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2023-03-31-accounts

Report and financial statements For the year ended 31 March 2023

Company number: 1302947 Charity number: 268468

Islington Law Centre

For the year ended 31 March 2023

Contents

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 14 Statement of financial activities (incorporating an income and expenditure account) ................... 18 Balance sheet ............................................................................................................................... 19 Statement of cash flows ................................................................................................................ 20 Notes to the financial statements ................................................................................................. 21

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Islington Law Centre

Reference and administrative information

For the year ended 31 March 2023

Company number Incorporated in England and Wales 1302947 Charity number Registered in England and Wales 268468 Registered office and operational address 38 Devonia Road, London, N1 8JH Members of the Members, who are also directors under company law, who served during the board year and up to the date of this report were as follows: Lindsay Edkins Co-Chair Russell Smith-Becker Co-Chair Susan Lee Onika Adams Jemima Joll Resigned 26 May 2023 Michael Collins Paul Lowenberg Steven Lorber Marian Ellingworth Re-appointed 26 May 2023 Key management Stuart Hearne Director personnel Matthew Brown Deputy Director Bankers Lloyds Bank Highbury Corner 31-33 Holloway Road London N7 8JU

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Islington Law Centre

Reference and administrative information

For the year ended 31 March 2023

Solicitors Russell-Cooke LLP 2 Putney Hill London SW15 6AB Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditors Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

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Islington Law Centre

Trustees’ annual report

For the year ended 31 March 2023

The Trustees present their report and the audited financial statements for the year ended 31 March 2023.

Reference and administrative information set out on pages 1 and 2 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

The objects of Islington Law Centre are as follows:

Organisational Structure

The Charity has an active Trustee Board, which meets at least 6 times a year.

Staff team

The Charity employs a team that includes: -

Director and Deputy Director

Supervisors (including solicitors) – 8 covering all areas of the Law Centre’s work Solicitors - 15 Caseworkers – 11 Paralegals- 2 Reception and Referral team – 2 Office Manager – 1

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Islington Law Centre

Trustees’ annual report

For the year ended 31 March 2023

The Cost of Living Crisis

The year has been dominated by the Cost of Living Crisis, but for many of our clients and service users the Cost of Living Crisis in nothing new. We have worked with people and families who have been struggling to make ends meet for many years. What is new if the scale of the crisis facing those on low and middle incomes. Many of the issues now facing the community are the result of previous policy changes brought about during the austerity that followed the 2008 financial crash. In particular, the

changes to housing benefit, the bedroom tax, the cap on benefits and the fact that the local housing allowance no longer meets the costs of housing for many in the community which reduces the available income to support families and children.

Achievements and performance

The charity's main activities and who we assist are described below. The Law Centre is focused on assisting people to overcome the effects of poverty and inequality. All its charitable activities focus on people on low incomes and are undertaken to further Islington Law Centre’s charitable purposes for the public benefit.

Primary activities include : -

All areas of the charity’s activities have been well used by clients and have made an impact during the year.

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Islington Law Centre

Trustees’ annual report

For the year ended 31 March 2023

Reception and Referral Service

6163 reception enquiries

In the year 2022/23, the service dealt with 6,163 enquiries. Our reception is staffed inperson with two receptionists who book appointments and make referrals where the Law

Centre either does not have capacity or does not work in the needed area of law.

Casework, advocacy and representation

The Law Centre worked on 3704 cases & enquiries during the year, a slight decrease on the previous year, including:

----- Start of picture text -----
Public Law Education Public Authorities
2% 3% <1%
Housing 36%
Welfare
Benefits
35%
Debt Immigration
8% 17%
----- End of picture text -----

Housing – 1318 Welfare Benefits – 1282

Immigration – 614 Debt – 311 Education – 111 Public Law- 57 Claims Against Public Authorities- 11

Case study- Charlotte

Charlotte’s daughter contracted brain cancer when she was in her early twenties, and Charlotte went from working a busy job to needing to spend a lot of time caring for her daughter. She was reliant on her carer’s allowance and income support.

A week before Christmas I looked at my bank and my carer’s allowance hadn’t come in. I was devastated. I rang the DWP and they had decided to stop it as my daughter wasn’t going to get DLA anymore. I asked why and they said that after her telephone consultation in October they had decided not to award it. They also advised that income support would be stopping soon. I was crying in the street and a neighbour advised to call ILC.

There was a receptionist and as soon as she answered the phone I couldn’t stop crying. I said that my daughter has been diagnosed with brain cancer, she can’t do without me, she needs me every day. She falls down all the time. She had so much warmth in her voice, I really trusted her. I had a call back from Megan, and then things really started to happen. It’s so traumatic to think about how things could have ended up – I had no fight left in me. Thanks to Megan everything was reinstated. Things for the future are amazing. They gave the benefits until 2025, so she doesn’t have to reapply every 18 months. Not to have that worry, is amazing. The oncologist said that there’s no reason why she can’t live to be 100. She is now disabled, but she is incredible.

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Islington Law Centre

Trustees’ annual report

For the year ended 31 March 2023

We also continued to manage the Clerkenwell and Shoreditch County Court Possession Duty scheme , continuing to provide a vital and urgent service to tenants and borrowers facing possession proceedings and eviction. This service went out to tender by the

Legal Aid Agency as part of the new Housing Loss Prevention

Advice Service (HLPAS) and the Law Centre have successfully secured this service for residents.

There were significant casework successes in all areas of law, with a reduction in poverty as a result of increased household income, lower indebtedness, as well as improvements in clients’ housing, employment and educational situations and resolution of immigration status.

The Law Centre also undertook both legal education and social policy work – for example providing training to local community organisations and responding to government consultations. We have also recently worked closely with the Housing Law Practitioners Association in regard to proposed government changes to housing provision as well as responding to numerous consultations from the Home Office relating to immigration.

Outreach

The welfare benefits team have continued to operate their form filling clinic at the Law Centre office and in the past year had 176 appointments. The ILC core immigration team have continued to offer weekly remote advice sessions to clients from Hackney Migrant Centre and Haringey Migrants’ Support Centre and have had 130 advice appointments in the past year.

----- Start of picture text -----
130
Immigration
outreach
appointments
----- End of picture text -----

Specialist Advisors also delivered remote outreach advice via Help on Your Doorstep, Islington Bangladesh Association and Community Language Support Services. These sessions enable the Law Centre to continue to meet the needs of people who may not be able to access mainstream provision , and to maximise the impact of solicitors and caseworkers’ time by building strong partnerships with other agencies.

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Islington Law Centre

Trustees’ annual report

For the year ended 31 March 2023

Pro bono activity

The Law Centre continued to run three evening advice sessions each week , with volunteer lawyers providing initial advice and assistance in drafting documents. The service involves 256 teams of pro bono lawyers from seven City law firms and inpro bono house teams and has assisted clients with issues such as appointments reclaiming deposits from landlords, Criminal Injuries Compensation and small claims proceedings. The pro bono evening clinics had appointments during the year.

The Law Centre has also been able to sustain a pro bono immigration project, working with City law firms. The Law Centre is a London partner in an initiative led by Central England Law Centre and Kids in Need of Defence UK, which works with children and young people to secure pro bono legal assistance around issues of immigration status.

Specialist projects

The Law Centre’s specialist projects had a highly successful year with not only a range of casework successes but also wider impact on behalf of vulnerable groups.

The Migrants’ Law Project (MLP) is a is a legal and public legal education project that promotes fair treatment and access to justice for migrants, refugees and asylum seekers in the UK. They have worked on many complex refugee family reunion cases, in which relatives abroad are often in positions of extreme hardship.

The Migrant and Children’s Refugee Legal Unit (MiCLU) has continued with their ‘Breaking the Chains’ project in partnership with Shpresa Programme, a charity and refugee community group working with the Albanian speaking community in London.

The project has provided direct representation to 33 children and young people from Albania to assist them with the asylum and trafficking claims throughout the year. The team also delivered 42 one-to-one advice sessions on Zoom, reaching 82 young people who needed advice on working with their lawyer, or support to find legal representation. They successfully referred young people to other law firms and

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Islington Law Centre

Trustees’ annual report

For the year ended 31 March 2023

supported them to access pro bono advice from barristers chambers. The team have also run education and empowerment sessions for young Albanians engaged in Shpresa Programme to support their understanding of the asylum system.

100% success rate for KiND applications

The Kids in Need of Defence (KiND UK) project also continues- providing training, mentoring and supervision to pro bono partners assisting children who have lived in the UK for 7 years or more to regularise their status in the UK. The total number of KiND cases in the past year was 161 .

KiND continue to hold a 100% success rate to date for their applications.

The organisation’s infrastructure

The Law Centre has been benefiting from the improved financial arrangements IT systems that have been established over the past two years.

In addition the Law Centre has now created a training space and facilities to increase the emphasis on training for staff and for other community organisations.

This improvement in the foundation of the Law Centre should build in increased resilience into the organisation and enable us to assist clients in a professional manner into the future.

The Law Centre holds the Law Society’s Lexcel Quality Standard and was re-awarded this following a reassessment in April 2023. We received very positive feedback including that ‘It remains very clear, however, that compliance remains a deeply embedded part of the culture and, in Lexcel terms, the Centre remains an extremely well run, and extremely well managed organisation .”

Beneficiaries of our services

The Law Centre works with low-income clients, who are often facing extreme hardship. The majority of clients are women (around 60%) and a large proportion are from black and minority ethnic communities.

Clients increasingly have legal issues that involve more than one matter, or one area of law, and over the last couple of years there has been a sustained increase in the percentage of welfare benefits clients who require assistance with an appeal.

For the Law Centre as a whole, two thirds of our clients have some form of ill-health or disability.

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Islington Law Centre

Trustees’ annual report

For the year ended 31 March 2023

Beneficiaries can self-refer, or are referred or signposted from other Two thirds of agencies, and a number of referrals are received from mental health our clients have professionals, as well as community organisations, children’s centres and some form of the local authority. ill-health/ disability

Clients are asked about their experience of the service via a questionnaire, as well as contacting us independently with feedback, and 96% of clients said that they were very happy. Clients frequently comment on the impact that the service has had on them, not only in terms of their legal issues, but wider access to justice and

health, wellbeing and quality of life.

“My advisor, Amber, was patient and easy to talk to. I felt like finally someone was listening to me. I felt supported and Amber always explained every step and option available.

As a young adult living with overwhelming anxiety as well as mobility issues I struggle daily; being listened to was a big relief.

“Anna was excellent along with others literally saved me. I can't thank her and your organisation enough!”

My advisor was warm, welcoming, and very understanding - this has made all the difference in my experience. I would recommend the Law Centre to anyone who is struggling and doesn't know their rights.”

“Megan was absolutely amazing she treated me with nothing but kindness and respect and I couldn't have asked for anyone better. Thank you Law Centre and all that you do.”

Financial review

The Law Centre has undertaken considerable work in recent years to strengthen its foundations and improve its resilience. As a result of this improved performance we are now building some reserves and are in a better place to deal with any financial issues that we may face in the future.

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Islington Law Centre

Trustees’ annual report

For the year ended 31 March 2023

Our income for the year increased to £2,577,416 with expenditure of £1,846,975. We have managed to increase our free reserves to £796,747 (5 months reserves) and our overall funds to £2,436,869.

The Trustees have taken this action to build unrestricted income and reserves and to ensure that the organisation has between 3 and 6 months reserves at any one time.

Principal risks and uncertainties

This is an extremely difficult time for specialist legal advice charities. Legal Aid is not available for many of the legal issues for which the Law Centre’s clients are seeking help, and Legal Aid rates have been frozen for many years, which has led to a significant reduction in other sources of assistance for our beneficiary group.

The primary risks to the organisation are loss of key management and other personnel and risks associated with running legal aid contracts. We are managing these risks by having brought in a Deputy Director to expand the senior management team and by employing a Director with a solid track record in managing legal aid contracts over many years.

There is increasing competition for funding from Trusts and Foundations, and many of these funds are targeted at discrete client groups and/or areas of work, rather than “open door” services.

We are continuing to see an increase in poverty, and in particular child poverty and in-work poverty, combined with the reduction in the amount of Universal Credit through deductions and sanctions. We are also continuing to assist people to deal with the cost of living crisis which is continuing to affect the poorest members of the community.

Reserves policy and going concern

The Trustees are committed to ensuring reserves are between three months’ and six months’ normal running costs, that is between £461,742 and £923,484. The free reserves (unrestricted general funds less unrestricted fixed assets) at the year-end were £796,747 which is 5 months’ reserves and within the reserves policy.

Trustees closely monitor the level of reserves and are committed to ensuring that the reserves are at least three months of normal running costs in order to enable the organisation to meet operational cash flow needs, be flexible enough to manage changes in funding streams and to meet staff costs in the event of long-term sickness, maternity leave and/or redundancy.

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Islington Law Centre

Trustees’ annual report

For the year ended 31 March 2023

Fundraising

Fundraising activity undertaken by the Law Centre currently includes the preparation and submission of applications to a range of Trusts and Foundations, and this is undertaken by paid staff and often in conjunction with other partner agencies and networks.

The Law Centre has participated in events organised by the London Legal Support Trust, such as an annual sponsored walk and has received donations from corporate law firms, individuals and Trusts.

The Law Centre’s fundraising aims are to sustain and enhance existing services, and to build on these to meet new and/or additional needs, and to improve accessibility to those in greatest need.

The Law Centre has not engaged professional fundraisers or commercial participators, and has not undertaken activities which involve targeting members of the general public. It has not received any complaints in relation to fundraising activities nor has it acted in breach of any relevant codes.

Plans for the future

The Law Centre is committed to continuing to work for access to justice, and to ensuring a solid financial base for its services.

The Law Centre holds Legal Aid contracts in housing, debt and welfare benefits, public law and immigration and asylum law.

In 2023/24, our aims include increasing the levels of publicly funded work that we do, thus increasing our percentage of unrestricted income, and to seek additional funds to enable us to respond to local needs, whilst retaining our strategic work and impact. We are also looking to develop our public law work and to look to how to develop and train staff and to grow our own future social welfare lawyers.

Structure, governance and management

The organisation is a charitable company limited by guarantee, it was founded in 1973 and incorporated on 16 March 1977 and registered as a charity on 23 November 1977.

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association. All members of the board give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 7 to the accounts.

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Islington Law Centre

Trustees’ annual report

For the year ended 31 March 2023

Appointment of trustees

The Law Centre has a full Trustee Board.

Trustee induction and training

New Trustees receive an induction pack (which includes, for example, our safeguarding and other similar policies) and are invited to attend various training courses.

Bespoke training is also provided for Trustees as a group from time to time.

Statement of responsibilities of the trustees

The Trustees (who are also directors of Islington Law Centre for the purposes of company law) are responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the Trustees are required to:

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

In so far as the Trustee Board is aware:

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Islington Law Centre

Trustees’ annual report

For the year ended 31 March 2023

The Trustee Board is 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.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The Trustees are members of the charity but this entitles them only to voting rights. The members have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The Trustees’ annual report has been approved by the trustees on 12 December 2023 and signed on their behalf by

Russell Smith-Becker Trustee

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Independent auditor’s report

To the members of

Islington Law Centre

Opinion

We have audited the financial statements of Islington Law Centre (the ‘charitable company’) for the year ended 31 March 2023 which comprise the statement of financial activities, balance sheet, 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:

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 Islington Law Centre'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.

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Independent auditor’s report

To the members of

Islington Law Centre

Other Information

The other information comprises the information included in the trustees’ 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. 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:

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 trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, 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

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Independent auditor’s report

To the members of

Islington Law Centre

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.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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Independent auditor’s report

To the members of

Islington Law Centre

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

Noelia Serrano (Senior statutory auditor) 14 December 2023

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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Islington Law Centre

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2023

For theyear ended 31 March 2023 For theyear ended 31 March 2023
Unrestricted
Note
£
Income from:
2
92,444
3
991,911
1,084,355
5a
420,866
420,866
6
663,489
Reconciliation of funds:
1,469,193
2,132,682
Total income
Expenditure on:
Donations and legacies
Charitable activities
Total expenditure
Charitable activities
Total funds brought forward
Net income / (expenditure) for the year and
net movement in funds
Total funds carried forward		 Restricted
£
-
1,493,061		 2023
Total
£
92,444
2,484,972		 Unrestricted
£
107,410
661,268		 Restricted
£
-
1,363,101		 2022
Total
£
107,410
2,024,369
1,084,355 1,493,061 2,577,416 768,678 1,363,101 2,131,779
420,866 1,426,109 1,846,975 310,183 1,428,756 1,738,939
420,866 1,426,109 1,846,975 310,183 1,428,756 1,738,939
663,489
1,469,193		 66,952
237,235		 730,441
1,706,428		 458,495
1,010,698		 (65,655)
302,890		 392,840
1,313,588
2,132,682 304,187 2,436,869 1,469,193 237,235 1,706,428

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 16a to the financial statements.

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Islington Law Centre

Balance sheet

Balance sheet
As at 31 March 2023 Company no. 1302947
£
748,925
554,504
1,164,142		 2023
£
78,355		 £
517,247
388,775
846,366		 2022
£
96,101
78,355
2,358,514		 96,101
1,610,327
2,467,571
(109,057)		 1,752,388
(142,061)
1,257,580
875,102		 906,116
563,077
2,436,869 1,706,428
304,187
2,132,682		 237,235
1,469,193

Approved by the Board on 12 December 2023 and signed on their behalf by

Russell Smith-Becker Trustee

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Islington Law Centre

Statement of cash flows

For the year ended 31 March 2023 For the year ended 31 March 2023 For the year ended 31 March 2023
Note
£
£
(a)
327,633
Interest paid
-
(9,857)
(9,857)
317,776
846,366
(b)
1,164,142
(a)
2023
£
730,441
27,602
-
(231,678)
(165,729)
(33,004)
Net cash provided by operating activities
327,633
(b) Analysis of cash and cash equivalents
At 1 April
2022
Cash flows
£
£
Cash at bank and in hand
846,366
317,776
Total cash and cash equivalents
846,366
317,776
Decrease in creditors
Interest paid
Depreciation charges
Reconciliation of net income to net cash flow from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Increase in stocks
Increase in debtors
Cash flows from operating activities
Net cash used in investing activities
Net cash provided by operating activities
2023
Cash flows from investing activities:
Purchase of fixed assets
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year		 £
£
278,695
(768)
(11,737)
(12,505)
266,190
580,176
846,366
2022
£
392,840
16,710
768
(75,809)
(40,453)
(15,361)
278,695
Other
changes
At 31 March
2023
£
£
-
1,164,142
-
1,164,142
2022
Other
changes
£
-
266,190
580,176
846,366
2022
£
392,840
16,710
768
(75,809)
(40,453)
(15,361)
327,633 278,695
Cash flows
£
317,776		 At 31 March
2023
£
1,164,142
846,366 317,776 - 1,164,142

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Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2023

1 Accounting policies

Statutory information

Islington Law Centre is a charitable company limited by guarantee and is incorporated in England and Wales. The registered office address is 38 Devonia Road, London, N1 8JH.

Basis of preparation

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

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

Going concern

The Trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

Key judgements that the charitable company has made which have a significant effect on the accounts include estimation of the value of work in progress.

The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Income from legal contracts is recognised on the accruals basis. An asset is recognised for work done under legal contracts where the criteria of measurement , probability and entitlement are met.

Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor or which has been raised by the charity for particular purposes. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

21

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2023

1 Accounting policies (continued)

Expenditure and irrecoverable VAT

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

Expenditure on charitable activities includes the costs of delivering services undertaken to further the purposes of the charity and their associated support costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the basis of staff time.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities. Governance costs are allocated allocated to each activity based on staff time.

Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Stock

Stock is work in progress and is valued at the net realisable value. Provision is made where necessary for irrecoverable amount of work in progress.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any funds held on behalf of service users.

22

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2023

1 Accounting policies (continued)

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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

Finance leases

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Finance leases are those where substantially are those where substantially all of the benefits and risks of ownership are assumed by the charity. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the statement of financial activates as they fall due.

Pensions

The charity operates a defined contribution pension scheme. Costs are allocated between restricted and unrestricted funds in accordance with the time spent on restricted and unrestricted work by staff members. There are no liabilities at year end.

2 Income from donations and legacies

Unrestricted
£
92,444
92,444
Donations		 £
-
-
Restricted		 2023
Total Unrestricted
£
£
92,444
107,410
92,444
107,410		 2022
Restricted
Total
£
£
-
107,410
-
107,410

23

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2023

3 Income from charitable activities

Unrestricted
£
##
-
##
-
##
-
##
-
##
-
##
-
##
422
-
##
-
##
-
Strategic Legal Fund (SLF)
-
Open Society Foundations
-
Trust for London
-
##
-
##
-
-
Big Lottery - Breaking Chains
-
##
-
##
-
##
-
-
-
-
-
-
-
991,911
991,911
AB Charitable Trust
Other
National Lottery Community Fund
The Evans Cornish Foundation
Anonymous
Joseph Rowntree Charitable Trust
Baring Foundation
Fees and other income
Therium
Islington Children’s Services
Kids in Need of Defence UK (KIND
Total income from charitable activities
Esmée Fairbairn Foundation
Strategic Legal Fund (SLF)
Big Lottery
Haringey Migrant Centre
LB Islington
Cripplegate Foundation
City Bridge Trust
Richard Cloudesley Foundation
BBC Children in Need
Paul Hamlyn Foundation
Hackney Migrant Centre
Three Guineas Trust		 £
450,000
126,600
63,000
63,500
96,755
30,500
115,000
29,402
10,000
14,925
-
-
-
72,000
158,933
97,914
33,000
47,998
31,200
-
44,000
-
-
-
8,334
-
1,493,061
Restricted		 2023
Total
£
450,000
126,600
63,000

63,500
96,755
30,500
115,000

29,402
10,000
14,925
-
-
-
72,000
158,933

-
97,914
33,000
47,998

31,200
-
44,000
-
-
-
8,334
991,911
2,484,972		 Unrestricted
Restricted
£
£
-
450,000
-
162,918
-
63,800
-
58,000
-
29,308
-
-
14,550
-
57,180
-
26,244
-
10,000
-
7,266
-
31,760
-
15,000
-
-
-
150,014
-
-
-
107,951
-
30,000
-
27,500
-
30,000
-
30,000
-
40,000
-
10,000
-
10,160
-
1,450
41,667
-
619,601
-
661,268
1,363,101		 Unrestricted
Restricted
£
£
-
450,000
-
162,918
-
63,800
-
58,000
-
29,308
-
-
14,550
-
57,180
-
26,244
-
10,000
-
7,266
-
31,760
-
15,000
-
-
-
150,014
-
-
-
107,951
-
30,000
-
27,500
-
30,000
-
30,000
-
40,000
-
10,000
-
10,160
-
1,450
41,667
-
619,601
-
661,268
1,363,101		 2022
Total
£
450,000
162,918
63,800
58,000
29,308
-

14,550
57,180
26,244
10,000
7,266
31,760
15,000
-

150,014
-
107,951
30,000
27,500
30,000
30,000
40,000
10,000
10,160
1,450
41,667
619,601
1,363,101 2,024,369

4 Local and Government and Housing Act 1989

The company received financial assistance from the London Borough of Islington. As required by Section 37 of the Local Government and Housing Act 1989 the following information is given.

London Borough of Islington provided funding towards the legal advice services in the following areas;

£450,000 (2022: £450,000) was for the provision of independent advice for residents of London Borough of Islington.

24

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2023

5a Analysis of expenditure - current year

Staff costs (Note 7)
Other staff costs
Professional costs
Project costs
General office costs
Premises costs
Depreciation
Audit and accountancy
Irrecoverable VAT
Bad debt
Support costs
Governance costs
Total expenditure 2023		 Charitable
activities
£
1,527,968
10,763
5,171
66,202
5,253
35,153
-
-
-
-
1,650,510
32,154
164,311
1,846,975		 Governance
costs
£
-
-
-
-
-
-
-
32,154
-
-
32,154
(32,154)
-
-		 Support costs
£
-
-
17,706
-
95,668
3,425
27,602
-
14,707
5,203
164,311
-
(164,311)
-		 2023
Total
2022
Total
£
£
1,527,968
1,376,222
10,763
11,088
22,877
24,099
66,202
38,425
100,921
112,913
38,578
58,155
27,602
16,710
32,154
31,797
14,707
15,530
5,203
54,000
1,846,975
1,738,939
-
-
-
-
1,846,975
1,738,939

Of the total expenditure, £420,866 was unrestricted (2022: £380,183) and £1,426,109 was restricted (2022: £1,428,756).

5b Analysis of expenditure - prior year

Staff costs (Note 7)
Other staff costs
Professional overheads
Project costs
General office costs
Premises costs
Depreciation
Audit and accountancy
Irrecoverable VAT
Bad debt
Support costs
Governance costs
Total expenditure 2022		 Charitable
activities
£
1,376,222
11,088
13,658
38,425
6,302
55,446
-
-
-
-
1,501,141
31,797
206,001
1,738,939		 Governance
costs
£
-
-
-
-
-
-
-
31,797
-
-
31,797
(31,797)
-
-		 Support costs
2022
Total
£
£
-
1,376,222
-
11,088
10,441
24,099
-
38,425
106,611
112,913
2,709
58,155
16,710
16,710
-
31,797
15,530
15,530
54,000
54,000
206,001
1,738,939
-
-
(206,001)
-
-
1,738,939

25

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2023

6 Net income for the year

This is stated after charging / (crediting):

2023 2022
£ £
Depreciation 27,602 16,710
Interest payable - 768
Operating lease rentals:
Property 22,500 22,500
Auditor's remuneration (excluding VAT):
Audit 12,200 10,600
Under provision for earlier years - -

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Employer’s contribution to defined contribution pension schemes
Staff training
Social security costs
Salaries and wages
One employee earned more than £60,000 during the year (2022: nil).
£60,000 - £69,999		 2023
£
1,347,312
142,642
32,647
5,367		 2022
£
1,222,464
119,824
28,478
5,456
1,527,968 1,376,222
2023
1		 2022
-

The total employee benefits including employer NI and pension contributions of the key management personnel were £130,417 (2022: £119,567).

The trustees were not paid and received no other benefits from employment with the charity in the year (2022: £nil). No member received payment for professional or other services supplied to the charity (2022: £nil).

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Average staff 2023
2022
No.
No.
39
39
39
39

26

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2023

9 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

10 Tangible fixed assets

At the end of the year
Depreciation
At the start of the year
Additions in year
Cost or valuation
At the start of the year
Charge for the year
Net book value
At the start of the year
At the end of the year
At the end of the year		 Fixtures and
fittings
£
120,708
8,520		 Computer
equipment
£
80,720
1,336		 Other fixed
assets
£
11,375
-		 Total
£
212,803
9,857
129,228 82,056 11,375 222,660
27,315
25,477		 78,785
1,933		 10,603
192		 116,703
27,602
52,792 80,718 10,795 144,305
76,436 1,338 581 78,355
93,393 1,935 773 96,101

All of the above assets are used for charitable purposes.

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:

All of the above assets are used for charitable purposes.
Computer equipment		 2023
£
1,338		 2022
£
1,935

11 Stock

Stock
Work in progress 2023
£
748,925		 2022
£
517,247
748,925 517,247

27

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2023

12 Debtors

Prepayments
Accrued income
Trade debtors
Other debtors
Amount released to income in the year
Balance at the end of the year
Deferred income
Trade creditors
Creditors: amounts falling due within one year
Accruals
Balance at the beginning of the year
Other creditors
Amount deferred in the year
Deferred income		 2023
£
508,603
4,572
24,603
16,726		 2022
£
357,472
4,571
20,824
5,908
554,504 388,775
2023
£
27,497
67,160
14,400
-		 2022
£
16,769
86,460
30,500
8,332
109,057 142,061
2023
£
8,332
(8,332)
-		 2022
£
76,978
(76,978)
8,332
- 8,332

13 Creditors: amounts falling due within one year

14 Deferred income

15a Analysis of net assets between funds (current year)

Net current assets
Fixed assets
Net assets at 31 March 2023		 £
78,355
796,747
General
unrestricted		 Designated
£
-
1,257,580		 Restricted
£
-
304,187		 Total
funds
£
78,355
2,358,514
875,102 1,257,580 304,187 2,436,869

28

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2023

15b Analysis of net assets between funds (prior year)

Total restricted funds
Total designated funds
AB Charitable Trust
Anonymous
Kids in Need of Defence UK (KIND UK)
Open Society Foundations
Fixed assets
Designated funds:
Migrants' Law Project
WIP
Restricted funds:
Total funds
General funds
Net current assets
Net assets at 31 March 2022
Three Guineas Trust
LB Islington
Total unrestricted funds
Unrestricted funds:
Baring Foundation
Joseph Rowntree Charitable Trust
Big Lottery
Richard Cloudesley Foundation
Islington Children’s Services
Esmée Fairbairn Foundation
Paul Hamlyn Foundation
BBC Children in need
Hackney Migrant Centre
Haringey Migrant Centre
City Bridge Trust
Cripplegate Foundation
Movements in funds (current year)		 At 1 April
2022
£
-
47,918
16,211
43,101
-
37,186
-
-
-
1,068
-
57,661
848
10,475
-
-
-
22,767		 £
96,101
466,976
General
unrestricted		 Designated
£
-
906,116		 Restricted
£
-
237,235		 Total
funds
£
96,101
1,610,327
563,077 906,116 237,235 1,706,428
Income &
gains
£
63,000
126,600
450,000
63,500
96,755
127,316
10,000
14,925
30,500
-
8,334
158,933
115,000
33,000
47,998
31,200
72,000
44,000		 Expenditure
& losses
£
(63,000)
(113,035)
(466,211)
(106,601)
(64,255)
(133,582)
(10,000)
(14,925)
(30,500)
(1,068)
(8,334)
(176,859)
(60,848)
(35,975)
(43,998)
(23,400)
(12,000)
(61,517)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 At 31 March
2023
£
-
61,483
-
-
32,500
30,920
-
-
-
-
-
39,735
55,000
7,500
4,000
7,800
60,000
5,250
237,235 1,493,061 (1,426,109) - 304,187
388,869
517,247		 203,816
231,678		 (84,030)
-		 -
-		 508,655
748,925
906,116 435,494 (84,030) - 1,257,580
563,077 648,861 (336,836) - 875,102
1,469,193 1,084,355 (420,866) - 2,132,682
1,706,428 2,577,416 (1,846,975) - 2,436,869

16a Movements in funds (current year)

The narrative to explain the purpose of each fund is given at the foot of the note below.

29

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2023

16b Movements in funds (prior year)

Total restricted funds
Total designated funds
General funds
Restricted funds:
AB Charitable Trust
Unrestricted funds:
Esmée Fairbairn Foundation
Paul Hamlyn Foundation
Kids in Need of Defence UK (KIND UK)
Trust for London
Islington Children's Services
LB Islington
Baring Foundation
National Lottery Community Fund
The Evans Cornish Foundation
Open Society Foundations
Strategic Legal Fund (SLF)
Hackney Migrant Centre
Haringey Migrant Centre
Big Lottery
Richard Cloudesley Foundation
WIP
Total funds
Migrants' Law Project
Designated funds:
Cripplegate Foundation
Joseph Rowntree Charitable Trust
Other
Therium
City Bridge Trust
Total unrestricted funds
Three Guineas Trust		 At 1 April
2021
£
-
-
100,910
32,222
32,221
37,186
-
-
-
-
-
-
75,976
-
24,375
-
-
-
-
-
-
-		 Income &
gains
£

63,800

162,918
450,000
58,000
29,309
165,131

26,244

10,000

7,266

31,760

-

15,000
150,013

14,550
30,000

27,500

30,000

10,000

10,160

30,000

40,000

1,450		 Expenditure
& losses
£
(63,800)
(115,000)
(534,699)
(47,121)
(61,530)
(165,131)
(26,244)
(10,000)
(7,266)
(30,692)
-
(15,000)
(168,328)
(13,702)
(43,900)
(27,500)
(30,000)
(10,000)
(10,160)
(30,000)
(17,233)
(1,450)		 Transfers
At 31 March
2022
£
£
-
-
-
47,918
16,211
-
43,101
-
-
-
37,186
-
-
-
-
-
-
-
1,068
-
-
-
-
-
57,660
-
848
-
10,475
-
-
-
-
-
-
-
-
-
-
-
22,767
-
-
-
237,235
-
388,869
-
517,247
-
906,116
-
563,077
-
1,469,193
-
1,706,428
302,890 1,363,101 (1,428,756)
284,149
441,438		 144,716
75,809		 (39,996)
-
725,587 220,525 (39,996)
285,111 548,153 (270,187)
1,010,698 768,678 (310,183)
1,313,588 2,131,779 (1,738,939)

Purposes of restricted funds

General social welfare and core services includes core funding for General Legal Advice Services and the Three Advice Projects.

The Migrant and Refugee Children's Legal Unit was funded to work for social justice by changing policy and practice to ensure respect for the rights, and improve the lives, of migrant and refugee children in the UK through strategic casework, training , consultancy and policy work. The Migrant and Refugee Children’s Legal Unit received restricted funding from Paul Hamlyn Foundation, Kids in Need of Defence, AB Charitable Trust and the National Lottery.

The Migrants' Law Project is a legal and public legal education project, which aims to improve the rights of migrants, refugees and asylum seekers through the use of public law. The Migrants' Law Project received restricted funding from Joseph Rowntree Foundation, Esmee Fairbairn, Therium and Trust for London.

30

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2023

17 Movements in funds (continued)

Purposes of designated funds

Migrants' Law Project

Funds have been set aside by the Management Committee for the work of the Migrants' Law Project at the Law Centre to further the project objectives.

18 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods


following periods
Over 5 years
Less than one year
Between 1-5 Years		 2023
2022
£
£
22,500
22,500
82,500
90,000
-
15,000
105,000
127,500
Property
105,000 127,500

19 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

20 Related party transactions

There are no related party transactions to disclose for 2023 (2022: none).

21 Post balance sheet event

From 16 June 2023 the Migrant Law Project at Islington Law Centre transferred to another organisation, Asylum Aid. The transfer included staff working on the project, £200,000 in unrestricted funds, unspent restricted project funding allocated to the project, and work in progress on project files totalling approximately £200,000.

31