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2022-03-31-accounts

HARINGEY LAW CENTRE

Registered Charity and Company Limited by Guarantee

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

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

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HARINGEY LAW CENTRE YEAR ENDED 31[ST] MARCH 2022

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 Patrick Passley Henry Egenti Valerie Williams Ruth Hayles Robert William Harris – Not a trustee from 16[th] August 2021

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 61 Fountains Crescent London, N14 6BD

2

HARINGEY LAW CENTRE

FINANCIAL ACCOUNTS

FOR YEAR ENDED 31[ST] MARCH 2022

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 2022

The Trustees present their report and the financial statements for the year ended 31 March 2022.

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, immigration 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 3,000 clients during the year. In addition, basic advice was provided in a number of new areas e.g., housing disrepair. We were funded by Reaching Community Lottery, London Borough of Haringey, Trust for London, and City of London Solicitors,

to deliver on the above activities during this year. HLC continues to deliver the Legal Aid Agency awarded contract in 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 grants, donations and legal services.

This year has continued to be challenging for the Law Centre particularly in combatting hybrid work delivery in response to the post pandemic and its aftermath impacting rising costs, huge rent and council arrears. 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, immigration, employment 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 complex and multi-layered matters including employment support. We also received a grant from Trust for London to provide welfare advice and appeals as well as campaigning. Reaching Community Lottery project to support the increased in demand for services. 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 2022.

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 23[rd] November 2022 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 2022, 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: 23/11/2022

Chartered Certified Accountant

TACTS ACCOUNTANT, 61 Fountains Crescent, London, N14 6BD

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HARINGEY LAW CENTRE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR END 31 MARCH 2022

INCOMING RESOURCES:-
Donations:
Blyth Watson Charitable Trusts
BD Pitmans
Indigo Trusts
Master Members
Joseph & Lilian Sully Foundation
Other donations
Incoming resources from generated funds:
London Borough of Haringey
Broadwater Community
Investment income
Legal services
Incoming resources from charitable
activities:
Grants
TOTAL INCOMING RESOURCES
RESOUCES EXPENDED
Expenses on charitable activities
TOTAL RESOUCES EXPENDED
Net Incomings and (outgoings) resources
Balances Brought Forward
Balances Carried Forward		 Notes

(16)
(14)		 Unrestricted
Funds
£
3,000
8,000
2,000
-
10,000
1,256
20,000
10,000
299
131,685
-
186,240
152,167
152,167		 Unrestricted
Funds
£
3,000
8,000
2,000
-
10,000
1,256
20,000
10,000
299
131,685
-
186,240
152,167
152,167		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
153,125
153,125
186,622
186,622		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
153,125
153,125
186,622
186,622		 Total
Total
Funds
Funds
2022
2021
£
£
3,000
2,000
8,000
-
2,000
-
-
4,246
10,000
10,000
1,256
1,703
-
-
-
-
299
210
131,685
119,361
153,125
223,937
339,365
361,458
338,789
319,965
338,789
319,965
34,073 (33,497) 576
41,493
35,858 60,917
96,774
55,282
69,930 27,421 97,350
96,774

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 form part of the financial statements)

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HARINGEY LAW CENTRE

BALANCE SHEET AS AT 31 MARCH 2022

Notes
Fixed Assets
Tangible assets
(11)
Current Assets:
Debtors
(12)
Cash at Bank
Current Liabilities:
Creditors:
Amount falling due within one year:
Accruals and creditors
(13)
Net Assets
As Represented By:
Designated Fund
(17)
Unrestricted Fund
Restricted Fund
(16)
Total Funds		 FUND
2022
£
3,460
5,000
91,913
3,023
97,350
50,000
19,929
27,421
97,350		 FUND
2021
£
6,689
5,000
102,537
17,452
96,774
25,000
10,857
60,917
96,774

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 23[rd] November 2022 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 2022

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

Salary Cost
Salary Costs		 2022
£
165,696		 2021
£
153,614

The number of staff were 9 and none of the employees’ received emoluments in excess of £60,000 in the year or the previous year.

A trustee was remunerated in this financial year. This trustee was not paid 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.

2022 2021
£ £
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 2022
At March 2021		 Fixtures &
Fittings
3,952
3,952
3,867
22
3,889
64
86		 Office
Equipment
15,162
9,620
24,782
18,179
3,207
21,386
3,396
6,604		 **Total **
19,114
**28,734 **
22,046
3,229
25,275
3,460
6,689

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12. Debtors

Clients Work in progress
13. Creditors
Professional fees
Other Creditors		 2022
2021
£
£
5,000
5,000
5,000
5,000
2022
2021
£
£
1,550
1,550
1,473
15,902
3,023
17,452

14. Charitable Expenditure

14. Charitable Expenditure
Charitable Expenses
Wages
Sessional Worker
Safety Compliance
Publicity and Adverts
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
£
801
-
-
282
-
638
-
-
5,505
761
2,079
24,550
300
-
10,359
138
3,229
1,057
102,467
152,167		 Restricted
Funds
£
164,895
12,272
-
-
-
-
550
-
3,375
-
-
-
-
581
-
-
-
1,798
3,151
186,622		 2022
2021
Funds
Funds
£
£
165,696
153,614
12,272
12,682
-
3,880
282
-
-
275
638
676
550
10,662
225
8,880
11,220
761
192
2,079
7,169
24,550
1,633
300
840
581
1,853
10,359
19,847
138
286
3,229
3,299
2,855
5,296
105,618
86,317
338,789
319,965

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

13

IT and Web Expenses
Photocopying and Printing
Membership and Subscription
Governance
Insurance
Premises Cost
Bank Charges
Depreciation
Office and administration cost		 General Support
£
8,880
761
-
-
-
10,359
-
3,229
2,855
26,084		 Governance
£
-
-
2,079
638
581
-
138
-
-
3,437		 Total
£
8,880
761
2,079
638
581
10,359
138
3,229
2,855
29,521

16. Restricted Fund Analysis

Big Lottery Fund
London Borough of Haringey
Law Centre Networks
The London Com Found.
Trust For London
City of London solicitors		 Balance at 1st
April 2021
Incoming
resources
Outgoing
resources
Balance at
31st March
2022
£
£
£
£
11,457
48,126
59,583
-
-
49,999
49,999
-
2,995
-
2,995
-
16,250
-
16,250
-
30,216
50,000
55,253
24,963
-
5,000
2,542
2,458
60,917
153,125
186,622
27,421

Purpose of restricted funds:

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

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 Foundation : Covid Support Service

17. Designated Fund

The purpose of the Designated Fund of £50,000 is to cover organisation contingencies, IT Systems Upgrade and Strategic Planning to develop future plans and strategies for HLC.

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