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← Migrant Legal Action

2023-12-31-accounts

Company registration number: 07879053 Charity registration number: 1152073

Migrant Legal Action

(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 December 2023

Smartax Limited 38 Station Road North Harrow Harrow HA2 7SE

Migrant Legal Action

Contents

Reference and Administrative Details 1
Trustees' Report 5 to 18
Independent Examiner's Report 19
Statement of Financial Activities 20
Balance Sheet 21
Notes to the Financial Statements 22 to 33

Migrant Legal Action

Reference and Administrative Details

Chairman S Lakhani Chief Executive Officer Anna Kouma Trustees S Lakhani C V Patel B E Wagner L Negahbani B M Monji Charity Registration Number 1152073 Company Registration Number 07879053 The charity is incorporated in England. Registered Office 53 Addington Square London SE5 7LB Independent Examiner Smartax Limited 38 Station Road North Harrow Harrow HA2 7SE Bankers Natwest 70 Denmark Hill Camberwell London SE5 8SD

Page 1

Migrant Legal Action

Chairman's statement

Welcome to our annual report

I am very delighted to be able to present you with Migrant Legal Action’s Annual Report for year 2023. Since 1978 Migrant Legal Action and its staff have been working determinedly to help our clients to find the best solutions to their immigration issues, this work continued during 2023.

The most important aim of Migrant Legal Action has always been to defend the rights of the most vulnerable members of our community through the taking of legal action. Over the last 3 years, the pandemic has had an immense impact on our work in that it has become increasingly digitalised and remote working is now an integral part of how we are able to assist our client. During 2023, we took the decision to downscale our office spaces and therefore approached our landlord, Multi Racial Trust, who agreed for us to approach other organisations in an effort to find an agency who will be suitable to share the building that we occupy. It was our assessment that downscaling the offices will have as an effect that our overheads costs would be reduced and thus the finances of the organisation would become more sustainable. Throughout 2023 Migrant Legal Action has continued assisting clients and this report is a testament to the impact of the organisation’s efforts. Migrant Legal Action, together with our funders, partners, and supporters, have continued to pursue its mission to defend the rights of the immigrant community.

This annual report demonstrates how we have continued to work to meet our aims, setting out the measurable results that we have achieved and illustrates how we have continued to work towards financial sustainability of the organisation.

We work to enable and empower our clients, who face immigration, asylum or nationality issues, to better understand their rights as well as obligations. We believe that access to legal advice is an essential tool necessary to empower those in our communities who face multiple disadvantage and complex needs. Provision of appropriate advice, guidance and representations has as its objective to enable clients to take appropriate action to improve their lives. We work toward achieving this by providing high quality specialist legal advice and representation, which is free or affordable.

Many of our funders continued to step up to help meet the challenges caused by the pandemic and the cost-of-living crisis, including additional flexible funding. Migrant Legal Action is very grateful to Multi Racial Trust for its continued support.

As you will be able to readily see from the report Migrant Legal Action has continued to achieve excellent results and is cost effective. We measure our impact by recording the outcomes that we achieve for individual clients and measuring our performance. This is turn shows the effect that our work has in our local community and in the wider society. We work towards ever increasing effectiveness by the use of technologies, whilst ensuring that we work ethically and protect the privacy of our clients.

We were fortunate to continue receiving the assistance of our volunteer bookkeeper, who during the year has assisted us in developing internal financial controls and making sure that we increase our financial resilience.

Our work continues to be made possible by our generous and dedicated funders and supporters. Migrant Legal Action has, since it was established more than 40 years ago, been fortunate to have a strong and stable basis of donors and supporters. We remain grateful for your continued trust and generosity and recognise that we would not have been able to continue our work without your support.

I would like to take this opportunity to thank everyone for your continued support during 2023. On behalf of the board of trustees, I would like to extend particular appreciation to our excellent team of staff and volunteers for their continued commitment to the people we serve. I am very pleased that the team has continued to achieve exceptional results for our clients.

Page 2

Migrant Legal Action

Chairman's statement

The following pages feature our work over the last financial year. During this year we provided specialist casework and representation, including advocacy in court, in 327 cases. We provided advice to 1966 clients on the phone and 2nd tier advice on 96 cases to generalist advisers and community organisations. A very high percentage of our clients, 98%, continue to report that they were happy with our service. During the year we have continued with our dedicated specialist anti-trafficking project.

Working in Partnership

At Migrant Legal Action we are of the view that it is essential that we continue working in partnership with local and national organisations and councils. Such partnerships help us to better respond to our clients' needs, share information and resources. During 2023 we have continued to work together with other agencies both nationally and locally to find the best response and to continue providing the much-needed services to clients who had been affected by the cost-of-living crisis. We continue being a core member of Southwark Legal Advice Network (SLAN) where advice agencies located in the borough work together to establish objectives for the advice sector in Southwark whilst identifying particular areas of need and concern.

During 2023 in partnership with Southwark Law Centre and Cambridge House Law Centre we continued to provide specialist advice services to the residents of Southwark in accordance with our contract with the Borough of Southwark. We also worked closely together with our colleagues at Citizen Advice from whom we continued to accept regular referrals of complex cases. Citizen Advice nationally continues to be the highest referral source to our telephone advice service. Additionally during 2023, we started actively approaching our partner organisations who might be interested to share the office spaces with us and to agree a redevelopment project of the building that we occupy.

During the year we have received referrals from our partners at Refuge, Hestia, Hackney Migrant Centre, CORAM, PRAXIS, Red Cross, Refugee Council, the No Recourse to Public Funds Team in Southwark, various GP surgeries as well as our local MPs.

During the year, together with other organisations in Southwark we continued to be a referral agency in the community referral pathway to the Southwark Cost of Living Fund.

We have also continued to support frontline workers who assist service users with their immigration queries and in particular those who are impacted by the NRPF condition. We have also continued to work with frontline agencies to identify and support those who have unresolved immigration status, enabling them to access advice and representations in making applications to regularise their status in the UK.

Page 3

Migrant Legal Action

Chairman's statement

Acknowledgements

Migrant Legal Action fundraises for all its work with the most vulnerable clients. We rely on relationships with many partners throughout the country and internationally.

Our trustees sincerely thank all our supporters and donors who make our work possible, including:

Finally, we want to thank our partners, staff and volunteers who during 2023 have contributed to our work.

S Lakhani

Chairman and Trustee

Page 4

Migrant Legal Action

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 December 2023.

Objectives and activities

Objects and aims

We deliver specialist advice and representation to people facing multiple disadvantages.

We are based in Camberwell, Southwark but work regionally, nationally and internationally. We nevertheless remain firmly rooted in our local community and work closely with the community and other organisations and agencies in Southwark.

Our aim is to tackle social injustice and poverty by:

Objectives, strategies and activities

During the year, supported by our stakeholders and advisers, we worked towards delivering our business plan which was updated in January 2023. We continued working towards developing and implementing financial systems and controls with the aim of strengthening the organisation’s financial resilience. After reviewing the organisation’s finances, it was concluded that reducing our overhead costs, alongside establishing financial reserves, would contribute to the sustainability of the organisation in the face of continued adverse financial climate.

The plan’s key strategic objectives continue to be:

Page 5

Migrant Legal Action

Trustees' Report

Strategic Objective 1

To enhance organisational capacity, resilience and sustainability

Our key achievements in relation to business development targets included:

  1. Ensuring that the organisation limits the impact of the cost of living crisis, both in terms of financial sustainability and capacity::

a) Maintained our financial position as follows:

b) Improved our resilience:

Strategic Objective 2

Design and provide services that deliver positive impact for individuals, families and communities focusing on those that face severe and multiple disadvantage

Helping people obtain leave to remain, obtain jobs and reunite with their families is at the heart of this objective. During 2023 we continued to focus on clients who have been affected by the increased cost of living and in particular on those who are additionally prejudiced by having NRPF condition imposed on their immigration status.

Our key achievements in relation to affordable, independent, and expert legal services included the following:

Users were:

  1. 53% female and 47% male

  2. 75% Black and Minority Ethnic and 25% British White and White Other

  3. 48% Living in social housing

  4. 16% Homeless

  5. 37% Privately renting

  6. 65% Lone parents with children

  7. 35% Couples with children

  8. 35% Unemployed

  9. 52% Working [full-time and part-time]

Asylum:

  1. 22 new asylum cases opened

  2. 18 specialist one-off advice sessions

Page 6

Migrant Legal Action

Trustees' Report

  1. 6 clients represented at Court

  2. 12 grants of refugee status

  3. 6 successful appeals

Immigration:

  1. 170 new immigration cases opened

  2. 14 specialist one-off advice sessions

  3. 8 clients successfully represented at Appeals Tribunals

  4. 147 clients granted leave to remain or indefinite leave to remain

Nationality:

  1. 67 new nationality cases opened

  2. 6 specialist one-off advice sessions

  3. 56 grants of citizenship

Public benefit

Charity trustees have a duty to report in the trustees’ annual report on their charity’s public benefit. The trustees should demonstrate the following:

The people who receive support are entitled to do so according to criteria set out in the charity’s objects: wherever possible, the views and opinions of beneficiaries are sought in the design and implementation of Migrant Legal Action’s activities. This approach helps to ensure that projects are targeted at people in need, and that beneficial changes to the lives of people from disadvantaged and excluded communities can be evaluated and assessed.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Page 7

Migrant Legal Action

Trustees' Report

Use of volunteers

Volunteers have always been vital in delivering our work and bring their time, energy and enthusiasm to Migrant Legal Action’s activities. We aim to ensure that as many people as possible are aware of the volunteering opportunities we offer. We also aim to provide our volunteers with opportunities to acquire skills and experiences that will help them improve their quality of life, develop their professional knowledge and or progress into further education, employment or training.

The majority of our volunteers find out about us through personal recommendation. Our volunteers are not paid for their time, but they are reimbursed for out-of-pocket expenses they incur. All of our volunteers are provided with a confidentiality agreement and a volunteer agreement, defining their goals, our needs, and the level of support or training they will receive.

Because of the continued implementation of remote working, engaging volunteers has become more challenging. During 2023, two volunteers worked with us to provide support in the following areas:

Achievements and performance

During 2023 European Nationals continued to be able to make applications under the EU Settlement Scheme. However, such applications are now made out of time and have become more complex. This resulted in advice calls on our advice line from European nationals and their family members needing casework support as opposed to one off advice with the process. Following the closure of the EUSS, we have continued to receive a substantial amount of enquiries to submit late applications to the Scheme and note that there remain many family members of EEA citizens who were unaware of the requirement that they had to make an application under the Scheme. Enquiries further relate to application for family permits where family members reside outside the UK and wish to seek to join the EEA family members in the UK.

We have seen a continued high demand in callers referred to us by other organisations and those wanting advice on their right to lift limitation on access to public funds or who require assistance in obtaining fee waivers, as many clients reported financial impact of which meant that they were not able to meet the increased application fees and Immigration Health Surcharge imposed on all application for further leave to remain.

ASYLUM AND FAMILY REUNION

Migrant Legal Action remains dedicated to assisting refugees in obtaining status and security in the UK. During 2023, the Home Office continued to try to deal with the large backlog of unresolved asylum cases. We have, however, started to see that applications are being progressed and have continue to be particularly proud of the large percentage of grants made by the Secretary of State without the need to appeal, which this year reached 97%. Unfortunately, clients who had pending asylum claims continued to experience delays due to the large backlog. Extensive delays continue to be faced by those who are referred into National Referral Mechanism, as being potential victims of trafficking. It appears that capacity in relation to representatives able to assist with asylum and family reunion claims is now a real concern.

During the year we continued to receive a large number of referrals of asylum and family reunion clients who following a grant of asylum needed assistance with family reunion applications. This work remains particularly difficult because of the unavailability of Legal Aid and the need to apply for Exceptional Funding. We are pleased that our applications for exceptional funding on behalf of our vulnerable clients continue to be successful.

Page 8

Migrant Legal Action

Trustees' Report

IMMIGRATION

We represented 38 clients who were seeking entry clearance for their family members to join them in the United Kingdom. Moreover, we continued assisting clients who face difficulties in obtaining British passport for their children who were born outside the UK. We continued to provide advice and assistance with applications for elderly parents to be allowed to remain in the United Kingdom with their children. This category of applicants continues to be particularly challenging, as since July 2012 the immigration rules for adult dependent relatives have been, in practice, almost impossible to meet. We therefore are experiencing a growing number of clients who require advice in relation to their elderly relatives. We are moreover extremely happy that all our applications for this category of clients have been successful.

We represented 104 clients during 2023 who required assistance with their leave to remain applications where they were unable to afford paying the application fee. We now experience that 85% of our clients who are making human rights-based claims, are not able to meet the Home Office application fees and require assistance with obtaining fee waivers. These applications continue to be challenging because of the high level of scrutiny into client’s financial situations. However, many caseworkers continue use of email and telephone during the consideration, which hugely facilitate our ability to resolve queries quickly. We were pleased that almost all of our fee waiver requests during 2023 were successful.

ANTI-TRAFFICKING PROJECT

During 2023 we continued to offer specialist advice to potential victims of trafficking, as part of our anti-trafficking project, which we have run since 2012. We continued to offer free legal advice and representation to victims of trafficking and servitude. During the year we also provided contributed to London Borough of Southwark’s Community Safety Team’s Modern Slavery Partnership.

The aim of the project continues to be the breaking of the cycle of human trafficking and forced labour by increasing the provision of legal advice, improving the awareness of the issues and contribute to the development of policy in this area. During 2023 we continued to contribute to the University of Nottingham research project ‘Pathways Through Liberation: Revealing Survivors' Support Journeys Outside of the UK National Referral Mechanism’. This is a project looking at the experiences of victims of trafficking who either do not enter the NRM or leave it prematurely, as there is a lack of knowledge about the experiences and outcomes for this very vulnerable group.

Victims of trafficking are a group of clients who are often particularly vulnerable, as they are victims of exploitation and often face multiple disadvantages. The delays and poor decision making often lead their re-traumatisation and the biggest challenge is cultivating a relationship of trust between the client and the advisor. As a result of the Home Office’s delays in decision making, during 2023 the project resulted in 6 successful outcomes.

JUDICIAL REVIEW

We continue dealing with judicial review claims. During 2023 these consisted of challenges of Home Office’s decision to certify our client’s human rights’ and asylum claims. All of these continue to be settled in our clients’ favour. We have also continued in challenging the Upper Tribunal’s refusals of permission to appeal through judicial review.

Page 9

Migrant Legal Action

Trustees' Report

DEPORATION

We continue representing clients that face deportation following criminal convictions. These clients are often facing lengthy detention under immigration powers and are at high risk of deportation, if unrepresented. Clients we represent have families and children in the UK following very lengthy residence. Some of our clients have received sentences of more than 4 years imprisonment, making their appeals particularly difficult.

Most deportation cases are particularly challenging because of the lack of Legal Aid funding and the need to apply for exceptional funding from the Legal Aid Agency. Deportation cases require particularly detailed preparation and obtaining of detailed expert reports. During 2023 Migrant Legal Action continued its work in assisting this vulnerable group and has made a number of successful exceptional funding applications to be able to represent clients.

CONCLUSION

It has been yet another demanding year, but we have settled in well to a mixed way of working, using our office resources in a flexible manner. We have further continued to achieve exceptionally good results for our clients.

We look forward to next year with cautious confidence that we will be able to continue working in assisting clients, bringing hope to those who continue to be affected by the cost of living crisis in combination with the complex immigration system. We aim to continue fighting for justice for the most vulnerable and marginalised.

Key non-financial performance indicators

We reached a total of 1,966 clients in 2023. Consequently, the number of our service users has remained stable.

Our reach this year was calculated by:

Further analysis of performance indicators can be found within the Trustees' Report under objectives, strategies and activities section.

Financial review

The statement of financial activities shows net income of £262 (2022 - net expenditure £34,137) for the period. Funds as at 31 December 2023 stand at £2,641 (2022 - £2,379).

The details between restricted and unrestricted funds are given in note 14. The trustees consider the state of the charity’s affairs to be satisfactory. The trustees were particularly pleased that despite the continues impact of the pandemic and the cost of living crisis, Migrant Legal Action has been able to maintain the level of reserves.

Page 10

Migrant Legal Action

Trustees' Report

Policy on reserves

The trustees have reviewed the reserves policy to ensure that it is aligned to Migrant Legal Action’s strategic plan, and set a policy that requires reserves in a readily realisable form be built to a level that:

a) Protects the continuity of the organisation’s services for beneficiaries in the event of a large variation of income

b) Bridges cash flow problems

c) Provides a buffer to allow contingency actions

d) Addresses spending commitments and potential liabilities in the event of a winding up

a) Provides the funds needed to replace capital assets b) Provides funds to overlap shortfall of income caused by new recruitment c) Addresses risks associated with emergencies

a) Provide funds to enable the organisation to respond to new beneficiaries and/or needs as quickly as possible b) Enables the organisation to take advantage of opportunities

Having previously drawn from the reserves to grow and deliver Migrant Legal Action’s charitable objectives, and implement a business turnaround plan, the trustees recognise that the current level of reserves remains considerably below the desired amount. The risks associated with this lack of reserves have become apparent as a result of the impact of increased overheads, at the same time as the organisation faced a decrease in income from the Legal Aid Agency as well as from fee earning activity. This impact, has however been mitigated by:

To address long-term financial sustainability, the trustees have further approached our landlord, Multi Racial Trust, to seek their permission to find another organisation who can share the premises. They have further updated the following liquid reserve targets based on an assessment of the risks and opportunities facing Migrant Legal Action, as well as the current and future needs of beneficiaries:

31-12-2024 £35000 15% of annual expenditure, representing 2-months operating costs 31-12-2025 £51,000 24% of annual expenditure, representing 3-months operating costs 31-12-2026 £68,000 32% of annual expenditure, representing 4-months operating costs

Page 11

Migrant Legal Action

Trustees' Report

Policy on reserves (cont'd)

At the end of 2023 the organisation has not reached the desired level of reserves set last year. This was partly caused by the impact of increased overheads caused by the cost of living crisis. The trustees have, however, continued with the assistance of volunteer bookkeeper to implement new financial controls. Trustees will continue to closely monitor the reserves situation, ensuring that further efforts are put in place during 2024 including:

a) Continued implementation of new accounting and control systems to enable more effective use of financial resources

b) Apply for further funding for core operating costs c) Reducing work in progress

The trustees will review the required level of reserves on an annual basis, alongside the operating budget. The assessment will take account of income and expenditure risk within the budget, commitments to repay liabilities, and the need to keep sufficient bank balances to be able to manage the day-to-day fluctuations of receipts and payments.

Funds in deficit

Annual budgets are prepared for all activities and we carefully monitor performance against these on a monthly basis in order to ensure that any activity operating at a deficit is carefully supervised and opportunities are taken to mitigate risks and increase unrestricted funds.

Page 12

Migrant Legal Action

Trustees' Report

Plans for future periods

Aims and key objectives for future periods

Our future plans are to:

1.Enhance organisational capacity, resilience and sustainability by: a) Completing a business transformation process including:

b) Reviewing and updating our Office Manual

c) Updating business plan for the period 2024-2026

d) Continuing to diversify our income profile with particular regard to unrestricted earned income e) Continuing to rebuild our reserves

f) Recruiting further member of staff following reduction in staffing

  1. Design and provide services that deliver positive impact for individuals, families and communities facing severe and multiple disadvantages, by:

a) Increasing our impact and reach by:

b) Improve efficiency by:

Going concern

The trustees are of the view that the charity is a going concern for at least the next twelve months from the date of signing these accounts; the charity has neither the intention nor the need to liquidate or curtail materially the scale of its operations.

In assessing whether Migrant Legal Action will continue to have adequate resources available to fund the charity’s activities for the foreseeable future, trustees have considered the following:

Page 13

Migrant Legal Action

Trustees' Report

Trustees and officers

The trustees and officers serving during the year and since the year end were as follows:

Trustees: S Lakhani C V Patel B E Wagner L Negahbani V K Baxi (Resigned 1 February 2024) B M Monji (appointed 1 February 2024) Chairman: S Lakhani Chief Executive Officer: Anna Kouma

Structure, governance and management

Nature of governing document

Migrant Legal Action is a registered charity (registration number 1152073) and is constituted as a company registered in England and Wales and limited by guarantee (registration number 07879053). The company does not have share capital and is limited by the guarantee of the members to a maximum of £1 each. The objects and powers are set out in the Articles of Association.

Recruitment and appointment of trustees

Migrant Legal Action is governed by the charity’s trustees, who are also the company's directors (and are collectively called the Board). The Board meets a minimum of four times per year to manage the business of the organisation. It can appoint sub-committees and working groups to operate with delegated responsibilities.

The delegated responsibilities and accountabilities of the Chief Executive, General Secretary and other managers are currently set out in the Organisation's Handbook and in individual job descriptions.

The trustees concentrate on strategic matters, setting overall direction for the organisation, ensuring clear organisational objectives and holding the senior management team to account. This is affected through reporting, both on performance and strategic matters, and formal appraisal of the Chief Executive’s performance.

The trustees have reserved certain powers, which only they can exercise. These include those statutory powers that cannot be delegated, such as policies on investment and reserves, and decisions linked to major policy or programme initiatives, strategic planning, and changes to organisational structure.

Page 14

Migrant Legal Action

Trustees' Report

Induction and training of trustees

The Board completes skills audits in order to assess the skills of the existing trustees, identifies any ‘skills gaps’ and assesses any skills being lost by the retirement of a trustee. New trustees are recruited through advertising and direct approaches to professionals and other voluntary organisations.

The induction process for new trustees is based on Migrant Legal Action’s induction pack, and is designed to acquaint them with our purposes, financial position, work structure, staff and current issues. The induction process includes:

In order to ensure continued development, the trustees are offered the opportunity to attend training on key areas, such as risk and accountability.

Staffing and remuneration

Migrant Legal Action promotes the following standards to ensure our human resource policies:

Performance Management

We have a performance management and appraisal policy that:

Staff Remuneration

We recognise the importance of being transparent and accountable in all aspects of our work, including how we reward and recognise our staff. Every employee in our organisation earns at least the Living Wage.

The London Living Wage is an hourly rate set independently and updated annually, based on the cost of living in London.

Page 15

Migrant Legal Action

Trustees' Report

Staffing and remuneration (cont'd)

Staff remuneration (cont'd)

Migrant Legal Action is committed to ensuring that we pay our staff fairly and, in a way, which ensures we attract and retain the right skills to have the greatest impact in delivering our charitable objectives. In deciding on levels of pay the following factors are taken into account:

Salaries

During 2023 we had a staff team of 4 full-time and 2 part-time staff (4 FTE). Two members of staff work fulltime form the office whilst remaining four work remotely part of the week.

For Migrant Legal Action to run successfully, a large range of skills and disciplines are required, and we need to pay appropriately to ensure that we can recruit people with the right skills. We also need to retain them in a competitive market for the long-term, developing them and benefiting from their growing knowledge. This is in preference to the disruption and expense of recruitment, especially as many staff have detailed knowledge that is unique to them in the organisation and could not be quickly replaced. Our staff pay scales are set with this in mind.

The salary of the chief executive is approved by our Board. Every three years the chief executive’s salary is reviewed to benchmark it against other charities in London relative to size, budgets, responsibilities and the competitiveness of the employment market. At the same time, we seek to keep salary costs under control.

All other staff salaries are set by our management team, using comparisons with charities of our size in London and taking into account factors including inflation and Migrant Legal Action’s financial position. Salaries are openly stated in job adverts. The same benefits, including pensions, and terms and conditions apply to the chief executive as all other staff. We don’t apply any form of performance-related pay, nor do we have a bonus scheme.

Page 16

Migrant Legal Action

Trustees' Report

Major risks and management of those risks

The trustees regularly review and assess the risks faced by Migrant Legal Action in all areas of its work, and plan for the management of those risks. The management ensure that all plans and decisions take into account the possibility of negative outcomes. There is a Risk Register which is supervised and monitored monthly by the ECO, reported on quarterly at meetings of the Board of trustees and reviewed annually by the Board in order to ensure that the material risks to which the charity is exposed are properly evaluated and managed.

Appropriate mitigating actions are implemented by management to address the residual risks, mitigating them to a level the Board considers acceptable.

The Board recognises that, to achieve the objectives of the charity, the nature of some of Migrant Legal Action’s work requires acceptance of some risks which are outside our control, that is, risks which cannot be eliminated, so where this happens there is active and clear monitoring of the risk.

The trustees consider that appropriate systems and controls are in place to monitor, manage and mitigate Migrant Legal Action’s exposure to risks. These include, among other control mechanisms, maintaining staff awareness of risks by embedding suitable approaches in the budgeting process, the maintaining of reserves and the review of key systems and processes.

Principal Risks and Uncertainties

Our risk assessment and mitigation strategy approach is proactive and:

Principle risks and uncertainties are assessed for impact and likelihood. The highest risk areas have been identified as follows:

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Migrant Legal Action

Trustees' Report

Statement of trustees' responsibilities

The trustees (who are also the directors of Migrant Legal Action for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Small companies provision statement

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

The annual report was approved by the trustees of the charity on 31 October 2024 and signed on its behalf by:

......................................... S Lakhani Chairman and Trustee

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Migrant Legal Action

Independent Examiner's Report to the trustees of Migrant Legal Action ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2023.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of Migrant Legal Action as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... Sajjad Rajan Smartax Limited Chartered Certified Accountants and Statutory Auditors

38 Station Road North Harrow Harrow HA2 7SE

31 October 2024

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Migrant Legal Action

Statement of Financial Activities for the Year Ended 31 December 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Other trading activities
4
Investment income
5
Total income
Expenditure on:
Charitable activities
15
Total expenditure
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
12		 Unrestricted
£
2,494
139,557
860
142,911
(142,649)
(142,649)
262
262
2,379
2,641		 Restricted
£
-
32,068
-
32,068
(32,068)
(32,068)
-
-
-
-		 Total
2023
£
2,494
171,625
860
174,979
(174,717)
(174,717)
262
262
2,379
2,641		 Total
2022
£
17,671
166,296
187
184,154
(218,291)
(218,291)
(34,137)
(34,137)
36,516
2,379

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 12.

The notes on pages 22 to 33 form an integral part of these financial statements. Page 20

Migrant Legal Action

(Registration number: 07879053) Balance Sheet as at 31 December 2023

Note
Fixed assets
Tangible assets
8
Current assets
Debtors
9
Cash at bank and in hand
10
Creditors: Amounts falling due within one year
11
Net current assets
Net assets
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds
12		 2023
£
517
17,583
18,435
36,018
(33,894)
2,124
2,641
2,641
2,641		 2022
£
776
15,973
19,260
35,233
(33,630)
1,603
2,379
2,379
2,379

For the financial year ending 31 December 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The financial statements on pages 20 to 33 were approved by the trustees, and authorised for issue on 31 October 2024 and signed on their behalf by:

......................................... S Lakhani Chairman and Trustee

The notes on pages 22 to 33 form an integral part of these financial statements. Page 21

Migrant Legal Action

Notes to the Financial Statements for the Year Ended 31 December 2023

1 Charity status

The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £3 towards the assets of the charity in the event of liquidation.

The address of its registered office is: 53 Addington Square London SE5 7LB

These financial statements were authorised for issue by the trustees on 31 October 2024.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Migrant Legal Action meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The financial statements have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

Page 22

Migrant Legal Action

Notes to the Financial Statements for the Year Ended 31 December 2023

Exemption from preparing a cash flow statement

The charity has taken advantage of reporting exemptions under FRS 102 and therefore not included a cash flow statement in these financial statements.

Judgements and key sources of estimation uncertainty

In the application of the accounting policies, Trustees are required to make judgement, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations and legacies

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.

Investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated 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 asset’s use. Other support costs are allocated based on the spread of staff costs.

All resources expended are inclusive of irrecoverable VAT.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities 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.

Page 23

Migrant Legal Action

Notes to the Financial Statements for the Year Ended 31 December 2023

Support costs

Support costs include central functions such as governance cost, finance and information technology incurred directly in support of expenditure on the objects of the charity. They have been allocated to activity cost categories on a basis consistent with the use of resources.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 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 taxation 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.

Tangible fixed assets

Individual fixed assets costing £50.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Furniture and equipment 20% Reducing balance

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 24

Migrant Legal Action

Notes to the Financial Statements for the Year Ended 31 December 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Foreign exchange

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

The aims and use of each material restricted fund are set out in note 14 of the financial statements.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans, which are subsequently measured at amortised cost using the effective interest method, and investments which are held at fair value.

Page 25

Migrant Legal Action

Notes to the Financial Statements for the Year Ended 31 December 2023

3 Income from donations and legacies

Donations and legacies;
Grants from institutions
General donations
4
Income from other trading activities
Unrestricted
funds
£
Trading income;
Legal representation
139,557
139,557
5
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits		 Unrestricted
funds
£
-
2,494
2,494
Restricted
£
32,068
32,068
Unrestricted
funds
£
860		 Total
2023
£
-
2,494
2,494
Total
2023
£
171,625
171,625
Total
2023
£
860		 Total
2022
£
12,196
5,475
17,671
Total
2022
£
166,296
166,296
Total
2022
£
187

Page 26

Migrant Legal Action

Notes to the Financial Statements for the Year Ended 31 December 2023

6 Staff costs

The aggregate payroll costs were as follows:

The aggregate payroll costs were as follows:
Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs
Other staff costs		 2023
£
130,125
5,912
2,431
674
139,142		 2022
£
139,750
7,427
2,431
1,949
151,557

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

Case workers
Administration		 2023
No
5
1
6		 2022
No
5
1
6

No employee received emoluments of more than £60,000 during the year.

7 Taxation

The charity is a registered charity and is therefore exempt from taxation.

Page 27

Migrant Legal Action

Notes to the Financial Statements for the Year Ended 31 December 2023

8 Tangible fixed assets

Cost
At 1 January 2023
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022
9
Debtors
Trade debtors
10 Cash and cash equivalents
Cash at bank		 Furniture and
equipment
£
4,085
4,085
3,309
259
3,568
517
776
2023
£
17,583
2023
£
18,435		 Furniture and
equipment
£
4,085
4,085
3,309
259
3,568
517
776
2023
£
17,583
2023
£
18,435		 Total
£
4,085
4,085
3,309
259
3,568
517
776
2022
£
15,973
4,085
3,309
259
3,568
517
776
2023
£
17,583
2023
£
18,435
2022
£
19,260

Page 28

Migrant Legal Action

Notes to the Financial Statements for the Year Ended 31 December 2023

11 Creditors: amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
12 Funds
Unrestricted
General funds
Restricted funds
People of Southwark
Total funds
Unrestricted
General funds
Restricted funds
People of Southwark
Total funds		 Balance at 1
January 2023
£
2,379
-
2,379
Balance at 1
January 2022
£
36,516
-
36,516		 Incoming
resources
£
142,911
32,068
174,979
Incoming
resources
£
142,385
41,769
184,154		 2023
£
23,127
7,078
3,689
33,894
Resources
expended
£
(142,649)
(32,068)
(174,717)
Resources
expended
£
(176,522)
(41,769)
(218,291)		 2022
£
17,604
12,113
3,913
33,630
Balance at 31
December
2023
£
2,641
-
2,641
Balance at 31
December
2022
£
2,379
-
2,379

The specific purposes for which the funds are to be applied are as follows:

Women trafficking - Tackling matters with trafficking specifically involving with women

People of Southwark - Providing legal assistance to those within the London Borough of Southwark

Page 29

Migrant Legal Action

Notes to the Financial Statements for the Year Ended 31 December 2023

13 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets
14 Analysis of net funds
Cash at bank and in hand
Net funds
Cash at bank and in hand
Net funds		 At 1 January
2023
£
19,260
19,260
At 1 January
2022
£
29,095
29,095		 Unrestricted
funds
£
517
36,018
(33,894)
2,641
Unrestricted
funds
£
776
35,233
(33,630)
2,379
Cash flows
£
(19,260)
(19,260)
Cash flows
£
(9,835)
(9,835)		 Total funds
2023
£
517
36,018
(33,894)
2,641
Total funds
2022
£
776
35,233
(33,630)
2,379
At 31
December
2023
£
-
-
At 31
December
2022
£
19,260
19,260

Page 30

Migrant Legal Action

Notes to the Financial Statements for the Year Ended 31 December 2023

15 Expenditure on charitable activities

Note
Direct costs
Staff costs
Allocated support
costs
16
Governance costs
16
Tackling asylum
Tackling trafficking
Tackling immigration
Tackling asylum
Tackling trafficking
Tackling immigration		 Unrestricted
funds
£
4,917
107,074
28,358
2,300
142,649		 Restricted
£
-
32,068
-
-
32,068
Activity
undertaken
directly
£
28,302
23,748
64,993
117,043
Activity
undertaken
directly
£
42,000
26,708
74,226
142,934		 Total
2023
£
4,917
139,142
28,358
2,300
174,717
Activity
support costs
£
13,945
11,703
32,026
57,674
Activity
support costs
£
22,143
14,081
39,133
75,357		 Total
2022
£
21,184
151,557
43,450
2,100
218,291
2023
£
42,247
35,451
97,019
174,717
2022
£
64,143
40,789
113,359
218,291

In addition to the expenditure analysed above, there are also governance costs of £2,300 (2022 - £2,100) which relate directly to charitable activities. See note 16 for further details.

Page 31

Migrant Legal Action

Notes to the Financial Statements for the Year Ended 31 December 2023

16 Analysis of governance and support costs

Support costs allocated to charitable activities

Tackling asylum
Tackling trafficking
Tackling immigration
Tackling asylum
Tackling trafficking
Tackling immigration		 Governance
costs
£
556
467
1,277
2,300
Governance
costs
£
617
392
1,091
2,100		 Finance costs
£
144
121
332
597
Finance costs
£
239
152
421
812		 Information
technology
£
793
665
1,821
3,279
Information
technology
£
1,149
731
2,031
3,911		 Staff costs
£
6,535
5,484
15,008
27,027
Staff costs
£
8,758
5,570
15,479
29,807		 Administration
costs
£
4,326
3,631
9,934
17,891
Administration
costs
£
9,440
6,002
16,683
32,125		 Premises costs
including
depreciation
£
1,591
1,335
3,654
6,580
Premises costs
including
depreciation
£
1,940
1,234
3,428
6,602		 Total
2023
£
13,945
11,703
32,026
57,674
Total
2022
£
22,143
14,081
39,133
75,357

The support costs have been allocated in proportion to the staff costs incurred on each activity. The trustees are of the opinion that this represents a fair use of resources.

Page 32

Migrant Legal Action

Notes to the Financial Statements for the Year Ended 31 December 2023

Governance costs

Accountancy fees
Independent examiner's fee		 Unrestricted
funds
£
2,000
300
2,300		 Total
2023
£
2,000
300
2,300		 Total
2022
£
1,800
300
2,100

17 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

18 Net incoming/outgoing resources

Net incoming/(outgoing) resources for the year include:

Depreciation of fixed assets 2023
£
258		 2022
£
258

Page 33