REGISTERED COMPANY NUMBER: 02838845 (England and Wales) REGISTERED CHARITY NUMBER: 1123908 REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 FOR GREATER MANCHESTER IMMIGRATION AID UNIT Greater Manchester IMMIGRATION AID UNIT GREATER MANCHESTER IMMIGRATION AID UNIT CONTENTS Page Reference and Admlnlstratlve Detsljs Report of the Trustees 4 to 11 Independ•)t Audltorfs Report 12 to 14 ststement of Flnanclal Actlvltles Balance Sheet 16 to 17 ststement of Cash flows Notes to the Statement of Cash flows Notes to the Flnanclal 5tstements 20 to 33 GREATER MANCHESTER IMMIGRATION AID UNIT REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2025 Registered Company number 02838845 (England and Wales) Reglstered Charfty number 1123908 Reglstered office l Delaunays Road Crumpsall Green Manchester M8 4QS Audltors TC Wyatt Morris Golland Ltd Park House 200 Drake Street Rochdale OL16 IPJ Accountants Sedulo London Llmlted 605 Albert House 256-260 Old Street London ECIV 9DD Bankers The Co-operative Bank PLC l Balloon Street Manchester M60 4EP Charltles Ald Foundation 25 Kin8s Hill Avenue Kent ME19 4TA Trustees Steven Errol Grant (resigned 17 September 2024) Amy Lyth8oe Chrls Harrop Karl Tonks Usa Jowrey Mohammed Haimed Judith Nyènjowa Anum Ahmed Naveeda Ikram (appointed 12 January 20251 Maryanne Kikelomo Oduntan (appointed 11 March 20251 Page13 GREATER MANCHESTER IMMIGRATION AID UNIT REPORT OFTHE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 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 2025. The Trustees have adopted the provisions of Accounting and Reportlng by Charities.. Statement of Recommended Practice applicable to charltles preparing their accounts in accordance with the Financial Reportln8 Standard applicable In the UK and Republic of Ireland (FRS 102). AIM, OBJEcfivES AND ACTIVITIES Greater Manchester Immigratlon Aid Unlt IGMIAUI is a voluntary organlsatlon supporting people subject to immigration control. We offer free legal Immigration advlce, representatlon and support senjlces to people seekln8 asylum, refugees, and children and adults who are at risk. Our team of trustees, stsff, and volunteers contrlbute skills, knowledge, and experlence which enables us to dellver hl8h quality le8al and support seNlces. GMIAU has a three-year strate8lc buslness plan, and a written annual plan which sets out speclflc activltles to be undertaken In each year. rAlm Our mission is to provlde high-quallty legal representatlon, support and hope to people experiencing Immlgratlon Inlustlce. Our vlslon Is for equality, compasslon and lustlce for all people facln8 the challen8es of Immi8ratlon. We Speok Up We know what's rlght and what's falr. We are not sllent when we see Inlustlce. We Flght Forjustke We use all the knowled8e, expertlse and sklll we possess In order to succeed. We See The Whole Person We reco8nlse the talents, humanlty and potential of those who turn to us for help. We Art Wfth Empathy We treat people how we'd want to be treated; wlth klndness, dl8nlty and respect. We Are Tenaclous We take on difficult cases. And we don't give up easily. We Flght For Chonge We campal8n with others for Improvements In Immlgration law and policy. To dellver Immlgratlon legal advlce and representatlon to those most In need. To deliver associated servlces, If requlred, to support people we work with. To deliver strategic and operatlonal partnershlps to have greater impact. Ta be a credible voice influencin8 local and natlonal strategies and policies to make immigration practice humane and accessible. To be an effective, efficient, resilient, sustainable, well-resourted or8anisation. Page 14 GREATER MANCHESTER IMMIGRATION AID UNIT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Our Activlties In pursult of these obJectlves, GMIAU undertakes the followin8: To provide individual advice and representation, at all stages of the legal process, to those most In need who are subject to Immlgration control. To provide additional support to particular groups affected by immigration control. Our current focus belng on supporting people who are homeless and destitute, women at rlsk, unaccompanied chlldren and youn8 people and others who are vulnerable. To promote and ralse awareness of the issues affectlng people sublect to Immlgratlon Control. We provide trèinln8. workshops, and events to hlghlight these issues and promote improved understandln8 and practice. To work with others to secure and develop advice provision In the North West. To develop pollcy responses and campalgn to support people subject to immi8ration control and under threat of deportation. With reference to the duty in section 17{51 of the Charitles Act 2011 the Trustees of GMIAU have paid due regard to the Charity Commission guidance on public benefit when decidln8 what actlvities the charity should undertake, The alms of GMIAU are carried out for public benefit. We provide free le8al advice, representatlon, and support to many people who are sublect to Imml8ratlon control, thelr friends and family, and those who are in poverty. Our achlevements Ilsted below show the way5 In whlch we have furthered the alms and objects ofthe charity. Members of the publlc can contact us flve days a week to seek advlce and support. Thls includes Individuals as well as a8encies contactln8 us on behalf of others. The beneflts that arlse from the alms of the or8anisation are as follows., People get a successful outcome to thelr legal case. Thls means that for many they become entitled to work, support themselves Independently. and flnd a way out of poverty. It also means that people can settle Into the local communlty, feel safe and secure, and start to rebulld thelr lives In the UK. People receive the advice and support that they need whlch allows them to make declslons that affect thelr Ilves and thelr future. Any campaign or policy activity attempts to Improve the sltuatSon for the people who beneflt from the or8anlsatlon and its work. Specifically, this means Improvements In the asylum or Immi8ratlon process and the ways In which people are treated by the authoritles to ensure fair and equitable treatment and respect for human rights. The achievements and activities outllned In th15 report demonstrate the publlc beneflt arlsln8 from the charlty's actlvltles. ACHIEVEMENTS AND PERFORMANCE Durin8 the year we have.. Provlded advice and 5UPPOrt to 5,685 people. Many of the people we see are vulnerable due to thelr circumstance and include people with health problems, those who are destitute, people who have been subject to torture, trafficking, forced labour and other forms of111-treatment, and chlldren and young people who are in the UK on their own. Taken on 949 legal cases and provided support to 612 people around homelessness and destltution. Provided trainlng to 727 people and agencies to Increase knowledge and understandin8 of the UK Immlgratlon system and how to support those affected, Contlnued to advocate for those affected by the Windrush scandal which emerged In 2017 and to work in partnership pro bono with 8 leading law firms to make applicatlons to the Wlndrush Compensatlon Scheme on behalf of applicants across the UK. Pa8e15 GREATER MANCHESTER IMMIGRATION AID UNIT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Continued to work in partnership with law fim Freshfields. Bnjckhaus Deringer to develop volunteering opportunities for their paralegals to asstst with asylum 5UPPOrt appeals. Represented a significant and increased number of children who are daiming asylum. A contract with the Regional Str3te8ic Migration Partnership has helped us to advise and represent over ISO unaccompanied children, and train three new 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 Esmée Fairbairn Foundation, to work with chlldren and young people in care and in leaving care in Manchester. Provided a number of successful social work student placements from Salford University. The student's focus is on people who are in need including families with no recourse to public funds, people who are homeless and destitute* young people, and people wlth mental health need5. Continued our work as part of Kids in Need of Defence (KIND) to work with private law firms to provide pro bono support to children to make nationality applications. Delivered the Restricted Eligibility Support Service (RESSI to support people who are homeless and destitute, to reduce rough sleeping. and support people with 'no recourse to public funds.. This work has been funded by the Greater Manchester Combined Authority IGMC41. We work alongside The Booth Centre and The Boaz Trust to provide face-ttrface holistic support as well as training sessions for organisations and local authorities workin8 Wlthin the homelessne55 sertor. Strengthened our policy team with support from the Paul Hamlyn F￿Jndati0n and Justice Together. We have participated in local and national campaigns and re￿Ived wide press coverage. Continued our work with people who are destitute, in particular those affected by 'no recourse to public funds, restrictions and those fleeing domestic abuse. with support from The National Lottery. Prowded support to people fleeing domestic abuse wth fundin8 from Independent Choices. Set up a new service for people fleeing domestic abuse, in partnership with Rlghts of Women, funded by GMCA. Collaborated with 11 other not-for-profit or8anisations as part of the Step Change Consortium. The Consortium was formed to create a joined-up and collaborative ecosystem of support for refugees and people seeking asylum. Worked to increase capacity in the sector by training the next generation of caseworkers and solicitors with help from Justice To8ether and The Balcombe Trust Worked with Greater Manchester Law Centre and Greater Manchester Tenants Union to create the Housing Justice Network. Provided over 1000 people with immigration ad￿￿ via our Adviceline with funding from AC￿$S to Justice and the Ministry of Justice through the IOTLS. We also used this funding to run group sessions around asylum and other immigration matters to people housed by the Hcyne Office in hotets who were otherwise unable to access legal advice. Continued our ctynmunity 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 8roup on issues that are affecting them such as access to education. Recruited to a Communications Officer post to increase our reath and influence. Page16 GREATER MANCHESTER IMMIGRATION AIO UNIT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 Partlcl atlon and work wlth others We continue to work with a wide range of 38encies, to provide advice and to develop policy responses to immigration nd asylum issues. We have been active members of networks of advice agencles, legal aid provlders, and others to campaign agalnst the cuts to le8al aid and to try to find ways tosupport people 8lven the lack of legal aid capacity in the North West. FINANCIAL REVIEW Income for the year amounted to £2,078,282 12024: £1,969,697) of whlch £1,162,022 {2024.' £1,165,821} was unrestricted and £916,260 (2024: £803,876) was restricted. Total expenditure totalled £1,881,02912024: £1,577,871) of which £971,27812024: £815,710) was unrestricted and £909,751 {2024'. £762,161) was restricted. We alm to be effective and efficient with our resources. We are very 8rateful to the funders and others who recogn15e the value of the work that we do and have 8iven thelr support throughout the year, Followlng the end of a number of lar8e 8rants In 2023124, we have worked hard acr055 the last two periods to maintaln exlsting relationships whllst developin8 new and dlverse Income streams. Thls allowed us to 8enerate a surplus in both the years ended 31 March 2024 and 2025. These have contributed to our reserves, ensurlng we are as flnanclally reslllent as posslble 8lven the challenges ahead In future years. Funds carried fonvard at the end of the perlod totalled £1,976,71512024: £1,779,462) of whlch £1,908,01312024: £1,705,283) was unrestricted and £68,70212024.' £74,179) was restrlcted. ResenRs pollcy The trustees recognlse the need of the organlsation to have free reserves and set aslde an amount of no less than slx months runnlng costs. Any money not requlred for workln8 capltal is deposlted In an Interest-bearln8 account. Free reserves lunrestrlcted reserves less the value of desl8nated funds and tan8lble fixed assets) at 31 March 2025 amounted to £610,293 or 3.5 months of expenditure. Once funds designated towards the operatln8 reserve of £527,880 are Included, reserves amount to 6.5 months. The trustees are therefore satlsfled that sufflclent reserves are currently held by the charity. Going concern After maklng appropriate enqulrles, the trustees have a reasonable expectatlon that the charlty has adequate resources to continue In operatlonal exlstence for the foreseeable future. For thls reason, they contlnue to adopt the golng concern basls In preparlng the financlal statements. The charlty Is contlnuously monltorin8 Its expected income levels and operatlonal targets are set in order to ensure the charity secures sufficlent funding to fulfll Its on*oln8 obli8ations. Further details regarding the adoptlon of the golng concern basls can be found In the AccountSn8 Pollcles11. Notes to the Financlal Statements, page 201. Funding sources Our main funding sources in 2024-25 were: The Trusts and Foundatlons as detailed In note 14 Legal Aid Agency contract (Legal Aid) Legal Ald Agency certificated work Legal Education Foundation Liverpool Unlverslty Manchester City Council Publlc Law Project Rochdale Borough Councll Student placements Independent fund ralsing and donations Page17 GREATER MANCHESTER IMMIGRATION AID UNIT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 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 trainin8 and developing new immigration Caseworkers for the future. To ensure that the services we provide are relevant and effective. To be a source of informatlon and support to agencles supporting people subject to immigration control including children, families, and housing and homelessness services. To challenge decisions that wrongly deny a¢￿$$ 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 sltuatlon for Immigr3nts/people seeklng asylum, by Increaslng our networks to strengthen the work and improving our ability to draw upon our day-to-day casework to inform policy. To increase the involvement of people who have been throu8h 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 restrlrted by immigration control. To maximise our ability to report on the wider outcomes of our work by constantly improving data capture and analysis. To secure enough free reserve5 to withstand threats to statutory fundin8 and fluctuating grant income. Page18 GREATER MANCHESTER IMMIGRATION AID UNft REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 RISK MANAGEMENT Prlncl al rlsks and uncertalntles The trustees have reviewed the major risks to which the charitable company is exposed and have established systems to review and mitigate those risks. The diarity maintains a risk register outlinin8 key or8ani5ational risks and mitigatin8 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 Considerab￿ since the pandemic and therefore the timing of payments relating to this work is uncertain. A significant slowdown in the cash receipts would put the charity of rlsk of being unable to meet its immediate financial commitments includin8 payroll and projert costs. To mitigate the risks identified. management prepare cash flow forecasts covering 3 years a5 part of annual budget setting and a rollin8 12-month cash flow is updated as part of monthly management accounts. We also operate with a diverse income base including grant fundin& 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 This relates to monies due from the Legal Aid Agency for work completed on Cases for vthich we are awaitin8 Home Office decision. Uncertainties relating to the rate of recovery for this Legal Aid worl¢ mean that the tharity is at risk of overstating its debtor balance, which in turn would mean that management would be at risk of over-committin8 the charity financially. Additionally. overestimating the recovery rate of work in progress would mean that the tharity is at risk of overestimating the profitsbility of its Legal Aid work thereby meanin8 that management are unable to make informed decisions about the viability of these activities. To miti8ate these risks the tharity applies recovery rate calculations to adjust its work in progress balances and the trustees have also elerted to hold the value of these debtor balances in designated funds. thereby ensuring reserves calculations take into account any potential debtor risk. Further details of these judgements and estimates are detailed in IA of the Notes to the Financial Staternents (page 241. Pa8e19 GREATER MANCHESTER IMMIGRATION AID UNIT REPORTOF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STRucfuRE, GOVERNANCE AND MANAGEMEf+lT The charity Is controlled by its governing document, the Articles of Association ladopted 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 reglstered as a charlty Ino. 11239081 on 29 April 2008. The company's members are its Trustees. The guarantee of each Trustee is limited to £1. Greater Manchester Immigratlon Aid Unit is registered at l Delaunays Road, Crumpsall Green, Manchester, M8 4QS. Govemance As a registered charity Greater Manchester Immi8ratlon Ald Unit IGMIAU) is administered by a Board of voluntary trustees. The Board meets every Six to eight weeks and dele8ate a number of functions to sub-committees includin8 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 (renewable) in accordance with the Memofandum and Articles of Association. All persons wishin8 to put themselves forward for election/co-option must undergo a preliminary selection process following which the Board decide5 whether to recommend them to the membership as suitable candidates. New trustees receive an induction programme which includes introductions to the ooanisation's policies and practice, its aims and activities, the staff and other members of the Board. The Board maintains the competence of its members throu8h verbal and written briefin85, presentations, and opportunltles to attend tralnln8 courses and events. Staff Team The Trustees employ a Chief Executive who is responsible for the day-to-day management of 37 staff at GMIAU. We have a Finance Manager and 2 assistants who also help administer our legal aid contracts. We have a team of 21 specialist solicitors, immigration caseworkers and legal trainees. Our Policy Team consists of 6 staff including a Community Organlser. Our Operations Manager manages a team of 3. The Destitutlon Team consists of 4 staff who provide support to people who are homeless and destltute. We are a Real Living Wa8e employer accredited with the Living Wage Foundation. Our highest to lowest pay ratio IS 2.2:1 demonstratlng our commitment to resisting pay inequality. Members and Su orters We would Ilke to thank all our members, volunteers and supporters for their continued support of GMIAU. You keep us Boin8 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 IMMIGRATSON AID UNIT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2025 STATEMENT OF RESPONSIBILITIES The Trustees (who are also directors of the charity for the purposes of company law) are responslble for preparing the Trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, induding Financial Reporting Stsndard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expendlture of the charity for that period. In preparing those financial statements the Trustees are required to: Selert suitable accounting policies and then apply them consistently", Observe the methods and principles in the applicable Charities SORP 2015 IFRS 1021; Make Judgements and accounting estimates that are reasonable and prudenL' State whether applicable UK Accounting Standards and statements of recommended practice have been followed. subject to any material departures disclosed and explalned in the financial statements; and Prepare the financial statements on the 8oin8 concern basis unless it is inappropriate to presume that the charity wlll contlnue in operatlon. The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at anv 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 safe8uardin8 the a55ets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. DISCLOSURE TO AUDITORS In so far as the Trustees are aware, there is no relevant audit information of which the charitable company's auditor5 are unaware and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AppoINfMENT OF AUDITOR The reappointment of TC Wyatt Morris Golland Ltd as auditors of the charity is to be proposed at the forthcoming Annual General Meetlng. Report of the Trustees, approved by arder of the Board of Trustees, as the company directors. on ... and slgned on the Board's behalf by: Judlth Nyan owa- Cha Page | 11 GREATER MANCHESTER IMMIGRATION AID UNIT INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF GREATER MANCHESTER IMMIGRATION AID UNIT FOR THE YEAR ENDED 31 MARCH 2025 Oplnlon We have audited the financial statements of Greater Manchester Immigration Aid Unit {the 'charitable company'l for the year ended 31 March 2025 which comprise the Ststement of Financial Activities. the Balance Sheet, the Cash Flow ststement and notes to the financial ststements, includin8 3 summary of significant accountin8 policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Stsndards, including Financial Reporting Stsndard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland {United Kingdom GeneraSly Accepted Accounting Practice). In our opinion the finanoal statements: give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incomin8 resources and application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordan￿ viith Unlted Kin8dom Generally Accepted Accounting Prartice; and have been prepared in accordance with the requirements of the Companies Art 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing (UKI (ISAS {UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements sertion of our report. We are independent of the tharitable company in accordance with the ethlcal requirements that are relevant to our audit of the financial statements in the UK, includin8 the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to goSng concern In auditing the finanoal statements. we have conduded that the trustees, use of the going con￿rn basis of accounting in the preparation of the finanaal statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements a￿ authorised for issue. Our responsibilities and the responsibilities of the trustees with respert to going concern are described in the relevant sertions of this report. Other Informatlon 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 Auditor5 thereon. Our opinion on the finanaal statements does not cover the other Info￿natiOn and. exopt to the extent othenvise explicitly stated In our report, we do not express any form of assurance condusion thereon. In connection with our audit of the financial statements, our ￿SponsIbl11ty is to read the other infomatlon and, in doing so. consider whether the other infonnation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwse appears to be materially misstated. If we identlfy such material inconsistencies or apparent material misstatements. we are required to determine whether this gives rise to a material misstatement in the finanaal 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 fart. We have nothing to report in this regard. Matters on which we are required to report by exceptlon We have nothin8 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 financial statements; or the charitsble company has not kept adequate accounting records: or the financial statements are not in agreement with the accounting records and returns; or we have not received all the infomiation and explanations we requlre for our audit Page112 GREATER MANCHESTER IMMIGRATION AID UNIT INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF GREATER MANCHESTER IMMIGRATION AID UNIT FOR THE YEAR ENDED 31 MARCH 2025 Responslbllltles of trustees As explained more fully in the Statement of Trustees, Responsibilities, the trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees determine is necessary to enable the preparation of financlal statements that are free from material misststement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessin8 the charitable company'5 ability to continue as a going concem. disclosln8. as applicable, matters related to 80ing concern and using the going concern basis of accounting unless the trustees either intend to liquidate the tharitable company or to cease operations, or have no realistic altemative but to do so. Our responslbilities for the audit of the flnandal 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 objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material mi5Statement, whether due to fraud or error, and to issue a Repart of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit condurted in accordance with ISAS {UKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered materlal if, indlvidually or in the a8gregate. they could reasonably be experted to Influence the economic decisions of users taken on the basis of these financial ststements. The extent to which our procedures are capable of deterting Irregularities, including fraud Is detailed below: the engagement partner ensured that the en8a8ement team collectlvely had the appropriate competence, capabilities and skills to identify or reco8nise non-compliance with applicable law5 and regulatlons; we identified the laws and regulations applicable to the company through discussions with directors and other management, and from ourcommercial knowledge and experlence ofcharities; we focused on speclflc laws and regulatlons which WÈ consldered may have a direct material effect on the financial statements or the operations of the charity. Including the Charities Act 2011 and Companies Act 2006,. we a55e55ed the extent of compliance wlth the laws and regulations identified above through makin8 enquiries of management and inspecting legal corresF)ondence 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 audlt. We assessed the susceptibility of the charlty's flnanclal statements to material misstatement, Including obtaininB an understanding of how fraud might occur. by: making enquiries of management as to where they considered there was susceptibility to fraud. their knowledge of actual, suspected and alleged fraud and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and re8ulations. To address the rlsk of fraud through management bias and override of controls, we: performed analytical procedures to Identlfy any unusual or unexpected relationshlps; tested journal entries to Identlfy unusual transactions; Page113 GREATER MANCHESTER IMMIGRATION AID UNIT INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF GREATER MANCHESTER IMMIGRATION AID UNIT FOR THE YEAR ENDED 31 MARCH 2025 assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed prO￿dureS whlch included. but were not limited to.. agreeing financial statement disclosure5 to underlying 5UPPOrting documentation; enquiring of management as to actual and potential Iltigation and claims; and reviewing correspondence with HMRC. There are inherent limltations in our audit procedures described above. The more removed that laws and regulatlons are from financial transactions, the less likely it 15 that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identlfy non enrolment. The charity also makes payments into a defined benefrt 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 employees are now enrolled into the charibls defined contribution scheme. Although the defined benefit scheme is closed to new members. the tharity currently makes payments into the scheme for 2 employees who entered prior to closure. The pension cost Is charged to the Statement of Flnancial Activities in the year and represents contribution5 payable by the charity to the pension funds. Employee benefits The costs of short-tem employee benefits 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 in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide temiination benefits. Operating leases Rentals under operating leases are charged to the Statement of Financial Activities on a stralght-line basis ov the lease term. Tanglble fixed assets Tangible fixed assets are initially recorded at cost and 5ub5equently measured at cost or valuation, net of depreciation and any impairment losses. Additions of a single item or group of similar assets exceeding £l,OLNJ are capitalised at cost. Depreciation is recognised so as to WTite 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, Fittings and Office Equipment Computer Equipment - 2% on cost - IO% on cost - 25% on cost - 33.33% on cost The gain or loss arisin8 on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is uedited or charged to the income ststement. Impalrnient of fixed assets At each reporting period end date. the ci)mpany reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If anv such indication exists. the recoverable amount of the asset is estimated in order to determine the extent of the impairment10ss lif any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash*enerating unit to which the asset belongs. The recoverable amount Is the higher of fair value le55 costs to sell and value in use. In a55essing value in use, the estimated future cash flows are dlscounted to their present value usin8 a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flow5 have not been adjusted. Pa8e122 Continued... GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 MARCH 2025 Impalrment of fixed assets- continued If the recoverable amount of an a55et lor cash-generatin8 unit) is estimated to be less than its carrying amount, the carrylng amount of the asset lor cash-8eneratln8 unlt} Is reduced to Its recoverable amount. An Impalrment loss is recognlsed Immedlately In profit or loss, unless the relevant asset Is carrled at a revalued amount, In whlch case the impairment loss Is treated as a revaluation decrease. Recognised impalrment losses are reversed If, and only If, the reasons for the Impalrment loss have ceased to apply. Where an Impairment loss subsequently reverses. the carryin8 amount of the asset 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 carryin8 amount that would have been determined had no Impalment loss been recognised for the asset lor cash-generatin8 unltl In prior years. A reversal of an impalrment loss is reco8nlsed immediately in profit or loss, unless the relevant asset Is carried at a revalued amount, In whlch case the reversal of the Impalrment loss Is treated as 3 revaluation increase. Flnanclal Instruments Baslc flnanclal asset$ 8aslc financlal assets. whlch Includes debtors and cash and bank balances, are Inltlally measured at transactlon prlce Includin8 transaction costs and are subsequently carrled at amortised cost using the effectlve Interest method unless the arran8ement constltutes a financlng transaction, where the transaction is measured at present value of the future recelpts discounted at a market rate of Snterest. Financlal assert5 classlfled as recelvable wlthln one year are not amortlsed. Baslt flnanelal Ilabllltles Baslc financlal Ilabllltles, includln8 creditors and bank loans, loans from fellow 8roup companles and preference shares that are classlfied as debt, are inltially recognlsed at transactlon prlce unless the arran8ement constltutes a flnanclng transactlon, where the debt instrument Is measured at the present value of the future payments dlscounted at a market rate of Interest. Financial Ilabllitles classlfied as payable withln one year are not amortised. Debt Instruments are subsequently carried at amortlsed cost, using the effectlve Interest rate method. Trade credltors are obllgations to pay for 8oods and services that have been acqulred in the ordlnary course of buslness from suppllers. Amounts payable are classlfled as current liabllltles If payment Is due withln one year or less, If not, they are presented as non-current Ilabillties. Trade credltors are reco8nised Initlally at transaction prlce and subsequently measured at amortised cost U5in8 the effectlve Interest rate method. Provlslons Provisions are recognised when the charltable company has a present obllgation resultlng from a past event that will probably result in the transfer In funds to a thlrd party and the amount due to settle this obligation can be measured or estimated reliably. Provisions are normally reco8nised at the settlement amount due. Fund accountlng Unrestricted funds can be used in accordance with the charitable objectlves at the discretlon of the Trustees. Restricted funds can only be used for restricted purposes within the objects of the charity. Restrlctlons arise when speclfled by the donor or when funds are raised for a partlcular purpose. Page123 continued... GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2025 JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAlf+lTY The preparation of financial statements in compliance with FRS102 requires the use of certaln critical accountin8 estimates. It also requires management to exercise judgement in applyin8 the charitws accounting policies. The following are the key judgements and sources of uncertainty In the estimates that have the most Si8nificant effert on the amounts recognised in the financial statements: Performance-related grants Judgement is applied by the charlty when considering how grant income is recognised under section 5 of the Charities Statement of Recommend Practice IFRS 1021. For each Brant the charity considers whether any performance-related conditions exist which impact when and over what period income becomes receivable or can be recognlsed. Performance-related condition5 are understood to be those which specify that goods, seNices 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 progress included as a debtor on the charity's balance sheet. The charity's work in progress consists of unbilled Immigration law work undertaken in relatlon to the charitys Legal Aid Agency {LAAI contract. Uncertainty arises due to the fee structure relating to such work and judgements are involved in adjustin8 the figure for billable time obtained from the charivs case management system accordingly. Flxed fee cases Judgements.. Fixed fees apply to maSorlty of work undertaken by the tharlty regardless of time spent or costs incurred. Additional 'E5cape 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 Escape Fee billing and, therefore, whether time recorded on the case management system will become billable or not. Additionally, while the charity uses sector standard case management software to monitor time and costs relating to Legal Aid work, all Escape Fee claims are subject to LAA review and there Is potentlal for claims to be disallowed. Estimote5.' The charity currently applies a recoverability percentage to the carrying value of work In progress to account for the uncertainty outlined above. For fixed fee case5 80% 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 76%. This change reflects a sustained increase In actual fee recovery observed since the beginning of the year ended 31 March 2024 and continuin8 durin8 the year ended 31 March 2025. This is line with managemenvs expectation5 of the impact 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 limits on billing. Limits mav be raised on a ca5e-by-case basis but this is subSect 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 Li4. Estimotes," The charity currently applies a recoverability percenta8e to the carrylng value of work in pro8ress to account for the uncertainty outlined above. For hourly rate fee cases 90% of the tlme recorded Is considered recoverable and is included as work in progress 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 contlnued... GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2025 JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY- continued Management have considered the effect of amending the estimates relating to fixed fee work recoverability. A 5% increase In estimated recoverability would increase the charitws debtor balance by £6,189 as at the balance sheet date, while a IO% increase would increase debtor5 by £12,378. Conversely, a 5% decrease and IO% decrease in estimated recoverability would reduce debtors at the balance sheet date by £6,189 and £12,378 respectively. No other significant judgements. further to that surrounding going concern. have been made by management in preparing these financial statements. DOl+lATIONS, GRANTS AND LEGACIES Unrestrirted Funds Restrlcted Funds 2025 Total 2024 Total Donations from individuals and institutions Grants 76,183 76,183 66,755 191,778 916,260 1,108,038 1,044,553 267,961 916.260 1,184,221 1,111,308 INCOME FROM CHARITABLE AcfiviTIES Unrestricted Funds Restricted Funds 2025 Total 2024 Total Legal serVI￿S and casework 857.134 857.134 828,592 CHARITABLE AcfiviTIES COSTS Support Costs (see note 5 below) Staff Costs (see note 8 below) Dlrect Costs 2025 Total Legal services and casework 1.511,260 199.063 170,706 1,881,029 Support Costs (see note 5 below) staff Costs (see note 8 below) Dlrect Costs 2024 Totsl Legal services and casework 1,286,281 147,208 144.382 1,577,871 Page | 25 continued... GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 MARCH 2025 SUPPORT COSTS Support costs 2025 2024 Audlt fees Bank charges Depreclation Development Governance and board costs Insurance Irrecoverable VAT 7,900 1,370 17,423 1,062 1,678 3,200 28,681 18,329 21,649 45,285 17,996 6,133 7,500 1,665 8,182 6,018 1,284 8,546 13,375 18,130 21,843 33,913 17,234 6,692 Legal and professional Premlses costs Telephone Sundry 170,706 144,382 NET INCOME Net Income Is stated after char8in8: 2025 2024 Depreclatlon - owned assets Auditorfs remuneration Operatln8 leases 17,423 7,900 2,260 8,182 7,500 1,819 TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneratlon or other benefit5 for the year ended 31 March 2025 nor for the year ended 31 March 2024. Trustees, expenses Expenses totalling £771 were paid to 4 trustees In relation to travel, Childtare and subslstence costs for the year ended 31 March 202512024: £439 pald to 4 trustees In relatlon to travel and subslstence costs). STAFF COSTS 2025 2024 Wages and salaries Social security costs Pensions costs 1,310,327 128,868 72,066 1.117,791 103,847 64,643 1,511,260 1,286,281 Page | 26 continued... GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 MARCH 2025 STAFF COSTS- continued The average monthly number of employees during the yearwas as follows: 2025 2024 Legal Advice Non-Legal Support and Poliw Work Management and Administration 26 21 42 37 Hlghest Pald Employees No employees received emoluments of more than £60,000 for the year ended 31 March 202512024: Nill. Key Management Personnel The Key Management Personnel In the year ended 31 March 2025 were the Chlef Executive Officer and Senior Solicitor 12024: Chief Executive Officer, Operations Dlrector and Senior Solicitor). The total amount of employee benefits {including employer's national insurance and pensions contributions) received by Key Management Personnel was £131,132 {2024: £164,297). TANGIBLE FIXED ASSETS Freehold Improvements Fixtures Computer equipment Total propertv and property fittlngs COST At l April 2024 Additions 178,000 24,979 22,714 17,287 4,399 12.0001 22.580 46,376 242,846 73,489 {2,0001 Disposals At 31 March 2025 178.000 47,693 19,686 68,956 314,335 DEPRECIATION At l April 2024 Charge for year Eliminated on disp05a15 74,916 3.560 20,104 1,988 15,887 447 5,986 11,428 116,893 17,423 12,000) 12,0001 At 31 March 2025 78.476 22,092 14,334 17,414 132,316 NET BOOK VALUE At 31 March 2025 99,524 25,601 5,352 51,542 182,019 At 31 March 2024 103,084 4.875 1,400 16,594 125,953 Page | 27 continued... GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 MARCH 2025 io. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2025 2024 Trade debtors 166,295 383,537 157,286 93.546 586,838 210,652 Prepayments and accrued income Other debtors 707,118 891,036 ii. CREDITOR5: AM0UP￿s FALLING DUE WITHIN ONE YEAR 2025 2024 Trade creditors 26.805 14,711 12,793 37,522 395,223 10,991 10,700 19,156 25,493 464.579 VAT Other creditors Accruals Deferred Income 487,054 530,919 Analysls of movement In deferred Income: 2025 2024 Brought forward Released in the year Deferred In the year 464,579 1358,8731 289,517 517,769 1312,3401 259,150 395,223 464,579 Deferred income consists of grant income in which the charity is not yet entitled. 12. LEASING ARRANGEMENTS Minimum lease payments under non-cancellable operating leases fall due as follows: 2025 2024 Within one year Between one and five years After more than 5 years 90S 1,568 3,223 386 2,704 3,609 5,177 Page128 GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2025 13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL AcrwmES Unrestrlrted Restrlrted Total funds funds funds INCOME AND ENOOWMENTS FROM Donations, 8rants and legaaes Charitable activities 307.432 828,592 29,797 803,876 1.111.308 828.592 29,797 Investment income Total 1.165,821 803,876 1,969,697 EXPENDITURE ON Charitable activities 815,710 762,161 1,577.871 Total 815.710 762,161 1,577,871 NET INCOME 350,111 41,715 391,826 Transfers between funds 2.875 {2,87SI NET MOVEMENT IN FUNDS 352,986 38,840 391,826 RECONCILIATION OF FUNDS Total funds brought foThvard 1,352,297 35,339 1,387.636 TOTAL FUNDS CARRIED FORWARD 1,705.283 74.179 1,779,462 Page129 GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2025 14. MOVEMENT IN FUNDS Incomlng resources Resources expended 1.4.24 Transfers 31.3.25 Unrestrirted fvnds General Fund 592,211 103,084 132.000 209.136 249,996 418,856 1,705,283 1,162,022 1967,7181 (3.5601 5,797 792.312 Designated- Freehold Property Designated- Property Refurbishments Designated- Work In Progress De5ignated- Disbursements Deslgnated- Operatlng Reserve 99.524 122,000) 152.850) 127,985} 109.024 11.986 iio,000 156,286 222,011 527,880 1,908,013 1,162.022 1971,2781 Restricted funds Access to Justice- 2023-25 108,331 loo.000 25,000 1108,331) iioo.000) 125,000) 120,000) {9.9971 iio,0001 Access to Justlce Icommunlty Fundl- 2024-29 Balcombe Charltable Trust- 2022-25 8oa2 Trust- 202425 20,000 14,504 10,000 Carlta51 Lloyds 2024-26 Civic Power Fund- 2023-26 Greater Manchester Combined Authorlty (Domestic Abuse/NRPFI- 2023-25 Greater Manchester Comblned Authorlty IVAWGI - 2023-25 Greater Manchester Youth Network- 2023-26 4,507 23,333 123,3331 11.595 56.667 168,2621 113,4581 16.0001 136.3731 134,5931 130,4761 127.5971 188,3871 {40,3991 {35,5471 {4.0001 195,7981 120,5661 13,458 6,OC#) 44,198 20,952 30,476 27.597 140.713 Independent Chol￿5- 2024-25 Justlce First Fellowshlp- 2023-26 Justice Together- Policy- 2021-24 Justice Together- Policy- 2024-25 justi￿ Together- Se￿iCe Delivery- 2021-24 Justice Together- Service Delivery- 2024-27 KIND 7,825 13,641 52,326 7,496 14,714 32,903 20,833 4,000 99,723 20,S66 Legal Educatlon Foundatlon - 2021-24 ManchesterWomen'sAld National Lottery Community Fund- 2023-26 GMLC l Oak Foundation- 2022-25 Oglesby Green Grant - 2024 Paul Hamlyn Foundation - 2024-26 Sam and Bella Sebba Charitable Foundatlon - 2022-24 119 4,044 11,986 {11,986} 70,000 170.0001 28,000 12,608 {13,6021 916.260 128,0001 112,6081 11,0261 {909,7511 Refugee Action I Step Change- 2023-24 StTateglc Legal Fund- 2023-24 14.628 74.179 111,9861 68,702 TOTAL FUNDS 1,779,462 2.078,282 1.881,0291 1.976.715 Page130 GREATER MANCHESTER IMMIGRATION AID UNIT NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 MARCH 2025 14. MOVEME￿ IN FUNDS-comparatives IncomlnB resources Resources expended IA23 Transfer5 31.3.24 Unrestricted fvnds General Fund 550.925 106,644 120,000 259.fy)5 70.000 245,723 1,165.821 1812,1501 {3.560) (312,3851 592,211 103,084 132,000 209,136 Designated- Freehold ProF*rty Designated- Property Refurbishments Deslgnated-work in Progress Designated-cost of LNing Pay Intreases Designated- Disbursements Designated- Operating ReseNe 12,000 149.8691 170.0001 4,273 418.8S6 2.875 249,996 418,856 1,705,283 1352.297 1.165.821 815.7101 Restrirted funds Access to Justice- 2022-23 913 {9131 (81,2481 18,3331 (25,000) 14,6021 {io.000) {42,01￿} Access to Justice- 2023-25 81,248 8,333 25,Ch)O 4.602 lo.(￿0 Access to Justice (Community Fund}- 2024-29 Balcombe Charitable Trust- 2022-25 Britlsh Red Cross- 2023 Civic Power Fund - 2023 Esmée Fairbairn FoundatKin- 202>26 Greater Manchester Combined Authorlty OIAWGI - 2023-25 42,000 23.333 12,696 111.738) 112.6961 {6.01)01 15.0001 147,2221 1184.6591 132,1311 160,2861 14.0001 {93,9591 {19.320) 11,595 Greater Manchester Youth Network- 2023-26 Independent Choices- 2023-24 Justlce Flrst Fellowship- 2023-26 Justice To8ether- PolKy- 2021-24 Justice Together- SeNice DelNery- 2021-24 KIND 12.821 173 48.042 184,486 31.865 13,641 7.762 14,583 7.496 14,714 Legal Educatlon Foundatlon- 2021-24 Monchester Women's Aid 60,417 National Lottery Communty Fund- 2023-26 GMLCI Oak Foundation- 2022-25 Oglesby Green Grant- 2024 Paul Hamlyn Foundation - 2021-24 Paul Hamlyn Foundatlon - 2024-26 Sam and Bella Sebba Chartt3ble Foundatlon - 2022-24 94.078 119 19.320 14.861 12.8751 11,986 31.lJ)O 17.SOO {31.0(K)I 117.500} 42.( 18.291 14.628 3.013 1.250 803.876 142.0001 118.291) Refugee Actlon / Step Change- 2023-24 Str4tegic Legal Fund - 2023-24 Strategic Legal Fund- 2023 The Talent Fund - 2022-23 14,628 13.013) 11.2501 (762.161 35.339 {2,875) 74.179 TOTAL FUNDS 1.387.636 1.969.697 11.577.871) 1.779.462 Pa8e131 GREATER MANCHESTER IMMIGRATION AID UNrr NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 MARCH 2025 14. MOVEMENT IN FUNDS- contlnued The transfer between the Oglesby Green Grant - 2024 fund and the General Fund represents the value of tangible fixed assets purchased using the restricted fvnd but intended to be used for general and not restricted purposes, alon8 With a transfer of the remaining balance left after the purchase of assets. DESIGNATED FUNDS As at 31 March 2025 the trustees have elected to designate the following funds: Freehold Property Fund.. The charity owns the freehold for the prernises from whlch it operates in Crumpsall. Greater Manchester. This property Is integral to the operations of the charity. and it would be required to find alternatlve premlses should the freehold be sold and the value of the asset be converted Snto cash. The trustees have therefore elected to designate a fund representing the current net book value of the freehold, 8iven that these funds annot easily be converted into Cash. Anticipoted costs reloting to Buildlng Refvrbi5hments.' The freehold property owned is In need of slgniflcant malntenance and refurbishment to brlng It Into Ilne with current client and staff needs. While the charity does not currently have active plans to undertake all the necessary works, it Is considered that necessary in the medium term and so the trustees have therefore designated £IIO,OIKI in reco8nition of anticipated costs which are likely to be realised withln 5 years of the balance sheet date. Thls balance has been reduced from £132,(M)) In the prlor year, In reto8nltion of worked undertaken In the year ended 31 March 2025. Work In Progre55 Fund.. The charlty holds immi8ratlon and public law Legal Aid contracts. Work under these contracts cannot normally be billed until a declsion has been made by the Home Office or the relevant court on each le8al case. As the date that these funds will be become billable is uncertain, the tnJstees have elected to hold funds equating to the carrying value of work in pro8ress at the balance sheet date in a desi8nated reserve untll these balances can be reallsed. Disbursements Fund,. Disbursements, e.8. interpreter and counsel fee5, expended relatin8 to the Legal Ald Immlgratlon and publlc law cases referenced above are also not nornially billed until a case Is concluded. As the date that these funds wlll be become billable is uncertain. the trustees have elected to hoSd funds equatin8 to the carrying value of dlsbursements at the balance sheet date in a de5i8nated reserve until these balances can be realised. Operoting Reserve Fund.. The charity Is currently Subject to a tumultuous polltlcal and le8islative environment whlch is havln8 a significant impact on the organisation and which is leading to increased demand. Legal Aid funding Is sublect to an ongoing consultation and the charity also has a number of lar8e 8rants and contracts that are due to end in the next 24 months. In addition to this, the charity is experiencing upward pressure on costs and, in particular, on salarles which it alms to match to NJC pay increases. Glven these drcumstsnces and to ensure that GMIAU remains a stable and reslllent organlsatlon the trustees have consldered it prudent to designate an operating reserve to cover any impart on its services as a result In changes to its Income or increased costs. The funds deslgnated at the balance sheet date represent 3 months of operating costs. Page132 GREATER MANCHESTER IMMIGRATION AID UNrr NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 MARCH 2025 16. PENSION CONTRIBUTIONS Defined contributlon pension scheme The charity operates a defined contribution pension scheme. The pension cost chaoe for the year represents contributions payable by the charity to the scheme and amounted to £49.41712024: £42,844). The amount payable to the pension Provider at the year*nd was £nil (2024: £8,786). Defin￿ benÈfft pension stheme The tharity 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 tharge for the year represents contributions payable by the charity to the scheme and amounted to £22,64912024: £21,799). The amount payable to the pension provider at the year-end was £nll {2024: £nill. 17. RELATED PARfi DISCLOSURES There were no related party transactions for year ended 31 March 2025 nor the year ended 31 March 2024. i& PROVISIONS At 31 March 2024, the charity recognised a provision for underpaid irrecoverable VAT relating to the period I January 2020 through 31 March 2023, during which partial exemption was not correctly applied to the charity's VAT returns. This obligation was settled in full during the year ended 31 March 2025. 2025 2024 Irrecoverable VAT 22,153 UMITED BY GUARANTEE The company Is a prlvate company limited by guarantee and consequently does not have sh3re capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the events of liquidation. At the balance sheet date there were 912024: 81 guaranteeing members. Pa8e133