Company registration number.. 03684583 Charity registration number.. 1073674 YMCA Cornwall (A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2023 YMCA Cornwall Contents Trustees Report 1109 Referen￿ and Administmb've Delails Slalement of Trustees, Responsibilities 10 Independent Auditors, Report 111014 Slalemenl of FinanrAal Activities 151016 Balance Sheet 171018 Statement of Cash Flows 191020 Notès to the Financial Statements 21to43 YMCA Cornwall Trustees Report The Iruslees, who are directors for the purposes of company law. present the annual report together with the financial slalemenls of the charitable company for the year ended 31 March 2023. Objectives and activities YMCA Cornwall Misslon Statement "To provide or assist in the provision in the interests of social welfare of fa¢ilits'es for recreation and other leisure time occupation for all with the object of improving their conditions of life. YMCA Cornwall is part of an International Christian Movement which recognises the equal value of all people. It seeks lo serve the community in Cornwall with an emphasis on the young, by providing them with a stimulating and supportive environment, enabling them lo enrich their lives and the lives of others." Objects and aims The objects of the charity as deflned in the Memorandum and Articles of As80¢ialion Irevised De￿mber 20221 are.. 1.To advance, enable and empower people of 811 ages and In particular young people, to flourish throLFgh experiencing and responding lo the care and SUPFX)rt. 2.To provide residential accommodation, including Social Housing, for people of all ages and in particular young people, who are in need, hardship, or distress by reason of their social, physical, emotional, or economic circumstances. 3.To advance and enabling people of all ages and in particular young people, lo be empowered lo thrive through experiencing high quality support. 4.To provide or assist in the provision in the interests of social welfare of facilities for recreation and other leisure lime occupation for all with the object of improving their conditions of life. 5.To promde or as51sI in the provision of education for people of all ages and in particular yotjng people, with the object of developing their physical, mental. or emotional health. 6.To ielieve or asslst in the relief of people of all ages and in particular young people, who are in conditions of need, hardship, or distress by reason of their social, physical, emotional. or economic circumstances. Page 1 YMCA Cornwall Trustees Report The YMCA is a Christian Federation and welcomes into ils fellowship persons of all religious faFths and ol none. In accordance wth its Chr6slian values the YMCA stands for. A worldwide fellowship based on the equal valve of all persons., Respect and freedom for all, IDlerance and understanding between people of different opinions., . Active concern for the needs of the community., United effort by Chrtslians of different Iradilions. As the expression of ils Christian purposes the YMCA aims lo.. Provide a welcome lo ils members for themselves in a meeting place which is theirs to share. where friendships can be made and counsel sought", Develop activities which slimulale and challenge members in an environment that enables them lo take responsibility to find a sense of achievement., Involve all member8 In the care and work of olher8', Create opportunities for exchanging views so that members can improve their understsnding of the world, of themselves and of one another. Objectlves, strategles and activlties YMCA Cornwall has developed two main areas of service in order lo achieve its aims,. 11 Youth Housing 21 Youth and Community Public benefit The main areas of charitable activity undertaken lo further public benefit are the provision as follows.. Youth Housing Resettlement.. Youlh and Community work- involving youth clubs and adult actwities, including providing affordable room hire facilities for other community groups. The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard lo the public benefit guidance published by the Charity Commission for England and Wales. involves Social Housing for 18-25 year-olds. Housing Advice, Counselling and Structurei governance and management Nature of governing document The charity is registered as a charitable company limited by guarantee and was sel up by a Memorandum of Association dated 4 December 1998 (revised December 20221 and is registered charity number 1073674. In the event of the company being wound up members are required lo contribute an amount not exceeding £1 each. Page 2 YMCA Cornwall Trustees Report Recruitment and appointment of trustses The Directors of the company are also Charity Trustees for the purposes of charity law and under the compansls Articles are known as members of the Management Committee. Under Ihe Requirements of the Memorandum and Articles of Association the members of the Management Committee are elected lo serve for a period of three years after which they musl be re-elected 21 the next Annual General Meeting. Due to the nature of focus, social housing lor young people and youth activities make Ltp much of the chaiills work and, inevitably, the organisalion's focus is on young people. The Management Committee seeks to ensure that the needs of these groups are appropriately reflected through the diversity of the Ir(Jslee body. Induction and training of truste8S New trustees are invited and encouraged lo attend 8 short training session lof no more than an hour) to familiarise themselves with the charity and the eonlexl wlhin which il operates. The Chair of the Management Committee or the Chief Executive of the charity can cover and lead these.. The obligations of Management Committee members., The main d￿UmentS which set out the operational framework for the charity including the Memorandum and Articles., Resourcing and the current finandal position as sel out in Ihe18test published accounts- FutLJre plans and objectives. The YMCA Cornwall Trustee Induction pack, last reviewed in 2022, draws information from the various Charity Commission publications signp051ed through the Commission's guide The Essential Trustee" as a follow up to these sessions. Thi5 is distributed to all new Iruslees 21ong with the Memorandum and Articles and the latest financial statements. Organisational structure YMCA Cornw811 hss a Management Committee consisting of a body of mett)bers who meet quarterly and are responsible for the strategic direction and policy of the charity. The ThAembers are from a variety of professional backgrounds relevant to the work of the Ch2rity. The Secretary also sils on the Committee but has no voting r¢ghts. A scheme of delegation is in place and day lo day responsibility for the provlsion of the services rest with the Chief Executive along with the senior leadership team eonsi81ing of Finance Manager, the Housing Manager, and the Corporate SeNices Manager. The Chief Execulive is responsible for ensuring that the Charity delivers the services speafied and that key performance indicators are mel. After the post year-end resignation of the Chief Executive Officer, these duties are now carried ovl by the senior leadership team. The senior team have responsibility for the day to-day operational management ol their departments within the organisalion, individual supeNision of the staff le8m and also ensuring that the team continues lo develop their skills and working practices in line wlh good practi￿. Relationships wlth related partles In so far as il is complimentary lo the Charity's objects, the Charity is guided by both local and national policy. Page 3 YMCA Cornwall Trustees Report Reference and Administrative Details Chief Executive Offleer David Hall-Davies (Resigned Q611012023) TrLEStees Derek Tilby (Chairl Penny Marns Hudson Smith Chris Seamarks ITreasurerl lan Hurst (Resigned 16101120231 Nicola Hemsley Chiislopher Weavill (Resigned 05101120231 David Leah {Resigned 0110W2023) David Hall-Davies IReslgned 06110120231 Secretary Charity Registratlon Number 1073674 Company Registration Number 03684583 Principal Officè The Orchard Alverton Road Penzance Cornwall TR18 4TE PKF Francis Clark statutory Auditor Lowin House Tregolls Road Truro Cornwall TR12NA Auditor Solicitors: C(K)des Soliulors 49-50 Morrab Road Penzan Cornwall TR184EX Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill Wesl Malling Kent E19 4JQ Page 4 YMCA Cornwall Trustees Report Achlevements and perfomlance YOUTH HOUSING Cherrytree House, Appletree House, St Levan, Morri5 House (Supported Houslng Projects) Applelree and Che¥rytree Houses are purpose-built, self-conlained accommodation offering SUPFX)rted housing for 22 young people aged 18.25 years. Appletree House was opened in 1994 in partnership with YMCA England and Cherrylree House in 2004 in partnership with Penwilh Housing Association (now Livewesll. In March 2023 we managed lo purchase Cherrylree House from Livewesl which has secured il's use lor the future and will allow us lo develop the property for the benefit of the young people in our ¢are. Our Sl Levan flats are four short term rooms with shared kitchen and bathri)om that are used lo house young people at risk ot being homeless while a suitable place to stsy 18 found. Morris House was created by converting an old sports hall on our main site into self-conl2ined Ilals, supporting 20 fials ￿th tenants across three floors on the ground and upper levels. The project was completed in July 2021 with work Lieing done by our skilled in-house maintenance team. Support Workers continue lo work with these young people to prepare them for independent living within the community. Young people can remain at these projects for up lo years. Move-on Flats Starting in October 2006, Penwith Housing Association, now part of L TrieWe81, seamlessly inlegraled four fials from their general needs stock into the management agreement with YMCA Cornwall. These flats serve a crucial role as move-on accommodations for young indivKluals transitioning out of the supported housing projects following their ￿0-year stay. As part of a strategic plan lo within Livewesl one of the flats was retuined to Livewest. lacililaling the demolition 2nd subsequent reconstruction, In a commitment to maintaining support services. an additional Ilal was generously provided lo YMCA Cornwall as a replacement. This collaborative effort ensLJres a continuum of care for young people as they progress from supported housing lo more independent living arrangements, fostering a smooth and sustainable Ir8llSition. Atl the aforementioned projects are financially Sustained through the income generated from the rents charged. Thtoughoul this financial year these initiatives have played a crucial role in supporting and offering accommodation lo a lolal 0191 young individuals, including those who remained residents al the conclusion of the financial year. The financial sustainability of these projects underscores their commitment to providing vital services and ensuring a stable living environment for young people in need. Housing AdvicelReseltlement The YMCA Cornwall Housing Advice and Resettlement Sewice has grown again during the past financAal year. The post has been incorporated inlo the general services available lo young people and predominantly Se￿eS the 16-25 year-old client group. From April 2022 until March 2023 advice and assistance has been given lo 131 young people. Page 5 YMCA Cornwall Trustees Report Room Hire YMCA Cornwall is ded￿ated lo offering excellent, affordable room hire facilities for various community group5 and local organizalions. Additionally, we provide office rental spaces for respected partners such as the Liberal Democrats and Citizens Advice. Our commitment lo providing accessible and high.quality facilities supports the diverse needs of our community, fostering collaboration and engagement Financial Revlew During the year the Charity continued to develop ils services. This year il has generated an overall deficit for the year ending 31 March 2023, which has created a nel decrease in funds of £105,691 12022.. £336,769 surplus). A surplus of £17,193 related lo r6Stricled funds has been generated and will be carried forward for ongoing projects. Unreslricled funds have created a deficit of £122,88412022'. £317,790 surplus) during the year. As at 31 March 2023 unrestricted general funds stood al £429,170 12022.- £552,054) including a designated Un￿strICted fund of £54,472 12022.. £54,472). Reslricled funds lolalled £257.461 {2022.' £240,268) at 31 March 2023, During the year £25,580 was spent on fundraising in respect of purchasing Cafe supplies. Income raised from the cafe lotalled £33.093 resulting in a £7,513 profil for the year. Reserves Pollcy The Management Committee has examined the ¢haritWs requirements for reserves in light of the main risks lo the organisalion. 11 has established a policy whereby the unrestricted funds not commilled or invested in tangible fixed assets held by the charity should lje between three and six months of the core expenditure. The reserves are needed lo meet the working capital ￿qUIrementS for the charity and the Management Committee are confident that al this level they would be able to conts'nue the current activities of the charity in the event ol a significant drop in funding. Budgeted core expenditure for 2024125 is £467.406 and therefore the laigel is £116,851 10 £233,703 in free unreslricled reserves. Curienl, free unrestricted reserves (excluding tangible fixed assets and long lemi loans over 1 yearl are £12,040 and therefore not within the target range. During the year funds were used lo purchase Cherrytree House and we believe the increased income generated over the coming financial years will bring the free rEserves back in lo the agreed largel range. Page 6 YMCA Cornwall Trustees Report Investment Pollcles and Objectives Under the Memorandum and Articles of Asgo¢ialion the Charity ha8 the power to invest in any way the Trvslees wish. The Trustees, having regard lo the liability requirements of operating the organisation and lo the reserves policy, have operated a policy of keeping available funds in an inleresl-bearing deposit account. Risk Management The Management Committee h8s conducted a review of the major risks to which the charity is exposed. A risk ￿gIster is in place 8nd is regularly reviewed by the Board. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Significant external risks lo funding have led lo the development of a strategic plan, which will allow for the diversifi￿tion of fvnding and activities. Internal control risks are minimised by the implementalion of procedures for aulhorisalion of all transactions and projects. Procedures are in place lo ensure compliance wllh health and safety of staff, volunteers, clients and visiloTS to the ￿ntre. The organisation obtained the Investors in People award in June 2014 and a Silver standard in 2017, and has been successful in maintaining ils Local ALtlhority health and safely recognition standards ICHASI as well as maintaining ils Gold standard in the He211hy Workplace award. Going Concarn YMCA Cornwall like many organis21ions has been affected by the current high inflation and cost of living crisis, however we reviewed staff salaries before the current crisis and compared ourselves lo others in the market and decided lo raise all staff pay by 10QA for the financial year ending March 2023, a further review is undetway lo look at the year ahead. We have also been protected from the current energy price rise due being locked into eleclrialy deals lill summer 2024 and gas until January 2026. we have secured our eleclricity piices from summer 2024 for a further 30 months and although they are ￿l¢e our current rates they are not the 3300/0 we were originally seeing al the start of the UKS energy crisis. The charity was fortunate enough lo sell a property asset in February 2022, which has given us the capital lo reinvest in the current site and purchase Cherrylree House, along with other improvements around the site. This has had a negative effect on our cash flow in the short term,. however. after conducting a comprehensive analysis of our financial projections, we project a subslanlial enhancement in our financial standing toward the end of the financial year ending 31st March 2024. After condLtcling thorough enqLFiries, the Iruslees hold a reasonable expectation that the charity possesses sufficient resources to sustsin operational viability for the foreseeable future. Consequently, they have chosen lo maintain the going concern basis in the prepar81ion of the financial ststemenls. Additional information pertaining lo the adoption of the going concern basis is available in the Accounting Policies. Page 7 YMCA Cornwall Trustees Report Plans for future periods Aims and key objectives for future periods YMCA Cornwall continues to provide a high quality seNice within all of its projects with a dedi￿ted staff team of 29 and a tLtmover of £972,359. The range and quality of services has developed considerably and YMCA Cornwall is seen as a market leader in Housing and Reselllemenl. The YMCA Cornwall h8s also joined a group of YMCA'S headed by One YMCA lo run youth servies for the RAF Benevolent Fund, these services provide youth acltvily clubs on RAF bases across the country. This expansion and development has been achieved through a planned and coordinated approach. However, the work of YMCA Cornwall is far from complete. There are still large numbers of people who are soaally excluded and the organisalion's future focus musl be on housing which is going to be thè biggest issue ol the next len years. YMCA Cornwall now has a strong track record of successful project management on a multitude of different projects. In 2019, YMCA Cornwall reviewed and rewrote its Strategic Business Plan with an emphasis on developing measurable targets in order to influence slratagy and continue the Llevelopmenl of the Organisalion into a dynamic and successful Charity serving the needs of the young people of Cornwall. The plan wll be reviewed in late 2024 and will provide a foundation that will benefit the Association, its members and the youth of Cornwall, for many years lo come. It will also form the basis by which we can measure our impact on the public we seek lo se￿e and prove our public benefit lo which the Trustees have due regard when deciding on the adivilies that the Charity ndertakes. The Iruslees Confirm that they have referred lo the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Association's objectives and activities and in planning future activities and projects. The charity's main activities are listed above. Overall Strategy YMCA Cornwall seeks to be a county-wide significant organi58tion that is valued for ils responsiveness lo local need. We shall endeavour lo continue lo increase the quality and quantity of our programmes and activity by.. Researching and developing new programmes and areas of income generation., Offering attractive programme and activity opportunities. Investing in staff, premises and resources-, Building a secure financial foundation for future growth and development. We wll.. Promote and enhance our profile and Influen￿ as a county-wide organisation., Encourage responsiveness locally lo meet the needs of individuals and communities., Build relationships with partner agencies and other stakeholders., Proactively implement new business, programme and activity ideas based on need.. Manage risk effectively and respond to changing environments. Page 8 YMCA Cornwall Trustees Report Dlsclosure of information to audltor Each Iruslee has taken slops that they ought lo have taken as a Irusl8e in order lo make Ihem8elves aware of any relevant audlt information and lo establish that the charity's auditor is aware of that Information, The Iruslees conflrm that there is no relevant informallon that they know of and of whlGh they know the auditor is unaware. Small companles provlslon statement This report has been prepared in accordan￿ wlth the small companies regime under the Companles Act 2006. The annual report was approved by the trustees of the oharity on behalf by., and signed on ils Derek Tilby (Ciiairj Tru8lee Chris Seamara(s (Treasurer) Trustee Page 9 YMCA Cornwall Statement of Trustees, Responsibilities Thè trustees (who are also the dlrectors of YMCA Cornwall for the purposes of company lawl are responslble for preparing the trustees, report and the financial slaloments in accordance with appliaable law and United lfjngdom AccounlSng Standards (Unilod Kingdom Generally Accepted Acoounling Praclicel, including FRS 102 "The Flnancial Reporting Standard applicable in th& UK and Republic of Ireland" Company law requlres the Iruslees lo prepare flnanclal statèments for each financial year. Under ompany law the trustees musl not approve the flnancial 8latemenls unless they are salislied that they glve a true and fair view of the siale of affairs of the charitable company and of the incomlng resour￿8 and appllcation of resources, includinu ils Income and expendllure, of the charitable Gompany for that period. In preparing these financlal slalemenls, the trustees are required lo.. select suitable accounting pollcies and apply them conslslenlly,. observe the methods and prlnclples In the Charities SORP., make judgements and estimates th21 are reasonable and prudent- stale whether applicable accounting standards, comprislng FRS 102 have been followed, sublecl lo any material departures disclosed and explainèd in the financial slalements,. 8nd prepare the flnancial slalemenls on th& golng concern basls unless il is inapproprlate to presume that the chaTltable company will oontinue in buslness. The Iruslees are responsihle for keeping proper accounllng records that can disclose with re8sonable accuracy 81 any Ilme the financial posS1ion of the charitable company and enable them lo ensure that the Ilnancial stalemenls comply with the Companies Act 20￿. They are also responsible for safeguarding the assets of the chari12ble company and hence for laklng reasonable steps for the prevention and detection of fraud and other Irffgularllles. The Iruslees are responslble for the malnlenance and integrity of the corporate and Ilnanclal information induded on the ¢harilable company's website. Legislation govtsrnlng the preparallon and dissemination of financial statements may differ from legislation In other lurlsdlcllons. Approved by the INglees of the Charity on IIIIL.Igu&3 and slgned on Ils behalf by.. Deielc Tllby jchalrj Trustee Chrls Seamarks jTreasurei} Trustee Page 10 YMCA Cornwall Independent Auditor's Report to the Members of YMCA Cornwall Opinion We have audited the financtal statements of YMCA Comwall {Ihe 'charily'l for the year ended 31 March 2023. which comprise the Slalemenl of Financial Aclniilies, Balance Sheet, Statement of Cash Flows, and Notes lo the Financial Stslements, including a summary of Significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporb'ng Standard applicable in the UK and Republic of Ireland. and applicable law Iunited Kingdom Generally Accepted Accounting Practice). In our opinion the financial slalements.. give a true and fair view of the slate of the charity's affairs as al 31 March 2023 and of ils incoming resources and application of resources, including its income and expenditur8. for the year then ended., have been properly prepared in accordance wlh United Kingdom Generally Accepted Accounting practi￿,. and have been prepared in aceordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Inlemalional Standards on Auditing (UK) {ISAs (UKI) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the 8udil of the financial slalemenls section of our report. We are independenl of the charity in accordance with the ethical requirements that are relevant lo our audit of the financial slalemenls in the UK, including the FRC'S Ethical Standard, and we have fullilled our other ethical responsibilities in accordanee with these requirements. We believe that the audit evidence we have obtained is sufficient 2nd appropriate lo provide a basis for our opinion, Concluslons relating to going concern In auditing the financial stalemenls, 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 Un￿rtaInlieS relating lo events or conditions that, individually or collectively, may cast significalll doubl on the charity's ability lo continue as a going concern foT a period of al least twelve months from when the original financial statements were 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 Ihe information included in the annual report, other than the financial statements 2nd our audilovs report thereon. Our opinion on the financial statements does not cover the other inform21ion and, except lo the extent otherwise explicitly s18ted in our report, we do not express any form of assurance conclusion thereon. Page 11 YMCA Cornwall Independent Auditor's Report to the Members of YMCA Cornwall In connection with our audit of the fi'nancial slalements, our responsibility is lo read the other information and, in doing so, consider whether the other informalK>n is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misslalemenls, we are required lo determine whether there is a material misstatement in the financial statements or a material misslatemenl of the other inforn7ation, If. based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required lo report that fact. We have nothing to report in this reg£rd. Oplnlon on other matter prescrlbed by the Companles Act 2006 In our opinK)n, based on the work undertaken in the course of the audit.. the information given in the Trustees Report for the financial year lor which the financial slalements are prepared is consistent with the financial statements., and the Trustees Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light ol our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misslatemenls in the Trustees Report. We have nothing lo report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion.. adequ21e a(LOLJnling records have not been kept, or returns adequate for our audit have not been received from branches not visited by us", or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of trustees remuneration specified by law are not made,. or we have not received all the Information and explanaiions we require for our audit. the direclors were not ents'lled lo prepare the financial slalements in accordance with the small companies regime and lake advantage of the small companies, exemptions in preparing the directors, report and from the requirement lo prepare a strategic report. Responsibilities of trustees As explained more fully in the Stslement of Trustees, Responsibilities (set out on page 101, the Iruslees 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 lo enable the preparation of financial slalements that are free from material misslalement, whether due lo fraud or error. In preparing the financial slalemenls, the Iruslees are responsible for assessing the charity's ability lo continue as a going concern, disclosing, as applicable, mallers related to going concern and using the going concern basis of accounting unless the Iruslees either intend to liquidate the charity or lo coase operations, or have no realistic altemative but lo do so. Page12 YMCA Cornwall Independent Auditor's Report to the Members of YMCA Cornwall Auditor responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assuran￿ about whether the fln2ncial 8talements as a whole are free from material misslatemenl, whether due lo fraud or error, and lo issue an aLJdilor's report that includes our opinion. Reasonable assuran￿ is a high level of assurance, bul 18 not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misslalement when il exists. Misslatemenls 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 slalemenls. Irregularities, including Iraud, are instances of non-compliance with laws and regulations. We design procedures in line wth our responsibilities, outlined above, to detect material misstalemenls in respect of irregularities, including fraud. The extent lo which our procedures are capable of detecting irregularities, including fraud is detailed below.. As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the charity and the sector in which il operates lo identify the key laws and regulations affecting the entity. The key laws and regulations we identified were health and safely, gafeguarding, data protection, employment law and compliance with grant funding conditions. We also considered those laws and regulations that have a direct impact on the preparation of the financial slalements, primarily the Companies Act 2006, Charities Act 2011 and wmpliance with the Charities Statement of Recommended Practice. We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deals with reporting any issues if they 8rise. We assessed the susceplibilily of the charity's financial slalemenls to material mislatement, including how fraud might occur as part of the audit planning process. We determined that these risks are low considering the fact that the charity operates on a not for profil basis and so there would be no motivation for management to influence perfomiance for Individual gain. Based on this understanding we designed our audit prO￿dureS to identify non-compliance with such laws and regulations. Our proGedures involved the following.. We reviewed legal and professional costs to identify any non-compliance or legal costs in relation lo non-compliance. We reviewed the board minutes for anything L*nusual. We made enquires lo management regarding their knowledge of any non-compliance with laws and regulations that Could affect the financial statements. We reviewed a sample gf expenditure lo confirm il has been incurred and allacaled lo the appropriate fund. We reviewed the risk register for anything unusual. We audited the risk of management override of controls through lestlng journal entries and other adjuslmenls for appropriateness. As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud of which there were none. Page 13 YMCA Cornwall Independent Auditor's Report to the Members of YMCA Cornwall Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstalemenl in the financial slalements. This risk increases the furlher removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements 8s we are less likely lo become aware of instances of non-compliance. The risk of not detecting a material misslalemenl due lo fraud is higher than the rtsk of not detecting one resulting from error. as fraud may involve deliberate COn￿alMent. collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council's website at". ww.frc.org.uklauditorsresponsibililies. This doscriplion forms part of our audito¢s report. Use of our report This tEport is made solely lo 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 Ihal we might slate lo the charity's members those matters we are required lo stale to them in gn auditoff s report ancl for no other purpose. To the fullest extent permilled by law. we do not ac￿p1 or assume responsibility lo anyone other than the charitable company and ils members as a *)dy, for our audit work, for this report, or for the opinions we have formed. Ptp Q(rL Darren Perry BA {Honsj ACA DChA (Senior Slatulory Audilorl PKF Francis Clark, Slalutory Auditor Lowin House Tregolls Road Truro Comwall TR12NA Date.. 18 December 2023 Page 14 YMCA Cornwall Statement of Financial Activities for the Year Ended 31 March 2023 {Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestrlcted funds Restrlcted funds Total 2023 Note Income and Endowments from: Donations and legacies Charitable activities Other trading activities Investment income 6,323 853.405 33,093 1.999 6,323 930,944 33.Q93 1,999 77.539 Total Income 894,820 77.539 972.359 Expenditure on: Raising funds Charitable activities {25,5801 992,1241 125.5801 1.052,470 {60,346 Total expendilu Nel lexpenditurellincome 1,017,704) {60,348 1,078,050 122.8841 17.193 1105,6911 Nel movement in funds 1122,884) 17,193 1105,6911 Reconcillatlon of funds Total funds brought forward Total funds carried fotward 552,054 240,268 792,322 21 429,170 257.461 686.631 The note8 on pauès 21 to 43 form an integral part ol these financial slalemenl8. Page 15 YMCA Cornwall Statement of Financial Activities for the Year Ended 31 March 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Comparative Statement of Flnancial Activities for the year ended 31 March 2022 Unrestricted Restrlctèd funds funds Total 2022 Note Incomè and Endowménts from., Donations and legacies Ch8ritsble activities Other trading aclivilies Investment income 5.569 807,384 21.617 38 5.56g 913,241 21,617 38 105,857 Tot81 income 834,608 105,857 940,465 Expenditure on: Raising funds Charitable aolivilies 119.1171 497,7011 (19.1171 584.5791 86.878 Total expenditure 516,818 86.878 603,696 Nel income 317,790 18,979 336,769 Net movement in funds 317,790 18,979 336,769 Reconciliation of funds Total funds brought forward Total funds carried fonmard 234,264 221,289 455,553 21 552.054 240,268 792,322 All of the charity's aclivilies derive from continuing operations during the above bNo periods. The funds breakdown for 2022 is shown in note 21. The notes tsn pages 21 to 43 fom an inlegral part of these financial slalemenls. Page 16 YMCA Cornwall (Registration number: 03684583) Balance Sheet as at 31 March 2023 2023 2Q22 Note Fixed assets Tangible assets 975.472 507,562 Current assets Stocks Debtors Investments Cash al hank and in hand 12 13 14 15 1,322 66,850 230 423,448 70,496 230 102,858 173,584 491,850 Creditors: Amounts falling due withln one year Net current assets 16 120,157 111,946 53.427 379,904 Total assets lèss current liabilities 1,028,899 887,466 Creditors: Amounts falling due after mora than ono year 17 Net assets (342,2681 686,631 95,144 792,322 Funds of the charity.. Reslricled Unresliicled 257,461 429,170 240,268 552,054 Total funds 21 686,631 792,322 For the financial year ending 31 March 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating lo sm811 companies. The Trustees have however elected to be audited on a voluntary basis. Directors, responsibilities= The members have not required the charity lo obtain an audit of its accounts for the year in question in a¢Gordance with section 476., and The directors acknowledge their responsibilities for complying with the requirements of the Act with respect lo accounting records and the preparation of accoijnts. These financial statements have been prepared in accordance with the special provisions relating to companies subject lo the small companies regime Mrilhin Part 15 of the Companies Act 2006. The note5 on pages 21 to 43 form an inlegral part of those financial slalements. Page 17 YMCA Cornwall (Registration number: 03684583> Balance Sheet as at 31 March 2023 The financia on slatemenls on pages 15 to 43 were approved by the Irusiees, and auihorised for issue 2 3￿d 81gned on thelr behalf by. Derek Tllby IChaSrj Trustètt Chrjs Sfygm8rks ITrag$urerJ Trustee Tha noto8 on pages 21 to 43 fomi an Integral part of thsBe flnanclal 8tatemenis. Page 18 YMCA Cornwall Statement of Cash Flows for the Year Ended 31 March 2023 2023 2022 Note Cash flows from operating aetivltlès Nel cash lexpendilurellincome Adjustments to cash flows from non-cash items Depreciation Investment income Interest payable Profil on disposal of tangible fixed assets {105.6911 338,769 71,654 11,9991 1,953 57,689 1381 678,394 1283,9741 134,0831 Working capital adjustments DecTeasellincreasel in stocks Increase in debtors Incre8se in creditors Decrease in deferred income 12 13 16 17 1,322 13.6461 12,887 113,889 1396) 144,4271 3U,840 Nel cash flows from operating activities 137,409 1297,9571 Cash flows from Investlng activities Interest receivable and similar income Purchase of tangible fixed assets Sale of tangible fixed assets Purchase of investments 1,999 1539,5641 38 145,735) 679,197 101 11 Nel cash flows from investing activities 537,565 633,490 Cash flows Irom financing activities Value of new loans obtained during the period Repayment of loans and borrowings Repayment of Gapilal element of finance leases and HP contracts 29g,000 137,5401 16 134,4261 18 7,076 Net cash flows from financing activities Net {decreasellincrease in cash and cash equivalents Cash and cash equivalents at 1 April Cash and cash equivalents at 31 Thlarch 254,384 134,4261 1320,5901 423,448 301.107 122,341 423,448 102,858 The notes on pages 2110 43 form an Integral part of these financlal statements. Page 19 YMCA Cornwall Statement of Cash Flows for the Year Ended 31 March 2023 Reconclliation of net cash flow to movement in net funds IDecrease)lincrease in cash Cash inflow from increase in loans Cash outflow from repayment of loans Change in net Ideblllfunds resulting from cash flows New finance leases 1320,5901 1259,0001 37.540 301,107 34,426 1542,0501 34,877 335,533 Movement in nel Ideblllfunds Nel fundslldebtl al 1 April 2022 Net Idebtlllunijs al 31 March 2023 1576,9271 290,764 335,533 44,769 1286,1631 290.764 All of the cash flows are derived from continuing operations during the above iwo periods. The notes on pages 21 to 43 form an integrxl part of these financi81 stalements. Page 20 YMCA Cornwall Notes to the Financial Statements for the Year Ended 31 March 2023 1 Charity status The charity is limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the members is liable lo contribute an amount not exceeding £1 towards the assets of Ihe charity in the event of liquidaliot). The address of ils r￿IStered office is.. The Orchard Alverton Road Penzance Cornwall TR18 4TE 2 Accounting pollcies Summary of significant accounting policies and key accounting estimates The princ4pal accounting policies applied in the preparation of these financial slalemenl8 are sel out below. These policies have been consislenlly applied to all the years presented, unless otherwise stated. Statement of compliance The financial statements have been prepared in accordan￿ with Accounting and Fleporting by Charities.. Statement of Recommended Practice 8pplicable to charities preparing their accounts in a￿Ordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 {Charilies SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021. They also comply with the Companies Act 2006 and Charities Act 2011. Basis of preparation YMCA Cornwall meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised al historical cost or transach'on value unless otherwise slated in the relevant accounting policy notes. Going conce¥n The financial statements have been prepared on a going concern basis. The trustees 2ssess whether the use of going concern is appropriate i.e. whether there are any material Un￿rtaInlieS related to events or conditions that may cast Significant doubl on the ability of the charity to continue as a going concern. The Iruslees make this assessment in respect of a period of one year from the d21e of approval of the financial sl8lements, Having considered the future impact of inflation. losn covenants, cashflow and projected housing seNices income, the trustees consider that there are no material uncertaintie5 about the charity's ability lo continue as 8 going concern nor any signilicanl areas of Un￿rtainlY that affect the carrying value of assets held by the charity. P39e 21 YMCA Cornwall Notes to the Financial Statements for the Year Ended 31 March 2023 Income and endowments All income is recognised once the charity has entillemenl lo the income, it is probable that the income wll be rettived and the amount of the income receivable can be measured reliably. Donations and legacles Donations are recognised when the certalnty of receipt and the amount re￿1vable has been established. Where the donated go￿ is a fixed asset, il is measured al fair value, unless il is impractiC21 to measure this reliably, in which case the cost of the item lo the donDI ghould be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and deprec121ed over the useful economic life in accordance with the charitable Company's accounting policies. On receipt, donated professional services and facilities are recognised on the basis of thè value of the gift lo the charitable company which is the amount il would have been willing lo pay lo obtain servi￿$ or facilities of equivalent economic benefit on the open mart