ('FRS 102 SORP") in preparing the annual report and financial ststements of the charty. The financial statements have been prepared in accordan with the accounting policies set out in notes to the accounts and comply with the charity's governing document, the Charities Act 2011, the Companies Act 2006 and relevant Accounting Standards. The Trustees consider that the current level of the Centre's unrestricted funds and, along with the continuing likelihood of securing funding for periods beyond April 2024. and with ongoing financial support from the LGA for at least a period of 12 months from the date of signing the accounts, the Centre has. sufficient resources to continue as a going concern. Structure, Governance and Management: The Leadership Centre was established to help local government in England improve its political and managerial leadership. Its principal source of funding at the time was the Department for Communities and Local Government (DCLG), drawing on the Capacity Building Fund. The Centre was originally set up as a limited company and became a registered charity on 1 April 2008. The Leadership Centre for Local Government is a company limited by guarantee governed by its Memorandum and Articles of Association dated of 13 June 2005, amended on 3 September 2007, 5 March 2008. 20 May 2009 and 12 February 2014 to improve its governance arrangements. Appointment of Trustees As set out in the Articles and Memorandum of Association, new Trustees are nominated and appointed by the existing Trustees. There is no formally constituted nomination committee and nomination matters are reported and taken at ordinary meetings. The Board of Trustees will advertise and invite suitable candidates, who can bring a full range of expertise to the Board, establishing their suitability through a formal selection process. Trustee Induction and training New Trustees have a one-to-one meeting with the Chair and receive a full information pack comprising the Memorandum and Articles of Association, the Charity Commission guidelines for Trustees, agendas, papers and minutes of the last year's board meetings, a blank register of interests form and the list of dates for future meetings. Organisation The Board of Trustees is responsible for the strategic direction of the Leadership Centre and is concerned with ensuring sound stewardship of the organisation, including overseeing its financial and business performance and agreeing related policies. The Board met four times in the year. The role ofthe Chair is paid, as set up in the Memorandum and Articles ofAssociation and approved by the Charities Commission. There is no formally constituted audit committee and audit matters are reported and taken at ordinary meetings of the Board. The Board also sets the pay for the Chief Executive, who is deemed to be the key management personnel of the charity. The Chair works closely with the Leadership Centre's Chief Executive and Company Secretary who have delegated authority from the Trustees to manage the day to day running of the charity and delivery of its objectives in accordance with the agreed business plan and budget, including operational management of the Centre. finance and employment matters. 6of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees, Annual Report Related parties Trustees and senior officers verbally declare any potential conflict of interest at the beginning of each Board meeting. In addition. a register of interests is completed by Trustees and senior officers every year. Details of any transactions with related parties are fully disclosed in the Annual Report and Accounts in Complian with the applicable financial reporting framework. Objectives & Activities: The objects of the Leadership Centre for Local Govemment, as set out in the Memorandum and Articles, are.. 1. The advancement of education for the public benefit, in particular (without prejudice to the generality) by promoting, improving and developing leadership amongst public servants and, in particular, local authority employees and councillors. 2. To promote for the public benefit the efficient public administration of government and public services by the provision of education and training in the organisation and practice of the administration of government and the development of leadership skills for public servants, in particular, local authority employees and councillors. All the charities activities are informed, designed and delivered through the lens of these objects and are undertaken to further our charitable purposes for the public benefit. In deciding the charities objectives and activities, the Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties. Strateglc Mlsslons: The Centre's 2022 25 strategy brings together the key elements of organisational purpose, values and practice that will continue to deepen and broaden the Leadership Centre's impact. Conceptualised as three missions. the approach will amplify the Centre's distinctiveness and positive reputation. Innovate: We are committed to creating a collaborative missions-based platform for experimentation and enquiry. We want to act as a convenor in this space because we believe breakthroughs can come from connecting disciplines which should be discussing social issues together but are not. Inspire.. We offer a range of cutting-edge projects, programmes and supportive, experienced consultancy. Our work is designed to help create significant. sustainable transformation in complex systems- ultimately creating lasting change which benefits society. Invest: We are interested in every system that is finding the leadership challenge difficult and we want what we have to be available to everyone. We are developing opportunities which support future generations of leaders and helping organisations to reach the people they aspire to reach, by supporting them to invest in local communities in a way which builds relationships and activates populations. 7of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees, Annual Report Significant Activities Undertaken: Leadership Development Activities Throughout the financial year the Leadership Centre created, designed and delivered a variety of projects and programmes aligned with its core priorities and in response to the needs of leaders and communities. Leadership Centre Originated Programmes: Future Vision.. Future Vision's purpose is to help senior leaders address the leadership challenges they are facing, helping to inspire and create a better future ft)r citizens by enabling systems change through leadership development. Leading the Impossible.. Launched as a prototype in early 2024 it is an experimental and immersive programme designed to support leaders to drive radical change in stuck systems. Local Government.. Councils.. the Centre has supported a broad range of council teams, from city boroughs to counties and from those struggling financially to those looking forward and stretching into the future. {drafting note.. Thurrock, Lambeth, Cambridge City, Nottinghamshire} Future Leadership.. In line with the Centre's ambition to create and contribute to opportunities which support future generations of leaders the organisation has in collaboration with the Local Government Association, delivered a new programme for local government officers and councillors, and in partnership with the Connected Place Catapult started to deliver a programme of support of those with the responsibility of being effective stewards of their local innovation economy. {drafting note.. Boosting Middle Leaders, ACE prog, IPLA} Combined Authorities.. The Centre has worked - on occasion with the Local Government Association - with Combined Authorities to design and deliver a range of interventions - from bespoke to support to specific mayoral combined authorities, to facilitating large pan geographic communities of practice. The ambition of the interventions is to both assist in the locality now, and inform future support for upcoming devolution places. {draft note SYMCA, LGA MCA, etc} Health: The Leadership Centre has continued to work with a wide range of health leaders and organisations across the country to support the development of systemic leadership and place-shaping practice. With differing levels of investment, funding, health status and inequalities, infrastructure. as well as the less obvious but critical differences in relationships, leadership styles, culture, collaborative working. the Leadership Centre approach has therefore been flexible and adaptive in each place rather than applying a fixed and prescriptive process regardless of local history and context. Leadership and change support has included working with Integrated Care System boards, GP'S voluntary and community sector leaders and patient advocates. {drafting note.. includes - Devon, GM pop health, LfSC} Community Wellbeing: From tackling homelessness to inspiring people to get active the Centre has supported councillors, local government officers, voluntary and community sector staff and the community with leadership development inteplentions focussed on directly improving health and wellbeing outcomes for residents. Let's Go Southall- Southall, in the London Borough of Ealing. is a vibrant, multicultural town, rich in diversity and home to migrant communities from across the world, including India, Pakistan, Sri Lanka. Bangladesh and Somalia. With an inactive population of at least 430/0 and the highest levels of preventable and chronic health conditions in the borough, the Southall community and Ealing Council wanted to change the system. redesigning it so it no longer produces the inequalities created by the status quo. 8of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees, Annual Report To support the mission. the Leadership Centre co-designed a bespoke programme for Southall residents - investing in community leadership and change capacity. This has resulted in the development of a collaborative leadership and learning system from which a movement for change has been created. Power has shifted to the community, harnessing and releasing the energies and expertise of a diverse set of people and fostering spaces to challenge and change the existing system. Ealing CYP.. working with a design team from across statutory and non-statutory bodies the Centre created a reflective space to encourage deepening of relationships and trust, to better understand the 'system' in Ealing and the human experience within it, test out different ways of working together with children and young people as 'prototypes'. Participants found that the spaces 'were great for connecting action and focus,. Homeless Link.. The Leadership Centre worked with the Homeless Link Partnerships Team to raise awareness of the power of influence- at all levels and without positional authority- and to build the confidence of front-line staff in bringing new ideas into their organisations, and in shifting thinking, behaviour and action. "I can see through the complexity more clearly and, instead of becoming overwhelmed by it, can focus on what I have the power to change in a very practical way.. Active partners Trust.. The Centre has designed and delivered a series of interventions to build capacity to work in systems and across boundaries. The focus has been in pursuit of the outcomes identified in local projects including Walk Derbyshire and the Children and Young People's Healthy Weight Initiative 2. Network Actlvatlon During the 2023-24 year the Centre invested in capacity to further develop its extensive neork, which includes over 300 Alumni and a vast range ofcolleagues from local and national organisations, skilful leadership and change practitioners, and interested parties. There is inherent opportunity in this exceptional network which can be a powerful stimulus and catalyst for change in public servi5 and in civic society in the round. Activity has involved.. April 23: The power in community,. a re-imagined future. An event for alumni exploring different facets of leadership, community. empowerment and equity. June.. Crossing the Chasm.. enabling courage and imagination in times of uncertainty. Professor Marshall Ganz joined us in London for his first ever week in the UK to put on this interactive workshop in collaboration with Birmingham Leadership Institute, NHS Horizons and the leading change nehvork. July 23.. Leadership Centre Summer Event.. an opportunity for all the Centre's networks to come together - activities and interventions were framed by the Centre's Inspire. Invest, Innovate missions. Feb 24.. Al Horizons.. Exploring the impact of Al for leaders and communities Corporate Development: 2023-24 represented the start ofa process of changing, upgrading and refining our intemal and external infrastructure and processes. Below are just some of the highlights: Cultural Competency." The Leadership Centre has committed itself to becoming culturally competent. That is. exemplifying 'a set of congruent behaviours, attitudes, and policies that come together in a system, agency, or among professionals that enable effective work in cross cultural situations.. As an organisation, we are at the early stages of this journey, which started with a 48 hr residential with experts. The insight generated is being woven into the fabric of the organisation, both how we are internally, and what we do externally. Internal infrastructure= The Centre has invested in the development and launch of a new CRM, innovation process and more sophisticated communications. Website.. During 2023-24, the Centre's website architecture, user journey and content was overhauled with a soft relaunch in quarter 4. Initial indications are that it's have a positive impact of usability resulting in an uptick in enquiries. 9of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees, Annual Report Achievements & Performance: Leadership development impact: °It was immediately obvious to me that the programme was developed with an excellent understanding of the environments that all of us wrestling with system change work within." "A lot of the suggestions were very practical and immediately applicable - that's what I really loved about the training. I took a lot back from it." 'The programme has given me the taste for leaming more," I would love to be able to immerse myself for longer in this type of thinking and learning, beGause I really do believe if's the only way we can make the differenGe that we want to make." 'The Leadership Centre's approach stmck me as very participativg, collaborative and inclusive. "I think we underestimate the power of creating thinking time and capacity to bring together all of the knowledge and experienGe in our system to cr88te the opportunity for collective decision- making.. "The beauty of this way of working is that I have18amt enomiously from the work we have done together, so I will have the Leadership Centre's words of wisdom in my ear as I facilitate future sessions. The knowledge. expertise and challenge that they brought was so helpful." 'The sessions were exce118nt. Just enough input to understand the concepts, but with lots of practical applicability.. "The approach definitely produced drfferent results the feedback I received was really powerful. It seemed to 18ave an imprint on people in a way that perhaps the data on its own simply couldn't. People seemed enthusiastic to get onboard and immediately made commitments to support change in their own particular spheres of influence, which was fantastic. 'I've learnt that we've all got power to inlluence from wherever we are in the system - just by telling the story and advocating for what we're after. Sometimes public health can be a bit academic and yet you aren't taught about systems leadership. It is that which helps bridge the gap from the academia to making it real for the people you are trying to influence. It helps you nudge change in the right direction - and that's a vitally important first step in tackling some of the biggest societal issues we face." "For me, the Leadership Centre was a great rit, because they didn't come with 8 fixed model, that they were set on shoehorning into the sessions. It was an iterative process of developing an approach together, tailoring it to the team and catching up regularfy to build the feedback from the previous session into the next one." .1 would 1 IOYO recommend this type of development to any team wanting to work on their team dynamics whilst working on the issues that really matter in their work. The learning is multi- dimerpsional and tailoring it to your own operating context is a very powerful way of learning together. Having facilitators who can expertly guide you towards the technique or approach which will help you in a particular moment is fantastic. It is a bTrve step to release your grasp on where you think the sessions will take you, but it has certainly been a very rewarding journey for our team and for me as their director.. 'Just wanted to say a big thank you for all your thought, creativity and organisation for cohort l. Really impressive growth and feedback. It has seNed London welll Thank you." 10of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees, Annual Report Communications: All digital platforms had increases in interactions and followership. resulting in more enquires. X.. posts.. 1981 Impressions: 63,5001 Followers: 180/0 increase Linkedln.. posts.. 791 Impressions- 19,5001 Followers.. 1300A increase Website.. 49,000 visitors, visiting 68,000 times with 278,000 events (events are users taking an action on the site, such as clicking a button, playing a video or submitting a form) Last year 1,500 were returning visitors, this year 9.600 were returning visitor, indicating positive shifts in user behaviour. Financial Review: From the beginning of the first lockdown. the Covid-19 pandemic impacted the Leadership Centre's reserves over an extended period of time as it sought to maintain support for public service leaders and staff whilst regular ways of operating were restricted. Whilst steps were taken to maintain the viability of the Leadership Centre through reducing overheads, actively managing debtors and shifting ways of working, it was not possible to offset fully the impact on revenues and margin and, therefore, reserves. Consequently. the Centre continues to fi'nd new ways to grow itself out of a short-term position. 2022-23 represented a financial shock to the organisation. which became clear mid -way through 2023-24. With clarity of the situation, the Leadership Centre has managed to attract some private sector support, as well as significant specific funding from public sources, to reduce the in-year deficit compared to the previous year, which would have been fully closed had slippage not occurred in some client projects. The Leadership Centre has further invested in core capacity, providing the foundations for growth and product development. Results were a use of reserves of £292k (a £152k increase from the £140k deficit the previous year). Income for the year was £1,747k (a £29k fall from £1,776k the previous year). Support costs increased by £218k and overall staff costs increased by £229k. Expenditure for the year was £1,899k (£171k down from £2,070k the previous year). During the year the charity received a restricted grant of £10k which was fully spent in the year. As a result, the reserves figure at the year*nd decreased to a deficit of £292k (down from a £140k deficit the previous year). Princi al risks and uncertainties The Leadership Centre's operating environmentand future activities are shaped by the complex interaction of many factors including.. The future of public services and their role being radically uncertain recession, inflation, extended pandemic impact, climate change, food and fuel security alongside challenges specifically felt locally such as, economies, inequality and inequity means there's a lot of important and urgent issues taking leadership time potentially inhibiting a learning environment. The needs of leaders and the need for leaders- needs are likely to grow extensively as leaders, resilience is tested again. Also, a higher-than-normal turnover of experienced leaders is not being matched by a widening of the pipeline of the upcoming. Competing ideas and philosophies about what the future of the country looks like, how we might get there and who needs to be involved makes authorising environments and purpose fuzzy, helping leaders navigate this will be a key challenge. With a general election on the horizon, and tough spending decisions for local and national public services, there is a situation where decision making and funding for development may be further squeezed. 11 of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees. Annual Report Acquiring sustainable fijnding from sources that align with the Centre's mission and values remains a key challenge. The Leadership Centre has reviewed its arrangements for risk management with clear responsibilities assigned to named senior officers for the management of the principal risks. The Trustees consider these risks are being effectively mitigated. Reserves olic The reserves policy requires the retention of adequate funds to support approximately six months of operating costs for the Leadership Centre. Taking account of current costs and operational circumstances, the retention required to cover at least three months of full staff costs and accommodation, including facilities and IT would be £175,000. The policy, which is reviewed regularly, is considered adequate at the present time. Vlthilst it is currently not met it will be looked at again, in the light of changing economic, funding circumstances and timing. As at 31st March 2024, the balan on unrestricted reserves was -£292k. The breadth of current projects, coupled with the new strategy. project pipeline, and institutional supporters, provides a platform for the Leadership Centre to return to regular surplus, contributing to reserves over the next 3-5 years, bringing unrestricted resenies closer to the optimal amount. Goin Concern The trustees have considered the financial position and future business prospects and consider that a going concern opinion is reasonable. The change in the charity's financial circumstances, largely due to an extended Covid-19 impact, are unprecedented for the Centre, but recoverable.ln an immediate response to these matters the charity has taken action to reduce overheads. secure institutional supporters, and increase trade. Looking forwards Trustees have considered: Demand for the services.. the services the Leadership Centre provides are in demand and highly regarded. The context in which public sector leaders are operating is only becoming more complex and challenging. Leaders say the support we provide them is invaluable. Financial performance: Reviews of existing services provided and changes to new ones will improve individual projects financial performan and the overall organisations stability. This is a process which will continue. Existing commitments: The Centre has a breadth and depth of committed project and clients throughout 2024-25 and into 2025-26 to provide a level of certainty now. and which also creates a platform for increased activity in future years. Strategy and Pipeline: The Centre's strategy and business plan provides a basis on which new partnerships can be fomed and existing ones extended. It will support the charity to offer new services into existing sectors and reach into new ones. LGA support.. The LGA has committed to provide the Leadership Centre with ongoing financial support for at least a period of 12 months from the date of signing the accounts. In addition, the Trustees continue to investigate opportunities to enhance the long-term sustainability of the charity. including new areas of business and sponsorship. As a result of all the above the Trustees consider the going concem basis to be appropriate. 12of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees, Annual Report Plans for the future: The Leadefship Centre views itself as being part of a wider national ecosystem of leadership for public good, embracing a generous ethos in doing its work. This drives it to seek excellent value for the investments of money and time that clients and partners place into its services. This approach positions the Leadership Centre as a thinking partner and critical friend to those institutions, places, and individuals that it works alongside whilst staying objective, curious and empathetic, and striving for excellence. Direction of travel.. The essence of the Centre's direction of travel is captured in its 'do-tank' approach, embodied in restless enquiry into how leaders can best understsnd and navigate complexity and, accordingly, achieve the greatest public good through their partnerships and in their places. The decisions made, resources deployed, paths walked or made will continue to be framed by the Centre's strategic missions. Innovate.. examinin cuttin d e leadershi issues that matter most. We believe that innovation happens when unlikely combinations of people come together in enquiry, so we act as a convenor, connecting a variety of disciplines through a rolling programme of 'Enquiries' that anticipate and investigate the changing demands of leadership and the challenges being fad. Ins ire.. deliverin levance and excellence. The Centre will generously share its learning, thought leadership and extensive intellectual and human resources and networks. We will grow the role, involvement and impact of all the Centre's alumni and allies, ensuring the availability of more entry and progression pathways, a wider range of learning sets and nefvrforks, and a programme of one-off refresher or new learning opportunities. Invest.. nurturin future leaders. The Centre aims, with partners, to strengthen the pipeline of future leaders and ensure its diversity reaching out to under-served sectors, organisations, people and places. We will create more opportunities for first and middle leaders to engage in systems thinking, system challenges and place-based leadership so that they are better equipped both in the here and now and for more senior roles they may seek in the future. 13of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees, Annual Report Aims & Objectives: 2024 marks the 20th anniversary of Leadership Centre and the business plan for 2024-25 structures the Centre's aims and objects to build on that legacy, across three main areas.. Corporate.. Governance (Trustees).. recruit and refresh the board of trustees. Data and Insight infrastructure.. develop more granular insight and data reporting to inform decisions. Internal process enhancement: improve project & project financial management as well as fully adopting the Centre's innovation process. Our Growth Engine". designed to generate higher customer satisfaction leading to increased advocacy and client acquisition. Products and Services: The Centre will further tailor its existing and new products and seprfices to particular sectors and leaders. All our interventions will feature the characteristics ot. Agile Targeted Generate surplus Feature the qualities of Innovate, Inspire, Invest Visibility and Credibility: The Centre will invest further capacity in improving its visibility and credibility through.. Engagement: including social media, Alumni. Open sessions, Presence at events and conferences Communication.. including phase 2 development of the website, formulation and exaction of a number of campaigns. and publishing more thought leadership materials. Validation.. including commissioning an Impact evaluation and obtaining relevant organisational certifications 14of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees. Annual Report Auditors A tendering process is in progress in relation to the appointment of the role of Statutory Auditor. A resolution for the appointment of the auditors of the Company is to be proposed at a forthcoming Board Meeting. Approved by the Board of Trustees on 3rd October 2024 and signed on their behalf by David Lloyd Trustee 16of29
The Leadership Centre for Local Government Year ended 31st March 2024 Trustees, Annual Report STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees (who are also directors of the Leadership Centre for Local Government for the purposes of company law) are responsible for preparing the Trustees, Annual Report and the financial statements in accordan with applicable law and regulations. Under Company law the Trustees are required to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the excess of income over expenditure 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 the Charities SORP., make judgements and estimates that are reasonable and prudent., state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial ststements., and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue its activities. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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 have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities. 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 UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Provision of Infomiation to Aud013 In so far as the Trustees are aware: there is no relevant audit information of which the charitable company's auditor is unaware: and the Trustees have taken all reasonable steps to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The Trustees are responsible for the maintenance and integrity of the corporate and fi'nancial 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. This confirmation is given and should be interpreted in accordance with the provisions of section 414 of the Companies Act 2006. 15of29
The Leadership Centre for Local Government Year ended 31st March 2024 Independent Auditors Report INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE LEADERSHIP CENTRE FOR LOCAL GOVERNMENT Opinion We have audited the financial statements of The Leadership Centre for Local Government (the 'charitable company,) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended" have been properly prepared in accordan 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 thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlng to golng 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 e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. other information The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or othetwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 17of29
The Leadership Centre for Local Government Year ended 31st March 2024 Independent Auditors Report 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 includes the directors, report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and the directors, report included within the trustees. report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understsnding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report included within the Report of the Trustees. We have nothing to report in respect ofthe 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, 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., we have not received all the information and explanations we require for our audit., or the trustees were not entitled to take the small companies. exemption from the requirement to prepare a strategic report. Responslbllities of trustees As explained more fully in the Ststement of Trustees, Responsibilities, 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 conrn 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. Auditorfs responslbllltles for the audit of the financlal statements Our objectives are to obtain reasonable assurance about whether the fi'nancial 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= 18of29
The Leadership Centre for Local Government Year ended 31st March 2024 Independent Auditors Report We obtained an understanding of the charitable company and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management. sector research and application of cumulative audit knowledge and experience. We determined the principal laws and regulations relevant to the charitable company in this regard to be those arising from the Companies Act 2006, Financial Reporting Standard 102, the Charities SORP and relevant employee legislation. We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the charitable company with those laws and regulations. These procedures included. but were not limited to enquiries of management, review of minutes and review of legal and regulatory correspondence. We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override ofcontrols, that there was a potential for management bias in the timing of recognition of income from grants. We addressed this through review of all material grant agreements to ensure correct treatment under the Charities SORP, including consideration of the accounting period in which income should be recognised. We also identified potential for management bias in the judgements made around recoverability of debtors. We addressed this through examination of post year end cash received, review of correspondence with debtors and discussion of recoverability with management. We also identified potential for management bias in the allocation of support costs against charitsble activity categories. We addressed this through reviewing the method used for reasonableness and re-performing the calculation to ensure it had been performed accurately in line with the stated method. As in all of our audits. we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing ofjournals., reviewing accounting estimates for evidence of bias,. and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non<ompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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.or .ukJauditorsres nsibilitieshtt ://www.frc.or .uk/auditors/audit- assurance/auditor-s-res onsibilities-for-the-audit-of-the-fildescri tion-of-the- auditor's-res onsibilities-forhtt s:IIMrww.frc.or .uk/auditorslaudit- assurance/standards-and- uidance1201 O-ethical-standards-for-auditors- description forms part of our auditorfs report. This 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 ft)r 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. 19of29
The Leadership Centre for Local Government Year ended 31st March 2024 Independent Auditors Report Alastair Duke (Senior Statutory Auditor) For and on behalf of PKF Littlejohn LLP Statutory Auditor 15 Westferry Circus Canary Wharf London E14 4HD Date.. 20of29
The Leadership Centre for Local Government Year ended 31st March 2024 Company Registration Number 05467557 BALANCE SHEET As at 31 March 2024 Notes 2024 2023 Current assets Debtors Short term Investments Cash at bank and in hand 350.711 640,876 10,000 360,711 10,000 650,876 Creditors: amounts falling due within one year Creditors falling due within one year 10 652,780 652,780 790.822 790,822 Net current Ilabllitles (292,069) 1139,946) Total assets less Current Ilabilities 292,069 139,946 Funds Restricted Funds Unrestricted Funds 13 13 292.069 292 069 139,946 139,946 These financial statements were approved by the Trustees on 3rd October 2024 and are signed and authorised for issue on their behalf by.. Davld Lloyd Trustee The accompanying notes form part of these financial statements. 22of29
The Leadership Centre for Local Government Year ended 31st March 2024 Company Registration Number 05467557 STATEMENT OF FINANCIAL ACTIVITIES Ilncorporating an INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 March 2024 Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Total funds 2023 Notes Income from: Grants Charitable Activities Investment income Total income 70,000 1.664,428 2,602 1,737,030 10,000 80,000 1,664,428 2,602 1,747,030 80,825 1,696,082 785 1,776,122 10,000 Expenditure on: Charitable activities other Costs Total Expenditure 1,868,536 20,617 1.889,153 10,000 1,878,536 20,617 1,899,153 2,048,901 10,000 2,069,692 Net expendlture 1152,123) (152,123) 1293,570 Reconciliatlon of Funds: Total funds brought forward (139,946) (139,946) 153,624 Total funds carrfed forward 14 (292,0691 1292.069 1139,946) There are no recognised gains or losses other than those disclosed above. All the above results derive from continuing activities. All income and expenditure in the prior year was unstrIcted. The accompanying notes form part of these financial statements. 21of29
The Leadership Centre for Local Government Year ended 31st March 2024 STATEMENT OF CASH FLOWS For the year ended 31 March 2024 2024 2023 Note Cash flow from operating activities 12 (502,280) Net cash oufflow from operatlng activities (502,280) Cash and cash equivalents as at 1 April 10,000 512,280 Cash and cash equivalents as at 31 March qo,000 10,000 Cash and cash equivalents consists of: Cash at bank and in hand Short term deposits 10,000 10.000 Cash and cash equivalents as at 31 March 10,000 10,000 The accompanying notes form part of these financial statements. 23of29
The Leadership Centre for Local Government Year ended 31st March 2024 Notes to the Financial Statements ACCOUNTING POLICIES BASIS OF ACCOUNTING The Leadership Centre is a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting standard applicable in the UK and Republic of Ireland {FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, The Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. GOING CONCERN The Trustees (who are also the directors ofThe Leadership Centre for Local Government ('the Centre,) for purposes of company law) have prepared the accounts on a going concern basis. As described in the Report of the Trustees, during 2023124 the Leadership Centre worked closely with the LGA and various publiclprivately funded specified bodies. The Trustees have considered the likely impact of Covid-19 on the operational activities of the Leadership Centre and are of the view that there was an impact. Looking forwards, Trustees have carefully considered., the demand and need for the charities services, the financial performance improvements available, existing commitments, operating environment, strategy and project pipeline. As a result of this deliberation, and the commitment of ongoing support from LGA, for a period of at least 12 months from the date of signing the accounts, the Trustees consider the plans, and likelihood of securing future funding adequate to ensure the Leadership Centre has sufficient resources to continue as a going concem. FUNDS Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. INCOME POLICY All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income, after any performance conditions have been met, when the amount can be measured reliably and when it is probable that the income will be received. Income from donations is recognised on receipt, unless there are conditions attached to the donation that require a level of performance before entitlement can be obtsined. In this case income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Leadership Centre and it is probable that they will be fulfilled. Government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met. it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. Investment income comprising only bank interest on short term deposits is recognised on a receivable basis. 24of29
The Leadership Centre for Local Government Year ended 31st March 2024 Notes to the Financial Statements RESOURCES EXPENDED Expenditure is recognised on an accruals basis. This occurs when a legal or constructive obligation commits the Leadership Centre to the expenditure. Irrecoverable VAT is charged against the category of resources expended from which it is incurred. Any costs of generating funds comprise the costs associated with attracting voluntary income. Charitable expenditure comprises those costs incurred by the Leadership Centre in the delivery of its activities and services for its beneficiaries. It includes both the costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Grants payable to third parties are included in expenditure on charitable activities. IAlhere unconditional grants are made, these amounts are recognised when a constructive obligation is created, typically when the recipient is notified that a grant will be made to them. Ihere grants are conditional on performance, then the grant is only recognised On any unfulfilled conditions are outside of the control of the charity. All costs are allocated beeen the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relats'ng to a particular activity are allocated directly.. others are apportioned on an appropriate basis. ALLOCATION OF SUPPORT COSTS Support costs are those that assist the work of the Leadership Centre but do not directly represent charitable activities and include office costs, governance costs, and project management costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to those activities on a consistent pro rata to the level of direct costs incurred. The analysis of these costs is included in notes 6 and 7. TAX The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010. It therefore meets the definition of a charitable company for UK corporation tax purposes. INCOME 2024 2023 Income fmm donations and grants Voluntary Income and Grants 80,000 80,825 Income fmm charitable activltles Services recharged 1,664,248 1,744,428 1,696,082 1,776,907 Voluntsry income and grants mainly relate to funding from other public sector bodies. It is allocated to the main activities of the charity. Services recharged include events and cOnferenS, publications and consultancy. £10,000 (2023: £nil) of the above grant income was attributable to restricted funds and £1,734,428 (2023.. £1,776,907) to unrestricted funds. 25of29
The Leadership Centre for Local Government Year ended 31st March 2024 Notes to the Financial Statements INVESTMENT INCOME All investment income arises from interest bearing deposits. The Leadership Centre participates in arrangements in which surplus cash balances are deposited with borrowers on the LGA'S approved list. The Leadership Centre's investments are pooled with those of other entities that have adopted the LGA Group Investment strategy. Investments are typically for periods of up to six months and as such the loan amount is a reasonable assessment of fair value. The LGA Group Investment Strategy strictly applies credit limits for all of the financial institutions to ensure that deposits are spread across a number of its approved counterparties. No credit limits were exceeded during the year and the Leadership Centre does not expect any losses on short temi investments. The difference between carrying value and fair value is immaterial. AUDITOR'S REMUNERATION The auditor's remuneration amounts to an audit fee of. 2024 2023 Audit fees 3,500 No non-audit fees were paid in the year to the auditor (2023.. £nil). EMOLUMENTS AND RELATED PARTY TRANSACTIONS Total remuneration of £17,117 (2023.. £17,168) was paid to the Chairs for work done in this capacity in accordance with a written agreement approved by the Trustees under clause 5.9 of the Memorandum of Association. Reimbursement of expenses to nil (2023." one) Trustee for travel costs totalled £nil <2023: £123). There were no other related party transactions in the current or prior year. EMPLOYEES 2024 2023 Staff, agency and secondments Staff Agency Staff fees 450,585 413,916 28,428 450 585 442 344 The aggregate employee benefits of key management personnel were £369,439 {2023.. £303,847). The average number of senior staff employed directly during the year was four (2023: four) with employee benefits, excluding employer pension costs. in the following ranges: Ran e£k 100-110 90-100 80-90 70-80 60-70 2024 2023 26of29
The Leadership Centre for Local Government Year ended 31st March 2024 Notes to the Financial Statements The average number of persons employed (including agency stsffj was 6.9 (2023: 6.7 persons). EXPENDITURE ON CHARITABLE ACTIVITIES 2024 2024 Activities Support undertaken Costs Directly 2024 Total Costs 2023 Total Costs Dellvery Areas Let's Go Southall Future Vision Leadership Centre Originated Projects Local Government Health Community Wellbeing Other 695,252 346,441 1,041,693 215,810 107,538 323,348 30,884 15,389 46,273 156,127 77,797 233,924 99,894 49,777 149,671 3,031 1,510 4,541 52,784 26,302 79,086 1,253,782 624,754 1,878,536 993,097 403,018 22,152 128,806 176,514 233,722 91,591 2,048,901 Total £10,000 (2023.. £nil) of the above costs were attn'butable to restricted funds and £1,868,536 (2023: £2,048,901) to unrestricted funds. BREAKDOWN OF SUPPORT COSTS 2024 2023 Finance support Direction General Office Costs 28,490 81,366 46,091 10,519 458.288 27,400 88,814 33,706 27,376 229 140 Staff Costs 624,754 406,436 Support costs are based on staff time spent on different activities. EXPENDITURE ON OTHER COSTS 2024 2023 Trustees Emoluments (see note 4) Trustee's expenses Statutory Audit fees 17,117 17.168 123 3,500 20,617 20,791 DEBTORS 2024 2023 Trade debtors other Debtors 259.497 12.664 483,324 6.723 27of29
The Leadership Centre for Local Government Year ended 31st March 2024 Notes to the Financial Statements VAT Accrued Income 150 150,679 640,876 78,550 350,711 10. CREDITORS 2024 2023 Trade creditors Accruals and deferred income Other taxes and PAYE VAT Earned Leave Liability other Creditors 11,619 366,961 15.077 43,847 33,463 606,969 18,705 85,283 13,970 32,432 790,822 215,276 652.780 11. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net expenditure for year (152,123) (293,570) Decreasel{increase) in debtors {Decrease)lincrease in creditors 290,165 (138.042) (379,391) 170,681 Net cash flow from operatlng activities 502 280 12. MEMBERS, LIABILITY The company is a registered charity and is limited by guarantee with no share capital. The liability of each member in the event of winding up is limited to £1. 13. FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS as at 31st March 2024 The balance of Net assets and liabilities fall under unrestricted funds. Current Assets Current Liabilities Funds Total Unrestrlcted funds Restricted funds 360,711 (652,780) (292,069) 360,711 652 780 292,069 As at 1 April 2023 Asat31 March 2024 Income Expenditure 28of29
The Leadership Centre for Local Government Year ended 31st March 2024 Notes to the Financial Statements Unrestricted funds Restricted funds (139,946) 1.737,030 10,000 (1,889,153) {10,000) (292,069) Total 139,946 1,747.030 1,899 153 292,069 14. POST BALANCE SHEET EVENTS The directors are not aware of any post balance sheet events {2023: none). 29of29