Registered number: 01792921 Charity number: 515060 LOCAL SOLUTIONS (COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 +• Local A:• Solutions Empowering People. Supportlng Communltles. LOCAL SOLUTIONS CONTENTS For the year ended 31 March 2025 PAGE Legal and Administrative Details Message from the Chair and Chief Executive Report of the Trustees incorporating the Strategic Report 4-17 Report of the Independent Auditor 18-21 Statement of Financial Activities incorporating the Income and Expenditure Account 22 Balance Sheet 23 Cash Flow Statement 24 Notes to the Financial Ststements 25-41 LOCAL SOLUTIONS LEGAL AND ADMINISTRATIVE DETAILS For the year ended 31 March 2025 Local Solutions is a Company Limited by Guarantee and a Registered Charity governed by its Memorandum and Articles of Association. The Directors of the Charity are its Trustees for the purposes of Charity Law and throughout this report are Gollectively referred to as the Trustees. The Company is limited by guarantee and permission has been obtained from the Registrar of Companies to dispense with the use of Ihe word "Limited" Company registration number: 01792921 Charty registration number- 515060 Registered office- Suile A, 1st Floor Building 2000 Vortex Court Enterprise Way Wavertree Liverpool L13 1FB Trustees: Hazel J Snell Helen R Heap Rev Dr Crispin Palling Chair Chair, Finance, Audit & Risk Committee Chair, People & Culture Committee (to 16 May 2024) Chair. People & Culture Committee (16 May 2024 to 10 February 2025} Resigned 27 February 2025 Chair. People & Culture Committee (from 10 February 2025) Melanie Harvey Dr Bruce W Taylor Jillian M Jones Serena M Kennedy Jonathan H Mounsey FCA Suzanne Mazzone Karl Clawley Elliott Morrison Ellie J Acton lan Hall stephen Okoro Resigned 24 September 2024 Resigned 4 November 2024 Resigned 16 May 2024 Appointed 27 February 2025 Appointed 2 April 2025 Chief Exe¢utive'. Robert Thomas Harrison Secretary: Karen Paton Bankers: National Westminster Bank PIC Commercial Banking, Union Street Chester CH1 1UA Page 1 LOCAL SOLUTIONS LEGAL AND ADMINISTRATIVE DETAILS For the year ended 31 March 2025 Solicitors: Brabners LLP Horton House Exchange Flags Liverpool L2 3YL Aaron & Partners 5-7 Grosvenor Court Foregate Street Chester CH1 1HG Auditor: DSG Audit Castle Chambers 43 Castle Street Liverpool L2 9TL Page 2 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS. REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 A message from our Chair and Chief Executive This year, Local Solutions has continued to respond with purpose, compassion, and determination. Against a backdrop of sustained pressures on public services, rising costs of living, and increasing social need, we have deepened our commilment to supporting individuals and empowering communities across the Liverpool City Region and North Wales. In 2024, we marked the beginning of our 50th anniversary year. This milestone offered not only a moment to reflect on our past but also a springboard for bold new actions. Throughout the year, we ￿lebrated our legacy, grew our visibility. and expanded our efforts to innovate, influence, and empower. Our financial position remains resilient, with a surplus of £200,372 on income of £14.6m, enabling strategic reinvestment. We designaled £1.25m for workforce resilience, innovation, and, most significantly, the development of new community premises - a future investment ambition in sustainable infrastructure that reflects our mission. We directly supported 37.723 people, delivering over 400,000 hours of care, engaging 14,000+ in our social impact activities at Liverpool Watersports Centre. and helping over 500 young people with housing. mentoring and life skills. Our Independent Domestic Violence Advocacy service reached over 1,400 individuals. while our Carers Centre delivered health and wellbeing sessions to more than 1,300 unpaid Garers. One of the standout developments has been the launch and growth of our Community Empowerment Fund. This new model enables us to grant grassroots changemakers the tools, funding and plattorm to lead locally-rooled solutions. From a radio station connecting people with dementia to trauma support groups and food-growing projects, over 50 grants have been awarded, enabling community ownership and pride. The sale of our Scotland Road site in late 2023 allowed us to Gontinue service delivery as tenants while progressing redevelopment plans with our partners. Planning pennission has since been secured, and our focus is now on identifying a community facing HQ and improved accommodation that meet the needs of tomorrow. Subsequent to the year-end, the charity entered into an agreement to purchase a property to support future service delivery. Throughout the year, we've worked relentlessly across our three big missions.. to Transfomi Social Care. End Homelessness and Empower Communities. Whether through our Happy Place wellbeing hubs for isolated older people, mentoring programmes for young people at risk of exploitation, or the expansion of our domestic abuse support, our work has b8en rooted in dignity, belonging and opportunity. Our impactwould not be possible without the dedication of our stsff and volunteers, the trustof our partners and commissioners, and the strength of our local communities. To everyone who has supported, challenged, collaborated or contributed this year: thank you. Hazel and Tom Hazel Snell Chair Date.. 41h September 2025 Tom Harrison CEO Date.. 4th September 2025 Email: Website.. info localsolutions.o www.localsolutions.or Page 3 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 The trustees present their annual report and financial statements for the year ended 31 March 2025. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply wtth Ihe chanty's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charilies.. Ststement of Recommended Practice applicable lo charities preparing Iheir accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)" OBJECTIVES Local Solutions is a charity founded in 1974 that delivers services lo people in England and Wales. primarily within the Liverpool City Region and North Wales with a focus on people who face disadvantage, exclusion. and vulnerability. Our work is guided by our Vision of a society where people can live in safety and dignity and lead fulfilled lives. Our Mission is to empower people and 5upporl communities. We will deliver our mission by truly understanding the needs and challenges facing individuals and communities and working together to design and deliver approaches that create sustained, positive impact. The Board promotes the Charity's values.. compassionate, reliable, pioneering, and knowledgeable, and ensures that these are reflected in all its work. The objects of the organisalion are set out in the Memorandum and Articles of Association. The main areas of aclwity are to benefit the community through the promotion of charitable purposes in the fields of social welfare, education, and recreation. The Charity Governance Code was published to help charities and Iheir trustees develop high standards of governance. The code sets out seven principles and recommended practice, which Local Solutions addresses and complies with, as explained below. ORGANISATIONAL PURPOSE Our purpose is to empower people and support communities through transformalive services and approaches. Our work is in three principal areas.. Social Care Care and personal support services for people who are older, are affected by physical and mental health issues, have mobility problems, or disabilities. This includes cornmissioned setvices for domiciliary care. specialised care, extra care, and care commissioned privately by individuals and families. Support and Accommodation Support and accommodation for young people and families who are homeless, vulnerable, marginalised, or at risk of exploitation. Spe¢rfi¢ services include provision of housing, support, mentoring, skills, advice, and independence. Communltles Services for people who are affected by exclusion focusing on access to Gommunity SUPPOrt, advice, recreation, and skills. Specific support services for those not in educalion, employment, or training, those affected by domestic abuse or bullying, people who have mobility issues and those who provide unpaid care for others. Page 4 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 LEADERSHIP, BOARD EFFECTIVENESS, OPENESS AND ACCOUNTABILITY Local Solutions is governed by ils Board of Trustees, which is a body of volunteers with careers in a wide variely of fields. The Trustees who served on Ihe Board throughout the year are listed on page 1 . The Charity's Leadership Team comprises the Chief Executive, Strategic Leads for Social Care and for Support & Accommodation, and Departmenlal Heads for key areas of the Charity. The Chief Executive is appointed by the Trustees to manage the day-to-day operations of the Charity. The remuneration of the Chief Executive and Leadership Team is set by the Truslees recognising: individual and team performance in the context of a challenging climate the importance of recruitment and retaining the 'right' people (both in terms of experience and attitude) the level of knowledge, skills and experience required, and the responsibilities and accountabilities associated with the position. The Chief Executive selects an appropriate Leadership Team to manage the operations and activities of the Charity. This includes Strategic Leads for Social Care and Support & Accommodation, and Heads of Communities, Finance. People & Culture. Safety & Support. and Business Development & Impact. A system of performance management, including objectives. key performance indicators. development plans, management reporting and appraisal is in place to monitor the effectiveness and management of individuals and teams. A Trustee committee structure is established comprising- Finance, Audit & Risk and People & Culture- each Committee includes suitably skilled Trustees plus an appropriate member(s) of the Leadership Team. Other Task and Finish Groups are set up as considered appropriate. The Trustees meet as a Board four times a year as a minimum. In addition, each Trustee may serve on one or more of the Committees and Task and Finish Groups. Each of thè Committees has outlined a Glearly defined work programme for the coming year. The election of Trustees is determined by the membership of the Charity which includes all Trustees. Trustees may serve for a period of three, three-year terms and thereafter may serve a maximum of three additional one-year terms. An active Trustee Recruitment Programme is in place to fill gaps and to ensure that the Board has an appropriate range of relevant expertise and diversity. The induction process for any newly appointed Trustee is tailored to the requirements of the individual. The new Trustee receives copies of Charity Commission guidance, the minutes of the most recent Truslees, meetings, the Current strategy document, and a copy of the most recent statutory accounts. Ongoing Iraining is provided for all TrLAslees. The Board welcomed new Trustees during the year: lan Hall - 27 February 2025- lan is a retired Auditor,. he has extensive organisational knowledge, having previously worked for Local Solutions for 20 years as Internal auditor and then as a special advisor. stephen Okoro- 2 April 2025 - Stephen is a Chartered Construction Professional, Skills Coach, Internal Quality Assurer and Programme Leader. The Committee Chairs and the Chief Executive report into the Board of Trustees on key issues and actions. Trustees receive other bespoke reports as appropriate. The Charity has a comprehensive set of policies and procedures in place in relation to operations, finance, human resources, risk management and health and safety. Page 5 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 Truslees declare any potential conflicts of interest at every Board meeting, and these are recorded. The Board acts in the best inlerests of the Charity and its beneficiaries and is not influenced by those who have special interests. INTEGRITY The Board of Trustees is committed to integrity. protecting the Charity's reputation, and promoting the core values through transparent and objective decision making. The Committee stwcture provides appropriate scrutiny, challenge. and independence. Trustees follow Best Practice as outlined in the Charity Governance Code, and the Board maintains registers of interests and disclosures of actual or potential GonfliGIs. DECISION MAKING, RISK AND CONTROL Decision Making Local Solutions operate a clear Scheme of Delegation identifying the operational matters for which the Leadership Team has delegated authorily. The Board of Trustees ensure decision making is scrutir)ised, timely, and in line with the Charity's strategic aims. Committees for Finance, Audit and Risk. and People and Culture, provide assurance and frameworks around decision making, performance and risk. Risk Management Local Solutions takes a robust approach to managing risk and maintains a Corporate Risk Register to assess its activities and operational risks and to agree any necessary action for mitigation and control. Risk assessment and management is regularly considered at Board, Finance, Audit and Risk Committee and Leadership Team meetings. The Corporate Risk Register considers governance and management. operational. quality, financial, people, and cyber security aspects of the activities of Local Solutions. 11 covers risks Ihat the organisation may face and steps and control procedures in place to mitigate those risks, as well as providing an ongoing review of existing systems and procedures. The Corporate Risk Register is supported by service-specific quality audit processes and tools which focus on the regulatory and delivery aspects of the Charity's main operations. Principal Risks and Challenges The principal risks and challenges which the organisation currently faces are.. Failure to satisfy regulatory quality benchmarks. Failure to recruit and retain enough quality staff across all functions. Failur8 to recruit and retain Trustees with relevant skills. Serious Incidents and Safeguarding. Insufficient funding from Local Authorities and other publi¢ sector commissioners to cover Cost of delivery of services. Threals to cyber security. Unexpected and rapid changes in Government policy resulting in unbudgeled additional costs. Failure lo grow or secure new business. Serious breach of data protection regulations. Page 6 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 The Board of Trustees has overall responsibility for the management of risk. The Finance, Audil and Risk Committee has delegated authority lo review all aspects of risk management for Local Solutions and to provide oversight of the design, implementation, and effectiveness of risk management processes. A firm of chartered accountants has been appointed by the Charity to perform internal audit services, working lo an agreed 3-year internal audit strategic plan linked to the Corporate Risk Register. To ensure independence, the internal audit contractor has free and full access to the organisalion's officers. records, premises, and meetings, reports to the Chair ofthe Board of Trustees and functionally lo the Finance, Audit and Risk Committee. The Corporate Risk Register is a live document which is subject to ongoing change as circumstances require, and which involves the Leadership Team and Trustees in identifying, assessing, and monitoring risk. The Finance, Audit and Risk Committee reviews the Corporate Risk Register on a quarterly basis, and it is reviewed by the Board of Trustees twice a year. Failure to meet regulatory quality benchmarks may mean thal Local Solutions is ineligible to retender for contracts resulting in the potential for significant monetary loss and negative organisational impact. Investment continues to be made in improving quality moniloring and oversight, including implementation of the Homecare Quality Plan to ensure achievement of CQC standards, conduct of mock inspections for Ofsted regulated services, weekly reporting of data on quality, implementation of the Myconcern reporting app, and inclusion of the Registered Manager in the Extended Leadership Group Recruitment and retention of staff, especially within the Homecare seNice, remains a significant risk. The Employment Rights Bill 202415 will further increase pressure on social care funding costs by ending zero- hours contracts which are still favoured by a large majority of Local Solutions care workers. A workforce development strategy is in development to help mitigate these risks with increased emphasis on an employee assistan￿ programme and wellbeing support. The risk of significanl harm to service users or siaff whilst accessing Local Solutions. services is mitigated by deployment of a dedicated organisational Safeguarding Lead and a named Trustee Lead. Both participate in Safeguarding Slrategy Group meetings in which the SafegLrarding Risk Register is reviewed, and any items of note are reported directly to the Board of Trustees. Effective and consistent operation of l.T. systems is essential to the success of Local Solutions. Domiciliary care services depend on syslems access for acGurate logging of client calls, Gare management and invoicing. If access lo the syslem were removed or unavailable this would present a significanl risk to Local Solutions. Steps taken to miligate this risk include daily backups of data on an internal server, availability ofoffline data for calls during short-term access issues, regular meelings with the system provider to review functionality, and assessment of other potential system providers for features, cost, and benefits. Steps (including staff training on phishing and malicious links, reslrictions on who is authorised to install software on company devices, and use of anlivirus software) all form part of the organisation's strategy to combat cyber security risks. As cyb8r threats continue to evolve. the Charity has prioritised resilience, proactive defence, and best practiC8s in security govemance and management. Over the pastfew years. cyber threats to local charities have escalated due to their reliance on digital systems. limited cybersecurity budgets, and the sensitive data they handle. Ransomware and phishing attacks have surged, exploiting weak email security and outdated systems. To counteract these changes, we have invested and made significant improvements to the cyber security and IT infrastructure to better protect sensitive data, ensure regulatory compliance, and safeguard the digital infrastructure supporting our services. The move to cloud-based servers, use of Microsoft E5 Business Premium licencing, and the introduction of Mime¢ast spam protection and filtering along with Fortinet hardware firewalls installation has led to an improvement in secure score, a measure of the effectiveness of the Charity's security measures, from 25.80/0 in 2020 to 85.20/0 now. Page 7 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 Changes to Employer National Insurance Contribution rates and thresholds announced by HM Government in the Autumn 2024 Budget. to be implemented in April 2025, were not expected. A combination of lower thresholds for employer National Insurance Contributions {NICs). partioularly affecting Homecare operations where many staff work part-lime, higher NIC rates, and the Charity's Commitment to be a Real Living Wage employer, increased the cost to Local Solutions of delivering services in 202512026 by around £760,000. Single year Local Authorily funding settlements for the next two years. and the absence of a mechanism to reflect Ihe impact of high deprivation rates on council reventses. contribute further to uncertain funding environments and market instability as smaller domiciliary care providers fail or withdraw provision. The significant Cost increases and continued uncertainty over future Homecare revenues required aclion to reduce the overall cost of running the organisation lo mitigate unsustainable financial deficits in 2025126 and beyond. All staff structures were reviewed and, after careful review, savings of £300,000 were realised to maximise sustainability whilst minimising the impact on confidence. quality, safety and service user experience. Serious Incidents and Safeguarding The Trustees recognise the requirement to report serious incidents to the Charity Commission. Local Solutions has developed and implemented robust Health and Safety, Financial, Disaster and Contingency Planning policies to assist the organisation in minimising the risk of serious incidents and has appropriale strategies in place in the event of an incident. Local Solulions provides a wide range of services within the Liverpool City Region and North Wales. including domiciliary and residential social care, accommodation. domestic abuse, and other services for a cross-section of young people and older people. By the nature of the provision we deliver, we have frequent interadion with the police, local authorities. and other statutory and regulatory bodies, such as the Care Quality Commission, in the reporting of serious incidents, for which there are established protocols which must be followed. Monthly Key Performance Indicators relating to Complainls and Safeguardir)g Allegations are reported to the Board of Trustees to keep them fully informed about serious incidenls. There is a specific operational lead for safeguarding and a Safeguarding Slrategy Group which includes a nominaled Trustee. This Group provides scrutiny, review, and analysis on safeguarding matters. Our Safeguarding Policies and Procedures outline a clearly defined reporting process. DIVERSITY Our Vision is a society where all people can live with dignity, lead fulfilled lives, and realise their full potential. Local Solutions is Gommitted to continuing to enhance Equaltty. Diversity, and Inclusion in everything we Statement of Commitment Local Solutions, Mission is to Empower People and Support Communities. Our teams, whether in offices or communities, are vital. They are compassionate, reliable, pioneering, and knowledgeable which helps them to understand the challenges and 8mpower change. We ensure that we always r8cruit. retain, and promote a diverse mix of people who are representative of the diversity in our local communities which gives us a great opportunity to have access to a broad range of ideas and allows us to deliver the wide mix of services. Page 8 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 Our Commitment as an Employer Local Solutions is committed to: Creating an environment in which individual differences and the contributions of our stsff are recognised and valued. Ensuring that everyone operates in a working environment that promotes dignity and respect to all. No form of intimidation. bullying or harassment will be toleraled. Providing training, development, and progression opportunities to all stsff. Understanding equality and inclusion in the workplace. That is good management practice and makes sound business sense. Regularly reviewing all our employment practices and procedures to ensure faimess and inclusion. Taking steps to ensure equity amongst our workforce, such as ensuring that our vacancies are advertised to a diverse range of potential candidates and, where relevant. to particular groups that have been identified as disadvantaged or under-represented in our organisation. Taking positive action to recruit disabled people and ensuring there are no unlawful barriers to accessing our employment opportunities. training, progression opportunities, benefits, and facilities. Ensuring that diversity in our workforce is regularly monitored to ensure equal opportunities throughout the organisation. Where appropriate, measures will be taken to identify and remove obstacles and to meet the special needs of disadvantaged or under-represented groups. Our Commitment as a Service Provider Local Solutions is committed lo.. Providing services to which all clients are entitled regardless of age. disability. gender reassignment, marriage and Givil partnership, pregnancy or maternity, race, religion or belief, sex, or sexual orientation. Making sure our services are delivered equally and meet the diverse needs of our service users and clients. Taking steps to ensure equity amongst our clients and service users such as removing any unlawful obstacles to accessing our serviGes or facilities. Where appropriate, measures will be taken to identify and remove unnecessary barriers and to meet the special needs of disadvantaged or under-represented groups. Having clear procedures that enable our clients, candidates for jobs and employees to raise grievance or make a complaint if they feel they have been unfairly treated. Employment of Disabled Persons Local Solutions is committed io ensuring that disabled people are afforded equality ofopportunity in respect of entering and continuing employment with us. In 2023 Local Solutions was re-awarded the Disability Confident Employer kitemark for a further 3 years. Local Solutions us8S the Disabilty Confident Symbol, which is our pledge to- Interview all disabled applicants who meet the essential criteria for a job vacancy and consid8r them on their abiltties. Ensure there is a mechanism in place to discuss with disabled employees at any time. but at least annually, what can be done to make sure th@y can develop and use their abilities. When employees become disabled, make every effort to make sure they remain in employment. Take action to ensure that all employees develop the appropriate level of knowledge necessary to make these commitments work., and Regularfy review the above Commitments to shape plans. Page 9 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPOFIATING STRATEGIC REPORT) For the year ended 31 March 2025 Employee Involvement Employees receive regular communicalions through a range of different media informing them of organisalional news, service updates and forthcoming evenls. Additionally, staff receive regular updales from the Chief Executive. Local Solutions has an Employee Forum - a recognised employee group with clear terms of reference which allows all to participate through member represenlalion. We have regular pulse surveys on a range of themes and an annual staff survey and planning process. STRATEGIC REPORT The description under the headings "Overview of the year" and "Financial review" meet the company law requirements for the trustees to present a strategic report. OVERVIEW OF THE YEAR KEY HIGHLIGHTS In 202412025. Local Solutions delivered meaningful change at scale. We directly supported over 37,700 people, marking a year of growth, innovation, and practical responses to complex needs. Our work focused on connecting people with opportunity, care, housing and resilience across our three Big Missions. Our reach was extensive: we delivered more than 400.000 hours of care, supported 1,494 victims of domestic abuse, provided temporary housing to over 500 young people, and enabled 1,702 unpaid carers to enjoy respite through MyTime. Over 14,000 individuals accessed activities al Liverpool Watersports Centre. and our Carers Centre facilitated over 1.300 people to participate in health and wellbeing sessions. These figures represent lives improved, safety restored and independence regained. We launched and embedded our Community Empowerment Fund (CEFJ. distributing over £70,000 in small grants to more than 50 grassroots groups. From youth boxing to community food growing, and trauma- informed workshops to inclusive art projects, CEF empowered people with lived experience to lead the change they want to see. Our work was also shaped by partnership. Through our roles as social sector partners wilh Liverpool University, LJMU and Liverpool Community College. we co-created pathways into employment, research and frontline services. We expanded our IDVA teams, supported multi-agency safeguarding work, and delivered rapid response care in Sefton's redesigned care contract. The Scotland Road redevelopment advanced with planning permission secured, unlocking the next phase in our ambilion to provide high quality accommodation options for young people experiencing homelessness. Meanwhile, funding partnerships for wellbeing hubs in Allerton and Garston will build on the success of our original 'Happy Place. in Netherley - tackling isolation through activity, conne¢tion, and wellbeing. Our year was not without challenge. Recruitment in social care, challenges in accommodation availability, and the ongoing impact of policy shifts {including Nalional Insurance and Real Living Wage costs) created operational pressure. However, we mel these head on through agility, creativity, and shared leadership. Designated reserves created the conditions for maintaining positive ambitions, while continued investment in digital infrastructure and internal development built stronger systems. Page 10 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 Above all, we amplrfied human stories. People like Joe, whose carejourney started with us. Naheed, whose carer support experience reflecls those of many across the region. And Lisa, who found stability in Supported Lodgings and now mentors others. Their stories featured in our 50th Anniversary films, celebrating five decades of community strength. We are proud of our staff and volunteers, whose compassion and commitment are the heartbeat of our work. As we step into the next chapter, our focus remains on delivering services with dignity, designing around people not processes. and building places where everyone can thrive. REVIEW OF SERVICES Transform Social Care This year, Local Solutions delivered over 400,000 hours of ¢aTe across the Liverpool City Region and Norlh Wales, supporting 1,120 people in their own homes. Our Homecare leams provided both help to live at horne and specialist care services. designed to enhance wellbeing and independence. From personal care to companionship, our approach centred on dignity, consistency. and individual outcomes. In response to the growing complexity of need. we continued to invest in upskilling our care teams and embedding digital tools. We expanded our use of real-time monitoring systems and explored the early development of the Milo Care App- a digital care companion plaffomi with potential to integrate wearable health data, video support, and wellbeing insights. Our 'Happy Place. wellbelng hubs gained recognition and funds to expand into Garston and Allerton, offering community-led activities including chair yoga, creative arts, reminiscence sessions and advice drop-ins. These hubs, co-designed with service users, proved instrumental in reducing isolation and reconnecting people wilh local resources. Our Extra Care service at Cherry Tree House continued to support older residents living with dementia and complex needs. This year, we introduced digital dementia engagement tables and further wellbeing activities- a reflection of our values-led, holistiG approach. We proudly maintained our commitment to the Real Living Wage, despite sector-wide funding challenges. Through campaigning, parlnerships, and active involvement in national forums, we advocated for ethical commissioning and sustainable pay structures. Our IDVA (Independent Domestic Violence Advisor} services reached 1,494 individuals, with provision embedded into Mulli-Agency Safeguarding Hubs and Early Help Teams in Liverpool. These services focused on rapid response, survivor-led safety planning, and specialist supporl for young people and those with protected characteristics. End Homelessness Over the year, we supported more than 500 young people and famllles through our housing and homelessness services. Our projects. such as Homeground Hostel. Supported Lodgings, Webster Road moveqon flats. and Flintshire Hub each played a vital role in preventing and responding to homelessness among vulnerable people. Across our services, staff delivered wraparound Irauma-informed support, ¢o-created wilh residents. Regular feedback loops and lived experienc8 mentoring formed part of a refreshed model focused on emotional safety and progression. Pag811 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPOFZATING STRATEGIC REPORT} For the year ended 31 March 2025 Our Supported Lodgings programme provided safe, family-style accommodation for 104 young people. We launched a major refresh of the service this year, including a communications plan, an independent evaluation and a practitioner summit. Many of our hosts, such as Sam - herself a former resident - now offer not jusl space, but mentorship. In North Wales, we expanded our temporary accommodation and family support work. Our Flintshire Hub provided early inteNention to over 130 families, supporting tenancy readiness and preventing escalation into crisis. Our accommodalion slralegy also progressed through partnership-led planning for a redeveloped Scotland Road sile and scoping of new housing offers in Parliament Street and Boaler Street. These sites reflect our belief in housing as a foundation for wellbeing, not just a roof over one's head. Empower Communities Our Carers Centre supported more than 2,400 unpaid carers, delivering over 4,000 health and wellbeing sessions. Services included benefits advice, health checks, advocacy and respite support. The Centre offered a warm, welcoming space for carers to connect, recharge and access support. The MyTime programme delivered respite breaks to 1,702 carers across Liverpool. Wigan, Milton Keynes and Coventry. Thanks to new partnerships. carers accessed hotels. cafes. football stadium tours and river cruises - creating memories, reducing isolation and improving wellbeing. Our Community Empowerment Fund {CEF) made over £70,000 in grants to 50+ grassroots groups. Projects ranged from eco therapy. music production. women's trauma support and mental heatth advocacy. In addition to funding, we hosted slorytellin9 and learning events, encoura9ing shared leadership and community pride. Young people remained at the heart ofour community work. Through Bullybusters and AIMS, we delivered 629 school-based workshops, tackling bullying, exploitalion and online harm. Our Staying Safe programme, delivered in partnership with Merseyside Police, supported 418 young people at risk of criminal exploitstion. At Liverpool Watersports Centre, more than 14,000 people participated in activities including kayaking, paddleboarding and team building challenges. The Centre provided inclusive outdoor experiences to schools, youth groups and people with disabilities, strengthening confidence, Community and fun. Our Shopmobility service at Liverpool ONE supported 1.334 individuals with mobility impairments to access the city independently. Run with volunteer support, the service embodies our commitment lo access, dignity and everyday inclusion. We also deepened partnerships with academia and the voluntary sector, Gollaborating on projects with universities, care providers and advocacy campaigns. Throughout, our commitment to place-based, person-led design shaped delivery, learning and innovation. Page 12 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 PUBLIC BENEFIT The Trustees of Local Solutions confirm thatthey have given due consideration to the Charity Commission's published guidance on the operation of public benefit when reviewing the Charity's aims and objectives and in planning strategy and future activilies. Our activities in 202412025 demonstrated, in all accepted definitions. that Local Solutions continues to provide charitable services across England and Wales thal are of public benefit through the delivery of our transformative services and approaches. PLANS FOR FUTURE PERIODS As we move into 202512026, our focus will remain on deepening our impact through the continued delivery of our Three Big Missions.. Transform Social Care- We will continue investing in workforce development, digital care models (including the Milo Care App), and expanding co-produced wellbeing hubs. We will also strengthen our voice in national care sector reform and ethical Gommissioning. End Homelessness.. Our supported accommodation strategy will progress through redevelopment at Scotland Road and feasibility planning for Sunraye 2 and other new sites. We will implement findings from our Supported Lodgings evaluation to shape future models. Empower Communities: We aim to identify a suitable community location for our central services and several of our outward facing projects where we can maximise the social impacl of our operations. We aim to scale the Community Empowerment Fund, expand MyTime into new areas of the Liverpool City Region, and strengthen our role in social prescribing and community-led commissioning. Cross-cutting all this will be a strategic refresh, planned forAutumn 2025. This will ensure our work remains responsive to the social, economic and policy environment. We will focus on improving systems, developing leadership, and exploring asset ownership opportunilies for long-term sustainability. Our commitment to lived experience, values-led leadership and collaborative design will remain central. Through purposeful partnerships and grounded innovation. we will continue to shape places, systems and services where people can thrive. Subsequent to the year-end, the charity entered into an agreement to purchase a property to support future service delivery. As the conditions did not exist at the balance sheet date, this is treated as a non-adjusting post balance sheet event. Page 13 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 FINANCIAL REVIEW Income and Expenditure The overall surplus for the year was £200,372 {2024.' surplus £183,751). Income forthe year has increased to £14,598,03712024-. £13,328.907). Expenditure has increased lo £14,397,665 (2024: £13.145.1561. During 2024125 we have not utilised any Designated Reserve allocation. recognising all costs within our general expenditure. Staff costs remain the highest cost for the organisalion. Wages and salaries for carers and core staff plus employer national insurance and pension contributions equates lo 85 % (2024.. 85 % ) of total cosls for the year ended 31st March 2025. Local Solutions continue to be a Real Living Wage employer, which has resulted in a specific Real Living Wage linked increase in some Local Authority Rates. Income from delivery of domiciliary care services, Local Solutions, largest source of revenue, was 9.10/0 higher than the previous year, from a growth in hours and income rates. Support and accommodation services and communities. activities such as the Liverpool Watersports Cenlre. domestic abuse support. and Liverpool Carers Centre provision all continue to make a positive financial contribution to Local Solutions in addition to the social impact they delivered to service users and the wider community. Additional funding secured within our domestic abuse services in year and continuing MyTime delivery has also had a positive impact. The Charity earned £94,886 in interest income during 2024-25, taking advantage of the higher inlerest rates available. These are reviewed and agreed by the Finance, Audit and Risk Committee monthly to ensure an appropriale balance between accessibility of funds and the opportunity to earn interest. To comply with the Charity Governance Code, the financial implications associated with adherence to the Code are considered when setting the organisation's annual Budget and are expended as incurred. Balance Sheet The Balance Sheet remains strong despite the impact of challenges during the year. Cash flow has been satisfactory with a closing cash position (including cash held on deposit) of £2,362,083 (2024.. £2.331,595) at the end ofthe year. This represents 1.97 times average monthly expenditure. The working capital position has remained positive throughout the year with no cause to access the overdraft facility of £100,000. Net assets of the Charity have increased to £2,720,300 at the year-end {2024.' £2,519.928). Page 14 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 Reserves Policy Charity reserves are that part of a charity's unrestricted funds thal are available to spend at the discretion of the charity truslees. They are unrestricted and are intended to cover LAnanticipated reductions in income or to fund charitable activities. The Reserves Policy seeks to ensure Ihat Local Solutions can meet all its current cash flow needs and future obligations, while also enabling uninterrupted operation and provide time to adjust in the event of any change in financial circumstsnces. A significant proportion of Local Solutions, costs are contract-linked expenditure and therefore directly recoverable under contracts for services. This means that. in the event of the loss of one or more of these contracts. most of the costs associated with them would be transferred to the succeeding contractor. Following the loss of such a contracl, Local Solutions would be lefl to cover cenlral support costs along with other direct administralive costs which are not contract-linked. Unrestricted free reserves are defined as general unrestricted funds less tangible fixed assets. Tangible fixed assets cannot be realised quickly and are therefore deducted when calculating unrestricted free reserves. The Tfustees consider that it is appropriate for the Charity to hold unrestricted free reseNes equivalent to a minimum of three months, central support costs plus other costs to which there is no directly linked contract. Based on the 2025126 Budget, three months, central support and admin costs currently amount to £572,917. The current level of unrestricted free reserves is £1,199,532 providing 2 times of cover forthe target level of central support costs. The Trustees wish to continue to invest in the future and the development of the Charity. To achieve this, three designated funds have been maintsined this year.. Impact and Innovalion. Accommodation Development Fund, and Workforce Resilience. Further information on designated funds is provided in note 12. Designaled funds are intended to be spent in furtherance of specific aspecls of the Charity's objectives and in line wilh our long-lerm ambilions for suslainability and impact. Designated funds are excluded from the calculation of unrestricted free reserves as they are not available for general expenditure. The Trustees recognise the need to ensure the level of reseNes is appropriate for the size of Ihe organisation. As part of their regular assessment of the Charity's reseNes requirements. the Board of Trustees has reviewed analyses of several scenarios in relation to reserves. It was agreed that no change to the Reserves Policy is required now. but that due to increased uncertainty and volatility, especially in domiciliary care markets. we will aspire to work towards maintaining unrestricted free reserves equivalent to six months, central support costs plus other costs to which there is no directly linked contract. This will be kept under annual review by the Finance, Audit and Risk Committee to ensure that reserves are adequate to meet the Charity's cash flow needs and that the Policy remains fit for purpose. Investment Policy The Memorandum and Articles of Association sets out the Charity's powers of investment. Currently, the Charity does not hold any long-term investments. Short-term surplus funds are placed in cash deposit investment schemes with the Charity's bankers. The Trustees are satisfied with the return achieved given prevailing interest rates. Page 15 LOCAL SOLUTIONS REPORT OF THE TRUSTEES (INCLUDING DIRECTORS, REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 Funding The Trustees remain satisfied that the Charity's assets altributable lo each of its individual funds are available and adequate to fulfil its obligations in relation to those funds. Going Concern The Board of Trustees is required to Consider the appropriateness of the going concern basis when preparing financial statements. Financial and operational resilience has been challenged during the Charity's Sokn year but rionetheless remains robust. We began the financial year with news that delivery rate rises in key Homecare contracts would only be matched to the basic rise in national living wage, ignoring real living wage commitments and failing to acknowledge the increased costs of management. compliance, building rents, utilities, insurance and general delivery. Inilial recommendations for the government's social care transformation agenda are now not expected until mid-2026, while the 2024 Autumn Budget placed additional burdens on providers through increases to employers Nl and, most critically, changes to the thresholds for triggering Nl for part time workers. These changes, alongside our commitment to RLW, left the Charity facing increased costs of around £760k in 202512026, while the outlook for Homecare fees is uncertain, making budgeting challenging_ This created a position where we were forced to reduce the overall cost of running the organisation to mitigate unsustsinable deficits in 2025126 and beyond. A restructuring process was completed to bring costs down by around £300k to bridge the expected funding gap. The Charity has a strong Balance Sheet with a cash position of £2.362.083 and Total Reserves of £2.688,970 at the end of the year. The working capital position has remained positive throughout the year with no need to access the overdraft facility of £100,000. Given the Charity has no anticipated borrowings, the risk of any breach of temis or conditions associaled wilh the overdraft facility is assessed as low. To consider the appropriateness of the going concern basis. we have prepared forecasts to March 2026 with the underlying assumptions reviewed in detail by the Finance, Audit and Risk Committee. Several scenarios were considered which stress tested the Charitys income. These included a reduclion in Homecare hours delivered, lower capacity ulilisation in accommodation services, and depressed activity levels at Liverpool Watersports Centre because of poor weather. We forecast that the worst-case scenarios would resull in a budgeted surplus of £5K. compared with the base case assumption of £37K. Based on our forecasts for the coming year and beyond, and the level of reserves, the Trustees have a reasonable expectation that Local Solutions has adequate resources to continue operations for at least 12 months from the date of approval of these accounts. Trustees have reviewed the assumption that Local Solutions remains a going concern and have concluded this to be a¢¢urate and appropriate. Further information in this respect is given in the principal accounting policies. Statement of Trustees, Responslbllitles The Trustees (who are also Directors of Local Solutions for the purposes of Company Law) are responsible for preparing the Strategic Report, the Annual Report, and the financial statements in accordance with applicable law and regulations. Company Law requires the Trustees to prepare financial statements for each financial year in accordance wilh United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Company Law the Trustees must not approve the financial statements unless they are satisfied thal they give a true and fair view of the state of affairs of Ihe Charitable Company and of the incoming resources and applicalion of resources, includin9 the irscome and expenditure, of the Charitable Company for that period. Page 16 LOCAL SOLUTIONS REPORT OF THE TRUSTEES {INCLUDING DIRECTORS, REPORT INCORPORATING STRATEGIC REPORT) For the year ended 31 March 2025 In preparing these financial slatements, the Trustees are required to.. select suitable accounting policies and then apply them consistently. observe the methods and principles of the Charities SORP. make judgements and accounting estimates that are reasonable and prudent. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements,. and Pfepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charitable Company will continue to operate. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company's transactions and disclose wrth reasonable acGuraGy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. 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. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. In so far as each of the Trustees is aware- there is no relevant audit information of which the Charitable Company's auditor is unaware. the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Trustee Indemnity Insurance The Board of Trustees has the benefit of Trustee Indemnity Insurance which is authorised in the Articles of Association and is in relation to certain losses and liabilities which the Trustee{s} may incur to third parties in the course of acting as a Trustee (Director) of Ihe Charity. Auditor DSG resigned as auditor on 11 September 2024 due to an internal reorganisation. On the same day, DSG Audit Limiled was appointed to continue the audil engagement without inlerruption. This change reflects a legal restructuring of the audit firm and does not affect the scope or continuity of the audit engagement. The Trustees, report including the strategic report was approved by the Board of Trustees. Hazel Snetr- Chair Date: 4th September 2025 Page 17 LOCAL SOLUTIONS INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LOCAL SOLUTIONS For the year ended 31 March 2025 OPINION We have audited the financial statements of Local Solulions lllhe Charitable Company I for the year ended 31 March 2025 which comprise the statement of financial activities. the balance sheel, Ihe stalement of ash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion. the financial slatements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources for the year then ended. have been properfy prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Inlernational Standards on Auditing (UK} {ISAs (UK)) and applicable law. Our responsibilities under those slandards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charitable company in accordance with Ihe ethical requirements that are relevant to our audit of the financial ststements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with thèse requirements. We believe that the audit evidence we have obtained is suff5cient and appropriate to provide a basis for our opinion. Concluslons related to going concern In auditing the financial statements, we have concluded that the trLJStees' use of the going concern basis of accounling in the preparation of the financial statements is appropriate. Based on the work we have performed, we have nol identified any material uncertainties relating to events or conditions that, individually or Gollectively, may cast significant doubt on the charilable 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. Page 18 LOCAL SOLUTIONS INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LOCAL SOLUTIONS For the year ended 31 March 2025 Other information The other information comprises the information included in the annual repori, other than the financial statements and our audilor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extenl otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibilty is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course ofthe audit. or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine whether this gives rise to a malerial misstatement in the financial stalements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this olher infomiation, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the trustees, report for the financial year for which the financial statements are prepared, which includes the directors, report and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and the strategic report and the directors. report, which are included within the trustees. report, have been prepared in accordance with applicable legal requirements. 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 misstalements in the strategic report or the directors. report included within the trustee's report. We have nothing to report in respect of Ihe following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion. adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visiled by us. or the financial statements are not in agreement with the accounting records and returns,. or certain disclosures of trustees, remuneration Sp￿lfied by law are not made. or we have not received all the information and explanations we require for our audit. Page 19 LOCAL SOLUTIONS INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LOCAL SOLUTIONS For the year ended 31 March 2025 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 ¢ompany law} aTe responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such interrial control as the trustees delemiine is necessary to enable the preparation of financial statements that are free from material misstatemenl. whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charilable company's ability to continue as a going concern, disclosing, as applicable, matters related lo going concern and using Ihe going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations. or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS {UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material rf. individually or in the aggregate, they Gould reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which the audit was capable of detecting irregularities, including fraud is detailed below Capability of the audit in detecting irregularities, including fraud As a parl of our audit in accordance with United Kingdom Generally Accepted Accounting Practice.. and requirements of the Companies Act 2006 we exercise professional judgement and maintain professional scepticism throughout the audit. Based on our understanding and accumulated knowledge of the charity and the sector in which it operates we considered the risk of acts by the charity which were contrary to applicable laws and regulations. including fraud and whether such actions or non-compliance might have a material effect on the financial statements. These included but were not limited to those that relate to the form and content of the financial statements, such as the Charities SORP 2019. Financial Reporting Standard 102 The Financial Reporting Slandard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) the UK Companies Act 2006 and those that relate to the payment of employees. All leam members were briefed to ensure they were aware of any relevant regulations in relation lo their work. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined thal the principal risks were related to posting inappropriate journal entries, management bias in accounting estimates and improper revenue recognilion associated with year-end Cut-off. Our audit procedures included, but were not limited to- Agreement of th8 financial statement disclosures to underlying supporting documentation., Challenging assumptions and judgements made by management in their signrficant accoLtnting estimates. in particular in relation to recoverabilily of debtors and valualion and completeness of deferred revenue- Revenue year end cut-off procedures., Identifying and lesting journal entries, in particular any journal entries posled with specific unusual narrative. manual journals lo revenue and cash, and review of journals posted to least used accounts- Page 20 LOCAL SOLUTIONS INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LOCAL SOLUTIONS For the year ended 31 March 2025 Discussions with management.. including consideration of known or suspected instances of non-compliance with laws and regulation and fraud.. Obtained an understanding of how the charity is complying with those legal and regulatory frameworks such as Companies Act 2006 & Employment Taxes Act by making enquiries to management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of board minules and other evidence gathered during the course of the audit- Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity's internal control. and Evaluated the overall presentation, structure and content of the financial statements, including the disclosures, and whettier the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a malerial misslatement dLJe to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberale concealment by, for example, forgery, misrepresentstions or through collusion. There are inherent limitations in the audit proGedures performed and Ihe further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council's (-FRC's') websile at.. https:Ilwww.frc.org.uldauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in aGcordanGe 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 Ihem in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work. for this report, or for the opinions we have formed. Jean Ellis BA FCA CTA (Senior Statutory Auditor) For and on behalf of DSG Audit 4 September 2025 Chartered Accountants Statutory Auditor Castle Chambers 43 Castle Chambers Liverpool L2 9TL Page 21 LOCAL SOLUTIONS STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT For the year ended 31 March 2025 Note Unrestilcted Restrlcted Total Total Funds Funds 2025 2024 Income and endowments from: D¢)natK)ns and legacies Income from tharllable acts'vities 41,837 78.614 120,451 45.493 14.152.208 230,492 14,382,700 13.113.837 Salg fsxed assels 121,394 Incom8 from inve¥lm8nts 94,886 94,886 48.183 Total Income 14,288,931 309,106 14,598,037 13,328,907 EXp•nd1￿rn on: Charitable activities 14,087.741 309,924 14,397,665 13.145.156 Tolal expèndlture 14,087,741 309,924 14.397.665 13,145,156 Not In¢omll•xpondltur•) 200,372 183,751 TransfeTS botsvoon fvnds 56.525 156.5251 Net movement In lunds 257.715 157.343} 200,372 183.751 Reconclllatlon of funds Total funds brought fofward at 1 April Total funds carrled forward at 31 March 13 2.431.255 88.673 2,519,928 2.336,177 13,14 2.688.970 31,330 2,720,300 2,519,928 All of the principal activities of the charity were continuing for the year ended 31 March 2025. There were no recognised gains or losses other Ihan the result for the year. Page 22 LOCAL SOLUTIONS BALANCE SHEET As at 31 March 2025 Note 2025 2024 Flxed assets Tangible assets 239,616 252,348 Current assets Debtors Investments Cash at bank and in hand 1,483,764 420,427 1,941,656 1,296,203 10 2,331.595 3,845,847 3,627,798 Credltors: amounts falllng due wlthln one year Net current assets 2 531784 2 313680 Provlslon for Ilabllltles 12 (51.100) (46,100) Net assets 2,720,300 2,519,928 Funds Restricted General Unrestricted Designated Reserves Revaluation Res8rv8 13 13 13 13 31,330 1,438,970 1,250,000 88.673 1,181,255 1,250,000 2.720,300 2,519,928 The financial statements were approved by the Board of Trustees on 4 September 2025 , and signed on their behalf by: Hazel S Trustee Company Number: 01792921 Pago 23 LOCAL SOLUTIONS CASH FLOW STATEMENT For the year ended 31 March 2025 Note 2025 2024 Cash flows from operatlng actlvltles Surplus for the financial year Adjustments for: Depreciation. impairment and amortisation of fixed assets Profit on sale of fixed assets Net interest (receivable) Increase in trade and other debtors Increase in trade and other creditors 200,372 183,751 12,732 26,974 (121,394) (48,183) (122,218) 91,332 (94,886) (187,561) 4,945 11,12 Net cash generated from operatlng actlvltles (64,398) 10,262 Cash flows from Investing activltles Net proceeds from sale of tangible fixed assets Current asset investments Interest Received 919,162 (420,427) 94,886 48,183 Net cash from Investlng actlvltles (325,541) 967,345 Not Increase l (d•crease) In cash and cash equlvalents Cash and cash equivalents at beginning of year (389,939) 977,607 2,331.595 1.353,988 Cash and Cash equivalents at end of year 1,941,656 2.331,595 Cash and cash equlvalents comprls•: Cash at bank and in h8nd Bank overdrafts 1,941,656 2,331,595 1,941,656 2,331,595 The accompanwng accounting policies and notes fom an integral part of these financial stat6m8nls. Page 24 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 ACCOUNTING POLICIES Charity Information Local Solutions is a private company limited by guarantee incorporated in England and Wales. The registered office is Vortex Court, Enterprise Way, Wavertree, Liverpool, L13 1 FB. Accounting Convention The Company is limited by guarantee and has no share capital. The financial statements have been prepared in accordance wilh applicable accounting standards including the Statement of Recommended Practice.. Ststement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard appliGable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019 (Charities SORP (FRS 102>), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011. They have been prepared under the historical cost convention. On Iransilion lo FRS 102 the Charty has elected to treal the depreciated valuation of land and buildings recognised under the previous UK GAAP as deemed cost. Any difference between historical cost deprecialion and depreciation calculated on deemed cost is transferred between the revaluation reserve and unrestricted funds. The trustees confimi that the Charity meets the definition of a public benefit entity as defined under FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The principal accounting policies of the Charity have remained unchanged from the previous year and are sel out below. GOING CONCERN POLICY The financial statements have been prepared on a going concem basis, which principally assumes that the Charity will continue to receive contracted financial income from various Local Authorities at a sustainable level. The Charity has several contracts in place which secure income and cash flows for at least 12 months from the date of approval of these accounts. Forecasts have been prepared and reviewed for the forthcoming year and beyond, with various scenarios and key assumptions being made to consider a range of possible outcomes. The Trustees and the Management Team recognise the impact that the general economic climate and the Government's spending review has on the level of public sector funding and are fully aware of the continued impact on funding directly and indirectly available to the Charity. They continue to monitor the various scenarios that reduced income levels could give rise to. In a worsl-case scenario, whilst it would see the Charity's reseNes and cash position impacted significantly, it would not affect the going concern assumption over th8 medium and long-temi. Page 25 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 Following a review by Trustees, taking into consideration the cash raised from the sale of the Scotland Road site, the overdraft facility has been maintained at £100,000. Projections produced indicate thal there will be no need lo draw on the overdraft and that there will be considerable headroom If our best- case assumptions malerialise. Considering the strength of the balance sheet. and levels of cash and unrestricled reserves, the Trustees believe that, whilst considerable uncertainly exists about the economic and operating environment, this does not pose a material uncertainty that would cast doubl on the Charity's ability to continue as a going concern. The Trustees therefore consider it appropriate to prepare the financial statemenls on a going concern basis. INCOME Fee income Fee income is credited as incoming resources when the work relating to the fees has been completed. Income relating to a specified future period is deferred. Grants receivable and Deferred Income Revenue grants are credited as incoming reSoUr￿S when Ihey are receivable provided conditions for receipt have been complied with, unless they relate to a specified future year, in which case Ihey are deferred. Grants for the purchase of fixed assets are credited to restricted incoming resources when receivable. Depreciation on the fixed assets purchased with such grants is charged against the restricted fund. Any unexpended income on projects which relates to grants or donations which must be expended in the following year is taken to creditors and shown as deferred income. Donations and legacies All monetary donations and gifts are included in full in Ihe statement of financial activities when received if there are no donor-imposed restrictions as to the timing of the related expenditure. If there are any donor- imposed restriclions on the timing of expenditure, then recognition is deferred until any pre-conditions have been met. Legacies are included when the Charity is advised by the personal representative of an estate that payment will be made, and the amount involved can be quantified. They are included in the statement of financial activities. Gifts-in-kind are accounted for at the Trustees. estimate of value lo the Charity or sale value as follows: Assets received for dislribulion by the Charity are recognised only when distributed. Assets received for resale are recognised, where practicable, when receivable or otherwise when sold. Gifts of fixed assets for Charity use or funds for acquiring fixed assets for Charity use are accounted for (as restricted funds) immediately on receipt. Page 26 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 Intangible income, which comprises donaled Se￿ices. is included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. An equivalent amounl is charged as expenditure. No inGome is recognised when there is no financial cost borne by a third party. Voluntary help is not included as income. Donations under Gift Aid together with the associated income tax recoverable are credited as income when the donations are received. EXPENDITURE Expenditure is included on the accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to a particular heading, they have been allocated to activities on a basis consistent with the use of the resources. Allocation of Overheads Local Solutions operates cenlralised services for senior management, human resources, finance, IT services, and quality functions. The costs of these centralised services are allocated to individual projects based on actual project expenditure. This ensures a fair and transparent allocation of costs and is in line with accepted practices within the voluntary sector. FUND ACCOUNTING Restricted funds are to be used for specified purposes laid down by the donor. Expenditure for those purposes is charged to the fund, together with a fair allocation of overheads and support costs. The Charity has projects for which funding consists of restricted and unrestricted income. The Charity's policy in preparing the financial stalements is to apply expenditure, together wilh a fair allocation of overheads and support costs, against both restricted and unrestricted income to a point where all restricted income has been covered. Expenditure beyond that point is allocated against unrestricted income only. This policy is considered by the Trustees to represent a practical means of representing how costs are allocated on a consistent basis across each project. Any deficits incurred by the Charity on restricted funds are funded by the Charity's unrestricted income. Unrestri¢ted funds are donations and other incoming resources received or generated for expenditure on the general objectives of the Charity. TANGIBLE FIXED ASSETS AND DEPRECIATION Tangible fixed assets are stated at deemed cost. net of depreciation and any provision for impairment. Depreciation is calculated to write down the deemed cost less estimated residual value of all tangible fixed assets other than freehold land by equal annual instalments over thelr esilmated useful ewnomic Ilves. The Charity capitalises all individual items of fixed assets more than £3.000 for small items and £5,000 for fixed items. Page 27 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 Assets during construction are included within Fixed Assets as a separate category Depreciation will only commence once the property is brought into use and will then be applied in line with the depreciation policy. The rates generally applicable are.. Freehold properties Motor vehicles Fixtures, fittings, equipment and computer sofvare 2°/0 of deemed cost 5 Years 2 to 5 Years Impairmenl of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is an indication that those assets have SLAffered an impairment loss. If any SLtch indication exists, the recoverable amount of the asset is eslimated in order to determine the extent of the impairment loss {if any). VALUE ADDED TAX The Charity is partially exempt from VAT and all irrecoverable VAT is shown in dirert charitsble expenditure. Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediatety as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. RETIREMENT BENEFITS Defined Contribution Pension Schemes The pension costs charged against the operating surplus are the contributions payable to the schemes in respect of the accounting year. OPERATING LEASE AGREEMENTS Rentals applicable to operating leases where subslanlially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight-line basis over the period of Ihe lease. FINANCIAL INSTRUMENTS Local Solutions only enters into basic financial instruments thal result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans from banks and other third parties. Financial assets and financial liabilities are recognised when Local Solutions becomes a party to the contractual provisions of the instrumenl. All financial assets and liabilities are initially measured at transaction price (including transaction costs). Page 28 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 Local Solutions only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value arsd subsequently measured at their settlement value. Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Creditors and provisions are recognised where Local Solutions has a present obligation resulting from a past event that will probably result in the transfer of funds to a third paty and the amount due to sellle Ihe obligation can be measured or estimaled reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Financial assets that are measured at cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairmenl loss is reco9nised in the Statement of Financial Activities. For financial assets measured at cost less impairment, the impairment loss is measured as Ihe difference between an asset's carying amount and best estimate. which is an approximation of the amount that the Charity would receive for the asset if it were to be sold at the reporting date. Financial assets and liabilities are offset, and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. RECOGNITION OF LIABIL ￿lEs Liabilities are recognised as soon as there is a legal or constructive obligation committing Local Solutions to pay out resources. LIQUID RESOURCES Liquid resources are those associated with Ihe cash management of Local Solutions. Cash and cash equivalents include cash in hand and deposits repayable on demand. Deposits with notice periods three months and over are classified as current asset investments unless they are accessible without significant penalty. TAXATION The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the exlenl that these are applied to its charitable objects. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the charity's accounting policies, the trustees are required to make judgements. estimates and assumptions about the carrying amount of ass8ts and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. A¢tual results may differ from these estimates. Page 29 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the eslimate is revised where the revision affects only that period, or in the period of the revision and future periods where Ihe revision affects both currenl and future periods. In preparing these financial statements, the directors have had to make the following judgements: Determinewhether leases entered into either as a lessoror8 lessee are operating leases or finance leases. These decisions depend on an assessment of whethef the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease-by-lease basis. Determine whether there are indicators of impairment of the tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of thal unit. Other key sources of estimation uncertainty: Tangible fixed assets (see note 8) Tangible fixed assets are depreciated over their useful lives considering residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product lrfe cycles and maintenance programmes are considered. Residual value assessments consider issues such as future market conditions. the remaining life of the asset and projected disposal values. Page 30 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 ANALYSIS OF INCOME 2025 2024 Donations deferred at 1 April 2024 Donations receivable in the year Donations deferred at 31 March 2025 203 45,290 183,716 (63.265) 120,451 45,493 Donatlons above Include Restrlcted Donatlons of £63.266 (2024: £793). Project Income deferred at 1 April 2024 Project income receivable in the year Project Income deferred at 31 March 2025 249,646 14,396,102 1263,048) 142,749 13,220,734 (249,646) 14,382,700 13,113.837 Analysls of Income Project income for charitable services provided Donations Investment income Profit from Sale of fixed asset 14,382,700 120,451 94,886 13.113.837 45.493 48.183 121.394 14,598,037 13,328,907 Project Income Is analysed as follows: Soclal Care & IncluslonlEnablement Young People & Familiesl Engagement Central Services 11.861,341 2,517.254 4.105 9,735,027 3,339,342 39,468 14.382,700 13,113,837 Project income is derived from various funding sources including Liverpool, Sefton, Knowsley. Wirral, St Helens. Denbighshire and Flintshire Local Authorities. Page 31 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 ANALYSIS OF INCOME (continued) Restricted Grants within Project Income 2025 2024 Liverpool City Council Others Comic Relief Lindbury Trust 89,413 86.079 44,707 62,515 67,600 13,750 55.000 230,492 188.572 ANALYSIS OF EXPENDITURE Staff costs Other costs Depreciation 2025 2024 Direct charitable expenditure Governance costs 12,249,600 2,088,576 46,757 12,732 14,350,908 13,069,761 46,757 75,395 12,249.600 2,135.333 12,732 14,397,665 13,145,156 Stsff costs Other costs Depreciation 2024 2023 Direct charitable expenditure Governance costs 11,156,046 1,886,741 75,395 26,974 13.069,761 12.730.485 75.395 88.455 11,156,046 1,962,136 26,974 13,145,156 12.818,940 Within Direct charitable expenditure other costs represents all direcl and indirect charitable activity costs covering the various projects operated by the Charity and certain support costs. Support costs covering Managemenl. Finance. IT support and HR including ancillary costs amount to £825,417 {2024- £1.846,891), which includes fundraising and business development costs of £179,952 (2024: £102,554). Govemance costs relate to the general running of the Charity. They include external audit costs and costs associated with constitutional and statutory requirements. The audit fee for the year amounted to £17,750 (2024: £16,875). Page 32 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 Governance Costs 2025 2024 Professional & Legal Auditors. remuneration - statutory audit 29,007 17,750 58,520 16,875 Governance costs at 31 March 2025 46,757 75,395 Contained within Restricted Expenditure are the following costs: Restrlct•d 2025 Restricted 2024 Salaries and on costs Maintenancelrepairs Office expenses Telephonelinternet Equipment Insurance Travel Sundry expenses Utilities Community Empowerment Fund 258,519 146.231 6,356 221 2,627 12 313 15.365 19,059 412 789 1,460 1,003 926 21,284 5,481 20.050 309,924 190.184 The following amounts are included in expenditure: 2025 2024 Depreciation Operating Lease rentals.. Land & Buildings Other Auditors Remuneration - statutory audit Auditors Remuneration - other services 12,732 26,974 269,283 1,174 17,750 215,847 2.034 16.875 Page 33 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 INTEREST RECEIVABLE 2025 2024 Other interest receivable and similar income - unreslricted 94,886 48.183 EMPLOYEES Staff costs during the year were as follows.. 2025 2024 Wages and salaries Social security costs other pension costs 11,145,455 10,156,950 874.256 779,106 229.889 219,990 12,249.600 11,1 S6,046 Wages and sa18ry costs above Include redundancy payments of £54,781 {2024: £NII) The average number of employe8s during the year was 553 (2024: 531). 2025 Number 2024 Number Project staff Fundraising and publicty Management and administration of the charity $49 527 553 531 The emoluments of higher-paid employees fell within the following ranges: 2025 Number 2024 Number £60,001 to £70,000 £70.001 to £80,000 £80.001 to £90.000 During the year there were three higher paid employees (2024- three higher paid employees). Page 34 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 EMPLOYEES (continued) During the year, the following amounts were paid to money purchase pension Schemes in respect of higher paid employees- 2025 2024 Pension contributions to money purchase schemes 20,924 21,228 TRANSACTIONS wrfH TRUSTEES AND OTHER RELATED PARTIES None of the trustees or any person connected with them received any remuneration or benefits from the Charity during the current or previous year. No Travel expenses were reimbursed to any trustees, (2024: £NIL) during the year. Trustees donated £- in the year (2024.. £1,586). There were no other related party transactions in the year. REMUNERATION OF KEY MANAGEMENT PERSONNEL The trustees have delegated much ofthe dayto day running of the Charity to a numberof key management personnel. The execution of a clear and transfomiative vision for leadership from 2021 resulted in the restructuring of the senior management team and associated costs. The total remuneration, including employers, pension contributions, employers, national insurance contributions and salary sacrifice pension contributions for key management personnel in the year totalled £262,449 (2024.. £255,351). INDEMNITY INSURANCE The Charity purchases Directors and Officers Liability Insurance. The cost of the premium in the year was £2.352 (2024.. £2.352). Page 35 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 TANGIBLE FIXED ASSETS Fixtures, equipment. fittings & ompuler software Freehold land and buildings Motor Vehicles Total Cost At 1 April 2024 Disposals 264,137 10,699 50,370 325,206 At 31 March 2025 264,137 10,699 50,370 325,206 Depreciation At 1 April 2024 Provided in the year Eliminated on disposals 33.507 5,280 10.699 28,652 7,452 72.858 12,732 At 31 March 2025 38,787 10,699 36,104 85,590 Net book amount At 31 March 2025 225,350 14,266 239,616 Net book amount At 31 March 2024 230.630 21,718 252.348 Freehold buildings are included in the financial statements at deemed cost and are depreciated at the rate The sale of the Scotland Road site was completed in December 2023 and the financial impact of this transaction was fully reflected in the 2023124 financial statements. No income or asset balances relating to this sale are included in the 2024125 accounts. Freehold land is not depreciated. Assets under construction are included within Fixed Assets with depreciation commencing once the asset is brought into use. All tangible fixed assets were used for charitable purposes. Page 36 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 DEBTORS 2025 2024 Accrued income Trade debtors Other debtors Prepayments 401,693 910,412 16,677 154,982 432.399 720,532 19,167 124,105 1,483,764 1,296.203 10 CURRENT ASSET INVESTMENTS 2025 2024 Cash held on deposit 420,427 During the year, the charity reassessed the classification of its 954ay notice account. While previously included within cash and cash equivalents. the account has been reclassified as a current asset investment to better reflect its restricled liquidity. The prior year figures have not been restated as the previous treatment was consistent with the accounting policy and judgement applied at that time. 11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2025 2024 Trade creditors Other creditors Social security and other taxes Accwals Deferred income 92,100 69,441 158,764 667,444 326,314 94,955 164,409 165,153 639,955 249,646 1,314,063 1.314,118 Included wilhin other Creditors is an amount of £Nil (2024: £100,000) owing in respect of a historical payment on account for Homecare provision from Liverpool City council. Page 37 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 12 PROVISION FOR LIABILITIES 2025 2024 Balance at 1 April Increased Utilised Balance 31 March 46,100 5,000 41,100 5,500 500 46,100 51,100 The above provision relates to dilapidations Ihat have be8n provided for in relation to making good upon vacation of leased property. These are reviewed annually. 13 FUNDS Revaluatlon Reserv• Restrfcted Unrestrl¢ted funds funds Total At 1 April 2024 Incoming resour￿$ Resources expended ReseNe transfer 88.673 2,431,255 2,519,928 309,106 14,288,931 14,598,037 (309,924) {14,087,741) {14,397,665) (56,525) 56,525 Al 31 March 2025 31.330 2,288,970 2,720,300 At 1 April 2023 Incoming resources Resources expended Reserve transfer 653,215 89.492 1,593.470 2,336,177 189,365 13,139,542 13,328,907 (190,184} (12,954,972} (13,145,156) 653,215 (653.215) At 31 March 2024 88,673 2,431.255 2.519,928 Unrestricted Funds include Designated Funds of £1,250,000 (2024: £1.250,000). Page 38 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 Designated Funds Balance April 2024 Transfers in the year Expenditure Transfers at Balance year end March 2025 Impact & Innovation Workforce Resilience Accommodation & Development Fund Premises Fund 50,000 200,000 25,000 {200,000) 75,000 1,000,000 (1,000,000) 1,175,000) 1,175,000 1,250,000 1,250,000 During the year. the Trustees reviewed the charity's strategic priorities and determined that the previously designated funds for Workforce Resilience {£200.000) and Accommodation & Development {£1,000,000) should be consolidated into a new Premises Fund. This reflects the charity's evolving focus on securing and developing a long-term community-facing headquarters and improved accommodation infrastructure. Subsequent to the year-end, the charity entered into an agreement to purchase a property to support future service delivery. The Impact & Innovation Fund (£50.0001 was increased to £75.000 to support pilot initiatives aligned with the charity's mission. These reclassifications do not represenl a change in the overall level of designated reserves but ensure alignment with current strategic objectives. There was no requirement to draw from Designated Reserves in 2024125. Restricted Funds Balance April 2024 Income Expenditure Transfer Balance March 2025 Donations Aims 2 Other 78,614 93,511 136,981 (78.614) (93.511) {137,799) (56.525) 31,330 57,343 31,330 88,673 309,106 {309,924) (56,525) 31,330 Balance April 2023 Income Expenditure Transfer Balance March 2024 Donations Aims 2 Comic Relief Other 793 100,164 (793) (68,834) (76,778) (43,779) 31,330 76,778 12,714 88,408 57,343 89,492 189,365 (190,184) 88,673 The Charity works with funders to enable specific projects to be delivered. These Restricted funds are then used to support the running ¢osts and delivery of the projects. Page 39 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 The AIMS 2 fund includes income from the Lindbury Trust to supporl our AIMS Mentoring service. This enables us to flexibly meet challenges in this area and deploy these resources when and where they are needed. Olher funds include income from LCC funding support for victims of domestic violence. During the year, a net Iransfer of £56,525 was made from restricted lo unrestricted funds. Of this amount £57,343 related to carers project funding where the original restrictions had either been fulfilled or were no longer applicable. Following a review of the expenditure and the nature of Ihe remaining balances, the Trustees determined that the residual funds could be appropriately reclassified as unrestricted. This treatment is consistent with the charity's accounting policy on fund accounting and reflects the Gomplelion of the relevant project activities and obligations. 14 ANALYSIS OF NET ASSETS BETWEEN FUNDS Revaluation Reserve Restricted Unrestricted funds funds Total Tangible Fixed assets Current assets Current liabilities Liabilities over one year 239,616 239,616 3,614,659 3,845,848 (1,165,305) {1,365,164) 231,189 {199.859) Net assets at 31 March 2025 31,330 2,688,970 2,720,300 Tangible Fixed assets Current assets Current liabililies Liabilities over one year 252,348 252,348 3,390,879 3,627,798 (1,211,972) (1,360,218) 236,919 (148,246) Net assets at 31 March 2024 88,673 2,431,255 2.519.928 15 RETIREMENT BENEFITS The Charity operates two defined Contribution pension schemes for the benefit of the employees. The assets of the scheme are administered by Trustees in a fund independent from those of the ¢h8rity. Included in accruals is an amount of £8,504 (2024.. £25,845) owing in respect of the Charity's pension schemes. This liability was paid subsequent to the year end. Page 40 LOCAL SOLUTIONS NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2025 16 OPERATING LEASE COMMITMENTS The company had the following totsl minimum lease payments under non-cancellable operating leases as set out below: Leasehold Leasehold properties properties 2025 2024 Not later than one year Later than one year and not later than five years Greater than fi've years 99,425 129,475 108.787 130.674 228.900 239.461 17 ANALYSIS OF CHANGES IN NEf DEBT The charitable company had no material debt in the year, 18 NON-ADJUSTING POST BALANCE SHEET EVENT Subsequent to the year-end, the charity entered into an agreement to purchase a propety to support future service delivery. As the conditions for the acquisition did not exist at the balance sheet date. this is treated as a non-adjusting post balance sheet event. 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