Charlty R•gl$tratlon No. 265703 Compary Reglstratlon No. 01095065 {England and Wales) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 L.A.G. EDUCATION AND SERVICE TRUST LIMITED tc accounts. tax. legal . financial planning 76 New Cavèndish Street London W1G 9T8
L.A.G. EDUCATION AND SERVICE TRUST LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Trustees Julian Allen Dr Laura Janes {Chair) Sonia Kalsi Ojiver Flivers (r¥srer} Russell Conw8y Angela Patrick Heather Thomas S•crotsry OINer Rivers Charlty number 265703 Company number 01095(5 Principal ddroSS cIc Oliver Fisher Royalty Studios 105-109 Lancastsr Road London W11 1QF Regi5tor•d offic• clo Oliver Fisher Royalty Studios 105-109 Lancaster Road London W11 1QF Auditor TC Group 76 New Cavendish Street London W1G9TB
L.A.G. EDUCATION AND SERVICE TRUST LIMITED CONTENTS Twslees, rekx)rt Indendeftt audit$ report Statement of financial adilIeS Statement of financial positi 10 Statement of cash fl 11 Notes to the ffinancial slatemerrts 12-25
L.A.G. EDUCATION AND SERVICE TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020 The trustees, who are also directors of the tharity for the purposes of the Companieg Act 2006. have pleasure in pSentIng their Report and the Financial Statements for the year ended 31 December 2020. which are also prepared to meet the qUIreMerts for a directors. rèFK)rt and financial siatement$ for Companie5 Act purposes. The financial statements have been prepad in accordance wth the accounting polioe$ set out in note 1.1 of the financial statements and comply wth the Gharrty's Memorandum and Artides of Association. the Companie5 Act 2006 and "Accounting and ReportiThJ by Charities.. Stslemenl of Recommen¢Jed Practice applicable to charities pparing their ac¢ount$ in aco)rdance the Finanaal Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 2019).. strltUre, govemance and management Goveming document L.A.G. Edu¢abon and Service Trust Limitèd I'LAGI is a company limited by guarantee and a registered chanty, incorporated on 8 Fetxuary 1973, wmpany nwiber 01095065, and wi51ered a5 8 charity. number 265703, on 21 June 1973. The MpanY was established under a Memorandum of Association. vthich established the objects and powers of the charitable company and is governed under its Articles ofAssociation. The tnjstees The trustees. who are also the directors for the purpose of company law. and who served during thE year were.. Julian Allen Dr Laura Janes (Chair) Sonia Kalsi Oliver Rivers ITrea5urerl Russell Conway Angela P8lri¢k He8ther Thomas Appointmgnl olttuslees Recruf(ment to the tnjstee board is by eleth'on and co-opts'on. At the 2020 Annual General meets.ng IAGMI. the trustees on the board vtho had served for tJ¥o year5 resigned and elections were held for new trustees. The Memorandum and Artides of association provided for 11 trustees tr) be ele¢ted 7 to be cLwpled. Angela Patri&. Ru$seU Conway and Oliver Ri¥ers were wlected to the board. Organisational stnjcturs and deusAon making LAG Is both a regisleied charity and company limited by guarantee. A board of $even tru$tee$ and directors is responsible for the govemance and strate9ic management of Ihe organisation. Board members are elected at an AGM of all members arKI meel every months thrWout the year. A gtsff team of six is managed by LAG'S chief executive officer. There are heads of department.. Publishin9 Direcioi and Finance and Admin Manager". and Leg31 Action Editor. These post holders are responsible for managing department budgets. PaypolKy kJrseniorsf8ff All trustees. who are also direclors. give Iheir time freely and none of them received remuneration in the year. The pay of the Chief Exewtive Officer ("CEO") ig revie*Ed annualty, abng with staff salaries.
L.A.G. EDUCATION AND SERVICE TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 ObJ&¢llves and actlvities LAGS charitabl& objective To promote and advance education and krtovAedge of Ihe law in the United Kingdom and secondly to relieve poor persons in the United Kingdom by promoting and assisting vthh the promsion of legal services which would nol otherwse be available to them through of mean$. LAG s Vision Our vision is a fair legal syslem that exdudes no one. uphohjs equalty and sockql justice, and meets the needs of the people it serves. Legal Action Group supports and empovrs those provKYing kgal seN¢es anrj using the law to achieve ju$ti¢e for those vtho are disadvantaged, unable to speak for themselves LY stnugle Ig b¢ heard, by: PuNishing and di$seminatiThJ accets4e. high quality. aulhl13tive and up to dale legal information and knoedge. Delivering education and training and creating opportunlties for the exchange of klea$. Being an authorit've vorce speaking up forjustice and improthng law and practice. On this basis. the Trustees confimi that they have complied vhth the duty in seth.on 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefft. strateg aims LAG is a spected commentator on legal aid and aceess to juslice isyjes. magain¢ Legal Aclion 18 the main outlet for our policy messages to achieve our Vision. Both the specialist legal media and the wider prinl and broadcast medi8 perceive LAG as one of the leading eommentators in this area of work. LAG'S strategic aims in line wrth our vision are as folloYaV5= Strategic aim l.. Publish and disseminate accessibte. hvJh quality. aulhoritative and up to date legal information and kno%edge. Strategic aim 2." Ddiver edutIOn and training and uealing opportunitse$ forthe exthange of ideas. Strategic aim 3: Be an aulhorttative vote spe8kOng up forN1sti and improving law and practice. Duilal slrategy A major part of the work of LAG is the publication of information on the law lo in¢re8se knovAedgÈ of legal rights. Most of the charity's income is derived from the sale of publications. In 2020 LAG urgenljy had to adapt to the ¢ircum51ances of the pandemic and the move to hoMe-¥n9. The was achieved by insreased focused on the availabilsty of digitsl produ¢t$ and development of mutti-user licences for large organisations. L4G also provided a service to laerS and the advice sector by prowding up lo dale COWD-19 legal resources and making these wdely available. induding for free for a certain period of time. The training and even15 programme was completely reorganised online training courses devekjped and we ended thè year having provided training lo over 1000 delegates. The main priority of LAG'$ Board of Trustees has been to urgenty address LAG'S financial position in particular to assist in reluming the charity to a trading surplus. LAG conb.nues lo follow the recommendations in the Oxford Br(yJke$ reports of 2016 and 2018. ntred on the implementation of a digiial first strategy for LAG'S publications to increase income and to prowde an improved seNice to our •er$. Slatemenl on Complian with Chai*y CommiSsn guAlance The trustees have paid due regard to guidanee issued by the Chanty Commission in deading what actiwties the charity Should undertake.
L.A.G. EDUCATION AND SERVICE TRUST LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2020 Achlevements and perfornianc• LAG'5 COMMeral activities in publicatiS arbd training meet the oty'eth've$ of in¢agn9 knoN%ledge of legal rights. particularfy in those areas oflow that have the 9atest imp8¢t on the wlner8ble and socially excluded Istralegic aim 11. LAG ntsw putrAishe$ over fifty book8 on law. The sale of these provide5 the largest source Df revenue for the charity. Much of the activity of the chanty is carried out lo expand the market for LAG'S products and to maintain an elTiaent and sdvent business Istrategic aim 11. AI a available in print and duilal fornial and available to buy as'bundles, of printldigiial. Publishing New ediliony of LAG'S books were published induding Legal Aid Handbook 2020nl, Defending Suspecls at PolKe statn$ and ManLtal ofHousing Law New tides were developed and LAG published new t>ooks including Adolescent Men181 Health Ca and thg Law, Cluslered InjustKe and Ihe levelgreen and Justice Mattets. Ten editions ol Legal AclM)n magaJne Yre published. We contsnue to operate a digital-fiist pdicy whereby magazine content is published online as soon as it is edited and eeted out to LAG'S followers. Responding to customer demarbd. the magazine is now available to 5ubscriber5 as a pdf in the 'Archive' section of the website. L4G responded to the pandemic and new working relationships for Practsboners by offering all COV1[reld wtsnt for free online during the first lockdown, including law and practice Communily Carg Law Reports (CCLR) We published wwterfy in print and online. Training Events As the pandemic hit in March we wEre unable to run any of our usual training and events programme in 2020, though by September we had successfvlly Set up a programme of online training to be delivered online. These events induded training on Inquests, Introduction and Advanced Acllons Against the Poli¢e, all of vkni¢h ex¢ee(Jed delegate numbers from previous years. LAG also ran a number of online seminars and book launche$ 1¢h were free to attend which $ignffjcanUy enhanced the reach of the books, inceang sases and exposure. The continuing dedine in the number of legal aid providers is Ihe main threat to LAG achiewng 11$ objectives. The ¢tion in charrtable advice and legal aid sector. due lo ujts in legal aid rates. local govemment and other public spending, as %%ell as the strain caused by COVKI, is another significant threat tD LAG achiewng ils slregi¢ objectives. The shrinking market for our publications though, has led to the withdrawal of t>)mpetitors from the market and an increase in the need for r)ine publications. LAG has regponded well to this need." increasing on4ine publicions and the prowsion of mulb'_user licences Key Perfomance Indicators {KPI) for LAG'S acb"wb"e$ are.. Increase in variety and sales of pUblatnS measured by addbtsons lo existing backlist of products and lumover., Increased revenue from courses and conferences.. Successful implementation of the digitsl Strategy induding adoption of and succetsful use of new accounting and CRM sOfAre. Media profile of the ¢hairty measured by coverage of L4G's policy mes5age5 in the speciali51 and mainstream media.. So¢i¥l me<lia profile meosuw by ¥ble Iraffic and Twitterand Facebook folloErs.
L.A.G. EDUCATION AND SERVICE TRUST LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 Flnanclal revlew LAG incurred an unrestri¢teiJ surp$ of £1 S,513 (2019.. £80,524) for the year and has a combined total surplus £108.61312019= £75,889) in restricted and unrestricied balances al Ihe year end. The Chief Exetkn"ve Officer and Finance Manager continue to d05dy Vith LAG'S Treasurer to ensure the finanaal stability of the charity. This is achieved by produung regular management accounts and cash flow projections to identify any future rash flow problems 50 that action can be taken beforehand lo ensure the survival of the charty. Regular meetings take place beMEen department heads to identfy changes to proposed budgeted inwme and expenditu. Reserves ptsltcy Reserves are hekj to provide SLfficient worknng cakvlal to cover season81 and cyclical fluctuab.ons In trading and to proled against any drop in income. The trustees. longerlerm aim is to hold a Fevel of unrestricted fund$ that are not designated or invested in tangible fixed assets (the free reser¥esl, vthi¢h is not le$$ than one half of the resources expected to be expended during the following months. The totals funds held in reserves at 31 December 2020 are £108.613 (2019." £75,889)_ Of this arnount, unrestricted funds showed a surplus of £76.003 (2019.. surplus of £60.490) whife restricted fvnds showed surplus £32,61012019.' surplus of £15,399). Risk man8g8menl The Iruslees have reviewed the major business. financHI $tr¢gi¢ ri$k$ to the charity 15 exposed and ¢onfimi that steps have been tsken to mitigate those risks. The main risk to the organisation 15 the wnthnuing dedine in the numbers of firms and organisations undertsking legal aid work and the narrong of ihe margins on the remaining fimis operate. as these firms are LAG'S main customers. Ott)er customers such as local authorities are 8190 operating in difficult financial circumslance5. A second major risk is the availabilrty of capitsl. The charity ha5 mibgated this risk by incfeasing its unrestricted reseryes. Coslg are kept under constant remew and new markets are beirrfj developed for the trading activf(ies. In 2020 the Covid-19 pandemic and the economic ¢onsequen¢es of lo¢kd(yffi Nsere llol anlKipaied but vhile this could have been a severe test of LAG'S resilience the move to digital has obviated the Y)rSt effects ol the changed enwronmenL Plans for the future Below a some of LAG'S plans for 2021 and fer ahea(l." LAG plans to expand its incc¥ne and reach through the e$ of digital products a$ well as printed publications. The digital first strategy continues to be implemented to ensu Ihe kjng terni future of the charity. To develop a broad training programme. both onvline and in person when p0sbIe. LAG will be actively exOring options to secure new premises that wll enable a blend of home arKI office wrking. LAG wll tsjntinue to raise its profile as a commentator on kgal aid and a($9 lo justice. through the Legal Actjon Magane and other media ouuets and lo play a leading role in campaigniThJ on acces$ to justice. Key wiorities for the magazine indude increasing the proportKJn of young subscribers - trainees. pupils and students by tailoring content io those age groups as well as marketing to them more effectivdy. The Magane is also keen to expaThJ its pool ol a(rthors so that wo have YOuer and more diverse ve4ces in the mayane. We will prioritlse NK)rking Yith partners to maximise our impacl and *fjll posf(ion the charity lo play an adive part in leading debate on the ¢Jevelopmenl of the law. eontsntrating on our core areas of Civil law. housing, employrnent, communty care, immigration and public law induding mental heath. To use the 50th anniversary lo enhance and strengthen LAG'3 profile. LAG'S new CEO wll oversee a review of its current structure and practices to ensure they are best suited to meeting the obj'ectives of the charity.
L.A.G. EDUCATION AND SERVICE TRUST LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Stal•m8nt of Trustees. responsibilities The Irustees, who are also the direclors of L.AG. Edtion and Service Twsl Limited for the purpose of company law. are responsible for preparing the TnJstees' Report and the financial statements in accordance th applicable 18w and United lthngdom Aeeounb"ng Standarfjs Iunrted Kingdom Generalty Aecepted ACcOLting Praclicel. Company Law requires the tnjstees to prepare financial statements ts each finanaal year which give a true and fair view of the stste of affairs of the Chanty and of the incoming resources and applicab.on of sources, induding the income and expendrture. of the charitable company for that year. In preparing these financial statennts. the twstees we requ1 to.. - select suitable account9 poliues and then appty trm con5iStenty,' - observe the wwEthod5 and principles n the chanb.es SORP.. - makejtthygements and estr"males that are reasonable and prudent., - Stsle whether applicable UK Atxounting Standards have been fdk)wed, s1}e¢l to any material departures disclosed and explained in the financial statements.. and - prepare the financial staternents the gn9 concem basis un]ess it is inapprcwate to presume that the charity will continue in operation. The trustees are sponSible for keeping adequate 8ccounb.ng recd$ that disclose wth wsonable accuracy at any time the financial px)srtion of the tharity and enable fhem to ensure that the finane4al statements eomply with the Companies Act 2006. They are also responsible for safeguarding the assets of the tharty and hence for taking reasonat4e step5 for the prevention and detection of fraud and other irregukrities. Auditor TC Group w?re appointed as au&rtorto the company and a $dUtION proposing that they be re-appointed wll be put at a General Meeting. Disclosur• of infomiation to auditor Each of the iru5tees has confirmed that there is no inforrna of V*fiich they are aware wthich is relevant to the audit. but of sthich the auditor is unaware_ They have further confimed Ihat they have tsken appropriate steps lo identify such relevant informalion and to establish that the auditor is aware of such information. The Trustees, report was approved by the Board ofTwslees. Oliver Rivprs (TreasuTrr Trustee Dated.. 20 July 2021
L.A.G. EDUCATION AND SERVICE TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF L.A.G. EDUCATION AND SERVICE TRUST LIMITED Oplnlon We have audited the finanal stements of L.AG. Edui"¢)n aNJ SeNi¢e Trust Lirrite(1 (the '¢hanty'l for the year ended 31 December 2020 ¥ii¢h comprise the statement of financial activities. the statement of financial position, the slatement of cash flows and the notes to the financial statements, inclLTrding a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation 15 applicable law and United Kingdom Accounting Standards, induding Financial Reporting Standard 102 The Financial Reporting Standard AppIable in the UK and RepublK of Iland (Unrted Kingdom Generally knepled Accounting Practice). In our opinion. the financiat slatemenls= give a true arKI fair view Of the stale of the charitable company's affairs as at 31 December 2020 and of its incoming resources and apICabOn of resources. for the year then ended" have been propedy pcepared in accordance ryth United l("ngdom Generalty Accepted Arwunlng PraCte., have been prepa in ac¢(¥dance wlh the requirements of the Companies Act 2006. Basis for opinion We conducted our awjit in accorda Inlemational StarKlards on Auditing (UK) IISAS (UK)) and applicable Jaw. Our responsibilities under Ihose standard$ are further desgibed in the Audiloe5 responsibilities for the audit of the financi815talemenls section of our report. We are independent of the charity in accordance vmh the ethical requirements that are relevant to our audit of the finanual st*ements in the UK, induding the FRC'S Ethical Standard, and have fuffilled our other ethKal responsibilities in accordance with these requirements. believe that the audit edee have obtained is sufficient aThJ apprwale to prow(k a basis for our q)inion. Conclusions relating to going concern In auditing the financial statements, we have conduded that the Trustees. use of the Ing cOnM basis of accounting in the preparation ol the ffinancial 5tstements is appropriate. Ba$¢d on Ihe we have perfomied. we have not idenb.fied any material uncertaintie5 relakn'ng lo events or condits.ons that. indiwdually or collectively. may cast Slgnificanl doubt on the tharity's ability to continue as a golng CCeM for a peric%1 of at leasi twd¥e InthS from vthen the financial statements are auth)ri5ed for issue. Our responsibilrties and the responsibiliti.es tsf thÈ trustees with respect to gjing concem are descrtled in the relevant seclions of this reporL Other infomiation The other infomiation comprises the infonnation induded in the annual repgrt other than the finanoal ststements and tsur auditorf$ report thereon. The trustees are responsible for the other inf0m1atn contained wthin the annual reporL Our opinion on the financial ststements not cover the other inlomiaD"on and. except to the extent otheThsise eypli¢itty ststed in our report, we do not express any fomi of assurance condusion thereon. Our responsibility is to read the other infomiation and. in doing so. consider %thether the tsther infomwtion is materially inconsistent with Ihe ffinancial statements or our knovAed9e obtained in the course of the audit, or otherwise appears to be materially misstsled. If we identfy suth material inconsistencies or apparent material misstatemerts. we 8re required to determine %•thether this gives rise to a material misstatement in the ffinancial slaternents themselves. If, based on the we have perfomied. we conclude that there is a material mi5Statement of thi5 other information. we are requred to re[ that fact. have nothkng to report In this regard.
L.A.G. EDUCATION AND SERVICE TRUST LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF L.A.G. EDUCATION AND SERVICE TRUST LIMITED Opinions on other matters pr•scribéd by th• Companles Act 21)06 In our opinion, based on the work undertaken in thÈ course of our audit.. the inforniation given in the Trustees, report, vthich includes the djrectors, report prepared for the purposes of company law. for the financial year for Nthich the finanrjal ststemenls are prepared is consistent 41h the rinancial statements. and the directors. report included wthin Ihe Trusiees. report has been prepared in accordance wth applicabte legal requirements. Matters on wthleh arè requlred to report by exeeptlon In the Iwht of the knovAedge and understanding of the charity and its envir¢)nment obtslned in the course of the 8udil. we have not #entiffied material misstatements in Ihe directors, report induded wrfhin the Twstee$' port. We have nothing to report in respect of the fO1fig matters in reLation to vthich the Companies Act 2006 requires us to report to you if, in our opinion: adequate ac¢ounling COrdS have r1 been kepl. or returns athquate for our audit have not been received from branches not visited by us.. or the financial statements are not in agreement wth the anting records and retums., or certain disclosures of trustees, remunerabon spe(?fied by law a not made", or we have not received all the information and exanationS quIre for our audrt". or the trustees weie not entided to prepare the financial $tstements in a¢cordanL Wh the small companies gime and take advantage ol the small companies, exemptions in preparing the Trustees, report and from the requirement to prepare a Strateg reporL Respon51bllltles of trustees A$ explained more fvlly in the statement of Truslees. responsitAlthes, the trustees. vA)o arè also the direelors of the charity for the purpose Qf ¢ompany law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for sh intemal ntrc4 as Ihe Iruslees deterrnine is necessary to enable the pparation of firtan¢ia statements that are free from material misstatement. ether due to Iraud or etror. In preparing the finan¢ial statements. the trustees are tesFonsible frjr assessing the charity's ability lo continue as a going concern, disclostng, as applicable. matters related lo going concem and using the going concem basis of accounting unless the trustees either intend to liquidate the charitsble Company or to ¢ease operations, or have rbo realistic altemative but to do $0. Audltovs rg$ponslbllltlgs for th• audlt of th• financi•l ststements Our objectives are to obtain reasonable assurance about Nthether the financial slatements as a bthole are free from material misslalemenl. vknether due to fraud or error. and to issue an audrtof$ POrt Ihat includes our opinion. Reasonable assurance 1$ a high level of assurance but 15 riot a guarantee that an audit conducted in accordance yth ISAS (UK) will ayS detect a material misstatement when it exists. Misstatements can arise from fraLKI or erTor and are consTrdered material rf. indimdually or in Ihe aggregate. they could reasonably be expected to influence the eCon1C decisions of users tsken on the basis of these financial ststemenls. Irregularities. including fraud. are Instsn$ of nortrmPlI3nCe 7thth laws and regulaD"ons. The extent lo vthich our procedure$ are ¢apable of detecting iffegulaiitieg. induding fraud. is delailed below. Extent to lhthlch th• audit considered capable of detectlng 5rregularltles, includlng fraud The objectives of our audit, in respect to fraud, are.. lo idenlty and assess the risks of materi81 misglatement of the financial stslemenls due lo fraud." t¢ obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud. through designing 8nd implementsng appropriate responses,. and to respond appropriately lo fraud or suspected fraud identified during the audit However, the primary responsibility for the wevention and detection of Iraud rests with both those ch*ge¢J Vlilh govemance of the entity and ils managemenL
L.A.G. EDUCATION AND SERVICE TRUST LIMITED INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE TRUSTEES OF L.A.G. EDUCATION AND SERVICE TRUST LIMITED Our approach was as foll.. We identified areas ol laws and regulations that Could reasonably be expected lo have a material effect on the fin3ncial 5ts1emen13 from our general commeraal and sector experience, and through discussion the directors and other management la$ required by auditing stsndardsl. and discussed wlh the d1Clor5 and other management the policies and prOdureS regarding compliance with laws and regulalions,. We consplered the legal and regulatory framewths direclty applicable to the financial statements reporting framework {FRS 102 and the CompaniesAct 20061 and the relevant tax cgmpliance regulations in the UK.. We considered the nature of the industy, the control enwronment and bLrsiness perfomiance, including tho key drivers for managemeni'$ remuneration- Vve comrnunicaled Idenbfied laws and regulations Ihroughoul our team and remained alert to any indications of non-compliance throughout the audit", Vve considered the procedures and controls that the company has established to address risks identified, OT that otherwse prevenL deter and detect fraud". and how senior management nnItOrS those programmes and control$. Based on this understsnding we designed tr audrt procedures to Nlentify nonwcompliance wth such laws and regulations. Where the risk was considered to be hher, we performed audit procedures to addre55 each identified fraud risk. These proce<lures included.. te$b"ng manual Joumals,. reviewing the finanual statement disclosures and testing to supp)rbng documentation". perfomiing analytiCAI procedures.. and enqviring of management, and were de51gned lo provid? reasonable assuran that the finanaal ststemenls were free from fraud or error. Owing lo the inherent limilalions of an audiL there is an unavoidable risk that we may nol have detected $ome material misstatements in the financial statements, even though we have property planned and performed OUT audit in accordance wth au"ng standards. For example. the further removed norrfompliance with laws and regulations lirregulariliesl is from the events and Iransadions reflected in the financial stalEmenls, the les5 likely the inherendy limited procedures required by audikn.ng standards wjuld identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment, forgery, collusion, omission or m1¥epsentataon. We are not re5pon5ible for preventing rtor1cOrnplIance and cannot be expected to detect nonvc0mpl1an vAth all lavts and regulabons. A fvrther description of our responsibilitses is available on the Financial Reporting Ctyjncil's website al- https'.11 w.frc.org.ukJOUr-WorkJAudiVAudit-an¢J-assurancelStsndards-anfuidan¢e1Slad3rds-a[kgUidanCe- foraudilorslAuditors-respon5ibilities-for-auditlDescription-of-audttors4esponsiknlthes-for-audit.aspx. This descriplion foms part Df aur auditorfs repJL Us& of our report This pOrt is made solety to the charitable company's members. as a body, in accordance wth Chapter 3 01 Part 16 of the Companies Act 20C6. Our audit work has been undertaken so that might slate lo the charitable ompany's members tFK)se matter5 we are required to stale lo them in an auditors. repK)rt and for no other purpose. To the fullest extent pemiitted by law. we do not accept or assume re$FnsIbility to anyone other than the charitsble company and the charitable wmpany's members as a body, for our audit work. for this report. ¢)r for the opinions we have formed. mark le¥y (Jul 20, 2108..35 GMT411 Mark L•vy Isènlor Statutory Auditty) For and on behalf of TC Group Statutory Audltor Dat• 20 Julx 2021 Office: London
L.A.G. EDUCATION AND SERVICE TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 Unrestrictgd Restrict8d funds funds 2020 2020 Total Unrestricted Restricted funds funds 2019 2019 Totsl 2020 2019 Notes Donabons and legaaes Charitable actMlie5 Investrnent5 14.114 487.174 13 37.725 51.839 487.174 13 11,387 594.692 13.590 24,977 594,692 Total incom8 501.301 37.725 539.026 606,079 13.590 619,669 Ex endlture on: Raising funds 430 430 738 738 Charitsble actiwlies 487.084 18.788 505.872 524.817 38.445 563,262 Totsl resources expended 487.514 18.788 506.302 525.555 38,445 564,000 Net Incomlng resour¢e$ bgfore transfers 13.787 18.937 32.724 80,524 124.8551 55,669 Gross transfers between funds 1,726 (1.726) Net Income for th• yearl Net m¢vem•nt In funds 15,513 17.211 32,724 80.524 {24,8551 55.669 Fund balances at 1 January 2020 60,49) 15,399 75.889 120,0341 40,254 20,220 Fund balances at 31 December 2020 76,003 32,610 108,613 60,490 15,399 75,889 The statement of financial activitieg in(4udes all gains and losses rectsJnised in the year. All income and expenditure derive from continuirvj acbwbes. The sial8ment of financial activities also mplIeS wth the retyiremenls lor an ifiMe and expenditure account under the Companies Act 20C6.
L.A.G. EDUCATION AND SERVICE TRUST LIMITED STATEMENT OF FINANCIAL POSITION AS A T 31 DECEAIBER 2020 2020 2019 Notes Fixed assets Tangible assets Current assets Slocks Debtors Cash at bank and in hand 11 2.546 1.216 12 13 62,561 99,040 109,054 83,686 125,850 21,401 270.655 230,937 Creditor5: amounts falling dug within one year 15 (113.301) (152.1471 Net Current assets 157.354 78,790 Totsl a$sots less ¢urrgnt Il•bllltl8s 159.9 80.0(IS Credltors: amounts lalllng due after morg than ono year 18 {51,287) (4.1171 Net assets 108,613 75,889 Income funds Restricted funds Unrestn'cted funds 18 32,610 76,003 15.399 60.490 108,613 75,889 The finala1 ststements *re approved by the Trustees on 20 Juty 2021 Dr Laura Jane5 (Chairl Trust•e Oliver Rive (Treasurer) Truste• Company Reglstration No. 01095065 10-
L.A.G. EDUCATION AND SERVICE TRUST LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 2020 2019 Cash flows from operating activitias Cash generated froml(absorbed by} operalions 23 40,465 (12,4581 Inv•sting aetivitt Purchase ol tangible fixed assets Investmenl income received {2,8251 13 (9611 Ngt ¢a$h u$od In Invèsllng actlvhles (2,812) 19611 Flnancing a¢tyvltle$ Proceeds of new bank bans 50,fy)0 Not cash generat8d fromllusad In} financing activitie* 50,000 Net increaselldecreasel in cash and cash oquivalènts 87.653 (13,4191 Cash and cash equNalents al beginning of year 21,401 34,820 Cash and ¢a$h oquivalgnts at end of year 109.054 21.401 11
L.A.G. EDUCATION AND SERVICE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Accountlng pollcles Charity inforniation L.A.G. Education and SeNce Trust Limiled is a private company limited by guarantee incorporated England and Wales. The registered office and plsee of business are ejo OINer F15her, Royalty Studios, 105-109 Lantxster Road, London. W11 1QF. 1.1 Accountlng convention The financral ststemenls have been prepared in accordance V+ilh the charity's Igoveming documentl, the Companies Act 2006 and 'Accounting and Reporting by Charities.. Stslemenl of Recommended Practice applicable to charities preparing their accounts in accordance wth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 20191. The charity is a Public Benefit Entity as defined by FRS 102. The financial stslemenls are prepared in slerfing. whh is the funcliona currency of the charity. Mtsnetsry amounts in these financial ststements are roundefj to Ihe nea$1 £. The financial statements have been Prepa under Ihe histon.cal cosl convention. The principal a¢UntIng wlioes adcyted are set t Lth. 1.2 Going concem Al the time of apwoving the financial statements, Ihe tmstees have a reasonable expectation that the charity has adequate resources to conlinue in operational eStenCe for the foreseeable fvture. Thus the trvslee5 ojntinue to adopt the going concem ba%s of accountiThJ in preparing the financial ststements. 1.3 Charltable fund8 Unreslrided funds are available for use at the discretion of the trustees in futherance of their charitsue objectNes. Restricted funds are subject to specific conditsons by donors as to ht)w they may be used. The purposes and uses of the restricteil funds are set OLrt in the notes to the financial siatements. Endowment funds a Subject to specrfic C0ndrtnS by donors that the capital must be maintained by the charity. 1A Incoming rèsources Income is recognised %%then the charity is legally enb'led lo it after any performance condOn5 have been mel. the amounts can be measured reliably. and il is probable that income VMII be received. Cash donalms are recognised on receipt. Other donations are re¢cgnised on¢e the Charity ha$ been notified of the don8tion. unle$$ perf¢m8nce conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gfftd or deeds of covenant is recognised al the lime of th& donation. Income from grants is recognised the charity has entrtlement to the fvnds. any perfomiance conditions aitached to the grant$ have been met it is probabte that the income wli I be received and Ihe amount can be measured liablY and is not delerred. These grants tend lo be for specific purposes, for example. the writiro of a reporL and are therefore treated as restn'cled funds. Income received for ftrture courses and LÈgal ACtn magazine and CCLR subs¢ripb'ons received in advance a deferred until the charity is entitled to these amourrts. The amounts are released to the statement of financial activities in the period to which it relateg. 12-
L.A.G. EDUCATION AND SERVICE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 A¢c¢unting polic (Continued) Income from L8gal Atttion magazine arKI CCLR sales are apportioned evenly over the ped of the subscription. The charity offers subscription lengths of either 1 year or 2 years. Income from book sales are recognised in the monlh of $ale. Interest is included when receivable by the charity. 1.5 Resources expended abilitses are re¢ognised as eynditure as soon as there is a legal or constructbve obligation MMItn9 the charity to that eXpendre. it is Pfobat4e that setuement wll be required and the am(yJnt of the obligation can be measured reliabty. Al expenditu is accounted for accwals basis. indusive of any VAT wfiich camot be recovered. All expenses including support costs and govemance ¢osts are allocated c)r apportioned to the applicable expenditure headings. Certain expendilure that can be directly attributable to specrhc activities has been induded in those cost categories. Certain other costs, which are attn'butable to more than one activty. a apporb.oned a¢rog9 Cost categorie5 on the bS of an estimate of the Froportion of time spent by staff on those activities. The olrect costs of funth•sing a¢tsvitse$ and the WOFQrti¢)n of overheads requi lo support these activib'es. Govemance costs a those >rurd Mi the govemarKe of the chanty are primarily associated wlh constitutional and statutory requirements. SUP costs are those expenses iTe(l Io supw the oCtNities in fvrlherance ofthe charity's objects. 1.6 Tangible fixed assets Tangible fixed assets are iniiiaty measured at cost and subsequentty measured at cost or valuation, net of depceciation and any impaimnt losses. Depreciatlofl 15 recognised so as to ATite off the cost or valuation of assets $$ their residual ¥atr$ over their useful Ives on followng bases: Fixtures and ffttings 33.33% strahlINIe The gain or loss ariwng on the (lsposal of an a$5et is ¢Jelemined as the tjifference befven the sale proceeds and the rying value of the asset. and is recognised in net incomellexpenditurel for the year. 1.7 Stocks Stocks a stste¢J at the lower of cost and estimated selling price less costs to compleie and sell. Cosl comprises direct materials and. %there applicae. direct labour Costs and Ihose overt)ead$ that have been incurred in bringing the 3lock$ lo their present location and condition. Items held for distribution at no or nomina consideratson are nRasured t ltyr of placement cosl ¢o$L Nel reali5able value is the esbmated selling wce 311 estimated costs of completion and costs lo be incurred in marketing. selling aK1 distn"tKrtion. 1.8 Cash and cash equivalènts Cash and Cash equivalents inchjde cash in hand. deposits held at eaN 1th banks. and bank overdrafts. Bank overdrafts are shovm within borrow7ngs in Guent liabilitie5. f3-
L.A.G. EDUCATION AND SERVICE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Accountlng po15cles (Continued) 1.9 Financial instrum•nts The charity has elected lo apply the provisions of Section 11 'Basi¢ Finanaal Instruments. and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its fjnanryal instruments. Financtal instruments a recognised in the chanty's balance sheet then the charity becomes party to the contractual prowyons of the instrumenL Financial a$set$ and liabilities are offset. wilh the net anufits presented in the ffinancial statements. en there is a legalty enlorceable right to sel off the recognised anUnts and there is an intention to seltle on a nel basis or to realise the asset and settle the liability SimultaneouY. Basic financialassets Basic financial a55ets. %thith indude debtors and cash and bk balances. are initially measured at transaction price including transaction costs and are subsequenuy carried at amortised cost usirvJ the effective interest method unless the arrarKJemenl I>)n"tuteS 8 financing Iransadion, vh)ere the transaction is measured al the present value of the hjture receipts discounted at a markel rate of interest. Finandal assets classified as receivable wtthin one y?¥r are not amorb"sed. Basic financial lialjilities Basic finan¢ial liabilth'es, induding ueditors and loans are initially recognlsed at transaction price unless the arrangement constitutes a financing transaciion. vthere the debt instrument is measured at thE present value of the future payments dlsctxjn(j at a market faie of rte$t. Finanti81 li8ts"lits"es dassified as payable wthin one year are not amortised. Debt instrument9 are $ubsequenUy carried at amorhsed cost. using Ihe effective inleresl rate method. Trade creditors are oblig*rons lo pay for gocK15 or services that have been acquired in the ordinary course of operations from suppliers. Arnounts payable are classified as curreni liabiltbes if payment is due wlhin one year or less. If not. they a psented as non-cUenI liabilities. Trade creisitors are recognised initialty at lransacts.on pnce and subsequentty measured at amortised cost using ihe effecttve interest method. Derecognltlon of Ilnan¢lal liabilities Finan31 liabilities are deTecognised vthen the charity's C<traCtUal obligab.ons expire Dr a discharged or cancelled. 1.10 Employee beneffts The cost of any unused holiday entiuement 1$ rectraTh$ed in the period in vthich the employee's services are Ceived. Temiinalion benefi15 are recognised immediatety as an expense Nthen the charity is demonstrably committed to leinwnate the employment of an employee orto provide tem)inab"on beneffts. 1.11 Rgtirem•nt nefitS Payments to defined contribLrtion retirement benefft schemes are charged a$ an expense as they f811 due. 1.12 Lease5 Rentsls p8yable under operating leases. induding any lease centiveS received. are charged a$ an expense a straight line basis over the lemi of the levant lea9e. 14-
L.A.G. EDUCATION AND SERVICE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DEGEMBER 2020 Accounvng policlos Icontlnuedl 1.13 Gov•mment grants Government grants are recognised at the fair of the asset received or receivable %then there is reasonable assurance that the grant ¢ondth"ons wll be met and the grants 11 be received. A grant th spe¢rfies pert0mlan ¢ondrfion$ is recognised in income when the perfoman¢e condiliong re mel. There a grant does not specify perlorniance conditions it is recogni5ed in income vknen the proceeds are received or receivable. A grant received befo the recognition criteria are satisfied is re¢e4Jnised as a liability. Crftlcal accountlng estlmates and judgements In the application of the ch8rits accounting policies, the trustees required to make judgements, estimates and assumptions about Ihe caryying amount of assels and lia11eS that are not readily apparent from other sources. The estimates and assooated assumptions a based on historical expefjen¢e and Dther factor# that Ère considered to be relevant. Actual results rnay drfer from these estimate5. The esb"males and underfying assumpb'ons are reviewed on an OoIng basis. Rewsions its accounting estimates are recognised in the perithy in which the estimate is revised ere the revision affects only that period, or in the period of the reM5ion and future periods ere the revision affect5 both cuent and fijture periods. Donatlons and legacies Unrestricted Restricted funds funds Total Unrestricted Restricted fvnds fvnds Total 2020 2020 2020 2019 2019 2019 Donations and grft$ Grant income Membership fees 4,820 32,905 12.340 33,634 3.610 3.610 13.590 7.777 729 5,865 13,5gJ 7,7TT 14.114 37.725 51.839 11.387 13,590 24,977 Donations and gifts Other 7,520 4.820 12.340 3.610 3,610 7.520 4.820 12.340 3,610 3,610 Grants receivable for ore activilies Other 729 32,905 33.634 13.590 13.590 729 32.905 33.634 13.590 13,590 15-
L.A.G. EDUCATION AND SERVICE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 Charltsble actlvldes 2020 2Q19 LegalActffon Magazi $ale5 Book sales Course$ income 146,027 307.997 33.150 157,435 363,963 73,294 487.174 594.692 Invostm8nts Unre$trlcted funds 2020 2019 Interest receivab Ralsing funds Unrestrlcted Unrestricted lund$ funiys 2020 2019 an Other fundraising costs 430 738 430 738 16-
L.A.G. EDUCATION AND SERVICE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2020 Charitable activities PublICa0Th Pollcy & & courses educatlonal Tatsl Publl¢atlon Poll¢y & 2020 & courses educatlonal work 2019 Total 2019 2020 2020 2019 Staff costs Depreciation Other direct costs 191,017 2.952 1,495 15,356 193.969 1.495 221.068 176.653 619 1,020 37,826 177,272 1,020 283,088 205,712 245.262 396.729 19,803 416,532 421,915 39,465 461,380 Shale of support costs l$ee note 81 Share of governance costs l$ee note 81 22.939 9.587 32,526 40,619 7.376 47,995 56.814 56.814 53.887 53,887 476.482 29.390 505.872 516,421 46.841 563,262 Analy515 by fund Unre5tncted lunds Restricted funds 476.482 10.602 18.788 487.084 18,788 516.421 8,396 38,445 524,817 38,445 476,482 29,390 505.872 516,421 46,841 563.262 17-
L.A.G. EDUCATION AND SERVICE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEAIBER 2020 Support costs Support Govemance costs 2020 Support Govemance costs sts 2019 Staff co$1$ Office costs Telephone Postage and $tglionery Cpmputer supp(Ht costs Bank charges Sundry expenses Membership costs Bad debt write off 49.164 49,164 7,876 455 767 3.390 1.6TT 12.991 1.036 4,334 46,109 46,109 20,900 697 589 3,467 2.524 17.201 1.883 734 7.876 455 767 3,390 1.677 12.991 1.036 4.334 20.900 697 589 3,467 2,524 17.201 1.883 734 Audit fee$ Co81 of meetings 7.650 7.650 7.700 78 7.700 78 32.526 56.814 89,340 47,995 53,887 101,882 Analy$e<l betsveen Charitable activib.es 32,526 56,814 89.340 47.995 53,887 101.882 Govemance costs indudes payments to the dittits of £7.650 (2019- £7.700) for au¢Jit lees. Trustses None of the trustees lor any persons nnected them) recaved any remuneralion or benefits from the c*arity during the ye8r. 18-
L.A.G. EDUCATION AND SERVICE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 10 Employe8S Numbgr ol employees The average monlhly number of emOyeeS during the year was." 2020 Number 2019 Number Adminislryalion Publishing EdilorAI Employrngnt costs 2020 2019 Wages and salaries Sooal security costs ¢)her pension costs 211,108 17,494 14,531 193.660 16.283 13.438 243,133 223.381 There were no employees Iose annual remuneration was £60,000 or more. 11 Tangible fixed assets FlxiuTrg andflttlng8 Cost Al 1 January 2020 Additions Disp05a15 9,020 2,825 15,0001 At 31 December 2020 6,845 Oepreciation and impaimient At 1 January 2020 Depreciation charged in the year Eliminated in respect of disposa 7,804 1.495 15.000 At 31 December 2020 4,299 Carrying amounl At 31 December 2020 2,546 Al 31 December 2019 1.216 19-
L.A.G. EDUCATION AND SERVICE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 12 Stocks 2020 2019 Finished goods and goods lor resale 62.561 83.686 13 Debto 2020 2019 Amourts falling due ¥4rythin one year. Trade debtor5 Other debtors Prepayments and aCcnd income 85,839 257 12.944 98,966 10,809 16,075 99,040 125.850 14 Loans and overdrafts 2020 2019 Bank loans 50.000 Payable after one year 50,000 15 Credltors.. amowts falling duo within ong year 2020 2019 Nots$ Other tsxation and gxial security Deferred income Trade cred¢tors Accruals 8.388 52.186 30.019 22.708 5.544 57.158 50.337 39,108 17 113.301 152.147 16 Creditors.. amounts falllng due after more than one year 2020 2019 Noles Bank loans Deferred inwme 14 17 50.000 1,287 4,117 51.287 4.117 -20-
L.A.G. EDUCATION AND SERVICE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 17 Deferred Sncome 2020 2019 Arising from deferred membership subscnptr.ons and course fees 53.473 61.275 Deferred income is incfuded in the finanaal statements as fouows.. 2020 2019 Current liabile5 N0n-¢Urnt liabililies 52.186 1.287 57,158 4,117 53,473 61,275 21
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L.A.G. EDUCATION AND SERVICE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 19 Analysis of net ass8ts b•¢¢n funds Unr•$trlet•d R¢strl¢l*d funds funds 2020 2020 Totsl Unstn.¢ted Restricted luThJs 2019 Total 2020 2019 2019 Fund balanees al 31 December 2020 are represented by.. Tangible assets Current assetsl 2,546 1,216 1.216 157,354 151.287) 32.010 157,354 151.28n 63,391 {4,11n 15.399 78.790 (4.1171 Long temi lialxlikn"e$ 108,613 32,010 108.613 60.490 15,399 75,889 20 Oper4tlng lease Commitments At the reporting end date the charity had outstann9 ¢ommilMts for fvture minirrwm lease payments under noTrFcancellaLle OFeraiing leases. 1¢h fall due as folows.. 2020 2019 Within one year 1,833 21 Legal ststus of th• charlty The charity is a company limited by guarantee and has no Sha ¢afftl. The liatslty of Each member in the event of wndin9 up is limited to £1. 22 Relatsd party transa¢tion$ Romungration of k•y m•nagemont por50nng1 The remuneration of key management person1 is a5 follThvs. 2020 2019 Aggregate compensation 102,030 89,617 -24-
L.A.G. EDUCATION AND SERVICE TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 23 Cash generated from operatlons 2020 2019 Surplus for the year 32.724 55,669 Adjustments for. Investment income recognised in stalemenl of financrdl aclivrUe5 Oepreciatron and impairment of tangible ffixed assets 113) 1.495 1.020 moVents in wothng capital.. Decreasellincreasel in stocks DecreaSel{ift8seI in debtors (Decrease)nerea$e in creditors IDecreasel in deferred income 21,125 26,810 133,8741 17.8021 {19.9931 {38,0811 6.114 {17,1871 Cagh generated fromllabsortjed by) operations 40.465 (12,4581 24 Analysig of Changes in net funds At1 Januiry 2020 Catsh Iltr At J1 O¢eemb¢r 2020 Cash at bank and in hand 21.401 87.653 109.054 Loang falling due after more than one year 150,000) 150.0001 21.401 37.653 59,054 25-