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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 01418763 (England and Wales) REGISTERED CHARITY NUMBER: 277927

SOUTHWARK LAW CENTRE

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Berringers LLP Lygon House 50 London Road Bromley Kent BR1 3RA

SOUTHWARK LAW CENTRE

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 March 2021

Page
Reference and administrative details 1
Report of the trustees 2 to 10
Report of the independent auditors 11 to 13
Statement of financial activities 14
Balance sheet 15
Cash flow statement 16
Notes to the cash flow statement 17
Notes to the financial statements 18 to 27
Detailed statement of financial activities 28 to 29

SOUTHWARK LAW CENTRE

REFERENCE AND ADMINISTRATIVE DETAILS for the year ended 31 March 2021

TRUSTEES Ms J Bourke-White (resigned 28.4.2020) Ms V Fewkes Mr S D O Lancashire Cllr A Gallagher (appointed 25.3.2021) Ms F J MacGregor Treasurer L McGown (appointed 10.3.2021) Ms V Olisa Ms J Peirce (resigned 4.8.2020) Mr O J Persey Mr A Polley Mr J Rhodes Chair Ms L H Stoy Ms L C Taylor (resigned 28.4.2020) Mr J Wells (resigned 5.4.2021)

COMPANY SECRETARY Ms S Causer

REGISTERED OFFICE Hanover Park House 14-16 Hanover Park Peckham London SE15 5HG

REGISTERED COMPANY 01418763 (England and Wales) NUMBER

REGISTERED CHARITY NUMBER 277927

AUDITORS Berringers LLP Lygon House 50 London Road Bromley Kent BR1 3RA

Page 1

SOUTHWARK LAW CENTRE

REPORT OF THE TRUSTEES for the year ended 31 March 2021

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Southwark Law Centre was founded in 1976. Our main office is in Peckham. Over the past few years, a branch office has been developed in Lewisham which was recognised as Lewisham Law Centre by the Law Centres Network in July 2020. The trustees would like to thank AB Charity, Allen and Overy Foundation, Hogan Lovells LLP, Indigo Charity, The Legal Education Foundation, and London Legal Support Trust for their help in setting up Lewisham Law Centre, and to Citizens Advice Lewisham for hosting and supporting the Centre's housing caseworkers.

The objectives set out in the Law Centre's Memorandum of Association are the relief of poverty, suffering and distress through the provision of free, impartial, and confidential specialist legal advice and representation.

The Law Centre provides specialist legal advice and representation, which is free and of high quality in the areas of discrimination, employment, housing, planning and public law, welfare rights, and asylum/immigration law to those who could not otherwise afford to receive legal services.

Its constitution enables the Law Centre to take cases from all Greater London Boroughs, but the focus remains mainly for those who live, work or study in the London Boroughs of Southwark and Lewisham. More recently since the closure of Lambeth Law Centre, casework for residents of Lambeth has increased.

The Law Centre priorities cases which involve the prevention of homelessness, destitution, discrimination, breaches of human rights and poverty. We provide training on legal rights for local advice and community agencies. We campaign to influence law, policy and practice and promote human and civil rights.

Services and approach during the pandemic

In March 2020, when the first Covid -19 lockdown began, the Law Centre quickly moved to providing services remotely. Staff at Southwark and Lewisham Law Centres were provided with equipment to enable them to work safely from home. It was felt that there was going to be an increased need for legal advice caused by the pandemic so the Law Centre did not furlough any members of staff.

The Law Centre did in fact take on new members of staff during the year and developed projects to respond to some of the needs created by the pandemic. The Law Centre worked with Southwark Council to provide immigration advice for homeless people housed in hotels as part of 'Everyone In ' and developed support for vulnerable private tenants funded by the Guys and St Thomas' Charity.

The Trustee Board finance sub-committee has met more regularly over the past year to maintain a close watch on finances including cashflow updates. Many of the Law Centre funders stepped up to help meet the challenges caused by the pandemic, including flexible use of funding and lighter touch reporting. The Law Centre is very grateful to the Law Centres Network for facilitating access to the Community Justice Wave 1 funding.

The Law Centre received funding to deal with Covid 19 issues from the different waves of the London Community Response, and from Southwark Council's Covid Emergency Fund. This funding assisted the Law Centre to pay some of the extra costs for items such as equipment to enable staff to work from home.

The Law Centre staff, and Trustees met to review the business plan in March 2020 and carried out a full review and update of the plan in December 2020, to take account of the changed environment.

Page 2

SOUTHWARK LAW CENTRE

REPORT OF THE TRUSTEES for the year ended 31 March 2021

OBJECTIVES AND ACTIVITIES

Significant activities

During the year the Law Centre took on 593 new cases, with 93 additional cases being dealt with by Lewisham Law Centre, a significant achievement during the pandemic. These cases are in addition to the ongoing cases from previous years.

It provided second tier advice on 315 cases to generalist advice and community organisations.

The Law Centre provided eight training/workshops on social welfare law topics, and planning and regeneration issues for Southwark advice agencies reaching over 300 frontline workers.

The service the Law Centre currently provides is casework-based and involves advocacy, preparation for and representation at tribunals, arbitration and review panels, and in the Courts within its specialist areas. These are: employment and discrimination, housing, public law, welfare rights, asylum and immigration.

The Law Centre does not operate a drop-in service for the public. In general clients are introduced by referral from another organisation. The Law Centre takes referrals from a wide variety of agencies including youth workers, teachers, mental health workers, advisors, councillors, Members of Parliament, and generalist advisors. Cases are also generated by the County Court Duty Scheme. Targeting the most complex cases provides the most effective use of experienced caseworkers' and solicitors' time.

The Law Centre aims to provide support to other agencies which refer cases to it even when it cannot take on particular cases. That support may be telephone advice to assist the referral agency in resolving the problem without the client seeing a lawyer or help in finding other sources of advice from groups such as the Southwark Housing Lawyers Group, the Lewisham Housing Lawyers Group or the Housing and Immigration Group.

The Law Centre provides training for frontline workers across all areas of social welfare law, planning and regeneration.

The Law Centre leads or participates in the following partnerships and forums:

- Southwark Legal Advice Network:

The Network which is facilitated by Citizens Advice Southwark (CAS) brings together the core advice agencies funded by Southwark Council in order to identify local need for legal advice and strategically plan services.

- Southwark Universal Credit Network, and Strategic Forum:

Funded by United St Saviours Charity this is a joint project with CAS and Community Southwark to provide information and training around Universal Credit ("UC") issues for community agencies in the Borough. The UC Strategic Forum brings together key community groups, funders, MPs, councillors, and officers from Lambeth and Southwark to consider trends, evidence-based reports and policy initiatives on UC issues.

- Housing and Immigration Group:

Funding from Trust for London enables the Law Centre to coordinate the London wide Housing and Immigration Group which facilitates the sharing of good practice and information between practitioners and referrals for urgent cases.

- Southwark Homelessness Forum:

The Forum brings together representatives from the voluntary sector and representatives of Southwark Council to try to develop a joined-up approach to tackling issues of homelessness and ensuring policies do not adversely affect local residents. The Law Centre's Executive Director chairs these meetings.

Page 3

SOUTHWARK LAW CENTRE

REPORT OF THE TRUSTEES for the year ended 31 March 2021

OBJECTIVES AND ACTIVITIES

The Law Centre has facilitated and chaired meetings between the core Southwark advice agencies and the Exchequer service. The aim is to work in partnership particularly around the impact of Universal Credit on tenants' rent accounts.

- Forum For Equalities and Human Rights and Equality Human Rights Panel ("EHRP")

The Executive Director of the Law Centre is a member of the EHRP, which acts as a critical friend to Southwark Council , commenting on policy initiatives and equality analysis.

This group was set up in 2019 to provide a channel for discussion between Southwark Council's planning, public health and community engagement departments, and community agencies leading on planning and regeneration support

The Law Centre is part of a coalition of agencies coming together as the Windrush Justice Clinics (WJC). The WJC is a collaboration between Southwark Law Centre and North Kensington Law Centre; the University of Westminster Legal Advice Clinic, University of Greenwich Legal Advice Clinic, and London South Bank University Legal Advice Clinic; and community groups Claudia Jones Organisation, The Windrush Compensation Project and The Jigsaw House Society. Each organisation plays a key role within our three-tier model of support, aimed at ensuring victims of the Windrush scandal receive the compensation to which they should be entitled.

Public benefit

The trustees consider that the objectives and activities stated above of the Law Centre provide public benefit within the meaning and terms of the Charities Act 2011.

Volunteers

During the pandemic the Law Centre had to suspend the office volunteer programme but is committed to relaunching this later in 2021/22 as restrictions are lifted.

In the year 2020/21 one student of Kings College London legal department volunteered with the Law Centre, providing remote support on a research project. Pro bono support was received from Hogan Lovells LLP to assist in the negotiation of the Southwark Law Centre premises lease and to help with the development of the Lewisham Law Centre. Bryan Cave Leighton Paisner LLP provided pro bono support for HR issues and policy development.

Page 4

SOUTHWARK LAW CENTRE

REPORT OF THE TRUSTEES for the year ended 31 March 2021

STRATEGIC REPORT Achievement and performance Charitable activities Areas of Law

Employment

In 2020/21 the Law Centre provided advice in 71 employment cases, continuing to provide a regular telephone outreach session for clients referred by Citizens Advice Southwark.

It is envisaged that the demand for high quality employment advice will increase in 2021/22. During the pandemic almost 40,000 people in Southwark have been out on furlough. Many people may be made redundant and discrimination issues may increase.

Discrimination

In 2019 the Law Centre was awarded Legal Aid contracts in Lewisham and Southwark to provide discrimination casework. Training has been provided for caseworkers and we aim to embed identifying and dealing with issues of discrimination across all our areas of work.

Housing

Housing remains one of the main advice needs in Southwark and Lewisham. In the year 2020/21 the Law Centre dealt with 242 cases.

The Law Centre specialises in cases involving homelessness, possession, eviction, disrepair and asylum support law. During the pandemic there has been an eviction ban (lifted in May 2021) Therefore the team has dealt with a much lower number of cases involving home repossession for social housing tenants. This has enabled us to provide more support for private tenants, including those experiencing serious disrepair issues and illegal eviction. In November 2020 the Law Centre received funding from the Guys and St Thomas' Charity to work on a project in partnership with Kineara, a social enterprise. This project aims to provide holistic support for vulnerable tenants in the private rented sector.

The Law Centre is funded by Trust for London to provide housing advice for destitute migrants. This funding was enhanced during 2020/21 with funding from Wave 4 of the London Community Response led by the London Legal Support Network. Through this casework, the Law Centre has held local authorities to account and improved decision-making. The Law Centre has provided specialist second tier advice to local frontline agencies to improve triaging for this client group, and enabled sharing of best practice through administrating and co-ordinating the Housing and Immigration Group (HIG).

In 2020/21 the Law Centre received funding from United St Saviour's Charity and the Walcott Foundation as part of the London Community Response Wave 2 which enabled it to recruit a para legal to support the housing and welfare rights teams.

Community Care

The Law Centre carries out community care work linked to its housing cases, particularly in the areas of homelessness and 'Section 17' support for destitute families who have been given 'No Recourse to Public Funds' status because of problems with their immigration status. Section 17 of the Children Act 1989 (s.17) gives local authorities the power to provide accommodation and financial support to families with 'children in need', even if they have no recourse to public funds.

Asylum and Immigration

In the year 2020/21 the Law Centre dealt with 219 immigration and asylum cases, with an additional 67 being dealt with by Lewisham Law Centre.

It prioritises cases for vulnerable people such as children, young people, people at risk of gender violence and people with mental and physical health problems. Many of the clients are homeless and destitute.

Page 5

SOUTHWARK LAW CENTRE

REPORT OF THE TRUSTEES for the year ended 31 March 2021

In 2020/21 the Law Centre received funding and worked in partnership with Southwark Council to provide urgent immigration advice for the rough sleepers with No Recourse to Public Funds ('NRPF') that the council had housed as part of the 'Everyone In' initiative. Over 40 people were assisted as part of this project. In addition Greenwich Council provided a grant for similar work on a smaller scale.

The Law Centre has received continued funding from Lewisham Council to take referrals for specialist immigration advice for families and individuals supported by Lewisham's NRPF team. In 2020/21 the Law Centre began a partnership immigration advice project with Action for Refugees in Lewisham ('AFRIL') in order to meet an identified need of expanding access to immigration casework in the Borough.

In January 2020 the Law Centre began a project to provide specialist legal advice in partnership with the homeless teams at Guy's, and St Thomas' hospitals, funded by the GSTT Charity Samaritan fund. The project provides casework and representation for homeless patients and second tier advice and training for hospital staff. In March 2021 an evaluation report on the first year of the project was launched, evidencing the successful outcomes of the project, including savings to the NHS. The project builds on an original project funded by Pathway which continues to provide second tier support for the homeless teams at Kings College Hospital and South London and Maudsley Hospital.

During 2020/21 the Law Centre received funding from the Home Office and from Lambeth Council to provide assistance with more complex applications for settlement from vulnerable EEA nationals The Law Centre works in partnership with New Europeans and Citizens Advice Southwark on the Home Office funded project and with Citizens Advice Merton and Lambeth and IndoAmerican Refugee and Migrant Organisation on the Lambeth element of the project. This has been a major area of work in the lead up to the deadline for making applications in June 2021.

The Law Centre continues to work with the South London Refugee Association, to provide targeted consultancy support for their staff, and received funding for a short term project from Trust for London via the London Funders Community Response Wave.

The Law Centre is grateful for the funding from Children in Need to continue to provide immigration advice for children and young people.

In 2019/20 the Law Centre continued its partnership with Project 17 funded by Trust for London to provide specialist immigration advice for families with No Recourse to Public Funds.

The Law Centre is grateful to the AB Charitable Trust for continuing its funding to develop the human rights based approach in relation to supporting clients to regularise their immigration status.

In 2020/21 funding was secured from Trust for London as part of the Wave 3 London Community Response for a short project to provide training for staff and volunteers of Southwark Day Centres for Asylum Seekers.

Welfare Rights

In 2019/20 the Law Centre dealt with 70 welfare rights cases. The team specialises in appeals to the First Tier Tribunal (Social Security and Asylum Support), Upper Tribunal, and Judicial Review cases. Legal Aid is rarely available for welfare rights cases and the Law Centre's casework was largely funded thanks to the important long-term Southwark Council contract.

The introduction of UC continues to cause major problems for local residents, particularly around the payment of housing costs. UC comes on top of the other cuts to welfare benefits that have faced residents over the past few years such as the benefit cap and bedroom tax.

The Law Centre provides training for frontline workers as part of the Universal Credit Network in Southwark.

Planning Voice

Page 6

SOUTHWARK LAW CENTRE

REPORT OF THE TRUSTEES for the year ended 31 March 2021

The overall aim of this innovative project is to support and empower local people particularly those from economically and socially disadvantaged communities to be able to influence developments affecting the environment in which they live. In the 1970s and 1980s the Law Centre provided legal advice on planning issues at a time of huge redevelopment in Southwark. In order to respond to local needs in this new period of significant redevelopment it has been identified that the Law Centre should once again support residents in this area.

Initial 3-year funding from United St Saviour's Charity enabled Southwark Law Centre to employ a three day per week caseworker to provide group training sessions on planning issues and one to one support for local residents including advocacy and drafting representations. In January 2020 the Law Centre was awarded 3-year funding from the National Lottery which has enabled the planning solicitor post to become full time and to cover a wider area of Southwark.

Public Law

The Law Centre has a small number of Legal Aid 'Matter Starts' in this area. It is important that it maintains its ability to challenge unreasonable decisions made by public bodies. In the year 2020/21 the Law Centre carried out 14 public law challenges on areas such as challenges to vulnerable migrants being housed in ex army barracks during the pandemic.

Financial review

Financial position

The Law Centre's gross income was higher this year at £1,514,756 against £1,161,511 last year, an increase of £353,245. Higher outlay on resources expended, up from £1,108,771 to £1,409,288 resulted in net incoming resources of £105,468 against £52,740 for the previous year. At the year end restricted funds were £54,996 (2020 - £27,500), whilst unrestricted income funds amounted to £646,968, against £568,996 in the previous year, of which £280,000 (2020 - £200,000) has been designated.

Principal funding sources

Legal Aid funding accounts for around 40% of income, the contract with Southwark Council 11% with the remainder coming from Charitable grants, donations and contracts with Lewisham and Lambeth Councils to provide immigration advice. The Law Centre holds Legal Aid contracts, in housing, debt and welfare benefits, public law, discrimination, immigration and asylum at Southwark Law Centre with a housing contract and a discrimination contract at Lewisham Law Centre.

The Law Centre acknowledges with gratitude the generosity of all those who give it grant funding.

The total amount of funding received from Southwark Council in respect of the specialist advice contract was £168,693. The contract has been extended for a further five years from 2020.

The amount recorded in the financial statements is the net amount due to the Law Centre after payments to Cambridge House Law Centre and Migrant Legal Action, which are partner organisations with the Law Centre in the specialist contract with Southwark Council.

Page 7

SOUTHWARK LAW CENTRE

REPORT OF THE TRUSTEES for the year ended 31 March 2021

STRATEGIC REPORT Financial review

Reserves policy

The Law Centre's reserves have been set in accordance with the Law Centre's reserve policy, which is formulated pursuant to Charity Commission guidance. Best practice suggests that the Law Centre should have an appropriate proportion of its annual outgoings available by way of reserves, and the level of the Law Centre's reserves is regularly monitored by the trustees.

As part of our Financial Management processes, the Board of Trustees has set a target of working towards accumulating and maintaining a reserve fund which represents six months annual operating costs. This amount is reflective of general good practice in the Charity Sector and is even more important in light of the financial impact of the pandemic. In the financial year 2021/22 this would amount to approximately £550,000. These reserves enable the Law Centre to deal with the following contingencies:-

In addition we wish to set aside the following amounts :

This policy is reviewed at least annually when the Trustee Board considers the end of year projections and the audited accounts.

Future plans

The Law Centre will continue to build on its wide range of experience and deliver the highest quality legal advice to the population of Southwark and surrounding boroughs as far as resources allow.

The Trustee Board and staff met in March 2020 and again in December 2020 to discuss and review the Law Centre's business plan.

The Law Centre has agreed the following key objectives for the period 2021/22;

Page 8

SOUTHWARK LAW CENTRE

REPORT OF THE TRUSTEES for the year ended 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Law Centre is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

All the trustees who are recruited live or work within the Law Centre's area of benefit. The recruitment of trustees is through advertising with volunteer support agencies, adverts on our website, contact with local community organisations, advice agencies and legal providers in the area of benefit. The Law Centre also encourages former clients and volunteers to be members of the charity and to consider joining the Trustee Board. Prospective trustees are invited to attend and observe at trustees' meetings and are recruited on the basis of relevant skills, experience and knowledge. An annual skills audit is carried out.

The trustees retire from office on a rotational basis (one third at each Annual General Meeting, based on length of service), but may stand for re-election.

Organisational structure

The Trustee Board meets approximately every two months to oversee the strategic management of the organisation. The trustees met eight times during 2020/21 including meeting with staff for 2 business planning events.

The Human Resources sub-committee meets at least quarterly, and reports to the Trustee Board. During 2020/21 the Finance sub-committee met at least monthly to consider cash flow. In recognition of the need for further expert support the trustees have appointed a finance officer on a self-employed basis for two days a week.

Day-to-day management of the Law Centre is delegated to the Director, Sally Causer, who works full-time. Senior solicitors are accountable to the Solicitors Regulation Authority for the conduct of legal cases, and for providing day to day supervision of casework.

All members of the company, who include members of the Trustee Board, undertake to contribute an amount not exceeding £1 each in the event that the company is wound up while they are members, or within one year of cessation of membership.

Induction and training of new trustees

All new trustees have an induction meeting with the Director to observe the work of the Law Centre. All trustees receive full details of the policies and procedures of the Law Centre.

Key management remuneration

Key management remuneration
2021 2020
£ £
Key management compensation in year 67,466 66,958

The remuneration is the total sum of the salaries, social security contributions and pension costs paid to, and in respect of, the Director. No payments were made to any of the trustees for their management responsibilities.

Risk management

The trustees are keenly aware that their responsibilities include the duty to plan for the future and to prepare the Law Centre for the risks and opportunities they have identified beyond the current financial year.

The Law Centre reviews an annual operational risk assessment and a business continuity plan. Risks include loss of funding, loss of key staff and failure to perform on grants and contracts.

The Law Centre has developed a separate detailed risk assessment for the Lewisham service.

Page 9

SOUTHWARK LAW CENTRE

REPORT OF THE TRUSTEES for the year ended 31 March 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Southwark Law Centre for the purposes of company law) are responsible for preparing the Report of the trustees 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Report of the trustees, incorporating a Strategic report, approved by order of the board of trustees, as the company directors, on 26 October 2021 and signed on the board's behalf by:

Mr J Rhodes - Trustee

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SOUTHWARK LAW CENTRE

Opinion

We have audited the financial statements of Southwark Law Centre (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of financial activities, the Balance sheet, the Cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 Auditors' 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 the charitable company'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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Report of the independent auditors thereon.

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.

In connection with our audit of the financial statements, 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 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:

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SOUTHWARK LAW CENTRE

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 Report of the trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of trustees' responsibilities, 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.

Our 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 a Report of the independent auditors 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 is detailed below:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and error, we considered the following:

Our procedures to respond to risk include the following:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities.This description forms part of our Report of the Independent Auditors.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SOUTHWARK LAW CENTRE

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 auditors' 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.

John Cardnell BSc FCA (Senior Statutory Auditor) for and on behalf of Berringers LLP Lygon House 50 London Road Bromley Kent BR1 3RA

26 October 2021

Page 13

SOUTHWARK LAW CENTRE

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2021

Notes
INCOME AND
ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Legal representation
Investment income
3
Total
EXPENDITURE ON
Charitable activities
5
Legal representation
NET INCOME
Transfers between funds
14
Net movement in funds
RECONCILIATION OF
FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD		 Unrestricted
Designated
funds
funds
£
£
13,717
-
1,303,746
-
208
-
1,317,671
-
1,239,699
-
77,972
-
(80,000)
80,000
(2,028)
80,000
368,996
200,000
366,968
280,000		 2021
Restricted
Total
funds
funds
£
£
-
13,717
197,085
1,500,831
-
208
197,085
1,514,756
169,589
1,409,288
27,496
105,468
-
-
27,496
105,468
27,500
596,496
54,996
701,964		 2020
Total
funds
£
15,556
1,145,114
841
1,161,511
1,108,771
52,740
-
52,740
543,756
596,496

The notes form part of these financial statements

Page 14

SOUTHWARK LAW CENTRE

BALANCE SHEET 31 March 2021

Unrestricted
Designated
funds
funds
Notes
£
£
FIXED ASSETS
Tangible assets
11
907
-
CURRENT ASSETS
Debtors
12
460,484
-
Cash at bank and in hand
109,606
280,000
570,090
280,000
CREDITORS
Amounts falling due within one
year
13
(204,029)
-
NET CURRENT ASSETS
366,061
280,000
TOTAL ASSETS LESS
CURRENT LIABILITIES
366,968
280,000
NET ASSETS
366,968
280,000
FUNDS
14
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
-
16,726
62,237
78,963
(23,967)
54,996
54,996
54,996		 2021
Total
funds
£
907
477,210
451,843
929,053
(227,996)
701,057
701,964
701,964
646,968
54,996
701,964		 2020
Total
funds
£
1,210
510,167
255,179
765,346
(170,060)
595,286
596,496
596,496
568,996
27,500
596,496

The financial statements were approved by the Board of Trustees and authorised for issue on 26 October 2021 and were signed on its behalf by:

Mr J Rhodes - Trustee

The notes form part of these financial statements

Page 15

SOUTHWARK LAW CENTRE

CASH FLOW STATEMENT for the year ended 31 March 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the
reporting period		 2021
£
196,456
196,456
-
208
208
196,664
255,179
451,843		 2020
£
(38,126)
(38,126)
(3,287)
841
(2,446)
(40,572)
295,751
255,179

The notes form part of these financial statements

Page 16

SOUTHWARK LAW CENTRE

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 March 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of financial
activities)
Adjustments for:
Depreciation charges
Interest received
Decrease/(increase) in debtors
Increase in creditors
Net cash provided by/(used in) operations		 2021
£
105,468
303
(208)
32,957
57,936
196,456		 2020
£
52,740
3,691
(841)
(191,724)
98,008
(38,126)

2.

ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.20 Cash flow At 31.3.21
£ £ £
Net cash
Cash at bank and in hand 255,179 196,664 451,843
255,179 196,664 451,843
Total 255,179 196,664 451,843

The notes form part of these financial statements

Page 17

SOUTHWARK LAW CENTRE

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings -25% on reducing balance
Law library -25% on reducing balance
Computer equipment -100% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in Note 14 on the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The Centre participates in a Local Authority pension scheme. The assets of the scheme are held separately from those of the charity. It is therefore not possible to identify the assets and liabilities for participating employees.

continued...

Page 18

SOUTHWARK LAW CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

2. DONATIONS AND LEGACIES

2.
DONATIONS AND LEGACIES
Donations
3.
INVESTMENT INCOME
Deposit account interest
4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Grants
Legal representation
Legal Aid Contract &
Representation
Legal representation
Specialist contracts
Legal representation
Specialist contract with Southwark Council
Contract monies received from Southwark Council
Grant partners paid
Income relevant to Southwark Law Centre acknowledged
Lewisham Immigration Specialist Contract
Grants received, included in the above, are as follows:
Southwark Council
Charities Aid Foundation
National Lottery Community Fund
Children in Need
Trust for London
Comic Relief
AB Charitable Trust
City Bridge Trust
Kings Health Partnership Pathway
London Legal Support Trust
Carried forward		 2021
£
13,717
2021
£
208
2021
£
932,696
331,278
236,857
1,500,831		 2020
£
15,556
2020
£
841
2020
£
410,530
527,258
207,326
1,145,114
2021 2020
£ £
338,800 369,600
(170,107) (187,274)
168,693 182,326
2021 2020
£ £
58,164 25,000
2021
£
13,000
17,815
65,295
40,000
30,000
-
7,500
10,630
11,716
21,771
217,727		 2020
£
-
-
15,969
40,000
30,000
9,285
30,000
65,882
2,500
15,000
208,636

continued...

Page 19

SOUTHWARK LAW CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

4. INCOME FROM CHARITABLE ACTIVITIES - continued

2021 2020
£ £
Brought forward 217,727 208,636
Project 17 16,763 8,382
United St Saviours Charity 24,788 17,792
Law Centres Network 201,000 -
South London Refugee Association - 2,500
The Legal Education Foundation 118,235 76,275
Access to Justice 5,400 -
EU Commission 23,321 24,552
Guardian appeal - 16,500
Maternity Action - 7,006
Guy's & St Thomas' Charity 40,000 16,726
The Indigo Trust 37,000 15,000
Allen & Overy Foundation 7,000 7,000
The Home Office 57,246 10,161
Action for refugees in Lewisham 16,232 -
Cin Booster for Mighrant Children 3,100 -
Walcot Foundation 18,338 -
Westminster Foundation 5,259 -
Guys & St Thomas Samaritan Project 33,451 -
Wave 3 Covid-19 emergency fund 29,836 -
Southwark NRPF 78,000 -
932,696 410,530
5. PROVISION OF LEGAL SERVICES
Support
Direct costs (see
Costs note 6) Totals
£ £ £
Legal representation 1,281,454 127,834 1,409,288
6. SUPPORT COSTS
Governance
Finance Other costs Totals
£ £ £ £
Legal representation 3,460 117,174 7,200 127,834

continued...

Page 20

SOUTHWARK LAW CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

7. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2021 2020
£ £
Auditors' remuneration 7,200 7,300
Depreciation - owned assets 303 3,691
Other operating leases 3,460 4,408

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2021
£
920,811
91,991
198,966
1,211,768		 2020
£
694,475
69,746
149,954
914,175

The average monthly number of employees during the year was as follows:

Legal advice
Administration		 2021
23
6
29		 2020
19
4
23

No employees received emoluments in excess of £60,000.

continued...

Page 21

SOUTHWARK LAW CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

10. CLIENT BANK ACCOUNTS

Monies held in client bank accounts
Monies due to clients
11.
TANGIBLE FIXED ASSETS
Fixtures
and
fittings
£
COST
At 1 April 2020 and 31 March 2021
32,004
DEPRECIATION
At 1 April 2020
30,797
Charge for year
302
At 31 March 2021
31,099
NET BOOK VALUE
At 31 March 2021
905
At 31 March 2020
1,207
12.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Prepayments		 2021 2020
£ £
120,821 133,158
120,821 133,158
Law
library
£
8,650
8,647
1
8,648
2
3		 Computer
equipment
£
39,283
39,283
-
39,283
-
-
2021
£
434,397
42,813
477,210		 Totals
£
79,937
78,727
303
79,030
907
1,210
2020
£
434,455
75,712
510,167

Included in trade debtors are amounts earned but not invoiced until post year end. These are deemed actual debtors and not work in progress.

continued...

Page 22

SOUTHWARK LAW CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
VAT
Accrued expenses
Deferred income		 2021
£
-
27,806
18,361
52,362
129,467
227,996		 2020
£
1
17,429
33,295
41,719
77,616
170,060

14. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
Unrestricted funds
General fund
Staff Contingency fund
Equipment fund
Lease and premises fund
Restricted funds
Migrant Housing Advice Project
Migrant Children & Young People's Project
Homeless Patients Legal Advocacy Fund
Access to Justice
Action for Refugees
Walcot Foundation
TOTAL FUNDS		 At 1.4.20
£
368,996
50,000
50,000
100,000
568,996
20,000
7,500
-
-
-
-
27,500
596,496		 Net
movement
in funds
£
77,972
-
-
-
77,972
(20,000)
(7,500)
16,726
3,700
16,232
18,338
27,496
105,468		 Transfers
between
funds
£
(80,000)
30,000
20,000
30,000
-
-
-
-
-
-
-
-
-		 At
31.3.21
£
366,968
80,000
70,000
130,000
646,968
-
-
16,726
3,700
16,232
18,338
54,996
701,964

continued...

Page 23

SOUTHWARK LAW CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

14. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Migrant Housing Advice Project
Migrant Children & Young People's Project
Justice First Fellowship
Homeless Patients Legal Advocacy Fund
EU Settlement Application Fund
EU Latin American Mobility & Participation
Project
Access to Justice
Action for Refugees
Walcot Foundation
TOTAL FUNDS		 Incoming
resources
£
1,317,671
-
-
88,235
16,726
51,308
846
5,400
16,232
18,338
197,085
1,514,756		 Resources
expended
£
(1,239,699)
(20,000)
(7,500)
(88,235)
-
(51,308)
(846)
(1,700)
-
-
(169,589)
(1,409,288)		 Movement
in funds
£
77,972
(20,000)
(7,500)
-
16,726
-
-
3,700
16,232
18,338
27,496
105,468

Comparatives for movement in funds

Unrestricted funds
General fund
Staff Contingency fund
Equipment fund
Lease and premises fund
Restricted funds
Migrant Housing Advice Project
Migrant Children & Young People's Project
European Union Latin American Mobility &
Participation Project
TOTAL FUNDS		 At 1.4.19
£
341,256
70,000
5,000
100,000
516,256
7,500
20,000
-
27,500
543,756		 Net
movement
in funds
£
55,963
-
-
-
55,963
-
-
(3,223)
(3,223)
52,740		 Transfers
between
funds
£
(28,223)
(20,000)
45,000
-
(3,223)
-
-
3,223
3,223
-		 At
31.3.20
£
368,996
50,000
50,000
100,000
568,996
7,500
20,000
-
27,500
596,496

continued...

Page 24

SOUTHWARK LAW CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

14. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Migrant Housing Advice Project
Migrant Children & Young People's Project
Migrant Women’s Project
Partnership with Project 17
Universal Credit Mitigation Project
Planning Voice Project
European Union Latin American Mobility &
Participation Project
Justice First Fellowship
EU Training Project
Strategic Legal Fund
Lambeth Welfare Rights Project
Homeless Patients Legal Advocacy Fund
EU Settlement Application Fund
TOTAL FUNDS		 Incoming
resources
£
896,481
30,000
40,000
9,285
8,382
1,042
32,719
634
53,775
406
23,506
14,882
16,726
33,673
265,030
1,161,511		 Resources
expended
£
(840,518)
(30,000)
(40,000)
(9,285)
(8,382)
(1,042)
(32,719)
(3,857)
(53,775)
(406)
(23,506)
(14,882)
(16,726)
(33,673)
(268,253)
(1,108,771)		 Movement
in funds
£
55,963
-
-
-
-
-
-
(3,223)
-
-
-
-
-
-
(3,223)
52,740

Restricted monies are carried forward to be utilised in the next financial year.

AB Charity: funding for Lewisham Law Centre

Access to Justice Foundation: funding for one place on the 'Management & Leadership' 'training programme and further funding for core costs and two days' consultancy.

Action for Refugees in Lewisham Project: Funding for solicitor costs to provide immigration advice for families in Lewisham.

Allen and Overy Foundation: funding for an immigration para legal

Charity Aid Foundation: core funding to assist with Covid -19 contingencies.

EU Settlement Application Fund: funding from the Home Office via Law Centre Network to provide support on EU settlement applications.

EU Training Project: funds were provided via the Law Centres Network to provide training on EU Citizens rights.

Homeless Patients Legal Advocacy Fund: funding from Guys & St Thomas' Samaritan Fund for housing and immigration advice for homeless patients.

Indigo Charity: funding for Lewisham Law Centre

continued...

Page 25

SOUTHWARK LAW CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

14. MOVEMENT IN FUNDS - continued

Justice First Fellowship Training: funding by The Legal Education Foundation towards the salary and supervision of two trainee solicitors.

Kings Health Partnership Pathway: funding for training and second tier advice for health professionals

Lambeth council: funding to provide advice in complex EU Settlement Applications

Latin American Mobility and Participation Project: This training and advice project has been funded by the European Commission via the Law Centres Network.to work in partnership with the Indoamerican Refugee and Migrant Organisation.

Lewisham Immigration Project: funded by the London Borough of Lewisham to provide an accredited immigration advice service for households with NRPF supported by the council.

London Legal Support Trust: core funding as part of the 'Centre of Excellence' project, and funding to expand work with homeless migrants.

Migrant Children & Young People's Project: The funding from Children in Need contributes to the salary and related costs of a solicitor to provide immigration advice for young migrants.

Migrant Housing Project: The funding from Trust for London contributes to the salary of a solicitor to provide housing and community care advice for destitute migrants.

Partnership with Project 17: The funding from Trust for London contributes to the salary of a solicitor to provide immigration advice for destitute migrant families with young children.

Planning Voice Project: The funding from United St Saviour's Charity, now taken over by The National Lottery Community Fund, provides for a full time caseworker whose role is to support and empower local people to participate in decisions around major redevelopments in Southwark.

Strategic Legal Fund: funded by The Guardian, and The Strategic Legal Fund via Maternity Action to challenge NHS charges for migrant women.

Southwark Council Housing Solutions: funding for immigration advice for rough sleepers

South London Refugee Association: funding for second tier advice

United St Saviours Charity: provides funding for Southwark Law Centre to jointly coordinate the Southwark Universal Credit Network in partnership with Citizens Advice Southwark and Community Southwark.

United St Saviours Charity and the Walcot Foundation: funding for a housing and welfare rights para legal.

Wave 3 Community Funding via Trust for London: funding for a short term immigration advice and training project with Southwark Day Centres for Asylum Seekers

Welfare Rights Project: funded by City Bridge Foundation for welfare rights advice for Lambeth tenants, facing action for rent arrears.

Westminster Foundation: funding for equipment to enable staff to work from home during the pandemic

continued...

Page 26

SOUTHWARK LAW CENTRE

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 March 2021

15. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2021.

Page 27

SOUTHWARK LAW CENTRE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2021

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Investment income
Deposit account interest
Charitable activities
Grants
Legal Aid Contract & Representation
Specialist contracts
Total incoming resources
EXPENDITURE
Charitable activities
Salaries
Social security
Pensions
Recruitment, temporary staff & training expenses
Replacement law books
Legal Aid costs
Computer accessories, software & support
Legal and professional fees
Annual report
Practising certificates
Insurance professional indemnity
Lawtel
Support costs
Finance
Other operating leases
Other
Rent and rates
Insurance
Light and heat
Carried forward		 2021
£
13,717
208
932,696
331,278
236,857
1,500,831
1,514,756
920,811
91,991
198,966
5,300
5,435
9,581
33,369
5,714
240
4,321
3,103
2,623
1,281,454
3,460
41,751
1,899
3,513
47,163		 2020
£
15,556
841
410,530
527,258
207,326
1,145,114
1,161,511
694,475
69,746
149,954
3,816
2,878
31,529
24,483
6,348
240
3,972
1,968
2,142
991,551
4,408
41,817
1,777
3,991
47,585

This page does not form part of the statutory financial statements

Page 28

SOUTHWARK LAW CENTRE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2021

Other
Brought forward
Telephone
Postage and stationery
Sundries
Repairs & maintenance
Bookkeeping
Travel & subsistence
Bank charges
Subscriptions
Cleaning
Staff costs
Fixtures and fittings
Depreciation of law library
Computer equipment
Governance costs
Auditors' remuneration
AGM costs
Total resources expended
Net income		 2021
£
47,163
10,634
19,338
4,056
4,214
16,230
3,781
700
8,038
1,840
877
302
1
-
117,174
7,200
-
7,200
1,409,288
105,468		 2020
£
47,585
6,712
17,653
3,285
2,765
4,771
3,100
602
4,856
5,719
4,136
403
1
3,287
104,875
7,300
637
7,937
1,108,771
52,740

This page does not form part of the statutory financial statements

Page 29