REGISTERED COMPANY NUMBER: 02838845 (England and Wales) REGISTERED CHARITY NUMBER.. 1123908 REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 FOR GREATER MANCHESTER IMMIGRATION AID UNIT Greater Manchester IMMIGRATION AID UNIT
GREATER MANCHESTER IMMIGRATION AID UNIT CONTENT5 Page Reference and Administrative Details Report of the Trustees 4 to 11 Independent Auditor's Report 12 to 14 Statement of Financial Activities 15 Balance Sheet 16 Statement of Cashflow 18 Notes to the Statement of Cashflow 19 Notes to the Financial Statements 20 to 35
GREATER MANCHESTER IMMIGRATION AID UNIT REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2024 ReBlstered Company number 02838845 (England and Wales) Registered Charity number 1123908 Registered office l Delaunays Road Crump5311 Green Manchester M8 4QS Auditors Wyatt Morris Golland Ltd Park House 200 Drake Street Rochdale OL16 IPJ Banker5 The Co-operative Bank PLC l Balloon Street Manchester M604EP Charities Aid Foundation 25 Kings Hill Avenue Kent ME19 4TA Trustees Steven Errol Grant Amy Lythgoe Chris Harrop Karl Tonks Lisa Jowrey Mohammed Haimed lan Haworth (resigned 16 January 20241 Bernadette Rudman (resigned 16 January 20241 Monisola Joshua (resigned 12 December 20231 Anum Ahmed (appointed 19 September 20231 Judith Nyanjowa (appointed 19 September 20231 Page | 3
GREATER MANCHESTER IMMIGRATION AID UNIT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2024. The Trustees have adopted the provisions of AccoL]nting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the U K and Republic of Ireland IFRS 1021. AIM, OBJ ECTIVES AND ACTIVITIES Greater Manchester Immigration Aicl Unit IGMIAUI is a voluntary org3ni5ation supporting people subject to immigration control. We offer free legal immigration advice, representation and support services to people seeking asylum, refugees, and children and adults who are at risk. Our team Oi irustees, staff, and volunteers contribute skills, knowledge, and experience which enables us to deliver high quality legal and support services. GMIAU has a three-year strategic business plan, and a written annu31 plan which sets Out specific activities to be undertaken in each year. OurAim Our mission is to provide high-quality legal representation, support and hope to people experiencing immigration injustice. Our vision is for equality, compassion and justice for all people facing the challenges of immigration. Ourvalues We 5peok Up We know what's right and what's fair. We are not silent when we see injustice. We Fight ForJustice We use all the knowledge, expertise and skill we possess in order to succeed. We See The Whole Person We recognise the talent5, humanity and potential of those who turn to us for help. We Act With Empathy We treat people how we'd want to be treated,. with kindness, dignity and respect. We Are Tenacious We take on difficult cases. And we don't give up easily. We Fight For Change We campaign with others for improvements i n immigration law and policy. Our Ob'ectives To deliver immigration legal advice and representation to those most in need. To deliver associated services, if required, to support people we work with. To deliver strategic and operational partnership5 to have greater impact. To be a credible voice influencing local and nation31 strategies and policies to make immigration practice humane and accessible. To be an effective, efficient, resilient, sustainable, well-resourced organi5ation. Pagel 4
GREATER MANCHESTER IMMIGRATION AID UNIT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Our Activities In pursuit of these objectives, GMIAU undertakes the following.. To provide individual advice and representation, at all stages of the legal process, to those most in need who are subject to immiEration control. To provide additional support to particular groups affected by immigration control. Our current focus being on supporting people who are homeless and destitute, women at risk, unaccompanied children and young people and others who are vulnerable. To promote and raise awareness of the issues 3ffecting people subject to immigration control. We provide training, workshops, and events to highlight these issues aT)d promote improved understanding and practice. To work with other5 to secure and develop advice provision in the North West. To develop policy responses and campaign to support people subject to immigration control ènd under threat of deportation. Public Benefit With reference to the duty in section 17151 of the Charities Act 2011 the Trustees of GMIAU have paid due regard to the Charity Commission guidance on public benefit when deciding what activities the charity should undertake. The aims of GMIAU are carried out for public benefit. We provide free legal advice, representation, and support to many people who are subject to immigration control, their friends and family, and those who are in poverty. Our achievement5 listed below show the ways in which we have furthered the aim5 and objects of the charity. Members of the public can contact us five days a week to seek advice and support. This includes individuals as well a5 agencies contacting us on behalf of others. The benefits that arise from the aims of the organisation are as follows.. People get a successful outcome to their legal case. This means that for many they become entitled to work, support themselves independently, and find a way out of poverty. It also means that people can settle into the local community, feel safe and secure, and start to rebuild their lives in the UK. People receive the advice and support that they need which allows them to make decisions that affect their lives and their future. Any campaign or policy activity attempts to improve the situation for the people who benefit from the organisation and its work. Specifically, thi5 means improvements in the asylum or immigration process and the ways in which people are treated by the authorities to ensure fair and equitable treatment and respect for human rights. The achievements and 3Ctivities outlined in this report demonstrate the public benefit arising from the charity's activities. ACHIEVEMENTS AND PERFORMANCE During the year we have.. Provided advice and support to over 5,400 individuals and agencies. Many of the people we see are vulnerable due to their circumstance and include people with health problems, those who are destitute, people who have been suhject to torture, trafficking, forced labour and other forms of ill-treatment, and children and young people who are in the UK on their own. Taken on over 730 new le8al case5 and provided support to over 660 people around homelessness and destitution. Page | 5
GREATER MANCHESTER IMMIGRATION AID UNIT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The eligibility criteria for the Windrush Compensation Scheme was expanded following a successful judicial review challenge we brought on behalf of a client. We are now in the process of challenging the Legal Aid Agency and the Lord Chancellor for their failure to make legal aid available for young people who have turned 18 since claiming asylum as an unaccompanied child. Strategic litigètion of this type ha5 been made possible with funding from the Sam and Bella Sebba Charitable Foundation and the Strategic Legal Fund. Delivered a contract with the Regional Strategic Migration Partnership to provide an immigration advice service to Manchester resiclents who are in need. This includes one-off advice as well as complex casework and is particularly geared towards families with no recourse to puhlic funcls and unaccompanied and trafficked children. Continued to work in partnership with law firm Freshfields, Bruckhaus Deringer to develop volunteering opportunities for their paralegals to asslst with asylum support appeals. Represented a significant and increased number of children who are claiming asylum. With funcsing from Manchester City Council we created a pilot designed to increase capacity for children's cases and train the caseworkers of the future. We continue to run the A1140ne group for children and young people who are in the UK on their own. Further developed our work, funded by the Esmee Fairbairn Foundation, to work with children and young people in care 2nd in leaving care in Manchester. Provided a number of successful soci31 work student placements from Salford University. The student's focu5 15 on people who are in need including families with no recourse to public funcSs, people who are homeless and destitute, young people, and people with mental health needs. Continued our work as part of Kids in Need of Defence IKINDI led by Central England Law Centre to work with private law firms to provide pro bono support to children to make nationality applications. Delivered the Restricted Eligibility Support Service IRESSI to support people who are homeless and destitute to reduce rough sleeping and Support people with 'no recourse to public funds,. Thi5 work has been funded by the Greater Manchester Combined Authority IGMCAI. We worked alongside The Booth Centre and The Bo3z Trust to provide face-to-face outreach support as well as training session5 for organisations and local authorities working within the homelessness sector. Strengthened our poliry team with support from the Paul Hamlyn Founclation and Justice Together. We have participated in local and national campaigns and received wide press coverage. Continued our work with destitute people, in particular those affected by the no recourse to public funds restrictions and those fleeing domestic abuse, with support from The National Lottery. Provicled support to people fleeing domestic abuse with funding from Independent Choices, The Pankhurst Trust, Rochdale Borough Council and GMCA. Collaborated with 11 other not-for~profit organisations as part of the Step Change Consortium. The Con50rtium was formed to create a joined-up and collaborative ec05yStem of support for refugees 2nd people seeking asylum. Worked to increase capacity in the sector by training the next generation of caseworkers and solicitors with help from Justice Together and The Balcombe Trust. Ran a Windrush Legal Initiative project working in partnership with eight leading law firm5 to give people free help to apply to the Windrush Compensation Scheme. Worked with Greater Manchester Law Centre and Greater Manchester Tenants Union to raise awareness of immigration issues around housing. Provided over 1,300 people with immigration advice via our Adviceline with funding from Access to Justice. We also used this funding to pilot grDUP sessions around asylum and other immigration matters to people housed by the Home Office in hote15 who were otherwise unable to access legal advice. Continued our community organisation work with our Action Group in raising issues around the cost of the 10- year route. We have also worked with young people from our A1140ne group on i55yes that are affecting them such as access tts education. Page | 6
GREATER MANCHESTER IMMIGRATION AID UNIT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Partici ation and work with others We continue to work with a wide range of agencies, to provide advice and to develop policy responses to immigration and asylum issues. We have been active members of networks of advice agencies, leg31 aid providers, and others to campaign against the cuts to legal aid and to try to find ways lo <upport people given the lack of legal aid capacity in the North West. FINANCIAL REVIEW Financial 0Sition Income for the year amounted to £1,969,697 12023.. £1,602,720) of which £1,165,821 12023.. £683,7351 was unrestricted and £803,87612023.. £918,985) was restricted. Total expenditure totalled £1,577,87112023.. £1,410,701) of which £815,71012023.. £496,647) was unrestricted and £762,16112023'. £914,054) was restricted. We aim to be effective and efficient with our resources. We are very grateful to the funders and others who recognise the valLJe of the work that we do and have given their support throughout the year. We entered 2023/24 with a number of large grants that were coming to an end and we have worked hard to maintain these existin£ relètionships whilst developing new ancl diverse income streams. Thi5 allowed us to generate a surplus, contributing to our reserves, to ensure we are as financially resilient as possible given the challenges ahead in future years. Funds carried forward at the end of the period totalled £1,779,462 12023.. £1,387,636) of which £1,705,283 12023.. £1,352,297) was unrestricted and £74, 17912023.. £35,339) was restricted. Reserves olic The trustees recogni5e the need of the organisation to have free reserves and set aside an amount of no less than six months running costs. Any money not required for working capit31 is deposited in an interest-bearing account. Free reserves (unrestricted reserves less the value of designated fund51 at 21 March 2024 amounted to £592,211 or 3.4 months of expenditure. Once funds designated towards the operating reserve1£418,8561 are included, reserves amount to 5.9 months. The trustees are therefore satisfied that sufficient reserves are currently held by the charity. Goin concern After making appropriate enquiries, the trustees have a reasonable expectation that the charity ha5 adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. The charity is continuously monitoring its expected income levels and operational targets are set in order to ensure the charity Secures sufficient funding to fulfil its on-going obligation5. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies11. Notes to the Financial Statements, page 191. Fundin sources Our m8in funding sources in 2023-24 were.. AB Ch8ritable Trust Access to Justice Aurum Charitable Trust B21cornbe Trust British Red Cross Central Eng13Hd Law Centre Kids In Need of Defence IKINDI Civic Power Fund Disrupt Foundation Esmée Fairbairn Foundation Page | 7
GREATER MANCHESTER IMMIGRATION AID UNIT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Greater Manchester Combined Authority Greater Manchester Law Centre - Oak Foundation Greater Manchester Youth Network Independent Choices Justice Together Legal Aid Agency contract (Legal Aid) Legal Aid Agency certificated work Leg81 Education Foundation Liverpool University M8nche5ter City Council Paul Hamlyn Foundation Public Law Project Refugee Attion Rochdale Borough Council Sam and Bella Sebba Charitable Foundation Strategic Legal Fund The Henry Smith Charity The National Lottery Community Fund The Oglesby Trust The Pankhurst Trust - Manchester Womell's Aid The Talent Fund student placements Independent fund raising and donations Future Plans Our priorities are.. To work with others to increase capacity to provide free, independent, legal immigration advice and representation to meet the needs of people in the North West. To invest time and effort into training and developing immigration caseworkers for the future. To ensure that the services we provide are relevant and effective. To be a Source of information and support to agencies supporting people subject to immigration control including children, family teams within local authorities, and housing and homelessness service5. To challenge decisions that wrongly deny access to services for people in need on the basis of immigration status. To increase and develop our work in policy and influencing to improve the situation for immigrant5/people seeking asylum, by increasing our networks to strengthen the work and mproving our ability to draw upon our day-to-day casework to inform policy. To increase the involvement people who have been through the immigration and asylum process in our staff and volunteer teams. To contribute towards increasing connections between people, decreasing isolation, and making the North West a region that welcomes and supports refugees and all people whose lives are restricted by immigration control. To make sure that GM5AU is an effective, well managed and sustainable organisation, true to our values, and that we communicate our impact and the difference we make more widely. To maximise our ability to report on the wider outcomes of our work by constantly improving data capture and an21ysis. To secure enough free reserve5 to withstand threats to statutory funding and fluctuating grant income. Page | 8
GREATER MANCHESTER IMMIGRATION AID UNIT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 FINANCIAL AND R15K MANAGEMENT OBJECTIVES AND POLICIE5 Principal risks and uncertaintie5 Th,e trustees have reviewed the major risks to which the charitable company is exposed and have established systems to review and mitigate those risks. The charity maintains a risk register outlining key organisational risk5 and mitigating steps. The most significant risks identified are.. Cash flow risk The charity faces risks relating to the availability of cash for operating expenditure. Decision-making relating to Legal Aid cases has slowed considerably since the pandemic and therefore the timing of payments relating to th 15 work is uncertain. A significant slowdown in the cash receipts would put the charity of risk of being unable to meet its immediate financial commitments including payroll and project costs. To mitigate the risks identified, management prepare cashflow forecasts covering 3 years a5 part of annu81 budget setting and a rolling 12-month cashflow is updated as part of monthly management accounts. We a150 operate with a diverse income base including grant funding, donations, Legal Aid income and other contractual income thereby mitigating the cash flow impact should any one of our individual funding streams be disrupted or discontinued. Work in Progress recovery risk Thi5 relates to monies due from the Legal Aid Agency for work completed on cases for which we are awaiting a Home Office decision. Uncertainties relating to the rate of recovery for this Legal Aid work mean that the charity is at risk of overstating its debtor balance, which in turn would mean that management would be at risk of over-committing the charity financially. Additionally, overestimating the recovery rate of work in progress would mean that the charity 15 at risk of overestimating the profitability of its Leg31 Aid work thereby meaning that management are unable to make informed decisions about the viability of these activities. To mitigate these risks the charity applies recovery rate calculation5 to adjust its work in progress balances and the trustees have also elected to hold the value of these debtor balance5 in designated funds, thereby ensuring reserves calculations take into account any potential debtor risk. Further details of these j udgement5 and estimates are detailed in IA of the Notes to the Financial Statements (pages 23-241. Page | 9
GREATER MANCHESTER IMMIGRATION AID UNIT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT The charity is controlled by its governing document, the Articles of Association (adopted on 28 June 20231, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The charitable company is registered in England and Wales Ino. 028388451 and was incorporated on 23 July 1993 and registered as 3 charity Ino. 11239081 on 29 April 2008. The company's members are its Trustees. The guarantee of each Trustee is limited to £1. Greater Manchester Immigration Aid Unit is registered at l Delaunays Road, Crumpsall Green, Manchester, M8 4QS. Governance As 2 registered charity Greater Manchester Iil)migration Aid Unit IGMIAUI is adfflini5tered by a Board of voluntary trustees. The Board meets every six to eight weeks ayd delegate 3 number of functions to sub-committees including a finance sub-committee. Trustee selection a ointment and com etence Trustees are elected by the membership or co-opted by the Board for terms of up to two years Irenewablel in accordance with the Memorandum and Article5 of Association. All persons wishing to put themselves forward for election/co-option must undergo a preliminary selection process following which the Board decides whether to recommend them to the membership as Sultable candidates. New trustees receive an induction programme which includes introductions to the organisation's policies and practice, its aims and activities, the staff and other members of the Board. The Board maintains the competence of its members through verbal and written briefings, presentations, and opportunitie5 to attend training courses and events. Staff Team The Trustee5 employ a Chief Executive, Denise McDowell, who is responsible for the day-to-day management of 41 staff at GM IAU. We have a team of 23 specialist solicitor5, caseworkers and trainees. In addition, we have a Policy Team consisting of five staff including a Community Organiser. Our Operations Director manage5 a Finance & Admin team of three, 3 Destitution Team consisting of four staff and a Service Team consisting of four staff. Our Destitution Team work on projects and services for children and other vulnerable people including those who are homeless and destitute. We are a Real Living Wage employer accredited with the Living Wage Foundation. Our highest to lowest pay ratio is 2.2..1 demonstrating our commitment to resisting pay inequality. MEMBERSANDSUPPORTERS We would like to thank all our members, volunteers and supporters for their continued support of GMIAU. You keep us going with your encouragement and validation for the work that we do and for your energy and commitment to all that GMIAU stands for. Page | 10
GREATER MANCHESTER IMMIGRATION AID UNIT RECEDVED I I OCT 2024 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STATEMENT OF RESPONSIBILITIES The Trustees (who are also directors of the charity for the purpose.s of c.ompany lawl are responsible for preparing the Trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102.. The Financial Reporting standard applicable in the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accountlng Practice). Company law requires the Trustees to prepare financlal statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing those financial statements the Trustees are required to: Select suitable accounting policies and then apply them consistently; Observe the methods and principles in the applicable Charities SORP 2015 (FRS 1021,. Make judgements and accounting estimates that are reasonable and prudent; State whether applicable UK Accourkting Standards and statements of recommended practice 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 charity wlll continue in operation. The Trustees are responsible for keepin8 adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for 5afeBuarding the assets of the charity and hence for taking reasonable steps for the prevention and detectlon of fraud and other irregularities. Disclosure to audltors In so far as the Trustees are aware, there is no relevant audit informatlon of which the charitable company's auditors are unaware and th¢.. Trustees hae tak'eii ali SIPPE ihai tFiey ouglit to have taken o make themselves aware of (Iny relevant audit information and to establish that the auditors are aware of that information. Appointment of auditor The reappointment of Wyatt Morris Golland Ltd as auditors of the charity is to be proposed at the forthcoming Annual General Meeting. Report of the TrLlStees, approved by order of the Board of Trustees, as the company directors, on and signed on the Board's behalf by.. 14109l14 Lythgoe - Trustee Page | 11
GREATER MANCHESTER IMMIGRATION AID UNIT INDEPENDENT AUDITOR'S REPORT TO THE MEMBER5 OF GREATER MANCHESTER IMMIGRATION AID UNIT FOR THE YEAR ENDED 31 MARCH 2024 Opinion We have audited the financial statements of Greater Manchester Immigration Aid Unit (the 'charitable company'l 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 fin3ncial staterr,ent5, including a summary of significant accounting policies. The f nancial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). In our opinion the financial staternents-. 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 accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, 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 3udit of the financial statements in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical respon51bilities 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 15 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 cloubt on the charitable company's abiltY 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, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent othenvise 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 15 materially inconsistent with the financial statement5 or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material mi5Statement in the financial statements themselve5. 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. Matter5 on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: the information given in the Report of the Trustees is inconsistent in any material respect with the financi21 statements,. or the charitable company has not kept 3dequ8te accounting records,. or the financial statement5 are not in agreement with the accounting records and returns,. or we have not received all the information and explanations we require for our audit. Page | 12
GREATER MANCHESTER IMMIGRATION AID UNIT INDEPENDENT AUDITOR'5 REPORT TO THE MEMBERS OF GREATER MANCHESTER IMMIGRATION AID UNIT FOR THE YEAR ENDED 31 MARCH 2024 Responsibilities of trustees As explained more fully in the Statement of Tru5tees' Responsibilities, the trustees (who are also the directors of the charitable company for the purpose5 of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, ènd 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 statement5, the trustees are responsible for assessing the charitable company'5 ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basi5 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. Our responsibilities for the audit of the financial statements We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objective5 are to obtain reasonable a55urance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance 15 a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a materi31 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 statement5. The extent to which OLJr procedures are capable of detecting irregularities, including fraud is detailed below.. 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 regulation5; we identified the laws and regulations applicable to the company through discussions with directors and other management, and from ou r commercial knowledge and experience of charities,. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act 2011and Companies Act 2006,. we asse55ed the extent of compliance with the law5 and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of m8nagement 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,. Page | 13
GREATER MANCHESTER IMMIGRATIONAID UNIT INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF GREATER MANCHESTER IMMIGRATION AID UNIT FOR THE YEAR ENDED 31 MARCkl 2024 assessed whether judgements and a55umptions made in determining the accounting estimates were indicative of potential bia5', and investigated the r3tionale behind significant or uniisu31 transactions. In response to the risk of irregularities and non-compliance with laws and regulation5, we designed procedures which included, but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation,. enquiring of management as to actual and potential litigation 3nd claims,. and reviewing corresponcience with HMRC. There are inherent limitations in our audit procedure5 described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if anv. 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 coll usion. A further description of our responsibilities for the audit of the financial statements 15 located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report Thi5 report is made solely to the charit3ble company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulation5 2008. Our audit work has been undertaken 50 that we might state to the charitable company's trustees those matters we are required to state to them in an auditors, 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 trustee5 as 3 body, for our audit work, for this report, or for the opinions we have formed. Wyatt Morris Golland Ltd Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Park House 200 Drake Street Rochdale Lanc2shire OL16 IPJ Date.. P8ge | 14
GREATER MANCHESTER IMMIGRATION AID UNIT STATEMENT OF FINANCIAL ACTIVITIE5 (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2024 31.03.24 Total funds 31.03.23 Total fund5 Unrestricted fund5 Restricted funds Notes INCOME AND ENDOWMENTS FROM Donations, grants and legacies 307,432 803,876 1,111,308 1,179,961 Charitable activities 828,592 828,592 421,755 Investment i ncome 29,797 29,797 1,004 Total 1,165,82 1 803,876 1,969,697 1,602,720 EXPENDITURE ON Charitable activities 815,710 762,161 1,577,871 1,410,701 Total 815,710 762,161 1,577,871 1,410,701 NET INCOMEIIEXPENDITUREI 350,111 41,715 391,82G 192,019 Transfers between funds 2,875 12,8751 NET MOVEMENT IN FUNDS 352,986 38,840 391,826 192,019 RECONCILIATION OF FUNDS Total funds brought forward 1,352,297 35,339 1,387,636 1,195,617 TOTAL FUNDS CARRIED FORWARD 1,705,283 74,179 1,779,462 1,387,636 All income and expenditure derive from continuing activities. The statement of financial activities includes all gains and losses recognised in the year. The notes form part of these financial statements Page | 15
GREATER MANCHESTER IMMIGRATION AID UNIT BALANCE SHEET 31 MARCH 2024 31.03.24 Total funds 31.03.23 Total funds Unrestricted funds Restricted funds Notes FIXED ASSETS Tangible as5et5 125,953 125,953 114,681 CURRENT ASSETS Debtors Cash at bank and in hand io 570,183 1,097,640 320,853 217,905 891,036 1,315,545 961,805 902,212 1,667,823 538,758 2,206,581 1,864,017 CREDITORS Amounts falling due within one year li 166,3401 1464,5791 1530,9191 IS68,9091 PROVISION5 FOR LIABILITIES 18 122,1531 122,1531 122,1531 NET CURRENT ASSETS 1,579,330 74,179 1,653,509 1,272,955 TOTAL ASSETS LESS CURRENT LIABILITIES 1,705,283 74,179 1,779,462 1,387,636 NET ASSETS 1,705,283 74,179 1,779,462 1,387,636 FUNDS Unrestricted funds General Fund Designated Fund - Freehold Property Designated Fund - Property Refurbishments Designated Fund - Work in Progress Designated Fund Cost of Living Pay Increase5 Designated Fund - Disbursements Designated Fund - Operating Reserve 13 592,211 103,084 132,000 209,136 550,925 106,644 120,000 259,005 70,000 245,723 249,996 418,856 Restricted funds 74,179 35,339 TOTAL FUNDS 1,779,462 1,387,636 The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024. The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements. The trustees acknowledge their responsibilities for ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companie5 Act 2006 and Ibl preparing financial Statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. Page | 16
GREATER MANCHESTER IMMIGRATION AID UNIT BALANCE SHEET- continued 31 MARCH 2024 These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011. These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial sta ments were approved by the Board of Trustees and authorised for issue on were signed on its behalf by.. y Lythgoe - Trustee Page | 17
GREATER MANCHESTER IMMIGRATIONAID UNIT STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2024 31.03.24 31.03.23 Notes Cash f lows from operating activities Cash generated from operations 432,788 105,309 Net cash provided by operating activities 432,788 105,309 Cash flows from investing activities Purchase of tangible fixed assets 119,4551 16,5511 Net cash used in investing activities 119,4551 16,5511 Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 413,333 98,758 902,212 803,454 Cash and cash equivalents at the end of the reportinE period 1,315,545 902,212 The notes form part of these financial st3tement5 Page | 18
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2024 RECONCILIATION OF NET IEXPENDITUREI/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 31.03.24 31,03.23 Net lexpenditurellincome for the reporting period las per the Statement of Financial Activities) Adjustments Depreciation charges Increase in debtor5 Increase/ldecreasel in creditors 391,826 192,019 8,182 70,770 137,9901 5,074 1403,8391 312,055 Net cash provided by operations 432,788 105,309 ANALYSIS OF CHANGES IN NET FUNDS At 01.04.23 Cash flow At 31.03,24 Net cash Cash at bank and in hand 902,212 413,333 1,315,545 Total 902,212 413,333 1,315,545 The notes form part of these f inancial statements Page | 19
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES Charity statu5 Greater Manchester Immigration Aid Unit is a charitable company limited by guarantee registered in England Bnd Wales Wlth registered company number no. 02838845 and charity number no. 1123908. The company's registered address is l Delaunays Road, Crumpsall Green, Manchester, M8 4QS. Basis of preparing the financial statements The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charitie5 SORP IFRS 1021 'AccountinE and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial Statements have been prepared under the historical cost convention. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financ81 statements are rounded to the nearest £. Going conceTn The trustees have considered charity's current and future financial position. The trustees have reviewed cash flow forecasts covering a period of 3 years from the balance sheet date, ensuring that they have considered cash flows for the 12 months f rom the date of approval of these financi31 Statements I'the going concern period") prepared by the charity's management. These forecasts considered the risks to the charity'5 business model, particularly the reliability of the charity's fundraising forecasts, cost and wage increases due to high inflation and likely freehold property maintenance costs, risks relating to the recoverability of work in progress and analy5ed how those risks might affect the charitable company's financial resources or ability to continue operations over the going concern period. The planning proce55, including financial and cashflow projections, has considered alternate scenarios and the trustees have reviewed mitigating steps that can be taken, including the designation of funds to meet significant upcoming expenditure. The trustees consider that the charity holds sufficient free reserves to provide cover for unexpected changes in income and expenditure to allow it time to adjust its cost base and continue activities. The trustees continually monitor actual and forecasted financial performance and manage the charity's finances accordingly. Consequentlyj the trustees have concluded that there are no material uncert3inties that could cast significant doubt over the ch3rity'5 ability to continue as a going concern for at least 12 months from the date of approval of the financial statements, and therefore, have prepared the financial statements on a goina concern basis. Income All income is recognised in the Statement of Financial Activities once the charity ha5 entitlement to the funds, it 15 piobable that the income will be received, and the amount can be measured reliably. Donations Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. Page | 20 continuecs...
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES - continued Grants Income f..om government and other grants, whether 'c3pital' grants or 'revenue' grants, are recognised when the cnarily h85 entitlement to the funds, any performance conditions attached to the grant5 have been met, li is probable that the income will be received, and the amount can be measured rel iably. Where the charity determines that a grant agreement does not impose Specified future performance- related conditions incorne 15 recognised when the grant proceeds are received or receivable. Where the charity determines that a grant agreement Irnposes Specified future performance-related conditions, funds are initially recognised a5 deferrecl income within creditor5 and released to income as the conditions are met and the charity has entitlement to the funds. Casework Income from legal aicl casework is claimed when a decision has been made on a case by the Home Office. Any time spent on casework before income is claimed is recognised as work in progress and included within debtors. Expenditure Liabilities are recognised 25 expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefit5 will be required in settlement and the amount of the obli83tion can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under head ings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the 255et'S Use. Other support cost5 are allocated based on the spread of staff Costs. Charitable activities Charitable expenditure comprises those costs incurred by the charity in the delivery of its activitie5 and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Disbursements, e.g. interpreter and counsel fees, incurred in relation to legal aid casework are paid as they become due and included in debtors until a decision has been made by the Home Office and they are able to be claimed from the Legal Aid Agency. Support and governance costs Support cost5 are those that aS51St the work of the Charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in Support of expenditure on the objects of the Charity and include project management. Wheie support costs cannot be directly 3ttributed to particular headings, they have been allocated to expenditure on raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Governance cost5 are those incurred in connection with the running of the Charity and compliance with constitutional and statutory requirement5. Taxation The charity is considered to pa5S the tests set out in Paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from t3Xation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Page | 21 continued...
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAI STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES - continued Pension contributions The charity operate5 a defined contribution pension scheme for those staff who have opted into auto- enrolment. The charity also makes payments into a defined benefit scheme as part of a fund administered by Greater Manchester Pension Fund. This scheme ceased to be open to new members in April 2006 and eligible employee5 are now enrolled into the charity's defined contribution scheme. Although the defined benefit scheme is closed to new members, the charity currently makes payments into the scheme for 2 employees who entered prior to closure. The pension cost is charged to the Statement of Financial Activities in the year and represents contributions payable by the charity to the pension funds. Employee benefits The costs of short-term employee benefit5 are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period i n which the employee's services are received. Termination benefits are recognised immediately as an expense when the company 15 demonstrably committed to terminate the employment of an employee or to provide termination benefits. Operating leases Rentals under operating leases are charged to the Statement of Financial Activities on a strai8ht-line basis over the lease term. Tangible fixed assets Tangible fixed assets are initially recorded at cost and subsequently measured 3t cost or valuation, net of depreciation and any impairment losses. Additions of a single item or group of similar asset5 exceeding £1,000 are capitalised at cost. Depreciation is recognised so as to write off the cost or valuation of assets less their residual value over their useful lives on the following basis.. Land and Buildings Building Improvements Fixtures, Fitting5 and Office Equipment Computer Equipment 2°A on cost IO% on c05t 25% on cost 33.33QA on cost The gain or Ioss 2rising on the disposal of an a55et is determined as the difference between the sale proceed5 and the carrying value of the asset and is credited or charged to the income Statement. Impairment of fixed assets At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered 2n impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss lif any). Where t is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflect5 current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. Page | 22 continued...
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 Impairment of fixed assets- continued If the recoverable amount ol an asset lor cash-generating unit) 15 estimated to be less than its carrying amount, the carrying amount of the asset lor cash-generating unit) is reduced to its recoverable amount. An impairment Ios5 is recognised immediately in profit orloss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Recognised impairment losses are reversed if, and only if, the reason5 for the impairment loss have ceased to apply. Where an irnpairment loss subsequently reverses, the carrying amount of the a55et lor cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been deterrnined had no impairment loss been recognised for the asset lor ca5h-generaLing unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset 15 carried at 3 revalued amount, in which case the reversal of the impairment1055 IS treated as a revaluation increase. Financial Instruments Basic f inancial assets Basic financial assets, which includes debtors and cash and b8nk balances, are initially measured at transaction price including transaction cost5 and are subsequently carried at arnortised cost usina the effective interest method unle55 the arrangement constitutes a financing transaction, where the transaction is measured at present value of the future receipts discounted at a market rate of interest. Financial asserts classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, including creditors and bank loans, loans from fellow group cornpanies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitute5 a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at arnortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less, if not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost Using the effective interest rate method. Provislons Provisions are recognised when the charitable company has a present obligation resulting from a past event that will probably result in the transfer in funds to a third party and the amount due to settle thi5 obligation can be measured or estimated reliably. Provision5 are normally recognised at the settlement amount due. Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees. Restricted funds can only be used for restricted purposes within the object5 of the charity. Restrictions arise when specified by the donor or when funds are raised for a particular purpose. IA. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It 31so requires management to exercise judgement in applying the charity's accounting policies. Page | 23 continued...
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 IA. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY - continued The following are the key judgements and source5 of uncertainty in the estimates that have the most significant effect on the amounts recogni5ed in the Financial Statements.. Performance-related grants Judgement is appliecl by the charity when considering how gr3nt income is recognised under Section 5 of the Charities Statement of Recommend Practice IFRS 1021. For each grant the charity considers whether any performance-related conditions exist which impact when and over what period income become5 receivable or can be recogni5ed. Performance-related conditions are Linderstood to be those which specify that goods, services or other outputs that must be delivered by the charity in order for it to have entitlement to the grant funds. Work in progress Estimates are used by the charity when calculating the value of work in progre55 included as a debtor on the charity's balance sheet. The charity's work in progress consists of unbilled immigration law work undertaken in relation to the charity's Legal Aid Agency ILAAI contract. Uncertainty arises due to the fee structure relating to such work Bnd judgements are involved in adjusting the figure for billable time obtained from the charity's Case rnanagement system accordingly. Fixed fee cases Ju(JgementS Fixed fees apply to majority of work undertaken by the charity regardless of time spent or costs incurred. Additional 'Escape Fees, may become billable when costs accrued reach a certain threshold. Uncertainty therefore arises in relation to whether an active case will reach the threshold for EsC8pe Fee billing and, therefore, whether time recorded on the case management system wi51 become billable or not. Additionally, while the charity uses sector standard case management software to mon itor time and cost5 relating to Legal Aid work, all Escape Fee claims are subject to LAA review and there is potential for claims to be disallowed. Estimates The charity currently applies a recoverability percentage to the carrying value of work in progre5S to account for the uncertainty outlined above. For fixed fee cases 76Yo of the time recorded is considered recoverable and is included as work in progress in debtors. This recoverability percentage has been revised upward since the last financial statements, increasing from 65Yo. This change reflects 8 Sustained increase in actual fee recovery observed in the year ended 31 March 2024 and is line with management's expectations of the imp2Ct of changing LAA policy which included a reduction of the threshold for Escape Fee billing that came into effect as of l April 2023. Hourly rate cases Judgements Certain types of work are paid on an hourly basis but are also subject to lirllit5 on billin8. Limits may be raised on a case-by-case basis but this is subject to approval by the LAA. Uncertainty therefore arises in relation to whether all the time recorded in relation to an active case will be considered as allowable by the LAA. E5timate5 The charity currently applies a recoverability percentage to the carrying value of work in progress to account for the uncertainty outlined above. For hourly rate fee cases 90% of the time recorded is considered recoverable and 15 included as work in progre55 in debtors. The figures used are based on historical averages of actual fee recovery and management consider that they still represent an accurate estimate of likely billing. Page | 24 continued...
GREATER MANCHESTER IMMIGRATIONAID UNIT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCkl 2024 IA. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCE5 OF ESTIMATION UNCERTAINTY - continued Management have considered the effect of amending the estimates relating to fixed fee work recoverability. A 5Yo increase in estimated recoverability would increase the charity's debtor balance by £8,935 as at the balance sheet date, while a IOYO increase would increase debtors by £17,870. Conversely, a SY. decrease and IOYO decrease in estimated recoverability would reduce debtors at the balance sheet date by £8,935 and £17,870 respectively. No other significant judgements, further to that surroundinE going concern, have been made by management in preparing these financial statement5. DONATIONS, GRANTS AND LEGACIES Unrestricted Funds Restricted Funds Total 2024 Tot31 2023 Donations from individuals and institutions Grants 66,755 240,677 66,755 1,044,553 43,325 1,136,636 803,876 307,432 803,876 1,111,308 1,179,961 INCOME FROM CHARITABLE ACTIVITIE5 Unrestricted Funds Restricted Funds Total 2024 Total 2023 Legal services and casework 828,592 828,592 421,755 CHARITABLE ACTIVITIES COSTS Support Costs (see note S below) staff Costs Isee note 8 below) Direct Costs Total 2024 Legal services and casework 1,286,281 147,208 144,382 1,577,871 Support Costs 15ee note 5 below) Staff Costs 15ee note 8 below) Direct Costs Total 2023 Legal services and casework 1,138,478 140,035 132, 188 1,410,701 Page | 25 continued...
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIALSTATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 SUPPORT COSTS Support costs 31.03.24 31.03.23 Audit fees Bank charges Depreciation Development Governance and board costs Insurance Irrecoverable VAT 7,500 1,665 8,182 6,018 1,284 8,546 13,375 18,130 21,843 33,913 17,234 6,692 6,500 430 5,073 3,719 5,451 22,152 20,322 17,430 30,656 15,415 5,040 Legal and professional Premises costs Telephone Sundry 144,382 132,188 NET INCOME/IEXPENDITUREI Net income/lexpenditurel is stated after ch2rging/lcreditingl'. 31.03.24 31.03.23 Depreciation owned a55et5 Auditor's remuneration Accountancy fees Operating leases 8,182 7,500 16,791 1,819 5,074 6,500 17,430 2,43 1 TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023. Trustees, expenses Expenses tot211ing £439 were paid to 4 trustee5 in relation to travel and subsistence costs for the year ended 31 March 202412023: £143 paid to 2 trustees in relation to travell. Page | 26 continued...
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 STAFF COSTS 31.03.24 31.03.23 Wages 3nd salaries Social security costs Pensions costs 1,117,791 103,847 64,643 1,286,281 984,772 96,324 57,382 1,138,478 The average monthly number of employees during the year was as follows.. 31.03.24 31.02.23 Legal Advice Non-Legal Support Management and Administration 21 18 io 37 34 Highest Paid Employees No employees received emoluments of more than £60,000 for the year ended 31 March 202412023.. Nill. Key Management Personnel The Key Man3gement Personnel in the year ended 31 March 2024 were the Chief Executive Officer, Operations Director and Senior Solicitor. The total amount of employee benefits (including employer's national insurance and pensions contributions) received by Key Management Personnel was £164,297 12023.. £159,065). Page | 27 continued...
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 TANGIBLE FIXED ASSETS Freehold Improvements to Fixtures ènd Computer equipment Total property property fittings COST At l April 2023 178,000 22,104 2,875 22,699 I,soo 16,9121 25,347 15,079 117,8461 248,150 19,454 124,7581 Additions Di5P05als At 31 March 2024 178,000 24,979 17,287 22,580 242,846 DEPRECIATION At l April 2023 Charge for year Eliminated on dispos815 71,356 3,560 19,604 500 22,699 loo 16,9121 19,810 4,022 117,8461 133,469 8,182 124,7581 At 31 March 2024 74,916 20,104 15,887 5,986 116,893 NET BOOKVALUE At l April 2023 106,644 2,500 5,537 114,681 At 31 March 2024 103,084 4,875 1,400 16,594 125,953 io. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.24 31.3.23 Trade debtors Prepayments and accrued income Other debtors 93,546 586,838 210,652 141,357 561,345 259,103 891,036 961,805 ii. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.24 31.3.23 Trade creditors VAT Other creditors Accruals and deferred income 10,991 10,700 19,156 490,072 3,323 6,853 16,588 542,145 530,919 568,909 Page | 28
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 ii. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR- continued Analysi5 of movement in deferred income 31.03.24 31.03.23 Brought forward Released in the year Deferred in the year 517,769 1312,3401 259,150 464,579 182,795 1182,7951 517,769 517,769 12. LEASING ARRANGEMENTS Minimum lease payments under non-cancellable operating leases f811 due as follows.. 31.03.24 31.03.23 Within one year Between one and five years After more than 5 years 1,568 3,223 386 5,177 1,651 3,233 4,884 13. COMPARATIVES FOR THE STATEMENT OF FINANCIALACTIVSTIES 31.03.23 Tot31 funds Unrestricted furid Restricted funds INCOME AND ENDOWMENTS FROM Donations and legacies 266,976 912,985 1,179,961 Charitable activities Investment income 415,755 1,004 6,000 421,755 1,004 Total 683,735 918,985 1,602,720 EXPENDITURE ON Charitable activities 496,647 914,054 1,410,701 Total 496,647 914,054 1,410,701 NET INCOME/IEXPENDITURE) 187,088 4,931 192,019 RECONCILIATION OF FUNDS Total funds brought forward 1,165,209 30,408 1,195,617 TOTAL FUNDS CARRIED FORWARD 1,352,297 35,339 1,387,636 Page | 29
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2024 14. MOVEMENT IN FUNDS Net movement in funds At 31.03.24 At 1.4.23 Unrestricted fund5 General Fund Designated - Freehold Property Designatecl- Property Refurbishments Designated - Work in Progress Designated - Cost of Living Pay Increases Designated - Disbursements Designated - Operating Reserve 550,925 106,644 120,000 259,005 70,000 245,723 41,286 13,5601 12,000 149,8691 170,0001 4,273 418,856 592,211 103,084 132,000 209,136 249,996 418,856 1,352,297 352,986 1,705,283 Restricted funds Greater Manchester Combined Authority IVAWGI 2023-25 Justice Together - Policy - 2021-24 Justice Together - Service Delivery - 2021-24 KIND Legal Education Foundation 2021-24 National Lottery Community Fund - 2023-26 Oglesby Green Grant - 2024 Strategic Legal Fund 2023-24 11,595 820 11731 12661 131 119 11,986 14,628 11,595 13,641 12,821 173 7,762 14,583 7,496 14,714 119 11,986 14,628 35,339 38,840 74,179 TOTAL FUNDS 1,387,636 391,826 1,779,462 Page | 30
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 14. MOVEMENT IN FUNDS-continued Net movement in funds, included in the above are as follows.. Transfers Incoming resources Resource5 expended Movement in funds Unrestricted funds General Fund Designated - Freehold Property Designated - Property Refurbishments Designated - Work in Progress Designated Cost of Living Pay Increases Designated - DisbursemÈnt5 Designated - Operating Reserve 1312,3851 1,165,821 18121501 13,5601 41,286 13,5601 12,000 149,8691 170,0001 4,273 418,856 352,986 12,000 149,8691 170,0001 4,273 418,856 2,875 1,165,821 1815,7101 Restricted funds Access to Justice - 2022-23 Access to Justice - 2023-25 Acces5 to Justice (Community Fund) - 2024- 29 Balcombe Charitable Trust - 2022-25 British Red Cross - 2023 Civic Power Fund 2023 Esmee Fairbairn Foundation 2023-26 Greater Manchester Combined Authority IVAWGI_ 2023-25 Greater Manchester Youth Network 2023- 26 Independent Choices - 2023-24 Justice First Fellowship 2023-26 Justice Together- Policy - 2021-24 Justice Together- Service Delivery - 2021-24 KIND Legal Education Foundation 2021-24 Manchester Women's Aid National Lottery Community Fund 2023-26 Greater Manchester Law Centre / Oak Foundation 2022-25 Oglesby Green Grant - 2024 Paul Hamlyn Foundation 2Q21-24 Paul Hamlyn Foundation 2024-26 Sam and Bella Sebba Charitable Foundation 2022-24 Refugee Action I Step Change Consortium - 2023-24 Strategic Legal Fund 2023-24 Strategic Legal Fund 2023 The Talent Fund 2022-23 913 81,248 19131 181,2481 8,333 25,000 4,602 10,000 42,000 18,3331 125,0001 14,6021 iio,0001 142,0001 23,333 111,7381 11,595 12,696 6,000 5,000 48,042 184,486 31,865 60,417 4,000 94,078 112,6961 16,0001 15,0001 147,2221 1184,6591 132,1311 160,2861 14,0001 193,9591 820 11731 12661 131 119 19,320 14,861 31,000 17,500 119,3201 12,8751 11,986 131,0001 117,5001 42,000 142,0001 18,291 14,628 3,013 1,250 118,2911 14,628 13,0131 11,2501 12,8751 803,876 1762,1611 11,S77,8711 38,840 TOTAL FUNDS 1,969,697 391,826 Page | 31
GREATER MANCHESTER IMMIGRATIONAID UNIT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED31 MARCH 2024 14. MOVEMENT IN FUNDS- continued The transfer between the Oglesby Green Grant - 2024 fund and the General Fund represents the value of tangible fixed assets purchased using the restricted fund but intended to be used for general and not restricted purposes. Comparatives for movement in fund5 Net movement in funds At 31.03.23 At 1.4.22 Unrestricted funds General Fund Designated - Freehold Property Designated - Property Refurbishment5 Designated - Work in Progress Designated - Cost of Living Pay Increases Designated - Disbursements 432,565 110,204 120,000 250,797 70,000 181,643 118,360 13,5601 550,925 106,644 120,000 259,005 70,000 245,723 8,208 64,080 1,165,209 187,088 1,352,297 Restricted f unds Henry Smith - 2020-23 Justice Together- Policy 2021-24 J ustice Together- Service Delivery- 2021-24 KIND Legal Education Foundation 2021-24 National Lottery Community Fund 2020-2022 939 9,985 2,066 19391 2,836 11,8931 7,762 8,333 111,1681 12,821 173 7,762 14,583 6,250 11,168 30,408 4,931 35,339 TOTAL FUNDS 1,195,617 192,019 1,387,636 Net movement in funds, included in the above are as follow5: Transfers Incoming resources Resources expended Movement in funds Unrestritted funds General Fund Designated - Freehold Property Designated - Property Refurbishments Designated - Work in Progress Designated Cost of Living Pay Increases Designated- Disbursements 1142,2881 683,735 1423,0871 13,5601 118,360 13,5601 8,208 70,000 64,080 8,208 170,0001 64,080 683,735 1496,6471 187,088 Page | 32
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED31 MARCH 2024 14. MOVEMENT IN FUNDS- continued Transfers Incomirig resources Resources expended Movement in funds Restricted funds Access to Justice Foundation 2022-23 Balcombe Charitable Trust - 2022-25 Community Justice Fund - 2023 Disrupt Foundation 2022 Esmee Fairbairn Foundation 2020-23 Greater Manchester Combinecl Authority IABENI- 2022-23 Henry Smith 2020-23 Independent Choices- 2021-22 Justice Together- Policy - 2021-24 Justice Together - Service Delivery - 2021-24 KIND Legal Education Foundation IJFFI - 2022-23 Legal Education Foundation 2021-24 Manchester Women's Aid National Lottery Community Fund 2020- 2022 Greater Manchester Law Centre l Oak Foundation 2022-25 Paul Hamlyn Foundation 2020-23 Rochdale Borough Council 2022-23 Independent Choices - 2022-23 Sam and Bella Sebba Charitable Foundation 2022-24 Refugee Action / Step Change Consortium - 2023-24 Strategic Legal Fund 2023 The Talent Fund 2022-23 10,038 22,917 24,000 11,525 74,550 110,0381 122,9171 124,0001 111,5251 174,5501 50,000 60,000 7,000 43,518 196,527 32,731 32,849 62,500 2,000 150,0001 160,9391 17,0001 140,6821 1198,4201 124,9691 132,8491 154, 1671 12,0001 19391 2,836 11,8931 7,762 8,333 106,362 1117,5301 111,1681 6,773 77,300 6,000 3,000 16,7731 177,3001 16,0001 13,0001 52,800 152,8001 13,464 16,881 6,250 113,4641 116,8811 16,2501 918,985 1914,0541 4,931 TOTAL FUNDS 1,647,578 11,410,7011 236,877 15. DESIGNATED FUNDS As at 31 March 2024 the trustees have elected to designate the following fund5'. Freehold Property Fund.. £103, 084 The charity owns the freehold for the premises from which it operates in Crumpsall, Greater Manchester. This property is integral to the operations of the charity, and it would be required to find alternative premises should the freehold be sold and the value of the asset be converted into cash. The trustees have therefore elected to designate a fund representing the current net book value of the freehold, given that these funds cannot easily be converted into cash. Page | 33
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 15. DESIGNATED FUNDS- continued Anticipated c05t5 relating to 8uilding Refurbi5hments.' £132,000 The freehold property owned 15 in need of significant maintenance and refurbishment to bring it into line with current client and staff needs. While the charity does not currently have active plans to improve the building, it is considered necessary in the medium term and so the trustees have therefore designated £132,000 in recognition of anticipated costs which are likely to be realised within 5 years of the balance sheet date. Work In Progress Fund.. £209, 136 The charity holds immigration and public law Legal Aid contracts. Work under these contracts cannot normally be billed until 3 decision has been made by the Home Office or the relevant court on each legal case. As the date that these funds will be become billable is uncertain, the trustees have elected to hold funds equating to the carrying value of work in progress at the balance sheet date in a designated reserve until these balances can be realised. Disbursement5 Fund.. £249,996 Disbursements, e.g. interpreter and counsel fees, expended relating to the Legal Aid immigraiion and public law cases referenced above are also not normally billed until a case is concluded. As the date that these funds will be become billable is uncertain, the trustees have elected to hold funds equating to the carrying value of disbursement5 at the balance sheet date in a designated reserve until these balances can be realised. Operoting Reserve Fund.. £418,856 The charity is currently subject to a tumultuous political and legislative environment which is having a significant impact on the organisation and which is leading to increased demand. Legal Aid funding is subject to 3n ongoing consultation and the charity also has 3 number of large grants and contracts that are due to end in the next 24 months. In addition to this, the charity is experiencing upwarcl pressure on costs and, in particular, on Salaries which it aims to match to NJC pay increases. Given these circumstances and to ensure that GMIAU remains a stable and resilient organisation the trustees have considered it prudent to designate an operating reserve to cover any impact on its services as a result in changes to its income or increased costs. The funds designated at the balance sheet date represent the expected c05t of salary increases combined with the value of grant funding and contracts that are due to end within the subsequent 24 months. 16, PENSION CONTRIBUTIONS Defined contrlbution pension scheme The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £42,84412023.. £57,382). The amount Payable to the pension provider at the year-end was £8,78612023.' £6,293). Defined benefit pension scheme The charity makes payments to a defined benefit scheme as part of a fund administered by Greater Manchester Pension Fund for 2 staff who entered the scheme before its closure to new members in April 2006. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £21,79912023.' £20,821). The 3mount payable to the pension provider at the year-end was £nil 12023.. £nill. 17. RELATED PARTY DISCLOSURES There were no related party transactions for year ended 31 March 2024 nor the year ended 31 March 2023. Page | 34
GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 18. PROV1510NS At the bèlance sheet date, the charity recognised a provision for underpaid irrecoverable VAT relating to the period l January 2020 through 31 March 2023, during which partial exemption wa5 not correctly applied to the charity's VAT returns. The charity expects that this obligation will be settled within one year of the b31ance sheet date. Unrestricted funds Restricted funds Total 2024 Irrecoverable VAT 22,153 22, 153 19, LIMITED BY GUARANTEE The company is a private company limited by guarantee and consequently does not have share capital. Each of the members 15 liable to contribute an amount not exceeding £1 towards the assets of the company in the evenis of liquidation. At the balance sheet date there were 812023.. 111 guaranteeing members. Page | 35