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2021-03-31-accounts

MAYDAY TRUST (A company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

31 MARCH 2021

Company number: 02911222 Charity number: 1035524

CONTENTS

Page
Directors’ and Trustees’ Report 1
Independent Auditor’s Report 15
Statement of Financial Activities 19
Summary Income and Expenditure Account 20
Balance Sheet 21
Statement of Cash Flows 22
Notes to the Financial Statements 23
Donors, Funders and Supporters 40

MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

The trustees who are also the directors for the purposes of company law, are pleased to present their report and financial statements for the year ended 31 March 2021.

Reference and Administrative Information

Charity Name Mayday Trust Charity Registration Number 1035524 Company Registration Number 02911222 Registered Office 85 Great Portland Street, London, W1W 7LT

The Board of Trustees

The Board of Trustees who served during the year and up to the date of this report were as follows:

A Meehan (resigned 11 May 2020) S Brown V Bowen J Chambers (appointed 21 January 2021) A Hudson W Man (appointed 21 January 2021) J McEver (Chair) J Mollring T Murtha D Paskins (appointed 21 January 2021) K Starling

Company Secretary

J Atkin

Senior Executive Team

Chief Executive – P McArdle Director of Development and Strategic Partnerships – L Mumford Director of Finance and Resources – J Atkin Director of PTS – C Collis Director of Change – R White (from 28 September 2020)

Auditors

Investment Managers

Bankers

Cooper Parry Group Limited Chartered Accountants Statutory Auditors Park View, One Central Boulevard Blythe Valley Park Solihull B90 8BG

Rathbone Investment Managers HSBC Bank plc Port of Liverpool Building 15 Church Street Pier Head Rugby Liverpool Warwickshire L3 1NW

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

Summary of the year

Mayday Trust continues to evolve based on the ongoing learning, challenge and change that comes from listening to people we work with. This year has been no exception.

The Wisdom from the System listening inquiry in 2020 heard from people with direct experience of support systems and those working within them, and made it crystal clear that Mayday’s mission as a grassroots based influencer for systemic change was needed more than ever.

In response, Mayday went through the next phase of our transformation with the decision to withdraw from providing supported housing and focus fully on our role as an agency for systemic change across the UK. Keeping our grounding in our grassroots operations through the PTS both through Mayday Trust and our partners, we will now be able to focus our energy and passion toward delivering the core mission of the organisation - to offer Personled, Transitional and Strength based responses for people going through the toughest of times in our communities and utilising the learning to influence others so that the systems finally work for people.

Our strategy has always been to contribute a level of our reserves to enable us to do this, whilst attracting like-minded funding partners to learn and develop alongside us. We now plan to build upon this to widen our impact by attracting a broader spectrum of individuals, income sources and investors into our work.

The experience of the Covid-19 pandemic, alongside the results of an independent external evaluation, has given us the evidence that the Person-led, Transitional and Strength base response, the PTS, works for people going through the toughest and most unprecedented of times. We are excited to take this forward as we continue to evolve through our systems change journey across the UK.

Activities, Achievements and Performance

Move away from Supported Housing

Having taken the strategic decision to withdraw from the direct provision of supported accommodation, during the year the successful transfer of 182 units of supported accommodation took place across Northamptonshire, and Westminster with a further 21 units transferring in Oxford in May 2021. The Trustees are pleased to report that individuals living in the accommodation received full continuity of service and were able to remain in their homes during the transfer.

Our long-term partner, Changing Lives, have taken over:

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

Through our jointly held commitment to the PTS response, Mayday and Changing Lives continue to work in partnership to offer individuals living in the housing access to PTS coaches who walk alongside people as they lead their own transitions toward the lives they want for themselves.

From May 2021, through a sub-contractual arrangement for a contract which ends in March 2022, Connection Support now manage 21 units of accommodation in Oxford on our behalf.

We would like to thank the people living in the accommodation, the housing teams, PTS coaches, Changing Lives, Connection Support, and the open-minded and supportive commissioners in Oxford and Westminster, who ensured a smooth transfer for all involved.

New System Alliance

In 2020, with thanks to the National Lottery Community Fund and alongside our partners Changing Lives in the North of England, Platfform in Wales and Homeless Network Scotland, we officially launched the New System Alliance.

The New System Alliance is a collective of allies: individuals and organisations who come together to create total change to the systems encountered by people going through tough times in the UK, through embedding the PTS response as a methodology for grassroots learning and change. The focus is on creating an environment that allows people to have choice and control over their lives.

To inform the direction of the New System Alliance, a deep listening inquiry was carried out with over 130 individuals. The published ‘Wisdom from the System’ highlighted again that the current systems are not working for people who access them. It also exposed that whole communities are excluded from the right type of support and are left out of systems altogether. This has validated our call for an urgent need for total paradigm shift in systems: we believe firmly that building this movement of individuals, organisations and commissioners coming together to model change is the right way forward.

The launch of the New System Alliance was held virtually over five consecutive days in December and attracted an audience of 320 participants and 34 contributors. This included people with direct experience of systems, individuals from across the UK and reached an International audience with speakers from California, including Stanford University. We have attracted over 200 individuals as committed Allies to the movement for systemic change which continues to grow in numbers and reach.

Impact of the PTS

We have now met and exceeded our target of working with 2000 individuals with 2016 people having accessed the PTS response through Mayday Trust and partner organisations.

We have seen the following positive outcomes:

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

Indicative evidence from our New Economics Foundation (NEF) evaluation supports the PTS theory of change that by working in a person-led way and focusing on individual assets and strengths, these outcomes are more likely to be sustained. The focus on building community based friendships and relationships also indicates that people are more likely to thrive without the need for professional support services.

We have also seen a strong trend that, given choice and control, people opt to enter employment before exploring education, training or volunteering which is in contrast to many of the employment pathway models that are common in the sector.

Between April 2020 and the end of March 2021, 724 people took up the PTS offer via Mayday, Changing Lives, The Brick, Four Square, and Y-People. The numbers of individuals starting the PTS during the year stood at 316. This is lower than the expected annual average but is reflective of the impact of the Covid pandemic and we hope this will increase as we go forward.

As we reach the end of our two and half year external evaluation with NEF the initial quantitative data has evidenced that the PTS works as a response that builds on people’s abilities and strengths and by doing so, they transition out of their tough times. This is hugely validating and proves our research question, that by increasing individual assets and strengths, positive outcomes are naturally achieved.

The report highlights that:

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

Influencing through doing

A core driver of our work is to take what we have learned and heard through working with people in communities through the PTS, and share it through multiple platforms to influence wider change through others.

This year, as well as launching our own platform for influence through the New System Alliance, we have also:

Our influencing work with commissioners was embedded through a PTS Transitions Pilot with Haringey Borough Council in London where two PTS coaches are modelling a personled, transitional and strength based response with individuals going through tough times across the borough. This has become an exciting expansion opportunity and allows the organisation to influence the local authority commissioners directly.

The PTS System Reflect course was extremely popular this year, attracting over 100 individual participants. The move to digital delivery has made the session more accessible and has widened the reach, enabling more people to attend.

The PTS level 4 Qualification with Coventry University saw sixteen individuals graduate from the course. Positive feedback highlighted the impact of the qualification to challenge and change traditional thinking and practice, further building our movement toward grassroots systemic change.

Y-People and Four Square in Scotland, West London Mission in England and Platfform in Wales joined us to offer the PTS to people within their communities. There are now 35 PTS Coaches embedding the response across the UK.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

Covid-19

The Covid-19 pandemic had a huge impact on all of us within Mayday Trust, those who lived in our housing and people who worked with PTS coaches.

Our core learning from the pandemic highlighted the importance of staying true to our values of ensuring individuals retain choice and control and receive a person-led and strength based response at all times; balancing this with our duty of care, especially for those living in our accommodation.

We saw how individuals were able to not only stay safe, with no reported cases of Covid-19 in our accommodation during the year, but were also able to adapt and access the community in new, creative ways. We hope to see these new routes to community access continue as we move into next year.

The pandemic accelerated our plans to move our PTS training, recruitment and the PTS qualification to digital platforms. This has allowed us to continue to work with individuals, practitioners and organisations beyond our usual reach.

Westminster City Council, alongside PwC, commissioned Mayday to carry out a listening inquiry to capture the voices of people sleeping rough, living in hotels or hostels, or those who sought their own solutions during the Covid-19 lockdown in Westminster. Through unstructured conversations with over 60 individuals, we captured people’s experiences and published them in a report entitled ‘Wisdoms from the Pandemic’.

Covid-19 highlighted the value and strength of our long term funding partnership and we were grateful to receive over £200,000 from existing and new funders to ensure that we were able to keep people in their homes and continue to offer the right support at the right time, without a negative impact on the finances of our organisation.

New appointments

Our continued focus on adaptation and influence saw four new significant appointments to the Mayday team both at Board and senior management level.

We welcomed former Lead Rough Sleeping Commissioner at Westminster City Council, Robert White as Mayday’s Director of Change. This bold move will allow Mayday Trust to expand our influence and reach to bring about systemic change within local authorities and national government.

Our Board welcomed three new Trustees - Dan Paskins, Director of Impact at Save the Children UK; Jacqueline Chambers, Deputy CEO at Victoria Bid and Winnie Man, Executive Director at Morgan Stanley. Between them they bring a wealth of experience from the charity, Government and Business sectors and we are extremely grateful for their passion, dedication and support as we move into the next phase of our evolution.

We would also like to take this opportunity to say thank you to all those who left Mayday Trust during the year, in particular our former chair, Andrew Meehan. Also to Pat McArdle,

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

who will be retiring from the position of CEO at the end of August 2021 after 10 years of transformative and inspirational leadership.

Their commitment to the mission and people we work with is recognised and hugely appreciated. We know that the core values of the PTS that lives within all who work with us will continue to influence within the different avenues that they have taken.

Funding partnerships

We were delighted to receive new funding support from the Oak Foundation, who saw the principles of the PTS combine with their focus on creating opportunities and building strong communities where everyone can thrive and live dignified lives. Through this partnership, Mayday will be able to share our learning and impact of the PTS further and work with more individuals and organisations across London and the South East of England.

Building upon our long term relationship with Lankelly Chase Foundation, Mayday has implemented a new PTS transitions pilot alongside Haringey Borough Council to inform the development of person-led and strength based commissioning.

Tudor Trust continued to invest in our joint, ongoing learning to explore new ways of offering people going through tough times, direct access to the PTS within communities and outside of traditional referral routes. This will provide the grounding for an existing new prototype called ‘The Alternative’.

Both Lankelly Chase Foundation and Tudor Trust have been alongside Mayday since our Proof of Concept in 2014 and we are hugely grateful for their commitment, insight and genuine partnership as the PTS embeds as a significant response and grassroots methodology for systems change for thousands of individuals across the UK.

Financial Review of the Year

Due to the withdrawal from the provision of accommodation, which started mid way through the year, income from charitable activities reduced by £1,005k. The reduction in expenditure was smaller due to the considerable cost of dilapidations, as properties were handed back to landlords. Income from trusts and foundations reduced slightly, by £70k. Much of this income is restricted and the detail is shown in note 15.

Investment performance generally improved after last year’s unrealised losses incurred as at the onset of the coronavirus pandemic resulting in an overall improvement of £154k this year.

After taking account of the cost of dilapidations the overall net movement in funds was a reduction of £274k. Included in this discontinued activities resulted in a reduction of reserves of £490k offset by surpluses in restricted and unrestricted funds.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

Future Plans

With the bold move away from supported housing, Mayday Trust is now able to re-profile and focus the capacity of the organisation fully on our systems change work across the UK, influencing through doing as we continue to offer the PTS response through Mayday Trust and our growing network of PTS coaches.

Our core focusses for the year include:

Attracting more individuals to the PTS network

Growing our influence through doing

PTS Transitions Pilots and government influence

Data and Impact

Income Generation

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

Structure, governance and management

Governing Document

Having formed in 1976, in 1979 Mayday Trust was established as a registered charity and in 1994 became a company limited by guarantee, having no share capital.

The charitable company was established under a Memorandum of Association, which was last amended on 22 September 2017 and which established its objects and powers, and it is governed under its Articles of Association. In the event of the charitable company being wound up, directors are required to contribute an amount not exceeding £1.

Objects

Mayday works with people going through the toughest of times – homelessness, leaving care, coming out of prison, fleeing violence.

We believe that tough times should be a brief transition in someone’s life, not a life choice or a life sentence.

A request for change to the charitable company’s objects is with the Charity Commission. At time of publication they are to:

Public Benefit

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. Further details on the activities undertaken by Mayday during the year are given above in the section Activities, Achievements and Performance.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

Legal and Policy Context

Mayday Trust is governed by the Charity Commission rules, the Companies Act and the regulatory frameworks of service commissioners. The Charity has no statutory obligation to provide services, but some of the services provided are covered by legislation and other statutory regulations, including Children’s Acts, which apply to all service provision for young people and children.

Recruitment and Appointment of Trustees

The recruitment and appointment of Trustees is governed by the Principal Rules, which provides a summary and operational guide for interpreting and implementing the Memorandum and Articles of Association. Directors are appointed for an initial period of three years, commencing on the date of their appointment and may apply for re-election to serve a second period of three years. After serving for a second period, the Director may offer him or herself for re-election for a further three years. Second and third terms require Board Approval.

The Board of Trustees must comprise between three and twelve members. Trustees have the power to appoint Trustees to fill the casual vacancies or add to the number of Trustees.

The Board of Trustees meets at least six times a year and Trustees focus on governance and strategy, significant new business, risk and financial issues. The Board is supported by the Finance and Investment Sub-Committee.

Following Andrew Meehan retiring, Julie McEver became the new Chair and a successful recruitment process commenced leading to the appointment of three new trustees; Jacqueline Chambers, Winnie Mann and Dan Paskins.

Trustees are inducted using digital information along with induction meetings with the Chair, Chief Executive and other staff.

Organisational Structure

The day-to-day management of the organisation is delegated to the Chief Executive, who is supported by a Senior Management Team comprising of:

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

Pay Policy for Senior Staff

The Board of Trustees and the Senior Management Team are the key management personnel of the charity in charge of directing and controlling, running and operating Mayday. All Trustees give of their time freely and no Trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions are disclosed in note 7 to the accounts.

The pay of the senior staff is reviewed annually. In view of the nature of the charity, the Trustees benchmark against pay levels in other charities of a similar size and operation. The remuneration bench-mark is the mid-point of the range paid for similar roles adjusted for any additional responsibilities.

Going Concern

Trustees confirm that, after making enquiries, they have a reasonable expectation that Mayday has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the accounts.

The Covid-19 pandemic has had a financial impact on Mayday, in particular reducing income from accommodation when it was not safe to re-let empty rooms in shared houses, and by delaying the start of projects where up-front costs had been incurred.

Most of the impact has been short term but thanks to the generosity of our main funders, as well as government grants, Trustees do not believe that the pandemic puts the ongoing viability of Mayday at risk.

Reserves Policy

Trustees have reviewed Mayday’s requirement for reserves in line with the guidance issued by the Charity Commission. As at 31 March 2021, Mayday was holding £120k in free reserves. Trustees believe that in order to safeguard the charity's services and the obligations to staff and creditors in the event of delays in the receipt of grants, or any shortfall in fundraising income, free reserves need to be at least three month's running costs of the organisation excluding housing, which equates to £85k.

Total reserves amounted to £2,482k, of which £626k are restricted and £1,856k are unrestricted. Of the unrestricted funds, £1,470k are designated to reflect the investment made over the years in operational assets, which are not convertible into cash without affecting the operational running of the business, and are not therefore considered to be freely available. A further £265k has been designated to reflect the ongoing requirement to maintain Mayday’s infrastructure and the requirement for further restructure of Mayday’s activities. Further information is provided in note 14 of the accounts.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

Investment Policy

The Trustees must balance competing priorities when investing the charity's assets; to use the assets to generate a reasonable income, whilst investing them safely and in such a way that they are easily accessible to support cash flow or to make up a funding shortfall. At the end of the financial year, Mayday had £624k invested (Note 10).

Given the flexibility and multiple uses of these investments, coupled with low interest rates during the year, it is the Trustees' opinion that the return on investments was reasonable.

Risk Management

Trustees have responsibility for the management of the risks identified by the charity and are assisted by the Senior Management Team to mitigate these. A full risk audit is conducted as part of the annual review of the Business Plan objectives. Routine risks are identified, assessed and managed through rigorous controls on an ongoing basis.

Trustees are satisfied that the major risks identified have been mitigated where necessary. It is recognised that systems cannot eliminate all risks but only provide assurance that the identified risks have been managed.

The principal risks to Mayday and the established mitigating actions, are:

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

Statement of Trustees’ Responsibilities

Trustees are responsible for preparing the Directors’ and Trustees’ Report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepting Accounting Practice).

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

The directors are responsible for keeping adequate accounting records that 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions. In so far as the directors are aware:

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2021

Approved by the Board of Trustees on 22 July 2021 and signed on its behalf by:

Julie McEver Chair of the Board of Trustees for Mayday Trust

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MAYDAY TRUST (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAYDAY TRUST

Opinion

We have audited the financial statements of Mayday Trust (the ‘charitable company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Directors’ and Trustees’ Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other

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MAYDAY TRUST (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAYDAY TRUST (continued)

information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ and Trustees’ Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 13, the trustees 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.

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MAYDAY TRUST (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAYDAY TRUST (continued)

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.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Our assessment focussed on key laws and regulations the charitable company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, Charities Act 2011, Charities (Protection and Social Investment) Act 2016, taxation legislation, data protection, anti-bribery and employment legislation.

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

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MAYDAY TRUST (A company limited by guarantee)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MAYDAY TRUST (continued)

Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Atkins FCA Senior Statutory Auditor for and on behalf of:

Cooper Parry Group Limited

Chartered Accountants and Statutory Auditor One Central Boulevard, Blythe Valley Park, Solihull, West Midlands B90 8BG

22 July 2021

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MAYDAY TRUST (A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES Year ended 31 March 2021

Continuing Discontinued Continuing
Operations
Operations Operations
Unrestricted Unrestricted Restricted
Note
Funds
Funds
Funds
£
£
£
Income from:
Donations and legacies
2
145,700
1,802
682,764
Investments
3
12,912
-
-
Charitable activities
4
487,088
1,418,130
-



Total income
645,700
1,419,932
682,764



Expenditure on:
Raising funds
5a
216
-
-
Charitable activities
5b
584,034
1,910,389
680,814



Total expenditure
584,250
1,910,389
680,814

Realised and unrealised gains/(losses)
on investments
10
153,548
-
-

Net movement in funds
214,998
(490,457)
1,950
Reconciliation of funds
Balances brought forward
1,640,311
490,457
624,408



Balances carried forward
14,15 1,855,309
-
626,358
 2021
Total
£
830,266
12,912
1,905,218

2,748,396

216
3,175,237

3,175,453

153,548

(273,509)
2,755,175

2,481,666
 2020
Total
£
904,032
17,826
2,910,073

3,831,931

3,679
3,509,899

3,513,578

(60,291)

258,062
2,497,113

2,755,175

Unrestricted funds relate to continuing and discontinued operations. Restricted funds relate to continuing operations only. An analysis of continuing and discontinued operations for the year ended 31 March 2020 is provided in note 22.

The notes on pages 23 to 39 form part of these financial statements.

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MAYDAY TRUST (A company limited by guarantee)

SUMMARY INCOME AND EXPENDITURE ACCOUNT Year ended 31 March 2021

Note Continuing Discontinued
2021		 2020
Operations Operations
£ £
£		 £
Income 1,315,553 1,419,932
2,735,485		 3,814,150
Expenditure (1,265,064) (1,910,389) (3,175,453) (3,513,578)
__ __
__		 __
Net operating (deficit)/surplus 50,489 (490,457)
(439,968)
300,527
Interest receivable and similar income 3 12,912 -
12,912		 17,826
__ __
__		 __
Net (deficit)/surplus for the year 63,401 (490,457)
(427,056)
318,353

An analysis of continuing and discontinued operations for the year ended 31 March 2020 is provided in note 23.

The notes on pages 23 to 39 form part of these financial statements.

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MAYDAY TRUST

(A company limited by guarantee)

BALANCE SHEET as at 31 March 2021

Registered Number 02911222

Note
Fixed assets
Tangible assets
9
Investments
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors:amounts falling due
within one year
12
Net current assets
Net assets
Funds
Unrestricted funds
Designated funds
14
General funds
14
Revaluation reserve
14
Total Unrestricted funds
Restricted Funds
15
£
471,337
289,854

761,191
(373,711)
_		 2021
£
1,469,814
624,372
_
2,094,186
387,480
_
2,481,666

526,814
120,494
1,208,000
_
1,855,308
626,358
_
2,481,666
£
438,231
555,258

993,489
(233,766)
_
 2020
£
1,474,628
520,824
_
1,995,452
759,723
_
2,755,175

493,753
441,139
1,195,875
___
2,130,767
624,408
__
2,755,175

The notes on pages 23 to 39 form part of these financial statements.

These financial statements were approved by the Board of Trustees on 22 July 2021 and are signed on their behalf by:

K Starling Trustee

J McEver Trustee

21

MAYDAY TRUST (A company limited by guarantee)

STATEMENT OF CASH FLOWS

Year ended 31 March 2021

2021 2020
£ £
Net cash (used in)/provided by operating activities 19 (315,469) 15,196
Cash flows from investing activities
Interest income 65 121
Investment disposals 10 150,000 128,892
Movement in cash held by investment manager 10 - 271,108
Investment additions 10 (100,000) -
_ _
Cash provided/(used in) by investing activities 50,065 400,121
_ _
(Decrease)/Increase in cash and cash equivalents in the year (265,404) 415,317
Cash and cash equivalents at the beginning of the year 555,258 139,941
_ _
Total cash and cash equivalents at the end of the year 20 289,854 555,258

22

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

1 Accounting policies

1.1 Basis of preparation

Mayday Trust is a charity limited by guarantee in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on 1 of these financial statements. The nature of the charity’s operations and principal activities are the provision of good quality housing and support services to vulnerable people.

The charity constitutes a public benefit entity as defined by FRS 102. 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) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2 Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).

1.3

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Charitable expenditure comprises those costs incurred by the charitable company in the delivery of its activities and services for its beneficiaries.

23

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

Accounting policies (continued)

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charitable company and include audit fees and costs linked to the strategic management of the charitable company.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity comprise both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

1.4

Fund accounting

Restricted funds

Restricted funds represent grants and donations received which are subject to restrictions on their expenditure imposed by the donor or through the terms of an appeal. The aim and use of each restricted fund is set out in the notes to the financial statements.

Unrestricted funds and designated funds

Unrestricted funds represent funds that are expendable at the discretion of the directors in the furtherance of the objects of the charitable company. Such funds may be held in order to finance both working capital and capital investment.

Designated funds are those funds which are unrestricted in nature but which have been designated by the directors to be used in a particular manner.

1.5 Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Freehold property is not depreciated as the high residual value renders depreciation immaterial.

Depreciation is provided on all other tangible fixed assets, at 25% on a straight line basis in order to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life.

Assets purchased which are under £2,500 are expensed to the Statement of Financial Activities.

1.6 Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains/(losses) on investments’ in the Statement of Financial Activities if the shares are publicly traded or their fair value can otherwise be measured reliably.

1.7 Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

All tenant arrears balances are individually reviewed and a full provision is made for all arrears which are considered to be doubtful.

24

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

Accounting policies (continued)

1.8 Recognition of liabilities

Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.

1.9 Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measures at present value.

1.10 Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

1.11 Employee benefits & redundancy costs

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in for that service.

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expenses as they become payable.

Redundancy costs arising from periodic reviews of staff levels are charged to the Statement of Financial Activities in the year in which employees leave the group.

1.12 Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed reasonable under the circumstances.

Tenant arrears balances are individually reviewed and a specific provision is made for all arrears which are considered to be doubtful.

Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.

1.13 VAT

VAT is not recoverable by the charitable company. Irrecoverable VAT is included within the relevant costs in the Statement of Financial Activities.

1.14 Tax

The charitable company is a charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

25

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

Accounting policies (continued)

1.15 Leases

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future charges, are included in creditors.

Rentals payable and receivable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

1.16 Going concern

The financial statements have been prepared on a going concern basis.

The ongoing coronavirus pandemic is having a significant global economic impact. Nevertheless, thanks to the generosity of our main funders Mayday has been able to mitigate the impact of Covid19 (see the Going Concern section in the Trustees’ report) and is, at the date of signing these statements, part of the way through a £2.6 million five year grant funded project. In addition some projects which were delayed due to the pandemic have now started.

Having prepared a budget for the financial year 2021/22 and having considered the level of funds held, the trustees believe that this is sufficient for the charity to be able to continue as a going concern.

26

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

2
Donations and legacies
Unrestricted Discontinued Restricted
Funds
Activities
Funds
£
£
£
Grants and donations
113,770
-
682,764
Coronavirus job retention scheme
31,930
1,802
-
_
__
_____

145,700
1,802
682,764
 2021
Total
£
796,534
33,732
_

830,266
 2020
Total
£
904,032
-
_
904,032

Of the total income of £904,032 received in 2020, £7,285 related to unrestricted funds and £896,747 related to restricted funds. During the year Mayday did not receive any legacies (2020: nil).

Included in unrestricted grants is £33,732 (2020: nil) in respect of claims made for staff who were furloughed under the government’s Coronavirus Job Retention Scheme. The associated cost of these employees is disclosed in staff costs in note 7.

3 Investment income Unrestricted Discontinued Restricted 2021 2020
Funds Activities Funds Total Total
£ £ £ £ £
Listed investments 12,847 - - 12,847 17,705
Bank interest receivable 65 - - 65 121
______ ______ ______ ______ ______
12,912 - - 12,912 17,826

All investment income received in 2021 and 2020 related to unrestricted funds.

4 Grants and other funding for
 Unrestricted Discontinued Restricted 2021 2020
Provision of Services Funds Activities Funds Total Total
£ £ £ £ £
Gross accommodation charges
276,934		 1,353,037 - 1,629,971 2,178,063
Accommodation voids (21,100)
(201,373)
-		 (222,473) (155,471)
Social impact bond 10,000 - - 10,000 120,000
Service contracts and grants 170,299 266,467 - 436,766 709,166
Innovation partners & influencing
31,687		 - - 31,687 58,315
Property income 19,267
-		 - 19,267 -
__ __ __ __ __
487,088 1,418,130 - 1,905,218 2,910,073

All Grants and Funding for the Provision of Services in 2020 related to unrestricted funds.

27

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

5a Cost of raising funds Unrestricted Discontinued Restricted 2021 2020
Funds Activities Funds Total Total
£ £ £ £ £
Other costs 216 - - 216 3,679
______ ______ ______ ______ ______
216 - - 216 3,679

All of the costs of raising funds incurred in 2020 related to unrestricted funds.

5b Cost of charitable activities

The Trustees consider that the main charitable activities of Mayday Trust are the provision of person led support to those going through tough times (which during the year also included the provision of accommodation) whilst working towards changing to the traditional, institutionalising support systems. Accordingly, the costs of the charitable company are attributable to this purpose.

Unrestricted Unrestricted Discontinued Restricted 2021 2020
Funds Activities Funds Total Total
£ £ £ £ £
Wages and salaries 211,806 380,122 536,095 1,128,023 1,473,286
Staff training recruitment & other HR 3,416 89 85 3,590 33,564
Rent and charges 120,679 537,606 19,749 678,033 931,317
Repairs and renewals 18,731 503,808 5,828 528,367 171,805
Utilities and service charges 12,643 63,456 - 76,099 114,018
Council tax and rates 12,580 44,577 - 57,157 79,614
Security costs 32,431 122,951 21,910 177,292 110,075
Cleaning costs 7,507 26,282 - 33,789 52,000
Health & Safety costs 1,992 46,725 - 48,717 16,490
Environmental costs 379 14,849 - 15,228 19,960
Influencing and communications 43,920 - 85,917 129,837 93,957
Travel and meeting expenses 5,414 6,448 2,322 14,185 81,468
Licences and rentals 6,770 14,495 - 21,265 50,415
Telephone and broadband 7,535 11,105 1,650 20,290 34,254
Computer costs 20,478 101 - 20,579 22,018
Insurance 18,043 - - 18,043 18,809
Consultancy and professional fees 6,745 24,952 - 31,697 26,493
Personal budgets 1,659 1,905 2,459 6,023 13,329
Office supplies and stationery 11,014 836 579 12,429 9,570
Bad debts 14,349 93,620 - 107,969 105,146
Depreciation 4,814 - - 4,814 4,810
Other expenses 9,267 16,462 4,220 29,949 31,492
Governance costs (note 6) 11,863 - - 11,863 16,010
_ __ _ __ __
584,034 1,910,389 680,814 3,175,237 3,509,900

Of the total costs of £3,509,900 incurred in 2020, £3,237,560 related to unrestricted funds and £249,764 related to restricted funds.

28

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

6 Governance costs Unrestricted Unrestricted Discontinued Restricted
2021		 2020
Funds Activities Funds
Total		 Total
£ £ £
£		 £
Trustee expenses and training - - -
-		 1,060
Trustee meeting costs - - -
-		 1,086
Audit fees 10,590 - -
10,590		 7,270
Legal fees 1,273 - -
1,273		 6,594
_ _ _
__		 __
11,863
 -
 11,863
 16,010
7 Employees’ and Trustees’ remuneration 2021 2020
£ £
The aggregate payroll costs were:
Wages and salaries 961,591 1,210,647
Social security costs 97,134 116,384
Agency costs 12,696 77,843
Other pension costs 44,037 53,960
Benefit in kind 12,564 14,452
__ __
1,128,023 1,473,286

No trustee received remuneration during the year (2020: £nil).

No expenses were paid to Trustees in respect of travel and subsistence (2020: £539 paid to four trustees). The company paid £758 for trustee indemnity insurance (2020: £938). No expenses were paid to the Chief Executive during the year for travel and meetings (2020: £1,923).

The total amount of employee benefits received by key management personnel is £336,193 (2020: £353,198). The charitable company considers its key management comprise the Chief Executive Officer, Director of Finance and Resources, Director of PTS, Director of Change and Director of Development and Strategic Partnerships.

The employee benefits include redundancy payments made of £14,438 (2020: £55,490). This was made up of statutory redundancy payments of £11,589 (2020: £17,683), payments in lieu of notice of £1,684 (2020: £24,615) and ex-gratia payments of £1,165 (2020: £13,192). All of the redundancy payments were unfunded.

The table below shows details of the employees who received remuneration (including benefits) in excess of £60,000.

2021 2020
No. No
£60,000 - £70,000 1 1
£80,000 - £90,000 1 1

Pension payments in respect of the above employees was £7,000 (2020: £7,000).

29

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

Particulars of employees:
The average number of employees employed by the
charitable company during the financial year amounted to:
Head office
Operations
8
Net expenditure
Net expenditure is stated after charging:
Depreciation of owned assets
Auditors’ remuneration
Operating lease rentals:
- equipment
- land and buildings
9
Tangible fixed assets
Cost or deemed cost
At 1 April 2020
Disposals
At 31 March 2021

Depreciation
At 1 April 2020
Charge for the year
Disposals
At 31 March 2021
Net book value
At 31 March 2020
At 31 March 2021		 2021
No.
6
24
30
2021
£
4,814
10,590
9,998
659,850
Freehold
Property
Equipment
£
£
1,465,000
212,358
-
(193,103)
1,465,000
19,255
-
202,730
-
4,814
-
(193,103)
_
_
-
14,441
1,465,000
4,814
1,465,000
9,628		 2020
No.
6
34
40
2020
£
4,810
7,270
12,155
866,396
Total
£
1,677,358
(193,103)
1,484,255
202,730
4,814
(193,103)
__
14,441
1,469,814
1,474,628

30

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

In respect of assets stated at valuations, the comparable historical cost and depreciated values are as follows:

Net book value of revalued tangible fixed assets
Net book value at the end of year
Historical cost
At 1 April 2020
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Disposals
Charge for year
At 31 March 2021
Net historical cost book value
At 31 March 2021
At 31 March 2020		 2021
£
1,465,000
485,000
-
_
485,000
215,875
-
12,125
_
228,000
257,000
269,125		 2020
£
1,465,000
485,000
-
_
485,000
203,750
-
12,125
_
215,875
269,125
281,250

The properties owned by the charity were independently valued at open market value by Mr Nigel J Dale FRICS of George & Company Chartered Surveyors on 17 June 2016. This was a full valuation. As permitted by the transition rules of FRS 102, the trustees have taken this value as deemed cost and ceased their policy of revaluation from 1 April 2016.

10
Fixed asset investments
Movement in market value
Market value of investments at 1 April 2020
Additions
Disposals
Gains/(losses) in the year
Movement in cash
Market value of investments at 31 March 2021
Historical cost of investments at 31 March 2021		 2021
£
520,824
100,000
(150,000)
153,548
-
__
624,372
558,249		 2020
£
981,115
-
(128,892)
(60,291)
(271,158)
_
520,824
600,247

The investments comprise of a portfolio of funds managed by Rathbone Investment Managers. Of the investment value at 31 March 2021 £35 (2020: £1,767) represents cash awaiting reinvestment.

31

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

11
Debtors
Other debtors
Prepayments and accrued income
12
Creditors: amounts falling due within one year
Advance rental income
Other taxation and social security
Accruals and purchase ledger balances
Deferred income		 2021
£
82,347
388,990
_
471,337
2021
£
-
13,433
357,190
3,088
_
373,711		 2020
£
168,918
269,313
_
438,231
2020
£
26,951
32,948
173,867
-
_
233,766

13 Commitments under operating leases

At 31 March 2021 the charity had future minimum lease payments under non-cancellable operating leases as set out below:


leases as set out below:
2021 2020
Land and Other Land and Other
buildings items buildings items
£ £ £ £
Operating leases which expire:
Within one year 58,000 - 96,039 982
Within one to two years - - 309,951 750
Within two to five years - - 72,234 23,520
Greater than five years - - 299,236 -
_ _
58,000 - 777,460 25,252

32

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

14 Unrestricted Funds at 31 March 2021

Movement in resources Movement in resources Movement in resources
Balance at Incoming Outgoing Transfers and Balance at
01.04.2020 resources resources gains/(losses) 31.03.2021
£ £ £
£		 £
Fixed Asset funds
Tangible fixed asset fund
278,753		 - -
(16,939)		 261,814
Revaluation reserve 1,195,875 - -
12,125		 1,208,000
__ _ __
_		 __
1,474,628 - -
(4,814)		 1,469,814
Other Designated Funds
Dilapidation fund - 250,000 -
-		 250,000
Property repair fund 150,000 - 150,000
-		 -
IT upgrade fund 15,000 - -
-		 15,000
Restructuring fund 50,000 - 50,000
-		 -
__ _ __
_		 __
215,000 250,000 200,000
-		 265,000
Free reserves
General 441,139 1,815,632 2,294,639
158,362		 120,494
__ __ ___
__		 __
2,130,767 2,065,632 2,494,639
153,548		 1,855,308

Unrestricted Funds at 31 March 2020

Movement in resources Movement in resources Movement in resources
Balance at Incoming Outgoing Transfers and Balance at
01.04.2019 resources resources gains/(losses) 31.03.2020
£ £ £
£		 £
Fixed Asset funds
Tangible fixed asset fund
295,688		 - -
(16,935)		 278,753
Revaluation reserve 1,183,750 - -
12,125		 1,195,875
__ _ __
_		 __
1,479,438 - -
(4,810)		 1,474,628
Other Designated Funds
Development fund 120,000 - 120,000
-		 -
Property repair fund 150,000 - -
-		 150,000
IT upgrade fund 20,000 - 5,000
-		 15,000
Restructuring fund 80,000 50,000 80,000
-		 50,000
__ _ __
_		 __
370,000 50,000 205,000
-		 215,000
Free reserves
General 647,674 2,885,184 3,036,238
(55,481)		 441,139
__ __ ___
__		 __
2,497,113 2,935,184 3,241,238
(60,291)		 2,130,767

33

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

The income of the charity includes the above designated funds which have been set aside out of unrestricted funds by the Trustees for a specific purpose.

Tangible fixed asset fund

The purpose of this fund is to recognise the value of operational assets which are not freely convertible into cash.

Revaluation reserve

Regulations made under the UK Companies Act 2006 require a revaluation reserve to be set up when assets are revalued upwards. It represents difference between the historic cost of assets less depreciation and the revalued amount. This fund recognises this difference in respect of property and is not freely convertible into cash.

Dilapidation fund

Further dilapidation costs will be incurred in 2021-22 as a consequence of the decision to withdraw from the provision of supported accommodation.

IT upgrade fund

This fund will be utilised during 2021-22 as the server has come to the end of its useful life.

Development fund

This fund had been set aside in order to recognise that in expanding Mayday Trust’s new service offering, it was likely that the Trust would undertake contracts that were loss making in nature.

Property repair fund

This fund was set aside to cover any unusually large works required to properties.

Restructuring fund

This fund was established to finance the costs of any future restructuring.

15 Restricted Funds at 31 March 2021

Movement in resources Movement in resources Movement in resources
Balance at Incoming Outgoing Transfers and Balance at
01.04.2020 resources resources gains/(losses) 31.03.2021
£ £ £
£		 £
Revenue
nlcf – Moving to a People
Led System 256,957 361,046 366,632
-		 251,371
E Northants PTS - 11,997 11,997
-		 -
Esmee Fairbairn - 41,667 41,667
-		 -
Front Line Network 6,250 18,817 12,292
-		 12,775
Transitions Pilot 300,000 - 50,000
-		 250,000
Oak Foundation - 99,198 49,599
-		 49,599
Young Persons PTS 60,000 40,000 44,798
-		 55,202
MHCLG Covid-19 grant - 58,000 58,000
-		 -
Comic Relief Covid-19 grant
-		 40,000 40,000
-		 -
Wellbeing grants - 2,000 -
-		 2,000
Amazon - 5,000 -
-		 5,000
Small support grants 1,201 5,039 5,828
-		 411
__ __ ___
__		 __
624,408 682,764 680,814
-		 626,358

34

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

Restricted Funds at 31 March 2020

Restricted Funds at 31 March 2020
Movement in resources
Balance at Incoming Outgoing Transfers and Balance at
01.04.2019 resources resources gains/(losses) 31.03.2020
£ £ £
£		 £
Revenue
NLCF – Moving to a People
Led System 382,206 125,249
-		 256,957
East Northants Council PTS - 9,940 9,940
-		 -
PTS partnerships - 63,000 63,000
-		 -
Esmee Fairbairn Foundation - 50,000 50,000
-		 -
Front Line Network - 25,067 18,817
-		 6,250
Transitions Pilot - 300,000 -
-		 300,000
Young Persons PTS - 60,000 -
-		 60,000
Stephen Lloyd Award - 2,000 2,000
-		 -
Small support grants - 4,534 3,333
-		 1,201
__ __ ___
__		 __
- 896,747 272,339
-		 624,408

The restricted funds consist of donations and grants made to Mayday Trust for use solely in line with our mission.

National Lottery Community Fund – UK Fund – Moving to a People Led System

A five year, UK wide, National Lottery Community Fund Grant to extend the reach of the PTS response across the UK through the New System Alliance.

East Northamptonshire Council PTS

Homelessness prevention grant towards the cost of a PTS coach in East Northamptonshire.

Esmee Fairbairn Foundation

Funding towards the Director of Development and Strategic Partnerships to develop the PTS Innovation Partnership work across England.

St Martin in the Fields - Front Line Network

Funding for PTS Network development ‘Moving the Model Forward’, and delivery of events to Front Line Network.

Lankelly Chase Foundation – PTS Transitions Pilot

Core funding from Lankelly Chase Foundation to support the Alliance work and to prototype the PTS to inform the development of a new response to commissioning.

Oak Foundation

Grant for the development of the PTS through organisations and commissioners across London and the South East.

Paul Hamlyn Foundation and Rayne Foundation - Young Persons PTS

Grants from Paul Hamlyn Foundation and Rayne Foundation toward the salary and costs of a PTS coach to deliver young person led, transitional and strength based response for young people experiencing tough transitions including homelessness and leaving care or offending institutions.

MHCLG/Homeless Link Covid grant

To help mitigate the impact of both additional costs and loss of income due to the Covid-19 pandemic.

35

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

Comic Relief Covid-19 grant

To help mitigate the impact of both additional costs and loss of income due to the Covid-19 pandemic.

Tudor Trust and Lankelly Chase Foundation Wellbeing grants

Grant donations from Lankelly Chase Foundation and Tudor Trust to support staff wellbeing through the Covid-19 pandemic.

Amazon

Funding to support people we work with in Northamptonshire.

Small support grants

A range of grants supporting individual people we are working with.

Comic Relief, Garfield Weston Foundation and Tudor Trust - PTS partnerships

Funding from Garfield Weston, Comic Relief and Tudor Trust to deliver the England wide PTS Innovation Partnerships.

Stephen Lloyd Award

Donation to invest in a PTS explainer animation.

16 Analysis of net assets at 31 March 2021

Tangible
Investment
Other
fixed assets
assets
net assets
£
£
£
Restricted funds
-
300,000
326,358
Unrestricted funds
1,469,814
324,372
61,122
_
_
_
1,469,814
624,372
387,480
Analysis of net assets at 31 March 2020
Tangible
Investment
Other
fixed assets
assets
net assets
£
£
£
Restricted funds
-
-
624,408
Unrestricted funds
1,474,628
520,824
135,315
_
_
_
1,474,628
520,824
759,723		 Total
£
626,358
1,855,308
_
2,481,666
Total
£
624,408
2,103,767
_
2,755,175

17 Company limited by guarantee

36

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

The company is limited by guarantee and does not have a share capital. Each member’s liability is limited to a maximum of £1.

As at 31 March 2021 there were 10 members of the charitable company (2020: 8 members).

18 Capital Commitments

At 31 March 2021 and 31 March 2020 the charitable company had no capital commitments.

19 Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds (before investment losses)
Add back depreciation charge
Deduct interest income shown in investing activities
(Increase) in debtors
Increase/(decrease) in creditors
Net cash (outflow)/ inflow from operating activities		 2021
£
(427,057)
4,814
(65)
(33,106)
139,945
_
(315,469)		 2020
£
318,353
4,810
(121)
(187,681)
(120,165)
_
15,197

20 Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2021 2020
£ £
Cash in hand 289,854 355,258
Money market deposits - 200,000
__ __
289,854 555,258

21 Related party transactions

Transactions with Trustees are detailed in note 7 and there were no other transactions during the year.

37

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

22 Statement of financial activities year ended 31 March 2020

Continuing Discontinued Continuing
Operations
Operations Operations
Unrestricted Unrestricted Restricted
Funds
Funds
Funds
£
£
£
Income from:
Donations and legacies
7,285
-
896,747
Investments
17,826
-
-
Charitable activities
545,888
2,364,185
-



Total income
570,999
2,364,185
896,747



Expenditure on:
Raising funds
3,679
-
-
Charitable activities
1,366,818
1,870,742
272,339



Total expenditure
1,370,497
1,870,742
272,339

Realised and unrealised gains/(losses)
on investments
(60,291)
-
-

Net movement in funds
(859,789)
493,443
624,408
Reconciliation of funds
Balances brought forward
2,500,099
(2,986)
-



Balances carried forward
1,630,310
490,457
624,408
 2020
Total
£
904,032
17,826
2,910,073

3,831,931

3,679
3,509,899

3,513,578

(60,291)

258,062
2,497,113

2,755,175

Unrestricted funds relate to continuing and discontinued operations. Restricted funds relate to continuing operations only.

38

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2021

23 Summary income and expenditure report for the year ended 31 March 2020

Continuing Discontinued
2020
Operations Operations
£ £
£
Income 1,449,920 2,364,185
3,814,105
Expenditure (1,642,836) (1,870,742) (3,513,578)
__ __
__
Net operating (deficit)/surplus (192,916) 493,443
300,572
Interest receivable and similar income 17,826 -
17,826
__ __
__
Net (deficit)/surplus for the year (175,090) 493,443
318,353

39

MAYDAY TRUST (A company limited by guarantee)

DONORS, FUNDERS AND SUPPORTERS

Year ended 31 March 2021

Mayday Trust would like to thank all those who supported us during 2020/21. In particular, we would like to thank the many trusts, organisations, funders, local authorities and individuals who have contributed to our work with financial and in-kind donations.

National Lottery Community Fund 29th May 1961 Charitable Trust Comic Relief Oak Foundation Esmee Fairbairn Foundation Ian McTaggart Trust Lankelly Chase Foundation St Martin in the Fields – Frontline Network Tudor Trust Paul Hamlyn Foundation Rayne Foundation Davidson Mahon Solicitors St Mary’s Church Bloxham Amazon Smile

Commsortia East Northamptonshire Council Northamptonshire Healthcare Trust Oxford City Council Oxfordshire County Council Westminster City Council Ministry of Housing, Communities and Local Government Northamptonshire Council

Everyone who has donated to us as one-off or regular donations.

40