Charity registration number SC032226 (Scotland)
Company registration number SC217688 (Scotland)
DUNDEE NORTH LAW CENTRE
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
DUNDEE NORTH LAW CENTRE
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
M Stewart
D Miller
D Dorward
J Rose-Hamilton
G Bruce
H Davidson
Principal solicitor
Kenneth Marshall
Secretary
Thorntons Law LLP
Charity number (Scotland)
SC032226
Company number
SC217688
Registered office
163 Albert Street
Dundee
DD46PX
Independent examiner
Findlays Chartered Accountants
11 Dudhope Terrace
Dundee
Scotland
DD3 6TS
Bankers
Royal Bank of Scotland
3 High Street
Dundee
DD1 9LY
DUNDEE NORTH LAW CENTRE
CONTENTS
Page
Trustees' report
1 - 8
Independent examiner's report
9
Statement of financial activities
10 - 11
Balance sheet
12 - 13
Notes to the financial statements
14 - 25
DUNDEE NORTH LAW CENTRE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The trustees present their annual report and financial statements for the year ended 31 March 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's articles of association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

 

Principal activity

 

The Principal activity of the charity is the provision of free legal advice within areas of poverty in the City of Dundee.

 

The Law Centre also provides a legal advice service at Perth Prison to help sustain tenancies for short and medium term prisoners. Since the pandemic, this service is being provided on a remote basis and appears to be working well but this will be kept under continuous review.

 

Dundee Law Centre is constantly reviewing its service delivery with the core principles of access to justice underpinning everything that it does. For example the Law Centre leaflets contain an Equalities Statement and a clear Mission Statement. Each new client also receives a Terms and Conditions of Engagement letter.

 

 

Aims and objectives

 

 

ACHIEVEMENTS AND PERFORMANCE

 

The COVID pandemic has had long lasting effects on court and tribunal procedures, permanent changes to which have been telescoped during the pandemic from what otherwise might have taken decades to implement. Most of our court hearings are now dealt with by video conference (using the Scottish Courts’ preferred Webex system) or “administratively”, which means that all parties to the action make a submission in writing to the court and the Sheriff decides the matter without an oral hearing. I should say that opposed eviction orders are never dealt with without an oral hearing and sometimes a civil trial (known as a “proof”) is fixed at which evidence is heard from witnesses. Likewise, many Housing Tribunals, which used to be dealt with as face to face hearings, are now held by telephone conference, and even social security appeal tribunals are sometimes telephone hearings. If the social security appeal relates to an appellant’s health, then they are normally face to face hearings. However, the new Scottish Social Security appeal tribunals are, at the moment, being held by telephone only, although they are still in the process of setting up hearing venues throughout Scotland, so it might be that there will be face to face hearings offered to appellants in the future. 

DUNDEE NORTH LAW CENTRE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The Scottish Government’s eviction ban, referred to in the 2022-23 report, was extended until 31 March 2024. The extension was not renewed, so the ban is over. However, a significant change to the law regarding private sector evictions, introduced during the covid restrictions pandemic and the “cost of living crisis” (which has not gone away) and which had been temporary, has now been made permanent. That change is to the effect that in virtually all private sector evictions, not only must the landlord establish a ground for eviction (for instance, rent arrears; that the landlord wants to sell it; or the tenant has acted in an antisocial manner) the landlord must also prove to the tribunal that it would be reasonable to grant the eviction order. That is a big change to private sector tenancy law because there were, previously, several grounds which, if established, would leave a tribunal with no option but to make an order for eviction. “Reasonableness” involves the tribunal weighing the effect on both the tenant and the landlord of either granting or not granting an eviction order - to the chagrin of some landlords and their agents.  

 

As was anticipated after the increase in interest rates over the last couple of years, evictions on the ground of mortgage default have increased significantly. There are now several mortgage eviction cases calling in the Sheriff Court weekly, after years of almost none. The Law Centre represents clients who are either the borrower who is in mortgage default (or sometimes the ex-partner of the borrower after the borrower has moved out) or who are the tenant of a landlord who has had to give up possession of the house to the landlord’s mortgage lender. This area of law is complex both in substance and procedurally. But there is much that can be done to prevent eviction or ease the process of moving out and getting re-housed. 

 

In the field of Social Security law, more and more benefits are now being dealt with by Social Security Scotland. We are finding that Social Security Scotland tends to be more generous towards applicants in its decisions in relation to disability benefits than were the DWP. That has resulted in fewer Social Security appeals. 

  

It is clear that the need for advice, assistance and representation in our main areas of legal expertise (i.e., housing, debt, and social security) shows no sign of decline. The cost-of-living crisis, which affects our client demographic the most, means that there are many Dundee citizens who require such protection or entitlement as the law can give them. In Scotland, that is substantial, but it needs lawyers who can help vindicate these rights - in courts and tribunals, if necessary. 

 

The investment that the Board made to upgrade its IT and software during Covid has resulted in a much more flexible and responsive approach being available to staff and clients alike.

The development work undertaken during the implementation of the client management system enabled us to review our systems, processes and documentation to ensure compliance with best client practice, GDPR and regulation which will put the Law Centre in good stance for future audit and standards reviews.

 

The client management system continues to be developed to improve operational systems and processes. Management information can now be produced for management, Board and funder reporting purposes.

 

On 1 July 2021, the Law Centre relocated to new offices at 163 Albert Street, Dundee DD4 6PX. The offices were originally sublet from Brooksbank, an Advice Service Charity, who are one of our Third Sector partners. In April 2022 it was agreed that Brooksbank would be removed from the lease and the Law Centre would lease the ground floor offices along with a further 4 rooms on the first floor directly from the landlord. The offices at Albert Street are ideally located in the heart of Dundee on a busy thoroughfare which is accessible to both staff and clients. The Law Centre received a Community Regeneration grant from Stobswell Forum for the replacement of single glazed windows with double glazing units. This has made a huge difference to the warmth and energy efficiency of the office. There is also excellent access to public transport on the doorstep of the Centre.

 

A new 3 year lease has now been signed off with the landlord giving security of cost and tenure until 31 December 2027.

 

There is no doubt that one of the major impacts of the pandemic on the Law Centre was the reduction in Legal Aid income due to the suspension of court activity. It is pleasing to note that Legal Aid income rose to £170,201 in 2023-24.

DUNDEE NORTH LAW CENTRE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

During 2022-23, the Board successfully applied for three year grant funding totaling £69,000 from the following funders:

 

Robertson Trust £30,000 per annum

Northwood Trust £19,500 per annum

Rank Foundation £20,000 per annum

 

2024-25 is the final year of the above three-year grant funding. A funding tracker has been established and the Chair is working with the Operations Manager to ensure that the Law Centre applies for any appropriate funding that becomes available. Applications have been made to funders during the current year and, although these were not successful, the Board is confident that additional grant funding will be secured for 2025-26 onwards.

 

In June 2022 our application to become a Justice First Fellowship Host employer was approved by the Legal Education Foundation which is a national charity. This provides funding and professional support for the Law Centre to employ a trainee solicitor for 2 years. We were awarded a grant of £94,000 over 2 years to cover the costs of this traineeship including the cost of supervision, IT equipment and training. A trainee solicitor took up their appointment in June 2023 and successfully completed her full professional qualifications in July 2024 and is now contributing fully to the legal work of the Law Centre.

 

During 2022, due to the withdrawal of law accountancy services, a decision was taken to deal with all legal aid applications in house. The Scottish Legal Aid Board provided training to staff within the Law Centre to enable them to effectively deal with submissions in house. This training along with the experience gained from undertaking the submissions process internally, has led to a much greater understanding of the legal aid funding process and we are now able to maximise the amount of legal aid paid for individual cases.

 

Since the appointment of the current Principal Solicitor, the Law Centre is now applying for and being awarded full legal aid in respect of a number of cases. This has enabled the Centre to recover a greater proportion of the costs of preparing and presenting these cases which is a huge financial benefit to the Law Centre.

The combined impact of these factors has resulted in the growth of legal aid income to £139,000 during 2023/24

 

Client work continues to grow and has picked up considerably since September 2021. This has been further exacerbated by the cost-of-living crisis being faced by people across the City which is throwing even more people into poverty and debt, resulting in them requiring legal advice and support for housing and debt issues.

 

We continue to provide telephone advice services along with interactive website support. During the course of the year the main activities and achievements were as follows:

 

New cases opened during the financial year of 23-24     979

Cases still ongoing from the financial year of 23-24        155

Files closed during the year 23-24                833

Debt Cases opened in financial year 23-24            107

Debt Cases closed in financial year 23-24            93

Benefit Cases opened in financial year 23-24            425

Benefit cases closed in financial year 23-24            386

Housing cases opened in financial year 23-24        433

Housing cases closed in financial year 23-24            342

PIP/DLA/ADP cases opened in financial year 23-24        162

PIP/DLA/ADP cases closed in financial year 23-24        157

Universal Credit issues opened in financial year 23-24        92

Universal Credit issues closed in financial year 23-24        78

Visits in the community during the financial year 23-24        52

Eviction Cases won in financial year 23-24            64

Eviction Cases lost in financial year 23-24            88

 

Total client gains in financial year 23-24            £431,927.09

 

DUNDEE NORTH LAW CENTRE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

Debt Cases

These cases include council tax debt, fuel debt, credit cards, and loans.

Benefit Cases

These cases include any benefit advice from PIP, pension credit, UC (Universal Credit), DHP, ESA, DLA, ADP, and benefit checks.

Eviction Cases

These cases include all cases in relation to evictions from Dundee City Council, Social Landlords, or Private rented properties.

PIP/DLA/ADP

These cases are anything related to Disability Living Allowance.

Universal Credit Issues

These cases are anything related to UC such as UC50 forms, Applications, Reconsiderations, Reviews, overpayments, and appeals against decisions.

 

Total Client Gains

Total client gains are gains clients have received due to benefits being wrong and receiving back-dated money or appeals against decisions of applications to then be proven to be granted. (PIP, ESA, UC, DLA, Pension Credit, ADP, Carers Allowance and Council Tax).

 

Eviction Cases Won

The amount of £37,500 is recorded which would be a rehousing cost for the Landlord DCC under the duty of care regards Homelessness. It is worth noting that we have saved the Local Council £1,647,000 in rehousing costs for these households as they have been able to remain in their property.

 

Our efforts during the past year have focused on a period of regrowth and rebuilding the capacity of the legal team to ensure we can provide a full complement of services. Due to staff turnover in the Legal Team, it has taken time to recruit and train new solicitors. During 2023-24 the Legal Services Team was almost at full complement, however, we are currently advertising for a solicitor to replace a member of staff who is moving to another post.

 

This aside we managed to recruit and build team capacity with Volunteers, Modern Apprenticeships, and cross-training of staff into other teams. The biggest achievement to be noted is the level of Client Gains we have reported. This figure is based on the actual figures of awards that have been won through the appeal process and our legal team representing at tribunals and courts. We documented a high level of successful back-dated claims for benefit appeals which is a great testament to the legal team.

 

The visits in the community relate to our community outreach sessions held across the year. Unfortunately, we were unable to reinstate the full number of sessions across several wards in the city due to financial and resource constraints. Weekly sessions were held at both Kirkton and Whitfield between April and July 2023 and since then outreach sessions are only provided at Kirkton following the withdrawal of the Whitfield site by the landlord.

 

FINANCIAL REVIEW

 

The results for the year are set out in the statement of financial activities and incorporate the income from DNLC LLP; a firm set up to undertake the legal work for Dundee North Law Centre.

 

One of the main sources of income is the annual grant from the Dundee Partnership. In the financial year 2023/24 this was maintained at £150,304, the same as 2022/23.

 

As at 31st March 2024, the charity held total reserves of £132,676 (2023 - £144,781) of which £14,215 (2023 - £10,146) were restricted and could only be used to fund the projects for which they were received. Total unrestricted reserves of £118,461 (2023 - £134,635) were held, of which £nil (2023 - £158) were designated for specific purposes.

DUNDEE NORTH LAW CENTRE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

Going concern

 

The Trustees have no concerns about Dundee North Law Centre continuing as a going concern.

Reserves policy

 

The Trustees are looking to establish a policy to maintain unrestricted funds, which are the free reserves of the company, at a level of at least approximately three months unrestricted expenditure. Based on this year’s unrestricted expenditure, £46,192 would be the amount required compared to the current free reserves of £103,369.

Investment Policy

 

The board of directors has considered the most appropriate policy for investing funds and has found that the operation of a high interest deposit account, meets their requirements to generate income, whilst allowing sufficient flexibility for effective cash flow management. The interest earned in the year has increased during the year due to the recent increase in bank interest rates following a long period of low interest rates.

Risk management

 

The Trustees have assessed the major risks to which the charity is exposed, in particular they have identified that financial sustainability is the major financial risk for the company. A key element is the sourcing of other income out with the legal aid work.

 

Attention has also been focused on non-financial risks. These risks are managed by ensuring the Scottish National Standards are up to date, having robust policies and procedures in place, and regular awareness training for staff working in these operational areas.

 

The last Scottish National Standards compliance audit of Dundee Law Centre was successfully undertaken in 2019/

20. There has been a delay in undertaking the updated audit due to Covid restrictions. In light of operational difficulties experienced during lockdown, it was agreed with the SNSIAP Project Manager that the next audit of Dundee Law Centre would be scheduled for November 2024. This date has now been confirmed and work is now underway to provide the required data in preparation for this review.

 

A full health & safety risk assessment was undertaken for the new offices at 163 Albert Street in conjunction with Fairweather Consulting who provided us with risk management support during 2021. This has been updated to take on board the extension of our offices into the upper floor.

 

A Covid management policy was developed and approved in November 2021 and this is continuously reviewed in line with the latest Scottish Government advice and guidance.

 

Further health & safety training was undertaken by staff in December 2022.

 

Following an extensive review of the current systems and layout of the building in August 2023, the Finance & Operations Manager has updated the Fire Risk assessments to reflect the current position of the building layout and systems. This has resulted in new manual evacuation plans being drawn up and rolled out to all teams. Extra signage and upgrading to lights etc. are underway in conjunction with embedding the newly devised evacuation plans.

 

An independent review of the Risk Assessments and plans was undertaken by the Risk Officer of Dundee City Council and recommendations received were approved for implementation. Croner Health & Safety officers also reviewed the Health & Safety policies currently in place and verbally confirmed that these were in order. A written report is currently awaited.

DUNDEE NORTH LAW CENTRE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
PLANS FOR FUTURE PERIODS

 

Strategy

 

Whilst the aims and objectives of the company will remain the same as in previous years, the delivery of services on an outreach basis have been adapted to reflect both the impact of Covid-19 and the best use of solicitor resources.

 

During 2022 the Board put in place a staffing structure to reflect the changing working arrangements of the Courts and the Law Centre. This has been amended slightly to reflect staff turnover, but the Board are confident that it will fully support the anticipated future workload of the Centre.

 

The Board along with the staff are keen to raise the profile of Dundee Law Centre within the City so that there is greater awareness of the services that the centre provides. This has been partially achieved by the launch of our new website and targeted social media posts, but further work requires to be done.

 

We are already building stronger relationships in the community with our strategic partners which includes referring clients on to other agencies in order that they receive the appropriate specialist advice to suit their needs.

 

We are keen to take a holistic approach to our work that has the client at the centre of everything we do.

 

The Board held a facilitated Strategy Day on 15 February 2022 which was also attended by the Prinicipal Solicitor and the Finance & Operations Manager. The event was very well attended and gave us the opportunity to explore our challenges, risks, strengths and opportunities. This has enabled us to identify our strategic priority themes to take forward for further discussion and preparation of a three year Strategic Plan.

At the Board meeting on Thursday 24 March 2022, the directors agreed the key challenges arising from the Strategy review. Financial sustainability remains one of our main challenges and a key priority going forward. In March 2024 Dundee City Council confirmed that our Dundee Partnership Grant would remain at £150,304 for 2024/25.

 

Following this, a number of potential funding streams and several applications for funding were made to local and national charities during 2022. As noted earlier in this report this has resulted in annual grants totaling £69,500 being secured for the 3 years 2022/23 to 2024/25. Work is currently underway to identify funding opportunities to replace this funding from 2025/26 onwards and applications will be submitted in the forthcoming weeks and months to secure this.

 

The Scottish Courts and HM Courts and Tribunal Service are adapting and there has been considerable investment in technology to enable new ways of working in the future. The investment in new technology and the modernisation of working practices has helped prepare the Law Centre for any forthcoming changes.

 

The Principal Solicitor continues to keep a close eye on the legislation landscape.

 

One director stepped down in July 2023 and another director resigned in December 2023 bringing our total number of directors down to four.

 

During the latter part of 2023 the Board undertook a recruitment campaign to recruit new directors and enhance the skills and expertise within the Board. As a result of this, we successfully appointed two new Board directors bringing our total number of directors to six.

 

The Principal Solicitor and the Board continue to investigate ways to increase the level of legal aid income. At its meeting on 25 June 2024, the Board agreed to arrange a further facilitated event in September 2024 with the proposed outcome of developing a 3 year Strategic Plan which will also consolidate the work undertaken during 2022.

STRUCTURE, GOVERNANCE AND MANAGEMENT

 

Dundee North Law Centre is a company limited by guarantee and a registered charity governed by its Memorandum and Articles of Association.

DUNDEE NORTH LAW CENTRE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

M Stewart
D Miller
D McKaig
(Resigned 31 July 2023)
D Dorward
J Rose-Hamilton
M Allen
(Resigned 22 December 2023)
G Bruce
H Davidson

Recruitment and appointment of trustees

 

Only persons who are appointed as members can become a Trustee and there are currently 6 members (2023 - 5), each of whom agrees to contribute one pound in the event of the company winding up. The appointment of new Trustees is governed by the Memorandum and Articles of Association as far as election is concerned. New Trustees are appointed on an ad hoc basis as and when required. So far as possible Trustees are recruited to represent a broad range of skills and experience to support the governance and management of the Law Centre. Decision making process is by one person, one vote.

Organisational structure

 

The Centre is run by a Board of Trustees. This Board meets on a regular basis, for a minimum of six times a year, to review the Centre’s operations and formulate policy. Day to day management is delegated to the Principal Solicitor and the Operations Manager. There is also a service level agreement in place which sets out the respective roles of management and the Board.

 

The operation and management of the Centre is specified in the Articles of Association. There are no restrictions other than those normally associated with a company limited by guarantee.

 

Staffing

 

There have been a number of staff changes during 2023/24.

 

Kenneth Marshall was appointed as Principal Solicitor on 1 April 2023. Kenneth previously worked with the Law Centre for over 25 years and brings a wealth of experience, knowledge and commitment to the organisation.

 

Jade Duffy was appointed to the post of Finance & Operations Manager on 1 February 2024.

I would like to thank all staff for their valued contribution to the work of the Law Centre.

Trustee induction and training

 

The Trustees have considered a policy on Trustee induction and training prior to new Trustees being approached. The Chair has made up an induction pack which includes the Memorandum and Articles of Association for the Charity, the LLP Agreement, a copy of the previous year’s financial statements, annual report, minutes of Trustee board meetings and a copy of the OSCR Leaflet Guidance for Charity Trustees – Guidance and good practice for Charity Trustees.

 

In addition, our company secretary, Thorntons, provided a briefing paper for new Trustees and this was shared with the recent Trustees prior to their first Board meeting.

 

The trustees' report was approved by the Board of Trustees.

DUNDEE NORTH LAW CENTRE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -

The trustees' report was approved by the Board of Trustees.

M Stewart
Trustee
26 August 2024
DUNDEE NORTH LAW CENTRE
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF DUNDEE NORTH LAW CENTRE
- 9 -

I report on the financial statements of the charity for the year ended 31 March 2024, which are set out on pages 10 to 25.

Respective responsibilities of trustees and examiner

The charity’s trustees, who are also the directors of Dundee North Law Centre for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.

Basis of independent examiner's statement

My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

(a)
which gives me reasonable cause to believe that in any material respect the requirements:
(i)

to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and

(ii)

to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;

have not been met or
(b)

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Lesley Campbell C.A.
Independent Examiner
Findlays Chartered Accountants
11 Dudhope Terrace
Dundee
DD3 6TS
Scotland
Dated: 26 August 2024
DUNDEE NORTH LAW CENTRE
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Current financial year
Unrestricted
Unrestricted
Restricted
Total
Total
funds
funds
funds
general
designated
2024
2024
2024
2024
2023
Notes
£
£
£
£
£
Income from:
Donations and legacies
3
70,188
-
51,603
121,791
118,162
Charitable activities
4
138,948
-
150,304
289,252
263,614
Investments
5
1,387
-
-
1,387
447
Total income
210,523
-
201,907
412,430
382,223
Expenditure on:
Charitable activities
6
184,767
158
239,610
424,535
372,090
Other expenditure
-
-
-
-
1,397
Total expenditure
184,767
158
239,610
424,535
373,487
Net income/(expenditure)
25,756
(158)
(37,703)
(12,105)
8,736
Transfers between funds
(41,772)
-
41,772
-
-
Net movement in funds
(16,016)
(158)
4,069
(12,105)
8,736
Reconciliation of funds:
Fund balances at 1 April 2023
134,477
158
10,146
144,781
136,045
Fund balances at 31 March 2024
118,461
-
14,215
132,676
144,781

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 14 to 25 form part of these financial statements.

DUNDEE NORTH LAW CENTRE
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Prior financial year
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
general
designated
2023
2023
2023
2023
Notes
£
£
£
£
Income from:
Donations and legacies
3
93,162
-
25,000
118,162
Charitable activities
4
113,310
-
150,304
263,614
Investments
5
447
-
-
447
Total income
206,919
-
175,304
382,223
Expenditure on:
Charitable activities
6
162,586
391
209,113
372,090
Other expenditure
-
1,397
-
1,397
Total expenditure
162,586
1,788
209,113
373,487
Net income/(expenditure)
44,333
(1,788)
(33,809)
8,736
Transfers between funds
(43,955)
-
43,955
-
Net movement in funds
378
(1,788)
10,146
8,736
Reconciliation of funds:
Fund balances at 1 April 2022
134,099
1,946
-
136,045
Fund balances at 31 March 2023
134,477
158
10,146
144,781
DUNDEE NORTH LAW CENTRE
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,592
5,944
Current assets
Debtors
12
87,930
48,644
Cash at bank and in hand
65,727
107,558
153,657
156,202
Creditors: amounts falling due within one year
Taxation and social security
5,427
6,693
Other creditors
19,146
10,672
24,573
17,365
Net current assets
129,084
138,837
Total assets less current liabilities
132,676
144,781
Net assets
132,676
144,781
The funds of the charity
Restricted income funds
16
14,215
10,146
Unrestricted funds - general
118,461
134,477
Unrestricted funds - designated
15
-
158
132,676
144,781

The notes on pages 14 to 25 form part of these financial statements.

DUNDEE NORTH LAW CENTRE
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2024
31 March 2024
- 13 -

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the trustees on 26 August 2024
M Stewart
Trustee
Company registration number SC217688 (Scotland)
DUNDEE NORTH LAW CENTRE
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Charity information

Dundee North Law Centre is a private charitable company limited by guarantee incorporated in Scotland. The registered office is 163 Albert Street, Dundee, DD46PX.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's articles of association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.

 

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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 financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated Funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. the purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
DUNDEE NORTH LAW CENTRE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -

Grants including government grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet.

1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
3 years and 5 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7
Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

DUNDEE NORTH LAW CENTRE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10
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 immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Operating Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

DUNDEE NORTH LAW CENTRE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
2
Critical accounting estimates and judgements

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 the revision and future periods where the revision affects both current and future periods.

Critical judgements:
Depreciation

Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence.

 

Fixed assets are also assessed as to whether there are indictors of impairment. This assessment involves consideration of the economic viability of the purpose for which the asset is used.

Valuation of work in progress

Included within the charity's income is an estimate of monies receivable from the Scottish Legal Aid Board in relation to ongoing cases at the year end. A reasonable recovery percentage has been estimated and applied, based on the average recovery rate across the year.

3
Income from donations and legacies
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
Donations and gifts
688
-
688
2,577
-
2,577

Grants receivable for core activities

69,500
51,603
121,103
90,585
25,000
115,585
70,188
51,603
121,791
93,162
25,000
118,162
Grants receivable for core activities
Legal Education Foundation
-
48,003
48,003
-
5,000
5,000
Dundee City Council
-
3,600
3,600
40,000
-
40,000
Robertson Trust
30,000
-
30,000
30,000
-
30,000
Northwood Trust
19,500
-
19,500
19,500
-
19,500
Rank Foundation
-
-
-
-
20,000
20,000
DWP Kickstart
-
-
-
1,085
-
1,085
AB Charitable Trust
20,000
-
20,000
-
-
-
69,500
51,603
121,103
90,585
25,000
115,585
DUNDEE NORTH LAW CENTRE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Income from donations and legacies
(Continued)
- 18 -

Government grants totalling £3,600 (2023 - £41,085) were received in the year and recognised within the charity's income. All government grants were awarded to support the furtherance of the charity's objectives. There are no unfulfilled conditions or other contingencies attached thereto. The charity is also engaged in a partnership agreement with Dundee City Council, known as The Dundee Partnership. During the year, the charity received £150,304 (2023 - £150,304) in respect of services carried out under this agreement; this income is presented within income from charitable activities.

4
Income from charitable activities
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£

Provision of legal advice

138,948
150,304
289,252
113,310
150,304
263,614
5
Income from investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Interest receivable
1,387
447
DUNDEE NORTH LAW CENTRE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
6
Expenditure on charitable activities
2024
2023
£
£
Direct costs
Staff costs
297,331
264,827
Depreciation and impairment
2,848
4,747

Telephone

7,249
7,333

Accountancy

5,102
5,005

Postage, stationery & advertising

3,994
4,960

Bank charges

414
654

Software & IT

17,688
16,840

Sundries

5,189
2,414

Insurance

8,506
7,531

Professional and subscriptions

12,871
10,317

Other staff costs

8,468
13,412

Rent, rates and utilities

47,248
25,073

Repairs & maintenance

3,977
5,477
420,885
368,590
Share of support and governance costs (see note 7)
Governance
3,650
3,500
424,535
372,090
Analysis by fund
Unrestricted funds - general
184,767
162,586
Unrestricted funds - designated
158
391
Restricted funds
239,610
209,113
424,535
372,090
7
Support and governance costs
Governance costs
2024
2023
£
£
£
Independent Examination
3,650
3,650
3,500
3,650
3,650
3,500
Analysed between
Charitable activities
3,650
3,650
3,500

Governance costs includes payments to the independent examiners of £3,650 (2023 - £3,500) for independent examination of the charity's financial statements.

DUNDEE NORTH LAW CENTRE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
8
Trustees

During the year, one (2023 - two) trustees were reimbursed for travel and miscellaneous expenses totalling £30 (2023 - £155).

No Trustees received any remuneration in the year (2023 - £niI).

9
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
Employees
13
11
Employment costs
2024
2023
£
£
Wages and salaries
259,048
233,562
Social security costs
20,770
15,191
Other pension costs
17,513
16,074
297,331
264,827
There were no employees whose annual remuneration was more than £60,000.
Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2024
2023
£
£
Aggregate compensation
85,141
86,003
10
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

DUNDEE NORTH LAW CENTRE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
11
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 April 2023
16,044
Additions
496
At 31 March 2024
16,540
Depreciation and impairment
At 1 April 2023
10,100
Depreciation charged in the year
2,848
At 31 March 2024
12,948
Carrying amount
At 31 March 2024
3,592
At 31 March 2023
5,944
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
77,402
43,472
Prepayments and accrued income
10,528
5,172
87,930
48,644
13
Creditors: amounts falling due within one year
2024
2023
£
£
Other taxation and social security
5,427
6,693
Trade creditors
3,715
3,097
Other creditors
4,098
190
Accruals and deferred income
11,333
7,385
24,573
17,365
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
17,513
16,074
DUNDEE NORTH LAW CENTRE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Retirement benefit schemes
(Continued)
- 22 -

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

15
Unrestricted funds - designated

These are unrestricted funds which have been designated for specific purposes.

At 1 April 2023
Resources expended
At 31 March 2024
£
£
£
Designated
158
(158)
-
Previous year:
At 1 April 2022
Resources expended
At 31 March 2023
£
£
£
Designated
1,946
(1,788)
158
16
Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 April 2023
Incoming resources
Resources expended
Transfers
At 31 March 2024
£
£
£
£
£
Dundee Partnership
-
150,304
(192,076)
41,772
-
Fellowship Fund
5,000
48,003
(38,789)
-
14,214
Rank Foundation
5,146
-
(5,146)
-
-
Employer Recruitment Incentive
-
3,600
(3,600)
-
-
10,146
201,907
(239,610)
41,772
14,215
Previous year:
At 1 April 2022
Incoming resources
Resources expended
Transfers
At 31 March 2023
£
£
£
£
£
Dundee Partnership
-
150,304
(194,259)
43,955
-
Fellowship Fund
-
5,000
-
-
5,000
Rank Foundation
-
20,000
(14,854)
-
5,146
-
175,304
(209,113)
43,955
10,146
DUNDEE NORTH LAW CENTRE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Restricted funds
(Continued)
- 23 -

Purpose of Restricted Funds

 

Dundee Partnership

 

The Dundee Partnership grant is paid to enable the provision of a free legal advice and financial inclusion service for residents of the Community Regeneration areas of Dundee and for a Prison Project, providing financial inclusion support to inmates and their families.

 

Fellowship Grant

 

Monies awarded from the Legal Education Foundation for the training and qualification of a Justice First Fellow.

 

Rank Foundation

 

Funding towards the salary costs of a third solicitor.

 

Employer Recruitment Incentive

 

The Employer Recruitment Incentive is Scottish Government funding, administered by Dundee City Council for newly created jobs or vacancies.

17
Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 April 2023
Incoming resources
Resources expended
Transfers
At 31 March 2024
£
£
£
£
£
Capital fund
158
-
(158)
-
-
General funds
134,319
210,523
(184,609)
(41,772)
118,461
134,477
210,523
(184,767)
(41,772)
118,461
Previous year:
At 1 April 2022
Incoming resources
Resources expended
Transfers
At 31 March 2023
£
£
£
£
£
Capital fund
1,946
-
(1,788)
-
158
General funds
132,153
206,919
(160,798)
(43,955)
134,319
134,099
206,919
(162,586)
(43,955)
134,477

The designated fund contains the capital element of a grant from Foundation Scotland which was used to purchase IT equipment. The balance on the fund has been depreciated over the useful life of the assets.

DUNDEE NORTH LAW CENTRE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
18
Analysis of net assets between funds
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
general
designated
2024
2024
2024
2024
£
£
£
£
At 31 March 2024:
Tangible assets
3,592
-
-
3,592
Current assets/(liabilities)
114,869
-
14,215
129,084
118,461
-
14,215
132,676
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
general
designated
2023
2023
2023
2023
£
£
£
£
At 31 March 2023:
Tangible assets
5,786
158
-
5,944
Current assets/(liabilities)
128,691
-
10,146
138,837
134,477
158
10,146
144,781
19
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the charity for property and equipment.

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
12,901
15,866
Between two and five years
35,437
40,989
48,338
56,855
20
Related party transactions
Transactions with related parties

During the year the charity entered into the following transactions with related parties:

DUNDEE NORTH LAW CENTRE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
20
Related party transactions
(Continued)
- 25 -

Name of related party:
DNLC LLP

 

Nature of related party:
Rebecca Falconer & Kenneth Marshall are designated members of the LLP and senior management of Dundee North Law.

 

Transaction:
DNLC LLP provides the legal services on behalf of Dundee North Law Centre. During the year, DNLC LLP paid management fees of £138,888 (2023 - £113,310) to Dundee North Law Centre and as at the 31st March 2024, there was a balance due from DNLC LLP of £77,402 (2023 - £43,471) included within other debtors.

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