MERSEYSIDE LAW CENTRE LIMITED ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 Company Number: 09882302 Charity Number: 1199464
MERSEYSIDE LAW CENTRE LIMITED CONTENTS Page Trustees, Report Statement of Trustees, Responsibilities Independent Examiner's Report Statement of Cash Flows 10 Statement of Financial Activities Balance Sheet 12 Notes to the Financial Statements 13
MERSEYSIDE LAW CENTRE LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31ST MARCH 2025 The trustees are pleased to present their report for the year ended 31st March 2025. The financial statements have been prepared in accordance with the charity's trust deed, the Charities A¢t 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland published {FRS 102) {effective 1st January 2019). OBJECTIVES AND ACTIVITIES The purposes of the Charitsble company are: the relief of poverty, suffering and distress among persons resident studying or working in Merseyside and the surrounding areas by a) providing them with legal SeNiS which they could not otherwise obtain because of the lack of means b) educating them on their legal rights and responsibilities and on the operation of the law and legal systems. Public Benefit statement The trustees confirm that they have referred to the Charity Commissions guidan on public benefit when reviewing the charities aims and objectives, in planning future activities, and setting the policies for the year. The main activities undertaken for the public benefit are the provision of free, independent legal advice, assistan and representation with housing, homelessness, immigration and asylum and welfare benefits. ACHIEVEMENTS AND PERFORMANCE Once again, this year's annual report shows the important service that Merseyside Law Centre delivers for the residents of Merseyside. We have delivered advice to residents of Liverpool, Knowsley, St Helens, Seflon, and Wirral during the last year. The advice and support provided by Merseyside Law Centre {MLC) has lrfe changing results enabling people to stay in their homes, helping them to cope a little better with the cost-of-living, and reducing anxiety for those who are faced with multiple and complex issues. Achievements During April 2024 to March 2025, we have.. Dealt with 2,255 enquiries. Opened 491 new housing cases. Opened 139 new welfare benefits cases. Opened 10 immigration cases. Achieved £799,315 in financial gains for clients (including one-off payments and ongoinglannual amounts). Our Clients From the data that we have collected during the reporting period, we can identify that- 42 % of our clients were female and 360/0 were male {unspecifiedlprefer not to say 22 % ). For those clients that reported their age, the majority {88010) are aged between 25 and 64 years old, with 35 10 44 {26 % ) and 45 to 54 (230/0) being the most common ages within this wider grouping.
MERSEYSIDE LAW CENTRE LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31ST MARCH 2025 100/0 are disabled and 90 % non-disabled. Of those that described their ethnicity 80/0 are ofAsian ethnicity, 9 % are Black, 2 % Mixed, 80h describe themselves as other and 73 % are White. The majority of our enquirers and clients are from Liverpool and the rest of Merseyside.. Liverpool- 70.7% Knowsley- 6.10 St Helens- 4.3 % Sefton - 3.20/0 Wirral_ 7.7% Other locations outside area of benefrt- 80 Housing Housing enquiries are by far the largest type of enquiries and cases that we deal with, at 51% of all enquiries and 770/0 of all new cases opened. With both a Legal Aid contractand HLPAS delivery, as well as drop-ins, and a web-based enquiry fonn, there are a range of ways for clients to a¢¢ess our housing advice services. Due to stsff capacity, we can't deal wtth all housing enquiTies, but despite this, we make a significant impact on our clients. lives in¢luding'. Outcome Number cllents Homelessness delayed 83 Homelessness prevented I remained 166 in propety TOTAL 249 Case study - Dave's Story Dave was living in a one-bedroom flat in a House of Multiple Occupation IHMO) with his two young children, who had recently moved in with him on a full-time basis. The property not only lacked adequate space but was also in disrepair, resulting in cold and damp conditions. An improvement noti had been issued to the landlord, who made some attempts at fixing the situation. however, these efforts did not work. The overall environment was adversely affecting both the mental and physical health of the client and his children. Dave told us that he had submitted a homelessness application several months before. Despite making nearly daily inquiries with the council, he had yet to receive a response or a decision regarding his application. After taking on his case and reviewing all of the information we issued a letter before action, indicating our intention to the council to pursue an investigation of the case. Within Iwo weeks, Dave contacted us to tell us that he had been offered a three-bedroom house. Dave was very grateful for the advice he'd got from us and said.. "It's as though my life is starting all over again for the better." Welfare Benefits Welfare benefit enquiries make up 15 % of all enquiries and 220kn of all new Cases opened. With the addition of a Welfare Team Lead post in March 2024, and the appointment of an over 65's ¢aseworker in September 2024 (funded by Independent Age), the number ofwelfare cases has risen from 55 in 2023-24 to 149 in 2024-25.
MERSEYSIDE LAW CENTRE LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31ST MARCH 2025 Through the welfare benefits advi provided 70+ clrents have received financial gains that include one off and ongoinglannual benefit awards. Case study - Sarah's Story Sarah is married with a young family. She has been grappling with debilitating illnesses for over o years. Although she has a professional background that has a substantial earning potential, due to her illnesses, her working life has been affected. Sarah did have support from her work colleagues to make some necessary workplace adjustments, but due to her ongoing illnesses, Sarah needed to reduce her working hours. Sarah's health challenges continued to the point where she was no longer able to do basic tasks. such as cooking for her family and taking her children to and from school. Because of this, Sarah's husband had to duce his working hours to care for both her and their children. The financial strain that resulted from all of these changes was very stark. They had gone from both working and being reasonably financially stable to being reliant on foodbanks. As part of our support, we prepared a written submission and presented the relevant appeal documents. Our attendance at the tribunal was instrumental in Sarah being awarded standard daily living and enhanced mobility support. This represented a significant increase in her benefits, elevating her weekw support from £26.90 to £140, along with an additional annual benefit of £5,881.20. Immlgration Ouring 2022123 Merseyside Law Centre began a journey to develop immigration advi as a new area of delivery. Working in partnership with Greater Manchester Immigration Aid Unit (GMIAU) and as part of the Justice Together Initiative funding programme, MLC gained funding to develop the service. Following the appointment of an experienced immigration Solicitor in February 2023, wewere able to applyfor a Legal Aid contract in Immigration and started delivery. With a Trainee Solicitor assisting in the delivery of immigration advice, we were able to deliver a much-needed area of advice, especially once we had moved to our new premises in Toxteth. Following the loss of our senior immigration solicitor, we continued lo deliver the service working with GMIAU who supeNised the work of the Trainee Solicitor. In November 2024 our Trainee Solicitor qualified but decided to leave the organisalion to take up a post with a commercial solicitors firm. Since then, existing open immigration cases have been undertaken by staff from GMIAU. We have suspended the Legal Aid contract and worked to try and recruit immigration staff - both at solicitor and caseworker levels but have been unsuc$sfU1. For the remainder of the financial year, we have not been able to deliver immigration advice, forwhich there is a huge gap in provision in the City. staffing Changes during 2024 - 2025 New CEO In 2024 the Board of Trustees agreed to create a CEO post for the organisation, which would release the Head of Legal Practice (HOLP) from the Director role, enabling her to focus on legal advice planning and delivery for the organisation, supervision of Trainee Solicitors, as well as her own caseload. Our new CEO started in August 2024 and as a non-advice pra¢tising CEO with over 30 years, experience of working in the voluntary sector, she has brought a range of skills and experience, including senior management, fundraising, governan and charity law and compliance, that has been very beneficial to the organisation.
MERSEYSIDE LAW CENTRE LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31ST MARCH 2025 Fundraiser & Dats Analyst Our Fundraising & Data Analyst, Dave Coe, very sadly passed away at the end of March 2025. Dave was not only a popular, funny and chamiing person to work with, but also played a huge role in the sustainability of the organisation. His suGGess at fundraising was instrumental in helping the centre to grow, and he is very sorely missed. We haven't recruited to the post, meaning existing staff have taken on the work of analysing data, writing funder reports as well as identifying and responding to funding opportunities. Operations Director Our Operations Director moved to a newly created Finance Officer post in January 2025. Originally part of the Operations Director role, the new Finan OffIr post has enabled an even greater focus on finance planning and record-keeping for the organisation. The retention of an experienced member of staff has been very beneficial to the organisation, enabling continuity and the sharing of information for a new operations staff member. Interim operations staffing while a new Operations Manager post was recruited proved invaluable during the end of the financial year. Partnerships Raise Advice MLC don't deliver debt advice, so we work in partnership with raise Advice to facilitate debt appointments for MLC Clients. During the yearwe have assisted 81 of our clients to access debt advice on things like- applications for Breathing Spa, negotiating repayments, DROS and debts written off. West D8rby Centre for Soclal Justice During the year we worked in partnership with lan Byme MP on the development of the West Derby Centre for Social Justice. Launched in March 2025, the Centre provides a range of different types of advice directed at the Dovecot community and surrounding areas in Liverpool. A community on the fringe of the City, Dovecot is an area of deprivation, where residents are often reluctant to seek advice if they need to travel to the city centre to access it. Partner organisations delivering services from the Centre reco9nise the benefits of having outreach services at the Centre, as they are able to meet with hard-to-reach clients. Llverpool Access to Advice Network MLC are an executive committee member of the Liverpool A¢¢ess to Advice NeOrk ILATAN). LATAN is the community of practice for Liverpool's free legal advice sector, providing activities, resources and a focus for collaborative working. Made up of nearly 200 partner organisations the network aims to help advice and support organisations to be better informed, work collaboratively, provide a joint voi¢e in consultations on policy and practice, all to maximise the effectiveness of a local free legal advice sector that has seen funding reduce and rising demand. FINANCIAL REVIEW Total income for the year was £525,198 (2024: £578,929) of which £327,264 {2024.' £315,502) related to funding for projects upon which restrictions are placed. Total expenditure for the year was £485,728 (2024.. £402,983) leaving a surplus for the year of £39,470 (2024.. surplus £175,946). At 31st March 2025 the charitable company's reserves stood at £395,860 (2024: £356,390) of which £94,283 (2024= £120,577) represented restricted funds.
MERSEYSIDE LAW CENTRE LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31ST MARCH 2025 RISK ASSESSMENT The trustees have conducted a review of the major risks to which the charity is exposed, and systems have been established to mitigate those risks. The Cost-of-Living crisis continues to be a factor for both the organisation and for our clients staffing costs and utililies are increasing and the number of clients facing hardship is increasing. 2025 has presented the start of a difficult year for accessing funders - due to increasing costs for charities, changing funder priorities and funding strategies, competition for funding has increased constderably. Government policy to cut funding to local authorities continues to have an extreme impact on the independent advice sector. Our risk management has focused on the threat to our income streams and our planning for the future has been shaped around strategic development that protects our core seNices and positions us to be able to respond to emerging opportunities, including partnerships and collaborations, increase sustainability and meet increasing need. RESERVES POLICY It is the policy of the charty to maintain unrestricted funds, which are free reseeS at a level to Cover redundancy provision and six months of running costs should no further funding be reived. At the end of the financial year, unrestricted funds totalled £301,577 of which £3,437 is represented by tangible assets, less designated funds £57,709. leaving surplus free unrestricted reserves of £240,431. The charilable company requires £30,079 for redundancy provision £66,085 for six months running, Costs, (total £96,164). The trustees plan for the balance of the unrestricted resenfes is for salary of an unfilled welfare rights team leader post, additional salary costs which will be incurred following an organisational wide pay review and increasedladditional office costs to help us meet increased demand. PLANS FOR FUTURE For 2025-26 we plan to continue our work towards sustainability. Our aim is not only to maintain a sound financial footing, but to work lo meet the increasing challenges of the legal advicelrepresentation needs of our community. STRUCTURE, GOVERNANCE AND MANAGEMENT The organisation is a charitable Company limited by guarantee, incorporated on 201h November 2015 (company number 09882302) and registered as a charity {charity number 1199464) on 28th June 2022. The Governing Instruments under which the charitable company operates comprise the Memorandum and Articles of Association dated 201h November 2015 and amended by special resolution 23rd September 2021. Appointment of trustees As set out in the Articles of Association, trustees of the charitable company, may by ordinary resolution appoint a person who is willing to act as a director and detemine the rotation in which any additional directors are to retire. Trustee Induction and training Truslees undertake an induction when they join the board, discuss their prospective role and responsibilities with the Chair, the Director, and other key trustees. Any training is bespoken to this role.
MERSEYSIDE LAW CENTRE LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31ST MARCH 2025 Organisation The board of trustees administers the charty. The board normally meets every two months. The Director is appointed by the trustees to manage the day-toaY operations of the charitable company. REFERENCE AND ADMINISTRATIVE DETAILS Merseyside Law Centre Limited 09882302 Name Company Number Charity Number Registered Office 1199464 Kuumba Imani Millenium Centre 4 Princes Road Liverpool, England L8 1TH Trustees S Cotter-Burgess G A Moglione M Weights B Wenhvorth M Wilson (Resigned 121h Dernber 2024) Secretary Jcoe E Reed (Resigned 19th November 2024) (Appointed 19th November 2024) Independent Examiner Ying Huang ACCA LCVS 151 Dale Street Liverpool L2 2AH Bankers Lloyds Bank PLC South Shields King St Po Box 1000 BX1 1LT Signed on half of the Board of Trustees Weights- Trustee
MERSEYSIDE LAW CENTRE LIMITED STATEMENT OF TRUSTEES, RESPONSIBILITIES Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company as at the balan sheet date and of its incoming resources and application of reSoUrs, including income and expenditure, for the financial period. In preparing those financial statements, the trustees should follow best practi and.. select suitable accounting policies and then apply them consistently., obseNe the methods and principle in the Charities SORP., make judgements and estimates that are reasonable and prudent: prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue as a going concern-, state whether applicable accounting standards have been followed, subject to any material departure disclosed and explained in the financial statements. The Truslees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the char5table company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The financial statements have been prepared in ac¢ordan¢e with the charity's trust deed, the Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their a¢¢ounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published (FRS 102) {effective 1st January 2019). By Order of the Board M Welghts- Trustee Kuumba Imani Millenium Centre 4 Princes Road Liverpool, England L8 1TH
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MERSEYSIDE LAW CENTRE LIMITED I report on the accounts of the charitable company for year ended 3151 March 2025, which are set out on pages 10 to 24. The trustees {who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees Consider that an audit is not required for this period under section 144(21 of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to.. examine the accounts under section 145 of the 2011 Act, to follow the prOdureS laid down in the general Directions given by the Charity Commission (under se¢tion 145(5){b) of the 2011 Act, and to state whether particular matters have come to my attention. My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charty and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair, view and the report is limited to those matters set out in the statement below. Res ective res onsibilities of trustees and examiner Basis of inde endent 6xaminerfs statement In connection with my examination, no matter has come to my attention- (1) which gives me reasonable cause to believe that in, any material respect, the requirements.. to keep accounting records in accordan with section 386 of the Companies Act 2006; and to prepare accounts which accord with the accounting records and comply with the accounting requirements of section 396 of the Companies Act 2006 and wtth the methods and principles of the Statement of Recommended Practice: Accounting and Reporling Charities have not been met., or (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Inde endent examin8rfs statement Name: Mrs Ying Huang Relevant professional qualification or body.. ACCA Address.. clo LCVS 151, Dale Street, Liverpool, L2 2AH Dated..
MERSEYSIDE LAW CENTRE LIMITED STATEMENT OF FINANCIAL ACTIVITIES {INCLUDING INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31ST MARCH 2025 Notes Unrestrlcted Restricted Funds Funds 2025 2025 Total Funds 2025 Total Funds 2024 Income and endowments from: Donations and legacies Charitable activities Investments Other income 3a 3b 3¢ 3d 41,249 156,007 678 41,249 483,271 678 22,470 555,690 640 129 327,264 Total income 197,934 327,264 525.198 578,929 Expendlture on: Charilable activities 132,170 353.558 485,728 402,983 Total expenditure 132,170 353,558 485.728 402,983 Net incomel(expenditurel. net movement in funds 65,764 126,294) 39.470 175,946 Total funds brought forward 10,11 235,813 120,577 356,390 180,444 Total funds carried forward 9-11 301,577 91,283 392,860 356,390 The notes on pages 13 to 24 form part of these accounts. All the above amounts relate to continuing activities of the charitable company. 10-
MERSEYSIDE LAW CENTRE LIMITED BALANCE SHEET AS AT 31ST MARCH 2025 Company Number 09882302 Notes 31st March 2025 31st March 2024 Flxed assets Tangible fixed assets 5,652 4,296 Current assets Debtors Cash at bank and in hand 83,283 375,540 101,548 327,441 458,823 428,989 Current liabilities Creditors.. amounts falling due within one year (16,393) (23,473) Net current assets 442,430 405,516 Net assets 448,082 409,812 Creditors: amounts falling due after more than one year (52,222) (53,422) Totsl ass8ts18ss current Ilabilities 395,860 356,390 Funds: Unrestricted funds Restricted funds 9,10 9,11 301,577 94,283 235,813 120,577 395,860 356,390 These financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies, regime and in accordan¢e with FRS102 SORP. For the period covered by these accounts the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies. No members have required the company to obtain an audit of its accounts for the period in question in accordance with section 476 of the Companies Act 2006. The trustees, who are the directors of the company, acknowledge their responsibilty for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements. Approve the Board on . Oq ! ji l LO%f., and signed on their behalf by.. 209 Weights- Trustee
MERSEYSIDE LAW CENTRE LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST MARCH 2025 Notes 318t March 2025 31 It March 2024 Cash flows from operating activities Cash generated from operations 16 50,535 124,708 Investing actlvltles Purchase of tangible fixed assets (2,436) Net cash (used In) Investlng activities Net cash generated from financing activities Net increase in cash and cash equivalents 48,099 124,708 Cash and cash equivalents at beginning of year 327,441 202,733 Cash and cash equivalents at end of year 327,441 375,540 Represented by: 318t March 2025 315t March 2024 Cash at bank and in hand 375,540 327,441 12-
MERSEYSIDE LAW CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 1. Limited Llability The charity is a company limited by guarantee without share capital. Each member's liability is limited to £10. 2. Accountlng Policies Basis of accounting The financial statements have been prepared in accordance with the charity's trust deed, 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 published (FRS 102) (effective 1st January 2019). The accounts have been prepared under the historical cosl convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The accounts are prepared in sterling, which is the functional currency ofthe charity. Monetary amounts in these financial statements are rounded to the nearest £. The Charity has taken advantage of the provisions in the SORP for Charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. Going concern At the time of approving the accounts, the trustees have a reasonable expectation that the charitable Gompany has adequate reserves to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts. Fund accounting Unrestricted funds are the charity's free reseNes available for the trustees to apply in accordance with the charitable company's charitable objectives. Restricted funds are subject to specific restrictive conditions imposed by the donor. All restricted funds are accounted for as restricted income and expenditure for the purposes is charged to the fund. In¢ome recognition All income is recognised once the charity has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income re1vable can be measured reliably. Donations and legacies comprise ofdonations and general grants which are recognised in the accounts when reived, with the exception of known legacies which are accounled forwhen their receipt is certain. Income from charilable activilies is recognised on an accrual's basis except for grants receivable, which are recognised. Income from investment relates to bank interest received and is recognised when the amount is certain. Income received on funds for a specific purpose is allocated to that fund were material.
MERSEYSIDE LAW CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 Exponditure recognltion Liabilities are recognised as soon as there is a legal or constructive obligation committing the charitable company to that expenditure, it is probable that settlement will be required and the amount ofthe obligation can be measured reliably. All expenditure is accounted for on an accrual basis. All expenses, including support costs and governan Costs, are allocated or apportioned to the applicable expenditure headings in the Statement of Financial Activities. Support and governance costs are applied to unrestricted funds unless specifically included in the restrictions, as specified by the donor. Expenditure on charitable activities relates to the operation of the charity comprising of direct charitable expenditure to meet the objectives of the charitabte company. Support and governance costs relate to the management and operation of the organisation and also compliance with constitutional and statutory requirements in producing the annual report. These are dealt with in the Statement of Financial Activities when payment has been approved by the charitable company. Fixed Assets Capitsl expenditure stated in the balance sheet at cost less accumulated depreciation. Depreciation is provided to write off the cost of each asset over its expected useful life as below.. Computer Equipment Fixtures and Fittings 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. Financial Instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the chariws balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, wrth the net amounts presented in the financial statements, when there is a legally enforceable righl 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. Bas1¢ financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently Carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. 200A reducing balance basis 200A reducing balance basis 14
MERSEYSIDE LAW CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Derecognltion of financial liabilities Financial liabilities are derecognised when the charrty's contractual obligations expire or are discharged or cancelled. Taxation Income and gains are exempt from taxation as they are received and applied for charitable purposes only. The charitable company benefits from various exemptions from taxation afforded by tsx legislation and are not liable to corporation tax on income or gains falling within those exemptions. Critical accounting estimates and judgements In the application of the charity's accounting policies, the twstees 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 on-going 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 affeds both Current and future periods. 3. Income and endowments from: Unrestricted Restrictsd Funds Funds 2025 2025 Total Funds 2025 Total Funds 2024 a. Donatlons and legacies Donations General grants 2,236 39,013 2,236 39.013 470 22,000 41,249 41,249 22.470 Donations and legacies income for year end 2024 related wholly to unrestricted fund. 15-
MERSEYSIDE LAW CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 Unrestricted Restricted Funds Funds 2025 2025 Total Funds 2025 Total Funds 2024 b. Charltsble activities Access to Justice Foundation Albert Hunt Trust Contract and sales income Independent Age John Moores Foundation LCVS Community Impact Fund Legal Education Foundation Legal Service income Liverpool City Council Community Recourse Grant National Lottery Communty Fund Our Liverpool P H Holt Foundation Room hire Sam and Bella Sebba CharFtable Foundation Steve Morgan Foundation 168,428 168,428 8,000 8,000 156,007 42,131 10.000 149,419 7,000 203,207 156.007 42,131 10,000 8.000 3,240 5,000 5,000 35,731 12.500 12.500 25,000 55,524 46,192 7,500 46,192 7,500 1,250 40,000 27,319 27,513 27,513 156.007 327.264 483,271 555,690 Income from charitable activities for year end 2024 comprised £240,188 for unrestricted funds and £315,502 related to restricted funds. c. Investments Bank interest 678 678 640 Investments income for year end 2024 related wholly to unrestricted fund. d. Other income HMRC interest income 129 Other income for year end 2024 related wholly to unrestricted fund. 16
MERSEYSIDE LAW CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 4. Expenditure on charitsble actlvltles Dlrect Support & Charitable Governance Expenditure Costs Total Total 2025 2024 To provide legal services 249,038 238,690 485,728 402,983 . Analysed as follows.. 2025 2024 Direct charitable expenditu.. staff salaries costs Pension Interpreters, court fees Equipment Subscriptions Clients, payments Room hire Volunteer expenses Travel and subsistence costs 214,629 5,565 9,524 4,835 13.619 194,683 5,431 20,823 3,107 10,448 3,000 230 346 208 810 56 249,038 238.276 17
MERSEYSIDE LAW CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 2025 2024 Support & Govemance costs.. Staff salaries costs Pension Temporary staff Recruitment Computer support and software Consultancy and professional fees Donation Building running costs Insurance Office costs Website costs Sundry Training Archiving DBS fees Refreshments HMRC charges Bank charges Loss on disposal of fixed assets Payroll fees Accountancy fees Depreciation charge 152,619 3,844 4,005 345 3,771 115,480 2,865 347 8,212 2,667 90 18,522 2,106 2,557 10,779 37,683 4,894 3,583 500 3,681 3,198 1,680 5,725 101 392 369 817 87 2,601 417 93 17 1,920 1,677 1,080 1,595 1,078 236,690 164,707 Total expenditure on charitable activities 485,728 402,983 £353,55812024'. £229,752) of the above expenditure relates to restricted funding. b. Staff Costs 2025 2024 Gross salaries and wages Social security costs Pension Costs 341,231 26,017 9,409 289,667 20,496 8,296 376,657 318,459 c. Particulars of employees: The average number of employees during the period was 13 (2024.- 10), and calculated on the basis of full-time equivalents, was as follows: 2025 10.65 2024 11.00 Charitable activities 18
MERSEYSIDE LAW CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 No employee received emoluments of more than £60.000 during the year (2024.. Nil). The Trustees, being also the Directors of the Company, are not remunerated for their services and are not included in the above number of employees. No out-of-pocket expenses were reimbursed to trustees in the year. 5. Tanglble fixed assets Computer Equipment Fixtures and Flttings Total Cost Balance at 1 sl April 2024 Additions 3.335 2,436 2,538 5,873 2,436 Balance at 31st March 2025 5,771 2,538 8,309 Accumulated Depreciation Balance at 181 April 2024 Charge for the year 1,036 681 541 399 1,577 1,080 Balance at 31st March 2025 1,717 940 2,657 Net Book Value at 318t March 2025 4,054 1,598 5,652 Net Book Value at 31st March 2024 2.299 1,997 4,296 6. Debtors 2025 2024 Work in progress Prepayments Other Debtors 65,582 701 17,000 52.456 516 48,576 83,283 101,548 7. Creditors: amounts falllng due within one year 2025 2024 Creditors and Accruals Other Creditors VAT Taxation and social security Pension 5,613 1,200 1,003 6,960 1,617 2,344 1,200 1,532 15,206 3,191 16,393 23,473 19-
MERSEYSIDE LAW CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 8. Creditors: amounts falling due more than one year 2025 2024 Other Creditors 52.222 53,422 other creditors consist of Legal Aid overpayment being repaid £1,200 per year. 9. Analysis of net assets between funds Tanglble Flxed Assets Net Current Creditors Assets due more than one year Total 2025 Unrestricted Funds General Fund 3,437 292,653 (52,222) 243,868 Designated Justice Together Trainee Welfare Benefits Post 42,709 15,000 42,709 15,000 3,437 350,362 {52,222) 301,577 Restricted Funds Access to justi Foundation Albert Hunt Trust Independent Age John Moores Foundation Legal Education Foundation Our Liverpool P H Holt Foundation 1,029 3,281 8,000 24,595 2,500 4,310 8,000 25,188 2,500 593 46,192 7,500 593 593 46,192 7,500 2,215 92,068 94,283 Total Funds 5,652 442,430 (52,222) 395,860 -20-
MERSEYSIDE LAW CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 Tangible Flxed Assets Net Current Creditors Assets due more than one year Total 2024 Unrestrlcted Funds General Fund 4,296 167,252 (53,422) 118,126 Designated Justice Together Trainee Welfare Benefits Post Dovecot Justice Hub 37,687 40,000 40,000 37,687 40,000 40,000 4,296 284,939 (53,422> 235,813 Restricted Funds AC$$ to Justice Foundation John Moores Foundation LCVS Community Impact Fund National Lottery Awards for All Sam and Bella Sebba Charitable Foundation 91,201 667 1,382 7,327 20,000 91.201 667 1,382 7,327 20,000 120,577 120,577 Total Funds 4,296 405,516 (53,422 356,390 10. Unrestricted Funds Movements in the year Reserves at Income Expenditure Beginning of year 2025 Transfer Reserves between at end of funds year General Fund 118,126 167,553 (106,811) 65,000 243,868 Designated Justice Together Trainee Welfare Benefits Post Dovecot Justice Hub 37.687 40,000 40,000 30,381 (25,359) 42,709 15,000 (25,000) (40,000) 235,813 197,934 1132,170) 301,577 21
MERSEYSIDE LAW CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 Movements in the year Reserves at Income Expenditure Beginning of year 2024 Transfer Reserves between at end of funds year General Fund 109,410 218,443 (129,727) (80,000) 118,126 Designated Justice Together Trainee Welfare Benefits Post Dovecot Justice Hub 36,207 44,984 (43,504) 37,687 40,000 40,000 40,000 40,000 145,617 263,427 (173,2311 235,813 General Fund is used to finan the charitable company's general activities as outlined in the Trustees, Report. Designated funds are set aside for new trainee a new employee and new project due to start in year end 2025 Transfer of funds is the movement of the designated funds 11. Restricted Funds Movements in the year 2025 Reserves at Beginning of year Reserves at end of year Income Expenditure Access to Justice Foundation Albert Hunt Trust Independent Age John Moores Foundation LCVS Community Impact Fund Legal Education Foundations Liverpool City Council Community Recourse Grant National Lottery Awards for All Our Liverpool P H Holt Foundation Sam and Bella Sebba Charitable Foundation Steve Morgan Foundation 91,201 168,428 8,000 42,131 10,000 (255,319) 4,310 8,000 25,188 2,500 (16,943) (8,167) (1382) (4,407) (12,500) (7,327) 667 1,382 5,000 12,500 593 7,327 46,192 7,500 46,192 7,500 20,000 {20,000) {27,513) 27,513 120,577 327,264 1353,558) 94,283 -22-
MERSEYSIDE LAW CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 Movements in the year 2024 Reserves at Beginning of year Reserves at end of year Income Expenditure Access to Justice Foundation Albert Hunt Trust John Moores Foundation Law Centre Nelwork LCVS Community Impact Fund Liverpool City Council Community Recourse Grant National Lottery Awards for All National Lottery Community Fund Sam and Bella Sebba Charitable Foundation Steve Morgan Foundation 149,419 7,000 8,000 {58,218) (7,000) (7,333) (7,500) (1,858) (25,000) 91,201 667 7,500 3,240 25,000 1,382 7,327 7.327 55,524 40,000 27,319 (55,524) (40,000) (27,319) 20,000 20,000 34,827 315,502 (229,752) 120,577 These are monies given to the charitable company to be spent at the discretion of the Board of Trustees for specific charitable purposes. Access to Justice Foundation - Contribution towards social welfare advice and specialist legal welfare advice Albert Hunt Trust- Contribution towards advice service Independent Age- Support older people in financial hardship advi John Moores Foundation- Contribution towards essential computer support Law Centre Network - Contribution towards advice seNice LCVS Community Impact Fund- Contribution towards laptops for volunteers and new office space Legal Education Foundatlon- Contribution towards trainee solicitors, salary and oncosts Liverpool City Council Community Recourse Grant- Contribution towards advi service National Lottery Awards for All- Contribution toward multilingual translation services. National Lottery Communlty Fund - Contribution toward Cost-of-living project Our Liverpool- Contribution towards support for people seeking asylum, refugees and vulnerable migrants. P H Holt Foundation- Contribution towards volunteer equipment Sam and Bella Sebba Charitable Foundation - Contribution towards immigration advice Steve Morgan Foundation - Contribution towards an assessment and triage worker in the Dovecot office. -23-
MERSEYSIDE LAW CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2025 12. Lease Commitments Merseyside Law Centre has a lease agreement with Kuumba Imani Millennium Centre Limited for three years for the period of 1st March 2023 to 28th February 2026. Plus, Dovecot ma¢ for one year for the period of 181 September 2024 to 315t August 2025. 2025 2024 Due 1 year Due 1 to 2 years 22,260 15,260 15,260 22,260 30,520 13.Conting8nt Liabilities The Charitable Company did not have any contingent liabilities at 31 $1 March 2025 and 31 St March 2024. 14.Relatsd Party Transactions There were no material related party transactions during the yearwhich require disclosure. 15.Guarantees As at 31st March 2025, 5 members had given a guarantee of £10 each in the event ofthe charitable company winding-up., total: £50. (2024: 5 Members £50) 16. Cash generated from operations 2025 2024 Surplus for the year 39.470 175,946 Adjustments for: Depreciation Loss on disposal of tangible fixed asset 1,080 1,078 Movements in working capital: (Increase)Idecrease in debtors Increasel{decrease} in creditors Increasel{decrease) in creditors due more than one year 18,265 (7,080) (1,200) (53,646) 2,513 (1,200) Cash generated from operations 50,535 124,708 -24-