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2024-03-31-accounts

Report and financial statements For the year ended 31 March 2024

Company number: 1302947 Charity number: 268468

Islington Law Centre

For the year ended 31 March 2024

Contents

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 13 Statement of financial activities (incorporating an income and expenditure account) ................... 17 Balance sheet ............................................................................................................................... 18 Statement of cash flows ................................................................................................................ 19 Notes to the financial statements ................................................................................................. 20

Islington Law Centre

Reference and administrative information For the year ended 31 March 2024

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: Marian Ellingworth Chair Appointed 26 May 2023 Susan Lee Onika Adams Michael Collins Paul Lowenberg Steven Lorber Jemima Joll Resigned 26 May 2023 Lindsay Edkins Resigned 6 February 2024 Russell Smith-Becker Resigned 13 May 2024 Key management Stuart Hearne Director personnel Matthew Brown Deputy Director Bankers Lloyds Bank Highbury Corner 31-33 Holloway Road London N7 8JU Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditors 110 Golden Lane LONDON EC1Y 0TG

1

Islington Law Centre Trustees’ annual report For the year ended 31 March 2024

The Trustees present their report and the audited financial statements for the year ended 31 March 2024.

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 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 – 14

Trainee Solicitors - 1 Caseworkers – 10 Paralegals- 1 Reception and Referral team – 2 Interim Office Manager – 1

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Islington Law Centre Trustees’ annual report For the year ended 31 March 2024

Supporting Civil Society

Islington Law Centre supports members of the community to take an active part in Civil Society and to have positive and effective engagement with Civil Society institutions – this includes dealing with the Local Authority, the Department of Work and Pensions, the Courts and Tribunals, the Education Services, the Home Office and other government departments. We recognise that supporting people, particularly those on low incomes, people in housing

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The Welfare Rights team secured
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need and people who are marginalised through poverty or through issues with immigration, is an intrinsic part of our society. By actively and positively engaging with Civil Society institutions our community is strengthened and this helps to support the fabric of our society for the benefit of everyone. When people have rights but have no access to the means to enforce those rights or where they feel that they have been let down or failed by the civil society institutions then the fabric of society is weakened. We recognise that by enabling people to access their rights and effectively engage with civil society we strengthen our democracy.

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 : -

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Islington Law Centre

Trustees’ annual report For the year ended 31 March 2024

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

Reception and Referral Service

In the year 2023/24, the 8,046 service dealt with 8,046 enquiries. This was a 30% reception increase in the number of enquiries enquiries the year before (6,163 enquiries). This reflects

the increase in demand for our services. Our reception is staffed in-person 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

Case study – Adam*

Adam was a young 24-year-old man with autism and mental health issues. He had been evicted from supported accommodation as they were not able to meet his level of needs. He applied for accommodation from the Local Authority as he had nowhere to go. He was refused on the basis that he was “not vulnerable” and not in “priority need” for accommodation.

Adam, through his parents, sought assistance from us. Due to the level of his anxiety he was not able to seek assistance himself and did not want to have a face to face appointment. We were able to assist him initially by telephone with the support of his parents. We were able to obtain the evidence showing how his autism and mental health issues affect him and assessed the level of support he required for daily living. We arranged for him to have an expert psychological assessment and provided him with the support and encouragement to attend.

We assisted Adam to seek a review of the negative housing decision and with our knowledge of housing law and the evidence in support of his application, we were able to persuade the Local Authority to accept a duty to provide Adam with suitable accommodation.

*Not our client’s real name.

The Law Centre worked on 2,364 cases &

enquiries during the year, including 871 housing matters, 178 debt matters, 869 Immigration matters, 869 Welfare Rights matters and 77 Education matters. We take cases through to representation before the Courts and Tribunals and represent the majority of our welfare benefit appeal clients before the Tribunal. Our success in welfare rights appeals was over 90% during the year.

We represent housing clients in the County Court, ensuring that people facing possession claims receive representation at the County Court.

We have successfully represented clients before the County Court, the Social Security Appeals Tribunal, the Immigration Appeals Tribunal and in the higher Courts in Judicial Review proceedings.

We also chair the Islington Homelessness Forum bringing together all those organisations working in homelessness across the Borough including the Council and the providers of homelessness services to help improve the homelessness services available.

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Islington Law Centre

Trustees’ annual report For the year ended 31 March 2024

The spread of cases during the year:

We 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 in 2023 and we were again successful in tendering for this service.

This is the new Housing Loss Prevention Advice Service (HLPAS) and the Law Centre have successfully secured this service for residents from 1 September 2024.

There were significant casework successes in all areas of law, with a reduction in poverty through 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 been involved in the governments review of legal aid and we have also recently worked closely with the Housing Law Practitioners Association in regard to proposed government changes to housing provision and proposals to move to digital provision of legal services as well as responding to numerous consultations from the Home Office relating to immigration.

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Islington Law Centre Trustees’ annual report For the year ended 31 March 2024

Outreach Services

We are continually reviewing our services to improve our accessibility. We are committed to providing accessible outreach services across the Borough and to proving face to face advice services. We have learnt from our experiences during covid that some clients, particularly those with disabilities or health conditions, sometime prefer telephone or other remote services. We are now adapting our outreach services to give services users choice over how the access our services.

The welfare benefits team have continued to operate their form filling clinic at the Law Centre office and in the past year had 178 appointments, and 194 applications made. 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 129 advice appointments in the past year.

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129
Immigration
outreach
appointments
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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.

Pro bono activity

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288
pro bono
appointments
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The Law Centre continues to run three evening advice sessions each week , with volunteer lawyers providing initial advice and assistance in drafting documents. The service involves teams of pro bono lawyers from seven City law firms and in-house teams and has assisted clients with issues such as reclaiming deposits from landlords, Criminal Injuries Compensation and small claims proceedings. The pro bono evening clinics had 288 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.

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Islington Law Centre

Trustees’ annual report For the year ended 31 March 2024

Specialist projects

The Migrants’ Law Project (MLP) has been based at Islington Law Centre since 2012 but in 2023 decided to fulfil its long-term plan to move to an alternate host and leave Islington Law Centre. The arrangements were agreed, and we continue to work with the Migrant Law Project on issues affecting migrant rights.

The Migrant and Refugee Children’s 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 works with children and young people from Albania to assist them with the asylum and trafficking claims. The project works to develop casework in this area and to increase the availability of good quality representation to this group who have been disproportionately targeted by

the media. 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 159 .

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, and in 2024 we obtained Cyber Essentials accreditation.

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 2024. We received very positive feedback from our Lexcel assessor including that his view that ‘It remains very clear that compliance remains a deeply embedded part

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Islington Law Centre

Trustees’ annual report For the year ended 31 March 2024

of the culture and, in Lexcel terms, the Centre remains an extremely well run, and extremely well managed organisation .”

The charity's main activities and who it tries to help are described below. All its charitable activities focus on tackling poverty and improving access to justice and are undertaken to further Islington Law Centre’s charitable purposes for the public benefit.

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 62%) and a significant proportion (49%) 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.

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 97% 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.

“I was very well informed by ILC and knew what to expect at every stage of my case.”

“ I would like to say the help I received was life changing. It had an immediate positive effect on my mental health.”

“Suzanne was super and we were very well looked after.”

“Amber was incredibly clear and welcoming. Which made it easier for me to communicate my needs. Can't fault the help and advice I received that was absolutely essential to my PIP claim.”

“All staff and advisers are top drawer. Communication on all levels - excellent service.”

“Extremely grateful for the support, expertise and patience.”

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Islington Law Centre

Trustees’ annual report For the year ended 31 March 2024

Financial review

The Law Centre has undertaken considerable work in recent years to strengthen its foundations and improve its resilence. As a result of this improved performance, we have been able to ensure that we have sufficient reserves to ensure stability and resilience and are in a better place to deal with any financial issues that we may face in the future.

Our income for the year increased to £2,478,157 with expenditure of £2,400,154. We have managed to increase our unrestricted general funds to £1,281,104 and our overall funds to £2,514,872.

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 since 1996! This 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 employing a Director and Deputy Director, both of whom have considerable experience in managing grant income and operations. The Director has 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 expect that the continuing cost of living crisis, increase in poverty, and in particular child poverty and in-work poverty, the difficulties in accessing suitable and affordable housing, combined with pressure to reduce the cost to the Treasury of disability benefits, will increase demand for our services further over the coming period. We are also preparing for an increased need for our services as we see the increase in possessions and evictions. The community is also seeing a huge increase in fuel costs and a squeeze on household budgets and whilst inflation is now coming down food prices remain high and these costs disproportionately affect those on the lowest incomes.

Reserves policy and going concern

The Trustees have reviewed our reserves policy in line with potential risks to the organisation and to enable the organisation to meet operational cash flow needs, be flexible enough to manage changes in funding streams or unexpected drops in income and to meet staff costs in the event of long-term sickness, maternity leave and/or redundancy. The Trustees have set a reserves policy of holding between 6 and 9 months running costs as reserves. The free reserves (unrestricted general funds less unrestricted fixed assets) at the year-end were £1,220,539. The monthly running costs are £167,946 and the current reserves represent 7.3 months running costs.

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Islington Law Centre Trustees’ annual report For the year ended 31 March 2024

The Trustees review the level of reserves and the reserves policy regularly.

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 has retendered for and has been awarded Legal Aid contracts in housing, debt and welfare benefits, public law and immigration and asylum law in 2024. We are continuing to develop and grow our Legal Aid work and are committed to the provision of legal aid services.

In 2024/25, 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.

We are currently employing one trainee solicitor and have obtained support from the Justice First Foundation to recruit an additional trainee solicitor in January 2025.

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.

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Islington Law Centre Trustees’ annual report For the year ended 31 March 2024

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.

Appointment of trustees

We have a Board of six Trustees and have started the process of recruiting some additional Trustees during the year ahead. A recruitment process is currently underway.

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.

Trustees do not receive any remuneration.

Staff Renumeration Policy

The remuneration policy for all personnel is determined by the Trustees who review cost of living increases annually. Trustees may review overall salaries from time to time, and in doing so would take account of market rates in comparable organisations. Trustees approve all salaries when they set the budget at the start of the year.

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:

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Islington Law Centre

Trustees’ annual report For the year ended 31 March 2024

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:

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 19 November 2024 and signed on their behalf by

Marian Ellingworth Chair of the Trustee Board

12

Independent auditor’s report

To the members of

Islington Law Centre

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 2024 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.

13

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:

14

Independent auditor’s report

To the members of

Islington Law Centre

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 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:

15

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)

09 December 2024

for and on behalf of Sayer Vincent LLP, Statutory Auditor

110 Golden Lane, LONDON, EC1Y 0TG

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Islington Law Centre

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

For the year ended 31 March 2024

Restricted
£
-
1,387,425		 2024
Total
£
67,031
2,411,126		 Unrestricted
£
92,444
991,911		 Restricted
£
-
1,493,061		 2023
Total
£
92,444
2,484,972
1,090,732 1,387,425 2,478,157 1,084,355 1,493,061 2,577,416
801,169 1,598,985 2,400,154 420,866 1,426,109 1,846,975
801,169 1,598,985 2,400,154 420,866 1,426,109 1,846,975
289,563
2,132,682		 (211,560)
304,187		 78,003
2,436,869		 663,489
1,469,193		 66,952
237,235		 730,441
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 15a to the financial statements.

17

Islington Law Centre

Balance sheet

Balance sheet
As at 31 March 2024 Company no. 1302947
£
764,590
520,848
1,304,220		 2024
£
60,565		 £
748,925
554,504
1,164,142		 2023
£
78,355
60,565
2,454,307		 78,355
2,358,514
2,589,658
(135,351)		 2,467,571
(109,057)
1,141,141
1,281,104		 1,257,580
875,102
2,514,872 2,436,869
92,627
2,422,245		 304,187
2,132,682

Approved by the Board on 19 November 2024 and signed on their behalf by

Marian Ellingworth Chair of the Trustee Board

18

Islington Law Centre

Statement of cash flows

For the year ended 31 March 2024 For the year ended 31 March 2024
Note
£
£
(a)
142,066
(1,988)
(1,988)
140,078
1,164,142
(b)
1,304,220
(a)
2024
£
78,003
19,778
(15,665)
33,656
26,294
Net cash provided by operating activities
142,066
(b) Analysis of cash and cash equivalents
At 1 April
2023
£
Cash at bank and in hand
1,164,142
Total cash and cash equivalents
1,164,142
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
Cash flows from operating activities
Net cash used in investing activities
Net cash provided by operating activities
2024
Cash flows from investing activities:
Purchase of fixed assets
Decrease in creditors
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		 £
£
327,633
(9,857)
(9,857)
317,776
846,366
1,164,142
2023
£
730,441
27,602
(231,678)
(165,729)
(33,004)
327,633
Cash flows
At 31 March
2024
£
£
140,078
1,304,220
140,078
1,304,220
2023
Cash flows
£
140,078
317,776
846,366
1,164,142
2023
£
730,441
27,602
(231,678)
(165,729)
(33,004)
142,066 327,633
At 1 April
2023
£
1,164,142		 At 31 March
2024
£
1,304,220
1,164,142 140,078 1,304,220

19

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2024

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.

20

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2024

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 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:

� Leasehold improvements 15 years straight-line

� Fixtures and fittings 25% reducing balance

� Other fixed assets (e.g., Office equipment) 25% reducing balance

� Computer equipment 3 - 5 years straight-line

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.

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.

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.

21

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2024

2 Income from donations and legacies

3
##
##
##
##
##
##
##
422
##
##
##
Big Lottery - Breaking Chains
##
##
##
Three Guineas Trust
Income from charitable activities
Joseph Rowntree Charitable Trust
Baring Foundation
Fees and other income
Islington Children’s Services
Kids in Need of Defence UK (KIND
London Legal Support Trust
Other Small Grants
Donations
Esmée Fairbairn Foundation
Total income from charitable activities
AB Charitable Trust
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		 Unrestricted
£
67,031
67,031
Unrestricted
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,023,701
1,023,701		 £
-
-
£
450,000
116,000
64,800
60,000
75,000
30,000
122,650
-
14,632
15,000
158,711
5,293
138,149
-
20,000
-
22,000
-
52,113
43,077
-
1,387,425
Restricted
Restricted		 2024
Total
£
67,031
67,031
2024
Total
£
450,000
116,000
64,800
60,000
75,000
30,000
122,650
-
14,632
15,000
158,711
5,293
138,149
-
20,000
-
22,000
-
52,113
43,077
1,023,701
2,411,126		 Unrestricted
£
92,444
92,444
Unrestricted
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
991,911
991,911		 Restricted
£
-		 2023
Total
£
92,444
- 92,444
Restricted
£
450,000
126,600
63,000
63,500
96,755
30,500
115,000
29,402
10,000
14,925
158,933
-
97,914
33,000
47,998
31,200
44,000
8,334
-
72,000
-		 2023
Total
£
450,000
126,600
63,000
63,500
96,755
30,500
115,000
29,402
10,000
14,925
158,933
-
97,914
33,000
47,998
31,200
44,000

8,334
-
72,000

991,911
1,493,061 2,484,972

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 (2023: £450,000) was for the provision of independent advice for residents of London Borough of Islington.

22

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2024

5a Analysis of expenditure - current year

Staff costs (Note 7)
Other staff costs
Professional costs
Project costs
MLP Transfer
General office costs
Premises costs
Depreciation
Audit and accountancy
Irrecoverable VAT
Bad debt
Support costs
Governance costs
Total expenditure 2024		 Charitable
activities
£
1,558,617
13,274
4,467
161,828
384,807
4,752
37,065
2,164,810
34,092
201,252
2,400,154		 Governance
costs
£
-
-
-
-
-
-
-
-
34,092
-
-
34,092
(34,092)
-
-		 Support
costs
£
-
-
13,828
-
-
107,325
627
19,778
-
13,210
46,484
201,252
-
(201,252)
-		 2024
Total
£
1,558,617
13,274
18,295
161,828
384,807
112,077
37,692
19,778
34,092
13,210
46,484
2,400,154
-
-
2,400,154		 2023
Total
£
1,527,968
10,763
22,877
66,202
-
100,921
38,578
27,602
32,154
14,707
5,203
1,846,975
-
-
1,846,975

Of the total expenditure, £801,169 was unrestricted (2023: £420,866) and £1,598,985 was restricted (2023: £1,426,109).

£384,807 MLP transfer was payment made to Asylum Aid.

23

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2024

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 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
£
1,527,968
10,763
22,877
66,202
100,921
38,578
27,602
32,154
14,707
5,203
1,846,975
-
-
1,846,975

24

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2024

6 Net income for the year

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2024 2023
£ £
Depreciation 19,778 27,602
Operating lease rentals:
Property 22,500 22,500
Auditor's remuneration (excluding VAT):
Audit 13,050 12,200
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:

£60,000 - £69,999
Salaries and wages
One employee earned more than £60,000 during the year (2023: nil).
Employer’s contribution to defined contribution pension schemes
Staff training
Social security costs		 2024
£
1,381,181
139,913
33,069
4,454		 2023
£
1,347,312
142,642
32,647
5,367
1,558,617 1,527,968
2024
1		 2023
1

The total employee benefits including employer NI and pension contributions of the key management personnel were £136,940 (2023: £130,417).

The trustees were not paid and received no other benefits from employment with the charity in the year (2023: £nil). No member received payment for professional or other services supplied to the charity (2023: £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 2024
No.
38		 2023
No.
39
38 39

25

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2024

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
At the end of the year
At the start of the year
Charge for the year
Net book value
At the start of the year
Cost or valuation
Depreciation
At the start of the year
Additions in year
At the end of the year		 Fixtures and
fittings
£
129,228
-		 Computer
equipment
£
82,056
-		 Other fixed
assets
£
11,376
1,988		 Total
£
222,660
1,988
129,228 82,056 13,364 224,648
52,792
19,110		 80,718
445		 10,795
223		 144,305
19,778
71,902 81,163 11,018 164,083
57,326 893 2,346 60,565
76,436 1,338 581 78,355

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		 2024
£
893		 2023
£
1,338

11 Stock

Work in progress 2024
£
764,590		 2023
£
748,925
764,590 748,925

26

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2024

12 Debtors

Debtors
Trade debtors
Other debtors
Prepayments
Accrued income		 2024
£
476,034
4,571
24,043
16,200		 2023
£
508,603
4,572
24,603
16,726
520,848 554,504

13 Creditors: amounts falling due within one year

Accruals
Other creditors
Trade creditors		 2024
£
9,095
107,596
18,660		 2023
£
27,497
67,160
14,400
135,351 109,057

14a Analysis of net assets between funds (current year)

Net assets at 31 March 2024
Analysis of net assets between funds (prior year)
Net current assets
Net assets at 31 March 2023
Fixed assets
Net current assets
Fixed assets		 £
60,565
1,220,539
General
unrestricted		 Designated
£
-
1,141,141		 Restricted
£
-
92,627		 Total
funds
£
60,565
2,454,307
1,281,104 1,141,141 92,627 2,514,872
£
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

14b Analysis of net assets between funds (prior year)

27

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2024

15a Movements in funds (current year)

Total restricted funds
Total designated funds
City Bridge Trust
Cripplegate Foundation
Total unrestricted funds
BBC Children in need
Hackney Migrant Centre
Other Small Grants
Disbursement Fund
Esmée Fairbairn Foundation
Restricted funds:
Total funds
General funds
Three Guineas Trust
WIP
Paul Hamlyn Foundation
Kids in Need of Defence UK (KIND UK)
Strategic Legal Fund (SLF)
Richard Cloudesley Foundation
Designated funds:
Migrants' Law Project
Unrestricted funds:
Baring Foundation
Joseph Rowntree Charitable Trust
Big Lottery
Haringey Migrant Centre
LB Islington
London Legal Support Trust
AB Charitable Trust		 At 1 April
2023
£
-
61,483
-
-
32,500
30,920
-
-
-
-
39,734
55,000
7,500
4,000
7,800
60,000
-
5,250		 Income &
gains
£
64,800
116,000
450,000
60,000
75,000
138,149
14,632
15,000
30,000
5,293
158,711
122,650
-
20,000
-
43,077
52,113
22,000		 Expenditure
& losses
£
(64,800)
(119,482)
(450,000)
(60,000)
(85,248)
(169,069)
(14,632)
(15,000)
(30,000)
(5,293)
(198,445)
(165,275)
(7,500)
(24,000)
(7,800)
(103,077)
(52,113)
(27,250)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 At 31 March
2024
£
-
58,000
-
-
22,252
-
-
-
-
-
-
12,375
-
-
-
-
-
-
304,187 1,387,425 (1,598,985) - 92,627
508,655
-
748,925		 162,432
-
15,665		 (393,887)
-
-		 (277,200)
376,551
-		 -
376,551
764,590
1,257,580 178,097 (393,887) 99,351 1,141,141
875,102 912,635 (407,282) (99,351) 1,281,104
2,132,682 1,090,732 (801,169) - 2,422,245
2,436,869 2,478,157 (2,400,154) - 2,514,872

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

28

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2024

15b Movements in funds (prior year)

City Bridge Trust
Cripplegate Foundation
LB Islington
Three Guineas Trust
Richard Cloudesley Foundation
Big Lottery
Haringey Migrant Centre
Hackney Migrant Centre
BBC Children in need
Open Society Foundations
Islington Children’s Services
Strategic Legal Fund (SLF)
Kids in Need of Defence UK (KIND UK)
Paul Hamlyn Foundation
Esmée Fairbairn Foundation
Joseph Rowntree Charitable Trust
Baring Foundation
National Lottery Community Fund
Other Small Grants
Therium
AB Charitable Trust
Other
Total restricted funds
Total designated funds
General funds
Total unrestricted funds
WIP
Total funds
Restricted funds:
Unrestricted funds:
Migrants' Law Project
Designated funds:		 At 1 April
2022
£
-
47,918
16,211
43,101
-
37,186
-
-
-
1,068
-
-
57,660
848
10,475
-
-
-
-
-
22,767
-		 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
-
-
-
-
-
-
39,734

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

29

Islington Law Centre

Notes to the financial statements

For the year ended 31 March 2024

15 Movements in funds (continued)

Purposes of restricted funds

General social welfare and core services includes core funding for General Legal Advice Services and the Three Advice Projects. Restricted funding received from City Bridge Trust, Cripplegate Foundation, LB Islington, Three Guineas Trust, Richard Cloudesley Foundation, Big Lottery, Haringey Migrant Centre, Hackney Migrant Centre, BBC Children in need, Kids in Need of Defence UK, Paul Hamlyn Foundation, Esmée Fairbairn Foundation, Baring Foundation and London Legal Support Trust.

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 was a legal and public legal education project, which aimed to improve the rights of migrants, refugees and asylum seekers through the use of public law. During the year project was transferred to Asylum Aid.

Purposes of designated funds

Migrants' Law Project

Funds were set aside by the Management Committee for the work of the Migrants' Law Project at the Law Centre and were transferred to Asylum Aid when MLP project moved.

16 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

Less than one year
Between 1-5 Years		 2024
2023
£
£
22,500
22,500
60,000
82,500
82,500
105,000
Property		 2024
2023
£
£
22,500
22,500
60,000
82,500
82,500
105,000
Property
82,500 105,000

17 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.

18 Related party transactions

There are no related party transactions to disclose for 2024 (2023: none).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

30