JUSTICE COLLABORATIONS
ANNUAL REPORT & ACCOUNTS
YEAR ENDED 30[TH ] JUNE 2021
Charity number: 1187441 Company number: 12328192
Justice Collaborations – Annual Report and Accounts
| CONTENTS | PAGE |
|---|---|
| Details | 1 |
| Report of the Trustees | |
| Constitution, Object and Public Benefit | 2 |
| Strategic objectives and achievements to date | 2 |
| Plans for the future | 4 |
| Financial Review | 4 |
| Statement of Trustees’ Responsibilities | 5 |
| Risk Management | 6 |
| Governance | 7 |
| Trustees and Key Management | 9 |
| Independent Auditor’s Report to the Trustees | 11 |
| Statement of Financial Activities | 15 |
| Balance Sheet | 16 |
| Statement of Cash Flows | 17 |
| Notes to the Accounts | 18 |
Justice Collaborations – Annual Report and Accounts 2021
DETAILS
PRINCIPAL OFFICE
Suite 2, Ground Floor River House Broadford Park Shalford Guildford Surrey GU4 8EP
CHARITY REGISTRATION NUMBER
1187441
COMPANY REGISTRATION NUMBER 12328192
PRINCIPAL PROFESSIONAL ADVISERS
AUDITOR
RSM UK Audit LLP Davidson House Forbury Square Reading RG1 3EU
BANKER
National Westminster Bank plc 3rd Floor Cavell House 2A Charing Cross Road London WC2H ONN
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Justice Collaborations – Annual Report and Accounts 2021
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 JUNE 2021
Constitution
Justice Collaborations is a company limited by guarantee (incorporated in England and Wales on 22 November 2019) and also a charity registered in England and Wales (registered on 17 January 2020).
Justice Collaborations is a wholly owned subsidiary of The Legal Education Foundation (charity number: 271297).
Objects
The objects of the Charity are, for the public benefit:
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To promote the advancement of legal education, the study of law in all its branches and the sound administration of law;
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To relieve poverty and other charitable need and to promote social inclusion by working with people who are socially excluded or who face discrimination on the grounds of sex, race, disability, ethnic origin, religion, belief, creed, sexual orientation or gender reassignment, in particular but not exclusively by the provision of advice, counsel, assistance and representation to those who could not otherwise obtain such support; and
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To advance any other purposes recognised as charitable in England & Wales for the time being.
Public Benefit
The trustees confirm that they have referred to the Charity Commission’s guidance on Public Benefit when considering the charity’s aims and objectives and in planning future activities. Details of how the charity will meet its public benefit obligations can be seen in the following section of this report.
Strategic objectives and achievements to date
Justice Collaborations was formed in 2019 as a result of discussions between The Legal Education Foundation and a number of independent funders in the UK. The initial work of Justice Collaborations is the Justice Together Initiative which has a 10-year strategy.
Our vision is that people who use the immigration system can access justice fairly and equally, so that they can get on with their lives.
Our mission is to build a community of people and organisations with diverse backgrounds, strengths, and experience to transform access to justice in the UK immigration system. Through grant-making and collaboration, we will connect lived experience, front-line advice and influencing strategies to create lasting change.
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Justice Collaborations – Annual Report and Accounts 2021
We will build a community bringing together lived and learned experience of the immigration system, frontline evidence and influencing strategies to work towards the following goals:
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A fair, timely and accessible immigration system.
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A more sustainably resourced immigration advice and legal system.
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A more accessible, sustainable, collaborative and coordinated sector to strengthen and increase access to immigration advice and legal provision.
By the end of June 2021, grant awards of over £9 million had been committed to the initiative by 12 organisations and others are considering joining either by directly funding the initiative or by providing aligned funding.
Contributing funders now include: Paul Hamlyn Foundation, AB Charitable Trust, Baring Foundation, Barrow Cadbury Trust, Comic Relief, Joseph Rowntree Charitable Trust, Oak Foundation, Unbound Philanthropy, Trust for London, Tudor Trust, Metropolitan Migration Foundation and The Legal Education Foundation. The Greater London Authority has supported research, strategy and coordination through aligned funding.
Grant-making policy for the JTI programme
In order to achieve the planned goals set out above, Justice Together will make grants to organisations for charitable activity in particular:
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Advice and representation
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Free or low-cost immigration legal advice and representation at OISC level 2 or above.
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Coordination between advice providers including referral pathways within a geographical area or issue.
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Influencing work at either local or national level to improve access to justice for people in the UK immigration system.
We particularly welcome applications from organisations that are led and/or informed by people with lived and learned experience of the UK immigration system.
The initiative is guided by its values and works to be open and transparent with applicants and grant partners, striving to make the grants process as straightforward as possible. For example, following the first round, we reviewed and improved the process following feedback from applicants (via anonymous survey), funders, the Grants Committee and staff.
Justice Together funding is being distributed through open grant rounds, phased across regions and devolved nations. Funding is initially for three years and will include costs of management support, staff care and embedding anti-racism strategies. Partners who secure funding will be invited to join and shape the community of impact, connecting regularly to share intelligence, tackle shared issues and build stronger action for change. We aim to fund in a way that seeks to bolster the health, dynamism, sustainability and influencing capacity of the sector over the next decade.
Details of the awards made by 30 June 2021 are shown in note 10 to the financial statements.
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Justice Collaborations – Annual Report and Accounts 2021
COVID-19
The charity had only recently been established at the start of the first COVID-19 lockdown. Staff have worked remotely in the period to 30 June 2021. Meetings with funders, recruitment of staff and Trustee meetings were successfully undertaken through the use of video conferencing and cloud-based systems.
To date the organisation’s funders have been large charitable organisations holding significant reserves and the trustees are not aware of any reason to believe that the funders will not be able to fulfil their commitments to the charity. Additionally, the charity could meet the grant commitments made to 30 June 2021, in full, from cash balances held at that date. Should grant income reduce in the future the charity could reduce or pause grant-making until additional funds are raised.
We know that the COVID pandemic changes the context for our work. We are working with partners on an ongoing basis to understand the impact on access to justice, and on the charitable sector.
Justice Collaborations’ parent charity, The Legal Education Foundation, worked together with other independent funders, AB Charitable Trust, Access to Justice Foundation, Indigo Trust and Therium Access to develop a response to the financial impact of the pandemic and lockdown on specialist advice charities under the banner of the Community Justice Fund (CJF). The independent foundations worked closely with a steering group made up of umbrella bodies and frontline organisations. We ensured that links were maintained between CJF and JTI and, of the £11.6million awarded by CJF, 57 of the funded organisations offer immigration advice, receiving grant support of £3.6million.
Plans for the future
The second open grants round of JTI will take place focusing on advice grants in Northern Ireland, London and the South East, and Yorkshire and Humber, as well as further influencing grants across the UK. These grants are due to be awarded in December 2021. A further open grants round in Spring 2022 is expected to take place.
In addition, we are planning a series of development grants and convening work in geographical areas where research and consultation has identified a need to build the network and infrastructure for advice.
Financial Review
Results for the year
The Financial Statements for the year are set out on pages 15 to 25. These show the award of restricted grants of which £2,675k have been defined as meeting the criteria for recognition in this financial year. These represent multi-year grants, which are subject to annual reporting requirements, with the payments due to be received over the next 1-4 years.
The total level of Reserves as at 30 June 2021 is £5,462k (30 June 2020 £6,142k), all of which are restricted funds. It should be noted that the period over which the incoming grants are to be
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Justice Collaborations – Annual Report and Accounts 2021
expected to be received and expended ranges from 1 to 5 years. Costs incurred in the year totalled £3,355k (2020: £108k) all of which have been charged against the restricted funds received.
Grant and operational expenditure in future years is committed based on the funds expected to be available from the funders at that time.
Principal funding sources
The source of funds for Justice Collaborations is grants. Grants awarded to the charity in the current year are listed in note 2 to the financial statements.
Reserves Policy
Justice Collaborations maintains reserves which the Board of trustees deem appropriate for its effective operation. All of the charity’s reserves are treated as restricted as they relate to the Justice Together Initiative, which is currently the only programme run by Justice Collaborations.
The charity has received commitments from funders which can be used to fund staffing costs, other running costs and a programme of grant awards over a number of years.
The trustees will ensure that the charity has sufficient reserves to cover the costs of maintaining the grants it has awarded. Additionally, the trustees will continue to review the level of grant awards to ensure that they meet the requirements of funders’ grant agreements and the strategic objectives of the JTI.
At 30 June 2021, after having awarded the first round of grants under the JTI, the reserves stood at £5,462k. The next grant round is planned for the autumn of 2021.
Cash Flow and Cash Levels
In the year to 30[th] June 2021 a total of £2,988k (2020: £550k) was paid to the charity by funders. The cash balance at 30[th] June 2021 was £3,187k (2020: £509k) of which £3,027k was committed to cover the balance of grant awards made in the year.
Statement of Trustees’ Responsibilities
The charity trustees (who are also the directors of Justice Collaborations for the purpose of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with the applicable law and United Kingdom accounting standard (United Kingdom general accepted accounting practise).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity company and of the incoming resource and application of resources, including the income and expenditure of the charity for that period. In preparing the financial statements the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles and the charities SORP:
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Justice Collaborations – Annual Report and Accounts 2021
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make judgments and estimates that are reasonable and prudent;
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state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explain in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence taking responsible steps for the prevention attention 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 in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The trustees confirm that:
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So far as they are aware there is no relevant audit information of which the Charity’s auditor is unaware.
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They have taken all steps that they believe that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the Charity’s auditor is aware of that information.
Risk Management
Overall
The trustees are responsible for identifying, managing and monitoring the risks facing the organisation and for mitigating these risks so as to arrive at an acceptable risk appetite.
A Risk Register is maintained that lists and ranks all identified risks via a traffic light system that shows gross and net risk for each identified item of risk. The register also identifies responsibilities for action. and the timing of the next review of each risk and is considered at each Trustee meeting.
The key areas covered in the Risk Register are: governance risks, operational risks, financial risks, grant funding risks and compliance risks. The greatest residual risks are considered to be loss of key staff and cyber-security.
Mitigating the loss of key staff is the sharing of knowledge across the team including TLEF staff who are closely involved in the Justice Together project team. Staff also all have a 3 month notice period which allows time for recruitment in the event of resignation.
Justice Collaborations has adopted the IT security policies of The Legal Education Foundation. The Foundation’s policies are subject to periodic external reviews. There were no major areas of concern identified during the last review. The Foundation’s audit committee receives reports on the implementation of any recommendations made and would raise any areas of concern with the Justice Collaborations Board.
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Justice Collaborations – Annual Report and Accounts 2021
Governance
Trustees and trustee recruitment
The ultimate control of Justice Collaborations is The Legal Education Foundation which is the sole Member.
The trustees normally meet four times during the year, with additional meetings taking place if necessary. The trustees devote each meeting to considering strategic issues in addition to receiving an update reports from senior management.
The first trustees of the charity were appointed in November 2019. The Board is comprised of:
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three trustees of The Legal Education Foundation,
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the chief executive of The Legal Education Foundation, and
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two independent trustees.
The independent trustees were appointed following a formal recruitment and interview process.
The trustees take steps to ensure that they work as an effective team, using the appropriate balance of skills, experience, backgrounds and knowledge to make informed decisions. They can access independent professional advice, such as legal or financial advice, at the charity’s expense if needed.
In June 2020, the trustees agreed to create a grants committee which would be formed of three trustees together with three paid external members who would be recruited from amongst people with personal experience of the immigration system. The external members were appointed following a formal recruitment and interview process and all bring lived and learned experience of the UK immigration system. The committee is chaired by an independent Trustee.
The trustees and those who served as such at any time during the financial year, together with details of their Committee memberships as at the date of the approval of these financial statements, 1st October 2021, are shown on page 9.
Induction and training of Trustees
New trustees are provided with an induction programme during which they have the opportunity to meet with the key management and the Secretary, they are also made aware of:
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The responsibilities of trustees.
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The organisation’s constitution.
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The committees and decision-making processes.
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The plan for meeting the charity’s Object.
The current trustees were recruited at the time of the formation of the Charity based on the skills needed. However, as the charity further develops its strategy and grant giving programme, the skills of the Board will be reviewed and training provided where required.
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Justice Collaborations – Annual Report and Accounts 2021
Charity Governance Code
Justice Collaborations is committed to best practice in governance. The Trustees have adopted the main policies of its parent charity which includes a formal review of compliance with the Charity Governance code, by the Foundation’s Audit Committee, on an annual basis. The results of the latest review have confirmed that the charity continues to comply with the Charity Governance Code.
The charity continually reviews ways to further improve its governance and focusses on the areas of the code this can best occur.
The Foundation’s Governors have supported the senior management in the creation of a diversity, equity and inclusion working group. The activities of this group are reported to the Governors’ Board meetings and to the charity’s Board and will support the objective of continuing to improve governance practice in this area in line with the revised Diversity section of the Code.
The Justice Together initiative has been developed with a commitment to equity and human rights, inclusion and anti-racism at its core. It has a dedicated Anti-Racism Working Group and is working with an expert consultant.
Conflicts of Interest
Justice Collaborations has adopted its parent’s (The Legal Education Foundation) Conflicts of Interest Policy which requires trustees, executives, external committee members and advisers to declare any interest which could give rise to conflict of interest. They are required to exempt themselves from all relevant decisions which may involve a transaction with a related party or in which they may have a conflict of interest although they can take part in general discussion on the area concerned at trustees’ meetings.
A register of interests is maintained and relevant conflicts are declared at each Board and Committee meeting.
Fundraising
Justice Collaborations has not entered into contracts with central or local government to deliver services nor has it received grants from central or local government. It does not raise funds from the public and therefore has not subscribed to any fundraising standards or scheme for fundraising regulation.
The trustees are aware of the regulations, and have nothing further to disclose under the provisions of section 13 of the Charities (Protection and Social Investment) Act 2016.
Auditors
RSM UK Audit LLP had indicated its willingness to continue in office.
Remuneration
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Justice Collaborations – Annual Report and Accounts 2021
The remuneration of staff on recruitment was based on market rates for the roles. Annual salary reviews are recommended to the parent charity’s Finance and General Purposes Committee.
TRUSTEES AND KEY MANAGEMENT
The trustees, who are also the Directors of the company, and those who served as such at any time during the financial year, together with details of their Committee memberships as at 1st October 2021are as follows:
| Date | Leaving | JTI grants | |
|---|---|---|---|
| appointed | date | committee | |
| Jennifer Ang | 18/12/19 | Chair | |
| Guy Beringer | 22/11/19 | ||
| Jacqueline Broadhead | 18/12/19 | Y | |
| Timothy Dutton | 22/11/19 | 31/05/21 | |
| Alison Pickup | 18/12/19 | ||
| Paddy Sloan - Chair | 01/06/21 | ||
| Matthew Smerdon | 18/12/19 | Y |
Three external paid advisors to the grants committee were appointed on 15[th] September 2020: Dylan Fotoohi, Dami Makinde and Ali Torabi.
Guy Beringer was Chair of the Board from incorporation until 23[rd] June 2021 when he stepped down and Paddy Sloan was appointed in his place.
Key Management Personnel
The trustees consider the Board of trustees, and the senior management team as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis.
The senior management team comprises two senior staff from The Legal Education Foundation, Rachael Takens-Milne and Jake Lee, who bring strategic grant-making, policy and operations expertise, and the most senior staff member of Justice Together. The Head of the Justice Together Initiative, Hazel Williams, was appointed and took up her position on 1st August 2020, and the Deputy Head of the Justice Together Initiative, Laura Redman was appointed on 9th September 2020.
Hazel Williams had maternity leave in the year during which time Laura Redman was Acting Head.
During Hazel Williams’ leave, Rachael Takens-Milne and Jake Lee took on additional responsibility in relation to fundraising and budget management.
A recharge is made from The Legal Education Foundation to Justice Collaborations to cover the cost of their staff time spent on the operation of the charity.
This report has been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
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Justice Collaborations – Annual Report and Accounts 2021
Acknowledgements
The Trustees would like to acknowledge their thanks to the charity’s funders, staff and the external members of the grants committee who have shown great commitment to the vision and values of the Justice Together Initiative, particularly in a year where the pandemic has had such an impact on us all.
Approved by the Board of Trustees on 1st October 2021 and signed on its behalf by:
Paddy Sloan Chair
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Justice Collaborations – Annual Report and Accounts 2021
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF JUSTICE COLLABORATIONS
Opinion
We have audited the financial statements of Justice Collaborations (the ‘charitable company’) for the year ended 30 June 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company’s affairs as at 30 June 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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Justice Collaborations – Annual Report and Accounts 2021
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees’ Report, which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Directors’ Report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit;
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the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Trustees’ Report.
Responsibilities of trustees
As explained more fully in the Statement of Trustees’ responsibilities set out on pages 5-6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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Justice Collaborations – Annual Report and Accounts 2021
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
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obtained an understanding of the nature of the sector, including the legal and regulatory framework that the charitable company operates in and how the charitable company is complying with the legal and regulatory framework;
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inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
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discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011 and the charitable company’s governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.
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Justice Collaborations – Annual Report and Accounts 2021
The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
KERRY GALLAGHER (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants Davidson House Forbury Square Reading Berkshire RG1 3EU
Date 29 October 2021
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Justice Collaborations – Annual Report and Accounts 2021
Statement of Financial Activities
| Note Incoming from: Donations and Legacies 2 Total Incoming Resources Expenditure on: Charitable activities 5 Total 5 Net Income Reconciliation of funds Total funds brought forward 9 Total funds carried forward 9 |
2021 Restrict ed £’000 2021 Total £’000 2020 Restricted £’000 2020 Total £’000 2,675 2,675 6,250 6,250 |
|---|---|
| 2,675 2,675 6,250 6.250 |
|
| 3,355 3,355 108 108 |
|
| 3,355 3,355 108 108 (680) (680) 6,142 6,142 6,142 6,142 - - |
|
| 5,462 5,462 6,142 6142 |
The Statement of Financial Activities includes all gains and losses recognised in the year.
The figures for 2020 relate to the period from incorporation to 30 June 2020.
The notes on pages 18 to 25 form part of these financial statements.
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Justice Collaborations – Annual Report and Accounts 2021
Balance Sheet as at 30 June 2021
| Note Current assets Debtors 7 Cash at bank and in hand Creditorsdue within one year 8 Net current assets Total assets less current liabilities Creditorsdue after more than one year 8 Net assets Funds Restricted Funds 9 Total Funds |
30 June 2021 30 June 2020 £’000 £’000 5,388 5,700 3,187 509 |
|---|---|
| 8,575 6,209 1,174 67 |
|
| 7,401 6,142 |
|
| 7,401 6,142 1,939 - |
|
| 5,462 6,142 |
|
| 5,462 6,142 |
|
| 5,462 6,142 |
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
Approved and authorised for issue by the Board of Trustees on 1st October 2021, and signed on its behalf by:
Paddy Sloan Chair of Trustees
Guy Beringer Trustee
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Justice Collaborations – Annual Report and Accounts 2021
The notes on pages 18 to 25 form part of these financial statements.
Statement of Cash Flows for the year ended 30 June 2021
| Cash flows from operating activities: Net Income Adjustments for: Decrease/(increase) in debtors Increase in Creditors Cash generated from operations Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2021 2020 £’000 £’000 (680) 6,142 312 (5,700) 3,046 67 |
|---|---|
| 2,678 509 |
|
| 2,678 509 509 - |
|
| 3,187 509 |
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Justice Collaborations – Annual Report and Accounts 2021
The notes on pages 18 to 25 form part of these financial statements.
NOTES TO THE ACCOUNTS
1. Accounting Policies
a Principal policies and assessment of going concern
The Financial Statements of the charity, registered in England and Wales, which is a public benefit entity under FRS 102, are prepared under the historical cost convention and in accordance with the Financial Reporting Standard Applicable in the United Kingdom and Republic of Ireland (FRS102), the 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 United Kingdom and Republic of Ireland (FRS102) (second edition effective January 2019) and the Charities Act 2011 and Companies Act 2006.
The financial statements cover year ended 30 June 2021. The legal status of Justice Collaborations is that of a company limited by guarantee and a registered charity.
Going concern
The trustees have reviewed the Charity’s forecasts and projections covering a period that exceeds twelve months from the date of signing these financial statements and based on the levels of available cash, commitments made by funders and having taken into account economic conditions, the trustees are satisfied that the Charity has adequate resources to continue in operation for the foreseeable future. Accordingly, the going concern basis has been used in preparing these financial statements.
Judgements and key sources of estimation uncertainty
When preparing the financial statements management consider whether they have been required to make critical judgements, estimates and assumptions that affect the amounts reported. No such judgements or estimations of uncertainty have been required in the preparation of these financial statements.
Fund accounting
Restricted funds are subjected to restrictions on their expenditure declared by the donor. The charity currently runs one programme, the Justice Together Initiative, and all funds awarded to date relate to that programme, therefore all income and expenditure is reported as being restricted funds.
b Income
Donation and Legacy income comprises restricted funds received from external donors for specific programmes as disclosed in note 2. This income is recognised when the organisation is entitled to the income, receipt is probable and the amount can be reliably measured.
c Expenditure
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Justice Collaborations – Annual Report and Accounts 2021
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Charitable Activities
Expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
The costs under this heading are further split between Grants, Grant making and Research, Other direct costs and Governance in Note 5. Staff costs are allocated to these subheadings based on an estimate of time spent on each activity by the Charity’s staff.
Grants are charged to the Statement of Financial Activities when the award is communicated to the recipient and thereby a constructive obligation arises.
Grant making and research costs include costs of research commissioned and/or carried out by the Charity and an allocation of staff time spent on grant awarding and monitoring.
Other direct costs include office expenses, IT and website development, and travel costs.
Governance costs include costs of audit fees and costs associated with the functions of the trustees and the cost of the external legal and other advisors to the trustees.
d Pension costs
The pension costs represent the contributions made to personal pension schemes for staff members. Payments to defined contribution retirement benefit schemes are charged and as an expense as they fall due.
e Fund accounting
The Charity currently has only one type of fund for which it is responsible and which requires separate disclosure:
Restricted funds
Donations or legacies received, or income arising from such, which are earmarked by the donor for specific purposes. Such purposes are within the overall aims of the Charity.
f Value Added Tax
Expenditure is stated gross of irrecoverable value added tax. Justice Collaborations is in a VAT group headed by The Legal Education Foundation. Reclaims of Value Added Tax are recognised when the basis of any reclaim has been agreed with H M Revenue & Customs and the amount of any such reclaim can be assessed with reasonable certainty.
g Taxation
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Justice Collaborations – Annual Report and Accounts 2021
The company is a registered charity and, as such, for taxation purposes, is entitled to exemption from United Kingdom taxation under the Income and Corporation Taxes Act 1988 and may recover income tax from its investment income.
h Related party transactions
Material transactions with related parties are disclosed in the notes to these financial statements. The Charity's policy is for trustees, executives and advisers to declare their interest and exempt themselves from all relevant discussions and decisions which may involve a transaction with a related party or in which there may have a conflict of interest. Details of related party transactions are included in note 3.
i Financial Instruments
The only financial instruments held by the Charity constitute payables and receivables. These are categorised as ‘basic’ in accordance with Section 11 of FRS 102 and are initially recognised at transaction price. These are subsequently measured at transaction price less any impairment.
2. Income
| Voluntary income: Grants |
2021 2020 £’000 £’000 2,675 6,250 |
|---|---|
| 2,675 6,250 |
Incoming grants are all allocated to restricted funds and all relate to the Justice Together Initiative, the sole programme currently run by the charity.
AB Charitable Trust has awarded a multi-year grant covering a three-year period of which, due to restrictions in the contract, £125k has been recognised in each year.
Other grants awarded to the charity in the year were:
| Metropolitan Migration Foundation The Legal Education Foundation Trust for London Tudor Trust |
£’000 100 500 1,500 450 |
|---|---|
| 2,550 |
3. Transactions with Trustees and Connected Persons
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Justice Collaborations – Annual Report and Accounts 2021
No trustees claimed expenses or received remuneration in the period to 30 June 2020 or year to 30 June 2021.
Expenditure in the period includes £122k (2020: £36k) of staff costs recharged by the parent charity The Legal Education Foundation. Of this total £36k was in relation to staff considered to be part of Justice Collaborations key management personnel. The Legal Education Foundation awarded, and paid, a grant of £500k to Justice Collaborations in the year to 30 June 2021.
4. Net Income
| 2021 | 2020 | |
|---|---|---|
| £’000 | £’000 | |
| Net Income for the year is stated after charging: | ||
| Fees payable for services provided by the auditor and | ||
| the auditor’s related entities (including irrecoverable | ||
| VAT): | ||
| Auditor’s remuneration: | ||
| RSM UK Audit LLP | ||
| 14 | 11 | |
| Other services: | ||
| Preparation of tax return | 1 | - |
5. Analysis of Total Expenditure
Charitable activities Grants Grant making and Research Other Direct costs Governance |
Human Total Total Resources Other 2021 2020 £'000 £'000 £'000 £'000 - 3,062 3,062 - 43 22 65 10 78 118 196 82 - 32 32 16 |
|---|---|
| 121 3,234 3,355 108 |
6. Staff costs
| 2021 | 2020 | |
|---|---|---|
| £’000 | £'000 | |
| Wages and Salaries | 108 |
- |
| Social Security costs | 11 | - |
| Pension costs – Defined | 3 | - |
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Justice Collaborations – Annual Report and Accounts 2021
Contribution
122 -
No employees earned in excess of £60,000 per annum, including their taxable benefits, in the year ended 30 June 2021 or the period ended 30 June 2020.
The average number of employees in 2021 was 3 (2020:0) and the average full-time equivalent number of employees was 3 (2020:0).
Remuneration of Key Personnel
Key Management Personnel are deemed to comprise the trustees, two senior staff from The Legal Education Foundation and the Head and Acting Head of Justice Together Initiative (JTI).
The aggregate remuneration in the current year, including pension benefits, for the Head and Acting Head of JTI was £87k.
Details of the total Foundation staff costs recharged to Justice Collaborations are included in Note 3.
7. Debtors
| Prepayments and accrued income 8. Creditors Creditors due within one year Amounts owed to parent company Grants payable Other creditors Tax and Social security Accruals Creditors due in more than one year Grants payable |
2021 2020 £'000 £'000 5,388 5,700 5,388 5,700 2021 2020 £'000 £'000 39 39 1,088 - 15 - 3 - 29 28 |
|
|---|---|---|
| 1,174 67 |
||
| 2021 2020 £'000 £'000 1,939 - |
||
| 1,939 - |
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Justice Collaborations – Annual Report and Accounts 2021
9. Funds
All incoming grants are treated as restricted as they relate to the Justice Together Initiative programme. The periods over which the above grants are receivable range from 2 to 5 years and are restricted to the Justice Together initiative which is currently Justice Collaborations’ only programme.
| 2021 At 1 July 2020 Total income Total Expenditure As at 30 June 2021 2020 As at 22 November 2019 Total income Total Expenditure As at 30 June 2020 10. Grant awards |
£'000 Restricted funds 6,142 2,675 (3,355) |
|---|---|
| 5,462 | |
| £'000 Restricted funds - 6,250 (108) |
|
| 6,142 | |
| Region | £000s | |
|---|---|---|
| Advice and Representation | ||
| North East Law Centre | North East | 600 |
| Greater Manchester Immigration Aid Unit | North West | 486 |
| Scottish Refugee Centre | Scotland | 200 |
| JustRight Scotland | Scotland | 200 |
| Settled | Scotland | 264 |
| 1,750 | ||
| Influencing | ||
| Migrant Centre Northern Ireland | Northern Ireland | 120 |
| Reunite Families UK | National | 90 |
| Rights of Women | National | 195 |
| Citizens UK | National | 165 |
| Rainbow Migration | National | 200 |
| Hibiscus Initiatives | National | 150 |
| Institute for Public Policy Research | National | 242 |
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Justice Collaborations – Annual Report and Accounts 2021
| Women for Refugee Women National |
150 |
|---|---|
| 1,312 | |
| TOTAL | 3,062 |
11. Related Party transactions
Transactions with the parent Charity, The Legal Education Foundation, are disclosed in note 3.
| Grantee Trustee Relationship to grantee |
Grant awarded in the year Balance at 30.6.21 |
|---|---|
| £'000s £'000s |
|
| Justright Scotland J Ang Director |
200 200 |
| Settled J Ang Trustee |
264 264 |
| 464 464 |
R Takens-Milne, a member of the senior management of Justice Collaborations and employee of The Legal Education Foundation is also a Trustee of Women for Refugee Women. A grant of £150k was awarded to that organisation in the year ended 30 June 2021. The balance to be paid at 30 June 2021 was £150k.
None of the above trustees or management took part in any discussions or decisions regarding a grant to a party to whom they are Related.
J Lee, a member of the senior management of Justice Collaborations and employee of The Legal Education Foundation is also an employee of Unbound Philanthropy. Unbound Philanthropy awarded a grant of £300k to Justice Collaborations, and paid it in full, in the period ended 30 June 2020.
The information provided in this note relates to transactions in the financial year. The conflicts of interest policy, which is followed for all transactions and grant award decisions, is detailed on page 8.
12. Parent Organisation and Ultimate Controlling Party
The trustees regard The Legal Education Foundation (TLEF), a registered charity incorporated in England and Wales by Royal Charter (charity registration number: 271297), as the Company’s parent organisation and ultimate controlling party. According to the register kept by the Company, TLEF, as the sole member has a 100% interest in Justice Collaborations Limited as at 30 June 2021. TLEF is the largest and smallest body to consolidate the financial statements of the Company.
Principal purposes and activities of TLEF
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Justice Collaborations – Annual Report and Accounts 2021
The Object of TLEF, as set out in its Royal Charter, is: ‘To promote the advancement of legal education and the study of law in all its branches, and the sound development and administration of law’.
It has a vision of a society that fosters the principles of justice and fairness, where people understand and use law to bring about positive change and to prevent harm and where public systems and structures uphold the rule of law.
Its main activity is that of grant-making and its current strategy is based around the following three key programmes:
Stronger Sector: Training and support for a thriving social justice legal sector
Fairer Systems: Transparency, accountability and the protection of rights
Smarter Justice: An enduring commitment to learning and evidence in the justice system.
A copy of the parent organisation’s consolidated financial statements can be obtained by writing to Suite 2, Ground Floor, River House, Broadford Park, Shalford, Guildford, Surrey, GU4 8EP.
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