Brixton Advice Centre - Charities report - 22.2

REGISTERED COMPANY NUMBER: 01893924 (England and Wales)

REGISTERED CHARITY NUMBER: 291484

BRIXTON ADVICE CENTRE

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Page

Reference and administrative details

1

Report of the trustees

2

to

6

Report of the independent auditors

7

to

9

Statement of financial activities

10

Balance sheet

11

Notes to the financial statements

12

to

17

TRUSTEES

W F Taggart

H L Thompson

J Cottage

N Catto

D McCollum

G R J Beaton

D Macloughlin

J L Malbon (resigned 30.3.22)

V Tilakapala (appointed 1.9.21)

L Bertholdi-Saad (appointed 1.9.21)

C J Stanley (appointed 1.9.21) (resigned 20.7.22)

N D Wachman (appointed 30.3.22)

C C Lynch (appointed 27.7.22)

V Srirangam (appointed 7.10.22)

COMPANY SECRETARY

G R J Beaton

REGISTERED OFFICE

167 Railton Road

Herne Hill

London

SE24 OLU

REGISTERED COMPANY NUMBER

01893924 (England and Wales)

REGISTERED CHARITY NUMBER

291484

AUDITORS

Berringers LLP

Lygon House

50 London Road

Bromley

Kent

BR1 3RA

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

The Board of Trustees

The Council of Management for the year 2021-22 comprised eight trustees elected at the AGM held in December 2020, with three additional trustees (Lucas Bertholdi-Saad, Vimal Tilakapala, and Chris Stanley) being co-opted by the Council of Management on 1 September 2021. Jim Malbon sadly stepped down from the CoM on 30 March 2022. Trustees are very grateful to Jim Malbon for his dedicated service to the Centre, particularly in respect of financial matters, and for his willingness to remain on the board throughout the coronavirus pandemic period despite having moved a considerable distance from London almost two years prior to his resignation.

As for the Centre's officers, Josephine Cottage remained as Chair and Ross Beaton remained as Secretary throughout 2021-22. At the AGM held on 15 December 2021, Horace Thompson did not seek re-election as Treasurer. Trustees thanked him for his long service in that role and for his willingness to remain on the board as an ordinary member. Lucas Bertholdi-Saad was duly elected as Treasurer and stated his intention to serve in that role for a limited period until a new trustee with suitable professional experience and a willingness to serve could be found. Nigel Wachman, who has extensive professional experience in high level financial management, was then co-opted on to the Council of Management on 30 March 2022. Nigel Wachman was subsequently elected as Treasurer on 30 June 2022 and has been closely involved in the preparation of these accounts.

The Memorandum and Articles of Association allow for up to twelve trustees and the Council of Management is continuing its recruitment process in order to strengthen its numbers and range of expertise, and to broaden its representation as to better reflect the community the Centre serves.

The Council of Management met on a monthly basis during the year and also held an Annual General Meeting, as well as an Extraordinary General Meeting on 1 September 2021 which retrospectively approved the use of online means for the 2020 AGM given the coronavirus situation at that time. It also held occasional ad hoc meetings online, which were well attended, to deal with specific issues as required.

The AGM on 15 December 2021 was held during a period of heightened concern but limited public health guidance in respect of coronavirus. It was held at the Centre with attendees wearing masks and those who could not attend in person reminded of the availability of proxy voting if required. While attendance at that AGM was sparse given the circumstances, it was quorate, and the necessary business was duly transacted.

Objectives and Aims

The principal objectives of the Brixton Advice Centre (the Centre) are to promote access to justice by providing good quality legal advice, assistance and representation to people who would otherwise be unable to afford legal services.

The full statement on the Centre's Vision, Mission and Values is publicly available on its website: https://brixtonadvice.org.uk/serving-the-community-since-1966/

The Centre continues to adapt and to improve and, wherever possible, expand and diversify the services provided. The coronavirus pandemic continued to present challenges throughout this period but, as in 2020-21, the Centre continued to provide its services to the public. The existing open-door drop-in service provided a service between 10am and 12pm Monday to Thursday alongside a public advice line, 10am to 3pm Monday to Thursday. People were also seen by prior appointment where appropriate including outside these hours, five days a week. The Centre also expanded its 'online forms' initiative, which allows it to take self-referrals directly from members of the public or other bodies assisting them e.g. health professionals. In addition, the Centre provided outreach services at a number of locations, including Norwood and Brixton Food Bank.

Throughout the year staff collected necessary statistical information relating to clients that was then collated to allow further analysis. This included detail on the numbers of clients assisted, demographic information, and the nature of the enquiries. This was used for internal monitoring and service planning, and compliance with funder requirements. It is of note that the data demonstrated that clients now no longer come mainly from the local Brixton area but from across the borough.

Public benefit

The Trustees consider that the objectives and activities of the Centre provides public benefit within the meaning and terms of the Charity Commission.

Volunteers

The Centre continued to enjoy the support of a range of volunteers who assisted with the day-to-day administration of the charity, and the delivery of advice services. It provided many with appropriate opportunities to increase their employability prospects and, in particular, further advance the careers of some in the legal profession and other areas connected with legal rights and remedies e.g., public policy. The Trustees considered it important to provide opportunities for volunteers who are seeking to return to, or secure, employment, particularly local people.

After obtaining very welcome funding from the Walcot Foundation for a Volunteer Co-ordinator post, the Centre continued to develop its volunteering plans and ambitions in order to maximise these opportunities and to increase the scope of its support for the community.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

We are pleased to report that the Centre dealt with 2,892 new advice matters in the reporting year, in addition to the existing casework on a large number of ongoing cases. Staff secured significant financial gain for clients in respect of resolving welfare benefits, debt and housing issues that, in turn, provided positive economic impacts on the local community. Other areas of legal advice offered by the Centre have also had a significant impact locally, including the advice offered through our award-winning Online Legal Clinic, which is provided pro bono by volunteer solicitors and barristers in areas of law in which the Centre is not directly funded to work, such as Employment, Contract law, Family law and Criminal law.

The Centre has throughout the year continued its long-established tradition of partnership working with others to ensure as strong an advice service as possible is delivered in the borough, which includes acting as lead partner in an ongoing City Bridge Trust-funded partnership providing expert advice and support at food banks in and around the borough with Centre 70.

The staff and volunteers worked hard to review the systems and procedures needed to maintain compliance with the various quality standards to which the Centre adheres, including the Law Society's Lexcel practice management standard. Their achievement was recognised by Council of Management with a vote of thanks recorded at the meeting held at the year-end and we are also happy to record it here.

FINANCIAL REVIEW

Financial position

Details of the financial transactions of the Centre are given in the accounts. The grant from the London Borough of Lambeth continues to be a crucial source of core funding, which for the year ended 31 March 2022 was decreased to £102,000 of which £20,000 related to additional Covid-19 support. Other notable funding that included essential contributions to the core running costs of the Centre were City Bridge Trust (£25,906), Community Justice Fund (£25,000), Walcot Foundation (£24,749) and Trust for London (£20,000).

On the Unrestricted Fund, total income of £109,834 was received and expenses for the Centre amounted to £189,949 which leaves a deficit of £75,115 for the year. The reserves are considered sufficient to allow the charity to meet its current and future objectives. The total Unrestricted Funds to be carried forward is £390,988.

The Centre is exempt from taxation under the provisions relating to charities.

The Centre continues to exercise especial care in respect of cash-flow and this is subject to regular ongoing monitoring and remains a high management priority.

Despite maintaining comparable service levels to the previous year, and in some areas actually expanding provision e.g. in Welfare Benefits, the Centre was disappointed not to have been able to raise as much funding this year as it had succeeded in raising during the COVID pandemic. The Centre continues to investigate and vigorously pursue additional sources of funding with a view to ensuring it is able to continue offering its services at current levels and future financial sustainability more generally.

Principal funding sources

The principal funding sources of the Centre continues to be the London Borough of Lambeth, the Legal Aid Agency, The City Bridge Trust, Trust for London and the Walcot Foundation. The Centre also received very welcome support from the Community Justice Fund. We record our gratitude to them all.

Reserves policy

As part of our Reserves Policy, the Trustees aim to increase the reserves held by the Centre to a point where the net current assets are at least equal to 6 months expenditure, in order to enable the Centre to weather any possible reductions or changes in funding levels, reflecting the overall possible future reductions in public expenditure.

FUTURE PLANS

The Centre continued its outreach work, which included providing advice sessions at local foodbanks and other venues around the borough. This work was funded by City Bridge Trust.

The Centre has significantly developed its volunteering policy by recruiting people new to the advice sector, so increasing the number of trained advisors in the sector and developing more opportunities for paid employment. The Centre's Strategic Plan, together with the fundraising strategy, was reviewed and developed to reflect this.

With new funding from Trust for London, the Centre has been able to pilot a new approach to advice delivery in the borough building on the Online Legal Clinic delivery platform. The Centre now provides Trust for London funded advice to persons experiencing housing issues in the private rented sector using the Online Legal Clinic as the delivery platform alongside the pro bono offering already being delivered. The Centre anticipates expanding this model into other areas of law, such as Employment and Family legal matters in the future.

Responding to the notable increase in demand the Centre has expanded its Welfare Benefits service during the period, with the addition of extra paid staff and wraparound support via volunteers.

As well as working closely with the foodbanks in Lambeth, the Centre also continues to collaborate with Lambeth Larder, an innovative local initiative originally funded by Lambeth Council. The Centre is keen to develop further partnerships, particularly within the community, in order to ensure the services it provides are properly representative of the need that the community requires and the issues it is facing.

The Council of Management wishes to record its thanks to the funding bodies and their staff for their support throughout the second year of the coronavirus pandemic.

Following a long history at 165-167 Railton Road, Brixton, the Council of Management have resolved that the Centre could deliver its services more effectively from an alternative location, yet to be determined. Trustees have reflected carefully on the suitability of the Centre's present premises over recent years. They have come to the conclusion that they are unsuitable to meet reasonable access requirements for clients, staff, or volunteers with mobility issues and that the cost of converting the existing building, which was originally largely built for residential use and is in the heart of what is now an overwhelmingly residential area, would be prohibitive. Furthermore, as noted above, analysis of data on service use now shows that clients come from all over Lambeth, so that it would be preferable to have premises in a location which is accessible from across the borough (Railton Road now only has a somewhat infrequent bus service on a single route). The process of selling the existing premises and seeking more suitable premises is ongoing. Trustees are thankful to Petermans estate agency for their ongoing assistance with this.

Staffing

The Council of Management also places on record its recognition of the massive contribution made by our Chief Executive Officer who has adapted the Centre to the unforeseen and challenging circumstances of the Pandemic, and guided and managed the staff and volunteers in these exceptional times. The Council of Management also acknowledges the dedication of the staff team during the year: Angell Day, Simone Samuel, Harriet Thomas, Robert Taylor, Pete Elliott, James Liptrot, Leoney Jackson, Amarpreet Kaur and Sekayi Stara. Finally, the Council of Management would like to offer its sincere thanks to the large numbers of volunteers who have assisted with various Centre operations throughout the year: sixteen of whom volunteered their time pro bono supporting the Online Legal Clinic service and nineteen others who were recruited and trained and who went on to support core services, and in particular the delivery of Welfare Benefits advice, including Ayaz Manji, Ellis Thomas, Luciann Flynn and Samantha Ruston.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Brixton Advice Centre was incorporated on 8 March 1985 as a company limited by guarantee and was registered as a charity on 18 April 1985. It is therefore governed by a memorandum and articles of association.

Recruitment and appointment of new trustees

The Centre is controlled by Trustees who are elected to the Council of Management at the Annual General Meeting. Trustees are recruited through advertisements and word of mouth, with particular emphasis on the need to reflect the local community. All directors of the company are also trustees of the charity, and there are no other trustees. All the trustees named served at some point during the year apart from those trustees appointed after the year end. The Council of Management has the power to appoint additional trustees as it considers appropriate to do so. Once a new trustee has been appointed by the Council of Management they are inducted by the Chief Executive with the assistance of the Officers of the Council of Management. All prospective trustees must agree to the Centre's Trustee Code of Conduct before being accepted as a Trustee of the Centre.

Organisational structure

The Centre is organised so that the Council of Management meets regularly to manage its affairs. The Centre has a full-time Chief Executive who is accountable to the Council of Management and who manages the day-to-day administration of the charity.

Key management remuneration

2022

2021

£

£

Key management compensation

54,958

54,967

Risk management

The Council of Management regularly reviews the major risks the charity faces and has agreed that it will continue its efforts to increase reserves to the equivalent of 6 months running costs so as to ensure it has a reasonable level of resources in the advent of unforeseen circumstances. The Council of Management has also examined other operational and business risks faced by the charity and confirms they have established systems to mitigate the significant risk.

The Council of Management always seeks to ensure it reflects a range of skills and experience sufficient to oversee the running of the organisation.

The finance sub-committee continues to oversee detailed financial management issues. Day-to-day management of the Centre is devolved to the Chief Executive, who reports directly to the Council of Management and provides it with written and verbal reports as appropriate at each meeting. The Chief Executive also advises the sub-committees. There are agreed terms of reference for the Council of Management and a small number of sub-committees dealing with specific matters other than finance. Experienced trustees and the Chief Executive have given extensive time and effort to the induction of new trustees.

Every member of the Centre undertakes to contribute an amount not exceeding twenty-five pence in the event of winding-up of the Centre whilst they are a member or, within one year after their membership has ceased.

TRUSTEES' RESPONSIBILITY STATEMENT

The trustees (who are also the directors of Brixton Advice Centre for the purposes of company law) are responsible for preparing the Report of the trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charity SORP;

-	make judgements and estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

In so far as the trustees are aware:

-	there is no relevant audit information of which the charitable company's auditors are unaware; and

-	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 auditors are aware of that information.

AUDITORS

The auditors, Berringers LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 30 November 2022 and signed on its behalf by:

G R J Beaton - Trustee

Opinion

We have audited the financial statements of Brixton Advice Centre (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of financial activities, the Balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly 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 International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the trustees has 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 misstatements in the Report of the trustees.

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

-	adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of trustees' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic report or in preparing the Report of the trustees.

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the independent auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

- the nature of the industry, control environment and business performance;

- results of our enquiries to management about their own assessment of the risks of fraud and error;

- the matters discussed among the audit engagement team regarding how and where fraud may occur in the financial statements and any potential indicators of fraud.

Our procedures to respond to risk include the following:

- reviewing the financial statement disclosures and testing to supporting documentation;

- performing analytical procedures to identify any unusual or unexpected areas that may indicate risks of material misstatement due to fraud or error;

- addressing the risk of fraud and error through management override of controls, testing the appropriateness of journals, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Allan BSocSc FCA (Senior Statutory Auditor)

for and on behalf of Berringers LLP

Lygon House

50 London Road

Bromley

Kent

BR1 3RA

30 November 2022

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

6,559

-

6,559

5,922

Charitable activities

Provision of legal advice

103,236

102,166

205,402

342,834

Investment income

2

39

-

39

109

Total

109,834

102,166

212,000

348,865

EXPENDITURE ON

Charitable activities

4

Provision of legal advice

184,949

102,166

287,115

304,082

NET INCOME/(EXPENDITURE)

(75,115

)

-

(75,115

)

44,783

RECONCILIATION OF FUNDS

Total funds brought forward

466,103

-

466,103

421,320

TOTAL FUNDS CARRIED FORWARD

390,988

-

390,988

466,103

2022

2021

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

8

389,446

-

389,446

393,411

CURRENT ASSETS

Debtors

9

17,205

-

17,205

76,585

Cash at bank and in hand

148,092

-

148,092

188,586

165,297

-

165,297

265,171

CREDITORS

Amounts falling due within one year

10

(128,906

)

-

(128,906

)

(149,483

)

NET CURRENT ASSETS

36,391

-

36,391

115,688

TOTAL ASSETS LESS CURRENT LIABILITIES

425,837

-

425,837

509,099

CREDITORS

Amounts falling due after more than one year

11

(34,849

)

-

(34,849

)

(42,996

)

NET ASSETS

390,988

-

390,988

466,103

FUNDS

13

Unrestricted funds

390,988

466,103

TOTAL FUNDS

390,988

466,103

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 30 November 2022 and were signed on its behalf by:

G R J Beaton - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements 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 assets 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. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

Income

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

Expenditure

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

Governance costs

Governance expenditure includes all expenditure not directly related to the charitable activity or fund raising ventures. This includes costs of legal, professional and audit fees.

Tangible fixed assets

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

Freehold property

-

0 - 10% on cost

Fixtures and fittings

-

25% on cost and 20% on cost

Assets are reviewed regularly for impairment and the residual value confirmed and no adjustment deemed necessary.

Taxation

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

Fund accounting

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

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

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The Centre participates in a stake holder pension scheme and contributes 4% for each participating employee.

2.	INVESTMENT INCOME

2022

2021

£

£

Deposit account interest

39

109

3.	INCOME FROM CHARITABLE ACTIVITIES

2022

2021

Activity

£

£

Grants

Provision of legal advice

229,166

344,259

Legal Aid & advice

Provision of legal advice

(23,764

)

(1,425

)

205,402

342,834

Brixton Advice Centre is in partnership with Centre 70. As the lead applicant they receive funds on behalf of Centre 70 and pass them on. The usual accounting policy is to account as income the net amount received. This was applied to the grant received from The National Lottery Community Fund.

2022

2021

£

£

Amount received from The National Lottery Community Fund

-

81,225

Amount paid to Centre 70

-

40,013

Amount recognised as income

-

41,212

At the request of City Bridge Trust, the amount received from them is accounted for by including the total receipt in income and the amount paid to Centre 70 as an expense.

2022

2021

£

£

Amount received from City Bridge Trust

51,600

61,000

Amount paid to Centre 70

25,694

33,462

Amount relating to Brixton Advice Centre

25,906

27,538

Without this adjustment the grants received figures would be £203,472 for 2022 (2021: £310,797).

Grants received, included in the above, are as follows:

2022

2021

£

£

Lambeth Borough Council

102,000

127,000

City Bridge

51,600

61,000

Access to Justice

25,000

38,194

The National Lottery Community Fund

-

41,212

Carried forward

178,600

267,406

2022

2021

£

£

Brought forward

178,600

267,406

Trust for London

20,000

20,870

Walcot Foundation

24,749

17,276

Toynbee Hall

5,817

38,707

229,166

344,259

4.	CHARITABLE ACTIVITIES COSTS

Direct

Support

Costs

costs

Totals

£

£

£

Provision of legal advice

282,115

5,000

287,115

5.	NET INCOME/(EXPENDITURE)

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

2022

2021

£

£

Auditors' remuneration

5,000

4,950

Depreciation - owned assets

9,623

9,003

Hire of plant and machinery

2,516

2,550

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.

7.	STAFF COSTS

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

2022

2021

Advice Services

6

6

Administration

1

1

7

7

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

8.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

property

fittings

Totals

£

£

£

COST

At 1 April 2021

505,056

30,622

535,678

Additions

3,617

2,041

5,658

At 31 March 2022

508,673

32,663

541,336

DEPRECIATION

At 1 April 2021

117,559

24,708

142,267

Charge for year

7,064

2,559

9,623

At 31 March 2022

124,623

27,267

151,890

NET BOOK VALUE

At 31 March 2022

384,050

5,396

389,446

At 31 March 2021

387,497

5,914

393,411

The Freehold property was previously considered restricted as per the terms of the Big Lottery Grant (now known as The National Lottery Community Fund) that was granted to purchase and refurbish the property. In 2019 The National Lottery Community Fund approved a policy decision to reduce the Asset Liability Periods for historic grant agreements and the Asset Liability Period under the grant agreement for this property expired on 24 November 2009. The National Lottery Community Fund confirmed the Centre is released from the restriction.

9.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

VAT

420

6,302

Prepayments and accrued income

16,785

70,283

17,205

76,585

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts (see note 12)

9,780

7,003

Trade creditors

842

17,645

Social security and other taxes

3,950

5,619

Other creditors

175

7,500

Client monies

24,715

55,995

Deferred income

24,749

-

Accrued expenses

64,695

55,721

128,906

149,483

11.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans (see note 12)

34,849

42,996

12.

LOANS

An analysis of the maturity of loans is given below:

2022

2021

£

£

Amounts falling due within one year on demand:

Bank loans

9,780

7,003

Amounts falling between one and two years:

Bank loans - 1-2 years

9,970

9,803

Amounts falling due between two and five years:

Bank loans - 2-5 years

24,879

33,193

13.	MOVEMENT IN FUNDS

Net

movement

At

At 1.4.21

in funds

31.3.22

£

£

£

Unrestricted funds

General fund

466,103

(75,115

)

390,988

TOTAL FUNDS

466,103

(75,115

)

390,988

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

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

109,834

(184,949

)

(75,115

)

Restricted funds

City Bridge

51,600

(51,600

)

-

Toynbee Hall

5,817

(5,817

)

-

Trust for London

20,000

(20,000

)

-

Walcot Foundation

24,749

(24,749

)

-

102,166

(102,166

)

-

TOTAL FUNDS

212,000

(287,115

)

(75,115

)