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2022-03-31-accounts

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

YMCA ESSEX

REPORT OF THE TRUSTEES AND AUDITED

CONSOLIDATED ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

Page CONTENTS

1 STRUCTURE AND ADMINISTRATIVE INFORMATION

2 OUR AIMS AND OBJECTIVES

8 GOVERNANCE AND MANAGEMENT

11 FINANCIAL INFORMATION

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

STRUCTURE AND ADMINISTRATIVE INFORMATION

Board of Trustees

Name: Office: Serving on Committees: Mr Mike Bromfield Chair Governance, Finance Revd Raymond Gibbs Vice Chair Governance Mr Michael Minta Treasurer Finance, Audit Mr David Clarke Company Secretary Finance, Governance, Audit Ms Dawn Bostock Finance, Audit Mrs Elspeth Johnson Governance Mr Roger McFarland (resigned 1 February 2022) Ms Caroline Bald (resigned 23 November 2021) Ms Aimee Picton (resigned 6 September 2021)

In addition, Board meetings were usually attended by:

Lady Rosemary Ruggles-Brise DL

President

During 2021/22 Chelmsford City Council was represented at Board meetings in a non-voting capacity by: Mrs Christine Shaw

Senior Management Staff

Chief Executive

Revd Andy Drake

Contact details

Address & Registered Office

YMCA Essex Victoria Road Chelmsford Essex CM1 1NZ

Telephone Website Email Registered charity number Company number

01245 355677 www.ymcaessex.org.uk reception@ymcaessex.org.uk 1054070 3171206

Main advisers

Auditors: THP Limited Chartered Accountants and Statutory Auditors 34-40 High Street Wanstead London E11 2RJ HR Consultants: HR Elite 11 De Grey Square De Grey Rd Colchester CO4 5YQ

Bankers: Barclays Bank PLC Barclays Business Centre 40-41 High Street Chelmsford CM1 1BG

Cater Allen Bank 9 Nelson Street Bradford BD1 5AN

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

YMCA ESSEX

YMCA Essex is one of approximately 116 YMCAs who constitute the YMCA Federation in England and Wales, working with young people and transforming lives throughout the country. Founded in 1844, the Federation is in turn part of the YMCA World Alliance and now reaches more than 65 million people in 120 countries worldwide, working with young men and women regardless of race, religion or culture.

YMCA Essex is a Christian charity rooted in local communities and working with people of all faiths and none to meet the needs of children, young people and their families, and supporting them so they can develop and grow and achieve their goals in life. Our premises at YMCA Chelmsford and YMCA Colchester provide the base for our activities across a wide and expanding area of Essex. We influence the lives of thousands of young people every year through a diverse range of programmes and services focused on their individual needs.

We have established a trading company, ‘YMCA Essex (Trading) Ltd’ [company number 03041709]. The trading company is a wholly owned subsidiary of the charity and carries out a number of activities with the aim of creating a surplus to be used for the benefit of the charity.

OUR AIMS AND OBJECTIVES

In summary, the objectives of YMCA Essex are to enable Christians to come together with people of other faiths and of none in order to help young people with their personal, social, educational and spiritual development, to provide accommodation, and to improve their health and wellbeing through the services and support we can offer them.

These objectives have shaped the Mission, Strapline, Values and Priorities of YMCA Essex:

----- Start of picture text -----
Our Mission:
Building Lives, Hope and Futures
for children, young people and families
Our Strapline:
‘Unleashing Potential’
Our Values:
• Christian – inspired by faith, hope and love
• Caring – here to help everyone we can
• Creative – always looking for new opportunities
• Committed – aiming for excellence in all we do
Our Priorities:
1. SERVICES: Strengthen and expand our ability to meet the needs of
children, young people and families.
2. OPERATIONS: Implement an adaptive, resilient, sustainable
operational model which optimises resources for our Mission.
3. PARTNERSHIPS: Pursue opportunities for partnership working to
increase our impact and effectiveness.
4. COMMUNICATIONS: Raise our profile and build support for the vital
work we do from communities, beneficiaries, donors, funders and
commissioners.
----- End of picture text -----

We have taken account of the Charity Commission’s Public Benefit Guidance in establishing and reviewing our aims and objectives, and in planning and resourcing our activities to achieve them. We offer services to children, young people and families across a wide area of Essex. We work with all people, while focusing especially on those with greater needs and fewer opportunities. We help to give children a better start in life. We provide positive activities, safe places to go, role models and mentors for young people. We help families through difficult times at home, in school, in local communities, in finding somewhere to live, and in work and finding work. We aim to make a real difference to the lives of all those with whom we work.

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

THE TRUSTEES’ AND STRATEGIC REPORT FOR 2021/22

Our Services

We provided a wide range of services, projects and activities during 2021/22 including:

Housing work

At YMCA Colchester we have 44 flats available for rent to homeless young people aged between 16 – 25. They can stay at YMCA Colchester for up to two years and during their tenancy are given support in many areas to help them move on to independent living successfully. Support includes budgeting, claiming benefits, getting into, staying at, and finishing college, finding work and sustaining a job, coping with mental and physical ill health, sexual health advice, rebuilding relationships with family and many other things.

In recent times we have been able to offer a refurbished experience including new fast internet and Wi-Fi, telephony and CCTV, new carpets and interior decoration, and interior space better suited for both socialising and working.

During 2021/22 we had 41 residents move in and out. Of those who moved out 36 moved on positively to social housing, back to family or to private rented accommodation. We continued to work closely with other supported housing providers in Colchester as well as the Youth Enquiry Service and Colchester Borough Homes.

Covid-19 made life in supported accommodation much more challenging, both for staff and tenants, but we were very proud of the generally positive atmosphere and performance of the project over the various lockdowns. Some days felt quite dark and challenging, but the housing project pulled through.

Community Youth groups

YMCA Essex provides detached, drop-in and outreach youth work in a variety of locations to provide positive activities for young people to build healthy relationships, to be mentored, and to engage in community programmes which reduce anti-social behaviour and promote improved inter-generational engagement.

We support hundreds of young people each week in youth groups, and advertise in schools, on social media and in local areas. Most of the young people however come along due to hearing great things from their friends.

Although during Covid-19 the various Youth Groups that we run around the county had to be paused, through one-to-one and online work we managed to stay in touch with many of the young people. Detached work, funded through a grant sourced by ECVYS, enabled us to continue to support young people in targeted areas who were still present on the street during lockdown and beyond.

Family Support Work and Schools’ Work

Family Support - This service works with children, young people and families to make positive impacts and improve children’s attendance, behaviour, wellbeing and life inside school and out. We work with 1 day school catering for young people with moderate learning difficulties, 1 secondary and 13 primary schools in the Chelmsford, Colchester and Rayleigh areas for both prevention and intervention. The team also runs workshops at the request of the schools, including on the subjects of team building, communication, selfesteem, self-confidence, homelessness and world poverty. In 2021/22, the Family Support team worked with hundreds of children, young people and their families through referrals from schools. Every referral resulted in improved attendance, behaviour and/or academic achievement.

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

Throughout the pandemic and lockdowns our support was usually conducted virtually, which we found worked well in most cases. Each child or young person completes a Y-Web soft outcomes monitoring tool which reports on improved emotional, social, domestic

and academic wellbeing. Our mission is to give every young person a voice and to be committed to providing positive change in their life.

Essex County Council FifXtra initiative - YMCA Essex has been supporting Essex County Council’s Family Innovation Fund to ensure that young people across Essex receive the right support to help guide them through anxieties, relationship breakdowns, poor health and lifestyle, coping and managing change as well as other effects from Covid-19. We are working together to ensure that coronavirus doesn’t stop young people from unleashing their full potential but encourages and empowers them to live their best life.

This project has now been funded for a further year.

Safer Community Youth worker - This role has been supporting hundreds of young people in school assemblies through meditation and spirit-based thinking, small group workshops known as ‘The Starting Point’ and 1:1 sessions. This is where young people are encouraged to leave everything where it is and start again from this point, focusing on moving forward, forgiveness and positive mindset. They are able to be guided through challenging times using trauma informed care approaches and reflective listening. This work has been conducted almost entirely online and often in very creative ways during periods of lockdown.

Educational Welfare Work - We operate in many schools across Essex offering educational welfare support work, focusing mainly on attendance issues as opposed to the Family Support Work but with some overlap. We are pleased to see this work also serving in Jaywick, which is currently the most deprived ward in Britain.

Childcare Work

Out of School Clubs, and Holiday Clubs - Out of School Clubs continue to be very popular. Children are cared for in a fun and enriching environment that enables them to engage and build positive relationships, enhance experiences, complete homework, and grow their skills and experience to derive the greatest benefit from their education. This wrap around care also continues to be a support to parents needing extended care either side of school times. We have enhanced our provision across two of our busiest locations to enable us to take more children due to popular demand.

Although Coronavirus saw a pause in many Out of School Activities, as schools have reopened so have their associated activities. Of particular note are new model Holiday Clubs that Active Essex has commissioned us to run across the county in 11 different locations. The clubs aim to give nutritious meals and exciting activities every day for the children attending, and also provide an opportunity to work closer with their families.

We are operating 8 out of school clubs across the city centre of Chelmsford.

Across all our childcare services this year we hope to engage with over 1,000 Essex families.

Nursery - Our Nursery is open Monday to Friday for 51 weeks per year from 7:30am-6:00pm for children aged 3 months to 5 years. The Nursery served approximately 25-30 children and their families each week during 2021/2022. The beginning of 2022/2023 has seen an increase in the number of children attending.

Nursery tried to stay open during the Coronavirus lockdowns to support key workers, but low take-up meant it temporarily shut, and then reopened when lockdown began to ease, slowly moving back toward normal operating numbers.

The Nursery has a “Good” Ofsted rating which enables us to take 2-year funded children. Staff have continued to work hard to ensure we offer the best possible provision for our children and families.

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

We are still supporting families referred to us via support workers at Essex County Council and the Women’s Refuge, and also children from refugee families, Afghan in particular. Our staff have offered additional support to families that have needed help with choosing schools and applying for the schools of preference. This is a service that many parents have expressed was vital for them so we will continue next year with this line of support.

Operations

YMCA Essex is delivering on its vision of expanding across the county to deliver its core offers to local communities. At the time of writing the work spans from Harlow in the West to Dedham in the East. All departments are led by a Head / Manager team which gives us the flexibility and resilience we need and contributes to providing costeffective services with most staff working on the ‘frontline’.

Our IT is cloud based running up to date versions of Microsoft Windows© and the Office 365© system with Sharepoint© for data management.

Like many YMCAs we have signed the recent Rights and Responsibilities charter which includes a requirement to achieve the equivalent of Trusted Charity status by the end of 2023, and which we are working toward. We are also working toward being a Real Living Wage employer and have made interim steps toward this for the lowest paid in the organisation. In November 2021 the organisation started paying the Real Living Wage as its minimum wage.

Through our Governance Committee we maintain an up-to-date governance framework for YMCA Essex, and in 2021/22 continued the process of comprehensive, systematic policy review and revision.

Y Housing is a Housing Association made up of 7 participating YMCAs each with properties that offer supported accommodation, our Colchester property is one of these. Each YMCA has a director on its Board of Trustees and a special buyback arrangement means that the YMCAs can purchase the properties within 25 years of the original purchase date should they become Registered Providers with the Homes and Communities Agency. This has been an exciting development which has ensured the long-term viable future for YMCA supported accommodation in Colchester.

To assist with GDPR compliance, our data is accessed through Microsoft SharePoint©. We have also thoroughly reviewed how we handle and control data including ensuring staff know their role in this and the protocols required.

Partnerships

Working with local YMCAs across the country, our national federation of YMCAs in England and Wales has published the Federation Strategy 2017-2021. We endorse the strategy’s vision for the YMCA to be:

We also endorse the strategy’s Key Work Areas and Outcomes, to be delivered by YMCA England and Wales, working together with local YMCAs:

We have also been involved in the formulation of a new national strategy, with our CEO sitting on one of the strategic steering groups. We look forward to being a part of the 2023 vision and strategy that will be unfolding as a result.

The Chairs and Chief Executives of all the YMCAs in the East of England meet regularly to identify opportunities for us to achieve these aims and objectives in our region, to share experiences and ideas, and to look at how we can extend our impact and generate more resources through working in partnership.

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

YMCA Essex maintains good working relationships with councillors and senior staff at Essex County Council, Chelmsford City Council, and other local authorities where we are active, and we appreciate their strong support for the YMCA. We were particularly grateful to the City Council for their £25,000 grant in 2021/22.

We work closely with ‘Churches Together’ in the Chelmsford area and maintain Christian links where we can. We are developing stronger links with local churches, with our CEO Andy Drake preaching to local congregations on behalf of the YMCA. We also work with other like-minded organisations through ‘Citizens-UK’ to enable grassroots campaigning for change, seeking for communities to be shaped more by their members than by outside sources.

It should be noted that although the schools and parish councils we work with are, strictly speaking, our clients, in practice we are like partners working together to achieve the same goals. This is borne out in how our pricing for such services typically represent ‘at cost’ models, and how we sometimes work closely to co-design bespoke solutions.

Communications

One of our key strategic priorities is to raise our profile and build support for the vital work we do from communities, beneficiaries, donors, funders and commissioners.

We continue to innovate and develop a cutting edge feel for our print and electronic media, always seeking to better communicate our mission to existing and new stakeholders.

We publicise our activities through our website including our online news and seasonal e-newsletter which goes out to all subscribers, through leaflets, through the media, and in face-to-face contacts with people through our services, projects and events, and through networking with businesses, public and voluntary sectors. Relationships with local media have led to positive YMCA coverage.

Finance

Our principal sources of income are the Nursery, Out of School Clubs, Housing work and, to a lesser extent, the Family Support Programme and Education Welfare Service. All of which operate on a social enterprise model, with any surplus being ploughed back into the local work.

The end of year outturn was an overall surplus on unrestricted general funds of £89,620, this was high mainly due to the new holiday clubs and the back dated VAT claim. Whilst we would always wish to produce a surplus this does represent challenging changes to our service provision (notably childcare) and the building of capacity within the organisation. We hope to see continued improvement in performance in the future producing a small surplus, but it is likely the effects of Coronavirus will continue to challenge these attempts.

The Trustees recognise that our financial position is particularly dependent on the level of take-up of our incomegenerating services. It will therefore be important for us to maintain and expand those services in the coming years and to attract further income from additional sources especially to support the costs of our charitable youth work.

Future Plans and Strategy

There are more than 400,000 children and young people aged 19 or under living in Essex. The potential need and demand for the services provided by the YMCA is therefore huge. Our strategy for the future aims to expand our

services both geographically and numerically to meet more of these needs, working alongside other leading YMCAs wherever possible.

Our aim is for Community Hubs to be developed organically across Essex out of which YMCA services and staff can share our particular blend of professionalism and kindness. These Community Hubs would offer and/or be connected to a diverse range of services, from our core work of childcare, youthwork and housing to newer projects involving information, advice and guidance giving, intervention for those facing domestic abuse, outward bound community

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

development work, and potentially much more. From 2020-2030 these hubs will grow both opportunistically and intentionally.

To undergird the strategy a Capacity Building Plan (CBP) has been put into effect, made possible by a £60k donation and match funding from YMCA Essex reserves. This has worked well and new youth, housing and childcare services have come on stream or have been planned for future implementation as a result of the CBP.

The CBP came to an end in Q2 2021/2022, and we are extremely grateful to the donor who made it possible. There is a direct connection between the capacity it has created and the delivery of Holiday Clubs across the county for 700 children in receipt of free school meals. This is an ambitious undertaking we could never have considered 3 years ago.

Alongside these plans, we continue to communicate well with our neighbouring YMCAs and seek collaborative work where possible. We remain open to strategic partnerships with other like-minded organisations and are aware that exciting developments can come from the most unlikely of places.

Conclusion

2021/22 was a challenging but encouraging year with regard to the delivery of the charity mission and the resultant financial outturn. The unique services we offered to children, young people and families continued to be of the highest standard and operated smoothly despite the challenges. Prior to Covid-19 we were planning to implement changes that would lead us through to surplus, whilst sustaining the excellent output and growth in services. Whilst the delivery of this plan has been challenging, we remain resilient and have achieve an £89k surplus, with all of our services intact, and with new services now to deliver. Indeed, the new Holiday Clubs are such a big enterprise they alone may grow the organisation by up to 10% within the next year.

We continue to develop our housing portfolio with plans for even a supported-accommodation focused redevelopment of our Chelmsford site, adjust our childcare offer to achieve profitability in the trading subsidiary, and improve our communications and relationships to help capitalise on the growth opportunities that the current volatile environment is producing.

Turning to the present, it is when we hear the many individual stories of children and young people whose lives have been completely turned around by their involvement with the YMCA, that we know we are making a real difference.

None of this would be possible without all the wonderful people who work for and support the YMCA. We would like to pay tribute to our paid and voluntary staff under the leadership of our Chief Executive, Andy Drake. We have a very professional, talented and committed staff team at the YMCA, who are highly valued for everything they are achieving.

We wish to thank our Treasurer, Finance Committee and the Finance Team for their dedication and hard work in financial planning, monitoring and control.

We are very grateful to all the organisations and individuals who have made donations, whether large or small, enabling us to undertake many vital projects and activities. We record our thanks to our fellow Board Members and all the other volunteers who give so much to the YMCA.

Finally, we thank all those who have supported us in prayer and in action during the last year.

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

GOVERNANCE AND MANAGEMENT

Articles of Association

YMCA Essex is a charitable private company limited by guarantee, incorporated on 12 March 1996 and registered as a charity on 26 March 1996. The charity is governed by its revised Articles of Association adopted on 25 January 2016.

YMCA Essex’s charitable objectives, in full, are:

Board of Trustees

The Board of Trustees meets quarterly. The Board’s purpose is to:

Trustees serve on the Board for a maximum of three consecutive three-year terms before taking a break of at least one year.

The Board aims to have a balanced and capable team of Board Members including:

The Board welcomes applications at any time from people who may be interested in serving as Board Members. When it wishes to strengthen or diversify its membership, it will actively seek candidates with the required skills and attributes by a range of means which may include open advertisement. Following a successful recruitment process, the Board will appoint a new Trustee as a Board Member.

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

New Trustees receive an induction programme, to familiarise them with the services and operations of YMCA Essex and the work of the wider YMCA movement, and to equip them to fulfil their responsibilities as Trustees for governance, strategy, finance, communication and representing the YMCA effectively. Further training and development opportunities are made available to all Trustees on an ongoing basis.

Committees

The Board has appointed four Committees to assist the work of the Board and the YMCA:

Management and Organisation Structure

A scheme of delegation is in place and the Board has delegated the day to day responsibility for the YMCA’s services and operations to the Chief Executive and their Managers. The Managers each lead one of the five main areas of Childcare & Corporate Services, Youth Work, Housing, and Finance, and Communications, Fundraising and Events. There are over 57 staff and over 20 volunteers working for YMCA Essex in the charity and its subsidiary trading company.

The key responsibilities of the Chief Executive are to:

Risk Management

The Board has a Risk Management Policy, incorporating a Risk Register, and both are reviewed and updated annually. Our strategic risk analysis shows that the YMCA currently faces 4 risks classed as Major within the methodology we have adopted:

There are also 8 risks classed as Moderate:

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

Coronavirus Pandemic

In addition to these risks identified through YMCA’s strategic risk management process, the Covid-19 pandemic has presented a unique, unprecedented and uncertain risk to services, operations and finances. Service delivery and staffing arrangements were rapidly adapted to enable us to fulfil our mission to the best of our ability during the crisis, while protecting the charity’s financial position and its ability to recover when the situation improved.

The Board is satisfied that the above risks are being consistently and effectively managed and mitigated and considers that the resultant risk profile is acceptable and appropriate in relation to the YMCA’s objectives and responsibilities. The nature of the services which the YMCA provides to service users and the environment within which the charity operates, mean that we will inevitably face risks due to factors beyond our control. We are willing to tolerate higher risks if they can be justified by the potential benefits for children, young people and families.

Related Parties

YMCA Essex is a part of the national federation of YMCAs in England and Wales and is affiliated to YMCA England and Wales, which is the national organisation responsible for representing and equipping local YMCAs. We support its vision and overall strategy and seek to play our part in delivering them in a way which is appropriate for our local context.

YMCA Essex (Trading) Ltd is a wholly owned subsidiary of the YMCA Essex charity, whose principal activities are the provision of Nursery care, Out of Schools work and room hire facilities at Chelmsford. The Directors of the trading company are the Board Members who are on the charity’s Finance Committee together with the Chief Executive and the Head of Finance.

YMCA Essex receives an annual grant for work in the Chelmsford area from Chelmsford City Council, which has nonvoting representation at Board meetings. We contract with a large number of schools for our Out of School clubs and Schools Work programmes.

YMCA Blackburn (known as Y Housing) is a Housing Association whose stock is entirely made up of YMCA Housing Projects, with YMCA Colchester being one of them. Each YMCA associated with Y Housing in this way has a representative on the Board, and typically the CEO, as in our case.

Remuneration and Remuneration Levels

‘Remuneration’ includes salary, pension, leave, and other financial and non-financial employment benefits.

The Board has a Remuneration Policy which is reviewed annually to provide a framework for all remuneration decisions. In 2021/22 our Chief Executive received a remuneration of £67,791.

The Trustees do not receive any remuneration.

The overall objective of our Remuneration Policy is to offer fair remuneration to attract, develop and retain staff with the right abilities, skills and competencies to lead, manage, support and deliver our services to the community.

In deciding on pay levels for staff, the following factors may be taken into account. These factors are not exclusive and any decision will inevitably include an element of discretion on the part of the Trustees.

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YMCA Essex

(Limited by Guarantee)

Charity Registration No. 1054070 Company No. 3171206

FINANCIAL INFORMATION

Funds Policy

The charity has various funds available to finance its activities. These are as follows:

(a) Unrestricted funds

These are funds expendable at the discretion of the Trustees in furtherance of the charity's objects. Such funds may be designated by the Board for a particular project of purpose. The general fund is the amount of unrestricted funds that has not been designated. The Board have reviewed the charity's general funds in line with the guidance issued by the Charity Commissioners and they believe that the charity should hold these funds because:

The Trustees believe that the minimum level of general funds should be the equivalent of three months’ essential operating costs calculated and reviewed annually. As at the end of March 2022, the general fund stood at £194,051.

(b) Designated funds

As shown on the balance sheet, the majority of unrestricted funds are held in the form of fixed assets and as such these funds are not available to support other activities. The Board have therefore created a designated fund representing the value of fixed assets held (see note 12). In addition, the Board have also recognised the problems caused when existing funding for projects finishes and until new sources of funding are secured. We have created a Youth Work fund to allow projects to continue during these periods. We also have a replacement fund which is monies set aside for on-going maintenance and improvement of the buildings.

(c) Restricted funds

These are funds donated for specific purposes that are within the wider objects of the charity.

Other funds represent donations for the activities as detailed in note 13 to these accounts. The Board consider that YMCA Essex has sufficient assets to meet its obligations as they arise on both the designated and restricted funds.

(d) Investment Policy

Where possible all restricted funds are placed on short to medium term deposit. Due to the nature of our activities, these funds may be required at short notice, so we have a variety of draw down dates.

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

(e) Pension Deficit

YMCA Essex recognises possible concern relating to its participation in a defined benefit pension scheme and its share of the scheme deficit. Appropriate action has been taken. The scheme was closed to new members in 2007 and the link to final salary broken in 2011. Additional contributions continue 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 we have considered the implications to 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.

YMCA Essex 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 detail regarding the pension commitment is in note 15.

Subsidiary Undertaking

The accounts consolidate the results of the charity and its subsidiary YMCA Essex (Trading) Ltd. whose principal activities are the provision of Nursery care, Out of Schools work and room hire facilities. Its performance is shown in note 4 to these accounts, 2021/2022 performance is an improvement on the previous year, and we are anticipating this improvement to continue is 2022/2023.

Fixed Assets

Movements in the fixed assets are detailed in note 8.

Statement of Trustees’ Responsibilities

The Trustees (who are also Directors of YMCA Essex for the purposes of Companies Act 2006) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The Trustees are required to:

In preparing these financial statements the Trustees are required to:

The Trustees are also responsible for safeguarding the assets of the charity and its subsidiaries and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

Statement as to Disclosure of Information to Auditors

The Trustees confirm that so far as they are aware there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the charity's auditors are unaware, and that they have taken all steps that they ought to as Trustees to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information.

Liability of Members

The liability of members is limited to £1 in the event of the charity being wound up with insufficient funds to meet its debts.

Auditors

In accordance with Section 485 of the Companies Act 2006, a resolution to appoint the auditors THP Limited and authorising the Trustees to agree their remuneration will be proposed at the forthcoming Board meeting.

Signed on behalf of the Board of Trustees

Mr Mike Bromfield Chair

Date: ……………………………………………………………….

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF YMCA ESSEX (Limited by Guarantee)

Opinion

We have audited the consolidated financial statements of YMCA Essex (Limited by Guarantee) (the 'charitable company') for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Consolidated Cash Flow Statement 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 for charities ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

Page | 14

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF YMCA ESSEX (Limited by Guarantee)

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the Group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

Page | 15

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF YMCA ESSEX (Limited by Guarantee)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Shahid Hameed ACA FCCA (Senior Statutory Auditor) For and on behalf of THP Limited

Chartered Accountants and Statutory Auditors 34-40 High Street Wanstead London E11 2RJ

Date:………………………………………………….

Page | 16

YMCA Essex

(Limited by Guarantee) Charity Registration No. 1054070

Company No. 3171206

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2022

INCOMING RESOURCES
Incoming resources from generated
funds:
Rental income
Voluntary income
Grants receivable
Furlough grant
Activities for generating funds
Income of trading subsidiary
Interest receivable
Incoming resources from charitable
activities:
Youth training
Miscellaneous Income
TOTAL INCOMING RESOURCES
RESOURCES EXPENDED
Cost of generating funds:
Expenditure of trading subsidiary
Charitable activities:
Childcare services
Youth and other services
Premises
Governance costs
TOTAL RESOURCES EXPENDED
Net INCOMING/(OUTGOING)
RESOURCES
Pension deficit
NET INCOMING/(OUTGOING)
RESOURCES AFTER PENSION DEFICIT
Transfer (from)/to Designated Funds
Transfer (from)/to Restricted Funds
FUND BALANCES AT 1 APRIL 2021
FUND BALANCES AT 31 MARCH 2022		 Notes
4		 Unrestricted
Restricted
General
Designated
2022
Total
2021
Total
£
£
£
£
£
630,986
-
-
630,986
623,929
1,754
-
-
1,754
6,437
25,000
-
-
25,000
47,803
14,190
-
-
14,190
55,163
693
-
-
693
1,105
403,596
-
-
403,596
353,408
2,968
-
-
2,968
1,296
422,513
43,562
56,147
522,222
137,821
585
-
-
585
2,785
1,502,285
43,562
56,147
1,601,994
1,229,747
4
5
15
12
13		 378,923
-
-
378,923
387,626
98,306
-
-
98,306
87,438
716,814
55,176
78,909
850,899
595,275
210,222
-
-
210,222
196,584
1,025,342
55,176
78,909
1,159,427
879,297
8,400
-
-
8,400
8,520
1,412,665
55,176
78,909
1,546,750
1,275,443
89,620
(11,614)
(22,762)
55,244
(45,696)
-
-
-
-
(32,650)
89,620
(11,614)
(22,762)
55,244
(78,346)
3,876
(3,876)
-
-
-
12,818
(12,818)
-
-
100,555
940,447
114,655
1,155,657
1,234,003
194,051
937,775
79,075
1,210,901
1,155,657

All recognised gains and losses are included above.

Page | 17

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

COMPARATIVE FUNDS DISCLOSURE

INCOMING RESOURCES
Incoming resources from generated
funds:
Rental income
Voluntary income
Grants receivable
Furlough grant
Activities for generating funds
Income of trading subsidiary
Interest receivable
Incoming resources from charitable
activities:
Youth training
Miscellaneous Income
TOTAL INCOMING RESOURCES
RESOURCES EXPENDED
Cost of generating funds:
Expenditure of trading subsidiary
Charitable activities:
Childcare services
Youth and other services
Premises
Governance costs
TOTAL RESOURCES EXPENDED
Net INCOMING/(OUTGOING)
RESOURCES
Pension deficit
NET INCOMING/(OUTGOING)
RESOURCES AFTER PENSION DEFICIT
Transfer (from)/to Designated Funds
Transfer (from)/to Restricted Funds
FUND BALANCES AT 1 APRIL 2020
FUND BALANCES AT 31 MARCH 2021		 Notes
4		 Unrestricted
Restricted
General
Designated
2021
Total
£
£
£
£
623,929
-
-
623,929
6,437
-
-
6,437
47,803
-
-
47,803
55,163
-
-
55,163
1,105
-
-
1,105
353,408
-
-
353,408
1,296
-
-
1,296
102,455
3,095
32,271
137,821
2,785
-
-
2,785
1,194,381
3,095
32,271
1,229,747
4
5
15
12
13		 387,626
-
-
387,626
87,438
-
-
87,438
510,868
9,997
74,410
595,275
196,584
-
-
196,584
794,890
9,997
74,410
879,297
8,520
-
-
8,520
1,191,036
9,997
74,410
1,275,443
3,345
(6,902)
(42,139)
(45,696)
(32,650)
-
-
(32,650)
(29,305)
(6,902)
(42,139)
(78,346)
2,226
(2,226)
-
-
-
-
-
127,634
949,575
156,794
1,234,003
100,555
940,447
114,655
1,155,657

Page | 18

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206 CHARITY AND CONSOLIDATED BALANCE SHEET

FOR THE YEAR ENDED 31 MARCH 2022

TOTAL 2022 TOTAL 2022 TOTAL 2021
Notes Restricted Unrestricted
Charity		 Group Charity Group
£ £ £ £ £ £
FIXED
ASSETS
Tangible 8 - 837,175 837,175 837,175 828,532 828,532
assets
Investments 9 - 2 2 - 2 -
837,177 837,177 837,175 828,534 828,532
CURRENT
ASSETS
Debtors 10 - 86,859 86,859 64,247 105,828 67,773
Cash at bank 79,075 420,597 499,672 534,762 589,178 613,444
in hand
79,075 507,756 586,531 599,009 695,006 681,217
CREDITORS:
Amounts 11(a) - (112,689) (112,689) (128,468) (226,256) (240,442)
falling due
within one
year
TOTAL ASSETS LESS
CURRENT LIABILITIES 79,075 1,231,944 1,311,019 1,307,716 1,297,284 1,269,307
CREDITORS:
Amounts 11(b) - (96,815) (96,815) (96,815) (113,650) (113,650)
falling due
after more
than one
year
NET ASSETS 79,075 1,135,129 1,214,204 1,210,901 1,183,634 1,155,657
======= ========= ======== ====== ======= =======
FUNDS HELD
Unrestricted
funds:
General fund - 197,354 197,354 197,354 128,532 128,532
Retained in - - - (3,303) - (27,977)
subsidiary
Total - 197,354 197,354 194,051 128,532 100,555
Designated - 219,387 219,387 219,387 222,059 222,059
fund
Restricted 13 79,075 - 79,075 79,075 114,655 114,655
funds
Revaluation 8 - 718,388 718,388 718,388 718,388 718,388
reserve
79,075 1,135,129 1,214,204 1,210,901 1,183,634 1,155,657
======= ========= ======== ====== ======= =======
Charitable company’s result for the year 30,568 (44,128)
======== =======

These accounts were approved by the Board and authorised for issue on ………………………………….. and signed on its behalf by:

…………………………..…………………………

…………………………..………………………… Mr Mike Bromfield – Chair

Mr Michael Minta – Treasurer

Page | 19

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2022

Cash Generated from Operating Activities (see below)
Cash Flows from Investing Activities
Interest received
Sale of tangible fixed assets
Purchase of tangible fixed assets
Increase/(decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year		 2022
£
(68,736)
2,968
280
(13,193)
(9,945)
(78,681)
613,444
534,762		 2021
£
(12,252)
1,296
-
-
1,296
(10,956)
624,400
613,444
Reconciliation of Net Incoming Resources to Cash
Generated from Operating Activities
2022
£
Net incoming resources
55,244
Add back depreciation charge
3,876
Loss on disposal of fixed asset
395
Deduct interest income shown in investing activities
(2,968)
Decrease/(increase) in debtors
3,526
Increase/(decrease) in creditors
(128,809)
Net cash from operating activities
(68,736)		 2021
£
(78,346)
2,226
-
(1,296)
(12,051)
77,215
(12,252)

Note to Statement of Cash Flows

The company's cash flow statement reflects the presentation requirements of FRS 102, under which the cash flow statement reconciles to cash and cash equivalents.

Page | 20

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

1. GENERAL INFORMATION

YMCA Essex is a company limited by guarantee and incorporated and domiciled in England. The Charity’s registered number and registered office address can be found on page 1.

The functional and presentation currency of YMCA Essex and its subsidiary is the pound sterling.

2. ACCOUNTING POLICIES

The financial statements of the charity, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Charities Act 2011 and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, except for the non-depreciation of freehold property as explained in note 2.iv. The Trustees have decided to adopt the presentation of the Statement of Financial Activities rather than the Income and Expenditure account as required by the Companies Act as they consider that this more accurately reflects the operations of the charity.

ii. Basis of Consolidation

These financial statements incorporate the audited financial statements of YMCA Essex and its subsidiary undertaking, YMCA Essex (Trading) Ltd., who has the same year end, consolidated on a line by line basis. Common expenses have been allocated between the operations based upon estimated use.

The results of the trading subsidiary are detailed in note 4 to the financial statements. The consolidated balance sheet represents the total assets and liabilities of the group. As permitted by section 408 of the Companies Act 2006, the income and expenditure account of the parent charity is not presented as part of these financial statements. The balance sheets of the Charity and Group are both shown on page 18.

iii. Charitable Expenditure and Support Costs

The YMCA Essex operates a childcare, youth and community centre based at its premises in Victoria Road. Colchester division provides supported accommodation for young people. Charitable expenditure comprises the costs of programmes operated. No valuation is placed on the services provided by volunteers without whom the programmes could not operate. Support costs comprise the costs of running the building less those costs allocated to the trading activities. Management and administration expenses comprise administrative costs and common overheads, which cannot be allocated to specific activities.

Governance costs are expenditure incurred on the operation of the charity as opposed to any specific activity and compromise Board expenses and audit costs.

iv. Fixed Assets and Depreciation

The Trustees consider that the freehold property is maintained in such a way that the residual value is at least equal to its net book value. As a result, the corresponding depreciation would not be material and therefore is not charged in the profit and loss account. The trustees perform annual impairment reviews in accordance with the requirements of the Financial Reporting Standard 102 to ensure that the recoverable amount is not lower than the carrying value.

Other fixed assets are stated at cost less depreciation. The cost of furniture and equipment valued over £2,500 is written off over five years on a straight-line basis from the date of acquisition, Electrical equipment and motor vehicle is written off over four years on a straight-line basis.

v.

Covenants and Donations

Covenants and donations are recognised when received. No account has been taken of funds pledged but not received at the balance sheet date. Funds with restricted use are separately identified and are shown in Note 13 to the Accounts.

vi. Financial Instruments

The Group has chosen to adopt Sections 11 and 12 of FRS102 in respect of financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently carried at this value less any provision for impairment.

Page | 21

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

No general provision is made against debtors. Known bad debts are written off and specific provision is made for any considered doubtful of collection.

viii. Grants and Legacies Receivable

Income from grant and legacies is included in income when these are receivable, except when donors specify that donations given to the charity must be used in future accounting periods, the income is deferred until those periods.

Where these relate to specific items of expenditure these have been included within restricted funds.

Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment. Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. Grants of a revenue nature are credited to profit and loss so as to match them with the expenditure to which they relate.

The Charity is exempt from tax on income and gains within Section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

x.

Pension Contributions

YMCA Essex participated in a multi-employer defined benefit pension plan for employees of YMCAs in England, Scotland and Wales, which was closed to new members on 30 April 2007. The plan's actuary has advised that it is not possible to separately identify the assets and liabilities relating to YMCA Essex, therefore the scheme is accounted for as a defined contribution scheme. Further details are in note 15.

The group also contributes to a defined contribution scheme on behalf of its employees. Contributions made during the year are shown in note 6.

xi. Unlisted Investments

The Group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, not to disclose related party transactions with the group companies.

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”:

3. INCOMING RESOURCES

The statement of financial activities contains details of all the income of the charity. All income arose in the United Kingdom.

Rental income is accounted for on a receivable basis.

Income received from charitable activities represents mainly Youth Training funds and is accounted for on a receivable basis.

The turnover of the trading subsidiary represents the gross value of goods sold and services provided. Fees billed in advance for nurseries and out of school clubs are deferred according to the expected start date of the services provided.

Page | 22

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

4. NET INCOME FROM TRADING ACTIVITIES OF SUBSIDIARY

YMCA Essex has a wholly owned trading subsidiary “YMCA Essex (Trading) Ltd.” (company registration number 03041709) which is incorporated in the United Kingdom. This operates the childcare programme and room hire facilities on behalf of the charity. Its results for the year ended 31 March 2022 and 2021 are detailed below.

PROFIT AND LOSS ACCOUNT

ROFIT AND LOSS ACCOUNT
Turnover
Cost of sales
Gross profit/(loss)
Administrative costs
Other operating income
Operating profit/(loss) for the year
Amount covenanted to YMCA Essex
Retained profits/(losses) at 1 April 2021
Retained in subsidiary at 31 March 2022
AGGREGATE SHARE CAPITAL AND RESERVES		 2022
2021
£
£
386,268
222,267
296,921
304,262
89,347
(81,995)
(82,002)
17,328
(83,364)
131,141
24,673
(34,218)
-
-
(27,977)
6,241
(3,304)
(27,977)
=========
=========
(3,302)
(27,975)
=========
==========

The subsidiary’s registered office address is the same as the Registered Office address of YMCA Essex.

The turnover reduction in 2020/2021 was linked to school closures during the pandemic which has not occurred in 2021/2022, so we believe the Trading environment for childcare is back to pre covid levels.

Page | 23

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

5. RESOURCES EXPENDED

Costs directly allocated to
activities
Staff costs
Other direct costs
Support costs allocated to
activities
Premises
Heat and light
Repairs
Rates and insurance
Cleaning
Rent
Administration
Office salaries and pensions
Pensions admin charge
Staff raining
IT costs
Stationery and advertising
Telephone and licences
Fees and licences
Sundry expenses
Depreciation
VAT back dated claim
VAT Input Tax Partial
Recovery
Legal & Professional fees
Fundraising costs
Loss on Sale of assets
Auditors remuneration
Loan interest
TOTAL RESOURCES
EXPENDED		 Trading
Subsidiary
Charitable
Activities
Governance
2022
Total
2021
Total
£
£
£
£
£
248,287
434,696
-
682,983
622,506
48,634
120,641
-
169,275
36,670
3,628
27,741
-
31,369
30,770
4,730
32,690
-
37,420
24,160
-
14,183
-
14,183
11,207
10,866
26,385
-
37,251
32,934
-
109,223
-
109,223
115,876
57,322
221,115
-
278,437
249,798
-
3,996
-
3,996
3,578
-
14,355
-
14,355
4,298
-
25,182
-
25,182
12,623
1,023
4,639
-
5,662
3,421
3,083
6,457
-
9,540
12,875
-
12,873
-
12,873
16,335
-
148
-
148
-
-
3,876
-
3,876
2,226
-
(25,431)
-
(25,431)
-
-
(14,286)
-
(14,286)
-
-
4,614
-
4,614
1,181
-
1,850
-
1,850
2,058
-
395
-
395
-
-
-
8,400
8,400
8,520
1,350
-
-
1,350
-
378,923
1,025,342
8,400
1,412,665
1,191,036

========= ========== ========= ======= ====== Premises costs are allocated on floor area and Administration costs are allocated on estimated usage.

Page | 24

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

2022 2021
Charity Group Charity Group
6. STAFF COSTS £ £ £ £
Wages and salaries 564,703 859,300 475,186 783,722
Social Security costs 53,522 64,645 35,767 63,840
Pension contributions 21,646 21,646 19,157 19,157
639,871 945,591 530,110 866,719
======== ========= ========= ========
One employee earned over £60,000 per annum.

The average number of employees (including temporary and part time staff) was 75 (2021 total was 60). In addition the charity uses the services of 20+ volunteers. No valuation has been made for the assistance upon which the YMCA Essex relies to provide many of its services. A further 8 volunteers acted as trustees on the Board.

No Trustees have received any remuneration or have had expenses reimbursed.

Key management includes the Trustees, the Chief Executive and members of the senior management team. The compensation paid to key management for employee services is £270,738 (2021: £245,232).

2022 2021
7. NET INCOMING RESOURCES £ £
This is stated after charging
Depreciation (owned assets) 3,876 2,226
Auditors’ remuneration – audit 5,500 5,500
– other services 2,900 3,020
====== =======
8. GROUP FIXED ASSETS
Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
Eliminated on disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Furniture &
Computer
Motor
Total
Premises
Equipment
Equipment
Vehicles
£
£
£
£
£
825,000
44,490
29,432
1,200
900,122
-
-
-
13,194
13,194
-
-
-
(1,200)
(1,200)
825,000
44,490
29,432
13,194
912,116
-
41,658
29,432
500
71,590
-
827
-
3,049
3,876
-
-
-
(525)
(525)
-
42,485
29,432
3,024
74,941
825,000
2,005
-
10,170
837,175
========
==========
==========
======
=======
825,000
2,832
-
700
828,532
========
==========
==========
======
=======

The property was fair valued, as a one-off revaluation, on the basis of existing use value at 31 March 2016, by Elwell Taylor, Chartered Surveyors of 65 New London Road, Chelmsford, Essex CM2 0ND. On transition to FRS 102, the charity has taken the revalued amount as the deemed cost and therefore further revaluations are not required.

Page | 25

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Deemed Cost at 31 March 2022 is represented by:

Valuation in 2016 Original Cost

£ 718,388 193,728 912,116 =====

9. INVESTMENTS – Unlisted at Cost

The charity owns 100% of the issued share capital of YMCA Essex (Trading) Ltd., a company registered in England. This company operates the trading activities as described in Note 4.


10. DEBTORS
Trade debtors
Other debtors and prepayments
Loan to YMCA Essex (Trading) Ltd.		 2022 2021
Charity
Group
Charity
Group
£
£
£
£
24,383
43,021
25,261
32,206
21,226
21,226
35,567
35,567
41,250
-
45,000
-
86,859
64,247
105,828
67,773
========
=======
=======
======

The above loan relates to money lent to trading subsidiary during 2020/21. Interest is charged at a fixed rate of 3% and the balance is repayable over 2 years from inception.

2022 2021

2022 2021
11. (a) CREDITORS: Amounts falling due within
one year
Trade creditors
Other creditors and accruals
Pension deficit
Amount due to YMCA Essex (Trading) Ltd.		 £
£
£
£
6,495
9,137
10,097
12,487
70,333
102,447
177,845
211,022
16,884
16,884
16,933
16,933
18,977
-
21,381
-
112,689
128,468
226,256
240,442
=========
========
=========
=======
  1. (b) CREDITORS: Amounts falling due more than one year

Pension deficit

£ £ £ £
96,815 96,815 113,650 113,650
96,815 96,815 113,650 113,650
========= ======== ========= =======

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

12. DESIGNATED FUNDS

Fixed assets fund
New Projects
Informal Youth Work
Replacement Fund
Friends of Chelmsford
YMCA
Colchester Fundraising
Holiday Club Reserves		 Balances
Net
Balances
31 March 21
Income
Expenditure
Transfer
31 March 21
£
£
£
£
£
828,532
-
-
(3,876)
824,656
72,198
-
(28,178)
12,818
56,838

8,085
-
-
1,721
9,806
27,396
14,000
(23,972)
-
17,424
1,721
-
-
(1,721)
-
2,515
51
(1,918)
-
648
0
29,511
(1,108)
-
28,403
940,447
43,562
(55,176)
8,942
937,775
=======
======
=======
=====
========

The fixed assets fund represents the value of the general funds held within in the fixed assets (including revaluation reserve) used by the charity, as such these are not available to support the other activities. The replacement fund is monies set aside for ongoing maintenance and improvements of the building. The Board have also designated funds to allow for the continuation of youth work projects once existing funding sources run out and to allow time for securing future funding.

13. RESTRICTED FUNDS

The charity has received the following amounts, which may only be used for specific purposes.

Capacity Building
Plan
Childcare
services
Youth and other
services
Other funds
Grants
TOTAL ALL
FUNDS		 At 31 March
2021
Income
Transfers
Salaries
Materials/other
At 31 March
2022
£
£
£
£
£
31,279
(31,279)
-
-
18,108
-
-
-
-
18,108
65,268
56,147
(12,818)
(38,062)
(9,568)
60,967
-
-
-
-
-
-
-
-
-
-
-
-
114,655
56,147
(12,818)
(69,341)
(9,568)
79,075
======
======
======
======
======
======

Capacity Building Plan

The Capacity Building Plan funds related to a £60,947 grant and a £90,000 contribution from YMCA Essex in 2018-19 towards a project which primarily pays for improved staffing levels over three years. The project has been completed during the year.

Childcare Services

This funding includes donations that are specifically identified for Childcare.

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YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206 NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Youth and other Services – Youth Work

There are a number of Restricted Funds within the Youth Work area, funding derives from various sources, including Essex County Council, Chelmsford City Council, Christian Spiritual Worker, Housing Project Colchester, Outreach (Comic Relief), Park Project, Rotary Club and other restricted funds. These funds enable us to provide a wide range of services and programmes for young people. These funds are monitored in various ways and their restriction is that funds can only be used for the specific purpose for which they were granted.

14. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Fund balances at 31 March 2022 are represented by:

Fixed Assets
Net assets/(liabilities)		 UNRESTRICTED
RESTRICTED
TOTAL
General
Designated
FUNDS
£
£
£
£
-
837,175
-
837,175
194,051
100,600
79,075
373,726
194,051
937,775
79,075
1,210,901
==========
========
==========
=========

15. PENSION COMMITMENT

Accounting Policy:

YMCA Essex participated in a multi-employer defined benefit pension plan for employees of YMCAs in England, Scotland and Wales, which was closed to new members on 30 April 2007. The plan’s actuary has advised that it is not possible to separately identify the assets and liabilities relating to YMCA Essex.

Pension Note:

YMCA Essex participated in the 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 Essex and at the year end these were invested in De-risking Solutions.

The most recent completed three-year valuation was as at 1 May 2021. Placing a value of the plan’s liabilities requires a number of assumptions to be made about the future. Such assumptions include how long members might live after retiring and the return that will be generated by the plan’s assets. After taking advice from the plan actuary the Trustee of YMCAs in England has adopted what they consider to be ‘prudent’ funding assumptions, having regard to the Employer’s covenant and to financial market conditions. The Trustee’s assumptions are prudent in that they are deliberately cautious about the future. Using such assumptions increases the target funding reserves and reduces the risk that the combination of the accumulated assets and future contributions will prove to be inadequate. The result of the valuation showed that the actuarial value of the assets was £145.8m. This represented 86% 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 salary linkage for benefits all employed deferred members became deferred members as from 1 May 2011.

The valuation prepared as at 1 May 2021 showed that the YMCA Pension Plan had a deficit of £22.8 million. YMCA Essex has been advised that it will need to make monthly contributions of £1,364 from 1 May 2022. 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. The current recovery period is approximately 7 years.

The Company has capitalised the pension deficit liability and these accounts include a provision of £113,699 (2021: £130,583) which represents approximately 7 remaining years.

Page | 28

YMCA Essex (Limited by Guarantee) Charity Registration No. 1054070 Company No. 3171206 NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

In addition, YMCA Essex 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 Essex may be called upon to pay in the future.

16. ULTIMATE CONTROL

The group is ultimately controlled by the Board of Trustees.

17. RELATED PARTY TRANSACTIONS

During the year YMCA Essex paid rent totalling £109,223 (2021: £115,876) to Blackburn YMCA for the use of premises in Colchester, owned by Blackburn YMCA. The Chief Executive of YMCA Essex is a member of the board of trustees of Blackburn YMCA.

18. CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATION UNCERTAINTY

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

a) Critical judgements in applying the entity's accounting policies

There are no specific judgements, apart from those involving estimates as detailed below, that management has made in the process of applying the entity’s accounting policies that have a significant effect on the amounts recognised in the financial statements.

b) Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates can differ from the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on technological advancements, future investments, economic utilisation and the physical condition of the assets. See note 8 for the carrying amount of tangible assets and note 2 for the depreciation policy in respect of each class of asset.

Page | 29