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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 03582739 (England and Wales) REGISTERED CHARITY NUMBER: 1070578

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

NEWCASTLE UPON TYNE Y.M.C.A.

Robson Laidler Accountants Limited Statutory Auditor Fernwood House Fernwood Road Jesmond Newcastle upon Tyne Tyne and Wear NE2 1TJ

NEWCASTLE UPON TYNE Y.M.C.A.

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Page
Report of the Trustees 1 to 10
Report of the Independent Auditors 11 to 13
Statement of Financial Activities 14
Balance Sheet 15
Cash Flow Statement 16
Notes to the Cash Flow Statement 17
Notes to the Financial Statements 18 to 29

NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects are set in the Memorandum of Association dated 15 February 2007.

Newcastle upon Tyne Y.M.C.A has an organisational culture that is based on the heritage of the Christian values of the YMCA Movement and its services are open to all regardless of faith or culture.

Our Vision

Our Vision is of thriving and inclusive communities.

Our Mission

Our Mission is to provide the opportunities, resources and support so that the community and its young people can belong, contribute and thrive.

Our Values

The way we act at YMCA Newcastle is characterised by our values that flow from our Christian heritage. These are;

Public benefit

The trustees have taken account of the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)' when deciding how best apply the charities resources to respond to the impact of the coronavirus pandemic on the local community and its young people.

We have prioritised providing services to those with greatest need through: the provision of food and basic household goods; advice, guidance and support to those experiencing an immediate crisis; and activity packs to those who were isolated. Additionally we have created a digital youth support service to enable beneficiaries to access support, advice, guidance, personal development and a range of positive activities.

Page 1

NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

ACHIEVEMENT AND PERFORMANCE

Charitable activities

During this reporting period we have supported 2,832 members of the local community. The Covid emergency financial support we have received from individual donors, supporters, grant making trusts and foundations and from national and local Government has been phenomenal. So has the flexibility of those who funded our pre Covid services to allow us to change the way we work or defer our funding until we could deliver the service. All of this has enabled us to provide a planned and proactive response service to meet the quickly changing needs of the local community and its young people. It has also enabled us to meet our strategic goal of financial break even this financial year which will in turn enable us to achieve our long term financial sustainability goals.

Our staff team have also been phenomenal and have stepped up to continually adapt our methods of service delivery in order to comply with the changing restrictions in place but we have maintained our focus on delivering our Mission and provided opportunities, resources and support to the local community and young people.

We have used our community centre located in the middle of Walker park as the focus for our operations, closing it to public access and locating the majority of our front line staff there with our admin staff all home working for the whole 12 months. The size and layout of the community centre meant we could create a Covid secure workplace where we could all work safely in a socially distanced and compliant way. The staff team have been exemplary in their application to the task and following the protocols which means we are delighted to be able to report that we have maintained our Covid secure status for 15 months with no workplace transmission of coronavirus and no need for periods of self isolation.

Community Support

Between Apr and Sep Covid emergency funding from the National Lottery and Virgin Money Foundation enabled us to set up a Community Help Hub to support families and individuals through a crisis they may be facing. During this period we supported 86 families to access crisis support for:

Accommodation and housing issues Dealing with isolation Physical health and wellbeing issues Mental health and wellbeing issues Employment support and job hunting Volunteering Financial advice Emergency food provision

Youth Support

The flexibility and cooperation of grant funders and the staff team meant that within 2 weeks of the announcement of the national lockdown we had created a digital youth support service run by our youth workers working from their homes. We maintained this service well into the summer and as restrictions eased we moved to face to face support and activities with 1-1 or in small groups. During this reporting period;

826 young people received mental health and wellbeing support 667 young people received activity packs delivered to their home 50 took part in socially distanced outdoor events

37 received employability training such as mock interviews, CV writing, job applications 11 took part in sports coaching sessions

Family Support

The national lockdown meant that our parent and toddler support group moved to a digital service delivered over FaceBook with activity resource packs delivered to their homes weekly to support the digital activity.

204 babies and toddlers from young families in total received support 684 support and activity packs were delivered to their homes

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NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Older people's support

This National Lottery funded service aims to tackle social isolation in older people in the community. The national lockdown meant that the beneficiaries of this service were most at risk from coronavirus and the lockdown restrictions led to those living in care homes being contained within the home with no visitors and those living in their own home being isolated from support. We provided a themed activity pack delivered to their care home or residence every week for the whole year. Towards the end of the year we were able to bring the beneficiaries into our community centre to meet and discuss their experiences.

We delivered 3,825 support and activity packs to 191 older people living in 11 residential care homes

Social enterprises

Urban Mushrooms

Our social enterprise "Urban Mushrooms" has had a mixed year. Under the national lockdown restrictions the restaurants that we sell our fresh mushrooms to all closed and we stopped growing them. The sales of Grow at Home kits increased in quarter 1 and we were able to meet demand from our existing stocks. Consequently the team were placed on furlough leave. We bought the staff back in the autumn to manufacture the Christmas stock of Grow at Home kits. As with any organic process things sometimes go wrong and the mycelium (mushroom spawn) we buy in failed to germinate meaning we lost the whole of the 5,000 units of Christmas stock.

In response to the Government road map to lifting restrictions we took a lease on a new larger unit to scale up our fresh mushroom production to be ready for when restaurants are open again. We will be able to grow 200kg per week which will enable us to support and train more young people next financial year.

Walker Park cafe

At the start of the national lockdown we closed our cafe to seated customers and made it a takeaway only service. We launched a fundraising campaign to use our kitchen to manufacture frozen meals for members of the local community who for whatever reason were not able to feed themselves or their families. The response was again phenomenal and our thanks go to the individual donors, Walker Parish Church and the grant funders listed in this report for their generosity. Over the year we provided 3,917 individual meals.

Volunteers

31 trained volunteers gave 5,208 hours of their time to enable us to deliver our services. At the national minimum wage that equates to a contribution of over £40,000.

We must also thank Streetwise and Keychain who delivered the meals to residents' houses. The community response was a great success and showed the power of collaboration and partnership working.

Our Board of Trustees consist of 10 directors and 2 co opted members who have volunteered 537 hours of their time in the governance of the charity.

Page 3

NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

ACHIEVEMENT AND PERFORMANCE Financial sustainability - Trading subsidiaries Trading subsidiaries

2 years ago the charity invested in the acquisition of 2 trading subsidiaries to generate "profits for purpose". The purpose being to reinvest them back into the parent charity as unrestricted income to contribute to our core running costs. Both have difficult trading years as a consequence of the pandemic and have no surplus to contribute to the charities income in the next financial year.

As wholly owned subsidiaries these companies will report their annual accounts independently from the charity.

Investment assets

The charity owns 27 residential properties that are rented to private tenants and 2 commercial properties also tennated. We were able to support all of our residential tenants maintain their tenancy however two have accrued significant arrears. Our net rental incomes were as forecast in the budget. In Q4 our main commercial tenant gave notice and will leave at the end of Q1 of the next reporting period, the Trustees are considering the options for the building.

FINANCIAL REVIEW

Financial support

The charity earned 22.9% of its income from its own sources (rental income, interest & dividends from investments and interest from a legacy), 15.2% from charitable trading in our social enterprises and 61.9% from a wide range of sources including trusts and grant making bodies and local government funding.

YMCA Newcastle acknowledges with gratitude the support it receives from the following funding bodies and partners:-

Andy Fanshaw Memorial Trust BBC Children In Need Main Grant BBC Children In Need Small Grant Community Foundation Tyne & Wear and Northumberland Department of Culture Media and Sport Youth Covid 19 Support Fund Department for Education - Best Summer Ever Hays Travel Trust Joseph Strong Frazer Trust Karbon Homes The Leathersellers Charitable Trust National Emergencies Trust The National Lottery Community Fund The National Lottery Community Fund and HM Government Covid Relief Fund Newcastle Round Table Northumbria Police Suicide Prevention Team The People's Postcode Trust Proctor & Gamble Community Fund The Riddell Family Charitable Trust St. Nicholas Educational Trust Social Enterprise in Business Enterprise Development Programme Sir James Knott Charitable Trust The Souter Trust The Thomas Wall Trust Tony and Carolyn Brookes Virgin Money Foundation WA Handley Charitable Trust YMCA England & Wales Emergency Relief Fund YMCA England & Wales Douglas Wood Trust Fund

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NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW

Investment policy and objectives

The Memorandum and Articles of Association allows the Association to invest in such investments, securities or property as may be thought fit, the Trustees had planned to acquire additional assets with debt finance during this reporting period. They postponed this to the next reporting period so that our full focus was on supporting the beneficiaries.

The Charity's assets, both property and cash are being held to carry out its charitable objectives. The application of the Charity's funds continues to be in developing and sustaining work with the local community and young people living in deprived conditions, who may find themselves marginalised or in situations of need.

Reserves policy

The Charity currently holds cash reserves. At 31 March 2021 the reserves amounted to £203,396 which based on the 2022 budget equates to 4.5 months running costs.

Operating Results

The fund balances carried forward at 31 March 2021 show a total of £2,011,863 the majority is represented by freehold property owned by the Association. The charity also held £7,867 of restricted funds at the year end.

In the last annual report we stated our intention was to deliver a significant reduction to the previous years' operating deficits despite the challenges of the coronavirus pandemic. We achieved our objective and achieved an operating surplus amounting to £41,376 as shown in the Statement of Financial Activities. This equates to an increase of £327,340 (114%) from the last reporting period.

The surplus shown in the accounts, arises due to various non-cash movements, most notably, the movement in the pension deficit fund, which amounted to £33,965, together with certain fixed asset movements and depreciation charged on these. In addition we provided £139,841 as an exceptional item.

We could not have achieved this position without the incredible support from our funders and without the financial support schemes provided by the Government to businesses and charities.

Insurance

BSIS Corporate Insurance Brokers were appointed as our insurance brokers. In this reporting period we undertook a tender exercise and appointed Aston Lark as our insurance brokers for the next reporting period.

Indemnity insurance

The Charity holds indemnity insurance cover in respect of the Directors of the Charity.

Political contributions

The Charity made no political contributions during the year.

Creditor payment policy

It is the Association's policy, in respect of all suppliers, to agree the terms of payment when entering into a transaction, to ensure that suppliers are aware of those terms of payment, and that the Association abides by them.

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NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

FUTURE PLANS

In May 2020 the trustees undertook a PESTLE and SWOT analysis and reviewed the 5 year strategic and operation plans agreed in the last reporting period. There is no change to our;

Our Vision

Our Vision is of thriving and inclusive communities.

Our Mission

Our Mission is to provide the opportunities, resources and support so that the community and its young people can belong, contribute and thrive.

Our Values

The way we act at YMCA Newcastle is characterised by our values that flow from our Christian heritage.

Equity

We treat everyone as equals, however we work to reduce inequalities and allocate our resources depending on individual need and circumstances.

Respect

We respect individuals for who they are regardless of their circumstances.

Tolerance

Our culture is non-judgemental and tolerant of different lifestyles, value and beliefs.

Integrity

By acting in accordance with our organisational beliefs and values to do the right things, in the right way and at the right time.

Openness

Our culture is transparent so that all our stakeholders can see the work we do.

Unconditional

Our support to the community and young people is unconditional regardless of their actions, beliefs and attitudes.

Sustainability

We strive for long term sustainability by governing the organisation to ensure its long term ability to meet the future needs of the young people of Newcastle.

Our Strategic Goals

Our operational plans for the next 5 years will be written to enable us to achieve our strategic goals which are;

  1. Ensure the long term financial security and sustainability of the charity in an unpredictable economic climate.

  2. Ensure that our resources deliver the maximum economic and social value and achieve our charitable objectives.

  3. Ensure that our services meet accredited quality standards.

In the next reporting period we intend to;

  1. Consolidate our charitable service provision and continue to support the community and its young people to recover from the effects of the Coronavirus pandemic.

  2. Acquire additional residential investment properties.

  3. Secure new tenants in our commercial investment properties.

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NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

  1. Working in partnership with Northumbria University we are embarking on a 3 years research programme "designing where we live" to enable us to build suitable, affordable and sustainable social housing for our beneficiaries.

  2. Working in partnership with BIOHM Ltd we intend to create a new trading subsidiary and open a new BIOMILL manufacturing facility that will employ up to 50 beneficiaries in the next 3 years.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The charity's full name is Newcastle upon Tyne YMCA. It is a registered charity in the United Kingdom, Charity No: 1070578 and a company limited by guarantee, registered in England No: 3582739.

Board of Directors

During this reporting year 10 individuals held the position of Director and 2 individuals were co opted onto the Board. There were 7 males and 5 females all of whom identify as being white British ethnicity. The youngest is 29, 7 are aged between 30 and 50, 2 are over 60 and their average age is 52

During this reporting year the Board met 7 times. The subcommittees were suspended until Q4 and each met 2 times. The directors voluntarily gave approximately 537 hours of their time to govern the conduct of the charity's activities.

Recruitment and appointment of new trustees

Directors may from time to time appoint new directors of the charity, whether to fill a casual vacancy or by way of addition to the Board, provided that the prescribed maximum term is not then exceeded. Directors are appointed for three years and are eligible for re-election for a further three year term. 1 directors resigned during the year:-

Thomas Lillie

1 Director took a sabbatical during the year:Jennie Whittel

1 directors was appointed this year:Jonathan Burns

2 individuals were co opted onto the Board:Tracey Wood Liam Crowe

When recruiting Directors, the Board looks for individuals with skills and experience which are of value to the YMCA and which may not be represented by existing Directors. Directors are recruited by recommendation, by personal invitation, application from volunteer websites, agencies or from young people who have previously used the services of the YMCA. Anyone wishing to become a Director is required to undergo a check with the Disclosure and Barring Service and sign a declaration that they are not debarred from holding office, they also complete an online safeguarding course.

Before being appointed, Directors are required to meet with the Chair of the Board and the Chief Executive who outline the mission, structure, governance and financial management of the organisation and explain the responsibilities of trustees/directors. New directors are encouraged to visit each YMCA project site to observe the work done by the organisation and they may become members of the advisory sub-committees.

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NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure

The charity is managed by a Board of Directors and a sub-committee structure. The Chief Executive attends meetings of the Board of Directors and the sub-committees but has no voting rights.

A scheme of delegation is in place and day to day responsibility for the provision of services rests with the Chief Executive. The Chief Executive is responsible for ensuring that the charity delivers the services agreed by the Board of Directors and ensuring adequate support and supervision of the staff team.

Officers

At the Annual General Meeting on 23rd September 2020, Stephen Kerry was appointed as Chair and Neil Jackson was appointed as Treasurer, for the period to the next AGM.

Key management remuneration

None of the directors receive any remuneration for their services. Key management personnel received remuneration totalling £69,970 during the year. The pay of senior staff is kept under review by the Board of directors.

Related parties

In so far as it is complementary to the charity's objects, the charity is guided by the national YMCA guidance and local and national youth policy.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place.

The following risks were identified and appropriate controls put in place and monitored.

In this reporting period the Board reviewed the following policies:-

Health and Safety manual Safeguarding policy Sickness policy Risk management policy Equality and diversity policy Whistleblowing policy

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03582739 (England and Wales)

Registered Charity number

1070578

Page 8

NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Registered office

592-596 Welbeck Road Walker Newcastle upon Tyne Tyne and Wear NE6 3AB

Trustees

S N J Kerry - Chairman T D F Lillie (resigned 30.9.20) T Scott T A R S Nisbet J Burns (appointed 25.11.20) A English J Whittel A L Gibbons S Charalambous E Peacock N D Jackson - Treasurer

Company Secretary

N P Hurst

Auditors

Robson Laidler Accountants Limited Statutory Auditor Fernwood House Fernwood Road Jesmond Newcastle upon Tyne Tyne and Wear NE2 1TJ

Bankers

Unity Trust Bank Nine Brindleyplace Birmingham B1 2HB

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Newcastle Upon Tyne Y.M.C.A. for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

Page 9

NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Robson Laidler Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 7 December 2021 and signed on its behalf by:

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

Opinion

We have audited the financial statements of Newcastle Upon Tyne Y.M.C.A. (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the 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 (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 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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

Matters on which we are required to report by exception

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

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:

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.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

Our 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:

Based on our understanding of the charity, we concluded that although the charity is subject to certain laws and regulations and is overseen by the Charity Commission, there are no principal risks of non-compliance with laws and regulations central to the charity's operations.

Audit procedures performed as part of our audit include:

Discussions with trustees and key management regarding any known or suspected instances of non-compliance with laws and regulations and fraud;

Evaluation and testing of the operating effectiveness of the charity's controls which are designed to prevent and detect any such irregularities;

Reviewing minutes of Board meetings held during the year under review;

Identifying and testing journals based on risk criteria.

There are inherent limitations in the audit procedures outlined above and there is no guarantee that our procedures would always detect a material misstatement that exists. We also note 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 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.

Michael Moran BA FCA (Senior Statutory Auditor) for and on behalf of Robson Laidler Accountants Limited Statutory Auditor Fernwood House Fernwood Road Jesmond Newcastle upon Tyne Tyne and Wear NE2 1TJ

Date: 7 December 2021

Page 13

NEWCASTLE UPON TYNE Y.M.C.A.

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
313,135
Charitable activities
6
Sundry/room hire/drop in
52,834
Space 2 Cafe
-
Walker Park
44,829
Other trading activities
4
145,445
Investment income
5
178
Total
556,421
EXPENDITURE ON
Raising funds
Other trading activities
7
59,202
59,202
Charitable activities
8
Youth work
378,206
Urban Mushroom
-
Walker Park
Exceptional item 23
-
139,841
Total
577,249
NET INCOME/(EXPENDITURE)
(20,828)
RECONCILIATION OF FUNDS
Total funds brought forward
2,024,824
TOTAL FUNDS CARRIED FORWARD
2,003,996
Restricted
funds
£
128,326
-
-
-
-
-
128,326
-
-
59,473
4,362
142,128
-
205,963
(77,637)
85,504
**7,867 **		 2021

Total
funds
£
441,461
52,834
-
44,829
145,445
178
684,747
59,202
59,202
437,679
4,362
142,128
139,841
783,212
(98,465)
2,110,328
2,011,863		 2020
Total
funds
£
310,901
23,031
783
52,107
113,298
1,886
502,006
65,615
65,615
549,559
96,533
76,263
-
787,970
(285,964)
2,396,292
2,110,328

The notes form part of these financial statements

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NEWCASTLE UPON TYNE Y.M.C.A. (REGISTERED NUMBER: 03582739)

BALANCE SHEET 31 MARCH 2021

2021 2020
Unrestricted Restricted Restricted
Total		 Total
funds funds funds funds
Notes Notes
£		 £ £ £
FIXED ASSETS
Tangible assets 13 362,924 - 362,924 366,834
Investments
Investments 14 20,098 - 20,098 49,622
Investment property 15 1,735,000 - 1,735,000 1,735,000
2,118,022 - 2,118,022 2,151,456
CURRENT ASSETS
Debtors 16 147,267 4,975 152,242 104,837
Cash at bank and in hand 72,630 130,766 203,396 229,800
219,897 135,741 355,638 334,637
CREDITORS
Amounts falling due within one year 17 (71,488) (127,875) (199,363) (79,366)
NET CURRENT ASSETS 148,409 7,866 156,275 255,271
TOTAL ASSETS LESS CURRENT
LIABILITIES 2,266,431 7,866 2,274,297 2,406,727
PENSION LIABILITY 21 (262,434) - (262,434) (296,399)
NET ASSETS **2,003,997 ** 7,866 2,011,863 2,110,328
FUNDS 20
Unrestricted funds 2,003,996 2,024,824
Restricted funds **7,867 ** 85,504
TOTAL FUNDS 2,011,863 2,110,328

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 7 December 2021 and were signed on its behalf by:

The notes form part of these financial statements

Page 15

NEWCASTLE UPON TYNE Y.M.C.A.

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of investment property
Interest received
Net cash used in investing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period		 2021
£
(3,210)
(3,210)
(23,372)
-
178
(23,194)
(26,404)
229,800
203,396		 2020
£
(328,775)
(328,775)
(18,201)
(1,560,000)
1,886
(1,576,315)
(1,905,090)
2,134,890
229,800

The notes form part of these financial statements

Page 16

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Loss on disposal of fixed assets
Interest received
Increase in debtors
Increase in creditors
Difference between pension charge and cash contributions
Exceptional item
Net cash used in operations		 2021
£
(98,465)
20,364
6,918
(178)
(157,723)
119,998
(33,965)
139,841
**(3,210) **		 2020
£
(285,964)
19,266
-
(1,886)
(60,223)
31,562
(31,530)
-
(328,775)
  1. ANALYSIS OF CHANGES IN NET FUNDS
At 1.4.20 Cash flow At 31.3.21
£ £ £
Net cash
Cash at bank and in hand 229,800 (26,404) 203,396
229,800 (26,404) 203,396
Total 229,800 (26,404) 203,396

The notes form part of these financial statements

Page 17

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. STATEMENT OF COMPLIANCE

Newcastle Upon Tyne Y.M.C.A. is a company limited by guarantee (company number: 03582739) and also a registered charity (charity number: 1070578). The registered office is 592-596 Welbeck Road, Walker, Newcastle Upon Tyne, Tyne and Wear, NE6 3AB.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The financial statements have been prepared on a going concern basis on the ground that current and future sources of funding or support will be more than adequate for the charity's needs. The Trustees have considered a period of 12 months from the balance sheet date and consider no further disclosures relating to the charity's ability to continue as a going concern need to be made.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial accounts are prepared in Sterling (£).

Significant estimates and judgements

In applying the following accounting policies, the trustees consider that the judgement that has the most significant effect on the amounts recognised in the financial statements, is the interest rate used to discount the future pension deficit reduction payments. This has been set at 3.6% in line with the yield on high quality corporate bonds.

The charity has applied the following accounting policies:

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Costs are allocated between charitable activities and governance costs according to the nature of the cost.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Page 18

continued...

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

2. ACCOUNTING POLICIES - continued

Tangible fixed assets

Freehold property - 2% straight line basis Leasehold improvements - 10% on reducing balance Fixtures, fittings and equipment - 25% on reducing balance Motor vehicles - 25% on reducing balance

The charity opts to capitalise all fixed assets costing over £2,000. Purchases below this level are expensed to the Statement of Financial Activities in the year.

Investment property

Investment property is shown at current market value. The aggregate surplus arising from changes in market value is recognised in the statement of financial activities.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

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

Employee benefits

Newcastle upon Tyne Y.M.C.A. participates in a multi-employer defined benefit pension plan for employees of the Y.M.C.A. in England, Scotland and Wales, which was closed to new member's and accruals on 30 April 2007.

The plan's actuary has advised that it is not possible to separately identify the assets and liabilities relating to the Newcastle upon Tyne Y.M.C.A., therefore the scheme is accounted for as a defined benefit contribution scheme.

As described in note 21 to the financial statements, Newcastle upon Tyne Y.M.C.A. does however, have a contractual obligation to make pension deficit payments of £37,165 pa over the period to 30 April 2029, accordingly this is shown as a liability on the Balance Sheet in these accounts.

The liability is measured at its present value and the unwinding of the discount is recognised as a finance cost in the Statement of Financial Activities.

In addition, Newcastle upon Tyne Y.M.C.A. is required to contribute £5,745 pa to the operating expenses of the Pension Plan and these costs are charged to the Statement of Financial Activities as made.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Page 19

continued...

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

2. ACCOUNTING POLICIES - continued

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and cash equivalents

Cash in bank and cash equivalents comprises cash in hand and current balances with banks and other institutions, which are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value. This definition is also used for the cash flow statement.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

3. DONATIONS AND LEGACIES

3.
DONATIONS AND LEGACIES
Donations and grants
Legacies
4.
OTHER TRADING ACTIVITIES
Rent received
5.
INVESTMENT INCOME
Deposit account interest
6.
INCOME FROM CHARITABLE ACTIVITIES
Sundry/room
hire/drop
in
£
Sundry income
**52,834 **		 Walker
Park
£
44,829		 2021
£
438,083
3,378
441,461
2021
£
145,445
2021
£
178
2021
Total
activities
£
97,663		 2020
£
306,841
4,060
310,901
2020
£
113,298
2020
£
1,886
2020
Total
activities
£
75,921

Page 20

continued...

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

7. OTHER TRADING ACTIVITIES

OTHER TRADING ACTIVITIES
Purchases
Support costs		 2021
£
29,418
29,784
**59,202 **		 2020
£
32,741
32,874
65,615

8. CHARITABLE ACTIVITIES COSTS

Youth work
Urban Mushroom
Walker Park
9.
SUPPORT COSTS
Other trading activities
Youth work
Other trading activities
Youth work		 Insurance
£
-
11,588
11,588		 Direct
Costs
£
219,943
4,362
142,128
366,433
Premises
£
-
97,810
97,810
Staff
costs
£
29,784
55,312
85,096		 Support
costs (see
note 9)
Totals
£
£
217,736
437,679
-
4,362
-
142,128
217,736
584,169
Professional
Phone
fees
£
£
-
-
3,734
(264)
3,734
(264)
Other
Totals
£
£
-
29,784
49,556
217,736
49,556
247,520

Page 21

continued...

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

10. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2021 2020
£ £
Depreciation - owned assets 20,364 19,266
Hire of plant and machinery 18,564 16,526
Deficit on disposal of fixed assets 6,918 -
Auditors remuneration 4,982 4,235
Amounts written off investments 29,524 -
-

11. TRUSTEES' REMUNERATION AND BENEFITS

Directors and officers indemnity insurance was purchased to the value of £250 (2020: £734).

Trustees' expenses

There were no trustee expenses in the current or prior year.

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2021
£
384,604
24,100
13,778
**422,482 **		 2020
£
431,541
29,645
16,190
477,376

The average monthly number of employees during the year was as follows:

Chief executive
Administration
Project staff		 2021
1
5
17
23		 2020
1
6
19
26

No employees received emoluments in excess of £60,000.

In addition pension payments of £52,187 (2020: £48,787) were paid to YMCA Pension Scheme, £18,222 of which is reflected in the Statement of Financial Activities and £33,965 of which reduces the brought forward pension liability.

Page 22

continued...

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

13. TANGIBLE FIXED ASSETS

COST
At 1 April 2020
Additions
Disposals
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for year
Eliminated on disposal
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Freehold
Leasehold
property improvements
£
£
386,921
11,796
8,502
-
-
(9,753)
395,423
2,043
58,347
6,278
7,908
552
-
(4,788)
66,255
2,042
329,168
1
328,574
5,518		 Fixtures,
fittings
and
equipment
£
52,171
14,870
(25,423)
41,618
35,143
7,975
(23,758)
19,360
22,258
17,028		 Motor
vehicles
£
34,881
-
(2,200)
32,681
19,167
3,929
(1,912)
21,184
11,497
15,714		 Totals
£
485,769
23,372
(37,376)
471,765
118,935
20,364
(30,458)
108,841
362,924
366,834

The freehold properties were re-valued on 31 March 2013 by Sanderson Wetherall Chartered Surveyors and Property Consultants at £275,000. All of the valuations were based on the current open market freehold value of the premises in their existing condition. Subsequent improvements amounting to £120,423 have been valued at cost.

14. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
MARKET VALUE
At 1 April 2020 and 31 March 2021 49,622
Provided in the year (29,524)
NET BOOK VALUE
At 31 March 2021 20,098
At 31 March 2020 49,622

There were no investment assets outside the UK.

Page 23

continued...

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

15. INVESTMENT PROPERTY

FAIR VALUE
At 1 April 2020
and 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 £
1,735,000
1,735,000
1,735,000

The investment properties were revalued on 31 March 2018 by Sanderson Wetherall Chartered Surveyor and Property Consultants. The valuation was based on the current market open market freehold value of the premises in their existing condition. Properties acquired since this date are shown at cost, which the trustees believe represents fair value.

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
5,120
22,946
494
123,682
152,242
2021
£
21,396
6,571
171,396
199,363		 2020
£
2,744
90,977
-
11,116
104,837
2020
£
20,051
392
58,923
79,366

Accruals and deferred income includes grant income deferred at the year end amounting to £155,170 (2020: £41,500)

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year 2021
£
-		 2020
£
2,890

Page 24

continued...

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

19. SECURED DEBTS

Unity Trust Bank plc holds a fixed charge over the freehold property owned by the charity, at Welbeck Road and Cowen Street, Newcastle upon Tyne.

20. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Revaluation reserve
Restricted funds
Walker Fund
Youth Services
Youth Work
Urban Mushrooms
Isolation
TOTAL FUNDS		 At 1.4.20
£
1,983,464
41,360
2,024,824
45,586
845
16,051
4,362
18,660
85,504
2,110,328		 Net
movement

in funds
£
(20,828)
-
(20,828)
(37,719)
(845)
(16,051)
(4,362)
(18,660)
(77,637)
**(98,465) **
At

31.3.21
£
1,962,636
41,360
2,003,996
7,867
-
-
-
-
7,867
2,011,863

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Walker Fund
Youth Services
Youth Work
Urban Mushrooms
Isolation
TOTAL FUNDS		 Incoming
resources
£
556,421
104,408
-
-
-
23,918
128,326
684,747		 Resources
Movement
expended
in funds
£
£
(577,249)
(20,828)
(142,127)
(37,719)
(845)
(845)
(16,051)
(16,051)
(4,362)
(4,362)
(42,578)
(18,660)
(205,963)
(77,637)
(783,212)
**(98,465) **

Page 25

continued...

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

20. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement
At 1.4.19
in funds
£
£
Unrestricted funds
General fund
1,538,177
(314,713)
Revaluation reserve
41,360
-
1,579,537
(314,713)
Restricted funds
Walker Fund
31,101
14,485
Youth Services
9,349
(8,504)
Youth Work
14,617
1,434
Urban Mushrooms
1,688
2,674
Building Fund
760,000
-
Isolation
-
18,660
816,755
28,749
TOTAL FUNDS
2,396,292
(285,964)
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
203,774
Restricted funds
Walker Fund
90,748
Youth Services
15,407
Youth Work
60,464
Urban Mushrooms
81,613
Isolation
50,000
298,232
TOTAL FUNDS
502,006
Transfers
between
funds
£
760,000
-
760,000
-
-
-
-
(760,000)
-
(760,000)
-

Resources
expended
£
(518,487)
(76,263)
(23,911)
(59,030)
(78,939)
(31,340)
(269,483)
(787,970)
At
31.3.20
£
1,983,464
41,360
2,024,824
45,586
845
16,051
4,362
-
18,660
85,504
2,110,328

Movement

in funds
£
(314,713)
14,485
(8,504)
1,434
2,674
18,660
28,749
(285,964)

Page 26

continued...

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

20. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Revaluation reserve
Restricted funds
Walker Fund
Youth Services
Youth Work
Urban Mushrooms
Building Fund
TOTAL FUNDS		 At 1.4.19
£
1,538,177
41,360
1,579,537
31,101
9,349
14,617
1,688
760,000
816,755
2,396,292		 Net
movement

in funds
£
(335,541)
-
(335,541)
(23,234)
(9,349)
(14,617)
(1,688)
-
(48,888)
(384,429)		 Transfers

between

funds
£
760,000
-
760,000
-
-
-
-
(760,000)
(760,000)
-
At
31.3.21
£
1,962,636
41,360
2,003,996
7,867
-
-
-
-
7,867
2,011,863

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming
Resources		 Movement
resources
expended		 in funds
£ £ £
Unrestricted funds
General fund 760,195 (1,041,736) (335,541)
Restricted funds
Walker Fund 195,156 (218,390) (23,234)
Youth Services 15,407 (24,756) (9,349)
Youth Work 60,464 (75,081) (14,617)
Urban Mushrooms 81,613 (83,301) (1,688)
Isolation 73,918 (73,918) -
426,558 (475,446) (48,888)
TOTAL FUNDS 1,186,753 (1,517,182) (384,429)

General funds

General funds are funds that can be used in accordance with the charitable objectives at the discretion of the trustees. Within general funds are specific funds that have been designated by the trustees for particular purposes. These designated funds are as follows: -

Revaluation Reserve

The revaluation reserve represents the uplift in value of the properties owned by the charity on revaluation.

Restricted funds

Restricted funds are funds that can only be used for particular restricted purposes within the objects of the charity. The restricted funds held by the charity are as follows: -

Page 27

continued...

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

20. MOVEMENT IN FUNDS - continued

Walker Fund

This represents funds raised for youth work to be undertaken within Walker.

Youth Services

This represents funds received for other specific youth projects.

Youth Work

This represents funds received from Virgin Money, Sir James Knott Trust and John Lewis, for specific youth work projects.

Urban Mushrooms

This represents funds received which are reinvested into specific youth projects based around farming mushrooms in unused urban spaces in the city centre.

Building Fund

A new fund was created during the year as a result of some historic research on donations made to the predecessor charity over 100 years ago, restricted to investment in property. The new fund has been transferred from the capital fund and any remaining balance on the capital fund has been transferred to general funds. These funds were utilised in the year on purchase of Parsons House.

Isolation Fund

This fund comprises monies from the Lottery which are to be used in a project tackling isolation.

21. EMPLOYEE BENEFIT OBLIGATIONS

Newcastle Upon Tyne Y.M.C.A. participated in a contributory pension plan providing defined benefits based on final pensionable pay for employees of Y.M.C.As in England, Scotland and Wales. The assets of the Y.M.C.A. Pension Plan are held separately from those of Newcastle Upon Tyne Y.M.C.A. and at the year end these were invested in the Mercer Dynamic De-risking Solution, 40% matching portfolio and 60% 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. This 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 Y.M.C.A. Pension Plan had a deficit of £36 million. Newcastle Upon Tyne Y.M.C.A. has been advised that it will need to make monthly contributions of £4,573 from 1 May 2021. 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 8 years commencing 1st May 2021.

In addition, Newcastle Upon Tyne Y.M.C.A. may have over time liabilities in the event of the non-payment by other participating Y.M.C.As of their share of the Y.M.C.A. Pension Plan's deficit. It is not possible currently to quantify the potential amount that Newcastle Upon Tyne Y.M.C.A. may be called upon to pay in the future.

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continued...

NEWCASTLE UPON TYNE Y.M.C.A.

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021

22. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2021.

23. POST BALANCE SHEET EVENTS / EXCEPTIONAL ITEMS

On 1 December 2021 a liquidator was appointed for Holly Hill Private Day Care Nursery Limited, one of the charity’s investments. A provision of £139,841 has been made against the cost of this investment and any amounts due to the charity at 31 March 2021.

Page 29