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← Pro Bono Community

2023-08-31-accounts

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Charity registration number 1153220

PRO BONO COMMUNITY

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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PRO BONO COMMUNITY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Oliver Hyams (Chair, resigned on 19 April 2023)
Livia Velicu (Co-Vice Chair and Secretary to 19 April 2023,
appointed Chair on 19 April 2023)
Dinah Crystal OBE (Co-Vice Chair, resigned on 19 January 2023)
Omar Qadir (Treasurer)
David Dowling (Resigned on 19 April 2023)
The Honourable Mr Justice Adam Johnson
Daniel Laking
Stephanie Cunningham (Resigned on 19 April 2023)
Claire Marshall (Appointed on 19 April 2023)
Harriet Hall (Appointed on 12 July 2023)
Steve Levett (Appointed Vice Chair on 12 July 2023)
Senior Management: Bill Skirrow – Executive Director
Charity number 1153220
Registered office 93 Tabernacle Street
London
EC2A 4BA
Correspondence Address: 93 Tabernacle Street
London
EC2A 4BA
Independent examiner David Terry FCA
Ramon Lee Ltd
Chartered Accountants
93 Tabernacle Street
London
EC2A 4BA
Bankers Triodos Bank
Deanery Road
Bristol
BS1 5AS

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PRO BONO COMMUNITY

CONTENTS

Page
Trustees' report 1 - 9
Independent examiner's report 10
Statement of financial activities 11
Balance sheet 12
Notes to the financial statements 13 - 21

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PRO BONO COMMUNITY

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The trustees present their annual report and financial statements for the year ended 31 August 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution, the Charities Act 2011 and "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)" (effective 1 January 2019).

Objectives and activities

Purposes of the charity

As set out in its constitution, Pro Bono Community’s vision is to improve access to justice through legal education, for the public benefit. Pro Bono Community’s objects are:

The objects of the CIO are for the public benefit:

Aims and Objectives

Pro Bono Community (‘PBC’) is a registered charity which provides specialist training to equip lawyers, trainees and law students with the skills and expertise to become effective volunteers, before placing them in advice agencies and clinics. By training volunteers and providing them with volunteering placements, we aim to increase the amount – and improve the quality – of free legal advice, in the areas of law most affecting those in need.

We have developed rigorous, specialised training courses, which are delivered by experts in the relevant field. These courses, some of which are integrated into university undergraduate and postgraduate degree programmes, aim to improve the quality of education in the advice sector in general.

We also arrange placements for the volunteers in advice agencies, and seek to help those organisations overcome the constraints on their capacity to use more volunteers effectively. Attendees of PBC’s training gain valuable skills and experience in areas of the law they are unlikely to have come across either in law school or practice. We hope that our training will serve to embed pro bono culture in the hearts and minds of young lawyers and that many of them will go on to become champions for volunteering and pro bono work in their future careers. We are increasingly making use of technology in innovative ways to achieve our aims as well as looking at ways in which the charity can become more directly involved in the delivery of advice.

The charity’s key goals over the past year were to:

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PRO BONO COMMUNITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Main Activities

Overview: PBC’s ninth full year of operations took place against the backdrop of a growing cost-of-living crisis affecting both wider society and the charity itself as well as placing increased demand on the advice sector. PBC had already moved all its activities online in 2020 and, in the year to August 31st 2023, most of our training continued to be delivered online and the majority of volunteering placements we arranged were remote although, by the end of the year, the number of in-person placements was rising.

This was the first year since 2015 in which PBC was unable to secure a grant to run training and volunteer programmes for university students without charging universities or their students, although this was partly compensated for by an increase in the number of students trained and placed through directly-commissioned programmes. We did manage to secure a five-year grant to run our core training and placement programmes from City Bridge Trust but this commenced in June 2023 so its impact largely falls outside the remit of this report.

PBC continued to deliver good outcomes through the Advice Connect digital advice project run in partnership with Citizens Advice Haringey and also commenced a new project in September 2022 which involved PBC delivering advice directly through its own advice clinic. In the year from September 2022, PBC trained cohorts of students from law firm Freshfields Bruckhaus Deringer and universities including City University, LSE, University College London, King’s College London, the University of Law, Goldsmiths, BPP, SOAS and Royal Holloway. PBC also trained a cohort of lawyers from leading law firms in a project organised by advice agency Community Links and funded by law firm Clifford Chance. The income derived from sales to law firms and universities was supplemented by grant income from the National Lottery Community Fund, Trust for London and City Bridge Trust.

Training: PBC has developed modular training courses in a variety of areas of social welfare law. PBC continued to refine its training by tailoring it to the particular needs of clients and advice agencies and offering flexibility in terms of content, format, duration, schedule and venue. The training comprises a general introduction to legal advice and the practical skills involved in volunteering before going on to focus on specialist legal advice topics including welfare benefits, housing and employment law. In 2020, PBC had put considerable effort into making its existing training content suitable for digital learning and this investment continued to pay off in 2022-23 with most of our training being delivered online. PBC also sought to expand its network of freelance trainers.

Volunteers: 184 people attended PBC training programmes during the year. The majority of these volunteers went on to undertake volunteering placements at Law Centres and advice agencies and play their part in addressing the need for free legal help, a demand which was exacerbated by ongoing fallout from the pandemic and the impact of the energy and cost-of-living crises, particularly in certain areas of social welfare law. In all cases, PBC facilitated these volunteering placements through the network of Law Centres and advice agencies with which it has developed relationships. Most advice agencies had developed systems to support remote volunteering placements by September 2022 and the majority continued to involve volunteers working remotely. However, by summer 2023 it was clear that advice agencies were beginning to return to office-based or hybrid working and that, going forward, the balance was likely to shift back towards in-person/hybrid placements. Nevertheless, we anticipate that there will be an ongoing need for remote volunteer placements, particularly outside London.

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PRO BONO COMMUNITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Grant Projects: PBC received a grant of £64,000 from the National Lottery Community Fund for the second year of a two-year digital advice project called “Advice Connect” which was run in partnership with Citizens Advice Haringey and commenced in October 2021. The project experienced some challenges at the beginning of the year as a result of staff turnover at CA Haringey and the Fund gave PBC permission to extend the project to the end of 2023. PBC also obtained a grant of £45,000 per year from Trust for London to help support a two-year project delivering remote advice to clients requiring assistance with welfare benefits appeals. This project also experienced some early challenges when a key member of staff left shortly after launching the clinic. But the project was stabilised in early 2023 with the recruitment of two new supervisors. In June 2023, City Bridge Trust awarded PBC a grant of £36,000 per year to run a student volunteer training and placement programme that it had previously funded from 2016-21. Although the first cohort on this programme was trained and placed in the summer of 2023, the impact of this and subsequent cohorts will be delivered in 2023-24 .

Accredited and Extra-Curricular Volunteer Training and Placement Programmes: PBC was re-commissioned for the sixth consecutive year by City University to deliver two credit-bearing Pro Bono Training modules as options within the University’s undergraduate and postgraduate law degree programmes. The LLB module focused on legal advice and welfare benefits law whilst the LLM option featured housing and employment law as its specialist content. PBC delivered several other extra-curricular volunteer training and placement programmes which were independently-funded by LSE, UCL, SOAS and Goldsmiths as well as law firm Freshfields.

Achievements and performance

Overview

During the year, 184 students attended PBC training programmes across 12 cohorts, the great majority of whom went on to undertake volunteering placements. Our online volunteering portal shows that these volunteers undertook more than 4,000 hours of volunteering during which time they assisted 3,917 people in need of legal advice and assistance. These figures exclude a substantial number of volunteers who undertook placements but failed to update their volunteer logs.

During the course of the year, PBC’s volunteers were placed at the following Law Centres and advice agencies: Age UK Islington, Age UK Lambeth, Age UK Richmond, Arachne, Citizens Advice Brent, Citizens Advice Doncaster, Citizens Advice Enfield, Citizens Advice Haringey, Citizens Advice Harrow, Citizens Advice Kensington & Chelsea, Citizens Advice Peterborough, Citizens Advice Redbridge, Citizens Advice SORT, Citizens Advice Sutton, Citizens Advice Wandsworth, Citizens Advice West Sussex, Disability Law Service, East End CAB, Fair Money Advice, Justice For Tenants, Nucleus, Southwark Pensioners, Sufra, Tower Hamlets Law Centre, Toynbee Hall and Wiltshire Law Centre.

The volunteers undertook a wide range of tasks depending on their skills, confidence, experience and the needs of the Law Centre or advice agency at which they were volunteering. The typical activities of volunteers involved triaging and exploring issues with clients, discussing the cases with supervisors, drafting advice and then delivering that advice to client. During the year, volunteers were heavily involved in assisting clients with financial problems arising from the ongoing effects of the pandemic and the growing impact of the energy and cost-of-living crises. Tasks undertaken by volunteers in this respect included: assisting clients to complete benefits and other application forms such as Universal Credit applications, ESA50 forms and PIP applications; appealing PIP decisions, undertaking research and drafting appeal documents; attending appeals with clients; assisting clients to maximise income; interviewing and assisting clients remotely using video conferencing platforms, telephone and email – with many volunteers working on advice lines focusing on employment queries, benefits and other debt-related issues.

Feedback from clients who received assistance from PBC volunteers included the following:

Mr P is a young man with a diagnosis of bipolar disorder, depression, hypomania and anxiety. He was referred to PBC after he made an unsuccessful claim for Personal Independence Payment (PIP), and again failed at mandatory reconsideration stage. PBC volunteer Zoe took on his case, meeting with him extensively to discuss the case, collect further evidence and complete a written submission. Upon submitting these, Mr P soon received a letter from the DWP informing him that they would revise their decision in his favour, lapsing the appeal. Mr P went from nil award to an award of the enhanced rate of the daily living component of PIP and did not have to attend a tribunal hearing, avoiding a protracted waiting period and associated stress.

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PRO BONO COMMUNITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

He wrote to thank Zoe:

“Thank you so much for your help! I really couldn’t have got this result without you!”

Mr and Mrs H are a pensioner couple who were in receipt of Pension Credit (PC) and Attendance Allowance (AA). Mrs H had a serious eye problem which required surgery but had been told there was a very long wait for this on the NHS. They went to Latvia for the surgery which was complex and protracted. Due to their absence from the UK their PC and AA were stopped and, although they explained the reasons for the absence, they could not get their benefits reinstated. They were referred to the clinic by a local Citizens Advice office and after a long examination of the facts and timeline of events we corresponded with the DWP and benefits were fully restored with arrears of AA paid.

Mr H was extremely grateful at the result especially as he had been trying to resolve the problem by himself for so long:

“Thanks for your help and support, we have achieved the first and significant success. Today I received a bank statement stating that the Attendance Allowance (AA) benefit that was withheld has been paid in full for all seven months and restored. And you, Ms O’Reilly, have successfully developed and achieved a complete victory in solving the important issue of helping my wife. Nothing would have been possible without your great and comprehensive support…your work is worthy of gratitude and praise.”

Core Student Volunteer Training and Placement Scheme

From 2016-2022, the charity was able to secure grants initially from City Bridge Trust and latterly from Therium Access to run training and volunteer placement programmes for university students without charging universities or their students. In addition to generating a minumum of 80 student volunteers each year who went on to undertake volunteering placements, build capacity at advice agencies and assist people in need of legal help, these core training programmes enabled the charity to gain sufficient confidence from universities in these schemes for them to consider commissioning them independently. Whilst we were unable to secure a similar grant for 2022-23 we did manage to gain a new five-year grant for this purpose from City Bridge Trust which commenced in June 2023 and thus its impact falls outside the remit of this report.

Accredited and Extra-Curricular Volunteer Training and Placement Programmes

One of PBC’s strategic objectives is to integrate our training into mainstream legal education, thus increasing the level of support advice agencies receive from well-trained and highly-motivated student volunteers, whilst also developing a positive attitude towards pro bono work in young lawyers and making social welfare law part of the curriculum.

The charity took an important step towards achieving this objective when it formed a partnership with City University whereby PBC delivered a credit-bearing, pro bono training module to City University’s undergraduate law students from October 2017. In 2018-19, the university commissioned a second credit-bearing module for postgraduate students doing the LLM/BPTC. Both these modules have been re-commissioned every year since. PBC was also commissioned to deliver extra-curricular training and placement programmes in 2022-23 for LSE, UCL, SOAS, Goldsmiths and law firm Freshfields. Separately, advice agency Community Links commissioned from PBC a housing law training programme for City lawyers which was funded by law firm Clifford Chance.

Expand PBC’s Activities to New Regions

In previous years, PBC has struggled to develop sustainable relationships with advice agencies outside London because these were dependent on participating universities and law firms being located sufficiently nearby for volunteers to travel to the workplace. Following the pandemic and the widespread introduction of remote working, PBC has generated relationships with numerous advice agencies in towns and regions ranging from Greater Manchester and Donaster to Peterborough, Wiltshire and West Sussex. As a result, at least 11% of clients receiving assistance from PBC volunteers lived outside London.

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PRO BONO COMMUNITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Developing Legal Advice Projects

PBC is committed to finding ways to mitigate the constraints on the use of volunteers by advice agencies as a result of limited resources for supervision. Furthermore, we have sought to develop grant applications for projects which address the needs of people whose lives have been adversely affected by Covid-19 and its consequences.

In the summer of 2021, we successfully applied for grants to undertake digital advice projects from the National Lottery Community Fund (NLCF) and Trust for London (TfL). Both grant applications were successful and designed to provide end-to-end digital advice in which all participants – trainers, supervisors, administrators, volunteers and clients – are located remotely.

The NLCF “Advice Connect” project is run in partnership with Citizens Advice Haringey and commenced in October 2021 for two years. It is targeted at people living in the private rented sector in Haringey experiencing difficulties with housing, employment and debt, a group that has been disproportionately affected by both the pandemic and the subsequent cost-of-living crisis. Following some early setbacks, mainly relating to staff turnover at Citizens Advice Haringey, the project was extended by three months to end in December 2023. By October 2023, Advice Connect had exceeded its output targets by delivering advice to 1008 people with 1934 separate issues, the majority of which were related to housing matters and associated problems particularly rent and eviction. The advice was delivered entirely remotely and digitally. 70% of Advice Connect’s clients were aged under 40, 51% were from a non-white background, 60% of clients were female and 55% identified themselves as disabled or having a long-term physical or mental health condition. The impact of advice can take time to filter through the system so financial outcomes are ongoing but, at the time of writing, the project had recorded outcomes for clients in terms of income gains, reimbursements and loans amounting to more than £835,000. We expect these figures to increase further over the coming months as landlords and public authorities respond to the clients who were assisted through Advice Connect.

The Trust for London grant provided some funding towards a digital advice clinic run by Pro Bono Community itself which specialised in welfare benefits appeals and commenced in September 2022. The project underwent early challenges as a result of key staff leaving prematurely and the clinic did not begin operating on a stable basis until spring 2023 when two new supervisors were recruited. Despite these setbacks, the clinic had resolved 33 cases by the end of August 2023 with financial gains to clients of £156,000 as a result of the clinic supporting them through successful welfare benefits appeals. It has only been able to recruit part-time supervisors with the available funding and the trustees of Pro Bono Community decided to pause the clinic at the end of August 2023 and only support existing clients whilst the charity sought the additional funding required to supplement the existing grant and make the clinic sustainable.

Training Programmes

All PBC’s training prior to March 2020 had been delivered face-to-face so the charity’s decision to move all its training online for the foreseeable future represented a major challenge. We trialled various tools and settled on Zoom as the most effective and reliable platform for digital training and adapted training materials to make them more suitable for online delivery. The majority of the training we provided in the year from September 2022 was live and remote. Although it is difficult to replicate the intimacy of classroom teaching, we are confident that our online training remains interactive and engaging - feedback from attendees has continued to be overwhelmingly positive and comparable with that received in previous years for classroom teaching.

Our volunteers

Although we train and place volunteers in other organisations, this year the charity did not itself use volunteers.

Public benefit statement

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PD2)’. The achievements and activities above demonstrate the public benefit arising through PBC’s activities.

Financial review

The financial results for the year are set out in the Statements of Financial Activities on page 11. The charity recorded an overall surplus of £16,211 (2022 – net deficit of £2,461). The financial position at the year revealed by the Balance Sheet on page 12 shows net current assets or working capital of £78,815 (2022 – £62,604).

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PRO BONO COMMUNITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Principal funding sources

PBC aims to develop a diverse funding base for its activities. PBC continues to attract funding for its various projects from a wide range of other sources – other charities, private companies (such as law firms) and the charity’s own income generating activities (having regard to HMRC and Charity Commission guidance relating to “Charities and Trading”).

Investment powers and policy

The trustees have considered the most appropriate policy for investing surplus funds and have found that, at this stage, bank deposit accounts provide the appropriate combination of security, accessibility and income growth.

Reserves policy

As at 31st August 2023 accounts showed reserves of £78,815 (2022 - £62,604), of which £30,233 (2022 - £12,595) was restricted. The unrestricted funds not designated or invested in tangible fixed assets held by the charity are £48,582 (2022 - £50,009).

The trustees seek to ensure that the level of reserves are appropriate for the charity, balancing the need to keep funds aside to mitigate risk against the need to ensure that funds can spent in furtherance of the charity’s aims.

Having regard to the particular circumstances of any ongoing effects of the Covid-19 pandemic and the cost-ofliving crisis, Pro Bono Community’s trustees recognised that charities face a variety of risks and that it is important that there are sufficient free reserves to tide an organisation over in difficult financial circumstances or, in the worst case, to allow an organisation to wind up in an orderly manner, meeting its obligations to staff and service users

The principal risk to Pro Bono Community is an unexpected shortfall in either sales or grant income and the trustees have agreed to keep a certain level of financial reserves to ensure that main operations can continue for a period in the event of severe financial difficulties.

The main concerns of the board are to ensure:

The trustees met regularly during 2022-23 to monitor the ongoing impact of the pandemic and cost-of-living crises on the charity’s finances and agreed to maintain a level of unrestricted reserves which would keep the charity running for at least six months and up a to a year.

The approach to reserves is under regular review by the trustees - the trustees have regard to the Charity Commission’s guidance “How to set a reserves policy for your charity”.

Plans for future periods

PBC’s principal strategic objective is to address the urgent and growing need for increased access to high-quality pro bono advice from well-trained and highly-motivated volunteers at Law Centres and other advice agencies. This mission is even more urgent in the light of the coronavirus pandemic and the subsequent economic effects of the energy and cost-of-living crises, causing people who have never needed advice before to seek assistance with problems related to employment, housing, welfare benefits, debt and other areas of social welfare law.

The charity is also focused on ensuring the charity remains active, effective and resilient in the face of the challenges presented by the pandemic and cost-of-living crisis. In that context, our aim is to grow the outputs of the charity by building on our income-generating activities and seeking new sources of grant funding.

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PRO BONO COMMUNITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Additionally, the range of objectives during 2023-24 and beyond include, but are not limited to, the following:

Structure, governance and management

Governing document

The organisation is a charitable incorporated organisation (CIO) registered as a charity with the Charity Commission on 2 August 2013 (Charity no. 1153220). The charity is established under a written constitution that specifies the objects and powers of the charity and is also governed under this constitution.

Recruitment and appointment of Trustees

New trustees of PBC are appointed by the board of trustees in accordance with clause 9 of PBC’s constitution.

PBC recruits and appoints trustees in accordance with the following process:

Trustee induction and training

The trustees maintain a good working knowledge of charity governance and best practice through reading of charity press articles and guidance produced by the Charity Commission and other Government and voluntary organisation advisory websites.

New trustees are given copies of previous minutes as appropriate and have an induction conversation with the Chair. PBC reviews information provided to new trustees to ensure that they have a good understanding of the organisation. PBC also gives new trustees access to a shared drive including operational information relevant to the organisation (e.g., policies and procedures).

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PRO BONO COMMUNITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Organisational Structure

The board of trustees takes strategic and major financial decisions. The trustees of PBC have delegated day-to-day management of PBC to executive director Bill Skirrow who, in turn, supervises the work of the operations manager and/or training and volunteer coordinator as well as any external suppliers and freelance assistance such as trainers and consultants. In May 2022, PBC had appointed a full-time operations manager with responsibility for the operational activities of the charity. This employee left the charity in March 2023 and a decision was taken to leave this role unfilled for the time being but recruit a full-time training & volunteer coordinator instead. The executive director works with the trustees to deliver the objectives set out in PBC’s business plan and in the terms and conditions of its grants. The executive director and operations manager supervise and manage the charity’s relationships with partner organisations including law firms, course providers, law centres, advice agencies, suppliers and other third sector organisations.

Risk Management

The trustees have considered the major risks to which PBC is exposed and have reviewed those risks and established systems and procedures to manage them.

PBC’s trustees consider that the principal risk to PBC is an unexpected shortfall in either sales or grant income. The charity mitigates this risk in the following ways:

The trustees also consider ensuring that funds are properly managed and accounted for is a major risk and the measures put in place to manage this risk include the Board of Trustees receiving regular financial reports from the Executive Director who takes routine day-to-day financial decisions. The Chair, Vice-Chair, Treasurer, Executive Director and other trustees as may be approved by the board from time to time have access to the charity’s bank account and monitor payments in and out of the account on a regular basis. No payments of more than £500 may be made without the authorisation of two of the designated account operators. The charity’s payroll is handled by accountancy firm Ramon Lee.

Related parties

PBC is one of several organisations that worked from the National Pro Bono Centre in Chancery Lane until June 2020. These organisations all operate within the field of pro bono legal assistance but there is no constitutional relationship between PBC and any other organisation. PBC has established informal relationships with organisations in the sector including The London Legal Support Trust, Advice Services Alliance, Advocate, Advice UK, Law Centres Network and LawWorks. PBC has developed a relationship with a number of universities to embed the charity’s training and placement scheme in either their undergraduate and postgraduate degree courses or extra-curricular activities.

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PRO BONO COMMUNITY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Statement of Trustees' responsibilities

The trustees 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).

The law applicable to charities in England and Wales 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 incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity 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 charity and the financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

The Trustees' report was approved by the Board of Trustees and signed on its behalf:

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Livia Velicu

(Chair - appointed in April 2023)

25 June 2024

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PRO BONO COMMUNITY

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PRO BONO COMMUNITY

I report to the trustees on my examination of the financial statements of Pro Bono Community (the charity) for the year ended 31 August 2023.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 that in any material respect:

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 financial statements to be reached.

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David Terry FCA

Ramon Lee Ltd Chartered Accountants 93 Tabernacle Street London EC2A 4BA

Dated: 25 June 2024

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PRO BONO COMMUNITY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2023

Unrestricted
Restricted
funds
funds
Notes
£
£
Income from:
Charitable activities
3
57,250
118,007
Investments
4
399
-
Total income
57,649
118,007
Expenditure on:
Raising funds
5
16,405
-
Charitable activities
6
45,595
97,445
Total expenditure
62,000
97,445
Net (outgoing)/incoming resources before transfers
(4,351)
20,562
Gross transfers between funds
2,924
(2,924)
Net (expenditure)/income for the year/
Net movement in funds
(1,427)
17,638
Fund balances at 1 September 2022
50,009
12,595
Fund balances at 31 August 2023
48,582
30,233		 Total
2023
£
175,257
399
175,656
16,405
143,040
159,445
16,211
-
16,211
62,604
78,815		 Total
2022
£
152,153
30
152,183
23,082
131,562
154,644
(2,461)
-
(2,461)
65,065
62,604

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The notes on pages 13 to 21 form part of these financial statements.

DocuSign Envelope ID: 846DF401-16E0-4CD7-AA1C-36D915F9E5F8DocuSign Envelope ID: 7AED126B-261B-43D8-BA05-18B90E7B1D97

PRO BONO COMMUNITY

BALANCE SHEET

AS AT 31 AUGUST 2023

Notes
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Income funds
Restricted funds
13
Unrestricted funds		 2023
£
1,749
85,990
87,739
(8,924)		 2022
£
£
1,578
73,026
74,604
(12,000)
78,815
30,233
48,582
78,815		 £
62,604
12,595
50,009
62,604

The financial statements were approved by the Trustees on 25 June 2024 and were signed behalf by:

Livia Velicu Omar Qadir
(Chair - appointed in April 2023) Treasurer

DocuSign Envelope ID: 846DF401-16E0-4CD7-AA1C-36D915F9E5F8DocuSign Envelope ID: 7AED126B-261B-43D8-BA05-18B90E7B1D97

PRO BONO COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's constitution, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

The Charity’s Accounts shows Net surplus of £16,211 (2022 – Net deficit £2,461) for the year and free reserves of £48,582 (2022 - £50,009). The trustees are of the view that these results have secured the immediate future of the Charity for the next 12 months and on this basis the Charity is a going concern.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

All income is included in the statement of financial activities when the Charity is legally entitled to it, receipt is probable and the amount can be measured with sufficient reliability.

Grant income

Grants are credited to the statement of financial activities when the Charity is entitled to the funds. Income is only deferred where there are time constraints imposed by the donor or if the funding is performance related.

Where entitlement to grants receivable is dependent upon fulfilment of conditions within the charity’s control, the income is recognised when there is sufficient evidence that conditions will be met.

Grants supporting the core activities of the Charity and with no specific restrictions placed upon their use are included within donations and legacies. Grants that have specific restrictions placed upon their use are included within income from charitable activities.

Capital grants for the purchase of fixed assets are credited to restricted incoming resources on the earlier date of when they are received or receivable. Depreciation on the related fixed assets is charged against the restricted fund.

DocuSign Envelope ID: 846DF401-16E0-4CD7-AA1C-36D915F9E5F8DocuSign Envelope ID: 7AED126B-261B-43D8-BA05-18B90E7B1D97

PRO BONO COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

(Continued)

Donations and legacies

Donations are recognised in the period in which they are received. Legacy income is recognised when the charity’s entitlement is judged to be probable and where the amount can be reliably measured.

Contract income

Income from charitable activities include income recognised as earned (as the related goods and services are provided) under contract.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Allocation of support costs

Support costs comprise those costs which are incurred directly in support of expenditure on the objects of the charity and include governance cost, finance, and office costs. Governance costs are those costs incurred in connection with the compliance with constitutional and statutory requirements of the charity These costs have been allocated between cost of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated are set out in note 6.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

1.8 Taxation

The Charity is a registered charity and, therefore, is not liable for Income Tax or Corporation Tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

DocuSign Envelope ID: 846DF401-16E0-4CD7-AA1C-36D915F9E5F8DocuSign Envelope ID: 7AED126B-261B-43D8-BA05-18B90E7B1D97

PRO BONO COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

(Continued)

1.9 Creditors and Provisions

Creditors and Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

1.10 Volunteers

The value of the services provided by volunteers is not incorporated into these financial statements. Further details of their contribution is provided in the trustees’ report.

1.11 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.

1.12 Donated goods and services

Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the item is probable and that economic benefit can be measured reliably.

Donated professional services and facilities are included in income at the estimated value of the gift to the charity when received, based on the amount that the charity would have been prepared to pay for these services or facilities had it been required to purchase them, with a corresponding entry in the appropriate expenditure heading for the same amount. Donated fixed assets are similarly taken to income at the value to the charity with the other entry being capitalised in fixed assets.

1.13 Pension

The Charity operates a defined contribution pension scheme on behalf of its employees. Contributions are charged to the Statement of Financial Activities in the period in which they are payable. The assets of the scheme are held separately from those of the charity in an independently administered fund.

1.14 Cash flow statement

The charitable incorporated organisation qualifies as a small charity and advantage has been taken of the exemption provided by SORP (FRS 102) as amended by Bulletin 2, not to prepare a cash flow statement.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

DocuSign Envelope ID: 846DF401-16E0-4CD7-AA1C-36D915F9E5F8DocuSign Envelope ID: 7AED126B-261B-43D8-BA05-18B90E7B1D97

PRO BONO COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

3 Charitable activities

Legal advice
training
£
National Lottery Community Fund
63,985
Therium Access Limited
-
Fees for Volunteer Training & Programmes
57,250
City Bridge Trust
9,022
Trust for London Grant
45,000
175,257
Analysis by fund
Unrestricted funds
57,250
Restricted funds
118,007
175,257
For the year ended 31 August 2022
Unrestricted funds
51,750
Restricted funds
100,403
152,153
Investments
Unrestricted
funds
£
Interest Income
399
399
For the year ended 31 August 2022
30		 Total
2023
£
63,985
-
57,250
9,022
45,000
175,257
57,250
118,007
175,257
Total
2023
£
399
399		 Total
2022
£
63,985
36,418
51,750
-
-
152,153
51,750
100,403
152,153
51,750
100,403
152,153
Total
2022
£
30
30
30

4 Investments

DocuSign Envelope ID: 846DF401-16E0-4CD7-AA1C-36D915F9E5F8DocuSign Envelope ID: 7AED126B-261B-43D8-BA05-18B90E7B1D97

PRO BONO COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

5 Raising funds

Unrestricted
funds
£
Staff costs
9,995
Share of Support costs (See note 9)
5,236
Share of Governance costs (See note 9)
1,174
16,405
For the year ended 31 August 2022
Fundraising and publicity
23,082
23,082		 Total
2023
£
9,995
5,236
1,174
16,405		 Total
2022
£
17,085
4,683
1,314
23,082
23,082
23,082

6 Charitable activities

Legal advice
training
£
Staff costs
50,337
Other direct costs
48,538
98,875
Grant to Institution (see note 7)
32,770
Share of support costs (see note 8)
9,308
Share of governance costs (see note 8)
2,087
143,040
Analysis by fund
Unrestricted funds
45,595
Restricted funds
97,445
143,040
For the year ended 31 August 2022
Unrestricted funds
43,754
Restricted funds
87,808
131,562		 Total
2023
£
50,337
48,538
98,875
32,770
9,308
2,087
143,040
45,595
97,445
143,040		 Total
2022
£
42,501
35,734
78,235
30,541
17,793
4,993
131,562
43,754
87,808
131,562
43,754
87,808
131,562

DocuSign Envelope ID: 846DF401-16E0-4CD7-AA1C-36D915F9E5F8DocuSign Envelope ID: 7AED126B-261B-43D8-BA05-18B90E7B1D97

PRO BONO COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

7 Grants to Institution

Citizens Advice Haringey Total
2023
£
32,770
32,770		 Total
2022
£
30,541
30,541

8 Support costs

The Charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Governance costs and other support costs are apportioned separately between charity’s key activity undertaken (see note 5) in the year. All the general support and governance costs have been apportioned to the various charitable activities on the basis of staff time allocated to each activity.

Support Governance
costs
costs
£
£
Staff costs
9,995
-
Communication and IT costs
2,354
-
Insurance
886
-
Staff recruitment expense
499
-
Miscellaneous expenses
810
-
Legal and professional fees
-
1,031
Independent examination fees
-
2,230
14,544
3,261
Analysed between
Fundraising
5,236
1,174
Charitable activities
9,308
2,087
14,544
3,261
9
Net movement in funds
Independent Examination Fees		 Total
2023
£
9,995
2,354
886
499
810
1,031
2,230
17,805
6,410
11,395
17,805
2023
£
2,230
2,230		 Total
2022
£
17,085
2,909
715
1,404
363
4,543
1,764
28,783
5,997
22,786
28,783
2022
£
1,764
1,764

DocuSign Envelope ID: 846DF401-16E0-4CD7-AA1C-36D915F9E5F8DocuSign Envelope ID: 7AED126B-261B-43D8-BA05-18B90E7B1D97

PRO BONO COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

10 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
Direct charitable work 1.00 1.00
Raising funds 0.25 0.25
Office and administration 0.25 0.25
Total 1.50 1.50
Employment costs 2023 2022
£ £
Wages and salaries 62,457 70,710
Social security costs 5,083 2,585
Pension costs 2,788 3,376
70,327 76,671

There were no employees whose annual remuneration was more than £60,000.

11
Debtors
Amounts falling due within one year:
Other debtors
Prepayments		 2023
£
596
1,153
1,749		 2022
£
596
982
1,578

12 Creditors: amounts falling due within one year

Taxation and social security
Pension
Accruals		 2023
£
869
189
7,866
8,924		 2022
£
1,536
483
9,981
12,000

DocuSign Envelope ID: 846DF401-16E0-4CD7-AA1C-36D915F9E5F8DocuSign Envelope ID: 7AED126B-261B-43D8-BA05-18B90E7B1D97

PRO BONO COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

13 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds
Incoming
resources
Resources
expended
Balance at
1 September
2022
r
£
£
£
National Lottery Community Fund
63,985
(54,314)
9,671
Therium Access Limited
36,418
(33,494)
2,924
City Bridge Trust
-
-
-
TFL Grant
-
-
-
100,403
(87,808)
12,595		 Movement in funds
Incoming
esources
Resources
expended
£
£
63,985
(56,412)
-
-
9,022
(8,746)
45,000
(32,287)
118,007
(97,445)		 Transfers
Balance at
31 August
2023
£
£
-
17,244
(2,924)
-
-
276
-
12,713
(2,924)
30,233		 Transfers
Balance at
31 August
2023
£
£
-
17,244
(2,924)
-
-
276
-
12,713
(2,924)
30,233
30,233

City Bridge Trust: Grant towards a part-time salary, training costs and overheads to train law students to volunteer in community advice agencies.

. National Lottery Community Fund: Grant for funding a project run in collaboration with Citizens Advice Haringey delivering housing law and other advice to people in Haringey

Trust for London Grant - towards the cost of developing and running a remote clinic providing free specialist social security legal advice to clients requiring casework and representation for appeals to the First Tier and Upper Tribunal.

DocuSign Envelope ID: 846DF401-16E0-4CD7-AA1C-36D915F9E5F8DocuSign Envelope ID: 7AED126B-261B-43D8-BA05-18B90E7B1D97

PRO BONO COMMUNITY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

14
Analysis of net assets between funds
Unrestricted
Restricted
funds
funds
£
£
Fund balances at 31
August 2023 are
represented by:
Current
assets/(liabilities)
48,582
30,233
48,582
30,233		 Total
Unrestricted
Restricted
2023
funds
funds
£
£
£
78,815
50,009
12,595
78,815
50,009
12,595		 Total
2022
£
62,604
62,604

15 Pension Costs

The pension cost charge represents contributions payable by the charity to the fund and amounted to £2,788 (2022 - £3,376). Contributions totaling £189 at the year end and are included in creditors.

16 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).