The Trustees, who are also Directors for the purposes of the Companies Act, have pleasure in presenting their report and the financial statements of the charity for the year ended 31 March 2026.
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 governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".
GMIAU is a voluntary organisation supporting people subject to immigration control. We offer free legal immigration advice, representation and support services to people seeking asylum, refugees, and children and adults who are at risk.
Our team of trustees, staff, and volunteers contribute skills, knowledge, and experience which enables us to deliver high quality legal and support services.
GMIAU has a three-year strategic business plan, and a written annual plan which sets out specific activities to be undertaken in each year.
Our mission is to provide high-quality legal representation, support and hope to people experiencing immigration injustice.
Our vision is for equality, compassion and justice for all people facing the challenges of immigration.
Our Values
We Speak Up
We know what's right and what's fair. We are not silent when we see injustice.
We Fight for Justice
We use all the knowledge, expertise and skill we possess in order to succeed.
We See the Whole Person
We recognise the talents, humanity and potential of those who turn to us for help.
We Act with Empathy
We treat people how we'd want to be treated; with kindness, dignity and respect.
We Are Tenacious
We take on difficult cases. And we don’t give up easily.
We Fight for Change
We campaign with others for improvements in immigration law and policy.
Our Objectives
To deliver immigration legal advice and representation to those most in need.
To deliver associated services, if required, to support people we work with.
To deliver strategic and operational partnerships to have greater impact.
To be a credible voice influencing local and national strategies and policies to make immigration practice humane and accessible.
To be an effective, efficient, resilient, sustainable, well-resourced organisation.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The aims of GMIAU are carried out for public benefit. We provide free legal advice, representation, and support to many people who are subject to immigration control, their friends and family, and those who are in poverty. Our achievements listed below show the ways in which we have furthered the aims and objects of the charity. Members of the public can contact us five days a week to seek advice and support. This includes individuals as well as agencies contacting us on behalf of others.
The benefits that arise from the aims of the organisation are as follows:
People get a successful outcome to their legal case. This means that for many they become entitled to work, support themselves independently, and find a way out of poverty. It also means that people can settle into the local community, feel safe and secure, and start to rebuild their lives in the UK.
People receive the advice and support that they need which allows them to make decisions that affect their lives and their future.
Any campaign or policy activity attempts to improve the situation for the people who benefit from the organisation and its work. Specifically, this means improvements in the asylum or immigration process and the ways in which people are treated by the authorities to ensure fair and equitable treatment and respect for human rights.
Our Activities
In pursuit of these objectives, GMIAU undertakes the following:
To provide individual advice and representation, at all stages of the legal process, to those most in need who are subject to immigration control.
To provide additional support to particular groups affected by immigration control. Our current focus being on supporting people who are homeless and destitute, women at risk, unaccompanied children and young people and others who are vulnerable.
To promote and raise awareness of the issues affecting people subject to immigration control. We provide training, workshops, and events to highlight these issues and promote improved understanding and practice.
To work with others to secure and develop advice provision in the North West.
To develop policy responses and campaign to support people subject to immigration control and under threat of deportation.
During the year we have:
Provided advice and support to 5,688 people. Many of the people we see are vulnerable due to their circumstance and include people with health problems, those who are destitute, people who have been subject to torture, trafficking, forced labour and other forms of ill-treatment, and children and young people who are in the UK on their own.
Closed 742 legal cases and taken on 657 new cases.
Provided advice to 2,817 people whose cases we could not take on.
Provided training to 2,143 people and agencies to increase knowledge and understanding of the UK immigration system and how to support those affected.
Continued to advocate for those affected by the Windrush scandal which emerged in 2017 and to work in partnership pro bono with 8 leading law firms to make applications to the Windrush Compensation Scheme on behalf of applicants across the UK. The Windrush Legal Initiative has now secured over £1.5 million in compensation for people.
Continued to work in partnership with law firm Freshfields Bruckhaus Deringer to develop volunteering opportunities for their paralegals to assist with asylum support appeals.
Represented a significant number of children who are on their own in the UK claiming asylum. An ongoing contract with the Regional Strategic Migration Partnership has helped us to advise and represent an increased number of unaccompanied children.
We continue to run the All4One group for children and young people who are in the UK on their own. One child said, “No one here makes me feel safer than this group”.
Further developed our work, funded by the Esmée Fairbairn Foundation, to work with children and young people in care and in leaving care in Manchester. This includes legal casework and support for Local Authority staff and management to improve practice through training, consultations, and published guidance. We have also worked collaboratively with Local Authorities to ensure they respond to national immigration policy consultations that will impact the young people they work with.
Provided a number of successful social work student placements from Salford University. The student’s focus is on people who are in need including families with no recourse to public funds, people who are homeless and destitute, young people, and people with mental health needs.
Continued our work as part of Kids in Need of Defence (KIND) to work with private law firms to provide pro bono support to children to make nationality applications.
Delivered the Restricted Eligibility Support Service (RESS) to support people who are homeless and destitute, to reduce rough sleeping, and support people with ‘no recourse to public funds’. This work has been funded by the Greater Manchester Combined Authority (GMCA). We work alongside the Booth Centre and the Boaz Trust to provide face-to-face holistic support as well as training sessions for organisations and local authorities working within the homelessness sector.
Continued our work with people who are destitute, in particular those affected by ‘no recourse to public funds’ restrictions and those fleeing domestic abuse, with support from the National Lottery.
Provided support to people fleeing domestic abuse with funding from Independent Choices.
Set up a new service for people fleeing domestic abuse, in partnership with Rights of Women, funded by GMCA. This year, we have supported 153 individuals from 10 Greater Manchester Local Authorities.
Continued to collaborate with 11 other not-for-profit organisations as part of the Step Change Consortium. The Consortium was formed to create a joined-up and collaborative ecosystem of support for refugees and people seeking asylum.
Worked to increase capacity in the sector by training the next generation of caseworkers and solicitors with help from Justice Together and The Balcombe Trust.
Our Adviceline service provided advice to 570 people up to September 2025 with funding from Access to Justice and the Ministry of Justice through Improving Outcomes Through Legal Support (IOTLS). This funding continued to run group sessions around asylum and other immigration matters to people housed by the Home Office in hotels who were otherwise unable to access legal advice.
Strengthened our Policy and Campaigns team with support from the Paul Hamlyn Foundation and Justice Together. Through our team we are able to provide capacity for smaller frontline and community-based organisations in Greater Manchester to build their power and be part of advocacy and influencing work. For example, in March 2026 we organised a bus of 50 Manchester-based campaigners to attend a mass lobby in London where we engaged with our local MPs in Parliament.
Our Policy and Campaigns team support people to speak to the media and our work has been covered in local and national media. We are a regional and national voice asked to comment on immigration and asylum news regularly on platforms including LBC, Talk and the BBC.
Continued our community organising work, supporting several lived experience groups to raise their voices and make change.
We support action group The VOICE who continued to speak out on long routes to settlement and visa fees.
The Greater Manchester Asylum Hotels Group spoke out about their experiences including a statement on protests outside asylum hotels which received wide media coverage. Andy Burnham was asked to comment and the group have subsequently met with him.
Our Action Group has raised issues around the cost of the 10-year route.
The All4One young leaders made a video about their No Borders in Education campaign.
We have recently set up a new group of children with experience of being in care and having immigration issues, Early Freedom, who have already shared their experiences in briefings for the Home Office, Department for Education and Local Authorities.
Continued to publish research including a 2025 report on children trapped in adult asylum hotels which centred children’s experiences, made possible by the relationships and care built up in the All4One group. It received media coverage and the young people also wrote a letter to the Home Secretary. Engagement with the Home Office and Local Authorities on the back of this report continues.
Responded to an increase in far-right violence in our city and at asylum accommodation by taking a leading role in holding statutory bodies to account and providing community information.
Expanded our communications capacity with our Communications Officer who started in 2025. This includes expanding our reach with a new Instagram account, going through a tendering process for the design and build of a new GMIAU website, which is now nearly ready to launch, and publishing a larger number of legal information resources (11) and policy guides/briefings (7). This community-based communications model is aimed at keeping the people we represent and partner organisations up to date in a hostile and fast-changing policy environment.
Co-organised a North West Migrants Rights Conference (September 2025), bringing together legal professionals, academics, community organisers, advocates, and individuals with lived experience.
Were awarded ‘Best New Pro Bono Activity’ at the LawWorks awards 2025 and ‘Frontline Agency of the Year’ at the Greater Manchester Pro Bono Awards 2025 for our eVisa pro bono project. We were also ‘Highly Commended’ in LawWorks’ Most Effective Pro Bono Partnership category for the Windrush Legal Initiative.
Participation and work with others
We continue to work with a wide range of agencies, to provide advice and to develop policy responses to immigration and asylum issues.
We have been active members of networks of advice agencies, legal aid providers, and others to campaign against the cuts to legal aid and to try to find ways to support people given the lack of legal aid capacity in the North West.
Income for the year amounted to £2,274,459 (2025: £2,078,282) of which £1,332,908 (2025: £1,162,022) was unrestricted and £941,551 (2025: £916,260) was restricted. Total expenditure totalled £1,994,727 (2025: £1,881,029) of which £1,115,442 (2025: £971,278) was unrestricted and £879,285 (2025: £909,751) was restricted.
We aim to be effective and efficient with our resources. We are very grateful to the funders and others who recognise the value of the work that we do and have given their support throughout the year. We entered 2025/26 with several grants coming to an end and we have worked hard to maintain these existing relationships whilst developing new and diverse income streams. This allowed us to generate a surplus, contributing to our reserves, to ensure we are as financially resilient as possible given the challenges ahead in future years.
Funds carried forward at the end of the period totalled £2,256,447 (2025: £1,976,715) of which £2,139,052 (2025: £1,908,013) was unrestricted and £117,395 (2025: £68,702) was restricted.
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future.
For this reason, they continue to adopt the going concern basis in preparing the financial statements. The charity is continuously monitoring its expected income levels and operational targets are set in order to ensure the charity secures sufficient funding to fulfil its on-going obligations. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
The trustees recognise the need of the organisation to have free reserves and set aside an amount of no less than six months running costs. Any money not required for working capital is deposited in an interest-bearing account.
Free reserves (unrestricted reserves less the value of designated funds and fixed assets) at 31 March 2026 amounted to £588,134 or 3.1 months of expenditure. Once funds designated towards the operating reserve of £527,880 are included, reserves amount to 7.9 months. The trustees are therefore satisfied that sufficient reserves are currently held by the charity.
Funding sources
Our main funding sources during 2025-26 were:
AB Charitable Trust
Access to Justice Foundation
Aurum Charitable Trust
Balcombe Trust
Boaz Methodist
Caritas / Lloyds National Influencing Programme
Civic Power Fund
Esmée Fairbairn Foundation
Freshfields
Greater Manchester Combined Authority
Greater Manchester Law Centre - Oak Foundation
Greater Manchester Youth Network
HT & LB Cadbury Charitable Trust
Independent Choices
Independent fund raising and donations
Justice Together
KIND UK (Supported by four Solicitor firms)
KIND US (Kids In Need of Defence)
Legal Aid Agency contract (Legal Aid)
Legal Aid Agency certificated work
Legal Education Foundation
Manchester City Council
Manchester Women’s Aid (via Pankhurst Trust)
The National Lottery Community Fund
NRPF Partnership (Global Dialogue)
The Oglesby Trust
Paul Hamlyn Foundation
Pro Bono eVisa Initiative (Supported by two Solicitor firms)
Refugee Action / Step Change
Student Placements in association with Salford University
Windrush Legal Initiative (Supported by eight Solicitor firms)
Principal risks and uncertainties
The trustees have reviewed the major risks to which the charitable company is exposed and have established systems to review and mitigate those risks. The charity maintains a risk register outlining key organisational risks and mitigating steps. The most significant risks identified are:
Cash flow risk
The charity faces risks relating to the availability of cash for operating expenditure. Decision-making relating to Legal Aid cases has slowed considerably since the pandemic and therefore the timing of payments relating to this work is uncertain. A significant slowdown in the cash receipts would put the charity of risk of being unable to meet its immediate financial commitments including payroll and project costs.
To mitigate the risks identified, management prepare cash flow forecasts covering 3 years as part of annual budget setting and a rolling 12-month cash flow is updated as part of monthly management accounts. We also operate with a diverse income base – including grant funding, donations, Legal Aid income and other contractual income – thereby mitigating the cash flow impact should any one of our individual funding streams be disrupted or discontinued.
Work in Progress recovery risk
This relates to monies due from the Legal Aid Agency for work completed on cases for which we are awaiting a Home Office decision. Uncertainties relating to the rate of recovery for this Legal Aid work mean that the charity is at risk of overstating its debtor balance, which in turn would mean that management would be at risk of over-committing the charity financially. Additionally, overestimating the recovery rate of work in progress would mean that the charity is at risk of overestimating the profitability of its Legal Aid work thereby meaning that management are unable to make informed decisions about the viability of these activities.
To mitigate these risks the charity applies recovery rate calculations to adjust its work in progress balances and the trustees have also elected to hold the value of these debtor balances in designated funds, thereby ensuring reserves calculations take into account any potential debtor risk. Further details of these judgements and estimates are detailed in 1A of the Notes to the Financial Statements.
Our priorities are:
To work with others to increase capacity to provide free, independent, legal immigration advice and representation to meet the needs of people in the north west.
To invest time and effort into training and developing new immigration caseworkers for the future.
To ensure that the services we provide are relevant and effective.
To be a source of information and support to agencies supporting people subject to immigration control including children, families, and housing and homelessness services, and to the people navigating the system themselves.
To challenge decisions that wrongly deny access to services for people in need on the basis of immigration status.
To develop our community organising model to ensure our policy and campaigns work is led and shaped by people with lived experience of immigration control.
To work in a strategic but agile way, often in collaboration, to robustly challenge attacks on human rights, the support system, and the right to settle.
To continue improving relationships and internal communication for a strong connection between casework and support work and external advocacy and communications.
To increase the involvement of people who have been through the immigration and asylum process in our staff and volunteer teams.
To contribute towards increasing connections between people, decreasing isolation, and making the North West a region that welcomes and supports refugees and all people whose lives are restricted by immigration control.
To make sure that GMIAU is an effective, well managed and sustainable organisation, true to our values, and that we communicate our impact and the difference we make more widely.
To maximise our ability to report on the wider outcomes of our work by constantly improving data capture and analysis.
To secure enough free reserves to withstand threats to statutory funding and fluctuating grant income.
The charity is controlled by its governing document, the Articles of Association (adopted on 28 June 2023), and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The charitable company is registered in England and Wales (no. 02838845) and was incorporated on 23 July 1993 and registered as a charity (no. 1123908) on 29 April 2008.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
Greater Manchester Immigration Aid Unit is registered at 1 Delaunays Road, Crumpsall Green, Manchester, M8 4QS.
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:
Governance
As a registered charity Greater Manchester Immigration Aid Unit (GMIAU) is administered by a Board of voluntary Trustees. The Board meets every two months and delegate a number of functions to sub-committees including a finance sub-committee.
Trustee selection, appointment and competence
Trustees are elected by the membership or co-opted by the Board for terms of up to two years (renewable) in accordance with the Memorandum and Articles of Association. All persons wishing to put themselves forward for election/co-option must undergo a preliminary selection process following which the Board decides whether to recommend them to the membership as suitable candidates.
New trustees receive an induction programme which includes introductions to the organisation’s policies and practice, its aims and activities, the staff and other members of the Board.
The Board maintains the competence of its members through verbal and written briefings, presentations, and opportunities to attend training courses and events.
Staff Team
The Trustees employ a Chief Executive who is responsible for the day-to-day management of the 41 staff at GMIAU. This included our outgoing CEO following a brief crossover, our Finance Manager and two assistants who all administer our legal aid contracts. We have a team of 21 specialist solicitors, immigration caseworkers and legal trainees. Our Policy Team consists of six staff including a Community Organiser. Our Operations Manager oversaw a team of three. Our Destitution Team consists of four staff who provide support to people who are homeless and destitute.
We are a Real Living Wage employer accredited with the Living Wage Foundation since 2013.
In accordance with the company's articles, a resolution proposing that TC Group be reappointed as auditor of the company will be put at a General Meeting.
We would like to thank all our members, volunteers and supporters for their continued support of GMIAU. You keep us going with your encouragement and validation for the work that we do and for your energy and commitment to all that GMIAU stands for.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Greater Manchester Immigration Aid Unit for the purpose of company law, are responsible for preparing the Trustees' Report 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Greater Manchester Immigration Aid Unit (the ‘charity’) for the year ended 31 March 2026 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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.
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 charity’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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 objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Greater Manchester Immigration Aid Unit is a private company limited by guarantee incorporated in England and Wales. The registered office is 1 Delaunays Road, Crumpsall Green, Manchester, M8 4QS, United Kingdom.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The trustees have considered charity's current and future financial position.
The trustees have reviewed cash flow forecasts covering a period of 3 years from the balance sheet date, ensuring that they have considered cash flows for the 12 months from the date of approval of these financial statements (“the going concern period”) prepared by the charity’s management. These forecasts considered the risks to the charity’s business model, particularly the reliability of the charity’s fundraising forecasts, cost and wage increases due to high inflation and likely freehold property maintenance costs, risks relating to the recoverability of work in progress and analysed how those risks might affect the charitable company’s financial resources or ability to continue operations over the going concern period. The planning process, including financial and cash flow projections, has considered alternate scenarios and the trustees have reviewed mitigating steps that can be taken, including the designation of funds to meet significant upcoming expenditure.
The trustees consider that the charity holds sufficient free reserves to provide cover for unexpected changes in income and expenditure to allow it time to adjust its cost base and continue activities. The trustees continually monitor actual and forecasted financial performance and manage the charity’s finances accordingly. Consequently, the trustees have concluded that there are no material uncertainties that could cast significant doubt over the charity’s ability to continue as a going concern for at least 12 months from the date of approval of the financial statements, and therefore, have prepared the financial statements on a going concern basis.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
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.
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.
Income from government and other grants, whether 'capital' grants or 'revenue' grants, are recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably.
Where the charity determines that a grant agreement does not impose specified future performance-related conditions income is recognised when the grant proceeds are received or receivable.
Where the charity determines that a grant agreement imposes specified future performance-related conditions, funds are initially recognised as deferred income within creditors and released to income as the conditions are met and the charity has entitlement to the funds.
Income from legal aid casework is claimed when a decision has been made on a case by the Home Office. Any time spent on casework before income is claimed is recognised as work in progress and included within debtors.
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.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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:
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.
At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible 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).
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.
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.
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, 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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
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.
The charity operates a defined contribution pension scheme for those staff who have opted into auto-enrolment. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The charity also makes payments into a defined benefit scheme as part of a fund administered by Greater Manchester Pension Fund. This scheme ceased to be open to new members in April 2006 and eligible employees are now enrolled into the charity’s defined contribution scheme. Although the defined benefit scheme is closed to new members, the charity currently makes payments into the scheme for 2 employees who entered prior to closure.
The pension cost is charged to the Statement of Financial Activities in the year and represents contributions payable by the charity to the pension funds.
The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the charity’s accounting policies. The following are the key judgements and sources of uncertainty in the estimates that have the most significant effect on the amounts recognised in the financial statements:
Judgement is applied by the charity when considering how grant income is recognised under section 5 of the Charities Statement of Recommend Practice (FRS 102). For each grant the charity considers whether any performance-related conditions exist which impact when and over what period income becomes receivable or can be recognised. Performance-related conditions are understood to be those which specify that goods, services or other outputs that must be delivered by the charity in order for it to have entitlement to the grant funds.
Estimates are used by the charity when calculating the value of work in progress included as a debtor on the charity’s balance sheet.
The charity’s work in progress consists of unbilled immigration law work undertaken in relation to the charity’s Legal Aid Agency (LAA) contract. Uncertainty arises due to the fee structure relating to such work and judgements are involved in adjusting the figure for billable time obtained from the charity’s case management system accordingly.
Fixed fee cases
Judgements:
Fixed fees apply to majority of work undertaken by the charity regardless of time spent or costs incurred. Additional ‘Escape Fees’ may become billable when costs accrued reach a certain threshold. Uncertainty therefore arises in relation to whether an active case will reach the threshold for Escape Fee billing and, therefore, whether time recorded on the case management system will become billable or not. Additionally, while the charity uses sector standard case management software to monitor time and costs relating to Legal Aid work, all Escape Fee claims are subject to LAA review and there is potential for claims to be disallowed.
Estimates:
The charity currently applies a recoverability percentage to the carrying value of work in progress to account for the uncertainty outlined above. For fixed fee cases 80% of the time recorded is considered recoverable and is included as work in progress in debtors. This recoverability percentage has been maintained since the last financial statements. Management still consider this to be a reasonable recovery rate.
Hourly rate cases
Judgements:
Certain types of work are paid on an hourly basis but are also subject to limits on billing. Limits may be raised on a case-by-case basis but this is subject to approval by the LAA. Uncertainty therefore arises in relation to whether all the time recorded in relation to an active case will be considered as allowable by the LAA.
Estimates:
The charity currently applies a recoverability percentage to the carrying value of work in progress to account for the uncertainty outlined above. For hourly rate fee cases 90% of the time recorded is considered recoverable and is included as work in progress in debtors. The figures used are based on historical averages of actual fee recovery and management consider that they still represent an accurate estimate of likely billing.
Management have considered the effect of amending the estimates relating to fixed fee work recoverability. A 5% increase in estimated recoverability would increase the charity’s debtor balance by £6,964 as at the balance sheet date, while a 10% increase would increase debtors by £13,928. Conversely, a 5% decrease and 10% decrease in estimated recoverability would reduce debtors at the balance sheet date by £6,964 and £13,928 respectively.
No other significant judgements, further to that surrounding going concern, have been made by management in preparing these financial statements.
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
Trustees' expenses
Expenses totalling £1,584 were paid to 4 trustees in relation to travel, childcare and subsistence costs for the year ended 31 March 2026 (2025: £771 paid to 4 trustees in relation to travel, childcare and subsistence costs).
The average monthly number of employees during the year was:
The Key Management Personnel in the year ended 31 March 2026 were the Chief Executive Officers (outgoing and incoming) and Senior Solicitor. The total amount of employee benefits (including employer's national insurance and pensions contributions) received by Key Management Personnel was £150,375 (2025: £131,132).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Deferred income is included in the financial statements as follows:
Defined contribution pension scheme
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.
Defined benefit pension scheme
The charity makes payments to a defined benefit scheme as part of a fund administered by Greater Manchester Pension Fund for 2 staff who entered the scheme before its closure to new members in April 2006. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £23,944 (2025: £22,649). The amount payable to the pension provider at the year-end was £nil (2025: £nil).
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.
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.
An additional £300k has been redesignated to Property - New Building and Current Refurbishments. This has been designated in year to maintain operations and keep the existing building fit for purpose while full refurbishment or relocation plans are being considered, ensuring that there is no disruption in the provision of services by the charity.
As at 31 March 2026 the trustees have elected to designate the following funds:
Freehold Property Fund:
The charity owns the freehold for the premises from which it operates in Crumpsall, Greater Manchester. This property is integral to the operations of the charity, and it would be required to find alternative premises should the freehold be sold and the value of the asset be converted into cash. The trustees have therefore elected to designate a fund representing the current net book value of the freehold, given that these funds cannot easily be converted into cash.
New Building and Current Refurbishments Fund
The freehold property owned is in need of significant maintenance and refurbishment to bring it into line with current client and staff needs. If such works are not undertaken, the charity may need to consider relocating to a new building While the charity does not currently have active plans to undertake all the necessary works or to move, it is considered that this will be necessary in the medium term and so the trustees have therefore designated £410,000 in recognition of anticipated costs which are likely to be realised within 5 years of the balance sheet date.
Work In Progress Fund:
The charity holds immigration and public law Legal Aid contracts. Work under these contracts cannot normally be billed until a decision has been made by the Home Office or the relevant court on each legal case. As the date that these funds will be become billable is uncertain, the trustees have elected to hold funds equating to the carrying value of work in progress at the balance sheet date in a designated reserve until these balances can be realised.
Disbursements Fund:
Disbursements, e.g. interpreter and counsel fees, expended relating to the Legal Aid immigration and public law cases referenced above are also not normally billed until a case is concluded. As the date that these funds will be become billable is uncertain, the trustees have elected to hold funds equating to the carrying value of disbursements at the balance sheet date in a designated reserve until these balances can be realised.
Operating Reserve Fund:
The charity is currently subject to a tumultuous political and legislative environment which is having a significant impact on the organisation and which is leading to increased demand. Legal Aid funding is subject to an ongoing consultation and the charity also has a number of large grants and contracts that are due to end in the next 24 months. In addition to this, the charity is experiencing upward pressure on costs and, in particular, on salaries which it aims to match to NJC pay increases.
Given these circumstances – and to ensure that GMIAU remains a stable and resilient organisation - the trustees have considered it prudent to designate an operating reserve to cover any impact on its services as a result in changes to its income or increased costs. The funds designated at the balance sheet date represent 3 months of operating costs.
There were no disclosable related party transactions during the year (2025 - none).
The charity had no material debt during the year.