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2021-03-31-accounts

HARINGEY LAW CENTRE

Registered Charity and Company Limited by Guarantee

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31[ST] MARCH 2021

Charity number: 274760 Company number: 1332867 (England and Wales)

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HARINGEY LAW CENTRE YEAR ENDED 31[ST] MARCH 2021

Registered Charity Number : 274760 Registered Company Number: 1332867

Principal address:

7 Holcombe Road Tottenham London, N17 9AA

Directors and Trustees:

Olive Walter – Chair Mohammad Amirul Islam - Treasurer Martha Osamor – Treasurer – Not a trustee from 24[th] August 2020 Patrick Passley Henry Egenti Valerie Williams Ruth Hayles Robert William Harris

Governing document:

The charity is operated under the rules of its Memorandum and Articles of Association.

Bankers:

The Cooperative bank

Independent Examiner and Accountant:

TACTS Accountant Chartered Certified Accountant 81 Rayleigh Road Palmers Green London, N13 5QW

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HARINGEY LAW CENTRE

FINANCIAL ACCOUNTS

FOR YEAR ENDED 31[ST] MARCH 2021

CONTENTS

Pages

8. Independent Examiners Report

9. Statement of Financial Activities

10. Balance Sheet

11-14. Notes to the Accounts

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HARINGEY LAW CENTRE TRUSTEE’S REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their report and the financial statements for the year ended 31 March 2021.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Principal activities and review of activities

The Law Centre is a charity whose objects, as defined by the Memorandum of Association are:

Activities

The principal activity of the Charity continues to be the provision of legal advice, assistance and representations to persons who are resident or working within Greater London with priority given to those who live or work or have a connection with the London Borough of Haringey and the adjoining boroughs.

Review of activities

The Law Centre provides advice, assistance and representation in the following areas of social welfare law: housing, debt, employment, welfare benefits and general litigation. The organisation also holds the Legal Aid Agency Specialist Quality Mark in the area of housing/debt advice and therefore provides advice, assistance and representation in this area of law. In order to ensure that all people are aware of their legal rights, the Law Centre also provides legal training and support to local community groups as well as taster and volunteering opportunities for aspiring lawyers from the community. We offer advice, assistance and representations in courts and tribunals when required in funded areas of our work.

Achievements and Performance during the year

The Law Centre provided legal advice, assistance and representations to over 2,500 clients during the year. In addition, basic advice was provided in a number of new areas e.g., housing disrepair. We were funded by People’s Postcode Lottery, London Borough of Haringey, Trust for London, Bridge Renewal Trust and City of London Solicitors,

to deliver on the above activities during this year. The Legal Aid Agency previously awarded HLC Legal Aid contract in Housing Law category.

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Financial review

Since April 2013, changes were introduced by the government in the Legal Aid Sentencing and Punishment of Offenders Act (LASPO). This reform continued to impact on matters that were under the scope of legal aid funding scheme, welfare benefit, immigration, employment, housing except those whose house are in imminent risk, homelessness assistance, housing disrepair cases that pose a serious risk to life or health and anti-social behavior cases in the county court.

These changes have significantly impacted upon the Law Centre’s current and future services and continues to require similar strong financial management and control as the centre begins its growth phase.

Main funding sources are from grant and legal services.

This year has continued to be challenging for the Law Centre particularly in combatting remote work delivery in response to the pandemic. The Trustees were able to find innovative ways of increasing the Centre’s human resource capacity through working with and recruiting qualified lawyers and some professionals willing to work on a pro bono basis when necessary to continue to provide housing and debt support for the area. Although, the existing and new volunteers of the Centre continue to be an invaluable source to the work of the Centre to date and the Trustees remain grateful for their support, it is to be noted that there were no volunteers for this reporting period due to risks associated with and in keeping with the government’s pandemic guidelines.

We have funding for Debt advice work from City of London Solicitor’s Company Charitable Fund. We also have funding from London Borough of Haringey for homelessness support. We also received a grant from Trust for London to provide welfare advice and appeals as well as campaigning. The People’s Postcode Lottery project to support youth homelessness and Bridge Renewal Trust to support EU Immigration Applications. Law Centre Network and MOJ’ COVID-19 Fund to support continued service delivery. We are very grateful to everyone who has been very supportive.

Reserves Policy and Going Concern

The Trustees have considered the following factors when considering a reserves policy:

The Board has assessed the charity’s requirements for reserves in the light of the main risks to the organisation. As a result, the Board has approved a policy whereby the unrestricted funds not committed, should be held in reserve and maintained at a level which ensures that HLC’s core activity could continue during a period of unforeseen difficulty. The target reserve amount represents at least 6 months’ (26 weeks) expenditure and will be reviewed annually.

Recruitment and Training of Trustees

The Centre is committed to ensuring that its membership reflects the diversity of the population it serves in the area of Haringey and surrounding boroughs. To achieve this, we undertake annual skills audits of Trustees to ensure that we maintain a balance of developmental, financial, legal and management skills across the Board of Trustees to enable it to discharge its duties.

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Company and Charity Status

The Company was incorporated on 6[th] October 1977 under the Companies Act 1948 to 1976. The restrictions imposed on the Charity are set out in the Company’s Memorandum of Association. The Company is limited by guarantee and registered at Companies House under the number 01332867. The Company is registered as a Charity under the number 274760. In addition, The Guidance for companies and charities during the pandemic – Update March (COVID-19) applies for accounts ending 31[st] March 2021.

Structure, Governance and Management

The Law Centre is a registered charity and a company limited by guarantee. It is governed by a Memorandum and Articles of Association which were last amended on 30[th] April 2007. It is controlled by a voluntary Board of Trustees which has corporate and legal responsibility for all activities and functions of the organization. The Trustees discharge their functions through the following mechanisms: board meetings take place on a bi-monthly basis, agreeing annual/revised budget, carrying annual staff and trustee review, and holding AGM annually.

Appointment of Trustees is by election by the membership of the people who live or work in Haringey and Enfield.

The Trustees have an overall responsibility of ensuring that the charity has an appropriate system of controls, financial and otherwise. The system of internal controls is designed to provide reasonable but not absolute assurance against material misstatement or loss. They include:

Risk Management

The Trustees continue to appraise the management risk facing the organisation. This involves identifying the types of risk the charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying ways of mitigating the risks. As part of this process, the Trustees have reviewed the adequacy of the Centre’s current internal controls. The Trustees are pleased to report that the Centre’s internal financial controls, in particular, conform to guidelines issued by the Charities Commission.

In light of the COVID-19 Pandemic, HLC’s emergency business response was activated which mitigated for associated risks and amend accordingly as this reporting period falls in the early stage of the pandemic. The business resilience was responsive and strong which ensured business resilience and sustainability. As the pandemic continues to be with us during this period, HLC successfully continued to abide by the government’s guidelines and maintained remote working and at times hybrid working, while maintaining the strict adherence to Health and Safety compliance and risk management.

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and the 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 company and of the surplus or deficit of the company for that period. In preparing those financial statements, the Trustees are required to:

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

Our volunteers

Although HLC provide volunteering opportunities to students who are pursuing legal careers. This reporting period no volunteers assisted with our on-going activities due to the high risks associated with the pandemic. We, however continue to wish and to thank our previous volunteers for their loyal support and contribution.

Statement of public benefit

In line with the requirement of the Charities Commission under the Charities Act 2011 for Charities to demonstrate that their aims are for the public benefit, the Trustees of HLC are confident that their aims and objectives meet the requirements of the public benefit.

Independent Examiner

The Management committee will seek the re-appointment of an external and reputable Accountant to act as independent examiner for the next year’s financial account.

Small Company Provisions

This report has been prepared in accordance with the provisions applicable to companies’ subject to the small companies’ regime.

Related parties and co-operation with other organizations

None of our trustees receive remuneration or other benefit from their work with the charity. Except for the Administrator who has the dual role of an employee as well as functions as a trustee (unpaid) (executes the administrative function for the Board) – in accordance to Charity’s Guidance, the matter adopted the Guidance as outlined, discussed and agreed by the full Board of Trustees. Any connection between a trustee and senior manager of the charity with its members must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party.

This report was approved by the Trustees on 10[th] December 2021 and signed on its behalf by:

...................................................................... Mrs Olive Walter (Chairperson)

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Independent examiner’s report to the trustees of Haringey Law Centre

I report on the accounts of the charity for the year ended 31[st] March 2021, which are set out on pages 9 to 14.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. I am qualified to undertake the examination by being a qualified member of the Association of Chartered Certified Accountants.

It is my responsibility to:

Basis of independent examiner’s statement

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention (other than that disclosed below *) to indicate that:

Date: 10/12/2021

Chartered Certified Accountant

TACTS ACCOUNTANT, 81 Rayleigh Road, Palmers Green, London N13 5QW

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HARINGEY LAW CENTRE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR END 31 MARCH 2021

INCOMING RESOURCES:-
Donations:
Blyth Watson Charitable Trusts
Master Members
Joseph & Lilian Sully Foundation
Other donations
Incoming resources from generated funds
Investment income
Legal services
Incoming resources from charitable
activities
Grants
TOTAL INCOMING RESOURCES
RESOUCES EXPENDED
Expenses in charitable activities
TOTAL RESOUCES EXPENDED
Net Incomings and (outgoings) resources
Balances Brought Forward
Balances Carried Forward		 Notes
(16)
(14)		 Unrestricted
Funds
£
2,000
4,246
10,000
1,703
210
119,361
-
137,521
104,680
104,680		 Unrestricted
Funds
£
2,000
4,246
10,000
1,703
210
119,361
-
137,521
104,680
104,680		 Restricted
Funds
£
-
-
-
-
-
-
223,937
223,937
215,285
215,285		 Restricted
Funds
£
-
-
-
-
-
-
223,937
223,937
215,285
215,285		 Total
Total
Funds
Funds
2021
2020
£
£
2,000
6,000
4,246
-
10,000
-
1,703
1,440
210
61
119,361
117,015
223,937
104,995
361,458
**251,761 **
319,965
250,997
319,965
**250,997 **
32,841 **8,652 ** 41,493
763
3,017 52,265
55,282
54,519
**35,857 ** 60,917 96,774
**55,282 **

There were no recognized gains or losses for the above period other than those shown in

the statement of financial activities for the above financial year. All incoming resources and resources expended are derived from continuing activities.

( The notes attached form part of these financial statements )

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HARINGEY LAW CENTRE

BALANCE SHEET AS AT 31 MARCH 2021 MARCH 2021
Fixed Assets
Tangible assets
Current Assets:
Debtors
Cash at Bank & In Hand
Current Liabilities:
Creditors:
Amount falling due within one year:
Accruals and creditors
Net Assets
As Represented By:
Designated Fund
Unrestricted Fund
Restricted Fund
Total Funds		 Notes
(11)
(12)
(13)
(17)
(16)		 FUND
2021
£
6,689
5,000
102,537
17,452
96,774
25,000
10,857
60,917
96,774		 FUND
2020
£
368
27,250
48,342
20,678
55,282
-
3,017
52,265
**55,282 **

The directors are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477, and that no member or members have requested an audit pursuant to section 476 of the Act.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

This report has been prepared in accordance with the provisions applicable to companies’ subject to the small companies’ regime.

The accounts were approved by the Directors on 10[th] December 2021 and signed on their behalf by: -

Director and Chair Director and Treasurer Mrs O Walter Mr M A Islam

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HARINGEY LAW CENTRE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31[ST] MARCH 2021

1. Accounting basis.

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. HLC meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognized at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Preparation of the accounts on a going concern basis

The Charity trustees are of the view that measures taken subsequent to the year-end to reduce operating costs and successful in applying for continuation funding have secured the immediate future of the Charity for the next 12 to 18 months and that on this basis the charity is a going concern.

2. Cash Flow Statement

The trustees have taken advantage of the exemption in Financial Reporting Standard No 1 (revised) from including a cash flow statement in the financial statements on the grounds that the charity is small.

3. Incoming Resources

Income is recognized in the period to which it relates, unless specified otherwise by the funder. Project funding is, in general, repayable if not expended within the relevant project. Such income is only recognized to the extent that it ceases to be repayable. The income is accounted for on a receivable basis.

4. Resource Expended

Resources expended are included in the Statement of Financial Activities inclusive of VAT which cannot be recovered. Direct charitable expenditure include includes the direct costs of the activities. Where such costs relate to more than one functional cost category, they have been apportioned in line with the direct costs of the relevant service.

5. Taxation

Haringey Law Centre is a registered charity and is not liable for corporation tax on its income under section 505 of the Income and Corporation Taxes Act 1988 to the extent that it is applied to its charitable activities.

6. Tangible fixed assets

Fixed assets are stated at cost less accumulated depreciation.

Depreciation is provided to write off the cost, of all fixed assets over their expected useful life as follows: -

Fixtures and Fittings - 25% – Reducing balance Computer Equipment and Machinery - 33.33% – Straight line.

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7. Staff Costs

Wages
HMRC Tax, NIC and Pension		 2021
£
112,680
40,934
153,614		 2020
£
88,285
26,024
114,309

The number of staff were 6 and none of the employees’ received emoluments in excess of £60,000 in the year or the previous year.

A trustee employed by the charity to perform a specific role was paid a remuneration of £31,399 (Gross) in this financial year. This trustee is not remunerated to act as trustee for HLC. (This appointment had the board approval and until further review).

8. Related party Transactions

There were no other related party transactions in this financial year.

9. Operating Leases

Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities as incurred.

2021 2020
£ £
Expiring: Within one year 1,440 1,440
Expiring: Within two to five years 15,000 15,000

10. Stock and Work in progress

Work in progress is valued at the lower of cost and net realisable value.

11. Tangible Assets

Cost
Brought forward
Addition 2020/2021
Carried Forward
Depreciation
Brought forward
Charge for the year
Carried Forward
Net Book Value
At March 2021
At March 2020		 Fixtures &
Fittings
3,952
-
3,952
3,838
29
3,867
86
114		 Office
Equipment
15,162
9,620
24,782
14,908
3,271
18,179
6,604
254		 Total
19,114
9,620
**28,734 **
18,746
3,299
22,045
6,689
368

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12. Debtors

12. Debtors
Trust For London
Clients Work in progress
13. Creditors
Independent Examination
HMRC PAYE
Other Creditors		 2021
2020
£
£
22,250
5,000
5,000
5,000
27,250
2021
2020
£
£
1,550
980
-
3,698
15,902
16,000
17,452
20,678

14. Charitable Expenditure

14. Charitable Expenditure
Charitable Expenses
Wages
Sessional Worker
Safety Compliance
Volunteer Expenses
Staff Expenses
Governance
Training and Conference
Equipment Lease
IT and Web Expenses
Photocopying and Printing
Membership and Subscription
professional fees
Payroll administration
Insurance
Premises Cost
Bank Charges
Depreciation
Office and administration cost
Direct legal services		 Unrestricted
Funds
£
5,586
-
-
-
255
676
-
225
3,848
-
2,708
-
280
-
4,472
286
92
2,636
83,617
104,680		 Restricted
Funds
£
148,029
12,682
3,880
-
20
-
10,662
-
7,372
192
4,461
1,633
560
1,853
15,375
-
3,207
2,660
2,700
215,285		 2021
2020
Funds
Funds
£
£
153,614
114,309
12,682
7,085
3,880
-
-
428
275
636
676
499
10,662
2,204
225
60
11,220
3,454
192
2,334
7,169
4,538
1,633
2,961
840
595
1,853
1,829
19,847
19,291
286
448
3,299
123
5,296
5,085
86,317
85,119
319,965
250,997

15. Support Cost and Governance

Allocation of support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs, finance, personnel, and governance costs which support the Charity activities. These costs have been allocated between

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cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out below.

IT and Web Expenses
Photocopying and Printing
Membership and Subscription
Governance
Insurance
Premises Cost
Bank Charges
Depreciation
Office and administration cost		 General Support
£
11,220
192
-
-
-
19,847
-
3,299
5,296
39,853		 Governance
£
-
-
7,169
676
1,853
-
286
-
-
9,984		 Total
£
11,220
192
7,169
676
1,853
19,847
286
3,299
5,296
**49,837 **

16. Restricted Fund Analysis

Big Lottery Fund
People's Postcode Lottery
Community Support Fund
London Borough of Haringey
Law Centre Networks
The London Com Trust Foun
Trust For London
Bridge Renewal Trusts
City of London solicitors		 Balance at 1st
April 2020
Incoming
resources
Outgoing
resources
Balance at
31st March
2021
£
£
£
£
-
48,165
36,708
11,457
20,000
-
20,000
-
-
9,963
9,963
-
-
58,000
58,000
-
-
32,500
29,505
2,995
-
16,250
-
16,250
29,049
49,000
47,833
30,216
495
-
495
-
2,721
10,060
12,781
-
52,265
223,937
215,285
60,917

Purpose of restricted funds:

Community Support Fund : Employment advice and support People’s Postcode Lottery: Health, economic and wellbeing.

London Borough Haringey: Homelessness project and Covid support and housing Trust for London: Provision of specialist legal advice & advocacy work.

Bridge Renewal Trust : Health, economic and wellbeing.

City of London Solicitors : To provide Debt Advice and improve economic wellbeing. Law Centre Networks Fund : Covid Support

Big Lottery Fund: Covid support service

The London Com Trust : Covid Support Service

17. Designated Fund

The purpose of the Designated Fund of £25,000 is to cover organisation contingencies, IT Systems Upgrade and Strategic Planning to develop future plans and strategies for HLC.

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