TOWER HAMLETS LAW CENTRE ICc>mpany No.: 017205161 (Charity No.: 2872821 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 KINGSTON BURROVVES AUDIT LTD Slatutor Auditors 308 Ewell Road Surbiton Surrey KTS 7AL
TOWER HAMLETS LAW CENTRE (Company No.: 017205181 (Charity No.: 2872821 CONTENTS Page No. Trustees, Annual Report Independent Examiner's Report 10 Statement of Financial Activities BalanGe Sheet 12 Cash Flow Statement Notes to the Financial Statements 14-23
TOWER HAMLETS LAW CENTRE TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 R8fer6nc8 and Administrative Details Trustees James Blythe Ichair to 03 April 20241 Philippa Salewicz (Chair from 03 April 20241 Mark Kalderon, Treasurer Rosalind Shaw, Secretary Manuhar Ali Derek Maurice Cox Catherine Tuitt Maria-GFazÈa Donvito Yvonne Kramo Philip Bartlett Robyn Jones Ilo 07 August 20231 Zeno Gapucci Sabrilla Jamil Ivice-chair from 03 April 20241 Stephanie Leung Steven Pallett Syed Uddin (from 23 May 20231 Debashi5 Das (from 21 Novernber 20231 Al-Karim Makhani (from 21 November 20231 Senior Managers Martin South Bo¥laji Bishi Company Règisterèd NuMr 1720518 Charity Registered Number 287282 Registered and Principal Office Unit 1. St Anne Street Off 789 Commercial Road LDndoN E14 7HG Independent Examiner Kevin Fisher BA FCA CTA Kingston Burrowes Audit Ltd 308 Ewell Road Surbilon Surrey KT6 7AL Bankers HSSC pl¢ 1-3 Bishopsgate London EC2N 3AQ
TOWER HAMLETS LAW CENTRE TRUSTEES. ANNUAL REPORT FOR THE YEAR ENOED 31 MARCH 2024 The Trustees. who are also the directors ol Ihe company for the purposes of the Companies Act, submit their annu31 report and the financial statements of Tower Hamlets Law Centre (the Law Centrel for the year ended 31 MaTch 2024. The Trustees confirm that the annual report and financial statements of the L2w Centre comply with the current statutory requirements, the requirements of the Law Centre's governing document and the provisions of the Statement of Recornmended Practice ISORPI °Accounling and Reporting by Charities" issued in 2019. The trustees have had regard to the advice of the Charities SORP Gommittee 'lmplicatlDns of COVID- 19 control measures Ènd charity financial rÈpotbng', iSSLJed in March 2020. Objectiv8s and Activities The Law Centre's main purposes are to relieve poverty and advance èducation by". developing independent Law Centre services for the people of Tower Hamlets and East London. providing access to justice and facililaling awareness of legal Tights, particularly targeting the most disadvantaged members ol the ¢ommLJnity. The main a¢tivities for the yeaT continued to focus on the followng., Delivery of specialist legal advice for those most disadvantaged in the local Community., ProvisiDn of second tier support and advice for other generalist advieè agencies in Tower Hamlets", Delivery of community education work lo raise awareness of legal rights 2mtsngsl local people., and Active development of services through p8rtnership with other advice-giving organisations. The law Genlre'swork has a positive and long-lasting impact on ou¥ clients, wellbeing, dignity and human rights. For example.. We help people fleeing persecution oveiseas to be granted asylum in this country. including an increasing number of unaccompanied minor asylum seekers,. help to reunite families separated by International borders., and help women to escape from violence at home. We fight lo prevent people trom being evicted and becoming homeless., help those already homeless to secure accommodation when it has been denied lo them", and help people living in unsafe and unhealthy homes lo make their landlords repair them. We make sure that people get the welfare benefits they are entitled to, including some of the most vulnerable members of socièty who are fearful and desperate In the face of decisions to thdraw Personal Independence Payments and Education and Support Allowance. We help people wth all kinds of problems al work. including pay and working conditions, unfair dismissal and redundancy. Achievèments and performance The main objectives set by the Irustees related to maintaining the charty's activities. and these were successfully met. In particular.. Delive ofs ecialist Le al Advice We delivered specialist casework in housing, immigrab'on. weKare benefits, and Èmployrnent law IhroLJghout the year. Our servi¢es were delivered principally from our office in St Anne Street, near Westferiy DLR. wth advice to Individuals provicted through face-to-face appointments with specialist caseworkers and solicitors. Our pro-bono evening advice clinifjs, lun in partnership with major City of Londoin law firms and drawing on 9enerous support from them and the&r staff, continued as telephone services throughout the year.
TOWER HAMLETS LAW CENTRE TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 Iconld. We were able to re-eslab115h our specialist employmenl law service from January 2024, thanks t funding from the Access to Justice Foundation's IOTLS grant. Throughotjt the year, we kept our website, vdw.thlc.co.LJk, updated with details of our 5erviGes as well as useful information about special Government measures that weie taken in respect of housing. immigralic)n, welfare benefits and employment law lo rmiligate the effects of Covid-19. During Ihe year 2023-24 we worked on 1114 cases. This number was lower th8n 2022-23, and lower than we expected, for three tTrain Teasons.. the ending of an employment advice clinic in April 2023, which did not re-start again unts"I August 2023 when new pro bono support was Identified". the ending of an immigration advice clinic in August 2023, which did not re-start again until after the end of the finanGial year", and a delay in recruiting lo a vacant Welfare Benefits Caseworker post, which reduced our capacity to take on cases. Partnershi Workin ProvisiDn of Second Tier Su ort and Communit Education Throughout the year. we were members of the rota foiT the Housing Possession Duty Solicitor Scheme al Bow County Court Istratford Housing Cenlrel, providing assistance, advice and representation al court to those facing possession proceedings. We continued to provide second tier support to other advice agencies in the borough, including advice by telephone and supervision support. Vve participated in the Tower Hamlets Community Advice Network, Advice Tower Hamlets and Tower Hamlets Connecl partnerships, which co-ordinate advice services and offer mutual support across the borough. We also continue lo work in partnership with Praxis and RAMFEL on the Street Legal East pioject, part of a pan-London projeGt that aims to assist vulnerable adults experiencing or threatened wlh hornelessness by addressing their immigration slalus so th81 they can have recourse to public funds. Fundin Eamings from leg21 aid ¢ontinued to increase from IheiT low point during and immediately following the Covid-19 pandemic, but at roughly £100.000 are still lar from adequale to Sustain meaningful activity. We were immensely grateful for the continuing support of funder5 like the Trust foi London, the Legal Education Foijndation, the London Legal Support Trust and the A.B. Charitable Trust as well as our corporate supporters, including Freshfields Bruckhaus Deringer, Norton Rose Fulbright and HFW. Financial Review The funding environment lor adviGe services has now been increasingly challenging lor well over ten years, and despite achieving gurpluses since 2017118, the law centre's Sustainability remains uncertain and, al the time of WTlting, under threat. Our prediction, last year, of increasillg and exceptional pressure on public sector funders has proved accurate, with one in four ¢ouncils in England saying that they ale likely to have to apply for emergency government funding to stave ott bankruptcy in the next two financial years, 2025126 and 2026127 ILoGal Government Association survey. October 20241. Funding lor TDwer Hamlets Connect amounted to a £30,000 p.a. cut In grant funding to the law cenlre, as reported in 2021-22. This significanlly reduced the amount of work we can do for Tower Hamlets residents with support needs. In 2023-24, our grant from the Mayor's Community Grants Fund was reduced by £25.00013bout 25.101 a year with effect from November 2023. We face a growing challenge in securing funding for the most complex problems, requiring specialist legal support. with money increasingly dire¢led towards services delivering greater numbers of relatively straightforward cases.
TOWER HAMLETS LAW CENTRE TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 Icontd... The sGope of Ial aid is far too narrow to allow access to justice for many people, and the rates of payment lor work done, whi¢h have not in¢reased since 1996, have now become grossSy inadequate. This continues to lead to many practitioners ab2ndoning pr3clice. The Govemment's Review of Civil Legal Aid IROCLAI, aimed at developing prc>posa15 to ensure the long-term sustainability of the civil legal aid supplier base, reported in 2024. It is unclear how the new Labour Government, elertèd in July 2024. will respond lo it, bul the spending priorities announced in the October 2024 budgèt suggest strongly that we should expect no change in thè near future Funding from trusts and foundations has also reduced and has become harder 10 5Écure. In October 2024, the Trust ft)r London did not renew our funding for immigraticin I domestic vitslence cases, which had continued for more than 15 years previously, citing financial pressures that had reduced its grant- making capacity from QOM to £7M annually". and a shift in focus trom case work to strategic policy change. Meanwhile, the City Bridge Foundation closed its dtsors ¢omplelely lo new funding application for a year. Al the mid-point of 2024-25, the trustees forecast a deficit that would materially prejudice the ability of the Centre to provide its current ¥ange of activities. While the financial position has subsequently ameliorated, the Iruslee5 have embatked upon urgent fundraising acb'vits'es and are exploriThJ restructuring the law centre's income mix and range of activities going forward in order to place it on a more sustainable footsng. Risk Mana ement The Trustees have assessed the major risks to which the Law Centre is exposed, and, in particular, thosè Felated lo its operations and finances. A risk register has been established and is updated at least annually Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. The Law Cenlre's Strategic Plan seeks to mitigate the risks associated with particular sources of tunding and ensure the continLJed viability of the charity. Internal control risks are minimised by the irnplementation of procedures for authorisatiorl of alb transafjtions and projects. Procedures are in place lo ensure the health and safely of staff, volunteers, clients and visitors to the centre. The maintenance of the Lex¢el Quality Standard and compliance with Solicitors, Practice Rules ensure a consistent quality of dÈlivery for all operational activilies of the charity. These pro¢edures are periodically reviewed to ensure they continue to meet the needs of the charity. Reserves Polic The Trustees have examined the charity's requirements for ieseTve5 in the light of the main risks to the organisation. The cost-of-living crisis. in partiCL¢lar, has increased both demand for our serviGes and the cost of delivering them. For the moment. however, the reserves target is unchanged, so that we can direct our income towards delivering services and bolstèrsng the salaries of our staff. Budgeted expenditure for 2024-25 is a little less than £600,000, and the target for reserves remains £200,000. The amount of unrestricted reserves held by the charity at 31 March 2024 was £273,791. The Trustees anticipate that it will be necessary to draw upon these reserves over the course of the next few years in order lo mitigate the effects of inflation, recession and the cosl-Df-Iiving crisis in the UK. These will increagè the cost of running the law centre at Ihe same lime as increasing demand for our seNices At the same time. the historical underfunding of legal aid is likely to continue, and public sector lunders, in particular. will be plaGed under increasing budgetsry pressure.
TOWER HAMLETS LAW CENTRE TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 IGontd._ Plans for the Future The Trustees have agreed the Law Cenlie's Strategic Plan 2022-2025. In order lo Impiove our foc9 on the things we most want to achievè, they have selected just four priorities for Strategic development. Our three IrLJSlees' committees (Finance, Personnel and Development) will each lead on one of the priorities. ensuring that progress is regu12rly revièwed and any blockages managed. The fourth priorrty, which concerns community engagement, will be led by the full Board of TrLSStees, reflecting tts central importance in our plans. The four priorities are.. Priority One.. A High-Perfoiming Organisation Lead Committee. Finance We will drive high performance at all levels of the organisation. Priority Two." A Well-Funded Organisation Lead Committee. Development We will continue to grow and diversify our sources of income. Priority Three". A Modern, Inclusive Employw of Choice Lead Commiltee.. Personnel We will be an organisatiDn that people want to work for, enjoy working for. stay and progress in Priority Four". A Fully Engaged Voice for the East End Community Lead." Full Board of Trustees We will understand our community better, and build links so that our work reflects the needs and priorities of the people we setve. The ¢urrenl financial year is the 18sl Covered by the Strategic Plan 2022-25, and work will start soon on creating a new plan lo take us into the future. Inevitsbly. much of the focus of the plan will be on the finan¢&31 sustainability of the organisalion. Structure, Governance and Managèm8nt Governin Do¢um nt The Law Genlre is registered as a charitable company limited by guarantee and was set up by a Memorandum of A5socialitrn on 14 March 1983. The Memor8ndLJm of Association established the objects and powers ol the charitable COTnpany and it is governed under its Articles of Association. In the event of the company being wound up, tnembers are required to contribute an amount not exceeding £1. The Law Cenlre's purposes, as sel out In ils governing documenl, are.. The relief of poverty amongst persons iesident or working in Greater London and in particular the London boro)ugh of Tower Hamlets I'the benefit 2re8'1 by providing such persons with legal services which they could not otheiSe obtain or which it would not be reasonably pradicable or appropriate to obtain elsewhere., The advzncement of education amongst persons resident or working in the benefit area.. The advancement of su¢h other ¢haritable purposes as are beneficial to the community for persons resident or working in the benefit area. In December 2016, revised Articles of Association were adDPted, bul they made no substantive changes to the Law Cenlre's purposes, which were simply moved from the Memorandum to the Articles.
TOIJVER HAMLETS LAW CENTRE TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 Icontd. Recruitment and A oinlment of Truslees The directors tsf the company are also charity trustees for the purposes of charity law and under the company's Articles are known as Trustees. The management of the Law Centre Is the Tesponsibility ot the Trustees. who are appointed and c(Fopted under Ihe terms ol the Articles ol Association. Under the requirements of the Memorandum and Articles of Association one third lor the number nearest one thirdl of the Trustees must retire al each Annual General Meebng, at which time they may be reappointed if eligible. The Tru51ee5 may co-opt any individual, provided the total number of Trustees does not exceed the number allowed by the Articles. Co-opted Trustees hold office onEy until the next Annual General Meeting, at which time they may be reappointed Il eligible. lthen more Trustees are needed, the Trustees advertise vacancies widely in order to draw in appropriately qualified individuals lo support the devttlopmenl of the Law Centre. Appropriate qualificatluns may include specific skills. experiencè and contscts as well as knowledge of the local community. Mindful of the advice in the Charity Governance Code, the Trustees intend lo introduce a nine-yeai term limit on trusteeship They are also conscious, howèver, that to Introduce rt immediately would result in the enforced relirement of many highly experienced trustees, m051 of whom provide the Board with invaluable knowledge and understanding of the local community. The Trustees have, therefore, embarked on a review of Board rnembeiship and suGGession planning which is iritended to enable them to introduce the temi limit next year. Tiustee Induction and Trainin New Trustees are given the opportunity to visit the Law Centre during a working day and meèt gtaff members and volunteers, as well as existing Trustees. All new Trustees receive an induction pack that inclLJdes general information about the Law Cenlie as well as renI copies of minutes, management accounts and senitsr management reports and a Gopy of the Memorandum and Articles of Association. Trustees are invited to attend an individual meeting with the Chtef Executive to lamiliarise themselves with the charity and the context within which il Dperales. This meeting covers.. The roles and responsibilities of Trustèes An overview of the goveming doeumenl and key policies including equal opportunities and financial management The cuirent Iinancial position of the organisation, including an introduction to key funders and their requirements An overview of the Business Plan, focusing on futuie plans and objectives An overview of the current Risk Assessment Related Parties At a national level, provision and procuiement of quality legal advice is ensu¥ed principally through the Legal Aid Agency and the Law Society. The charity engages with thesè bodies through the mainlen3nce of the Lexcel Quality Standard and through compliance with Solicitor5' Practice Rules The charity also maintains membèrship ol the L3w Genti&s Network, which provides 1mportant links to wider policy issue5 and 5UPPOrt for the organisalion in management practice and strategic developmenl. Locally, the charity is represented on the Tower Hamlets Community Advi¢e Network, a group of advice agencies working in the borough.
TOWER HAMLETS LAW CENTRE TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 lconld.. Public Benefit In planning and reviewing the following aclivilies. the Trustees have given careful Qonsideration to the Charity Commission guidance on public benelil. We are sab'sfied that in the management ol resources to deliver legal advice seiCe5 we can demonstrate that our work bènefits not c>nly r>ur clients but also to the wider community. anisalional Structure and Decision Makin The Law Centre's membeis ele¢t its Trustees, who are respc>nsible lor the strategic direction of the law centre and oversight of its work and finances. The Trustees delegate day-lo-day responsibility for ihe provision ol services to the Chief Executive and the Seniot Soli¢itor. The Chief Executive Is responsible lor ensuring the secure finanGial management and administralion of the charity and the Senior Solicitor is responsible for ensuring the quality of the seivices delivered. Effective management and supevvision of the staff team is the responsibility of both the Chief Executive and the Senior Solicitor. Remunèration of Ke Mana ement Personnel The rernuneratiL¥n of the charity's key management personnel, the Chief Executive and the SeniDr Solicitor. is set by the Board of Trustees, taking into account the charity's financial position and the amount paid for comparable roles In eompar2ble organisations. Volunteers The Law Centre is grateful for 5UPPOrt of its volunteers. In particular, we have beeft indebted to the tr2inee solicitor5 from Freshfields Bruckhaus Deringer, Norton Rose Fulbright, and HFW, who offer pro bono advice on housing, employment, welfare benefrts and immigration. Responsibilities of the Trustees The Trustee5 Iwho are also directors of the charitable company for the purposes of company lawl are responsible for preparing the Trustees, Annual Rept)rt and the financial statements in accordance with applicable law and United Kingdom A¢UntiNg Standards (Uniled Kingdom Geneialty Accepted Accounting Practicel. Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve thè financial statements unless they are satisfied that they gwe 3 true and lair view of the slate of affairs of the charitable Company and of the incoming resources and application of resc>urces, induding the income and expenditure. of the charitable company for that period. In preparing these financial statemen15, the directors are required lo.. select suitable accounting policies and then apply them consistently.. observe the methods and principles in the Charities SORP 2019 IFRS 1021.. make judgments and accounting estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards have beeri followed. subject to any material departures disGlosed and explained in the financial statements.. prepare the financial slalemenls on the going concern basis unless it is inappropriate to presume that the charitable company wi51 continue in business.
TOWER HAiVILETS LAW CENTRE TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 hAARCH 2024 Iconld... The Trustees are responsible for keeping adequate acetsunting iécords that disclose with reasonable a¢¢ura¢y at any time the financial position of Ihe charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the a55els of the Gharilable company and hence *or taking reasonable steps fc>r the prevention and detection of traud and Dther irregularities. Ind&p&ndent Examinér Myrus Smith Chartered AccoLJlltanls were appc)inled 2$ our independent exarniners at the Annual General Meeting in November 2D23. During the course of the year, Myrus Smith was acquired by fjngston Burrowes Audit Ltd, and has taken over the audit services previously provided. They have Èxpressed their wllingness to accept appointment and a resolution to appoint them for 2024125 wtll be proposed at the forthcoming Annual General Meeting. Small Company Exemptions This report is prepared in accordance with the spe¢ial piovisions of Part 15 of the Companies Act 2006 relating lo small companies. This rewrt was approved by the Trustees on and signed on its behalf, by.. Mark Kalderon Treasurer
Independent Examiner's Rèport to the Trustees of= TOWER HAMLETS LAW CENTRE I report to the Gharity trustees on my examin2tion ol the accounts of the company lor the year ended 31 March 2024 whith are set out pages 11 to 23. Responsibilities and basis of report As the charity trustees of the company land also its dire¢lors for the purposes of company lawl you awe responsible for the preparation of the accounts In accordance with the requireinenls Of the Companies Act 20061'the 2006 Act'l. Having satisfied Myse that the accounts of the company are not required to be 8uditÈd under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of y(>ur company's accounts 38 carried out under seGtion 145 of ihe Charities Act 2011 1.the 2011 Acl'l. In carrying out my examinatiun I have followed the Directions given by the Charity Commission under section 14515llbl ol the 2011 A¢t. Independent examinèr's statement Since the company's gross income exceeded £250,000 your examiner musl be a member of a body listed in seCtn 145 of the 2011 Act. I confirm that l am qualified lo undertake the examination because l am a member of ICAEVV, whiGh is one ol the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection ¥Mth the examination giving me catjse lo believe that in any material respect.. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act., or the accounts do not accord with those records.. or the awounls do not comply with the accounting requiremen15 of sediun 396 of the 2008 Act other than any requirement that the accounts give a 'lrue and fair view, which is not a matter considered as part of an independent examination." or the acoounts have not been prepared in accordance with the methods and principles ol the Stslemenl of Recommended Practice for accounting and reporting by charities applicable t charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102}. I have no concerns and have cOe across no other matters in connection with the examination tD which attention should be diawn in this report in order to enable a proper understanding ol the accounts to be reached. Kevin Fisher BA FCA CTA Isenior Ststutory Auditor) For and on behalf of Kingston Burrowes Audit Ltd Statutory Auditors 308 Ewell Road SuTbiton Surrey KT6 7AL lJ-12 2024 10
TOWER HAMLETS LAW CENTRE IA company limited by guaranteel STATEMENT OF FINANCIAL ACTIVITIES Ilncorporating Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2024 Unrestri¢led Reslri¢ted Funds Funds Total 2024 Total 2023 Notes Income from: Donations Charitable activities Inveslmethts 69,586 198,104 3,515 200,350 141,996 269.936 340,100 3,515 322.228 301.939 810 Total 271,205 342,346 613,551 624.977 Expènditure on: Charitable activities 273,303 342,346 615.649 623,225 Total 273,3C13 342,346 615,649 623,225 Net incomellexpenditurel 12,0981 12,0981 1,752 Transfer between funds Net movement in funds 12,0981 12,098) 1,752 Reconciliation of funds Total funds brought forward 275.889 275,889 274,137 Total funds Carried forward 15 £273,791 £Nil £273,791 £275,S89 All income and expenditure derive from continuing activities. The Statement of Financial Activities includes all recognised gains and losses. The notes form part of the financial ststements
TOWER HAMLETS LAW CENTRE IA company limited by guarantee) BALANCE SHEET AS AT 31 hnARCH 2024 2024 2023 Notes FIXED ASSETS Tangible fixed assets 2,987 4,01S CURRENT ASSETS Debtors Cash al bank and in hand 222.589 122,954 109,246 227.691 345,543 336,937 CREDITORS.. Amounts falling due within one year 74.739 65.064 NET CURRENT ASSETS 270,804 271,873 TOTAL ASSETS LESS CURRENT LIABILITIES 273,791 275,889 CREDSTORS- Amounts falling due after more than one year 14 NET ASSETS 16 £273.791 £275,889 FUNDS Restricted Unrestricted- Designated Unrestricted General 273,791 275,889 £273,791 £275,889 The charitablè eompany is entitled IiTr exefllption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024. The members have not required the charitable company to obtain an audit of ils Iinancial statements for the year ended 31 March 2024 In accordance with Section 476 of the Companies Act 2006. The directors acknowledge their responsibilities for.. al ensuring that the cL>mpany keeps accounting records which comply with Sections 386 and 387 01 the Companies Act 2006 and bl preparing financial statements which give a true and fair view of the 51zle of affairs of the charitable COmP3ny as at the end of each financial year and of its surplus or deficit for each financial year in accordance with tFie requ1mentS ol Sections 394 and 395 and which otheiSe comply with the requirements of the Companies Act 2006 relating lo financial statements, so far as applicable to the charitable company. These financial statements have been prepared in accordance with the special provisions of part 15 of e Companies Act 2006 relating lo small companies. The financi31 statements were approved by the Board of Trustees on hall by-. a61,,1 2024 and signed on alewi Trustee and Ch The noles form part of the financial statements.
TOWER HAMLETS LAW CENTRE IA company limited by guarantee) CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Cash flows from operating activities: Net movement in funds Adjustments for.. Interest receivable Depreciation charges (note 11) Decreasellincreasel in debtors (Decreaselfincrease in creditors 12,0981 1,752 13,5151 4,562 1113,3431 9,675 18101 4,471 147,3201 12.2181 Net cash provided by operating activities 1104,7191 144,1251 Cash flows from inve5tlflg aCtivitigs= nterest received Inole 41 Purchase of tangible fixed assets Disposal of tangiblè fixèd assèts 3,515 13.5331 810 16751 Net cash used in investing activities 1181 135 Change in cash and cash equivalents in the year 1104,7371 143,9901 Cash and Cash equivalents brought fOard 227,691 271,681 Cash and cash èquivalents carrÈgd forward £122,954 £227.691 Analysis of cash and cash equivalents 2024 2023 Cash at bank and in hand £122,954 f227.691 The notes form part of the financial statements.
TOWER HAMLETS LAW CENTRE IA company limited by guarante81 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 MARCH 2024 ACCOUNTING POLICIES Basis of accounting The charity const"ttules a public benefit entty as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their a¢¢ounts in accordance wrth the Financial Reporting Standard applicable in the UK 2nd Republic of ITeland IFRS 1021 issued in October 2019, Charities SORP IFRS 1021. the Financial Reporting Standard applicable in Ihe United Kingdom and Republic of Ireland IFRS 1021, the Charities AGI 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. The financial Statements are prepared on a going concern basis and under tt)e historical cost convention. The significant accounting policies applied in the prepar2tion ol these financial Statements are sel out below. These policies have been consistently applied to all years presented unless otherwise stsled. Income reco9nltion Items of income ale recognised in the finanGial slalements when all of the following criteria are met". The charity has entitlement to the funds., any perfurmance condrtions have been met or are fully within the control of the Gharity", there is sufficient certainty that receipt of the income is ¢onsidered probable". and the amount can be measured reliably. Expenditure recognltlon Expenditure is recognised once theiè is a legal or constructive obligation to make payment lo a third party, it is probable that settlement will be required and the amount can be measured reliably. Expenditure on ¢haritsble activities comprises the costs associated w¢lh delivering specialist legal advice. Expenditure includes those costs of a direct nature which ¢an be allocated lo 8 specific activity. It also includes indirect Gosls. including governance costs that do not relate lo a specilic aclivity bul are necesg3ry to support Ihose aclivilies. Support costs are apportioned to each activity on the basis of staff time. Fund accounting Unrestricted general funds are freely available for use in furtherance of the objects of the charity and which have not been designated for particular purposes. Designated funds are unrestricted lunds set aside by the trustees for particular purposes. Restricted funds are ftjnds which can only be used in accordance with specific restriction5 imposed by thè dc>ntsr tsr which have been raised for a particular puipose. Tangible fixed assets and dèpreciation Tangible assets costing more than £500 are capilalised Depiecialion is provided so as lo write off the cost of each asset over its estimated useful life at the following annual rates". Fixluies and fittings Computer equipment 20.10 Straight line 25°/o Straight line 14
TOWER HAMLETS LAW CENTRE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontd... ACCOUNTING POLICIES Icont'dl Leases Oper3ting lease rentals are charged lo the Statement of Fin3n¢ial AotivÈbes on a slraighl line basi5 over the period of the lease. Pensions The charity operales a defined contribution pension scheme. Contributions payable undef the scheme are charged the Statement of Financial Activities in the year to which they ielate. Thè charity also has ongoing historic obligations under a mulb"_employer defined benefit pension scheme. It Is not possible for the charity to obtain sufficient informaln lo enable Tt lo account for the scheme as a defined benefi't scheme and it therefore accounts for the scheme as a defined contribution scheme. Debtors and creditors recÈivablèlpayabl• within ono yèar Debtors and creditors with no slated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairments are cnISed in expenditure. DONA TIONS Unrestricted Restricted funds funds Total 2024 Total 2023 Grants Donations 200,350 200,350 69,586 207,637 114,591 69,586 £69.586 £200.350 £269,936 £322.228 Of the £322,228 recognised in 2023, £154,263 was unrestricted and £167,965 was restricted. INCOME FROM CHARITABLE ACTIVITIES Unrestricted Reslricted ftsnds funds Total 2024 Total 2023 Grants and contracts: Legal Aid Agency London Borough of Towel HamletslEast End Citizens Advice Bureau Housing Possession Court Duty Scheme Trust for London Real DPO LimitedlAge UK East London Law Centres Network Fees fTom private clients 82,182 82,182 61,862 87.946 87,946 16,488 54,050 32,250 97.335 17.568 47,000 32,250 250 45,674 16.488 54.050 32,250 67,184 67.184 £198,104 £141,996 £340,10Q £301,939 Of the £301,939 recognised in 2023, £157,604 was unrestricted fijnds and £144.335 was restricted funds.
TOWER HAMLETS LAW CENTRE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 lcontd... INVESTMENT INCOPItE Unrestricted Restricted funds funds Total 2024 Total 2023 8ank interest £3,515 £Nil £3,515 £810 All of the £810 recognised in 2023 was unrestricted fund5. EXPENDITURE ON CHARITABLE ACTIVITIES Direcl costs Support osts Total 2024 Total 2023 Housing Employment Immigration Welfare 86.933 9,432 164.195 71.037 75,747 9,468 151,495 47,342 1 $2.680 18.900 315,690 118.379 216,256 15,793 281.117 110.059 £331,597 £284,052 £615,649 £623,225 Of the £623,225 expenditure recognised in 2023. £310,925 was ¢harged to unrestricted fvnds and £312,300 was charged lo restricted funds. ANALYSIS OF DIRECT COSTS Totsl 2024 Total 2023 Staff costs Other direct costs 323.554 8,043 343,227 15,023 £331,597 £358,250 ANALYSIS OF SUPPORT COSTS Total 2024 Total 2023 Staff and freelanGe Gosts Office costs Premises costs Governance costs (see Note 8) 207,913 46.326 26,288 3,525 183.230 46,380 31.812 3.553 £284,052 £264,975 GOVERNANCE COSTS 2024 2023 Independent examiner's fees SRA audit Oiher lees Examination 2,285 1,240 2,300 1.240 £3,525 £3,553 16
TOWER HAMLETS LAW CENTRE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARGH 2024 Iconld... NET INCOMEIEXPENDITURE FOR THE YEAR 2024 2023 The nel incomelexpendilure for the year is staled after charging.. Operating lease rentals Depreciation of langible fixed assets Independent Examiner's remunerab'on Pension contributions (defined contribution schemes) £21,000 £4,562 £2,285 £10,843 £18,744 £4,471 £2,300 £11,733 During the year Trustees received no remunefation12023". £Nill or reimbursed expenses12C123.' £NIll- 10. STAFF COSTS AND NUMBERS 2024 2023 Staff costs were as follows.. Wages and salaries Social security costs Pension costs Pension defioil contributions 436,679 35,914 10,843 433,679 39,174 11,733 £483,436 £484,586 The average number of employees during the year was 1512023". 151. No employee received total benefits (excluding employer pension costsl amounting to more than £60,000 in either year. Total employee benefits received by key rnanagement amounted to £29.944 12023." £29,615). Undei FRS 102, employee benefit5 includes gross salary, employer's NIC. employerfs pension contributions and benefits in kind. 11. FIXED ASSETS Office & Computer Equipment Fixtures & Fittings Total Cost Cost at 1 April 2023 Additions Disposals 23,213 3,533 16,5CEI 1,510 24.723 3,533 16,506) Al 31 March 2024 20,240 1,510 21,750 Depreciation Al 1 April 2023 Charge for the year Eliminated on disposal 19,197 4,562 16.5061 1,510 20,707 4,562 16.5061 At 31 March 2024 17,253 1,510 18,763 Net Book Value Al 31 Maich 2024 £2.987 £Nil £2,987 At 31 March 2023 £7,812 £Nil £7,812 17
TOWER HAMLETS LAW CENTRE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontd... 12. DEBTORS 2024 2023 Trade debtors Prepayments and accrued income Other debtors 110.384 95,763 16,442 37,492 68,154 3,600 £222,589 £109,246 13. CREDITORS- Arnounts falling due within one year 2024 2023 Tradè creditors Accruals and deferred income (see below) Taxatson and social security 41,143 1 6.050 17,546 35,683 12,333 17,048 £74,739 £65.064 DEFERRED INCOME Balance Brought Forward Balance Carried Forward Additions in Year Released to Income Grants £8,333 £2,862 £8,333 £2,862 Deferred income refle¢ls gr3nt income received advance for the followng financtal year, to be expended in accordance with specified or implied timefrarnes and agreed budgets. 14. CREDITORS- Amounts falling due after more than one year 2024 2023 Pension deficit £Nil £NIl 18
TOWER HAMLETS LAW CENTRE IA company limitèd by guarantee) NOTES TO THE FINANGIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontd... 15. MOVEMENT IN FUNDS Transfers Between Funds Brought Foard Carried Forward 2024 Income Expenditure Restrlcted funds Specialist Welfare Advice Partnership Immigration Advice Service Capacity Building Justice First Fellowship SGheme EU Settlement Scheme Street Legal East Solicitor Training Access to Justice 87,946 187,9461 54,050 8,333 154,0501 18,3331 52,288 994 47,500 22,890 68,365 152,2681 199411 147,5001 122,8901 168,3651 342,346 1342,3461 Unrestricted funds General 275,889 271.205 1273,3031 273.791 275,889 271,205 1273,3031 273,791 Totsl Funds £275,889 £613,551 £1615,649} £Nil £273,791 19
TOWER HAMLETS LAW CENTRE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontd... 15. MOVEMENT IN FUNDS Icontd.. SpeGialist Welfare Advice Partnershrp The Specialist Welfare Advice Partnership fund represents Mainstream Giant funding from Tower Hamlets CoLJncil for the provision of specialigt welfare advice services. Immigration Advice Service Funding received towards piovision of legal advice and support to women across East London suffering domestic violence, complicated by immigration and asylum issues. Capaclty Building The Law Centre has rèceived funding towards the Gosts of dèvelDping its fundraising capacity and also towards salaries and overheads. Justice First Fellowship Scheme This is funded by the Legal Aid Foundation for the training of Fellow solicitors. EU Sèttlement Scheme This is funded by the Home Office to support vulnerable EU citizens with completing their EUSS applications. Crisis Hub Agreement Support for Crisis's 'Skylighl Centres" and other frontline organisations. London Community Response This was money for and spent on computer equipment. Street Legal East This is part of a pan London project that aims lo assist vulnerable adults experiencing or threatened with homelessness by addressing their immigration status so that Ihey can have recourse to public funds. Billing Coordinator The Billing Coordinator's principal role was lo help identify improvements in our financial practices and procedures and to help deal with historical legal aid and legal help billing. Designated fund- Premises The Trustees have designated £50,000 towards the potential costs assoGialed wth moving lo new premises including payment of 2 lease premium, fil-oul costs, removal costs (including Specialist IT c05ts1 and increased rental costs. This is no longer needed and hence transfer was made lo General Funds. Solicitor Trnining This is funded by Law Centres Neork, so an existinglnew member ol staff could train as a Soli¢ilor. Access to Justice This fund is lor supporting organisations working to sustain and improve acces5 to early social welfare and family legal support and advice, to enable users lo resolve these problems as eai1y as possible and avoid the need for court or tribunal pioceedings where possible. 20
TOWER HAMLETS LAW CENTRE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontd... 15. MOVEMENT IN FUNDS Iconld. Comparative inlomiation for the net movement in funds in the previous year is as follows". Transfers Between Funds Brought Forward Cairied FonNard 2023 Income Expenditure Restricted funds Specialist V4lelfare Advice Partnership Immigration Advice Service Capacity Building JiJsli¢e First Fellowship Scheme EU Settlement Scheme Street Legal East Billing Coordinator 97,335 197,3351 47,000 56,667 147,0001 156,6671 41,426 30,212 37,500 2,160 141,42SI 130,2121 137,5001 12,1601 312,300 1312.3001 Unrestricted funds General Designated - Premises 224,137 50,000 312,677 1310,925) 50,00(1 150,0001 275,889 274,137 312,677 1310,9251 275,889 Total Funds £274,137 £624,977 £1623,2251 £Nil £275,889 16. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Funds Restricted Funds Total Funds 2024 Fixed Assets Current assets Current 112bilities Non-currenl liabilities 2.987 345,543 174.7391 2.987 345,543 174,7391 As at 31 March 2024 £273,791 £Nil £273,791 21
TOWER HAMLETS LAW CENTRE IA company limited by guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontd... 16. ANALYSIS OF NET ASSETS BETWEEN FUNDS Icontd... Comparative inftsrmalion for the analysis of nel assets between funds at the end of the previous year is as follows.. Unrestricted Funds Restncted Funds Totsl Funds 2023 Fixed Assets CurrÈnt assets Current liabilities Non-currenl liabilities 4.016 336,937 165.0641 4,016 336,937 165.0641 As at 31 March 2023 £275,889 £Nil £275,889 17. COMPANY STATUS Tower Hamlets Law Centre is a private company limited by guarantee with no shaFe capitsl and IS registered in England and Wales. Each member 15 liable to contribute a sum not exceeding £1 in the event of the compzny being wound up. The gistered office of the company Is given in Ihe Reference and Administrative Details of the Trustees, Annual Report. 18. TAXATION A5 a iegistered charity, Tower Hamlets Law Centre is exempt from taxation under Part 11 of the Corporation Tax Act 2010 and Secb'on 256 of the Taxation of Chargeable Gains Act 1992. 19. OPERATING LEASE COMMITMENTS Total future minimum lease payments under non-cancell8ble operating leases are as follows". 2024 2023 Due within one year Due within one to five years 11,300 10.900 9.050 1,200 £22,200 £10.250 20. CONTINGENT LIABILITIES The Penston Trust- The Growth Plan The charity participates in the above multi-employer pension scheme which provides benefits to some 1,300 non-associated participating employers. The scheme is a defined benefit scheme In the UK. It is not Possible for the charity to obtain sufficient information to enable it to account foi the scheme as a defined benefit scheme. Therefore it acctsunis for the Scheme as 8 defined contribution schemè. The scheme 15 subject lo the funding legislatitsn outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with do¢uments issued by the Pensions Regulator and Techni¢al Actuarial Standards issued by the Financial Rewrting Council. sel out the Irarmework lor funding defined benefit oGGupalional pension schemes in the UK. 22
TOWER HAMLETS LAW CENTRE IA company limited by guarantèè) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Icontd... 20. CONTINGENT LIABILITIESlcontd... The scheme is classified as a 'last-man standing arrangement, Therefore the charity Is potentially liabl2 for other participating employers, obligations if those employers are unable to meet their share of the scheme delicrt following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. A full actuarial valu8lion for the scheme was carried out al 30 September 2017. This actuarial valuation showed assets of £795m, liabilities of £926m and a deficit of £131 m. Tts eliminate this funding shortfall, the trustees and the participating Èmployers havè agreed that additional contributions will be paid lo the Scheme. The recovery ptan contributions are allocated to each parbcipèting employer In line with Iheii estimated share of the Series 1 and Series 2 scheme The charity's share of the recovery plan contributions amounis to £5,488 per annum, increasing by 30A each year until 31 January 2025. The lotsl amount due under the original iecovery plan amounting to £40, 179 was recognised as a liability in the balan¢e sheet in the year ended 31 March 2018. The liability has not been discounted to net present valuè t)n thè grtsunds of immalerialrty. As a result of changes lo the recovery plan, effective from 1 April 2019, an additional liability of £6,484 was recognised in the 31 March 2019 accounts. The estimated debt on withdrawal from the scheme is £83.208 (effective date 30 September 20201 and it is antisipated that thi5 will ieduff over lime as a result of the recovery plan contributions and investment relums. 21. CONTINGENT ASSETS The charity has been awarded some multi-year grants with specified iy implié(t timeframes which pieclude recognition of the full amount. The followng contingent assets are therefore disclosed as at 31 March 2024.. Legal Education Fellowship Age UK East London Law Centres Network Access to Justice Foundation Street Legal £105,564 £17,702 £64,898 £140.864 £15,000 (Justice First Fellowship S¢hemel (Advice and General Advocacy SeNicel (Train and Qualify Solicitor) Iweffaie Advice) (Street Legal Eastl 22. CLIENT MONIES In addition to the assets and liabilities included in these financial slalemenls thtt ¢harily also holds client money amounting to £154,853 as at 31 March 20241£72,013 as at 31 March 20231 in a separate client bank a¢¢ounl. 23