2022-03-31-accounts

MAYDAY TRUST (A company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

31 MARCH 2022

Company number: 02911222 Charity number: 1035524

CONTENTS

	Page
Directors’ and Trustees’ Report	1
Independent Auditor’s Report	14
Statement of Financial Activities	18
Summary Income and Expenditure Account	19
Balance Sheet	20
Statement of Cash Flows	21
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 2022

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 2022.

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:

S Brown V Bowen J Chambers A Hudson W Man J McEver (Chair) J Mollring T Murtha (until 17[th] March 2022) D Paskins K Starling (until 31[st] October 2021)

Company Secretary

J Atkin (until 24[th] November 2021)

Executive Leadership Team

Chief Executive – A Fox (from 4[th] January 2022) Chief Executive – P McArdle (until 27[th] August 2021) Director of Development and Strategic Partnerships – L Mumford (until 28[th] January 2022) Director of Finance and Resources – J Atkin (until 18[th] December 2021) Interim Director of Finance – A Orchard (from 7[th] February 2022) Director of PTS – C Collis

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MAYDAY TRUST

(A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

Director of Change – R White

Auditors

Investment Managers

Bankers

Cooper Parry Group Limited Chartered Accountants Statutory Auditors Sky View, Argosy Road East Midlands Airport Derby DE74 2SA

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 2022

Summary of the year

During this year Mayday lost our inspirational chief executive Pat McArdle who retired due to health reasons, and we spent much of the year led collectively by the team and board during a challenging period. We nevertheless completed much of the transformation that Pat initiated, from being a traditional housing and support charity for people who are homeless, to creating a new strengths-based and person-led approach to walking alongside people through tough times, and influencing radical change in public services. We are hugely grateful to Pat for her leadership, the radical legacy she has left the organisation with, and delighted that her health is recovering.

This was the first year since making the momentous decision to end our traditional work where we provided no traditional services. These services have all been taken on by partner organisations, allowing us to concentrate our efforts on inventing a new form of support, the PTS Response. In the first half of the year however, change management work remained considerable.

Our new chief executive, Alex Fox OBE, joined us in January with a strong track record of leading public service innovation and change. As we moved into a new season under Alex’ leadership, we took the opportunity to look at our work, direction and messaging with our team and in conversation with our partners and stakeholders. The major New Economics Foundation evaluation of our work published early in 2022, showed many positive impacts of our person-led, transitional and strengths-based approach to responding to people living through tough times, adding to the growing evidence of impact from our internal outcome and data gathering, increasing our confidence that the model works and should grow. We renewed and strengthened relationships with partners across the UK, codeveloping an exciting new action plan for our UK-wide New System Alliance. Sector leaders, politicians and other activists continued to respond positively to our influencing work. So we decided to focus on clearer messaging and building our partnerships with organisations which share our values. We are exploring ethical ways to build the voices and power of people who are going through tough times themselves, led by what’s important to them and their wellbeing.

We have embarked on new organisational transformation work with charities large and small, developing a new membership network for practitioners, and working with the London borough of Haringey as a beacon area for our change model. We have taken on new team members and are working on our team culture, including a renewed focus on staff wellbeing, communication and our shared commitment to equity, diversity and inclusion.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

New System Alliance

Supported by the National Lottery Community Fund, we and our partners Platfform in Wales and Homeless Network Scotland continued to grow and develop The New System Alliance for individuals and organisations who come together to create total change to the systems encountered by people going through tough times in the UK. We are introducing new organisations to strengths-based, person-led coaching in place of traditional support work. We have carried out person-led enquiries using our Wisdoms methodology and we have a programme of regular online Conversations that Challenge and monthly bulletins for our members, with a shared area to showcase strengths-based working in development.

Impact of the PTS response

The PTS Response, led by our Director of PTS, Catherine Collis, is based on the kind of strengths-building coaching usually reserved for executives or athletes, but used in this case with people experiencing homelessness and other tough times. It is delivered by our team of coaches, supported by manager Michelle Jackson and Office Manager Aya Toby, and by coaches in seven other charities UK-wide.

The New Economics Foundation report is based on a two-year evaluation of the Person-Led, Transitional and Strength Based (PTS) Response delivered by Mayday Trust and its partner Changing Lives. The PTS Response enabled people to take control of their support and to form a respectful and dignified support relationship, which gave them the space to set their own vision for the future based around the practical actions and social achievements which mattered most to them. Life changes which people made themselves were more likely to last. People reported huge improvements in their wellbeing including an increase in selfesteem, sense of purpose, and optimism, as well as better mental health including feeling happier, and a reduction in anxiety. There was a need to develop the relationship-building aspects of coaching and to ensure a fit between the values of the different services which people were often accessing at the same time.

Early indications suggest significant savings for commissioners and the public purse could be achieved through adapting the PTS model. In some cases, coaches are able to manage bigger caseloads typically than traditional support workers, while creating extremely positive and effective support relationships, due to the flexible nature of support and the success rates in people moving on (60% move on positively after 8 months across the UK; in one area where 80% of supported people typically return to homelessness, 67% of people supported by Mayday moved completely outside of homeless support services). However, the approach and culture of the services that coaches were working within made a big

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

difference to the level of success: to work well, services offering it need to be willing to reshape a range of their work around a strengths-based ethos. This is why we believe we need to see whole-system change across our public services and charities.

Two coaches, Megan Forader and Melanie Freemantle are working with 40 individuals across Northamptonshire including young adults and those who have had contact with the criminal justice system, and who are housed within temporary accommodation. This work is funded from a variety of sources including charitable trusts The Paul Hamlyn Foundation, The Rayne Foundation and the local Police and Crime Commissioner, representing a significant ongoing contribution to local people and public services.

We are working with Bridges Outcomes Partnerships and local partners to demonstrate person-led strengths-based social prescribing in Northamptonshire, where two of Mayday’s PTS coaches, Lilly Broujerdi and Shauna Hemphill offer coaching to 60 people with long term health conditions. They say, “A diagnosis becomes an identity. People will introduce themselves as their long-term health condition and their deficits, thinking that’s what we are there to talk about. They are used to clinical and formal environments which focuses on things they cannot do, or things that ‘other’ them such as groups for people with certain long-term health conditions”. A common comment heard by coaches is that they are the first person who “actually listens to me,” and “makes me feel like a ‘normal’ person”. On a practical level, this can mean that rather than automatically signposting someone who has a stroke to a stroke group, the coach might support them to find and join a group based around one of their interests, and work with the group to make it accessible, or attend with the individual to begin with until they gain confidence. Personal budgets can be used to overcome barriers. For instance, a man in his 40s who is ashamed of his long-term condition was unwilling to use a mobility scooter, but purchasing an electric bike meant that he could ride around the park with his children, and he is now excited to experience increased mobility and aiming to progress in other ways. We aim to roll this model out to new areas, based on the evidence our outcome measures have generated of greater success with groups for whom social prescribing is not usually accessible or effective.

The PTS qualification course with Coventry University was oversubscribed bringing together a uniquely diverse group of students including charity chief executives, practitioners, senior civil servants and people who use support services.

Our Head of Culture & Creativity, Ciara Killeen, has developed a huge amount of work around our Equity, Diversity and Inclusion, making the right steps to ensure we are an organisation that is representative of those we work alongside. She has also led on the

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

overhaul of our appraisal approach, ensuring members of the organisation feel clear about their role and the role they play in the wider mission and vision. Alongside this work there has been a focus on the development of our membership offer, something we aim to launch formally in 2022/23 that will provide space for organisations and individuals to make use of the resources we have developed over the past decade.

Our head of impact, Ashraf Hamza has developed a new learning and impact strategy, and is developing and simplifying our approach to collecting outcomes, equalities and goal progress data in a person-led and user-friendly way. We have a new strengths-based outcome measuring and learning support offer for organisations, drawing on our learning in this area. Mayday were one of the selected ‘pioneer case studies’ to launch the Human Learning System Living the New World report by the Centre for Public Management and Collaborate CIC, and we are the subject of a study on radical organisation change being carried out by Johanna Mair & Christian Seelos of Stanford (Berlin) and The Hertie School of Governance.

Creating system change

Mayday creates change at three levels:

• the individual level , through offering the PTS Response in place of traditional support;

• the organisational level through supporting organisations to deliver person-led, transitional and strengths-based coaching and to embed those values throughout an organisation;

• the area and system level , through supporting local areas with whole-system change.

This year we worked with commissioners and our funders to establish a beacon area with Haringey Borough Council and partners in the local NHS clinical commissioning group, to inform the development of person-led and strength-based commissioning. This includes a new role: Systems Influencer, to help feed the learning from coaching relationships back into codesigning better public services. Dannie Grufferty, a former PTS Coach in Haringey has taken on the role that sees engagement with the highest levels of the North London CCG alongside those at Haringey Borough Council. Throughout the next year we aim to build a community of people who have struggled to navigate the complicated health systems around them, we will highlight challenges and work with the community to unlock opportunities for change.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

In January 2022 we appointed to a hybrid role, delivering coaching and training. Jhoana Serna, a long-time associate of Mayday, joined to work alongside people going through tough times in Haringey and to deliver the PTS Qualification and System Reflects across the country. We aim to develop the team further in Haringey next year, further supporting the Beacon Area model.

“I worked with a man who was facing eviction and exclusion from multiple services after years of a downward spiral of services failing him, and him breaking services’ rules, and being in conflict with others. Services saw all the dysfunction as being his, but it was as much about the dysfunctional relationships between him and the agencies now and as a child. I was able to build a relationship with him on his terms, with no obligation on either of us to focus on problems. This created space for him to test out what a healthy relationship looked like and to focus on his passion which was Crossfit. Building his confidence and participation meant him reducing his drug and alcohol use for the first time in years. He became self-motivated to seek out and live a life he often dreamed about, with a coach reminding him he could achieve more than he often believed. He took the lessons learned during our relationship into positive relationships with friends, neighbours and a new landlord. This propelled him to pursue work, live independently and seek a life not defined by services.” Jhoana, coach.

We have carried out learning sessions, evidence gathering, practice development and change based work with areas and organisations including Hammersmith and Fulham, South Yorkshire Front Line Network, Bridges Outcomes Partnership, Rochdale Council, West London Mission, Feed Up Warm Up, Four Square and Y-People in Scotland.

We have spoken at numerous national events and networks including to large audiences at the Civil Society Trustees Conference, an NHS event in Lincoln about person-led care, the Department Health and Social Care’s national Principle Social Worker network, Inside Government, The National Housing Advice Service, a King’s Fund conference and to Association of Chief Executives of Voluntary Organisations members on strengths-based working, the Australian and New Zealand School of Government, and the heads of youth services from across Wales.

We supported Layla Moran MP in her debate at Westminster Hall, ‘Will this Government End Rough Sleeping?’. The team produced a white paper which included quotes from Wisdom from the Pandemic and excerpts were discussed in the Hall. Mayday have had a commitment from Eddie Hughes MP (Minister for Homelessness and Rough Sleeping) to meet with us to learn more.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

The PTS Response

The PTS response is a unique combination of three elements, drawing on personal budgets where needed to unlock barriers, to create change at the level of individual, community and system:

1. Strengths-based coaching on your terms, led by what’s important to you

2. Support to connect to others and to build your community

3. Support to challenge & change what doesn’t work, coproducing better services

Area of work	Traditional support work	The PTS response
Referral	Appointment, eligibility & assessment. Support planning early on.	Meet safely on your terms Get to know each other first
Support	Led by service’s priorities and timetable.	Person-led goals & schedule. Brokerage & personal budgets.
When services don’t work	Aim for service user’s engagement and compliance.	Support individual to challenge and change what’s not working.
Endings	Signposting. Cliff edges at the end of services.	Option to pause/ vary support. Build informal networks which reduce need for us.

What our coaches say

“I'm most proud of creating a safe non-judgmental space where people feel comfortable sharing what they've been through and their hopes and dreams moving forward.” Mel

“I am proud every time a person trusts me a little more.” Meg

“One thing I want to celebrate is the human spirit. We get to mirror back someone’s courage, joy and previous strides so that they can be reminded of how amazing and strong they are. And then we get to witness and celebrate their achievements.” Jhoana

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

Sustainability and growth

We have ambitious plans to grow our earned and fundraised income, and to develop a membership offer which will be self-sustaining through membership fees.

We reviewed our investments and assets with a view to increasing our ability to invest in growing our business while ensuring a health cash flow position. Our financial systems and governance are being developed and strengthened in an ambitious programme led by our interim FD Angharad Orchard and our experienced Finance Manager, Alistair Jones, and we are recruiting a new fundraiser.

We expanded our communications capacity under the leadership of Steph King and Jo Austin Greer, with the aim of a complete refresh of our external and online communications, to simplify our messages and reach a wider audience. We experimented with new approaches to working alongside people going through tough times who want to influence systems themselves, including creating a podcast for one ‘system activist’ to give her a platform.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

The Problem - The systemic institutionalisation of people accessing support services.

The Vision - A world where systems work for people going through tough times.

The Mission - To model a person-led, transitional and strength-based system alongside people going through tough times and to build a movement of people and organisations to change the current deficit-based systems.

The three core principles of our work are:

Listening deeply: Using our Wisdoms methodology, we aim to be led by people going through tough times and what matters most to them.

Offering the PTS response to individuals: We work directly with people going through tough times in using our person-led, transitional and strengths-based response, and we support other organisations to adopt and develop the PTS.

Influencing through doing and connecting: We demonstrate how to think and work differently, and we re-design local systems and national policy, with partners including the New System Alliance.

Our values. We are:

• PEOPLE LED In everything we do: we are led by people going through tough times.

• STRENGTH-BASED We always look for people’s strengths and potential in our work, our recruitment and how we work together as a team.

• CHANGE MAKERS We are radical, creative and imagine a very different future, while always being willing to meet people where they are.

• KIND AND CURIOUS We are never afraid to challenge others and ourselves, but we do so with kindness and humility. We are curious and want to learn. We take risks, get things wrong and are open to change.

• RESILIENT We are brave, we persevere and we aim to build our own and others’ resilience. We keep our promises and we don’t give up on people when others write them off.

• INCLUSIVE We are committed to building the inclusiveness and diversity of our team and our work. We challenge oppression and build equality wherever we can.

Strategic Objectives for 22-23

1. Grow the PTS Coach network, directly delivered by Mayday and through supporting organisations to adopt the PTS Response, and continually adapt and improve the approach.

2. Build and spread the evidence for the PTS response and for systems change. Improve and adapt our approach based on what we learn.

3. Influence local and national charities, provider organisations, NHS and governments & build a movement of activists and organisations.

4. Build and diversify our income streams including a wider range of grant funders missionaligned contracts, membership income and corporate and public fundraising.

5. Make Mayday a consistently supportive, creative and inclusive place to work with a highperforming team and strong internal communications.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

Covid-19

Our officeless and home-based working approach enabled us to weather the impact of the pandemic well, reducing travel costs and increasing reach and inclusivity through moving to online events.

New appointments

We welcomed a new chief executive, Alex Fox OBE, who led systemic change and the UKwide growth of the person-led and strengths-based Shared Lives and Homeshare models at Shared Lives Plus for over a decade. Alex is the author of a book on reforming public services A new health and care system: Escaping the Invisible Asylum (Policy Press) drawing on his learning from the rapid growth of Shared Lives which replaces more traditional forms of care. He is also a trustee of Alternative Futures Group, a member of the NHS Assembly, Human Learning Systems collaborative and Royal Society of Arts, and a senior visiting lecturer at Birmingham University.

We said goodbye to Lynn Mumford who moved to a new role having been a senior leader at Mayday for eight years, playing a key part in re-imagining the organisation and building our major partnerships. Our Finance Director, Jane Atkin, also moved to a new job and we welcomed Angharad Orchard as our interim FD, bringing wide sector FD and CEO level experience.

Funding partnerships

We are grateful for support from NLCF, Lankelly Chase Foundation, the Oak Foundation, Tudor Trust, Rayne Foundation, The Paul Hamlyn Foundation and the Police and Crime Commissioner for Northamptonshire, who helped us to build and sustain our own direct delivery of coaching, to build the infrastructure and practice support for organisations which have 30 coaches between them, and to establish a beacon area with Haringey Borough Council to inform the development of person-led and strength-based commissioning. This includes a new role: Systems Influencer, to help feed the learning from coaching relationships back into codesigning better public services.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

Financial Review of the Year

As a result of the planned strategic changes outlined above, and in particular our exit from our previous core business of providing housing and support, Mayday’s income and expenditure profile has changed considerably. In the year ended 31[st] March 2022 Mayday’s income decreased by £1.8m (66%) to £0.9m with grants and contracts now being our key income sources. The proportion of our income which is restricted has increased significantly with 60% of income restricted in the year compared to 25% in the prior year.

The deficit for the year was £208k. The majority of this deficit (£197k) is attributable to discontinued activities and repairs and dilapidations costs incurred in the move away from supported housing. There was a small deficit in restricted funds in the year (£8k) as a result of spending against funds received in advance.

A key strategic priority going forward is ensuring that Mayday’s future activities are financially sustainable and that we make the best possible use of our charitable resources. This means ensuring grants and contracts are all secured on a full cost recovery basis, that we maintain strong and effective relationships with funders and commissioners, and that we continue to build our pipeline of future income.

We have also considered our working capital requirements and took the decision in the year to convert some of our fixed assets into cash. As a result of this our investment portfolio was realised in April 2022. We believe this reflects the best use of our assets and will enable us to be agile and responsive and manage future financial risks.

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.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

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

The charitable company’s objects are to:

• Carry on for the benefit of the community the business of providing houses, hostels, supported housing or any other housing and associated amenities, services or assistance for vulnerable adults and others resident in the United Kingdom (the “area of benefit”) who are homeless or in need, suffering hardship or distress or who have suffered a legal restriction on their liberty, on terms appropriate to their means.

• Provide within the area of benefit, support, advice and counselling for those who are suffering from, or who may have suffered from alcohol, drug or substance misuse upon terms appropriate to their means.

• Provide within the area of benefit, for the elderly or other vulnerable persons with a disability (including mental and learning or associated disabilities) in need of accommodation specially designed or adapted to meet the disabilities and requirements of such persons and to provide associated amenities, advice or assistance.

• Promote any other charitable purpose and in particular the relief of poverty.

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 2022

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. Our chair is Julie McEver and the Finance Committee was chaired by Winnie Man and then Dan Paskins. During the year, Keith Starling and Tom Murtha stood down from the board, after over five years’ service, and we thank them for their substantial contribution to Mayday’s development.

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:

• Director of PTS who has responsibility for the operational function of the organisation, delivery of services and development of the PTS Network.

• The Director of Change who has responsibility for influencing change and generating income and partnerships with local areas and central government.

• An interim Director of Finance who has the strategic lead for our finance functions.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

Pay Policy for Senior Staff

The Board of Trustees and the Executive Leadership 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.

Our strategic decision to withdraw from housing provision and focus on developing our PTS approach to people going through difficult times has resulted in significant changes to our income and expenditure. Trustees have approved a deficit budget for 2022/23 however this deficit is largely is respect of restricted funds where we have received income in advance and are spending against this. At the time of approving these accounts 87% of budgeted income from ongoing activities was confirmed.

Trustees regularly review financial plans and performance to enable informed decision making. This includes approving quarterly reforecasts, reviewing the level of cash and reserves held, monitoring future funding commitments and key risks. Trustees believe it is appropriate to prepare the accounts on a going concern basis.

Reserves Policy

In determining the level of reserves required trustees have given due consideration to guidance issued by the Charity Commission and have considered the key risks to which Mayday Trust is exposed.

Trustees have agreed to maintain a designated fund to meet any future costs of structural repairs on owned properties and consider the balance of £62k as at 31[st] March 2022 to be sufficient at this time based on a stock condition survey undertaken in 2020.

In addition, trustees have set a reserves target of £170k to enable Mayday Trust to manage short term losses of grant or contract income and provide sufficient time to plan and

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

implement required changes to activities, as well as to ensure we maintain an appropriate level of working capital to enable us to meet commitments as they fall due.

As at 31 March 2022, Mayday held £105k in free reserves comprising unrestricted net current assets and investment assets which are readily convertible into cash. Prior to signing these accounts trustees approved the sale of 79a Warwick Street, a Mayday owned asset (see note 24 to the accounts). The sale of this property will enable Mayday to meet its reserves target.

Total reserves amounted to £2,482k, of which £618k are restricted and £1,655k are unrestricted. Of the unrestricted funds, £1,488k reflects our fixed asset fund and is not convertible into cash without affecting the operational running of the business, and is not therefore considered to be freely available. Further information is provided in note 14 of the accounts.

Investment Policy

During the year trustees have considered the best use of Mayday’s investments. At the end of the financial year, Mayday had £454k invested (Note 10) however trustees agreed to sell these investments in order to free up cash to meet our working capital requirements and to provide funds to manage future risks and pursue opportunities arising.

As a result of this our investment portfolio was sold in full in April 2022.

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:

• Pressure on public service budgets, lack of commissioning capacity and in some areas, risk-averse commissioning can restrict Mayday’s ability to offer person-led strengths-based work, to prototype, learn and adapt. This can restrict access to income. Mitigated by:

• A new income generation plan and strategy, with diversified income sources and new fundraising and marketing capacity.

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

o Development of clearer communications and support offers.

• Working safely and consistently well with people going through tough times. Mitigated by:

• Robust safeguarding policy and procedure as part of comprehensive pack of policy and practice guidance and learning materials.

• Values-led recruitment, induction and support for coaches and the team, including communities of practice, external supervision, management support.

• Partnerships with the local community, local authorities, statutory bodies and other providers to assist in providing person-led support and removing system barriers so people are able to take more control of their lives.

• Inability to collect sufficient, statistically-viable data to confirm the effectiveness of the PTS response. Mitigated by:

• Central collection of the PTS standard data set by the Head of Impact.

• Memorandums of Understanding with PTS Partners on the importance of providing regular data provision.

• Data and impact training for PTS coaches and organisations.

• Owning housing used by another organisation for supported housing, which exposes the charity to the financial risks of void loss, arrears and repairs to property. Distraction from the core mission of the organisation by demanding significant capacity to manage the accommodation. Mitigated by:

• Withdrawing from the direct provision of supported accommodation by the transfer to trusted partner organisations.

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:

• Select suitable accounting policies and then apply them consistently;

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MAYDAY TRUST (A company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

Year ended 31 March 2022

• Observe the methods and principles in the Charities SORP;

• Make judgements and estimates that are reasonable and prudent;

• State whether applicable UK Accounting Standards have been followed, subject to any material departure disclosed and explained in the financial statements; and

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

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:

• There is no relevant audit information of which the charitable company’s auditors are unaware; and

• The directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Approved by the Board of Trustees on 21[st] July and signed on its behalf by:

Julie McEver

Chair of the Board of Trustees for Mayday Trust

18

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 2022 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:

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

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

19

MAYDAY TRUST (A company limited by guarantee)

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

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 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:

• the information given in the Directors’ and Trustees’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Directors’ and Trustees’ Report has been prepared in accordance with applicable legal requirements.

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:

• adequate accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

• the charitable company’s financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

20

MAYDAY TRUST

(A company limited by guarantee)

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

• we have not received all the information and explanations we require for our audit.

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.

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:

21

MAYDAY TRUST (A company limited by guarantee)

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

• obtaining an understanding of the legal and regulatory framework applicable to the charitable company and how the charitable company is complying with that framework, including agreement of financial statement disclosures to underlying documentation and other evidence;

• obtaining an understanding of the charitable company’s control environment and how the charitable company has applied relevant control procedures, through discussions with Trustees and other management and by performing walkthrough testing over key areas;

• obtaining an understanding of the charitable company’s risk assessment process, including the risk of fraud;

• reviewing meeting minutes of those charged with governance throughout the year; and

• performing audit testing to address the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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 non-compliance 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.

22

MAYDAY TRUST (A company limited by guarantee)

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

Glen Bott FCA

Senior Statutory Auditor for and on behalf of:

Cooper Parry Group Limited

Chartered Accountants and Statutory Auditor

Sky View, Argosy Road, East Midlands Airport DE74 2SA

21[st] July 2022

23

MAYDAY TRUST (A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES Year ended 31 March 2022

Continuing Discontinued Continuing Operations Operations Operations Unrestricted Unrestricted Restricted Note Funds Funds Funds £ £ £ Income from: Donations and legacies 2 32,776 - 58,000 Investments 3 11,429 - - Charitable activities 4 294,019 35,129 511,012 Total income 338,224 35,129 569,012 Expenditure on: Raising funds 5a - - 766 Charitable activities 5b 371,729 232,015 576,204 Total expenditure 371,729 232,015 576,970 Transfers between funds (196,886) 196,886 - Realised and unrealised gains/(losses) on investments 10 30,584 - - Net movement in funds (199,807) - (7,958) Reconciliation of funds Balances brought forward 1,855,308 - 626,358 Balances carried forward 14,15 1,655,501 - 618,400	2022 Total £ 90,776 11,429 840,160 942,365 766 1,179,948 1,180,714 - 30,584 (207,765) 2,481,666 2,273,901	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

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 2021 is provided in note 22.

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

24

MAYDAY TRUST (A company limited by guarantee)

SUMMARY INCOME AND EXPENDITURE ACCOUNT Year ended 31 March 2022

	Note	Continuing	Discontinued	2022	2021
		Operations	Operations
		£	£	£	£
Income		895,807	35,129	930,936	2,735,485
Expenditure		(948,698)	(232,015)	(1,180,713)	(3,175,453)
		__	__	__	__
Net operating deficit		(52,891)	(196,886)	(249,777)	(439,968)
Interest receivable and similar income	3	11,429	-	11,429	12,912
		__	__	__	__
Net deficit for the year		(41,462)	(196,886)	(238,348)	(427,056)

An analysis of continuing and discontinued operations for the year ended 31 March 2021 is provided in note 23.

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

25

MAYDAY TRUST (A company limited by guarantee)

BALANCE SHEET as at 31 March 2022

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	2022 £ £ 1,488,399 453,842 _ 1,942,241 345,713 251,959 597,672 (266,012) _ 311,660 _ 2,273,901 330,315 105,061 1,220,125 _ 1,655,501 618,400 _ 2,273,901	£ 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

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

These financial statements were approved by the Board of Trustees on 21 July 2022 and are signed on their behalf by:

J McEver Trustee

Dan Paskins Trustee

26

MAYDAY TRUST (A company limited by guarantee)

STATEMENT OF CASH FLOWS

Year ended 31 March 2022

Net cash used in operating activities 19 Cash flows from investing activities Interest income Investment disposals 10 Investment additions 10 Purchase of tangible fixed assets Cash provided by investing activities Decrease in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Total cash and cash equivalents at the end of the year 20	2022 £ (207,810) - 203,804 (2,690) (31,199) _ 169,915 _ (37,895) 289,854 _ 251,959	2021 £ (315,469) 65 150,000 (100,000) - _ 50,065 _ (265,404) 555,258 _ 289,854

27

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

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).

• Voluntary income by way of grants, donations and gifts is included in full in the Statement of Financial Activities when receivable and when the amounts are known with certainty and are measurable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charitable company, are recognised when it becomes unconditionally entitled to the grant.

• Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charitable company earns the right to

28

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

consideration by its performance. Where income is received in advance of performance it is treated as deferred income and included within creditors.

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.

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

29

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

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.

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

30

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

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.

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.

Accounting policies (continued)

31

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

1.16 Going concern

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

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.

Our strategic decision to withdraw from housing provision and focus on developing our PTS approach to people going through difficult times has resulted in significant changes to our income and expenditure. Trustees have approved a deficit budget for 2022/23 however this deficit is largely is respect of restricted funds where we have received income in advance and are spending against this. At the time of approving these accounts 87% of budgeted income from ongoing activities was confirmed.

Trustees regularly review financial plans and performance to enable informed decision making. This includes approving quarterly reforecasts, reviewing the level of cash and reserves held, monitoring future funding commitments and key risks. Trustees believe it is appropriate to prepare the accounts on a going concern basis.

32

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

2 Donations and legacies Unrestricted Discontinued Restricted Funds Activities Funds £ £ £ Grants and donations 29,575 - 58,000 Coronavirus job retention scheme 3,201 - - _ __ _____ 32,776 - 58,000	2022 Total £ 87,575 3,201 _ 90,776	2021 Total £ 796,534 33,732 _ 830,266

Of the total income of £830,266 received in 2021, £145,700 related to unrestricted funds and £682,764 related to restricted funds. During the year Mayday did not receive any legacies (2021: nil).

Included in unrestricted grants is £3,201 (2021: £33,732) 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	2022	2021
		Funds	Activities	Funds	Total	Total
		£	£	£	£	£
	Listed investments	11,429	-	-	11,429	12,847
	Bank interest receivable	-	-	-	-	65
		______	______	______	______	______
		11,429	-	-	11,429	12,912

All investment income received in 2022 and 2021 related to unrestricted funds.

4	Grants and other funding for	Unrestricted	Discontinued	Restricted	2022	2021
	Provision of Services	Funds	Activities	Funds	Total	Total
		£	£	£	£	£
	Gross accommodation charges	-	35,510	-	35,510	1,629,971
	Accommodation voids	-	(381)	-	(381)	(222,473)
	Social impact bond	-	-	-	-	10,000
	Service contracts and grants	186,340	-	-	186,340	436,766
	Innovation partners & influencing	49,879	-	511,012	560,891	31,687
	Property income	57,800	-	-	57,800	19,267
		__	__	__	__	__
		294,019	35,129	511,012	840,160	1,905,218

33

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

5a	Cost of raising funds	Unrestricted	Discontinued	Restricted	2022	2021
		Funds	Activities	Funds	Total	Total
		£	£	£	£	£
	Other costs	-	-	766	766	216
		______	______	______	______	______
		766	-	766	766	216

All of the costs of raising funds incurred in 2021 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 people going through tough times (which during the year also included one month of accommodation provision) whilst working towards achieving changes to traditional, institutionalising support systems. Accordingly, the costs of the charitable company are attributable to this purpose.

Unrestricted	Unrestricted	Discontinued	Restricted	2022	2021
	Funds	Activities	Funds	Total	Total
	£	£	£	£	£
Wages and salaries	240,612	12,008	426,441	679,061	1,128,023
Staff training recruitment & other HR	13,411	-	455	13,866	3,590
Rent and charges	-	14,675	-	14,675	678,033
Repairs and renewals	-	187,640	-	187,640	528,367
Utilities and service charges	-	825	-	825	76,099
Council tax and rates	-	2,561	-	2,561	57,157
Security costs	-	9,335	-	9,335	177,292
Cleaning costs	-	2,480	-	2,480	33,789
Health & Safety costs	-	1,446	-	1,446	48,717
Environmental costs	-	80	-	80	15,228
Influencing and communications	22,145	-	116,716	138,861	129,837
Travel and meeting expenses	7,564	1,198	4,729	13,491	14,185
Licences and rentals	8,404	4,147	-	12,551	21,265
Telephone and broadband	3,200	589	1,426	5,215	20,290
Computer costs	13,152	-	20,000	33,152	20,579
Insurance	10,634	-	-	10,634	18,043
Consultancy and professional fees	8,800	3,627	-	12,427	31,697
Personal budgets	3,859	1,946	6,437	12,242	6,023
Office supplies and stationery	10,693	-	-	10,693	12,429
Bad debts	-	495	-	495	107,969
Depreciation	12,614	-	-	12,614	4,814
Other expenses	5,012	(11,037)	-	(6,025)	29,949
Governance costs (note 6)	11,629	-	-	11,629	11,863
	_	__	_	__	__
	371,729	232,015	576,204	1,179,948	3,175,237

Of the total costs of £3,175,237 incurred in 2021, £584,034 related to unrestricted funds and £680,814 related to restricted funds.

34

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

6	Governance costs	Unrestricted	Unrestricted	Discontinued	Restricted	2022	2021
			Funds	Activities	Funds	Total	Total
			£	£	£	£	£
	Audit fees		9,680	-	-	9,680	10,590
	Legal fees		1,949	-	-	1,949	1,273
			_	_	_	__	__
			11,629	-		11,629	11,863
7	Employees’ and Trustees’ remuneration					2022	2021
						£	£
	The aggregate payroll costs were:
	Wages and salaries					586,701	961,591
	Social security costs					58,318	97,134
	Agency costs					-	12,696
	Other pension costs					26,496	44,037
	Benefit in kind					7,546	12,564
					__		__
						679,061	1,128,023

No trustee received remuneration during the year (2021: £nil).

No expenses were paid to Trustees in respect of travel and subsistence (2021: £nil). The company paid £758 for trustee indemnity insurance (2021: £758).

The total amount of employee benefits received by key management personnel is £314,773 (2021: £336,193). The charitable company considers its key management comprise the Chief Executive Officer, Director of Finance, Director of PTS, Director of Change and Director of Development and Strategic Partnerships (until 28[th] January 2022).

The employee benefits include redundancy payments made of £nil (2021: £14,438). This was made up of statutory redundancy payments of £nil (2021: £11,589), payments in lieu of notice of £nil (2021: £1,684) and ex-gratia payments of £nil (2021: £1,165). All of the redundancy payments were unfunded. An ex-gratia payment of £5,000 was made in 21/22.

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

		2022	2021
		No.	No
£60,000	- £70,000	2	1
£80,000	- £90,000	-	1

Pension payments in respect of the above employees was £11,625 (2021: £7,000).

35

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

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 2021 Disposals At 31 March 2022 Depreciation At 1 April 2021 Charge for the year Disposals At 31 March 2022 Net book value At 31 March 2021 At 31 March 2022	2022 No. 3.5 13.5 17 2022 £ 12,614 9,680 - - Freehold Property Equipment £ £ 1,465,000 19,255 - 31,199 1,465,000 50,454 - 14,441 - 12,614 - - _ _ - 27,055 1,465,000 4,814 1,465,000 23,399	2021 No. 6 24 30 2021 £ 4,814 10,590 9,998 659,850 Total £ 1,484,255 - 1,515,454 14,441 12,614 - __ 27,053 1,469,814 1,488,399

36

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

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 2021 Disposals At 31 March 2022 Depreciation At 1 April 2021 Disposals Charge for year At 31 March 2022 Net historical cost book value At 31 March 2022 At 31 March 2021	2022 £ 1,465,000 485,000 - _ 485,000 228,000 - 12,125 _ 240,125 244,875 257,000	2021 £ 1,465,000
		485,000 - _ 485,000 215,875 - 12,125 _ 228,000
		257,000
		269,125

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 2021 Additions Disposals Gains/(losses) in the year Market value of investments at 31 March 2022 Historical cost of investments at 31 March 2022	2022 £ 624,372 2,690 (203,804) 30,584 __ 453,842 385,207	2021 £ 520,824 100,000 (150,000) 153,548 _ 624,372 558,249

The investments comprise of a portfolio of funds managed by Rathbone Investment Managers. Of the investment value at 31 March 2022 £nil (2021: £35) represents cash awaiting reinvestment.

37

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

11 Debtors Other debtors Prepayments and accrued income 12 Creditors: amounts falling due within one year Other taxation and social security Accruals and purchase ledger balances Deferred income	2022 £ 105,669 240,045 _ 345,713 2022 £ 13,810 227,341 24,861 _ 266,012	2021 £ 82,347 388,990 _ 471,337
		2021 £ 13,433 357,190 3,088 _ 373,711

13 Commitments under operating leases

At 31 March 2022 the charity had future minimum lease payments under non-cancellable operating leases as set out below:

leases as set out below:
		2022			2021
	Land and		Other	Land and		Other
	buildings		items	buildings		items
	£		£	£		£
Operating leases which expire:
Within one year	-		-	58,000		-

38

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

14 Unrestricted Funds at 31 March 2022

			Movement in resources	Movement in resources	Movement in resources
	Balance at		Incoming	Outgoing	Transfers and	Balance at
	01.04.2021		resources	resources	gains/(losses)	31.03.2022
		£	£	£	£	£
Fixed Asset funds
Tangible fixed asset fund		261,814	-	-	6,460	268,274
Revaluation reserve		1,208,000	-	-	12,125	1,220,125
		__	_	__	_	__
		1,469,814	-	-	18,584	1,488,399
Other Designated Funds
Dilapidation fund		250,000	-	(187,959)	-	62,041
IT upgrade fund		15,000	-	(15,000)	-	-
		__	_	__	_	__
		265,000	-	202,959	-	62,041
Free reserves
General		120,494	373,353	400,785	11,999	105,061
		__	__	___	__	__
		1,855,308	373,353	603,744	30,584	1,655,501
Unrestricted Funds at 31		March 2021
			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	396,473	158,362	120,494
		__	__	___	__	__
		2,130,767	2,065,632	2,494,639	153,548	1,855,308

39

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

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 were incurred in 2021-22 as a consequence of the decision to withdraw from the provision of supported accommodation.

IT upgrade fund

This fund was fully utilised in 2021-22 to fund the cost of migration to the Cloud and the purchase of new hardware.

15 Restricted Funds at 31 March 2022

		Movement in resources	Movement in resources	Movement in resources
	Balance at	Incoming	Outgoing	Transfers and	Balance at
	01.04.2021	resources	resources	gains/(losses)	31.03.2022
	£	£	£	£	£
Revenue
nlcf – Moving to a People
Led System	251,371	413,464	332,651	-	332,184
Front Line Network	12,775	-	12,775	-	-
Transitions Pilot	250,000	-	78,410	-	171,590
Oak Foundation	49,599	97,548	88,113	-	59,034
Young Persons PTS	55,202	20,000	38,011	-	37,191
Health Inequalities Haringey	-	15,000	2,250	-	12,750
Wellbeing grants	2,000	-	1,654	-	346
Amazon	5,000	-	3,106	-	1,894
Small support grants	411	-	-	-	411
IT upgrades	-	20,000	20,000	-	-
Lankelly Wellbeing Pilot	-	3,000	-	-	3,000
__		__	___	__	__
	626,358	569,012	576,970	-	618,400

40

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

Restricted Funds at 31 March 2021

Movement in resources

Balance at	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

Restricted funds consist of donations and grants made to Mayday Trust for the following purposes:

NLCF – Moving to a People Led System

A five year, UK wide, National Lottery Community Fund Grant to support the modelling of a whole new system for people who would otherwise become trapped in one or more homelessness, mental health, criminal justice, or substance use services or pathways.

Front Line Network

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

Transitions Pilot

Core funding from Lankelly Chase Foundation to support the Alliance work and to trial a new commissioning model.

Oak Foundation

Grant for the development of the PTS in London and the South East.

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 covid grant

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

41

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

Comic Relief Covid-19 grant

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

Wellbeing grants

Unsolicited grant from Lankelly Foundation and Tudor Trust to be used to support staff wellbeing after the difficulties of working during 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.

Health inequalities Haringey

Funding from North Central London CCG to influence systems in order to reduce health inequalities.

IT upgrades

Funding from The Clothmakers Foundation for IT equipment.

Lankelly wellbeing pilot

Funding to support staff, volunteer and trustee wellbeing.

16 Analysis of net assets at 31 March 2022

	Tangible	Investment	Other	Total
	fixed assets	assets	net assets
	£	£	£	£
Restricted funds	-	300,000	318,400	618,400
Unrestricted funds	1,488,399	153,842	13,260	1,655,501
	__	_	_	__
	1,488,399	453,842	331,660	2,273,901

Trustees approved the sale of investment assets in March 2022 in order to increase Mayday’s net current assets. These were realised as cash in April 2022.

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	Total £ 626,358 1,855,308 __ 2,481,666
	42

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

17 Company limited by guarantee

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 2022 there were 8 members of the charitable company (2021: 10 members).

18 Capital Commitments

At 31 March 2022 and 31 March 2021 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 Decrease / (increase) in debtors Decrease / (increase) in creditors Net cash outflow from operating activities Analysis of cash and cash equivalents Cash in hand	2022 £ (238,349) 12,614 - 125,624 (107,699) _ (207,813) 2022 £ 251,959	2021 £ (427,057) 4,814 (65) (33,106) 139,945 _ (315,469) 2021 £ 289,854

20 Analysis of cash and cash equivalents

21 Related party transactions

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

43

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

22 Statement of financial activities year ended 31 March 2021

Continuing Discontinued Continuing Operations Operations Operations Unrestricted Unrestricted Restricted Funds Funds Funds £ £ £ Income from: Donations and legacies 145,700 1,802 682,764 Investments 12,912 - - Charitable activities 487,088 1,418,130 - Total income 645,700 1,419,932 682,764 Expenditure on: Raising funds 216 - - Charitable activities 584,034 1,910,389 680,814 Total expenditure 584,520 1,910,389 680,814 Realised and unrealised gains/(losses) on investments 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 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

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

44

MAYDAY TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

Year ended 31 March 2022

23 Summary income and expenditure report for the year ended 31 March 2021

		Continuing	Discontinued	2021
		Operations	Operations
		£	£	£
Income		1,315,553	1,419,932	2,735,485
Expenditure		(1,265,064)	(1,910,389)	(3,175,453)
		__	__	__
Net operating (deficit)/surplus		50,859	(490,457)	439,968
Interest	receivable and similar income	12,912	-	12,912
		__	__	__
Net (deficit)/surplus for the year		63,401	(490,457)	(427,056)
24	Post Balance Sheet Event

The trustees agreed to place 79a Warwick Street, a Mayday owned property, on the open market in July 2022. No adjustment has been made for this sale in the accounts.

45

MAYDAY TRUST (A company limited by guarantee)

DONORS, FUNDERS AND SUPPORTERS

Year ended 31 March 2022

Mayday Trust would like to thank all those who supported us during 2021/22. 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 Oak Foundation Lankelly Chase Foundation St Martin in the Fields – Frontline Network Paul Hamlyn Foundation Rayne Foundation North Central London CCG The Clothmakers Foundation

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

46