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2022-03-31-accounts

YMCA ST PAUL’S GROUP (Limited by guarantee)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Registered company: Registered charity: Registered housing provider:

02971930 1041923 LH4078

YMCA ST PAUL’S GROUP

ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2022

Contents

Corporate information 2
Trustees’ Report (incorporating the Strategic Report) 3
Independent auditor’s report 30
Consolidated and Charity statements of comprehensive Income 33
Consolidated and Charity balance sheets 34
Consolidated and Charity statement of changes in reserves 35
Consolidated cash flow statement 36
Notes to the financial statements 37

1

YMCA ST PAUL’S GROUP

CORPORATE INFORMATION

Trustees and Directors

Andy Palmer (Chair) Gerald Chifamba Louise Hedges Helen Brewer Edward Weiss Kenneth Youngman Roni Savage Duncan Ingram Carol Delaney Graham Beech Chris Stern Ingrid Jack Joelle Jenny

Chair

Vice Chair (resigned 10 May 2022) Chair of People & Governance Committee Chair of Performance Committee Treasurer ( resigned 20 November 2021) Chair of Audit & Risk Committee Vice Chair and Chair of Development & Assets Committee Vice Chair (resigned 4 January 2022) (appointed 1 September 2021 ) (appointed 4 January 2022) (appointed 4 January 2022)

Company Secretary

David Martin

Executive Team

Richard James Fred Angole Marjorie James Mark Agnew Jessica Laryea David Boden

Chief Executive Officer Group Finance Director Group Director of People Group Director of Property and Places (resigned 6 June 2021) Group Director of Operations Group Director of Property and Places (appointed 14 June 2021)

Corporate information

Registered office 49 Victoria Road, Surbiton, Surrey KT6 4NG Company 02971930 Charity 1041923 Registered Social Housing Provider LH4078 Ofsted RP524773 CQC provider 1-101652524

Auditor (External)

BDO LLP 55 Baker Street London, W1U 7EU

Auditor (Internal)

Mazars LLP Tower Bridge House St Katharine’s Way London, E1W 1DD

Principal solicitors

Devonshires LLP 30 Finsbury Circus London, EC2M 7DT

Bates Wells LLP 10 Queen Street Place London, EC4R 1BE

Principal bankers

NatWest Bank Plc 2nd Floor - Argyll House 246 Regent Street London, W1B 3PB

Metro Bank One Southampton Row London, WC1B 5HA

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Trustees’ report (incorporating Strategic report) for year ended 31 March 2022

YMCA St Paul’s Group

The Trustees, who are also directors for the purpose of the Companies Act, present their annual report (incorporating the Charity’s strategic report) and financial statements of YMCA St Paul’s Group (the ‘Charity’ / ‘YMCA SPG’ / ‘YSPG’) for the year ended 31 March 2022. This report covers:

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

The Charity is a company limited by guarantee and incorporated in England & Wales (number: 02971930), a registered provider (number: LH4078) and a registered charity (number: 1041923). It is governed by its Trustee Board.

Governance framework

The Charity is governed by its Articles of Association, which provides the constitutional framework. These are available for inspection on the Companies House website or from the Company Secretary.

The Charity is committed to sound corporate governance and has adopted the National Housing Federation’s Code of Governance (2020) and Trustee Code of Conduct (2012). The Board reviews its compliance with these Codes annually and they confirm that the Charity is compliant with them.

The Charity is affiliated, via a membership agreement, to the National Council of YMCAs for England and Wales (otherwise known as YMCA England and Wales) and, through them, to the world YMCA family.

Charitable Objectives

The Charity’s charitable objectives are for the public benefit. They are:

Vision, Mission and Values

YMCA St Paul’s Group vision is of “Empowered, thriving young people and inclusive, active and healthy communities where everyone is flourishing”.

With an approach informed by our Christian faith basis the Charity works with fellow community collaborators to see this vision realised.

The Charity’s Values and accompanying behaviours framework set out the approach we take in delivery of this vision:

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Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Vision, Mission and Values (continued)

Principal Activities

In pursuit of its vision and mission, the Charity’s key activities are:

In all the Charity does with young people and communities, it seeks to promote an inclusive approach that demonstrates its Christian values and ethos in action.

Promoting the success of the Charity - Section 172 statement

The Trustees are committed to promoting the success of the Charity as required by Section 172 of the Companies Act 2006 and have:

This Section 172 statement focuses on matters of strategic importance and the information disclosed is consistent with the size of the Charity. The Charity’s governance processes have been deployed in good faith so that decisions taken are those that would most likely promote the Charity’s success for the public benefit and having regard to:

The Trustee report and, in particular, the section on achievements and performance, sets out how the Charity is delivering on its objects, vision and mission by:

As a Christian charity, the Charity is committed to fairness and equality and is committed to the longterm prospects of its work.

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Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Group structure

The Charity is the parent charity of a group of companies. The Charity is the sole corporate or beneficial owner of all entities in the group:

----- Start of picture text -----
YMCA St Paul's
Group
YMCA St Paul's YMCA London
Forest YMCA
West London YMCA Group Group Ltd
Dormant
(Development) Ltd Dormant
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During the year, YMCA St Paul’s Group (Development) Ltd became active with its principal activity being the Group’s design and build contractor for the Wimbledon development.

The Charity’s Trustee Board

The Trustees met on six occasions during the year. This included a strategy away day and the business planning & stress testing workshop. The Trustees also undertook site visits and service user engagement in West London. With the country moving into a post-pandemic world, this has afforded Trustees with increased opportunities to meet with residents and service users.

Alongside the visit to local projects, the use of breakfast briefings provided the opportunity to provide greater awareness and discussion on the Code of Governance, equity, diversity & inclusion, fire & building safety, impact and housing. Furthermore, a number of trustees & committee members participated in National Housing Federation training to aid them in their roles and development.

The Trustees are committed to maintaining an effective board and committee structure. During the year, recruitment took place which resulted in two trustees and five committee members being co-opted. All successful candidates received induction training covering governance, finance, risk and safeguarding along with a service delivery briefing on the Charity’s activities.

With Andy Palmer due to retire in November 2022, the Trustees undertook chair succession activities which incorporated interviews with trustee and residents’ panels along with a personal Christian faith discussion with the Bishop of Kingston’s nominee. The Trustees were pleased to appoint Helen Brewer as Chair Designate with a view to taking on the non-executive leadership of the Charity later in the year.

Trustee & committee member engagement remains strong with an attendance rate of 89% over the year.

Governance strategy, 2020 Code of Governance and external Board effectiveness review

During the year, the Trustees continued to develop the Charity’s governance arrangements. This incorporated:

Given the complementary nature of these activities, they were run alongside each other. The Charity was pleased to commission Campbell Tickell to undertake the review who found that there was a strong governance function with a skilled and committed Board that manages its risks and genuinely wishes to make difference to the lives of service users and residents. This is clearly underpinned by the strong Christian ethos that runs throughout the organisation. Campbell Tickell found a genuine commitment to the customer among Board Trustees and the Executive with a focus on the impact on customers. The Trustees were pleased to accept the report which also set out some very useful recommendations to develop the Charity moving forward. These included:

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Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Governance strategy, 2020 Code of Governance and external Board effectiveness review (continued)

In March 2022, the Trustees adopted a new Customer Engagement, Involvement & Empowerment Charter which underpins the Charity’s commitment to hearing the service user voice.

Delivering good governance using a committee structure

The Trustees expanded their effectiveness by deploying a committee structure to gain further assurance and access specialist skills.

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Trustee Board
Development & People &
Audit & Risk Performance
Assets Governance
Committee Committee
Committee Committee
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All of the Committees are committees of the main Trustee Board and comprise a mix of trustees and independent members who have specialist skills. Matters identified by the committees are escalated to the Board through a formal report, urgent matters are reported by the Chair of the Committee to the Chair of the Board.

Independent Committee members during the year included:

Audit and Risk Committee

Performance Committee

Development and Assets Committee

People and Governance Committee

The Trustees would like to record their appreciation for Philippa Alisiroglu, Colin Archer and Sian Stranks who stood down during the year after a period of good service to the Charity.

The Trustees are grateful for the diligent service of the independent members in the financial year under review.

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Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Delivering good governance using a committee structure (continued)

Audit & Risk Committee

The Audit & Risk Committee met four times in the financial year and reported its activities to the Board.

This Committee is tasked with overseeing compliance, risk and regulatory reports. It supervises the external and internal audit/controls and advises the Board on the effectiveness of risk measures. It is responsible for advising the Board on the Charity’s compliance with the Regulator’s Economic Standards.

Development & Assets Committee

The Development & Assets Committee met four times in the financial year and reported its activities to the Board.

This Committee is concerned with new property development and existing asset management, including health & safety assurance. It is responsible for compliance with the Regulator of Social Housing’s Homes Standard.

People & Governance Committee

The People & Governance Committee met four times in the financial year and reported its activities to the Board.

This Committee is responsible for overseeing the governance strategy as well as supporting the recruitment, appraisals and board & committee effectiveness. The Committee also deals with matters relating to Executive Team recruitment and remuneration.

Performance Committee

The Performance Committee met four times during the year as well as some deep-dive sessions. It has specific delegated advisory responsibilities relating to all operational service delivery.

The purpose of the Performance Committee is to oversee, on behalf of the Board, a forward-looking programme of consistent service design in respect of the Charity’s key strategic services. This includes ensuring that the services to customers and its engagement with stakeholders and partners enable the achievement of the strategic vision, objectives and goals and deliver improved customer outcomes.

The Committee is responsible for advising the Board on the Charity’s compliance with the Regulator’s Consumer and Rent Standard as well as operational requirements set out by CQC and Ofsted.

Executive Team

The Trustees delegate the day-to-day responsibility for running the Charity to the Chief Executive. The Executive Team consists of:

The Executive team met twice a month until the time of Coronavirus. At that point, the meetings became much more frequent to respond to the pandemic and the priority matters.

All Executive Team members are invited to attend all Board meetings. Each Executive Team member is responsible for a Committee and liaises with the respective trustee chair. To help with the Charity's succession planning, Heads of Service are also invited to attend Committees and then Board where required.

Employees

YMCA St Paul’s Group places great value on its staff and aims to create a culture where everyone feels that they can bring their best selves to work. This means creating an atmosphere of trust and inclusion that is free from harassment and abuse.

The Charity publishes its Gender Pay Gap report each year; in 2021 this showed that the mean Gender Pay Gap was now less than 1% and currently stands at 0.32%.

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Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Employees (continued)

The Charity is not complacent and is aware that women continue to be disproportionately represented in the lower pay roles. Work will continue to address this by creating opportunities for progression and promote flexible working practices across all parts of the organisation so that more women are able to take advantage of opportunities to work in higher paying roles that are traditionally occupied by men.

The Charity also recognises the importance of creating an inclusive environment which benefits everyone equally. The Charity places high value on the quality and diversity of its employees and works hard to ensure all are working together to shape a charity that serves the best interests of its service users. To this end the Board has approved a People Strategy which is monitored through the People & Governance committee. Internally, the Executive share information on its objectives, progress and activities through regular management and staff departmental meetings. In addition, staff forums, conferences, and events such as Flourish Fest and team days are used to celebrate and recognise employees’ contributions, generate ideas and positively engage with staff.

Health & safety

The Trustees are aware of their responsibilities on all matters relating to health and safety. Alongside a detailed health and safety policy and accompanying training the Board monitors compliance through quarterly reporting to the Development and Assets Committee (from which significant exceptions are escalated to the wider Board) as well as an Annual report to the Board.

During 2021/22 the Board received extra training and assurance on the Charity’s proactive approach to new Fire and Building Safety legislation.

Safeguarding

The Trustees are aware of their responsibilities in ensuring that all beneficiaries, especially those who are children, young people or adults at risk that access services through the Charity can do so in a safe way. The Charity is focused on proactively ensuring everyone has an opportunity to achieve their full potential. A Trustee Champion and independent Committee Member are in place to monitor safeguarding activities. During the year responsibility for monitoring and escalating Safeguarding concerns was passed from the Performance Committee to a Quarterly meeting including the Board’s safeguarding champion and an independent committee member.

Information security

The Charity is committed to information security and continues to promote good and appropriate collection and use of data and information. The Charity continues to retain a dedicated Data Protection Officer to aid its compliance, assurance and advisory work in this area.

Compliance with taxation

The Charity is committed to conducting its business with integrity, transparency and fairness, and in compliance with all relevant rules, regulations and legislation. It values its reputation for ethical behaviour, financial probity and, as a charity, it disapproves of tax evasion in whatever form. The Charity will not knowingly engage with any individual or business that does not share its commitment to the prevention of tax evasion. The Charity requires all trustees and staff to demonstrate the highest standards of honesty at all times.

Indemnity insurance

The Charity’s insurance policies indemnify the Trustees and Officers against liability when acting for the Charity providing their actions are not reckless or fraudulent.

Public Benefit

The Trustees held service users at the heart of its approach to formulating the strategic objectives and associated strategies. In doing so, the Trustees confirm that they have complied with 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. Through the work that the Charity undertakes in its service areas, it delivers public benefit and serves a wide range of people, many of whom are vulnerable.

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Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Key Decisions

Key decisions taken by the Board during the financial year include the following:

ACHIEVEMENTS AND PERFORMANCE

During the year the Charity, in a difficult operating environment, engaged with and delivered support across 40 communities, which we serve, and through a wide range of online and in person services.

April 2021-March 2022 proved to be a second year of significant challenge for the Charity, with the ongoing impact of the Covid19 pandemic affecting services in waves, forcing restrictions, closure of services and requiring regular risk mitigation reviews.

The year started with the lifting of some of the restrictions brought about by the third national lockdown. At this point services were still restricted by the numbers of people that could meet in any one place and so many group activities, including those within Health and Wellbeing, Youth work and Housing, Care & Support could simply not be reintroduced. All of this meant that after a difficult 2020/21 there was very little opportunity to effectively launch back those services that had been so dramatically affected.

The lockdown legacy extending into the new financial year also had an impact on the deliverability of the new Strategic Plan with some of the aspirations undeliverable given the ongoing restrictions and the public reticence. In approving this plan (in November 2020) the Board had built in flexibility, noting that any targets needed to be reviewed in light of the pandemic.

The challenges of a difficult 2020/21, combined with the new strategic plan did however have an unexpected but positive impact with the staff less and less talking about the four, different, premerger entities and now rather focusing on the common approach of YMCA St Paul’s Group. This common approach was, like many organisations, enabled by a digital connectedness that previously would not have been thought possible.

With the roll out of a Covid 19 vaccine much effort was put into encouraging and assuring staff and residents on the safety of the vaccine. Work was done with local Directors of Public Health as well as YMCA England and Wales in looking at how best to ensure young and vulnerable residents of the YMCA were given the best information and easiest possible way to access the vaccine. Whilst staff vaccination rates were not tracked, the annual residents survey identified that 46% of respondents had taken up this opportunity, this number is lower than the national average.

The removal of the final restrictions in July 2021 allowed the Charity to introduce more in person events, including staff face to face meetings and celebrations. Two highly successful ‘Flourish Fest’ events were held, one at YMCA Hawker and another at YMCA Walthamstow. These two, much appreciated, events that were organised by the staff engagement group provided an opportunity for staff to gather in person, to have some fun and better get to know people that they had only seen in digital meetings up to that point.

The summer also saw the ‘start on site’ for the redevelopment of our YMCA provision in Wimbledon. After nearly 15 years of thinking, planning, reviewing it was good to see the work begin, first with the demolition of Olympic House and the sports hall of the existing YMCA. A time lapse camera has been installed to help track and monitor progress, knowing that it is just two years before a brand new YMCA for Wimbledon opens on the Broadway.

The Autumn saw a gradual return of Covid (predominantly the more virulent Omicron variant) and the introduction of further restrictions, combined with exponentially increasing sickness (due to people needing to self-isolate). In this period non-essential services needed to be either closed or severely restricted as staffing rotas were often reduced to skeleton staff. Fortunately, as the Charity moved into 2022, the number of staff needing to self-isolate dropped quickly meaning that as the Charity moved into the 2022/23 financial year, the case rates had stabilised.

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Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

ACHIEVEMENTS AND PERFORMANCE (continued)

In early October, in line with the Strategic Plan, the Charity applied to Business in the Community (BITC) as the start of the journey to become a socially responsible business. The BITC report, which was presented in early 2022/23 identified some significant areas of strength in particular in the areas of stakeholder engagement, community collaboration, Diversity & Inclusion and Health & Wellbeing. The Charity scored high in these areas and was above the cohort average. The Charity scored highly in the area of Governance and Transparency. It came as no surprise that the areas where more work was needed was in the areas of work around climate change, value chain products and services and value chain supply chain. There was no evidence that the Charity actively used societal impact data as part of the research and development work to informing services and their design. This will therefore be a focus of continued work towards achieving this standard in 2022/23.

In the Autumn, the Charity launched its Putting People First (PPF) project. This was the final piece of the merger alignment, bringing together job roles and responsibilities across the different projects whilst also harmonising pay and conditions. A large project involving over 200 people, PPF is set to conclude by July 2022.

Having agreed a new communications strategy in November 2021, there was a focus on raising the profile of the Charity throughout 2021/22. This included a number of visits from different MPs including Rupa Huq and Bob Blackman, as well as submissions to parliamentary reviews into supported housing regulation, and the levelling up agenda. Alongside the political advocacy, links were established with the new Bishop of Chelmsford, Bishop Guli, who alongside her diocesan role is also the Church of England’s Bishop for Housing. During a visit to YMCA Roxeth Gate, Bishop Guli and members of her team met with YMCA residents, heard about how the Charity worked closely with local churches and was focused on identifying, quality, affordable move on accommodation for the young people it works with.

November also brought a time of celebration firstly with success at the national YMCA ‘Youth Matters’ awards. YMCA St Paul’s Group was a finalist in four categories including young volunteer of the year, young worker of the year, Housing Project of the year and Covid impact. Against a strong competition, former YMCA Wimbledon resident, Martin Bushaway was crowned young volunteer of the year – a very popular winner with everyone in the room.

Later in the month, the Stars of St Paul’s awards was held in a hybrid format, with some people connecting in from home and others being in the room. This was the first time in 3 years that the Stars awards had been able to take place in person, and the event provided a great opportunity to showcase the talents and contributions from individuals and teams across the Charity.

With a large, diverse but dispersed workforce, the People and Culture team (P&C) at the Charity have over the last year introduced and quickly established four Employee Resource Groups (ERG): gender, race, disability, and sexual orientation. Each ERG is chaired by a member of staff, supported by a member of the P&C team. They are safe places for staff, who identify with the particular characteristic to have a voice, to share experiences and then to suggest, challenge and support SPG to become a great place for all to work.

Among the many events run by the ERGs are Power Hour (an interview between a female Board member and resident for International Women’s Day), GAYMCA (a virtual lunchtime disco for PRIDE) and Lunch and Learn (a series of discussions for Black History Month). The ERGs have also had an impact in a range of other areas including the development of YMCA Wimbledon where members of the disability ERG shared their experiences of neuro diversity and how the layout of office and meeting space needs to be carefully viewed from a range of perspectives.

Alongside the ERGs, the P&C team have also been the drivers in ensuring there is a strong dataset that can then help inform future action plans. As a result, the depth of diversity statistics have risen from a few dozen people to nearly 90% of staff. This has in turn allowed the P&C team to develop the first, ethnicity pay gap report and put in place a range of training and talent.

Housing, Care & Support (HC&S)

Between April 2021 and March 2022 YMCA St Paul’s Group housed 1,737 residents across our 35 housing, care and support projects. Of these, 662 ‘Moved-On’, with 26.64% moving into a Private Rented Sector (PRS) property, 16.89% moving onto a secure or assured tenancy with a local authority or housing association, 6.54% into different supported housing, 13.7% moved to live with family or friends. 1.22% (8) of our residents moved out so they could attend University.

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Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

ACHIEVEMENTS AND PERFORMANCE (continued) Housing, Care & Support (HC&S) (continued)

Highlights during the year included the success at the YMCA’s Youth Matters awards, the visits of a number of high-profile individuals, not least to YMCA Roxeth Gate. A number of residents also took part in the Kick Starter programme, gaining employment within the YMCA.

The quality of care and support provided by the HC&S was recognised in the annual resident’s survey which identified that 90% of residents felt YMCA had made a positive difference in their lives, 85% of respondents were satisfied with the way the service was run and 76% were satisfied with the way that complaints and issues were dealt with.

As with the wider sector, occupancy was a challenge during the year, with voids reaching nearly 10% at one point. A fresh focus in the latter part of the year meant that this situation improved by the year end. Further improvement is expected in 2022/23.

Between April and October 2021, the Rent and Tenancy Administration Team implemented the housing and support system “InForm” across all Housing, Care and Support services. The achievement of this strategic objective enabled the Charity to improve the quality and consistency of support delivered to our residents, improve recording and management of safeguarding and anti-social behaviour concerns and for the leadership teams to have greater oversight of performance and outcomes data. InForm has subsequently been adopted by the Youth services and our Health and Wellbeing services are exploring how it could benefit them.

During the Covid period, support continued in a tightly controlled environment at the Charity’s Care Homes in Surrey. Covid Care Home restrictions meant that visitors (including contractors) to the sites were tightly controlled. Given the complex nature of the agreement to manage and operate the homes, there was good communication between operational and strategic level staff.

Health and Wellbeing (H&WB)

The Charity believes that Wellbeing is the crucial foundation that enables people to develop in all areas of their lives. Fitness and exercise are part of that, but so too are having a place to belong; opportunities to be included in a community by socialising with friends or volunteering to help others; being able to get outdoors and have contact with nature; learning new skills; having meaningful work; and being able to see achievable opportunities for the future. The Charity’s approach is always to support wellness by supporting the whole person.

Highlights during the year included the gradual return of services to pre pandemic operational models, the launch of a number of new targeted activity programmes, including the partnership with ‘This Girl Can’ (a national campaign aimed at removing the barriers to good health and exercise). The Hawker Jets junior tennis club who won 9 out of the 10 leagues they entered in Surrey with the junior teams wining a staggering 28 out of 29 matches last season and the Hawker Karate club returning to winning national competitions winning4 golds, one silver and a bronze in November after the lifting of events restrictions. Release counselling expanded its services to new areas around the Charity where it delivered 1,117 counselling sessions of which 294 sessions were to 96 of our residents across all of the supported housing project areas. There was particular success at Hampton Pool which achieved a record level of income, despite the challenges and restrictions, recording 245,235 swimming visits to the pool and delivering 41,194 swimming lessons. The catering teams at Wimbledon, Walthamstow and Ealing Hostels consistently served just over 8,000 meals each month to residents throughout the year with overall resident meal uptake highest at 73% in Wimbledon.

Developments during the year included the continued focus on a hybrid operating environment, providing a mixture of online and in person offers and online participation remained consistent throughout the year where the Charity continues to support members of the community that are still not ready or now prefer not to return to in person events. There was an increased focus on communicating the health impact of YMCA services; this included a pilot project at Hampton Pool during the latter part of the year, whereby data was tracked and reported as part of the national data hub project and a project that looks at social return of investment through physical and health intervention and with the Sports for Development Coalition which targeted physical activity support for residents.

Challenges during the year were twofold: firstly the challenging recruitment environment meant that staff were continually stretched, which was exacerbated by Covid self-isolations leading to the closure of some services and staff having to double up in order to keep centres open. The second challenge was the

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Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

ACHIEVEMENTS AND PERFORMANCE (continued) Health and Wellbeing (H&WB) (continued)

impact of the second and third waves of Covid meant that targets were not achieved as centres were closed and customer confidence meant that people did not return as quickly as originally hoped. The end of year financial position shows that the Health and Wellbeing service generated a better return. As a result, a community services review was launched during the year on how the Charity can ensure it delivers a financially sustainable service that delivers on the Charity’s vision and mission. This review will conclude in 2022/23.

Children, Youth and Family (CYF)

Between April 2021 and March 2022, the Charity worked with approximately 1,500 young people and supported 3,000 children and their families.

Highlights during the year included the ongoing success of the Get on Track programme, which was run at the start of 2022. Run in partnership with the Dame Kelly Holmes foundation, the Get on Track involves elite athletes, working with YMCA staff in delivering education, training and motivation for young people who are not in education, employment or training (EET). Over 80% of participants involved in Get on Track move into EET after being involved.

The team were also pleased to be part of a YMCA consortium, led by One YMCA, in being appointed as the delivery partner for the RAF Benevolent fund youthwork programme. For the Charity this meant the launch of a new service with young people in and around RAF Northolt. At the same time the team saw the conclusion of the Achieving for Children contract to deliver youthwork in three youth centres spread across Richmond and Kingston. The contract finished on a real high in March 2022 with a family fun day at Dickerage Lane which was attended by hundreds of local people.

Within the Children and family team, the Charity supported 300 fully funded free school meal places during the school holidays, which enabled the provision of a hot meal and stimulating activities to the most vulnerable within the local community. The Charity also provided over 10,000 hours of Early years free childcare to families living in Hampton and South Ealing, enabling parents to get back to work after having their children.

Challenges during the year were comparable with the other community services, the restrictions brought about by Covid and those resulting from the inability to recruit staff. As a result of the ongoing vacancies several services had to be temporarily closed, including the much needed pre-school in Hampton. As with H&WB the uncertainty caused by Covid and ongoing restrictions meant that targets were not able to be achieved by the year end.

Chaplaincy

Between April 2021 and March 2022, the Chaplaincy team provided individual support to the staff team and residents through 1,185 one to one sessions. In addition, various Chaplaincy groups provided community building, wellbeing walks, anxiety support, prayer and discussion.

Continuing the trend that developed in 2020/21, the Chaplaincy team saw their support being split equally between staff and residents during the year (prior to the pandemic the balance was predominantly resident support).

Support focused on mental health, anxiety and loneliness and the Chaplaincy team members were involved in listening, mentoring, praying and providing practical support.

The Life Journey retreat was run in Autumn 2021, this successful programme has now been running for a number of years and after the 2021 visit a review was undertaken to refresh and update the approach for future years.

A highlight during the year was the way in which the new Christian ethos / value base was taken on by staff across the Charity. This new ethos was organically developed during the re-imagination project which meant that it was something that was owned by the wider staff team. The ethos was also used in the approach to becoming a Psychologically Informed organisation.

Challenges during the year largely focused on the restrictions brought about by Covid delaying group work getting going again. This in turn restricted the amount of resident engagement and involvement that could be achieved for the first half of the year.

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Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

ACHIEVEMENTS AND PERFORMANCE (continued)

YMCA Federation Engagement

The Charity continued to play an active role in the wider YMCA Federation. In particular staff were involved in:

Alongside these, exchange visits were carried out with a number of neighbouring YMCAs. Different team members were also involved with different networks (including Chairs, CEO, Finance Directors, Fundraising & Comms).

FINANCIAL AND OPERATING REVIEW (INCLUDING VALUE FOR MONEY)

At 31 March 2022, the Group had property and assets of £52m, reserves totalling £32m and an annual turnover of £25m.

The Group’s principal sources of income arise from its charitable activities of providing Accommodation, Health and Wellbeing services and Family, Youth and Children’s Work.

The Group achieved turnover from our social housing and other activities for the year ended 31 March 2022 of £24.5m, an increase of 3.4% year on year as shown in the table below. The substantial increase in income from Other Activities was mainly due to the reopening of services previously closed in 2021 as a result of Covid restrictions.

Turnover

2022 2021
£000 £000
Social housing lettings 15,481 15,700
Othersocial housing activities 2,898 3,135
Other activities 6,153 4,887
Total 24,532 23,722

Summary Consolidated Statement of Comprehensive Income :

2022 2021
£000 £000
Turnover 24,532 23,722
Operating cost (23,569) (22,150)
Operating cost-triennial defined benefit pension deficit - (346)
Operating surplus 963 1,226
Net interest payable (859) (878)
Surplus after interest 104 348
Other recognised gains 3,606 9
Surplus for the year 3,710 357

The Group achieved a surplus of £3,710k compared to £357k in 2020/21.

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YMCA St Paul’s Group

FINANCIAL AND OPERATING REVIEW (INCLUDING VALUE FOR MONEY) (continued)

Summary Consolidated Balance Sheet :

2022 2021
£000 £000
Tangiblefixed assets 51,596 56,181
Net current assets 16,530 3,648
Total assets less current liabilities 68,126 59,829
Long-term liabilities and provisions (35,628) (31,041)
Net assets/reserves 32,498 28,788

Housing properties are held at historic cost and unamortised grant is held in long-term creditors.

Consolidated Cash flow:

2022 2021
£000 £000
Cash (used in)/generated from operations (7,240) 2,730
Cash from/(used in) investment activities 6,298 (1,197)
Cash from/(used in) financing activities 5,149 (1,498)
Net change in cash 4,207 35

At 31 March 2022 the Charity had £9.4m cash and cash equivalents. In the year the Charity:

Value for Money (VfM)

A key part of our Value for Money Strategy is compliance with the Regulator of Social Housing Value for Money Standard. The Standard recognises that there are special circumstances surrounding the provision of Supported Housing which make them more costly to operate than general needs/traditional housing. For the purposes of the Standard, the regulator has defined supported housing providers as those that have supported housing that accounts for more than 30% of their total housing stock. These registered providers are noted to have higher costs and lower operating margins than more traditional housing providers, primarily due to the broader range of services that they provide.

The regulator recognises that these high costs and lower margins tend to mean that these organisations are less able to support debt to finance investment activity. As a result, they tend to have lower gearing than organisations with less supported housing and consequently their reinvestment and new supply metrics remain below the sector median.

YMCA St Paul’s Group faces all the above challenges and more due to the provision of Community Services, which represent circa 30% of our overall activities.

The Board believes achieving value for money is key to the delivery of our key priorities of:

  1. developing and promoting a network of safe places for young people to meet (or stay) and community wellbeing hubs where local people can access the support they need to thrive;

  2. being a leading provider of Supported Housing to young people in London;

  3. introducing a psychologically informed approach to our work, informed by a Christian framework as an organisation;

  4. developing and growing fundraising and donations received across the organisation;

  5. being seen as a ‘go to’ charity by the wider YMCA, the London Borough’s Mayor of London's office, and other key commissioners;

  6. being successful in using digital tools to help improve the lives of young people and communities;

  7. being known as a Great Place to Work ® helping us retain and attract the best people to work for us; 8. ensuring that everyone working or partnering with us is clear about what we do and the impact we are having;

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FINANCIAL AND OPERATING REVIEW (INCLUDING VALUE FOR MONEY) (continued) Value for Money (VfM) (continued)

  1. ensure that the customer voice is at the heart of everything we do; and

  2. being known for delivering excellence across all we do.

Our overall aim is to gradually reduce unit costs through cost control, better use of technology and growth. The Charity has the objective of achieving an operating margin of 10% in the medium-term, whilst working to make the business operate more economically, efficiently and effectively through a programme of incremental, sustainable improvements. The approach is captured in five value for money commitments:

  1. Cost Savings and Procurement : we will scrutinise spending and challenge costs to ensure we achieve greater economy, reduce waste and deliver greater value;

  2. Asset Management : we will seek to maximise return on our current property assets;

  3. Customer Service : we will provide good quality services and increase customer satisfaction without exceeding the London Supported Housing provider median for management costs;

  4. Growth : we will maximise the potential of our resources in order to deliver more homes and services; and

  5. Business Efficiency : we will deliver efficiencies across the Charity by reducing overheads, streamlining back office processes and systems, making better use of data, automating processing activity and improving cost analysis.

The Charity has produced the metrics prescribed by the Regulator and ensured they are consistent with the financial statements as a whole. The section below addresses the metrics and the comparative performance of the Charity across these indicators and the Sector Scorecard.

In order to benchmark Group performance, the Charity has established a small peer group with similar geography and housing provision that is predominantly Supported Housing. It has used the median from that peer group to provide a comparison in the table below. The Charity is a member of Housemark and is doing more detailed analysis of costs so that Trustees can better understand comparative cost drivers and see what we can learn from peers. Note: the peer group figures are based on 2020/21 Global Accounts statistics provided by the Regulator of Social Housing (‘Regulator’) and Sector Scorecard provided by Housemark.

VfM performance

2022 2021 Peer
median		 Target
2022		 Target
2021
% % % % %
Business
health		 -
Operating margin
-
EBITDA
MRI
interest
cover		 3.9
230
5.2
292		 5.2
144		 8.0
274
7.4
364
Development -
New supply as a % of
current units
-
Gearing		 1
36
4
46		 0
11		 1
40		 2
45
Outcomes -
Reinvestment %		 14.8 3.5 3.4 13.6 0.3
Effective
Asset
Management		 -
ROCE		 6.7 2.1 1.8 3.3 2.7
Cost per unit -
Headline social housing
cost		 £10.8k £13.3k £12.9k £10.2k £12.0k

Registered housing providers are required, by the Regulator, to publish their performance against seven indicators, as shown above.

The Charity’s operating margin has decreased year on year by 1.3%, from 5.2% to 3.9%, and is below the peer median and 8% target. The significant drop in margin is mainly due to the prolonged impact of Covid-19, significant void losses and one-off costs. None of the peer group were required to close down

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FINANCIAL AND OPERATING REVIEW (INCLUDING VALUE FOR MONEY) (continued) Value for Money (VfM) (continued) VfM performance (continued)

a substantial part of their activities, as a result of Covid restrictions. Our medium term objective is to achieve a 10% operating margin and our long-term financial plan forecasts that this will be achieved in 2024, based on prevailing assumptions.

EBITDA MRI interest cover reduced by 62%, year on year, and was 44% below target. When compared with the peer group, the Charity’s performance is 86% better. The year on year decrease is mainly due to increased capital expenditure on stock improvement.

The Charity has a commenced a development programme, in line with its development strategy. This will see a growth in the number of accommodation units in the next 3 years. The improvement in reinvestment performance reflects future new supply, in particular, from the Wimbledon scheme.

The return on capital has improved year on year, from 2.1% to 6.7%, and is better than the peer group median. This shows more efficient investment of our capital resources.

The Charity’s headline social housing cost per unit has improved, year on year, and is in line with target and is substantially lower than the peer group median. We continue to review our management costs to identify areas for efficiency and improvement.

Sector Scorecard

In addition to the metrics prescribed by the Regulator the Charity assesses its performance against a sector scorecard as well as performance scorecard. This ensures that the Board, Trustees and stakeholders are able to assess performance against our overall strategy. The performance scorecard was reviewed over quarter four with the objective of ensuring targets and improvement trends were in place to enable the Charity to meet its strategic goals and to benchmark performance against peers.

The Trustees continue to believe that transparency of cost and performance is an important element in driving organisational improvement. Targets continue to be agreed annually as part of the budget setting process.

Business Health 2022 2021 Peer
median
Target
2022		 Target
2021
% % % % %
Operating margin 3.9 5.2 5.2 8.0 7.4
Operating Margin – SHL 12 14 10.4 18 19
EBITDA MRI interest cover 230 292 144 274 364

The above operating margin results show that, although our overall performance was impacted due to Covid restrictions (as previously described), our housing activity (which remained operational) held up well. This is reflected in the Operating Margin – Social Housing Lettings (SHL) performance. The Charity did poorer than the peer group median; it should be noted that none of the peer group had to close services due to Covid restrictions.

Development 2022 2021 Peer
median
Target
2022		 Target
2021
New Supply (number) 9 49 Not
available		 15 25
New Supply % 1
4		 0 1 2
Gearing % 36 46 11 40 45

The Charity commenced a new development programme during 2020/21 resulting in 49 rooms to let. The programme included de-converting 12 existing flats in Ventura House and creating a total of 35 rooms to let. In addition, unused space in the Forest Road Hostel is being converted to provide 14 additional rooms.

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FINANCIAL AND OPERATING REVIEW (INCLUDING VALUE FOR MONEY) (continued) Value for Money (VfM) (continued) Sector Scorecard (continued) Development (continued)

In 2021/22, the above works additionally created 4 units of accommodation at Ventura House and 5 units at the main Forest Road hostel.

The Charity’s flagship 121-unit Wimbledon Development is expected to be ready to let in 2023.

Gearing remains well below last year’s level and target, mainly as a result of debt repayment. This also shows headroom for more borrowing.

Asset Management 2022 2021 Peer
median
Target
2022		 Target
2021
% % % % %
ROCE 6.7 2.1 1.8 3.3 2.7
Occupancy 91.5 94.4 Not
available		 95.2 96.1
Ratio
of
responsive
to
planned
maintenance		 691 691 738 111 310

The return on capital has improved year on year, from 2.1% to 6.7%, and is better than the peer group median, for reasons described above. However, the ratio of responsive to planned maintenance expenditure remains higher than desired and was largely impacted by the decision to reduce capital improvement works to mitigate the financial impact of Covid. The asset management strategy aims to improve these metrics.

Occupancy levels are lower than last year and target, and reflect the poor performance on voids management during the year. The Charity recognises this as an area for substantial improvement. A management focus on improving both the voids management process and in engagement with local authority commissioners is beginning to show a reduction in void losses.

The ratio of responsive to planned maintenance is lower than the peer median but substantially higher than target. This is mainly as a result of the Charity’s decision to pause much planned maintenance expenditure during the Covid pandemic.

Outcomes

During the year, an annual residents’ survey was carried out. The Resident Survey is held across all sites simultaneously inviting residents to share their views against all elements of the services YMCA St Paul’s Group provides to them. Highlights of the results are summarised below:

Operating efficiency

Operating efficiency 2022 2021 Peer
median
Target
2022		 Target
2021
Cost per unit £000 £000 £000 £000 £000
Headline social housing 10.8 13.3 12.9 10.2 12.0
Management 4.8 9.3 4.3 3.7 4.0
Maintenance 0.7 0.6 1.0 0.4 0.2
Major repairs 0.5 0.3 0.1 1.4 0.2
Service charge 4.5 2.7 2.6 4.4 4.8
Other social housing costs 0.3 0.4 4.9 0.3 0.3
Rent collected as % of rent due 103.0%
102.3%		 Not
available		 98.0% 97.9%
Overheads as a % of adjusted turnover 23.8% 20.2% Not
available		 18.0% 19.1%

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YMCA St Paul’s Group

FINANCIAL AND OPERATING REVIEW (INCLUDING VALUE FOR MONEY) (continued) Value for Money (VfM) (continued) Operating efficiency (continued)

All of the targets and KPIs have been reviewed ensuring that the Charity continues to track both business critical metrics and regulatory items. An internal audit of our KPIs in 2021 confirmed that there these are linked to our strategic goals and were produced in a robust way.

The results show a year on year reduction in our headline social housing cost per unit and, which is also lower than the peer group median. The results also show a reduction in management costs, compared to the previous year, but higher than target. The reduction in management costs has been mainly a result of scaling back operations in our Community Services.

Service costs are in line with target but substantially higher than last year and the peer group median. This is mainly a result of the inflationary impact on service costs.

Rent collected as a percentage of rent due is better than both last year and target, due to arrears recovery and backdated Housing Benefit receipts. This is encouraging as rent arrears remain a significant issue for the Charity.

Overheads as a percentage of adjusted turnover is higher than both the previous year and target, mainly as a result of much higher than expected office premises costs, including substantial dilapidation costs following the expiry of the lease at St James’ House, Surbiton. The closure of St James’ House will generate subsequent year on year savings as it has not been replaced.

Capital Structure and Treasury Policy

Borrowings at the year-end were:

2022 2021
Loan facilities available £31m £31m
Loan drawings £25m £25m
Undrawn facilities £6m £6m

The debt is sourced from a number of UK banks.

All drawn and undrawn loans were secured against social housing assets. Together with the available cash balance, these funds are sufficient to meet the funding commitments.

The Charity has a treasury management policy, which is approved by the Trustees. The Treasury policy seeks to address funding and liquidity risk and covenant compliance.

Future Prospects

The current financial year continued to be a challenging one for the Charity. Although the economy started to revive, after several lockdowns, recovery from adverse impacts of the pandemic remains slow and uncertain. In particular, labour shortages and continued high levels of sickness due to Covid have remained significant challenges.

The Charity is also very mindful of the difficulties residents and service users are experiencing as a result of the cost of living crisis. Inflation and the rising cost of building safety standards are putting upward pressure on service charges and charges to service users.

The Charity is prepared to adapt to new legislative changes that will be introduced by the Social Housing White Paper and the Building Safety Act.

The Board will continue to manage costs through a rigorous annual budget setting process and consider the impact on service costs for residents. A 3-year financial and improvement plan has been approved, by the Board, that seeks to ensure recovery to pre-pandemic levels of activity and achieve the Charity’s medium-term financial target of 10% operating margin.

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FINANCIAL AND OPERATING REVIEW (INCLUDING VALUE FOR MONEY) (continued) Future Prospects (continued)

Whilst continuing to ensure that residents and service users stay at the heart of everything we do, our priorities over the next two years remain:

  1. developing and promoting a network of safe places for young people to meet (or stay) and community wellbeing hubs where local people can access the support they need to thrive;

  2. being a leading provider of Supported Housing to young people in London;

  3. introducing a psychologically informed approach to our work, informed by a Christian framework as an organisation;

  4. developing and growing fundraising and donations received across the organisation;

  5. being seen as a ‘go to’ charity by the wider YMCA, the London Borough’s Mayor of London's office, and other key commissioners;

  6. being successful in using digital tools to help improve the lives of young people and communities;

  7. being known as a Great Place to Work ® helping us retain and attract the best people to work for us;

  8. ensuring that everyone working or partnering with us is clear about what we do and the impact we are having;

  9. ensure that the customer voice is at the heart of everything we do; and

  10. being known for delivering excellence across all we do.

Compliance with the Regulator of Social Housing’s Governance and Viability Standard

As a registered provider, the Charity has undertaken an assessment of compliance as required by the Governance & Viability Standard of the Regulator of Social Housing. This report has been prepared in accordance with applicable standards and legislation. The Trustees confirm that the Charity has complied with the Governance & Financial Viability Standard.

Reserves Policy

The reserves that the Charity have set aside provide financial stability and the means for the continued development of the principal charitable activities. The Charity intends to maintain unrestricted funds at a sufficient level to cover management and administration costs for at least three months. The Charity maintains a strong reserves position to protect it social housing activities.

The Board regularly reviews the amount of reserves that are required to ensure that they are adequate to fulfil continuing obligations. This is guided by the Charity’s Business Plan, Risk Mitigation Protocol, banking covenants and stress testing activities.

Group as a going concern

The financial statements are prepared on the basis YMCA St Paul’s Group will continue for the forthcoming 12 months from the date of signing of these financial statements. The Charity’s business plan has been stress tested and the Board has considered the potential impacts from numerous multi-variant adverse scenarios. The Board reviewed and debated the detailed stress testing at its meeting in May 2022. In recognition of the prevailing high inflation risks, and associated uncertainty surrounding the prescribed social rent settlement moving forwards, it was agreed that a ‘perfect storm’ scenario would be prepared. This ‘perfect storm’ is a multi-variant scenario including adverse but plausible factors such as cost inflation margins increase to 5% above income inflation, SONIA/Base Rate doubles - impacting all variable rate debt & increasing finance costs and Social rent decrease of -1% p.a. for 5 years (instead of CPI growth). The outcome of stress tests performed focussed on liquidity, security and covenant compliance as a result of adjusting the key inputs.

Options for mitigation to ensure the business can continue in the short and longer term have also been reviewed. Mitigations exist for all scenarios as a precaution, to ensure compliance with all covenant and regulatory requirements.

The resulting worst case scenario of the stress testing exercise, in which all adverse impacts described above would crystallise, indicates a covenant breach could occur 2023, if mitigating actions were not taken. Mitigating actions showed that the Charity is able to withstand these external pressures.

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YMCA St Paul’s Group

FINANCIAL AND OPERATING REVIEW (INCLUDING VALUE FOR MONEY) (continued) Group as a going concern (continued)

Periodic updates to the financial business plan, management accounts forecasts and key performance indicator reporting enables continuous monitoring of the business. YMCA St Paul’s Group maintains significantly higher liquidity levels than the funding requirement identified in its updated business plan; the Board considers this to be prudent in the current uncertain economic environment.

YMCA St Paul’s Group recognises possible concern relating to its participation in a defined benefit pension scheme. Appropriate action has been taken. The scheme was closed to new members in 2007, and the link to final salary broken in 2011 with additional contributions continuing to be made to reduce the deficit. As part of the YMCA federation, the multi-employer pension scheme is run by an independent Trustee board with employer representation through the Principal Employer, National Council of YMCAs. The pension scheme Trustee obtains an actuarial valuation every three years and the Charity has considered the implications on the Charity’s finances from the latest available actuarial valuation.

We have reviewed the Charity’s ability to continue to deliver its charitable objectives by ensuring budgets, forecasts and plans are available and include the impact of deficit repayments. The pension scheme Trustee included the impact of pension scheme deficit repayments in considering going concern status, reserves, and the risks and uncertainties that the Charity faces noted elsewhere in this Report.

YMCA St Paul’s Group benefits from the pension scheme Trustee and the Principal Employer seeking suitable specialist profession advice both to manage the scheme and in the continuing effort to explore ways of reducing the overall pension deficit. The notes to the Accounts include an accounting policy and further details in notes 22 and 23.

After making enquiries, the Board has a reasonable expectation that the overall Group has adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months after the date on which the report and financial statements are signed. For this reason, it continues to adopt the going concern basis in the financial statements. No material uncertainties exist.

STREAMLINED ENERGY AND CARBON REPORT (SECR)

Introduction

YMCA St Paul’s Group is committed to reducing its carbon footprint and has developed a detailed environment policy.

Streamlined Energy and Carbon Reporting (SECR) was introduced in 2019, as legislation to replace the Carbon Reduction Commitment (CRC) Scheme. SECR requires obligated companies to report on their energy consumption and associated greenhouse gas emissions within their financial reporting for Companies House.

SECR requires businesses to include their energy use (including electricity, gas and transport) emissions and an intensity metric in their annual Directors'/Trustees’ report for financial years beginning on or after 1 April 2019. This regulation applies to all quoted companies and large UK companies with over 250 employees or annual turnover of more than £36m or an annual balance sheet of over £18m.

For the purpose of SECR compliance, YMCA St. Paul’s Group is considered a Large company as it has more than 250 employees and an annual balance sheet value in excess of £18m, together with an energy consumption in the UK above the 40,000 kWh threshold, and as such needs to report:

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STREAMLINED ENERGY AND CARBON REPORT (SECR) (continued)

Summary report

The report below has been prepared in conjunction with Pilio Limited ‘’Pilio’’ , an energy consultancy company. The report summarises the Charity’s 2021/22 compliance with SECR. Past and baseline years’ SECR results are also reported.

YMCA St Paul’s Group Scope 1 and 2 Greenhouse Gas (GHG) emissions are mainly from office and rented building energy use.

The total gross GHG emissions in 2021/22 for Scope 1 and 2 are equal to 2,593 tCO2e, which means:

These are divided as follows:

The total net GHG emissions in 2021/22 for Scope 1 and 2 are equal to 2,593 tonnes of CO2-equivalent, thanks to renewable electricity generation and exports to the national grid (-0.4 tCO2e).

The Charity’s carbon intensity (both gross and net) ratio in 2021/22 is 0.107 kilograms of CO2-equivalent per pound spent (GBP, £).

A detailed breakdown of the above emissions statistics are set out in the table below.

The Charity is committed to reducing its carbon footprint and has developed a detailed environment policy.

Quantification and Methodology

ENERGY DATA

Energy consumption data has been monitored by YMCA St Paul’s Group using the Pilio energy and carbon software. Energy data is added in the Pilio software by means of:

Where data was missing, estimates based on the same period of the previous year have been made. These are:

The emissions from combustion of fuels used for transport are calculated from the reported fuel cost in 2020/21. The fuel was assumed to be only petrol, and litres of fuel used were calculated by using ONS average fuel cost per litre (source here).

EMISSION CONVERSION FACTORS

Greenhouse Gas Emissions are calculated by using the DEFRA’s Greenhouse gas reporting conversion factors 2021, as most of the reporting period falls in 2021.

These were:

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YMCA St Paul’s Group

STREAMLINED ENERGY AND CARBON REPORT (SECR) (continued) Quantification and Methodology (continued)

BASELINE AND PREVIOUS YEAR COMPARISON

The baseline year (2018/19) energy consumption and carbon emissions are reported from the YMCA St Paul’s Group ESOS report from October 2019.

The previous year (2020/21) energy consumption and carbon emissions are reported from the YMCA St Paul’s Group SECR 2020/21 report. It was found that meter 1200060546838 in Walthamstow Clockworks has been double counted in the 2020/21 report. Thus, 2020/21 emissions from purchased electricity tCO2e (Scope 2, Location Based) have been adjusted and reduced by 20 tCO2e. This is reflected in the SECR 2021/22 report.

REPORTING BOUNDARIES

To report the 2021/22 emissions, the Charity has used an operational control approach, where the organisation reports on all sources of environmental impact over which it has operational control. The organisation has operational control over an operation if the organisation or one of its subsidiaries has the full authority to introduce and implement its operating policies at the operation.

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YMCA St Paul’s Group

STREAMLINED ENERGY AND CARBON REPORT (SECR) (continued)

SECR 2021/22 Energy Consumption and Emissions Table

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YMCA St Paul’s Group

STREAMLINED ENERGY AND CARBON REPORT (SECR) (continued) Quantification and Methodology (continued)

TARGETS

The Charity has not yet set carbon targets.

INTENSITY MEASUREMENT

The YMCA St Paul’s Group is a service provider and as such the metric “Scope 1 and 2 emissions in kilogram of CO2e per £ of turnover” was chosen as reference for intensity measurement.

EXTERNAL ASSURANCE STATEMENT

The SECR report was created by Pilio for YMCA St. Paul’s Group.

CARBON OFFSETS

The Charity has not used any carbon offsets in 2021/22. However, their use is under the investigation. A creation of a carbon offsetting policy is the first step that the Charity intends to take in this direction.

ELECTRICITY

The YMCA St Paul’s Group has exported renewable electricity to the National Grid from on-site Photovoltaic generation in the Y-Cube building. This amount of electricity, which is backed by REGOs, was multiplied by the grid average emissions factor and deducted the emissions figure from the Charity’s gross emissions figure as allowed under the 2013 UK Government environmental reporting guidance.

HEAT GENERATION

The YMCA St Paul’s Group did not generate any heat in 2021/22.

SCOPE 3 EMISSIONS

Scope 3 emissions are not required from SECR reporting and thus have not been calculated. The Charity SPG foresees calculating these for the 2022/23 reporting year.

GHG reduction and internal performance tracking

YMCA St Paul’s Group recognises the urgency for energy and climate action and has put in place initiatives to reduce the Charity’s energy usage and environmental footprint. Among these are:

RISK MANAGEMENT

Risk Strategy

The Charity regularly considers risk and has developed a detailed risk strategy that takes into account strategic, operational and project risks.

The Charity uses a dynamic, cloud-based, risk management system that allows the monitoring of strategic risks as well as subsequent controls and actions. The Risk Management Strategy was updated in December 2020. The Board also regularly considers its key risks as well as any changes to the Charity’s risk profile.

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YMCA St Paul’s Group

RISK MANAGEMENT (continued) Risk Strategy (continued)

The Audit & Risk Committee is tasked with reviewing the assurances that demonstrate risks are being managed. This is supported by independent internal auditors who report directly to the Audit & Risk Committee.

In relation to fire risk, the Charity employs an external consultant who undertakes an independent inspection of all the Charity’s property assets. This review includes a review of all hazards as well as checking that fire compliance has adhered to and evidenced.

The Charity employs a full-time Head of Health & Safety to oversee compliance and manage associated risks.

Health and safety risk assessments are developed by the departmental staff and managed by operational managers. Assurance is provided by both internal audit and business improvement officers. Incidents, accidents and complaints are regularly reviewed with lessons learnt used to inform future risk assessments and policy and procedure development.

All Trustee reports include a consideration of risk and any new project or major development has its own risk register and is presented as part of the governance process.

Key Strategic Risks

The key strategic risks and uncertainties under review by the Board are:

Risk Mitigation
Organisational stretch This was a strategic risk launched in response to the 2021/24
Strategic Plan. This responds to the Charity’s desire to navigate
safely to the future and actively manage its partnership,
collaboration and impact objectives. The principal mitigation to
partnership and collaboration risks are capacity reviews to
ensure that there is sufficient bandwidth to accommodate any
new initiatives.
Health & Safety Key aspects of our health and safety are audited by internal
auditors, as part of a quarterly compliance check. Fire and gas
safety, water hygiene and asbestos are also subject to in-depth
audits on a three year rolling programme. Expert advisors are
engaged in all these areas to ensure that the assessments and
processes are thorough and remain in step with best practice.
The Charity has invested in its Property & Places department in
order to ensure that it has the in-house expertise to deal with
some complex major works projects related to safety.
IT and information security An IT Strategy has been approved by the Board that involves
significant investment in IT security. The Charity has also
updated privacy notices and trained all staff on the data
protection and information security. In terms of system security,
there is a well thought out security architecture, well developed
framework
of
management
controls
and
independent
penetration testing.
Wimbledon Development The development agreement is based on a fixed price contract
and benefits from substantial Greater London Authority grant.
The Charity actively monitors risks on the Wimbledon project
and closely engages with partners and feed any concerns back
through to the Executive Team.
Financial viability risk The Board has approved a fully funded long-term financial plan.
Our financial performance and position is closely monitored by
the Executive Team and is reported to the Board regularly.

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YMCA St Paul’s Group

Risk Mitigation
Financial viability risk (continued) Whilst the external factors that could lead to financial shock
cannot be controlled or prevented by the Charity, the
Business/Financial Plan is subjected to multivariate stress
testing and we ensure that there is adequate headroom to
withstand such events in the short term.
The Charity has in place a treasury policy, which includes a
liquidity policy that the Board monitors. The policy is approved
annually and is prepared jointly with our treasury advisors.
Safeguarding risk A safeguarding policy and procedure is in place along with a
Board designated Safeguarding lead. Safeguarding training /
workshops have been provided to the Board so that they can
understand their obligations. Safeguarding leads exist across the
Charity and posters are displayed which identify a chain of
command. There is also a trustee safeguarding lead.
Governance risk The Charity has an experienced and skilled Board that has been
strengthened over the last few months. There are regular Board
member skills reviews and appraisals, as well as reflection on
governance good practice.
Rent Standard Compliance Risk There is a Rent setting policy setting out the principles and
actions governing setting and charging rents and service
charges. In addition to internal self-assessment of compliance,
independent assurance is provided by internal audit review of
compliance.
Cost & shortage of labour risk There is a People Strategy in place that has staff retention
initiatives, including a focus on wellbeing and flexible working. A
strategic review of recruitment is due to conclude in 2022.

Treasury Risk Management

The Charity's operations expose it to some financial risks. Management continuously monitors these risks with a view to protecting the Charity against the potential adverse effects of these financial risks.

Financial Instruments

The Charity's basic financial instruments comprise cash at bank and in hand, debtors, loans and creditors that arise directly from its operations. There are surplus funds to fund future operating costs.

Credit Risk

It is the Charity's policy to assess its trade receivables for recoverability on an individual basis and to make provisions where considered necessary. In assessing recoverability, management takes into account any indicators of impairment up until the reporting date. The trade debtors were not impaired; hence, no impairment losses have been recognised.

Holding funds with a commercial bank exposes the Charity to counter-party credit risk. The amounts held at the year-end are with a bank with solid investment grade credit rating.

Interest rate risk

Loans held by the Charity are basic financial instruments which are held at market value. This minimises the interest rate risk.

Risk is managed through the use of hedges. As at 31 March 2020, 56% of our debt portfolio was fully hedged and the remaining 44% was unhedged.

Liquidity risk

The Charity maintains sufficient levels of cash and cash equivalents and manages its working capital by carefully reviewing forecasts on a regular basis to determine the requirements for its day-to-day operations.

26

Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

Fundraising

Charity law requires charities to make a statement regarding fundraising activities. The legislation defines fundraising as ‘soliciting or otherwise procuring money or other property for charitable purposes’. Such amounts receivable are presented in these accounts in other operating income.

Political Donations

The Charity did not make any political donations during the financial year.

Donations and Gifts

Funders and supporters

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the report and financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements, for the Group and the Charity, for each financial year, in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

27

Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

Statement of Trustees’ responsibilities (continued)

The Board is responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. It is also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of internal controls

The YMCA St Paul’s Group’s Board has overall responsibility for establishing and maintaining the Group’s system of internal control and for reviewing its effectiveness.

The Board recognises that no system of internal control can provide absolute assurance against financial misstatement or loss or eliminate all risk. The system of internal control is designed to manage risk and to provide reasonable assurance that key business objectives and expected outcomes will be achieved. It also exists to give reasonable assurance about the preparation and reliability of financial and operational information and the safeguarding of the Group’s assets and interests.

The Chief Executive/Group Finance Director presents a detailed report to the Audit and Risk Committee and Board each year on Internal Controls Assurance. As a result of the consideration of this report the Board is prepared to make this statement.

The Board confirms that there is an on-going process for identifying, evaluating and managing the significant risks faced by the Charity and a robust and prudent business planning, risk and control framework is in place. This approach has operated throughout the year under review up to and including the date of approval of the annual report and financial statements.

Some of the key elements of the control process that the Board has established for the Group are as follows:

The Charity has in place an Anti-Fraud and Corruption Policy and Procedure which is aimed at tackling fraud, corruption, theft and breaches of regulations.

28

Trustees’ report (incorporating Strategic report) for year ended 31 March 2022 (continued)

YMCA St Paul’s Group

Statement of internal controls (continued)

There are whistleblowing and disciplinary policies and procedures in place for the Charity which link into the Anti-Fraud and Corruption Policy. There is a Fraud Response Plan which is aimed at ensuring the Charity responds promptly to fraud or fraud allegations and can recover its assets where relevant.

There is a Fraud Register, which is reviewed at each Audit and Risk Committee meeting.

The Board confirms that there have been no regulatory concerns which have led the Regulator of Social Housing to intervene in the affairs of the Charity, neither are there significant problems in relation to failures of internal controls which require disclosure in the financial statements.

The Board has reviewed the Charity’s compliance with the Regulator’s Governance and Financial Viability Standard and are satisfied the Charity meets the requirements.

AUDITORS AND AGM

At the date of this report, each Board member confirms the following:

By order of the Board

Andy Palmer Trustee and Chairman Date: 22 September 2022

29

Independent auditor’s report to the Members of YMCA St Paul’s Group

YMCA St Paul’s Group

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of YMCA St Paul’s Group (“the Charity”) and its subsidiaries (“the Group”) for the year ended 31 March 2022 which comprise the consolidated and Charity statement of comprehensive income, the consolidated and Charity balance sheet, the consolidated and Charity statement of changes in equity, the consolidated 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).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Group and Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the board members’ 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 Group’s and of the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The board are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information, the Trustees’ Report (incorporating the Strategic Report), 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.

Other Companies Act 2006 reporting

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

30

Independent auditor’s report to the Members of YMCA St Paul’s Group YMCA (continued)

YMCA St Paul’s Group

In the light of the knowledge and understanding of the Group and the Parent Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (incorporating the Strategic 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 the board

As explained more fully in the Statement of Trustees’ responsibilities set out on pages 27 and 28, the board is 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 board members 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 board are responsible for assessing the Group and the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board either intend to liquidate the Group or the Charity 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.

Extent to which the audit was capable of detecting irregularities, including fraud

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the

31

Independent auditor’s report to the Members of YMCA St Paul’s Group YMCA (continued)

YMCA St Paul’s Group

further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the members of the Charity, as a body, in accordance with the Housing and Regeneration Act 2008 and Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’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 Charity and the members as a body, for our audit work, for this report, or for the opinions we have formed.

Philip Cliftlands (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Baker Street, London

Date: 28 September 2022

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

32

Consolidated and Charity Statements of Comprehensive Income for the year ended 31 March 2022

YMCA St Paul’s Group

Group
YSPG
2022
2021
2022
2021
Notes
£
£
£
£
Turnover
6
24,531,840
23,722,213
17,062,328
16,097,328
Operating cost
6
(23,569,200)
(22,150,006)
(16,196,764)
(15,003,249)

Operating cost- triennial defined
benefit pension cost
6




-
(346,331)
-
(256,461)
Operating surplus
14
962,640
1,225,876
865,564
837,618
Interest receivable 192
463
9
257
Interest and financing costs
13
(859,078)
(878,271)
(673,326)
(677,768)
Gain on disposal of fixed assets
12
3,606,336
8,735
3,607,396
8,735
Surplus before taxation 3,710,090
356,803
3,799,643
168,842
Taxation
17
-
-
-
-
Surplus for the year 3,710,090
356,803
3,799,643
168,842

All amounts derive from continuing activities.

The notes on pages 37 to 58 form part of the financial statements.

33

Consolidated and Charity Balance Sheets as at 31 March 2022

YMCA St Paul’s Group

Registered Company Number: 02971930

Notes Group
YSPG
2022
2021
2022
2021
Fixed assets £
£
£
£
Intangible assets
15		 -
-
-
-
Tangible Assets
16		 51,596,050
56,181,372
32,857,297
37,356,773
Current assets
Stocks 121,397
114,647
111,212
105,590
Debtors
- due within one year 10,851,241
2,800,684
10,420,978
2,859,797
-due after more than one year 3,087,543
-
3,087,543
-
18 13,938,784
2,800,684
13,508,521
2,859,797
Investments -
2
2
2
Cash at hand and in bank 9,359,198
5,151,946
8,762,894
4,514,447
23,419,379
8,067,279
22,382,629
7,479,836
Creditors: amounts falling due within
one year
19		 (6,889,708)
(4,419,810)
(4,801,591)
(3,132,343)
Net current assets 16,529,671
3,647,469
17,581,038
4,347,493
Total assets less current liabilities 68,125,721
59,828,841
50,438,335
41,704,266
Creditors: amounts falling due after
more than in one year
20		 (35,627,719)
(31,040,972)
(31,650,170)
(26,715,787)
Total net assets 32,498,002
28,787,869
18,788,165
14,988,479
Capital and reserves
Restricted funds 26,268,919
24,458,205
12,342,672
10,684,204
Unrestrictedfunds 6,229,083
4,329,664
6,445,493
4,304,275
TOTAL Capital and reserves 32,498,002
28,787,869
18,788,165
14,988,479

The financial statements were approved by the Board and authorised for issue on 22 September 2022.

Andy Palmer Chair

David Martin

Company Secretary

The notes on pages 37 to 58 form part of the financial statements.

34

Consolidated and Charity Statements of Changes in Reserves for the year ended 31 March 2022

YMCA St Paul’s Group

Group Restricted
Unrestricted
Total
Social Housing
Pool Improvements
Other
Charitable


£
£
£
£
£
At 1 April 2021 23,980,599
418,592
59,014
4,329,664
28,787,869
Surplus for the year 1,625,251
187,201
-
1,897,638
3,710,090
Interest received -
43
-
-
43
Other movement -
(10,331)
8,550
1,781
-
As at 31 March 2022 25,605,850
595,505
67,564
6,229,083
32,498,002
As at 1 April 2020 22,348,838
452,311
59,127
5,570,507
28,430,783
Surplus for the year 1,631,648
(44,333)
-
(1,230,512)
356,803
Interest received -
283
-
-
283
Other movement 113
10,331
(113)
(10,331)
-
As at 31 March 2021 23,980,599
418,592
59,014
4,329,664
28,787,869
YSPG Restricted
Unrestricted
Total
Social Housing
Pool Improvements
Other
Charitable


£
£
£
£
£
At 1 April 2021 10,265,612
418,592
-
4,304,275
14,988,479
Surplus for the year 1,481,555
187,201
-
2,130,887
3,799,643
Interest received -
43
-
-
43
Other movement -
(10,331)
-
10,331
-
As at 31 March 2022 11,747,167
595,505
-
6,445,493
18,788,165
As at 1 April 2020 8,821,925
452,311
-
5,545,118
14,819,354
Surplus for the year 1,443,687
(44,333)
-
(1,230,512)
168,842
Interest received -
283
-
-
283
Other movement 10,331
-
(10,331)
-
As at 31 March 2021 10,265,612
418,592
-
4,304,275
14,988,479

Pool improvements restricted fund is a share of the surplus on the operations at Hampton Pool that is set aside each year to provide funds for capital works at Hampton Pool. Control of the fund is shared equally between the Board of the Group and Hampton Pool Trust. The restricted Housing Reserves represent the accumulated surpluses for housing activities.

The notes on pages 37 to 58 form part of the financial statements.

35

Consolidated Cashflow Statement for the year ended 31 March 2022

YMCA St Paul’s Group

Group
Group
2022
2021
Note £
£
Cash flows from operating activities
Surplus for the financial year 3,710,090
356,803
Depreciation charges
16
1,731,527
1,812,455
Write down of development costs
16
162,834
-
Capital grants amortisation
24
(276,887)
(276,886)
Interest payable and finance costs
13
859,078
878,271
Interest received (192)
(746)
(Profit) on disposal of assets
12
(3,606,336)
(8,735)
(Increase)/Decrease in stock (6,750)
14,177
(Increase)/Decrease in debtors
18
(11,138,100)
224,806
Increase/(Decrease)increditors and provisions 1,325,159
(270,069)
Net cash (used from)/generated by operating activities (7,239,577)
2,730,076
Cash flows from investing activities
Purchase of fixed assets
16
(6,430,769)
(1,206,204)
Sales proceeds from assets disposals
12
12,728,067
8,735
Proceeds of disposal of investments -
2
Interest received 236
746
Net cash from/(used in) investing activities 6,297,534
(1,196,721)
Cash flows from financing activities
Interest paid on bank overdrafts and loans
13
(818,346)
(880,862)
Loans repaid (292,094)
(617,223)
Capital Grant
24
6,259,735
-
Net cash from/(used in) financing activities 5,149,295
(1,498,085)
Net change in cash and cash equivalents 4,207,252
35,270
Opening cash and cash equivalents 5,151,946
5,116,676
Closing cash and cash equivalents 9,359,198
5,151,946

The notes on pages 37 to 58 form part of the financial statements.

36

Notes to the financial statements for the year ended 31 March 2022

YMCA St Paul’s Group

1. Legal Status

YMCA St Paul’s Group is a company limited by guarantee, a registered social housing provider (No. LH4078) and registered charity (No. 1041923). The Company is the ultimate parent of the Group. The details of all entities within the Group are outlined in the Trustees’ report on page 5.

2. Accounting policies

The financial statements have been prepared in accordance with applicable law and UK accounting standards (United Kingdom Generally Accepted Accounting Practice) which for YMCA St Paul’s Group includes FRS 102 "the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland", the Statement of Recommended Practice (SORP) for Registered Social Housing Providers 2018, "Accounting by registered social housing providers" 2018, the Accounting Direction for Private Registered Providers of Social Housing from April 2019 and the Companies Act 2006.

The financial statements are prepared in accordance with the historical cost convention as modified by the revaluation of current asset investments.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates.

It also requires Group management to exercise judgement in applying the Group’s accounting policies.

Parent / subsidiary disclosure exemptions

ln preparing the consolidated financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102:

The following principal accounting policies have been applied:

Basis of consolidation

The consolidated financial statements present the results of YMCA St Paul’s Group registered provider of social housing and its subsidiaries as if they formed a single entity ("the Group"). All financial statements are made up to 31 March 2022.

Going concern

The Group’s business activities, its current financial position and factors likely to affect its future development are set out within the Strategic Report. The Group has in place long term borrowing facilities which provide adequate resources to finance committed reinvestment and development programmes, along with the Group’s day to day operations. The Group also has a long-term business plan which shows that it is able to service debt facilities whilst continuing to comply with lenders’ covenants.

The Group continues to consider in its business plan and forecasts the potential impact of legislation changes and impact of economic and operating environment, in particular, inflation. The Board expects housing operations to continue to be resilient and withstand a range of stresses on the business. Other key service areas in Health and Wellbeing and Children's Services, that have been more significantly impacted by Covid restrictions have seen demand return to post-Covid levels but are experiencing recruitment challenges. Activity in these areas have been reduced to contain costs and, based upon current forecasting expectation, the Board consider them to be viable services, and that the impact of staff shortages will be short to medium term, rather than long term, on the performance and viability of those services. The Board consider that the Charity has sufficient reserves to weather any short-term impact on the income of the Charity as a result of operating and economic factors.

37

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

2. Accounting policies (continued)

Going concern (continued)

On this basis, the Board have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months after the date on which the report and financial statements are signed. For this reason, it continues to adopt the going concern basis in the financial statements.

Turnover

Income is measured at the fair value of the consideration received or receivable. The Group generates the following material income streams:

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except that a change attributable to an item of income or expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company’s subsidiaries operate and generate taxable income. Deferred balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except:

Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Value Added Tax

The Group charges Value Added Tax (VAT) on some of its income and is able to recover part of the VAT it incurs on expenditure. The financial statements include VAT to the extent that it is suffered by the Group and not recoverable from HM Revenue and Customs. Recoverable VAT arises from partially exempt activities and is credited to the Statement of Comprehensive Income.

Pension costs

The Group participates in the multi-employer defined benefit pension plan for employees of YMCAs in England, Scotland and Wales. Due to insufficient information, the plan's actuary has advised that it is not possible to separately identify the assets and liabilities relating to YMCA St Paul’s Group for the purposes of FRS 102 disclosure. The employer contributions in relation to the YMCA pension plan are determined by the Directors based on advice from a qualified actuary and charged to income and expenditure as made.

38

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

2. Accounting policies (continued)

Pension costs (continued)

As described in note 22, YMCA St Paul’s Group has a contractual obligation to make pension deficit contribution payments over the period to April 2029, accordingly this is shown as a liability in these accounts. In accordance with the actuarial valuation the pension deficit contribution payments increase by 2.99% each year. The present value of these payments is shown as a balance sheet liability in notes 22 and 23 to these accounts.

In addition, YMCA St Paul’s Group is required to contribute to the operating expenses of the Pension Plan and these costs are charged to the Statement of Comprehensive Income as made. These operating expenses are also subject to an annual 2.99% increase.

Contributions payable from YMCA St Paul’s Group to the plan under the terms of its funding agreement for past deficits are recognised as a creditor in the YMCA St Paul’s Group’s financial statements. The liability is calculated based on the discounted value of expected future payments.

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and is carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement and accrued at the balance sheet date.

Qualifying charitable donations

Following the Triennial review of FRS 102 the Charity recognise the gift aid as a distribution from the entity to its owners and as such is not accrued unless a legal obligation to make the payment exist at the reporting date.

Termination benefits

Termination benefits are recognised as an expense when the Group is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to terminate employment.

Business combinations that are gifts

Where there is a business combination that is in substance a gift, any excess of fair value over the assets received over the fair value of the liabilities assumed is recognised as a gain in the income and expenditure account. This gain represents the gift of the value of one entity to another and is recognised as income.

Where the fair value of the liabilities exceeds the fair value of the assets, the loss represents net obligations assumed and is recognised as an expense.

Housing properties

Housing properties constructed or acquired (including land) on the open market are stated at cost less depreciation and impairment (where applicable).

The cost of housing land and property includes the cost of acquiring land and buildings, development costs, interest capitalised during the development period, directly attributable administration costs and expenditure incurred in respect of improvements and replacements of major components of existing properties.

Where housing properties are in the course of construction, finance costs are only capitalised where construction is on-going and has not been interrupted or terminated. Where a development project is deemed to be relatively inactive, capitalisation of interest is ceased until the development becomes active again.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised.

Repairs and maintenance are charged to the statement of comprehensive income during the period in which they are incurred.

Social Housing Grant used to finance buildings is repayable under certain circumstances, primarily following the sale of such property. The amount, which would be repayable is the amount by which any sale proceeds exceed

39

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

2. Accounting policies (continued)

Housing properties (continued)

all other liabilities arising from the release of any loan charges on the property.

Housing properties in the course of construction, are included in Property, Plant, and Equipment (PPE) and held at cost less any impairment, and are transferred to completed properties when ready for letting.

Depreciation of housing property

Social housing assets, whether freehold or long leasehold, are split, for the purposes of depreciation between land, structure and other major components that are expected to require replacement over time with substantially different economic lives.

Land is not depreciated on account of its indefinite useful economic life.

With exception of land, these are depreciated on a straight line basis, following the year of acquisition, according to their useful economic life or the life of the lease in the case of long leasehold assets, if this is shorter.

The major components and useful economic lives range as follows:

Depreciation Economic
useful life
Structure 100 years
Modularstructure 50 years
Roofs 60 years
Bathrooms 30 years
Kitchens 20 years
Lifts 30 years
Windows & doors 30 years
Heating system 30 years
Electrics 25 years
Energy improvements 20 years
Boilers 15 years
Short–term housing 10 years

Other tangible fixed assets

Other tangible fixed assets are measured at historical cost less accumulated depreciation and any accumulated impairment losses.

Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The Group capitalise costs incurred as a result of staff spending time on capital projects, provided that time can be linked to bringing a specific, separately identifiable asset into working condition, or substantially enhancing the working life of an existing asset.

Intangible Fixed Assets – Computer Software

Intangible fixed assets are measured at cost less accumulated amortisation and any accumulated impairment losses.

Depreciation of other than social housing fixed assets

Other than social housing assets, depreciation on other assets is charged so as to allocate the cost, less estimated residual value of each asset over its anticipated useful life using the straight-line method, as follows:

40

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

2. Accounting policies (continued)

Depreciation of other than social housing fixed assets (continued)

Depreciation Economic
useful life
Intangible assets: IT software 4 years
Other property: short
leasehold buildings		 Life of the lease
Other Furniture and
equipment		 5-7 years
Office fittings and equipment 7 years
Motor vehicles 5 years
Computer equipment 4 years
Other Fixtures & Fittings 10-20 years

The Charity has adopted an accelerated depreciation policy in relation to the Marsham Court property, which is to be demolished and replaced by a new development. The associated assumption is that the residual book costs will be broadly representative of the land value.

Investments

The Charities SORP provides that investments should be shown as fixed assets at their market value. YMCA St Paul’s Group has always regarded its investments as a source of working capital, interchangeable with cash as required, and treated as a current asset. As such they would, under normal accounting treatment, be stated at the lower of cost or net realisable value. ln light of the Charities SORP and the use to which the investments are put, the Board consider that their inclusion as current assets at market value gives a true and fair view of the financial position of the Group. Any gain or loss is charged or credited to the Statement of Comprehensive Income.

Housing Capital Grants

Grants received are accounted for using the accrual model. Grants are carried as deferred income in the balance sheet and released to the income and expenditure account on a systematic basis over the useful economic lives of the asset for which it was received. Where grants are restricted to a specified future expiry date the grant is amortised in equal instalments, so it is fully amortised by the expiry date. Grants for mixed asset types are amortised using the weighted average depreciation rate of 3.33%. This is based on the rates used in component accounting. Grant amortisation commences upon on completion of the project.

Stocks

Stocks are stated at the lower of cost and net realisable value.

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded initially at transaction price less attributable transaction costs. Any losses arising from impairment are recognised in the income statement in other operating expenses.

Recoverable amount of rental and other trade receivables

The Group estimates the recoverable value of rental and other receivables and impairs the debtor by appropriate amounts.

Financial liabilities and equity

Financial liabilities and equity are classified according to the substance of the financial instrument’s contractual obligations, rather than the financial instrument’s legal form.

Cash and cash equivalents

Cash and cash equivalents in the Group’s Consolidated Balance Sheet consists of cash at bank, in hand, deposits, bank overdrafts and short term investments with an original maturity of three months or less.

41

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

2. Accounting policies (continued)

Leased assets: Lessee

For the leases treated as operating leases their annual rentals are charged to profit or loss on a straight-line basis over the term of the lease.

Provision for liabilities

The Group would recognise provisions for liabilities of any uncertain timing or amounts. Provisions are measured at the best estimate of the expenditure required to settle the obligation at the balance sheet date. Where the effect of the time value of money is material the amount expected to be required to settle the obligation is recognised at the present value using a discount rate. The unwinding of the discount is recognised as a finance cost in income and expenditure in the period it arises.

Reserves

Income received, and expenditure incurred, for restricted purposes is separately accounted for within restricted funds.

3. Judgements in applying accounting policies

In preparing these financial statements, the key judgements have been made in respect of the following:

Whether there are indicators of impairment of the Group’s tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. The Board have considered the measurement basis to determine the recoverable amount of assets where there are indicators of impairment based on existing use value for social housing or depreciated replacement cost. The Board have also considered impairment based on their assumptions to define cash or asset generating units.

Whether leases entered into by the Group either as a lessor or a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risk and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

The critical underlying assumptions in relation to the estimate of the pension defined benefit scheme obligation such as standard rates of inflation, mortality, discount rate and anticipated future salary increases. Variations in these assumptions have the ability to significantly influence the value of the liability recorded and annual defined benefit expense.

4. Key Sources of Estimation Uncertainty In preparing these financial statements

The key sources of estimation uncertainty are:

Tangible fixed assets

Tangible fixed assets, other than investment properties, 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. In re-assessing asset lives, factors such as the condition of the asset and its future income generating potential are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset, technological advances and projected disposal values.

The residual values, useful lives and depreciation methods for assets are adjusted prospectively if appropriate, if there is an indication of a significant change since the last reporting date.

For housing property assets, the assets are broken down into components based on management’s assessment of the properties. Individual useful economic lives are assigned to these components.

42

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

4. Key Sources of Estimation Uncertainty In preparing these financial statements (continued)

Rental and other trade receivables (debtors)

The estimate for receivables relates to the recoverability of the balances outstanding at year end. A review is performed based on age and where practical, on an individual debtor basis to consider whether each debt is recoverable (see note 18).

Defined benefit and multi-employer pension schemes

Estimations in relation to financial and actuarial assumptions are based upon best estimates derived from the Group’s policies and practices and confirmed with actuaries where these are beyond management expertise. Variation in these assumptions may significantly impact the defined benefit obligation amount and the annual defined benefit expenses.

Other areas of estimation uncertainty include:

Project or scheme costs which are capitalised on the basis that the scheme will be completed and the costs for each unit upon completion is apportioned on square footage or area of each unit.

Should a project or scheme become non-feasible the costs will be written off to the Statement of Comprehensive Income as abortive costs.

Revenue recognition around particular contracts: income is generated from a range of sources, in particular, from rent and service charges to local authorities under a wide variety of contract types, durations and service specifications. Judgement is applied as to income recognition and recoverability on a source-by-source and/or contract by contract basis.

43

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

5. Income and expenditure from Housing Activities Lettings and supported people charges

Group 2022
2022
2022
2021
£
£
£
£
General
needs
housing
Supported
housing
Total
housing
activities
Total housing
activities
Income
Rent receivable net of identifiable service
charges		 311,503
6,074,453
6,385,956
7,531,612
Service income 151,800
8,666,566
8,818,366
7,891,007
Amortisation of government grant 31,593
245,293
276,886
276,886
Total Income 494,896
14,986,312
15,481,208
15,699,505
Expenditure on social housing
Services 144,210
5,070,358
5,214,568
3,154,073
Management 47,827
5,575,204
5,623,031
8,357,495
Routine maintenance 80,617
717,981
798,598
706,293
Planned maintenance -
115,596
115,596
102,235
Bad debts 8,342
403,734
412,076
326,883
Depreciation of housing properties 145,194
903,528
1,048,722
1,026,445
Operating costs on social housing lettings 426,190
12,786,401
13,212,591
13,673,424
Operating surplus on social housing
lettings		 68,706
2,199,911
2,268,617
2,026,081
Void losses 32,471
1,204,005
1,236,476
665,737
YMCA SPG 2022
2022
2022
2021
£
£
£
£
General
needs
housing
Supported
housing
Total
housing
activities
Total housing
activities
Income
Rent receivable net of identifiable service
charges		 311,503
3,769,038
4,080,541
5,157,869
Service income 151,800
5,722,009
5,873,809
5,047,638
Amortisation of government grant 31,593
245,293
276,886
276,886
Total Income 494,896
9,736,340
10,231,236
10,482,393
Expenditure on social housing
Services 144,210
4,317,721
4,461,931
2,433,155
Management 47,827
2,490,587
2,538,414
5,220,794
Routine maintenance 80,617
259,641
340,258
308,740
Planned maintenance -
-
-
868
Bad debts 8,342
291,865
300,207
221,034
Depreciation of housing properties 145,194
700,756
845,950
793,112
Operating costs on social housing lettings 426,190
8,060,570
8,486,760
8,977,703
Operating surplus on social housing
lettings		 68,706
1,675,770
1,744,476
1,504,690
Void losses 32,471
898,349
930,820
472,476

44

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

6. Particulars of Turnover, Operating costs and Operating surplus

Group 2022
2022
2022
2021
2021
2021
£
£
£
£
£
£
Turnover
Operating cost
Operating
Surplus
Turnover
Operating
cost
Operating
Surplus /
(deficit)
Social housing lettings
Social housing lettings (note 5) 15,481,208
13,212,591
2,268,617
15,699,505
13,673,424
2,026,081
15,481,208
13,212,591
2,268,617
15,699,505
13,673,424
2,026,081
Other social housing activities
Supporting people income 2,886,970
2,886,970
0
2,727,900
2,469,637
258,263
Other income 11,117
-
11,117
407,368
407,368
2,898,087
2,886,970
11,117
3,135,268
2,469,637
665,631
Activities other than social housing
letting
Care homes income 679,029
484,880
194,149
711,704
560,719
150,985
Office rent (note 7) 351,684
164,170
187,514
487,929
647,866
(159,937)
Children youth and family work (note 7) 944,025
1,332,447
(388,422)
780,662
1,230,927
(450,265)
Health and wellbeing (note 7) 3,280,580
4,341,906
(1,061,326)
2,208,474
2,823,697
(615,223)
Other income (note 7) 897,226
1,146,236
(249,010)
698,671
1,090,067
(391,396)
6,152,544
7,469,639
(1,317,095)
4,887,440
6,353,276
(1,465,836)
Total 24,531,839
23,569,200
962,639
23,722,213
22,496,337
1,225,876

Group other income includes Covid-19 related Furlough grant income of £ 38,931 (2021: £1,367,377), and other grant income of £526,499 (2021: £393,497).

45

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

6. Particulars of Turnover, Operating costs and Operating surplus (continued)

YMCA SPG 2022
2022
2022
2021
2021
2021
£
£
£
£
£
£
Turnover
Operating
cost
Operating
Surplus
Turnover
Operating
cost
Operating
Surplus /
(deficit)
Social housing lettings
Social housing lettings (note 5) 10,231,236
8,486,760
1,744,476
10,482,393
8,977,703
1,504,690
10,231,236
8,486,760
1,744,476
10,482,393
8,977,703
1,504,690
Other social housing activities
Supporting people income 1,386,603
1,386,603
0
1,018,798
1,018,798
-
Other income 11,117
-
11,117
407,368
-
407,368
1,397,720
1,386,603
11,117
1,426,166
1,018,798
407,368
Activities other than social housing
Care homes income 679,029
484,880
194,149
711,704
560,719
150,985
Office rent (note 7) 351,684
164,170
187,514
487,929
647,866
(159,937)
Children youth and family work (note 7) 944,026
1,332,447
(388,421)
780,662
1,230,927
(450,265)
Health and wellbeing (note 7) 3,280,580
4,341,904
(1,061,324)
2,208,474
2,823,697
(615,223)
Other income (note 7) 178,053
-
178,053
-
-
-
5,433,372
6,323,401
(890,029)
4,188,769
5,263,209
(1,074,440)
Total 17,062,328
16,196,764
865,564
16,097,328
15,259,710
837,618

YSPG other income includes Covid-19 related Furlough grant income of £37,261 (2021: £1,274,181) and other grant income of £342,174 (2021: £297,768).

46

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

7. Other activities: Particulars of turnover from charitable activities

Group
2022 2021
Turnover £ £
Membership 756,459
234,229
Activity fees 2,581,103
1,047,256
Food and beverage 250,842
133,110
Grants 437,829
1,548,014
Other donations and grants 9,920
31,959
Shop sales 77,179
13,243
Other income 1,004,170
869,650
Office income and occasional room hire 356,013
298,276
Total 5,473,515 4,175,736
Expenditure
Maintenance 625,922
312,766
Salaries and wages 3,733,919
3,627,362
Other apportioned costs 1,787,189
1,057,558
Other charitable expenditure 78,837
42,433
Office expenses 758,893
406,106
Triennial defined benefit pension deficit - 346,331
6,984,759 **5,792,557 **
YMCA SPG
2022 2021
Turnover £ £
Membership 756,459
234,229
Activity fees 2,581,103
1,047,256
Food and beverage 250,842
133,110
Grants 379,159
1,359,090
Other donations and grants 9,920
31,959
Shop sales 77,179
13,243
Other income 343,668
359,902
Office income and occasional room hire 356,013
298,276
Total 4,754,343 3,477,065
Expenditure
Maintenance 589,756
312,498
Salaries and wages
3,160,268


3,170,904
Other apportioned costs 1,395,744
572,000
Other charitable expenditure
Office expenses 692,753
390,627
Triennial defined benefit pension deficit - 256,461
5,838,521 4,702,490

47

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

8. Units of housing stock

Group 2022
2022
2022
2021
At the start of
the period
Developed
units
Period end
Period end
units
units
units
units
Affordable and general needs 56
-
56
56
Supported housing 1,096
9
1,105
1,096
Care homes 48
-
48
48
Total social housing units owned and / or
**manage **		 1,200
9
1,209
1,200
Social housingunits managed but not owned 26
-
26
26
Total owned and managed accommodation 1,174
9
1,183
1,174
Total units owned and / or manage 1,200
9
1,209
1,200
YMCA SPG 2022
2022
2022
2021
At the start of
the period
Developed
units
Period end
Period end
units
units
units
units
Affordable and general needs 56
-
56
56
Supported housing 691
5
696
691
Care homes 48
-
48
48
Total social housing units owned and / or
**manage **		 795
5
800
795
Social housingunits managed but not owned 26
-
26
26
Total owned and managed accommodation 769
5
774
769
Total units owned and / or manage 795
5
800
795

9. Directors’ emoluments

No member of the Board received any remuneration from the Group (2021: £0). No expenses were reimbursed for Board members (2021: £0).

48

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

10. Employee information

Group Group YSPG YSPG
2022 2021 2022 2021
£ £ £ £
Staff Costs
Wages and Salaries 10,752,641 11,628,246 8,093,407 8,799,095
Social security costs 762,562 741,258 591,387 563,084
Other pension costs 393,923 739,201 299,341 553,993
11,909,126 13,108,705 8,984,135 9,916,172

Group other pension costs include a £0 (2021: £346,331) defined benefit pension contributions deficit arising from a triennial pension revaluation increase in liability; YSPG defined benefit pension contributions deficit £0 (2021: £256,461) (see pension notes).

Group
Group
YSPG
YSPG		 Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
Redundancy and termination payments
Statutory redundancy payments 10,706
174,047
10,706
108,320
Payment in lieu of notice period 14,000
89,430
14,000
77,232
Compensation for loss of office 23,000
22,222
23,000
18,432
47,706
285,699
47,706
203,984
Group
Group
YSPG
YSPG
2022
2021
2022
2021
Average number of Full time equivalent
employees		 Number
Number
Number
Number
Managers 75
71
52
54
Service Delivery 233
256
177
192
308
327
229
246

The number of employees who earned more than £60,000 (excluding pensions) during the year was:

Group Group
2022 2021
Number Number
£60,001 - £70,000 4
2
£70,001 - £80,000 2
3
£80,001 - £90,000 -
-
£90,001 - £100,000 -
1
£100,001 - £110,000 1
-
£110,001 - £120,000 1
1

Total pension contribution for the higher paid employees was £22,071 (2021: £23,402).

11. Directors’ and executives remuneration

Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
Senior executive emoluments 578,147
649,936
578,147
649,936
Contribution to pension scheme 22,071
25,171
22,071
25,171
600,218
675,107
600,218
675,107

The highest paid employee’s emoluments and pension costs as an ordinary member of the contributory pension scheme in the year ended 31 March 2022 were £113,823 (2021: £122,698) and £4,533 (2021: £4,420) respectively.

49

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

12. Surplus on disposal of fixed assets

Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
Income from sales of housing properties 12,728,067
-
12,728,067
-
Cost of sales(includingsellingcosts) (9,078,923)
-
(9,078,923)
-
Surplus on housing properties sales 3,649,144
-
3,649,144
-
(Loss)/ Surplus on other assets disposals (42,808)
8,735
(41,748)
8,735
3,606,336
8,735
3,607,396
8,735

13. Interest payable and similar charges

Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
Bank Charges 133,545
10,848
133,545
10,848
Bank overdraft/loans repayable within 5 years 818,346
838,247
632,594
637,744
Amortization of arrangement fees 40,732
40,024
40,732
40,024
859,078
878,271
673,326
677,768
Bank overdraft/loans repayable within 5 years;
Capitalised		 -
-
-
-
Interest and financing costs 859,078
878,271
673,326
677,768

The cumulative amount of capitalised interest at balance sheet date was £727,935 (2021: £727,935).

14. Operating surplus on ordinary activities before taxation

The operating surplus is stated after charging/(crediting):

Group Group YSPG YSPG
2022 2021 2022 2021
£ £ £ £
Depreciation of tangible assets:
Owned assets 1,731,527
1,812,455
1,507,742
1,541,173
Impairment of development costs 162,834
-
162,834
-
(Profit) on disposal of fixed assets (3,606,336) (8,735) (3,607,396) (8,735)
Auditors’ remuneration:
In their capacity as auditors 56,100
49,780
28,400
30,080
Tax work 9,705
7,688
4,055
7,688
Other services 19,680
10,763
8,661
10,763
Operating lease rentals:
Land & buildings 745,639
671,428
744,238
671,428
Other services 86,134
113,234
72,913
106,567

50

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

15. Intangible fixed assets

15.
Intangible fixed assets
Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
Cost
At 1 April 169,347
169,347
-
-
Additions -
-
-
-
(Disposals) (169,347)
-
-
-
At 31 March -
169,347
-
-
Depreciation
At 1 April 169,347
169,347
-
-
Charge for year -
-
-
-
(Disposals) (169,347)
-
At 31 March -
169,347
-
-
Net book value
At 1 April -
-
-
-
At 31 March -
-
-
-

51

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

16. Tangible fixed assets

Group

Group
Housing Property
Other Property
Other Assets
Freehold
Buildings
Long
Leasehold
Land and
Building
Development
Buildings
Freehold
Short
Leasehold
Buildings
Computer
Equipment
Furniture
and
Equipment
Motor
Vehicles
Total
£
£
£
£
£
£
£
£
£
Cost or Valuation
At 1 April 2021 41,442,323
8,350,278
11,913,083
875,480
59,007
1,883,341
7,401,725
27,315
71,952,552
Additions 592,071
163,149
5,226,599
-
-
257,099
191,851
-
6,430,769
Disposals (40,884)
(375,897)
(9,588,649)
-
(59,007)
(550,257)
(3,598,540)
-
(14,213,234)
Transfer (60,354)
102,630
(3,810)
(38,466)
-
-
-
-
-
Impairment -
(162,834)
-
-
-
-
-
(162,834)
At 31 March 2022 41,933,156
8,240,160
7,384,389
837,014
-
1,590,183
3,995,036
27,315
64,007,253
Depreciation
At 1 April 2021 6,079,764
1,579,354
1,290,249
5,275
59,007
1,202,396
5,528,620
26,515
15,771,180
Charges for the year 807,842
278,715
-
3,227
-
328,123
312,820
800
1,731,527
Disposals (270,610)
(375,897)
(280,000)
-
(59,007)
(546,197)
(3,559,793)
-
(5,091,504)
Transfer (30,465)
(10,895)
-
3,736
-
-
37,624
-
-
At 31 March 2022 6,586,531
1,471,277
1,010,249
12,238
-
984,322
2,319,271
27,315
12,411,203
Net Book Value
At 31 March 2022 35,346,625
6,768,883
6,374,140
824,776
-
605,861
1,675,765
-
51,596,050
At 31 March 2021 35,362,559
6,770,924
10,622,834
870,205
-
680,945
1,873,105
800
56,181,372

52

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

16. Tangible fixed assets (continued)

YSPG

Housing Property
Other Property
Other Assets
Freehold
Buildings
Long
Leasehold
Land and
Building
Development
Buildings
Freehold
Short
Leasehold
Buildings
Computer
Equipment
Furniture
and
Equipment
Motor
Vehicles
Total
£
£
£
£
£
£
£
£
£
Cost or Valuation
At 1 April 2021 26,832,690
5,489,005
11,909,273
-
59,007
1,883,341
5,923,648
27,315
52,124,279
Additions 509,134
37,422
5,344,921
-
-
257,099
143,194
-
6,291,770
Disposals (35,803)
(143,604)
(9,588,649)
-
(59,007)
(550,257)
(2,155,452)
-
(12,532,772)
Transfer (105,630)
105,630
-
-
-
-
-
-
-
Impairment -
(162,834)
-
-
-
-
-
(162,834)
At 31 March 2022 27,200,391
5,488,453
7,502,711
-
-
1,590,183
3,911,390
27,315
45,720,443
Depreciation
At 1 April 2021 6,128,582
1,573,396
1,290,250
-
59,007
1,202,396
4,487,360
26,515
14,767,506
Charges for the year 838,461
116,244
-
-
-
328,123
224,114
800
1,507,742
Disposals (265,529)
(143,604)
(280,000)
-
(59,007)
(546,197)
(2,117,765)
-
(3,412,102)
Transfer 10,895
(10,895)
-
-
-
-
-
-
-
At 31 March 2022 6,712,409
1,535,141
1,010,250
-
-
984,322
2,593,709
27,315
12,863,146
Net Book Value
At 31 March 2022 20,487,982
3,953,312
6,492,461
-
-
605,861
1,317,681
-
32,857,297
At 31 March 2021 20,704,108
3,915,609
10,619,023
-
-
680,945
1,436,288
800
37,356,773

During the year to 31 March 2021, assets acquired under a previous group merger were reclassified, so that similar items fall within the same asset type category.

53

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

17. Taxation

YMCA St Paul’s Group is exempt from Corporation Tax on its charitable activities. The trading company had no Corporation Tax for the year.

18. Debtors

Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
Rental debtors 2,059,083
1,399,303
1,433,191
876,948
Provision for bad debts (915,299)
(814,582)
(618,517)
(527,506)
Amounts owed by group undertakings -
-
-
450,829
Other debtors 12,193,448
1,317,768
12,147,763
1,256,153
Prepayments and accrued income 601,552
898,195
546,084
803,373
13,938,784
2,800,684
13,508,521
2,859,797

Other Debtors includes an amount due within one year of £8,352,176 and an amount due after more than one year of £3,087,543, from Thornsett Wimbledon Limited, in respect of the development of the Wimbledon Project, which is due to complete in August 2023. This debt will be full repaid by completion of the Wimbledon Project.

19. Creditors: amounts falling due within one year

Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
Bank Loans and overdrafts (note 20) 1,222,545
244,563
919,942
(40,732)
Hampton Fuel Allotment Charity Loan -
6,800
-
6,800
Trade creditors 1,042,418
806,364
423,847
721,175
Taxation and social security 213,278
212,658
190,995
165,570

Accruals and deferred income		 2,946,541
2,581,388
2,085,032
1,772,344
Pension Deficit Liability (note 22, 23) 173,556
173,627
128,520
128,572
Housing Grants (note 24) 276,887
276,886
276,887
276,886
Other creditors 1,014,483
117,524
522,241
101,728
Amounts owed to parent -
-
254,127
-
6,889,708
4,419,810
4,801,591
3,132,343

Rental receipts in advance of £283,838 are included within Group accruals and deferred income (2021: £545,704 included within group other creditors).

20. Creditors: amounts falling due after more than one year

Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
Bank Loans 23,437,230
24,659,774
19,733,210
20,653,155
Pension deficit liability (notes 22, 23) 1,054,096
1,227,653
780,567
909,087
Housing Grants (note 24) 11,136,393
5,153,545
11,136,393
5,153,545
35,627,719
31,040,972
31,650,170
26,715,787

54

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

20. Creditors: amounts falling due after more than one year (continued)

The aggregate debt is repayable:

Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
Due within one year or on demand 1,222,545
251,363
919,942
(33,932)

One year or more but less than two
years



1,563,416
1,539,212
1,242,442
1,236,609
Two years or more but less than five
years		 4,847,446
4,872,223
3,958,071
3,879,111
Five years or more 17,026,368
18,248,339
14,532,697
15,537,435
24,659,775
24,911,137
20,653,152
20,619,223

Loans – YMCA St Paul’s Group

The bank loans are secured by a first fixed charge over the following freehold properties: Forest Road-Main Hostel, Marsham Court-Residential, Marsham Court-Office, Brookscroft, 18 Balaclava Road, Forest Road-Gym, 49 Victoria Road-Main Hostel, Surbiton-Gym, Surbiton-Office, Forest Road-Telecoms, Rodney House in Walton-on-Thames, Langdown in Molesey. Loans bear interest at rates between 2.00% and 3.25%.

Loans – West London YMCA

The loan is secured by fixed charges on 323 units of leasehold and freehold housing properties. The capital element is repayable in instalments over 20 years starting on 28 September 2011. Interest is charged at various rates with a weighted average of 3.89% (2021: 3.91%) at the year-end and £2,214,487 (2021: £2,427,121) is due after more than five years.

The housing property finance is secured by a first charge on certain freehold housing properties. It is repayable in instalments with 25 years to run. It bears interest at 10.875% (2021: 10.875%) and £279,184 (2021: £283,788) is due after more than five years.

21. Operating lease commitments

At the year-end, the total future minimum lease payments non-cancellable operating leases were:

Group Property Property
Other
Other
2022 2021
2022
2021
£ £
£
£
Total future payments due:
Less than one year 608,273
619,656
21,933
104,323
later than one year and less than five years 1,616,077
1,375,620
-
23,491
Later than five years 3,100,197
966,675
-
-
5,324,547
2,961,951
21,933
127,814
Lease payments expensed in the year 745,639
671,428
86,134
113,234
YSPG Property Property
Other
Other
2022 2021
2022
2021
£ £
£
£
Total future payments due:
Less than one year 605,672
619,656
18,044
97,656
later than one year and less than five years 1,604,873
1,375,620
-
19,602
Later than five years 929,745
966,675
-
-
3,140,290
2,961,951
18,044
117,258
Lease payments expensed in the year 744,238
671,428
72,913
106,567

55

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

22. Pension deficit liability

Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
At 1 April 1,401,280
1,228,645
1,037,659
909,822
Unwinding of discount and under provision 19,436
13,744
14,393
10,177
Triennial revaluation increase -
346,331
-
256,461
Contribution paid (193,064)
(187,440)
(142,965)
(138,801)
At 31 March 1,227,652
1,401,280
909,087
1,037,659

The Pension Deficit Liability represents the amounts set aside to meet payments to the YMCA Pension and Assurance Plan towards its deficit and is included under creditors within the Balance Sheet.

The contractual obligation to make pension deficit contribution payments, as calculated based on the discounted value of expected future payments, is split as follows:

Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
Due within one year 173,556
173,627
128,520
128,572
One year or more but less than two years 173,486
173,556
128,468
128,520
Two years or more but less than five years 520,038
520,248
385,092
385,248
Five years or more 360,572
533,849
267,007
395,319
1,227,652
1,401,280
909,087
1,037,659

In addition, YMCA St Paul’s Group may have over time liabilities in the event of the non-payment by other participating YMCAs of their share of the YMCA Pension Plan’s deficit. It is not possible currently to quantify the potential amount that YMCA St Paul’s Group may be called upon to pay in the future.

23. Pensions

The Group operates a number of pension schemes:

Defined benefit pension scheme

YMCA St Paul’s Group participated in a contributory pension plan providing defined benefits based on final pensionable pay for employees of YMCAs in England, Scotland and Wales. The assets of the YMCA Pension Plan are held separately from those of YMCA St Paul’s Group and at the year-end these were in the Mercer Dynamic Derisking Solution, 63% matching portfolio and 37% in the growth portfolio and Schroder (property units only).

The most recent completed three year valuation was as at 1 May 2020. The assumptions used which have the most significant effect on the results of the valuation are those relating to the assumed rates of return on assets held before and after retirement of 2.59% and 1.09% respectively, the increase in pensions in payment of 2.99% (for RPI capped at 5% p.a.), and the average life expectancy from normal retirement age (of 65) for a current male pensioner of 22.0 years, female 24.4 years, and 23.7 years for a male pensioner, female 26.1 years, retiring in 20 years’ time. The result of the valuation showed that the actuarial value of the assets was £146.1m, which represented 79% of the benefits that had accrued to members.

The Pension Plan was closed to new members and future service accrual with effect from 30 April 2007. With the removal of the salary linkage for benefits all employed deferred members became deferred members as from 1 May 2011.

The valuation prepared as at 1 May 2020 showed that the YMCA Pension Plan had a deficit of £36 million. YMCA St Paul’s Group has been advised that it will need to make group monthly contributions of £17,916 (2021: £16,128) from 1 May 2022 (YSPG £13,267, 2021: £11,943). This amount is based on the current actuarial assumptions (as outlined above) and may vary in the future as a result of actual performance of the Pension Plan. Agreed future deficit contributions have been discounted using a rate of 3% (2021: 3%). The current recovery period is 7 years commencing 1st May 2022.

In addition, YMCA St Paul’s Group may have over time liabilities in the event of the non-payment by other participating YMCAs of their share of the YMCA Pension Plan’s deficit. It is not possible currently to quantify the potential amount that YMCA St Paul’s Group may be called upon to pay in the future.

56

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

23. Pensions (continued)

Defined Contribution Schemes

YMCA St Paul’s Group also operates a defined contribution pension scheme for the majority of its employees. The assets of this scheme are also held separately from those of the company and contributions are charged to the income and expenditure as they fall due. The combined pension charge of both schemes is shown in note Employee information.

24. Deferred capital grant

24. Deferred capital grant
Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
At 1 April 5,430,431
5,707,317
5,430,431
5,707,317
Received during the year 6,259,735
-
6,259,735
-
Released to income during the year (276,887)
(276,886)
(276,887)
(276,886)
At 31 March 11,413,279
5,430,431
11,413,279
5,430,431

The Greater London Authority agreed to provide a grant of £8,346,313 to build 121 affordable rent units at Wimbledon. In July 2021, following start of work on site, 75% of this was received (£6,259,735); the remaining 25% will be paid upon practical completion.

25. Statement under section 37 Local Government and Housing Act 1989

Hampton Fuel Allotment Charity (HFAC)

The Group received restricted grant funding from the HFAC, which has been fully utilised towards the revenue expenditure and refurbishment of the White House centre.

26. Capital commitments

Group
Group
YSPG
YSPG		 Group
Group
YSPG
YSPG
2022
2021
2022
2021
£
£
£
£
Commitments contracted but not provided for
Computer software
22,525
-
22,525
-
Maintenance
56,364
28,391
56,364
-
Construction
13,336,174
65,929
13,336,174
65,929
Fixtures andFittings
3,081
-
-
-
13,418,144
94,320
13,415,063
65,929
Expenditure approved but not contracted
Construction
-
18,699,057
-
18,699,057
-
18,699,057
-
18,699,057
Capital commitments will be funded:
New loans and grants 2,509,562
8,346,313
2,509,562
8,346,313

Payments from Thornsett
Wimbledon Limited



10,826,612
10,826,612
Internal cash reserves 81,970
10,447,064
78,889
10,418,673
13,418,144
18,793,377
13,415,063
18,764,986

57

Notes to the financial statements for the year ended 31 March 2022 (continued)

YMCA St Paul’s Group

27. Related party transactions

The Group Director of Operations is also the chair of the Board of Governors of Woodside Primary Academy, a ReAch2 Trust academy. The school hire the facilities at the YMCA in Walthamstow on a regular basis. The value of the transaction for the year was £0 (2021: £0).

Members of the Board, Executive Team and Senior Staff made donations to YMCA St Paul's Group of £0 (2021: £1,444).

All transactions with the related party are carried out on standard terms of business.

The ultimate controlling party of the Group is YMCA St Paul’s Group - registered charity, which itself has no ultimate controlling party. The two immediate active subsidiaries are YMCA West London and YMCA St Paul's Group (Development) limited.

The objective of YMCA St Paul's Group (Development) limited is the provision of development services to the parent.

The Charity performs a number of functions of an administrative nature on behalf of its subsidiaries.

2022
2022
2021
2021
£
£
£
£
Charges from the parent YMCA West
London
YMCA St Paul's
Group
(Development)
YMCA West
London
YMCA St Paul's
Group
(Development)
Overheads charges 2,024,114
24,339
2,066,940
-
Catering charges 23,636
-
-
-
2,047,750
24,339
2,066,940
-
Charges to the parent
Build and design fees -
(6,034,409)
-
-
Counselling for residents (44,333)
-
-
-
(44,333)
(6,034,409)
-
-

28. Legal status

YMCA St Paul’s Group is a company limited by guarantee (company number 02971930), a registered charity (number 1041923) and is registered with the Regulator of Social Housing as a social housing provider (number LH4078).

58