Registered number: 2888960 Charity number: 1033626
ACTION4YOUTH
(A Company Limited by Guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
ACTION4YOUTH
(A Company Limited by Guarantee)
| CONTENTS | |
|---|---|
| Page | |
| Reference and Administrative Details of the Charity, its Trustees and Advisers | 1 |
| Trustees' Report | 2 - 10 |
| Independent Auditors' Report | 11 - 13 |
| Statement of Financial Activities | 14 |
| Balance Sheet | 15 - 16 |
| Statement of Cash Flows | 17 |
| Notes to the Financial Statements | 18 - 35 |
ACTION4YOUTH
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021
Trustees
D Teasdale, Chairman L D Oldreive C R Soames J S Chana J M Trebble D Williams G R A Shankland G Hill J Y Hulme D P Knox J Dees N Field
Company registered number
2888960
Charity registered number
1033626
Registered office
5 Smeaton Close, Aylesbury, Buckinghamshire, HP19 8UN
Company secretary
J F M Cameron
Chief executive officer
J F M Cameron
Independent auditors
Hillier Hopkins LLP, 249 Silbury Boulevard, Milton Keynes, Buckinghamshire, MK9 1NA
Bankers
Lloyds Bank plc, 1 Market Square, Aylesbury, Buckinghamshire, HP20 1TD
Page 1
ACTION4YOUTH
(A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021
The Trustees present their annual report together with the audited financial statements of the charitable company for the 1 April 2020 to 31 March 2021. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP), 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 2015) as amended by Update Bulletin 1 (effective 1 January 2015).
Since the charitable company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
The charitable company also trades under the name Caldecotte Xperience.
Objectives and Activities
a. Policies and objectives
The objectives of the charity are:
To help and educate children and young people, through informal education and leisure time activities to develop their physical, mental and spiritual, moral and cultural capacities, to achieve their full potential, that they may grow up to full maturity as responsible individuals and members of their communities and society.
b. Strategies for achieving objectives
Our Strategy to achieve our stated objectives has had the following threads:
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To act as a voice for and of young people, strengthened by our expertise of voluntary and community children and young people’s organisations and to be the natural first point of contact for these organisations.
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To provide leadership, training and support to voluntary and community children and young people’s organisations.
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To develop strategic partnerships with both statutory and voluntary organisations.
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To be a recognised, inclusive and well informed resource supporting our full membership, ranging from small clubs to larger national organisations.
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To enable the participation of children and young people at all levels of Action4Youth, so that their voices are heard.
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To be a proactive and flexible organisation which responds to opportunities for continuing development.
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To operate our outdoor education centre, Caldecotte Xperiance, in a way which is financially sustainable.
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To deliver programmes appropriate for the development of children and young people.
Page 2
ACTION4YOUTH
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021
c. Activities for achieving objectives
Action4Youth takes the strategic lead for the voluntary organisations supporting children and young people, aged 5 – 25 years in Buckinghamshire & Milton Keynes, including a range of locally based children and young people’s voluntary sector projects and agencies, as well as the local associations of national voluntary youth organisations.
Action4Youth has representation on the Bucks Children's Partnership Board, The Youth Offending Service Board, Bucks Strategic Partners Board and The VCS Recovery Board.
Action4Youth is a member of UK Youth and The National Association of Boys and Girls Clubs and represents Buckinghamshire and Milton Keynes.
Action4Youth is one of five infrastructure charities representing the third sector at regular meetings with the Bucks County Council Chief Executive, senior officers and the Deputy Leader of the Council. This partnership aims to bring strategic alignment to the sector and the Council.
Action4Youth holds a contract to deliver the National Citizen Service of Buckinghamshire, delivers The Inspiration Programme in schools and runs the Duke of Edinburgh’s Award across Milton Keynes and Buckinghamshire.
Action4Youth provides a range of programmes, activities and services which support those young people at risk and creates opportunities for development and advancement for all young people.
d. Volunteers
The company is grateful for the efforts of its volunteers. The use of volunteers and other donated services or facilities in the course of undertaking the organisation's charitable or income generating activities are not included in the Statement of Financial Activities.
Achievements and performance
a. Key financial performance indicators
The organisation’s overall financial objective is to ensure that reserves, at each year end, are sufficient to ensure the future financial stability of Action4Youth, and its ability to continue to achieve its objectives in an increasingly difficult funding environment. In this respect the financial performance of the Caldecotte Xperience and our contract for NCS delivery are key and closely monitored indicators. The Duke of Edinburgh Award is a small but growing income stream and the Inspiration Programme continues to develop.
Despite extremely challenging operating conditions in 2020/21, Action4Youth has ended the year in a robust position. This was achieved by taking all necessary actions to reduce costs, including reducing the staff team by a third. The government’s furlough scheme was used to ensure that key staff members would be available to return to work as conditions improve. Some staff members were on furlough for extended periods and others on part furlough.
Fundraising was successful during the year which eased the pressure on cash flow and ensured long term viability.
Page 3
ACTION4YOUTH
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021
b. Review of activities
Action4Youth’s normal range of programmes, activities and support for young people was seriously impacted by the advent of the covid 19 pandemic in the early spring of 2020. The consequent lockdowns and restrictions meant that interaction with young people in person was largely impossible for much of the year.
Action4Youth’s outdoor adventure and learning centre, Caldecotte Xperience in Milton Keynes provides high quality educational experiences for more than 15,000 young people in a normal year from Milton Keynes, Bucks, Cambridgeshire, Oxfordshire, Hertfordshire and Bedfordshire. The young people gain in many ways from these opportunities, notably in team building, communication skills and gaining in self-esteem. On residential visits they also forge new, stronger relationships with their teachers which are proven to lead to better outcomes back in school. Visitors to the centre are primarily school groups, both primary and secondary, but many others come from clubs and other groups.
In 2020 residential visits were not permitted and only a relatively small number of day visits went ahead. The team at Caldecotte Xperience continued to work with a small number of special needs groups throughout the year.
As delivery partners for the National Citizen Service, we deliver the programme in summer and autumn across Buckinghamshire. In 2020 there was no summer NCS programme though Action4Youth ran a small programme called “Keep Doing Good” for 110 young people. A revised autumn NCS programme, Moving Forward, went ahead with 200 young people completing the programme in 2020.
Action4Youth continues to be the leading infrastructure support organisation for youth clubs and organisations across Buckinghamshire, offering essential support and training to these organisations. During the year 57 clubs and organisations were in membership. This number is down on previous years because a number of clubs and organisations remained closed throughout 2020 because of the pandemic. Training was delivered online rather than in person as in the past.
The Inspiration Programme was delivered in a number of schools with the programme being adapted to online learning when schools were closed.
Since September 2016 when Action4Youth became the license holder for the Duke of Edinburgh Award scheme for Milton Keynes and Bucks with the ability to establish groups and run expeditions, activity to develop the programme has progressed. During 2020/21 most activities were delayed, postponed or cancelled but there was some activity in late March 2021 as restrictions began to ease.
The mentoring programme continued to be delivered in High Wycombe, as restrictions allowed, with support from the Bucks Council offering one to one support to young people displaying disruptive behaviour and, in some cases, at risk of exclusion.
Our fundraising efforts have been effective in 2020/21 and the funds raised, from a range of sources but predominantly charitable trusts and foundations have made a very important contribution to the organisation’s sustainability.
Despite the trials of the last 12 months, team morale is high, and we continue to benefit from an enthusiastic, experienced and committed group of people.
c. Investment policy and performance
Investment performance was in line with expectations given the current policy of placing surplus cash with banks and other Financial Institutions wholly covered by the Governments guarantees, for periods of up to two years.
Page 4
ACTION4YOUTH
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021
d. Factors relevant to achieve objectives
Financial review
The accounts for the year show an overall surplus of £11,179, which compares to a surplus of £21,220 in the previous year. Due to COVID constraints the income for the year was vastly reduced from what was expected; £2.02m to just over £1.07m. Very prudent financial, people and asset management plus use of government schemes ensured operating costs were halved. This together with the cost of sales running at near zero, due to the very low business activity, allowed the year to end just above break even.
The welcome funding support of individuals and organisations (around 30% of income) has been an especially important factor in ending this hard year in a solvent position and ready to meet the challenges of 2021/22.
As of 31 March 2021, the balance sheet shows net assets including pension scheme liabilities of £881,837. Fixed assets primarily represent our ownership share of the Caldecotte outdoor education centre as well as the investment there in the two yurt villages.
Looking to the future, our balance sheet provides a good position going into 2021/22 to manage the challenges ahead. There are still many uncertainties, especially in the early months of the new year as restrictions start to ease. Increased area coverage for NCS and DofE offset some of the change of numbers in the traditional area coverage. A major challenge is ramping up usage levels at Caldecotte after COVID. The New Youth hub in High Wycombe will give some major new scope. Also, as we learn more regarding the changed NCS processes with Ingeus we feel more positive about the role A4Y can continue to play. All good vibes but major challenges. Luckily A4Y has a strong team with a good understanding of both the financial and operational aspects. They have very successfully managed A4Y through a very difficult 2020/21 and we are sure they will successfully see the organisation through the expected return to normality in 2021/22. Revenue expectations are anticipated to rise to around 75% of pre covid levels in 2021/22 before rising further in later years.
A4Y is well placed to help the youth sector where so many have lost out in 2020/21. We will aim to continue to provide the highest possible level of support for the youth sector in Buckinghamshire and Milton Keynes through the times ahead.
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the company 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. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
b. Principal risks and uncertainties
The uncertainty on the speed of recovery and take up of offerings following COVID.
There is limited funding for all aspects of youth work and so Action4Youth continues to be actively involved in developing partnerships to reduce costs and increase outcomes for young people.
The principal risk to the Caldecotte Xperience (primarily short term) is to obtain enough bookings to ensure an effective income to cost balance. The challenge for 2021/22 is to recover COVID lost ground and improve usage of off-peak periods. Support though from schools remains strong so the signs are good.
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ACTION4YOUTH
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021
For the National Citizens Service we are in year 2 of a 3 year contract. Processes and responsibilities changed with the renewed contract and 2020/21 was meant to be one of learning and fully understanding the impact. Covid stopped much of the learning but also changed some of the goal posts and there is now also uncertainty of the level of government funding for NCS ongoing. The territory has increased but numbers by territory are down. 2021/22 will be a learning and evaluating year.
The Inspiration Program continues to grow but it still in development and ongoing revenue will be dependent on schools/college funding.
Not achieving predicted fundraising income is an ongoing concern. It is core to the future. Investment continues to be made in people and processes to improve performance and improvements to the processes to monitor cost versus return are being made. To ensure compliance all fundraising is conducted observing the standards of the fundraising regulator.
c. Reserves policy
The reserves policy and its review is core to the annual business planning process. As part of that process a reserves target level is set for the year based on the expected business climate and coverage of core operational costs. The policy is primarily based on the Charity Commission guidance but is adjusted to take account of A4Y’s income stream mix where contract rather than fundraising is the prime income stream.
During a very unpredictable 2020/21 cash flow monitoring and projection by week was used as a key control to plan ahead, make decisions and plan contingencies to ensure financial stability. This worked very successfully. For this reason and with this control in place for the second half of the year the Board authorised a target reserve level of zero to allow flexibility in managing the business through the difficult times.
For 2021/22 a reserves level of £300k has been agreed by the Board. This takes account of the projected cash flow and the operational and development needs of the 2021/22 business plan.
Action4Youth operates to a controlled plan with the aim of delivering an operating surplus. At times of planned major reorganisation or process change the operation may run at a temporary deficit.
d. Deficit
Action4Youth operates to a controlled plan with the aim of delivering an operating surplus. At times of planned major reorganisation or process change the operation may run at a temporary deficit.
e. Principal funding
The prime sources of income are:
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Contract income from the National Citizens Service.
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Fees paid to the outdoor education centre for delivering to school groups in term time and to voluntary youth groups, clubs and private groups at weekends and in the holidays.
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Programme delivery from the Duke of Edinburgh Award and The Inspiration Programme.
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External funding streams such as charitable trusts, fundraising events and donations.
A4Y manages its fundraising in house through a team led by the Chief Executive. In carrying out these activities the charity adheres to all recognised standard practices as well as all the latest data, security and people protection requirements of the data protection acts.
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ACTION4YOUTH
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021
We are grateful to the following individuals and organisations for their support:
Anson Charitable Trust Police Property Act Fund Bedfordshire and Luton Community Foundation Roger and Jean Jefcoate Trust Bella Henman Rotary Club of Winslow Heart of Bucks Rothschild Foundation KFC Foundation Susanna Peake Charitable Trust John Lewis Swire Charitable Trust Julia and Hans Rausing Trust Thrive Homes Community Grant Fund Julia Mary Wood Charitable Trust The Parks Trust KFC Foundation The Edward Gosling Foundation Mobbs Memorial Fund The Hands Family Trust Milton Keynes Community Foundation Vale of Aylesbury Housing Thriving Communities Fund
e. Material investments policy
The Board is concerned to maximise the level of income obtained from its investments but is mindful that its reserves may be required at relatively short notice. The Board of Trustees has continued with the policy of placing surplus cash with Banks and other Financial Institutions in branches wholly covered by the Government guarantees, for periods of up to two years. The balance of cash is held on deposit at Lloyds Bank.
In line with the above the Board regularly reviews investment policy to ensure it meets the needs of balancing the needs of liquidity and returns. Currently with limited funds and many uncertainties and very low return rates the bias is towards liquidity until the future becomes more certain.
Structure, governance and management
a. Constitution
The charitable company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 10/06/2005. Its registered charity number is 1033626.
b. Method of appointment or election of Trustees
The management of the charitable company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.
c. Policies adopted for the induction and training of Trustees
The Trustees’ training needs are reviewed at board meetings, and implemented annually. Any new Trustees are fully inducted and trained according to their needs.
d. Pay policy for senior staff
The Board’s policy continues to be to pay salaries which attract excellent staff, whilst remaining within the range of salaries paid by comparable organisations in the charity sector.
Page 7
ACTION4YOUTH
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021
e. Organisational structure and decision making
The Board of Trustees meets four times in each year and leads the charity’s strategic direction and maintains critical oversight of the organisation’s running which is delegated to the Chief Executive of Action4Youth and its staff.
f. Risk management
An ongoing risk assessment process is in place. Core to this are a risk matrix and issues log. These are updated monthly with the issues log representing the highest risks reviewed at every Board Meeting. The Finance and Risk committee carries out an annual review of the matrix and process and reviews the matrix for changes as a standing item at each meeting. The Trustees are satisfied that the major risks to which the organisation is exposed, especially those related to operations and finance, have systems and procedures in place with an associated ongoing review process to ensure effective mitigation.
Plans for future periods
a. Future developments
Despite the setbacks of 2020/21, we continue to work to extend and build our customer base for all of our offerings. At Caldecotte Xperience our aim is to address seasonality, filling capacity in the shoulder and off seasons. We have invested in promotion and direct approaches to customers to maximise the opportunity. We continue to improve and expand our offers for young people with a wide range of special or additional needs so that our provision, as far as possible, offers equal opportunities for all.
Building on the expansion achieved in 2019 in the delivery of the NCS programme to all of Bucks, we have increased our footprint further for 2021 when, additionally, we will be delivering to most NCS participants in Milton Keynes and all of those in Slough in Berkshire.
We have reviewed our Duke of Edinburgh operation and can now increase the range of expeditions we offer and work to include more disadvantaged young people or groups with additional needs and our territory now includes Northamptonshire as well as Buckinghamshire and Milton Keynes.
The Inspiration Programme continues to develop with an increase in participating schools and in the age range of participants. We are committed to a programme of activity to raise awareness of the programme and ultimately to increase participation.
Building on our successful mentoring programme in High Wycombe we plan to extend that programme across Aylesbury Vale.
A major new initiative for 2021 is the launch of a new youth hub in High Wycombe offering a range of programmes and activities focusing on crisis support, counselling, mentoring as well as health and wellbeing and educational support for SEND young people.
With new Trustees having joined the Board we are benefiting from fresh ideas and new expertise so are exploring new initiatives with confidence and optimism.
Page 8
ACTION4YOUTH
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021
Chairman's statement
As a Board and senior leadership team, we set ourselves the challenge of emerging from the pandemic in at least as healthy a position as we entered it. Though we expect that aftershocks will continue to reverberate through the coming year, we feel confident in our leadership team’s demonstrated ability to navigate through uncertain times. Through their actions, we were able to maintain some programme activity in the field while not only retaining most of our core team but also remaining financially robust.
Looking forward, we are determined to meet more of the increasingly pressing needs of young people in our community. As I write, we have already begun to resume larger scale programme activity as well as looking forward to adding exciting new services in the months to come.
During this past year, our Board remained aligned and intact. Key members stayed in important roles in order to support the organisation during this challenging time, which we are grateful for.
We would not have weathered this storm without the ongoing support of our Patron, President, Vice-President, supporters and colleagues on the front lines. All made contributions which were invaluable.
Public benefit
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities.
Trustees' responsibilities statement
The Trustees (who are also directors of Action4Youth for the purposes 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. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 9
ACTION4YOlml IA Cthy Limitod by Guarnnt•) TRUSTEES REPORT l¢Mtinkdl FOR THE YEAR ENDED 31 MARCH 2021 EaL ofthe persons vtho are Tntee$ at the time when this Tntees. Repcrft 15 approved has confinned that so far as that Trustee is aware. 11re is no relevant autht inf(rnlion of vthich Ihe thaiitsbl auditors are urWare. and that Trnstee has tsken al thè stèps that oUt to have been lgken #s a Ttte in order to be aware of any rele¥t audt infonnab)n to eslabknsh that the thwat4e au(4kn$ awarè of thot pOrt was awovtd bythe Twstees. on 01107121 and siwed on their beh4f lry: D Teasda. Ch•irn Twstee Page 10
ACTION4YOUTH
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ACTION4YOUTH
Opinion
We have audited the financial statements of Action4Youth (the 'charitable company') for the year ended 31 March 2021 set out on pages 14 to 35. 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:
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give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
Page 11
ACTION4YOUTH
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ACTION4YOUTH
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditors' responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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ACTION4YOUTH
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ACTION4YOUTH
Use of our report
This report is made solely to the charitable company'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 charitable company's Trustees those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Hillier Hopkins LLP
Chartered Accountants Statutory Auditor 249 Silbury Boulevard Milton Keynes Buckinghamshire MK9 1NA 14 July 2021
Hillier Hopkins LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 13
ACTION4YOUTH
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021
| Unrestricted funds Note 2021 £ Income from: Donations and legacies 2 14,682 Charitable activities 3 866,145 Investments 5 56 Other income 6 192,594 Total income 1,073,477 Expenditure on: Charitable activities 9 1,045,386 Total expenditure 9 1,045,386 Net income / (expenditure) before other recognised gains and losses 28,091 Other recognised gains/(losses) (987) Net movement in funds 27,104 Reconciliation of funds: Total funds brought forward 677,592 Total funds carried forward 704,696 |
Restricted funds 2021 £ 10,000 - - - 10,000 25,925 25,925 (15,925) - (15,925) 193,066 177,141 |
Total funds 2021 £ 24,682 866,145 56 192,594 1,083,477 1,071,311 1,071,311 12,166 (987) 11,179 870,658 881,837 |
Total funds 2020 £ 95,440 1,902,606 1,469 24,261 |
|---|---|---|---|
| 2,023,776 | |||
| 2,003,484 | |||
| 2,003,484 | |||
| 20,292 928 |
|||
| 21,220 849,438 |
|||
| 870,658 |
The notes on pages 18 to 35 form part of these financial statements.
Page 14
ACTION4YOUTH
(A Company Limited by Guarantee) REGISTERED NUMBER: 2888960
BALANCE SHEET AS AT 31 MARCH 2021
| Note Fixed assets Tangible assets 14 Current assets Debtors 15 Cash at bank and in hand Creditors:amounts falling due within one year 16 Net current assets Total assets less current liabilities Creditors:amounts falling due after more than one year 17 Net assets excluding pension scheme liabilities Defined benefit pension scheme liability 22 Net assets including pension scheme liabilities Charity Funds Restricted funds 18 Unrestricted funds 18 Total funds |
£ 97,510 656,852 754,362 (428,688) |
2021 £ 684,104 325,674 1,009,778 (99,074) 910,704 (28,867) 881,837 177,141 704,696 881,837 |
£ 200,715 482,567 683,282 (437,026) |
2020 £ 771,516 246,256 1,017,772 (112,911) 904,861 (34,203) 870,658 193,066 677,592 870,658 |
|---|---|---|---|---|
The company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The Trustees consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act. However, an audit is required in accordance with section 144 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
Page 15
ACTION4YOVTH (A Lirnited by Guarant) BALANCE SHEET lcontknued) AS AT 31 IIARCH 2021 The an(la1 ststennls were approved and auth ft* issue by the TNstees 1 st July 2021 $Ied on their behalf, by. D Teasdale. L D Oklveiv• The notes on pa9 18 to 35 form m these knancial stat•ments. Page 16
ACTION4YOUTH
(A Company Limited by Guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021
| Note Cash flows from operating activities Net cash provided by operating activities 20 Cash flows from investing activities: Proceeds from the sale of tangible fixed assets Purchase of tangible fixed assets Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents brought forward Cash and cash equivalents carried forward 21 |
2021 £ 200,905 - (26,620) (26,620) 174,285 482,567 656,852 |
2020 £ 97,512 69,447 (88,302) (18,855) 78,657 403,910 482,567 |
|---|---|---|
The notes on pages 18 to 35 form part of these financial statements.
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(A Company Limited by Guarantee)
ACTION4YOUTH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1. Accounting Policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Action4Youth meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
1.2 Company status
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
1.3 Income
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees' Report for more information about their contribution.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the company which is the amount the company would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
Page 18
(A Company Limited by Guarantee)
ACTION4YOUTH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1. Accounting Policies (continued)
1.4 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 allocated on the portion of the asset’s use.
Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.
Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
All expenditure is inclusive of irrecoverable VAT.
1.5 Tangible fixed assets and depreciation
All assets costing more than £1,000 are capitalised.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities incorporating Income and Expenditure Account.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
- Freehold property 2% straight line (on cost of buildings) Long-term leasehold property - over the term of the lease - Plant and machinery 10% straight line Motor vehicles - 25% straight line - Office equipment 33% straight line - Yurt Village 10% straight line
Page 19
(A Company Limited by Guarantee)
ACTION4YOUTH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1. Accounting Policies (continued)
During the year ended 31 March 2013, the company entered into agreements with Milton Keynes Council to take over the running of two outside education centres, The Caldecotte Xperience and Longrigg Residential Centre. Under this agreement the company became fully responsible for the operational management and financial performance of both centres. The freehold of both premises was transferred to the company as part of the deal. However, a claw back arrangement is included in each deal which applies for a period of 50 years from the date of transfer. This arrangement is nullified in the event of a sale. It is triggered by any change of use of the property (or any part) from its existing use. Claw back is calculated at 100% less 2% for each year passing from the date of the Transfer of the open market value of the property. In addition, the agreement in respect of The Caldecotte Xperience ring fences the 20% holding which the company had of the freehold under earlier arrangements.
The financial statements include the proportion of the market value of the freehold of each property to which the company is entitled under the provisions of the agreements. At 31 March 2021 this was 38% of the market value of the Caldecotte freehold. The Longrigg freehold was sold during the prior year.
1.6 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.
1.7 Leasing and hire purchase
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities incorporating Income and Expenditure Account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
1.8 Operating leases
Rentals under operating leases are charged to the Statement of Financial Activities incorporating Income and Expenditure Account on a straight line basis over the lease term.
1.9 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.10 Cash at Bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 20
(A Company Limited by Guarantee)
ACTION4YOUTH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1. Accounting Policies (continued)
1.11 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
1.12 Financial instruments
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.13 Pensions
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
The company operates a defined benefits pension scheme and the pension charge is based on a full actuarial valuation dated 30 September 2017.
1.14 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Page 21
ACTION4YOUTH
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
2. Income from donations and legacies
| Unrestricted funds Restricted funds 2021 £ 2021 £ Donations 14,682 10,000 Grants - - Total donations and legacies 14,682 10,000 Total 2020 85,440 10,000 Income from charitable activities Unrestricted funds Restricted funds 2021 £ 2021 £ Youth activities 866,145 - Total 2020 1,902,606 - Analysis of income from charitable activities by type of income Unrestricted funds Restricted funds 2021 £ 2021 £ Training 2,675 - Outdoor education 167,251 - Membership 2,150 - Other 2,250 - Grants 278,368 - Contract income 411,462 - Duke of Edinburgh 1,989 - 866,145 - Total 2020 1,902,606 - |
Total funds 2021 £ 24,682 - 24,682 95,440 Total funds 2021 £ 866,145 1,902,606 Total funds 2021 £ 2,675 167,251 2,150 2,250 278,368 411,462 1,989 866,145 1,902,606 |
Total funds 2020 £ 94,940 500 |
|---|---|---|
| 95,440 | ||
| Total funds 2020 £ 1,902,606 |
||
| Total funds 2020 £ 2,045 898,261 6,280 9,148 98,238 858,833 29,801 1,902,606 |
||
3. Income from charitable activities
4. Analysis of income from charitable activities by type of income
Page 22
ACTION4YOUTH
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
5. Investment income
| Investment income | |||
|---|---|---|---|
| Unrestricted funds 2021 £ Investment income 56 Total 2020 1,469 |
Restricted funds 2021 £ - - |
Total funds 2021 £ 56 1,469 |
Total funds 2020 £ 1,469 |
6. Other incoming resources
| Unrestricted funds 2021 £ Insurance claims 6,457 Profit on disposal of assets - Government grants 186,137 192,594 Total 2020 - |
Restricted funds 2021 £ - - - - 24,261 |
Total funds 2021 £ 6,457 - 186,137 192,594 24,261 |
Total funds 2020 £ - 24,261 - 24,261 |
|---|---|---|---|
Page 23
(A Company Limited by Guarantee)
ACTION4YOUTH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
7. Direct costs
| Pension interest on defined benefit scheme Direct activity costs Premises costs Staff and office expenses Motor expenses Training General expenses Legal and professional Insurances Equipment purchases Accountancy fees Entertainment Wages and salaries National insurance Pension cost Depreciation Total 2020 |
Youth activities £ 769 30,600 114,426 35,532 10,325 (8,901) 8,953 6,270 19,581 2,076 17,677 363 604,778 53,050 16,015 105,586 1,017,100 1,953,429 |
Total 2021 £ 769 30,600 114,426 35,532 10,325 (8,901) 8,953 6,270 19,581 2,076 17,677 363 604,778 53,050 16,015 105,586 1,017,100 1,953,429 |
Total 2020 £ 525 92,490 175,613 185,592 17,536 337,308 38,243 5,467 12,990 14,431 26,780 267 889,880 65,664 21,373 69,270 1,953,429 |
|---|---|---|---|
8. Governance costs
| Unrestricted funds 2021 £ Auditors' remuneration 7,400 Governance Auditors' non audit costs 2,400 General expenses 7,609 Trustees expenses reimbursed - Wages and salaries 25,983 Employers' national insurance 2,691 Pension costs 670 Depreciation - tangible fixed assets 7,458 54,211 |
Restricted funds 2021 £ - - - - - - - - - |
Total funds 2021 £ 7,400 2,400 7,609 - 25,983 2,691 670 7,458 54,211 |
Total funds 2020 £ 7,201 3,360 3,272 354 26,530 2,620 653 6,065 |
|---|---|---|---|
| 50,055 |
Page 24
ACTION4YOUTH
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
9. Analysis of Expenditure by expenditure type
| Youth activities Expenditure on governance Total 2020 |
Staff costs Depreciation Other costs 2021 £ 2021 £ 2021 £ 673,843 105,586 237,671 29,344 7,458 17,409 703,187 113,044 255,080 1,006,720 75,335 921,429 |
Total 2021 £ 1,017,100 54,211 1,071,311 2,003,484 |
Total 2020 £ 1,953,429 50,055 2,003,484 |
|---|---|---|---|
10. Net income/(expenditure)
This is stated after charging:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets: | ||
| - owned by the charity | 95,523 | 90,629 |
| - held under finance leases | 3,150 | - |
| Auditors' remuneration - audit | 7,400 | 7,200 |
| Pension costs | 23,777 | 22,026 |
During the year, no Trustees received any remuneration (2020 - £NIL).
During the year, no Trustees received any benefits in kind (2020 - £NIL).
During the year, no Trustees received any reimbursement of expenses (2020 - one trustee £190).
11. Auditors' remuneration
The Auditor's remuneration amounts to an Audit fee of £7,400 (2020 - £7,200), and other services, including payroll services and VAT advice of £2,400 (2020 - £3,360).
Page 25
(A Company Limited by Guarantee)
ACTION4YOUTH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
12. Staff costs
Staff costs were as follows:
| Wages and salaries Social security costs Other pension costs (Note 22 ) |
2021 £ 630,761 55,741 16,685 703,187 |
2020 £ 916,410 68,284 22,026 1,006,720 |
|---|---|---|
The average number of persons employed by the company during the year was as follows:
| Management and admin Youth work Outdoor education The number of higher paid employees was: In the band £60,001 - £70,000 |
2021 No. 7 9 9 25 2021 No. 1 |
2020 No. 9 14 18 |
|---|---|---|
| 41 | ||
| 2020 No. 1 |
All Trustees/directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the company are considered to be key management personnel. Total remuneration of these individuals is £283,616 (2020 - £218,652). This represents the four members of the senior management team.
13. Other finance income
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Interest on pension scheme liabilities | 769 | 525 |
Page 26
(A Company Limited by Guarantee)
ACTION4YOUTH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
14. Tangible fixed assets
| Cost At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the year On disposals At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 |
Freehold property £ 293,717 10,000 - 303,717 25,749 3,915 - 29,664 274,053 267,968 |
Plant and machinery £ 395,883 2,656 (44,816) 353,723 194,005 43,070 (32,945) 204,130 149,593 201,878 |
Motor vehicles £ 75,024 12,600 - 87,624 30,391 15,406 - 45,797 41,827 44,633 |
Office equipment £ 10,228 1,128 - 11,356 7,466 1,711 - 9,177 2,179 2,762 |
Yurt village £ 356,936 - (3,252) 353,684 102,661 34,571 - 137,232 216,452 254,275 |
Total £ 1,131,788 26,384 (48,068) |
|---|---|---|---|---|---|---|
| 1,110,104 | ||||||
| 360,272 98,673 (32,945) |
||||||
| 426,000 | ||||||
| 684,104 | ||||||
| 771,516 |
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
| Motor vehicles 15. Debtors Trade debtors Other debtors Prepayments and accrued income |
2021 £ 9,450 2021 £ 44,872 41,892 10,746 97,510 |
2020 £ - |
|---|---|---|
| 2020 £ 191,603 - 9,112 |
||
| 200,715 |
Page 27
ACTION4YOUTH
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
16. Creditors: Amounts falling due within one year
| Net obligations under finance leases and hire purchase contracts Trade creditors Other taxation and social security Other creditors Accruals and deferred income Deferred income (including figure for more than one year) Deferred income at 1 April 2020 Resources deferred during the year Amounts released from previous years Deferred income at 31 March 2021 |
2021 £ 5,385 10,371 12,611 4,934 395,387 428,688 |
2020 £ 4,368 35,859 17,059 8,747 370,993 |
|---|---|---|
| 437,026 | ||
| £ 456,166 348,883 (344,385) |
||
| 460,664 |
17. Creditors: Amounts falling due after more than one year
| Net obligations under finance leases and hire purchase contracts Deferred income |
2021 £ 9,432 89,642 99,074 |
2020 £ 8,736 104,175 |
|---|---|---|
| 112,911 |
Obligations under finance leases and hire purchase contracts, included above, are payable as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Between one and five years | 9,432 | 8,736 |
The hire purchase balances are secured on the assets that they relate to.
Page 28
(A Company Limited by Guarantee)
ACTION4YOUTH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
18. Statement of funds
Statement of funds - current year
| Statement of funds - current year | |||
|---|---|---|---|
| Balance at 1 April 2020 £ Designated funds Development fund 14,800 Richard Swann Bursary fund 775 15,575 General funds General Funds - all funds 199,242 Caldecotte Xperience 462,775 662,017 Total Unrestricted funds 677,592 Restricted funds Balance at 1 April 2020 £ Caldecotte Property Fund 193,066 Total of funds 870,658 |
Income Expenditure £ £ - - - - - - 880,387 (587,791) 193,090 (457,595) 1,073,477 (1,045,386) 1,073,477 (1,045,386) Income Expenditure £ £ 10,000 (25,925) 1,083,477 (1,071,311) |
Gains £ - - - (987) - (987) (987) Gains £ - (987) |
Balance at 31 March 2021 £ 14,800 775 15,575 |
| 490,851 198,270 689,121 |
|||
| 704,696 | |||
| Balance at 31 March 2021 £ 177,141 |
|||
| 881,837 |
The designated funds are as follows:
The Development Fund was created to anticipate development of the work of Action4Youth.
The Richard Swan Bursary Fund is to provide books for young people going into further education.
All restricted funds have arisen from grants, donations or contract income being received for specific purposes. Sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with anyrestrictions imposed:
The Caldecotte Property Fund relates to funds invested in the freehold property in which the company has a 38% interest, including the George Amey Centre.
The Longrigg Property Fund related to funds invested in the freehold property in which the company has a no further interest after being sold during the prior year.
Page 29
ACTION4YOUTH
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
18. Statement of funds (continued)
Transfers during the prior year were due to the sale of the Longrigg property, with all balances transferring back into the general funds, as agreed with Milton Keynes Council.
Statement of funds - prior year
| Balance at 1 April 2019 £ Designated funds Development fund 14,800 Richard Swann Bursary fund 775 15,575 General funds General Funds - all funds 265,619 Caldecotte Xperience 278,658 Longrigg Residential Centre 45,820 590,097 Total Unrestricted funds 605,672 Restricted funds Balance at 1 April 2019 £ Caldecotte Property Fund 209,012 Longrigg Property Fund 34,754 243,766 Total of funds 849,438 |
Income £ - - - 1,082,871 906,644 - 1,989,515 1,989,515 Income £ 10,000 24,261 34,261 2,023,776 |
Expenditure £ - - - (1,247,625) (722,527) (7,386) (1,977,538) (1,977,538) Expenditure £ (25,946) - (25,946) (2,003,484) |
Transfers in/out £ - - - 97,449 - (38,434) 59,015 59,015 Transfers in/out £ - (59,015) (59,015) - |
Gains £ - - - 928 - - 928 928 Gains £ - - - 928 |
Balance at 31 March 2020 £ 14,800 775 15,575 199,242 462,775 - 662,017 677,592 Balance at 31 March 2020 £ 193,066 - 193,066 870,658 |
|---|---|---|---|---|---|
Page 30
ACTION4YOUTH
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
18. Statement of funds (continued)
Summary of funds - current year
| Balance at 1 April 2020 £ Designated funds 15,575 General funds 662,017 677,592 Restricted funds 193,066 870,658 Summary of funds - prior year Balance at 1 April 2019 Income £ £ Designated funds 15,575 - General funds 590,097 1,989,515 605,672 1,989,515 Restricted funds 243,766 34,261 849,438 2,023,776 |
Income Expenditure £ £ - - 1,073,477 (1,045,386) 1,073,477 (1,045,386) 10,000 (25,925) 1,083,477 (1,071,311) Expenditure Transfers in/out £ £ - - (1,977,538) 59,015 (1,977,538) 59,015 (25,946) (59,015) (2,003,484) - |
Gains £ - (987) (987) - (987) Gains £ - 928 928 - 928 |
Balance at 31 March 2021 £ 15,575 689,121 |
|---|---|---|---|
| 704,696 177,141 |
|||
| 881,837 | |||
| Balance at 31 March 2020 £ 15,575 662,017 |
|||
| 677,592 193,066 |
|||
| 870,658 |
Page 31
(A Company Limited by Guarantee)
ACTION4YOUTH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
19. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Analysis of net assets between funds - current year | ||
|---|---|---|
| Unrestricted funds 2021 £ Tangible fixed assets 390,739 Current assets 754,362 Creditors due within one year (312,464) Creditors due in more than one year (99,074) Provisions for liabilities and charges (28,867) 704,696 Analysis of net assets between funds - prior year Unrestricted funds 2020 £ Tangible fixed assets 441,946 Current assets 683,283 Creditors due within one year (300,523) Creditors due in more than one year (112,911) Provisions for liabilities and charges (34,203) 677,592 |
Restricted funds 2021 £ 293,365 - (116,224) - - 177,141 Restricted funds 2020 £ 329,568 - (136,502) - - 193,066 |
Total funds 2021 £ 684,104 754,362 (428,688 (99,074 (28,867 881,837 |
| Total funds 2020 £ 771,514 683,283 (437,025) (112,911) (34,203) 870,658 |
20. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income for the year (as per Statement of Financial Activities) Adjustment for: Depreciation charges Gains on investments Loss/(profit) on the sale of fixed assets Decrease/(increase) in debtors (Decrease)/increase in creditors Defined benefit pension scheme adjustment Net cash provided by operating activities |
2021 £ 12,166 98,673 - 14,371 103,205 (22,174) (5,336) 200,905 |
2020 £ 20,292 90,629 928 (24,261) (44,820) 62,033 (7,289) |
|---|---|---|
| 97,512 |
Page 32
(A Company Limited by Guarantee)
ACTION4YOUTH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
21. Analysis of cash and cash equivalents
| Analysis of cash and cash equivalents | ||
|---|---|---|
| Cash in hand Total |
2021 £ 656,852 656,852 |
2020 £ 482,567 |
| 482,567 |
22. Pension commitments
The charitable company operates a Defined benefit pension scheme.
Action4Youth participates in The Pensions Trust’s Growth Plan (the Plan). The Plan is funded and is not contracted-out of the State scheme. The Plan is a multi-employer pension plan.
Contributions paid into the Plan up to and including September 2001 were converted to defined amounts of pension payable from Normal Retirement Date. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement, either within the Plan or by the purchase of an annuity.
The rules of the Plan give the Trustee the power to require employers to pay additional contributions in order to ensure that the statutory funding objective under the Pensions Act 2004 is met. The statutory funding objective is that a pension scheme should have sufficient assets to meet its past service liabilities, known as Technical Provisions.
As at the balance sheet date, Action4Youth had one active member of the Plan. Action4Youth has closed the Plan to new entrants.
The charity has calculated the deficit under the net present value of future cash flows method, permitted under FRS 102, the deficit of the pension scheme is £28,867 is materially correct.
The contributions made for the year ended 31 March 2021 were £30,869 (2020 - £28,912) of which £7,092 (2020 - £6,886) were deficit payments. Therefore the charge to the Statement of Financial Activities is £23,777 (2020 - £22,026).
Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages) :
| 2021 | 2020 | |||
|---|---|---|---|---|
| Discount rate at | 31 | March | 0.66% | 2.53% |
Page 33
(A Company Limited by Guarantee)
ACTION4YOUTH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
22. Pension commitments (continued)
Value of scheme assets and liabilities
| Net pension liability Movements in deficit during the year: Deficit in scheme at beginning of year Interest expense Contributions Actuarial (gain)/loss Deficit in scheme at end of year |
2021 2020 £ £ 28,867 34,203 2021 2020 £ £ 34,203 41,492 769 525 (7,092) (6,886) 987 (928) 28,867 34,203 |
|---|---|
23. Operating lease commitments
At 31 March 2021 the total of the Charity’s future minimum lease payments under non-cancellable operating leases was:
| Amounts payable: Within 1 year Between 1 and 5 years After more than 5 years Total |
2021 £ 33,441 105,379 247,758 386,578 |
2020 £ 46,279 119,009 247,758 |
|---|---|---|
| 413,046 |
24. Post balance sheet events
The company has been impacted pre and post year end as a result of COVID-19. Currently the extent of the financial impact is uncertain but the company is confident that with the various government support schemes it will be able to minimise the financial impact during 2021/2022 and is still therefore considered to be a going concern.
25. Controlling party
The Trustees believe that there is no ultimate controlling party.
Page 34
ACTION4YOUTH
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
26. Company limited by guarentee
The company is limited by guarantee without share capital.
Page 35