OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-03-31-accounts

YMCA East Surrey

(A charitable company limited by guarantee)

Report and Financial Statements

for the year ended

31 March 2022

Charity Registration No: 1075028 Company Registration No: 03716594 Social Housing Provider Registration No: 4854

YMCA East Surrey Contents

Page
Legal and administrative information 1
Report of the Chief Executive 2 - 5
Report of the Trustees 6 - 13
(incorporating the Strategic Report)
Independent Auditor’s report 14 – 16
Statement of comprehensive income 17
Statement of changes in reserves 18
Statement of financial position 19
Statement of cash flows 20
Accounting policies 21 - 24
Notes to the financial statements 25 - 33

Legal and administrative information

YMCA East Surrey

Directors and Trustees: Dr Diana Bullock (resigned 25 January 2022)
Paul Byrne - Chairman
Freda Clark (resigned 2 November 2021)
Nigel Clifford (resigned 2 November 2021)
Caroline Fisher
John Guy (appointed 2 November 2021)
Penelope Horsfall (resigned 2 November 2021)
Heather Loxley
Richard Mantle
Grant Samuel (appointed 2 November 2021)
Ian Thomas - Treasurer
Jeff Travis
The above served as trustees during (and, unless otherwise indicated, throughout) the year ended
31 March 2022.
Chief Executive and
Company Secretary: Ian Burks
Registered Office: YMCA East Surrey
Princes Road
Redhill
Surrey
RH1 6JJ
Registered Charity Number: 1075028
Registered Company Number: 03716594 (England & Wales)
Social Housing Provider
Registration Number: 4854
Bankers: Barclays Bank plc
Guildford, Gatwick & Woking Business Banking
90/92 High Street
Crawley
West Sussex RH10 1BP
Auditors: Crowe UK LLP
55 Ludgate Hill
London
EC4M 7JW
Solicitors: Morr & Co LLP
Prospero
73 London Road,
Redhill
RH1 1LQ

Page 1

YMCA East Surrey Report of the Chief Executive

YMCA East Surrey is a local charity that helps people to improve their lives, realise their potential and become the best they can be. Our focus is on the young, the vulnerable and those facing disadvantage. Services are delivered from nine YMCA sites plus numerous other outreach locations and venues in different communities. We offer a diverse range of charitable activity, covering sports, physical activity, childcare, youth work, family work, short breaks, housing and therapeutic services.

We pride ourselves on our inclusive approach, delivering specialist support for those with different abilities alongside universal services that everyone can benefit from. We believe all young people can succeed whatever their background and we encourage service users to build on their strengths to become healthy, happy and fulfilled members of our community.

Sadly, the need for our services have never been greater following the aftermath of Covid and this is reflected in the growth in our charitable services over the last year. We anticipate even greater demand as the country faces future challenges such as the energy crisis, conflict in Europe and the resulting cost of living crisis.

Despite the challenges, last year saw a number of key achievements including the development of a new supported housing scheme, the successful roll out of a Lottery funded youth work project and a successful bid to win a 5-year lease on the Phoenix, a Surrey County Council (SCC) owned Youth Centre in Tadworth.

Probably the most notable accomplishment, however, has been our contribution to the transformation of mental health services for young people in Surrey. The ongoing effects of the lockdown and resulting isolation faced by young people has fuelled a wave of emotional difficulties amongst young people, and the numbers requiring support are at an all-time high.

In response to this, the YMCA has worked closely with partners to help form a new alliance of partners under the title of Mindworks Surrey. This new service, jointly commissioned by SCC and Surrey Heartlands NHS, has been set up to improve the mental health of children and young people across the county. The new services follow the THRIVE Framework for System Change giving children and young people a central voice in decisions about their care.

The lead provider is Surrey and Borders Partnership but one of the key Alliance partners is the newly constituted Surrey Wellbeing Partnership (SWP) made up of 12 Surrey charities. The YMCA has played a central role in forming this pioneering new partnership and delivers a significant proportion of the services it commissions.

The first year of the contract required the mobilisation of a range of new services and the recruitment of many counsellors, wellbeing practitioners and relational youth workers. Despite some challenges with recruitment the YMCA was able to deliver 10,696 sessions of counselling, one to one support and youth group activity to children and young people across East Surrey. Young people accessing the services have been able to address difficult emotional issues such as depression, anxiety and low self-esteem and have achieved positive outcomes such as improved relationships with family and friends and greater success at school and college. We are confident that we can build on what has been learnt during year 1 of the contract to develop new innovative services and activities that will have a powerful preventative effect on young people’s wellbeing, dealing with issues early before they are allowed to become entrenched mental health problems.

Another important way to support emotional wellbeing is through good accessible youth work and over the last year thanks to a number of funders, including the National Lottery, the YMCA has continued to deliver free youth clubs and detached youth work in the five most deprived areas of Reigate and Banstead. These services are offered from youth centres in Redhill, Horley, Woodhatch, Merstham and Tadworth as well as out on the streets and in parks and open spaces where young people congregate.

Page 2

YMCA East Surrey Report of the Chief Executive

Both Reigate and Banstead Borough Council (RBBC) and SCC play a key role within the YMCA’s Youth Offer and last year the YMCA entered into a five-year lease and service level agreement to take on the management of the Phoenix Youth Centre. This is the second SCC youth centre leased to the YMCA (following Horley) and these innovative arrangements have breathed new life and activity into buildings that were previously underused due to local authority funding pressures.

Both centres (along with our own Sovereign Centre) now offer a similar vibrant array of programme supporting children, young people and families with a wide range of needs. The centres are also made available free of charge to other statutory and charitable partners such as the MYTI club who provide additional positive activities for young people in Tadworth.

Other services within our Children and Young People Department have continued to thrive. Last year after successful delivery against targets our short breaks contracts with SCC and West Sussex County Council were extended for a further year until March 2023. Short breaks provide essential time away from caring for parents and siblings but also offer exciting opportunities for young people with disabilities to gain skills, make friends and move towards more independence.

Numbers of families accessing our YMCA Preschools have increased over the last year thanks to the great work of our managers and staff, however financial viability of this provision is still a challenge especially at Merstham which is often quoted as the most deprived ward in Surrey. Most of the children access free funded places from SCC and the subsidy per place will only increase by 1.1% for 2022/23. Research shows that the first 1,000 days have a major influence over the rest of a child’s life and accessing early years education helps give children the skills and confidence needed to thrive when they start school.

One of the most fundamental ways the YMCA can help a young person is by providing them with a safe and affordable home and we have seen many at risk young people transformed by the positive package of support that all our residents receive when they move into one of our 57 units of supported accommodation (increasing to 69 from April 2022).

In April 2021 we completed on the purchase of a former guest house in Horley which we have redeveloped with help from Homes England, RBBC and LandAid, into a high-quality supported housing scheme for 12 young people. The property has 3 self-contained units and 9 shared rooms each with ensuite facilities, plus generous community spaces including a large lounge area, kitchen and conservatory.

The opening of Massetts Rd coincided with SCC’s recommissioning of supported accommodation, and we were able to increase the number of beds that will be supported by SCC from April 1[st] 2022 to 63 out of our total 69 units. This guarantees our residents a core support service including a key worker and access to a range of Y Focus group activities, and this is supplemented by a wider package of YMCA holistic support such as free fitness programmes at our Sports and Community Centre, volunteering schemes (funded by The William Waites Foundation) free counselling and youth work projects. All these initiatives ensure that young people have every opportunity to build the skills, self-esteem and confidence to move on to independent living.

Over the last two years the Housing Team have been embedding a Trauma Informed Approach (TIA) to supporting young people. There is a growing recognition that many of the young people we work with have been exposed to adverse childhood experiences such as abuse, violence or neglect which may have long term effects. Staff have undergone training to understand the impact of this trauma on behaviour and how this can affect the relationships that young people have with family, friends and support staff. Training from Homeless Link has led to the introduction of regular ‘reflective practice’ along with changes to policies and language that help staff to adopt an asset-based approach, building on young people’s strengths rather than focussing on problems. This has proved invaluable, keeping staff motivated and empowering residents to achieve positive changes in their lives.

Page 3

YMCA East Surrey Report of the Chief Executive

Although our main focus within housing is on those aged 16 to 25 we also continue to work in partnership with RBBC and Tandridge District Council to offer the NextStep Service designed to help homeless single people and families to access the private rental sector.

Our third service line after ‘Children and Young People’ and ‘Housing’ is ‘Health and Wellbeing’ and this programme includes a mix of inclusive fitness and targeted physical activity designed to address health inequalities and promote healthy living amongst all members of the community. Notable developments over the last year include the recruitment of a full time Disability Sports Coordinator funded by the Peter Harrison Foundation who has been tasked with revitalising our disability sport provision and making best use of our fully accessible inclusive sports facilities at Princes Rd. Our Exercise Referral, Healthy Measures and Wellbeing Walks continue to attract referrals from GPs and the Wellbeing Service and we are grateful to Surrey Heartlands Integrated Care Partnership for their ongoing support which makes this work possible.

One of our priorities over the past 12 months has been to strengthen the central support available to front line projects and this has included the recruitment of two new posts of Head of Central Services and Head of Finance. Further work to embed our new Microsoft O365 cloud-based system has also taken place and all YMCA staff and trustees are now able to remotely access our data and systems, safely and securely. All legacy applications are now operating from Azure and there are future plans to bring in new more integrated software to streamline management processes and record outcomes and impact.

One unique feature of YMCA East Surrey which contributes to our financial sustainability is our Challenge Programme and in 2021/22 we were able to finally offer several face-to-face events following previous postponements due to Covid. We were also extremely lucky to have the support of her worshipful the Mayor of Reigate and Banstead, Cllr Jill Bray, who injected a huge amount of energy and innovation into our fundraising activities. Cllr Bray not only attended our events she also took part, raising money by sleeping out at the annual Sleep Easy in the Town Hall carpark and running the 3-mile Santa Run in Priory Park. She helped us deliver a successful fundraising quiz and raised a total of £10,365 from her Mayoral events.

Following the Covid Pandemic and the end of our previous five-year plan we have used the last year to review our current position, assess local needs and plan a way forward for the future of the charity. Following extensive consultation with trustees, staff and stakeholders and with the help of a pro bono consultancy called Skylark we have devised a new five-year strategy outlining the optimum future direction of our charitable work.

Key aims that have been identified include plans to become YMCA Surrey, extending our provision to address needs across all parts of Surrey and beyond, reaching out to more service users and working with key partners to provide county wide solutions for our many client groups.

The further expansion of housing is a central component of our strategy. Without safe, affordable accommodation a young person cannot begin to deal with all the other challenges they may face in their lives. Youth homelessness is growing and with our ‘Registered Provider’ status we are determined to develop new housing projects to give more young people the opportunity to build independence and succeed in life. The surplus generated over the last year will help us invest in this important priority.

If we are to successfully expand our reach, we need to focus on sustainability, not just in terms of financial viability, but also by understanding and limiting our impact on climate change. We want to build on our excellent track record of inclusive provision by developing greater diversity within our teams of staff and volunteers, and at a governance level. We are also keen to retain our volunteer ethos and to ensure that the young people we represent have a voice and are able to shape and influence the support available from the YMCA.

We recognise that none of the achievements of the past year or our future plans could be achieved without the support of our many vital partners, and we are extremely fortunate to work with some forward thinking and collaborative public bodies including RBBC and SCC along with Surrey Heartlands ICB and of course all our many charitable funders who enable us to develop and fund innovative new projects.

Page 4

YMCA East Surrey Report of the Chief Executive

Our biggest asset is our people, and the YMCA has a dedicated team who go the extra mile to fulfil our overriding aims to help people belong, contribute, and thrive. Our staff and volunteers are supported and steered by skilled and knowledgeable trustees led by our Chair, Paul Byrne, and I would like to take this opportunity to thank all of these dedicated people for the great work they do to transform the lives of so many people in our local communities.

Ian Burks Chief Executive

28[th] September 2022

Page 5

YMCA East Surrey

Report of the Trustees (incorporating the Strategic Report)

The Trustees present their report and the financial statements for the YMCA East Surrey for the year ended 31 March 2022.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, the Housing Statement of Recommended Practice 2018, the Accounting Direction for Private Registered Providers of Social Housing (issued by the Regulator of Social Housing in September 2019), the Housing Regeneration Act 2008 and are in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Objectives and activities

YMCA East Surrey is a Charitable Company – a company limited by guarantee and a registered charity governed by its Articles of Association.

The objectives of the YMCA East Surrey are:

As can be seen in the Report of the Chief Executive, these objectives are at the heart all of the services and activities we provide.

The Charitable Company is divided into three distinct service areas, designed and organised in order to meet these objectives: Housing, Children and Young People, and Health & Wellbeing. These are all supported by Central Services. In implementing the objectives through the activities of the service areas the Trustees have had due regard to the guidance on “public benefit” of the Charity Commission.

Housing – Supporting those facing challenges in their lives with safe, secure and affordable housing – helping them to overcome barriers and achieve independent living

Our housing services support people who are in need of a home, are homeless or at risk of becoming homeless. YMCA Hillbrook House provides homeless young people aged 16-30 with safe accommodation in Redhill; each resident receives advice, support and access to a range of services. We have three “Move On” houses in Horley, Merstham and Redhill which provide further support for those who need it. These projects provide a less intensive housing support option for those who are moving towards independence. NextStep is a professional housing service delivered by YMCA East Surrey (with support from Reigate and Banstead Borough Council) that helps individuals and families facing homelessness to access private sector accommodation.

Children and Young People – We believe in children and young people and seek to offer inclusive services and activities that support them to make the best start in life

Our services – Childcare and Children’s Activities, Family and Youth Services, Inclusive Services and Emotional Wellbeing and Mental Health are aimed at helping children and young people increase their confidence and self-esteem and lead fuller and more satisfying lives.

Page 6

YMCA East Surrey

Report of the Trustees (incorporating the Strategic Report)

Activities include counselling, youth groups, mentoring, pre-schools, holiday clubs, after school clubs, short breaks and recreational activities together with activities designed to support parents and carers. Where charges apply, we offer free or reduced places to families who need additional support.

Health & Wellbeing – Helping people of all ages and abilities living across Surrey to embrace active living and lead healthier more fulfilled lives

Health & Wellbeing comprises a range of activities including gym facilities, classes, weight management and exercise referrals for local people of all ages and abilities. Health & Wellbeing also provides sports facilities for community activities and disability sports.

The activities of the YMCA East Surrey are delivered through a mix of full time and part time staff working alongside a cadre of dedicated volunteers.

Achievements and Performance

In the Report of the Chief Executive, we set out the main achievements during the year. Within this report you can see that the Charitable Company continues to make a great difference to the lives of the people it helps and the reach of the Charitable Company’s work is continuing to expand within the county.

Financial review

Income and Funding

The Charitable Company’s funding is a blend of income from contracts for commissioned services, grants, rents and fees with a small but important proportion being derived from donations and fundraising (“challenge”) events. Most sources of income impacted by COVID (where services could not be delivered or events could not take place) had started to recover by the end of 2021/22.

In 2021/22 total income was £5,230,939 an increase of 24% - £998,117 on the previous year, reflecting the growth in all our services – but most particularly the commencement in April 2021 of our delivery of Emotional Wellbeing and Mental Health Services as part of the contract being delivered by the Surrey Wellbeing Partnership to Surrey and Borders Partnership NHS Trust.

The Trustees gratefully acknowledge the support of all our donors and funders. More than half of the Charity’s income is in the form of contracts and grants from the NHS, local authorities and other bodies. Such funding enables the Charitable Company to carry on the work in all our lines of service, in turn supporting the objectives of the Charitable Company.

The Trustees regularly monitor key performance indicators by service area, including income against budget, success in securing grants and measures of underlying activity levels such as rental voids, counselling interventions delivered and attendance levels.

When looking ahead, the Trustees are acutely aware of the cost-of-living pressures on our service users, the increasing competition for grants and the many demands on Government and Local Authority funding. The annual budgeting process is rigorous and seeks to ensure that underlying income drivers are realistic and attainable.

Expenditure

Operating expenditure for the 2021/22 financial year was £4,794,225 an increase of £996,234 on the previous year and commensurate with the increase in income. Staff costs at £3,220,603 remain our main area of expenditure, accounting for 67% of total expenditure (2021: £2,679,327 – 71%).

The Trustees regularly monitor key performance indicators for expenditure by service area including costs against budget, headcount, payroll run rates as well as large or unusual non-staff costs.

Page 7

YMCA East Surrey Report of the Trustees (incorporating the Strategic Report)

Financial review (continued)

Trustees are also very focused on monitoring the inflationary pressures on our cost base as well as the competitive positioning of our staff reward and staff turnover levels.

Overall results for the financial year

The Charitable Company’s activities produced a total surplus of £475,971 for the 2021/22 financial year (2021: £522,996) which consisted of a surplus on unrestricted reserves of £470,713 (2021: £592,795) and a small surplus of £5,258 (2021: deficit £69,799) on restricted reserves. The small 2022 surplus (2021: deficit) on restricted reserves is in part reflective of these funds largely relating to premises which do not generate income and in part reflective of the low margins on commissioned services. The surplus on unrestricted reserves reflects the success of “challenge” events and also includes a surplus on revaluation of investments of £64,678 (2021: £107,952).

The Charitable Company achieved an operating surplus of £235,197 (2021: £133,370) in social housing; £93,307 (2021: £82,121) in non-social housing and £108,210 (2021: £219,340) in nonhousing. The overall operating surplus of £436,714 (2021: 434,831) enabled a contribution to reserves in line with our reserves policy to cover the growth in operating expenditure in 2021/22 as well as a funding for future expansion in our charitable activities.

The Charitable Company has total reserves of £6,582,636 at 31 March 2022 (2021: £6,106,665) as set out in the Statement of financial position. The majority of the restricted funds of £4,268,129 is attributable to the net book value of the freehold premises in Princes Road including the Inclusive Sports Facility (ISF), Lynwood Road and London Road “Move On” properties and the leasehold of the Sovereign Centre in Woodhatch. There are also designated funds totalling £635,689 (2021: £563,751) largely attributable to “challenge” event funding of the Princes Road facility and other projects.

Reserves policy

The Charitable Company’s aim is to hold sufficient unrestricted free reserves to cover up to three months’ expenditure so as to ensure, as far as possible, the continuation of the Charitable Company’s activities in the event of significant fluctuations or shortfalls in anticipated income.

The Charitable Company had unrestricted reserves of £2,314,507 as at March 2022 (2021: £1,843,794). Unrestricted free reserves are funds that the Board is free to use to support our charitable work, available at short notice. A proportion of the unrestricted reserves comprise fixed assets (net of long-term bank loans and capital grants) totalling £924,653 (2021: £811,513) which are not readily available. Excluding these fixed assets and adding back long term pension deficit contributions of £142,031 (2021: £152,794) unrestricted free reserves totalled £1,531,885 (2021 £1,185,075). This represents approximately 3.4 months of expenditure budgeted for the forthcoming year, which meets the requirements of the reserves policy with a small balance available for investment (2021: approximately 3.0 months).

The Reserves Policy is continuously monitored and reviewed by the Finance and Resources Committee which makes recommendations to the Trustees if and when action is needed to maintain the policy or consideration needs to be given to its modification.

Value for money

YMCA East Surrey is committed to achieving Value for Money (VFM) across all aspects of the Charitable Company’s business. The aim is to generate surpluses in our service provision, to maintain a viable business and to fund future capital investment whilst at the same time ensuring we deliver high levels of service user satisfaction - in line with our charitable objectives. VFM is led by the Board and overseen by the Finance and Resources Committee.

VFM is about achieving the right balance between the three ‘E’s’- Economy, Efficiency and Effectiveness. Essentially this requires YMCA East Surrey to assess the impact of all its costs, to best meet its stakeholders’ needs.

Page 8

YMCA East Surrey Report of the Trustees (incorporating the Strategic Report)

Financial review (continued)

VFM is high when there is an optimum balance between all three 'E’s': relatively low costs, high productivity and successful outcomes.

The Charitable Company seeks to optimise by VFM by:

Alongside compliance with the 2018 Value for Money Standard and associated Code of Practice, as a non-profit private registered provider of social housing, the Charitable Company is expected to report on certain value for money metrics to enable effective comparison across the sector. The metrics are included below:

Page 9

Report of the Trustees (incorporating the Strategic Report)

YMCA East Surrey

Structure, governance and management

Legal status

The YMCA East Surrey is an incorporated Association and is affiliated to the National Council of YMCAs in England (charity number 212810).

YMCA East Surrey is a company limited by guarantee, incorporated on 19 February 1999 and registered as a charity on 9 April 1999. The company and charity registration numbers are shown on page 1. The governing documents are the Memorandum and Articles of Association. On the 21 October 2014, the Charitable Company changed its name from Reigate and Redhill YMCA to YMCA East Surrey to reflect its expanding services across the local area. On 1 August 2017, the Charitable Company became a non-profit private registered provider of social housing (registered provider).

Trustees, as corporate members, guarantee to contribute an amount not exceeding £1 to the assets of the Charitable Company in the event of winding up.

Code of governance

The Board is committed to delivering best practice in all aspects of governance and the Trustees have adopted the Charity Governance Code for Larger Charities. As an evolving organisation, YMCA East Surrey will continue to review and develop its governance in order to best serve its beneficiaries.

Annual review of governance and financial viability standard

As demonstrated by successfully gaining registered provider status in August 2017, YMCA East Surrey was able to demonstrate compliance with all RSH standards, including the governance and financial viability standard. The Finance and Resources Committee review the standard on an annual basis and ensure all necessary measures required to ensure compliance are put in place.

Organisation

The Trustees are directors for the purpose of company law as well as trustees for the purpose of charity law. They are responsible for the governance of the Charitable Company and delegate the day-to-day management to the Chief Executive and his management team. The Board of Management meets on a quarterly basis, or more often if required. There are a number of subcommittees and Advisory Groups that comprise of trustees and others which report back to the Board of Management for ratification. The Finance and Resources Committees meets 9 times a year whilst other committees meet quarterly.

Appointment, induction and training of trustees

Trustees are appointed at the AGM to serve a period of 3 years. One third of the Trustees retire each year by rotation and are eligible for re-appointment at each AGM. If it is agreed that a Trustee will serve for more than nine years, then it is subject to a particularly rigorous review and takes into account the need for progressive refreshing of the Board, and their re-appointment is explained in that year’s Report of the Trustees. The Board of Management has power to co-opt additional members and fill casual vacancies.

It is the aim of the Board of Management to attract new Trustees with suitable skills who themselves may be drawn from the various user groups. All Trustees undertake inductions and on-going training to ensure that they quickly become effective and are aware of developments in corporate and charity governance. Every new Trustee is issued with a copy of a comprehensive Trustees’ Handbook together with certain key documents listed within the Handbook, the Charitable Company’s Memorandum and Articles and the latest audited Financial Statements among others. They are also offered induction opportunities with staff and other Trustees and are briefed about the various services provided by YMCA East Surrey. Further, there is an annual Away Day where the Trustees, the Chief Executive and senior members of his management team meet to discuss the future direction of the Charitable Company and to deliver any necessary training and updates. The long-term aim is to have well-balanced and appropriately qualified Trustees.

Page 10

Report of the Trustees (incorporating the Strategic Report)

YMCA East Surrey

Structure, governance and management (continued)

Pay policy for senior staff

Key management personnel in charge of directing and controlling, running and operating the Charity are deemed to be the Board of Management and the Senior Management Team. The Senior Management Team comprises the Chief Executive and four Heads of Service.

The Trustees give their time and expertise freely and receive no reimbursement for expenses. The pay of the Senior Management Team is reviewed annually and salary increases will be recommended by the Chief Executive and approved by the Finance and Resources Committee. Pay for the Chief Executive is also set annually by the Remuneration Committee.

Details of related party transactions are set out in Note 20.

Investment policy

Aside from retaining a prudent amount in reserves each year most of the Charitable Company’s funds are to be spent in the short term so there are few funds for long term investment. The Finance and Resources Committee continue to monitor the amounts invested with CCLA Investment Management Limited (CCLA) on a regular basis taking into account the expected unrestricted surplus funds. The level of funds invested with CCLA takes into account the level of expected future pension contributions of the Charitable Company together with a proportion of the unrestricted funds to be invested for the long term. The decision to continue to hold the funds in the CCLA is to ensure that we maximise the expected long-term return on our assets within an acceptable degree of risk. This is deemed a low-risk strategy.

Risk management

The Charitable Company maintains a comprehensive risk management framework to ensure the effective management of all risk types that could affect the charity’s ability to achieve its objectives. A formal risk register is maintained by the Senior Management Team to record and assess identified risks in accordance with the Charitable Company’s Risk Policy, including an assessment of mitigating policies and procedures. The Trustees regularly review the principal risks and uncertainties that the Charitable Company faces and the overall effectiveness of the risk management framework.

This review has continued to identify the following key risks:

The latest review has also identified two additional key risks not previously reported:

Page 11

YMCA East Surrey

Report of the Trustees (incorporating the Strategic Report)

Structure, governance and management (continued)

In addition, the following key risks, whilst still prevalent are no longer considered principal risks:

Fundraising

The Charitable Company raises funds in a number of ways as set out below:

The Charitable Company does not use any commercial participators/professional fundraisers and all monitoring of fundraising is carried out internally. Whilst the Charitable Company has currently not signed up to any recognised fundraising standards, it does have a full and detailed Fundraising Policy that can be found on the Charitable Company’s website. This policy helps to ensure that the Charitable Company is protecting the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate and it specifically references:

Plans for the future

As referenced in the Report of the Chief Executive the Trustees have been actively involved in the development of a new Strategic Plan for the five years to 2027.

The strategy builds off the strengths of our teams and the success of the services that we deliver, focuses on the needs of the communities that we support - expanding the reach of our services, recognises the need to maintain financial viability if we are to continue to achieve our charitable objectives and looks to address external factors impacting the environment in which we operate.

Seven strategic priorities have been agreed:

Page 12

YMCA East Surrey

Report of the Trustees (incorporating the Strategic Report)

Plans for the future (continued)

The Senior Management Team are working on detailed plans to deliver this strategy.

Trustees’ responsibilities

The Trustees (who are also directors of YMCA East Surrey for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law and registered social housing legislation 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 these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006, The Housing Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2015. 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

A resolution to reappoint Crowe UK LLP as auditor will be put to the members at the Annual General Meeting.

By order of the board on

Paul Byrne Chairman 28[th] September 2022

Page 13

YMCA East Surrey Independent Auditor’s Report

Independent Auditor’s Report to the Members of YMCA East Surrey

Opinion

We have audited the financial statements of YMCA East Surrey (the charitable company) for the year ended 31 March 2022 which comprise the Statement of comprehensive income, the Statement of changes in reserves, the Statement of financial position, the Statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Board's 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 Board with respect to going concern are described in the relevant sections of this report.

Other information

The Board is responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Page 14

YMCA East Surrey

Independent Auditor’s Report

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.

Matters on which we are required to report by exception

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

Responsibilities of the Board

As explained more fully in the Board’s responsibilities statement set out on page 13, the Board is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board is 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 Board either intends to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

Extent to which the audit was considered capable of detecting

irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

Page 15

YMCA East Surrey Independent Auditor’s Report

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, the Housing and Regeneration Act 2008, together with the Housing SORP. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within charitable company for fraud. The laws and regulations we considered in this context for the UK operations were requirements imposed by the Regulator of Social Housing and the Charity Commission, General Data Protection Regulations, health and safety legislation and employment legislation.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, analytical review and sample testing of income, reviewing accounting estimates for biases, reviewing regulatory correspondence with Social Housing Regulator and the Charity Commission and OFSTED inspection reports, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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

Use of our report

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

Crowe U.K. LLP

Statutory Auditor 55 Ludgate Hill London EC4M 7JW

29[th] September 2022

Page 16

YMCA East Surrey

Statement of comprehensive income for the year ended 31 March 2022

Notes
Turnover
1
Operating expenditure
1
Operating surplus
2
Interest and dividends receivable
3
Interest and financing costs
4
Movement in fair value of financial instruments
10
Surplus for the year
Actuarial gains in respect of pension schemes
Total comprehensive income for the year		 2022
2021
£
£
5,230,939
4,232,822
(4,794,225)
(3,797,991)
436,714
434,831
242
1,043
(25,663)
(20,830)
64,678
107,952
475,971
522,996
-
-
475,971
522,996

All income arises from continuing activities of the charitable company. The charitable company had no recognised gains or losses other than those dealt with in the Statement of comprehensive income.

The notes on pages 21 to 33 form an integral part of these accounts.

Page 17

YMCA East Surrey

Statement of changes in reserves for the year ended 31 March 2022

Notes
Balance at 1 April 2021
18
Surplus from statement of
comprehensive income
Balance at 31 March 2022
18
Balance at 1 April 2020
18
Surplus (Deficit) from statement of
comprehensive income
Balance at 31 March 2021
18		 Restricted
reserves
Unrestricted
reserves
Total
£
£
£
4,262,871
1,843,794
6,106,665
5,258
470,713
475,971
4,268,129
2,314,507
6,582,636
4,332,670
1,250,999
5,583,669
(69,799)
592,795
522,996
4,262,871
1,843,794
6,106,665

Page 18

YMCA East Surrey Statement of financial position as at 31 March 2022

Company registration number: 03716594 Company registration number: 03716594 Company registration number: 03716594 Company registration number: 03716594
Notes 2022 2021
£ £
Fixed assets
Tangible fixed assets – housing properties 8 3,682,636 2,242,222
Tangible fixed assets – other 9 3,946,384 4,031,954
Investments 10 615,502 550,824
Total fixed assets 8,244,522 6,825,000
Current assets
Debtors 11 453,499 712,438
Cash and cash equivalents 12 1,925,983 1,619,086
Total current assets 2,379,482 2,331,524
Current liabilities
Creditors: amounts falling due within one year 13 (1,992,314) (1,095,961)
Net current assets 387,168 1,235,563
Total assets less current liabilities 8,631,690 8,060,563
Creditors: amounts falling due after more than one year 14 (2,049,054) (1,953,898)
Total net assets 6,582,636 6,106,665
Reserves
Restricted reserve 18 4,268,129 4,262,871
Unrestricted reserve 18 2,314,507 1,843,794
Total reserves 6,582,636 6,106,665

The financial statements on pages 17 to 33 were approved by the Board of Management and authorised for issue on 28[th] September 2022 and are signed on its behalf by:

Ian Thomas Treasurer

The notes on pages 21 to 33 form an integral part of these account

Page 19

Statement of cash flows as at 31 March 2022

YMCA East Surrey

Notes
Cash flows from operating activities
Surplus/(deficit) for the financial year
Movement in fair value of financial instrument
Depreciation charges
Loss on fixed asset disposals
Dividends and interest received
Interest paid
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Increase/(decrease) in pension provision
Net cash generated from operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Government grants received
Proceeds from sale of investments
Interest and dividends received
Net cash used in investing activities
Cash flows from financing activities
Interest paid
New secured loans
Repayment of borrowings
Net cash used in/(provided by) financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of the year
12
Cash and cash equivalents at end of the year
12		 2022
2021
£
£
475,971
522,996
(64,678)
(107,971)
244,410
209,092
-
4,325
(242)
(1,043)
25,663
20,830
258,939
(462,323)
49,182
379,532
(9,896)
24,639
979,349
590,077
(1,599,254)
(250,694)
612,500
328,374
-
-
242
1,043
(986,512)
78,723
(25,663)
(20,830)
384,569
-
(44,846)
(44,389)
314,060
(65,219)
306,897
603,581
1,619,086
1,015,505
1,925,983
1,619,086

Page 20

Accounting policies for the year ended 31 March 2022

YMCA East Surrey

Legal status

YMCA East Surrey is a company limited by guarantee and is an English registered social housing provider, charity and public benefit entity. The liability of its members is limited to £1 each in the event of a deficiency arising on the winding up of the Charity.

It is also registered as a charity and has received dispensation to omit the word “Limited” from its title.

The principal address is YMCA Sports and Community Centre, Princes Road, Redhill, Surrey, RH1 6JJ.

The Charitable Company’s principal activities and nature of the Charitable Company’s operations are included in the Report of the Trustees.

Basis of preparation

The financial statements have been prepared in accordance with the Housing Statement of Recommended Practice 2014, the Accounting Direction for Private Registered Providers of Social Housing (issued by the Regulator of Social Housing in September 2019), the Housing Regeneration Act 2008, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the requirements of Companies Act 2006.

The financial statements have been prepared on the historical cost basis of accounting with the exception of investment at market value and on the going concern basis.

Judgements and keys sources of estimation uncertainty are set out within note n) of the Accounting Policies.

The Charitable Company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

Preparation of the accounts on a going concern basis

The Charitable Company’s financial activities, its current financial position and factors likely to affect its future development are set out within the Report of the Chief Executive and the Report of the Trustees. On this basis, the Board of Management has a reasonable expectation that the Charitable Company has adequate resources to continue in operational existence for the foreseeable future, being a period of twelve months after the date on which the Report and Financial Statements are signed. For this reason, it continues to adopt the going concern basis in the financial statements.

Principal Accounting Policies

A summary of the principal accounting policies is set out below.

Turnover, excluding VAT, is recognised in the Statement of comprehensive income as follows:

Page 21

Accounting policies for the year ended 31 March 2022

YMCA East Surrey

Principal Accounting Policies (continued)

Expenditure is included in the Statement of comprehensive income on an accruals basis, inclusive of any VAT if it cannot be recovered. Liabilities are included as provisions once the Charity has a legal or constructive obligation to make future payments.

Expenditure has been classified under the heading that aggregate all costs related to that 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. Support and other central costs have been apportioned to each activity on the basis of turnover.

The Charity separately identifies the major components that comprise its freehold properties, and charges depreciation, so as to write down the cost of each component to its residual value, on a straight line basis, over its estimated useful economic life.

The Charity depreciates the major components of its housing properties at the following annual rates:

Component Useful economic life Land Infinite Structure 100 years Roof 70 years Windows and doors 30 years Boilers 15 years Kitchens 20 years Bathrooms 30 years Mechanical systems 30 years Electrics 40 years Lifts 20 years

Depreciation is provided on all other tangible fixed assets, so as to write down the cost of each component to its residual value, on a straight line basis, over its estimated useful economic life at the following rates:

Component Useful economic life Leasehold buildings Over the term of the lease Sports equipment 4 years Other equipment 3 to 4 years

YMCA East Surrey participated in a multi-employer defined benefit pension plan for employees of YMCAs in England, Scotland and Wales, which was closed to new members and accruals on 30 April 2007. Due to insufficient information, the plan's actuary has advised that it is not possible to separately identify the assets and liabilities relating to YMCA East Surrey. As described in note 7, YMCA East Surrey has a contractual obligation to make pension deficit payments of £23,148 per annum (starting in May 2022, increasing 3% per annum) over the period to April 2027, accordingly this is shown as a liability in note 17 to these accounts. In addition, YMCA East Surrey is required to contribute £5,174 pa to the operating expenses of the Pension Plan and these costs are charged to the Statement of comprehensive income as made.

YMCA East Surrey also operates two defined contribution pension schemes, The Scottish Widows Scheme for Managers and The People’s Pension Scheme which is available to all current staff. The amount charged to the Statement of comprehensive income represents contributions payable in the period.

YMCA East Surrey also contributes to the Local Government Scheme Pension Scheme for employees who were subject to a TUPE transfer from Surrey County Council. This is a defined benefit scheme, the employer’s contribution rate is still to be assessed by the scheme’s actuary. Provision has been made for estimated contribution levels during the year.

Page 22

Accounting policies for the year ended 31 March 2022

YMCA East Surrey

Principal Accounting Policies (continued)

g) Operating leases Rentals applicable to operating leases are charged to the Statement of comprehensive income over the period in which the cost is incurred on a straight line basis.

h) Fund Accounting

Funds held by the Charity are either:

Unrestricted general funds - are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes Unrestricted designated funds – have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements

Restricted funds - are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charitable Company for specific purposes. The cost of raising and administering such funds are charged against the specific fund and set out in the notes to the financial statements.

i) Investments

j) Financial Instruments

The Charitable Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments.

Financial assets and financial liabilities are recognised when the Charitable Company becomes a party to the contractual provisions of the instrument, and are offset only when the Charitable Company currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

k) 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.

A provision for impairment of trade debtors is established when there is evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in the Statement of comprehensive income.

l) Cash at bank

Cash at bank includes cash and short term highly liquid investments with short maturity of three months or less.

m) Creditors, provisions and borrowings

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.

Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

Public benefit concessionary loans are recognised at the amount received by the Charity.

Page 23

YMCA East Surrey

Accounting policies for the year ended 31 March 2022

Principal Accounting Policies (continued)

The estimates and underlying assumptions are reviewed on an ongoing basis. Revision of accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following are deemed to be the key judgements within the financial statements:

Page 24

YMCA East Surrey Notes to the financial statements for the year ended 31 March 2022

Social housing
Rent
Service charges
Supported housing grants
Social housing grants
Total social housing
Non-social housing
Total housing
Non-housing
Childcare and children’s activities
Family and youth services
Inclusive services
Emotional wellbeing
Total Children & young people
Health and wellbeing
Other activities
Total non-housing
Total
Year ended 31 March 2021:
Social housing
Rent
Service charges
Supported housing grants
Social housing grant
Total social housing
Non-social housing
Total housing
Non-housing
Childcare and children’s activities
Family and youth services
Inclusive services
Emotional wellbeing
Total Children & young people
Health and wellbeing
Other activities
Total non-housing
Total		 Turnover
Operating
expenditure
Operating
surplus /
(deficit)
£
£
£
251,788
(197,891)
53,897
499,849
(392,853)
106,996
435,615
(357,815)
77,800
13,399
(16,895)
(3,496)
1,200,651
(965,454)
235,197
253,699
(160,392)
93,307
1,454,350
(1,125,846)
328,504
673,505
(730,599)
(57,094)
479,504
(457,339)
22,165
837,763
(940,260)
(102,497)
1,080,699
(955,847)
124,852
3,071,471
(3,084,045)
(12,574)
565,429
(530,387)
35,042
139,689
(53,947)
85,742
3,776,589
(3,668,379)
108,210
5,230,939
(4,794,225)
436,714
Turnover
Operating
expenditure
Operating
surplus /
(deficit)
£
£
£
238,449
(205,390)
33,059
483,448
(416,422)
67,026
375,367
(326,772)
48,595
10,234
(25,544)
(15,310)
1,107,498
(974,128)
133,370
275,525
(193,404)
82,121
1,383,023
(1,167,532)
215,491
467,095
(552,781)
(85,686)
465,603
(446,748)
18,855
807,155
(728,520)
78,635
475,906
(442,386)
33,520
2,215,759
(2,170,435)
45,324
415,034
(455,056)
(40,022)
219,006
(4,968)
214,038
2,849,799
(2,630,459)
219,340
4,232,822
(3,797,991)
434,831

Page 25

YMCA East Surrey

YMCA East Surrey YMCA East Surrey
Notes to the financial statements
for the year ended 31 March 2022
1 Turnover, operating expenditure and operating surplus(continued)
2022 2021
£ £
Void losses: notional calculation of income lost from vacant
rooms 18,710 14,592
Number of registered accommodation units – supported
housing 57 57
2 Operating surplus
2022 2021
£ £
The operating surplus is arrived at after charging:
Depreciation of owned assets 197,393 162,075
Depreciation of leasehold assets 47,018 47,017
Auditor’s Remuneration – Audit fees: 23,925 19,000
Operating leases 37,530 37,149
3 Interest and dividends receivable
2022 2021
£ £
Dividends on listed investments - -
Bank deposit interest 242 1,043
242 1,043
4 Interest and financing costs
2022 2021
£ £
Loan interest payable 25,663 20,830
5 Staff costs
2022 2021
£ £
Wages and salaries 2,929,392 2,430,077
Social security costs 195,290 159,381
Pension costs 95,921 89,869
3,220,603 2,679,327
During the year the charity spent £4,550 on termination payments (2021: £11,374).
The trustees received no remuneration or reimbursement of expenses during the year.
The full time equivalent number of staff during the year was 2022 2021
as follows: No. No.
Health and wellbeing 10 10
Children’s services 58 46
Housing 16 20
Support 13 14
Total 97 90
The average head count during the year was as follows:
Total 203 176
The number of higher paid employees who received emoluments in the following bands
was:
£70,000-£80,000 0 1
£80,000-£90,000 1 0

Page 26

YMCA East Surrey

Key management personnel in charge of directing and controlling, running and operating the Charity are deemed to be the Board of Management and the Senior Management Team. The Senior Management Team comprises the Chief Executive and the 5 (2021: three) Heads of Service. The total employee benefits of the key management personnel of the Charitable Company were:

Charitable Company were:
Salaries and pension costs
Social security costs		 2022
2021
£
£
269,701
242,909
28,614
26,311
298,315
269,220

The salary received by the highest paid executive staff member (the Chief Executive) was:

Salary 2022
2021
£
£
83,448
78,675

Contributions to the Scottish Widows defined contribution pension scheme on behalf of the Chief Executive were £6,064 (2020 £5,507).

Taxation

The Charitable Company is a registered charity and, as such, its income and gains falling within Sections 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives.

Pension costs

YMCA East Surrey participated in a contributory pension plan providing defined benefits based on final pensionable pay for employees of YMCAs in England, Scotland and Wales. The assets of the YMCA Pension Plan are held separately from those of YMCA East Surrey 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, which represented 79% of the benefits that had accrued to members.

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

The valuation prepared as at 1 May 2020 showed that the YMCA Pension Plan had a deficit of £36 million across all participating YMCAs. YMCA East Surrey has been advised that, it will need to make monthly contributions of £1,689 from 1 May 2021. This amount is based on the current actuarial assumptions (as outlined above), number of participants and may vary in the future as a result of actual performance of the Pension Plan. The current recovery period is 7 years commencing 1st May 2022.

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

Page 27

YMCA East Surrey

Notes to the financial statements for the year ended 31 March 2022 8 Tangible fixed assets – housing properties

Cost:
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation:
At 1 April 2021
Charge
Disposals
At 31 March 2022
Net book value:
At 31 March 2022
At 31 March 2021
All social housing properties are freehold.
Total amounts received for year ending 31 March
Capital grants
Revenue grants
9
Tangible fixed assets - other
Freehold
land and
buildings
Leasehold
land and
buildings
Sports
Equipment
£
£
£
Cost:
At 1 April 2021
3,676,666
904,777
321,958
Additions
-
-
98,025
Disposals
-
-
-
At 31 March 2022
3,676,666
904,777
419,983
Depreciation:
At 1 April 2021
325,502
446,362
273,869
Charge
55,913
47,017
35,394
Disposals
-
-
-
At 31 March 2022
381,415
493,379
309,263
Net book value:
At 31 March 2022
3,295,251
411,398
110,720
At 31 March 2021
3,351,163
458,414
48,088		 Cost:
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation:
At 1 April 2021
Charge
Disposals
At 31 March 2022
Net book value:
At 31 March 2022
At 31 March 2021
All social housing properties are freehold.
Total amounts received for year ending 31 March
Capital grants
Revenue grants
9
Tangible fixed assets - other
Freehold
land and
buildings
Leasehold
land and
buildings
Sports
Equipment
£
£
£
Cost:
At 1 April 2021
3,676,666
904,777
321,958
Additions
-
-
98,025
Disposals
-
-
-
At 31 March 2022
3,676,666
904,777
419,983
Depreciation:
At 1 April 2021
325,502
446,362
273,869
Charge
55,913
47,017
35,394
Disposals
-
-
-
At 31 March 2022
381,415
493,379
309,263
Net book value:
At 31 March 2022
3,295,251
411,398
110,720
At 31 March 2021
3,351,163
458,414
48,088		 Social
housing
properties
held for
letting
Total
£
£
2,342,473
2,342,473
1,472,599
1,472,599
-
-
3,815,072
3,815,072
100,251
100,251
32,185
32,185
-
-
132,436
132,436
3,682,636
3,682,636
2,242,222
2,242,222
2022
2021
£
£
612,500
328,374
-
-
612,500
328,374
Other
Equipment
Total
£
£
769,592
5,672,993
28,630
126,655
-
-
3,676,666
904,777
419,983		 798,222
5,799,648
325,502
446,362
273,869
55,913
47,017
35,394
-
-
-		 595,305
1,641,038
73,902
212,226
-
-
381,415
493,379
309,263		 669,207
1,853,264
3,295,251
411,398
110,720		 129,015
3,946,384
3,351,163
458,414
48,088		 174,289
4,031,954

Page 28

YMCA East Surrey

Notes to the financial statements

for the year ended 31 March 2022

----- Start of picture text -----
|||| |---|---|---| |10|Investments| |Movement in fixed asset listed investments|2022|2021| |£|£| |Market value at 1 April 2021|550,824|442,853| |Additions to investments at cost|-|19| |-|-| |Disposal of investments at cost| |Net gain on investment|64,678|107,952| |Market value at 31 March 2022|615,502|550,824| |11|Debtors| |2022|2021| |£|£| |Rent arrears|94,321|68,821| |Less: provision for doubtful debt|(6,306)|(4,806)| |88,015|64,015| |Prepayments|81,062|263,284| |Project funding debtors|231,763|357,007| |Other debtors|52,659|28,132| |453,499|712,438| |12|Cash at bank and in hand| |2022|2021| |£|£| |Deposit accounts|1,355,644|1,457,582| |Current account|560,193|150,681| |Cash|10,146|10,823| |1,925,983|1,619,086| |13|Creditors: amounts falling due within one year| |2022|2021| |£|£| |Bank loans (Note 15)|859,625|43,761| |Trade creditors|267,636|198,480| |Accruals|93,931|81,057| |Income received in advance|483,440|569,583| |Taxation and social security|50,943|58,595| |Other creditors|187,267|112,807| |Deferred capital grants (Note 16)|30,729|13,801| |Accrued pension deficit contributions (Note 17)|18,743|17,877| |1,992,314|1,095,961| |14|Creditors: amounts falling due after more than one year| |2022|2021| |£|£| |Bank and other loans (Note 15)|590,158|1,066,301| |Deferred capital grants (Note 16)|1,316,865|734,803| |Accrued pension deficit contributions (Note 17)|142,031|152,794| |2,049,054|1,953,898|

----- End of picture text -----

Page 29

YMCA East Surrey Notes to the financial statements for the year ended 31 March 2022

15 Bank and other loans

Secured:
In one year or less
In more than one year, but not more than two years
In more than two years, but not more than five years
In more than five years		 2022
2021
£
£
859,625
43,761
57,769
838,758
85,471
35,202
446,918
192,341
1,449,783
1,111,062

£152,250 was borrowed from Barclays in 2014 at a fixed rate of 5.73% until 30 June 2021 and thereafter at a variable rate of 3.25% over the bank’s base rate and is repayable over a 15 year term. This loan is secured by a legal charge over the property at 57 Lynwood Road, Redhill.

£989,340 was borrowed from Barclays in 2017 at a rate of 1.6% over the bank’s base rate. The loan has a 25 year repayment profile with a break after 5 years at which point the loan will be renegotiated. This loan is secured by a legal charge over the property on Brighton Road, Redhill.

£150,000 was borrowed from the Methodist Church in March 2019, this is a public benefit concessionary loan and is interest free and repayable at the end of the 15 year term. The loan is secured by a legal charge over the property at 200 London Road, Merstham

£400,000 was borrowed from Barclays in 2021 at a rate of 2.5% over the bank’s base rate. The loan has a 15 year repayment. The loan is secured by a legal charge over the property on Massetts Road, Horley.

16 Deferred capital grants

Deferred capital grants
As at 1 April 2021
Grants received in year
Amortisation
As at 31 March 2022		 Grant at
cost
Amortisati
on
Total net
grant
£
£
£
765,535
(16,931)
748,604
612,500
-
612,500
-
(13,510)
(13,510)
1,378,035
(30,441)
1,347,594

17 Accrued pension deficit contributions

As at 1 April 2021
Charged to statement of comprehensive income
Payments made
As at 31 March 2022
Payable by instalments:
Within one year
One to two years
Two to five years
After five years
Total		 Pension
deficit
£
170,670
10,324
(20,220)
160,774
£
18,743
19,951
67,651
54,429
160,774

Page 30

YMCA East Surrey

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

17 Accrued pension deficit contributions (continued)

YMCA East Surrey has been notified by the YMCA Pension Plan of their allocation of the overall deficit on the YMCA Pension Plan (see Note 7). The initial allocation was provided for in full in the 31 March 2007 financial statements in accordance with FRS102. Subsequent notification following updated actuarial valuations of the Plan increased the amount and further provisions were made in the 31 March 2009, 31 March 2012 and 31 March 2015 financial statements. Monthly payments of £1,929 increasing by 3% per annum, in respect of the deficit allocation are being made for 7 years from May 2022. The monthly payment amount also includes a contribution towards scheme expenses.

18
Analysis of reserves
Development capital
Sovereign capital
Sovereign centre
Lynwood Road Move-on
Inclusive sports facility
London Road Move-on
Hillbrook capital
Gym equipment
Horley family centre
Health and wellbeing
Housing
Children’s services
Youth services
Inclusive services
Emotional wellbeing
Total restricted reserves
Unrestricted reserves:
- General
- Designated
Total reserves
Development capital
Sovereign capital
Sovereign centre
Lynwood Road Move-on
Inclusive sports facility
London Road Move-on
Hillbrook capital
Health and wellbeing
Housing
Children’s services
Youth services
Inclusive services
Emotional wellbeing
Total restricted reserves
Unrestricted reserves:
- General
-Designated		 At 1 April
2021
Income
Expenditure
At 31 March
2022
£
£
£
£
1,012,197
-
(11,046)
1,001,151
458,413
-
(47,017)
411,396
123,295
-
-
123,295
290,827
-
(4,041)
286,786
1,826,564
1,883
(39,092)
1,789,355
292,457
11,505
(15,276)
288,686
71,663
-
(1,964)
69,699
65,455
(16,364)
49,091
13,030
(13,030)
-
24,141
137,047
(137,035)
24,153
121,273
253,223
(195,590)
178,906
34,850
44,357
(60,220)
18,987
-
239,568
(234,328)
5,240
7,191
66,279
(68,311)
5,159
228,318
(212,093)
16,225
4,262,871
1,060,665
(1,055,407)
4,268,129
1,280,043
4,155,351
(3,756,576)
1,678,818
563,751
79,843
(7,905)
635,689
6,106,665
5,295,859
(4,819,888)
6,582,636
At 1 April
2020
Income
Expenditure
At 31 March
2021
£
£
£
£
1,023,242
-
(11,045)
1,012,197
505,430
-
(47,017)
458,413
123,295
-
-
123,295
294,868
-
(4,041)
290,827
1,822,695
44,646
(40,777)
1,826,564
296,229
11,444
(15,216)
292,457
74,353
(728)
(1,962)
71,663
23,582
94,853
(94,294)
24,141
109,050
270,592
(258,369)
121,273
50,704
66,397
(82,251)
34,850
-
203,488
(203,488)
-
9,222
64,934
(66,965)
7,191
-
219,416
(219,416)
4,332,670
975,042
(1,044,841)
4,262,871
749,846
3,295,983
(2,765,786)
1,280,043
501,153
70,792
(8,194)
563,751
5,583,669
4,341,817
(3,818,821)
6,106,665

Page 31

YMCA East Surrey Notes to the financial statements for the year ended 31 March 2022 18 Analysis of reserves (continued)

General reserves are the ‘free reserves’ after allowing for all designated reserves.

The designated reserves have arisen from Challenge events and represents monies received in relation to the capital costs of the new facility completed in December 2018 at the Princes Road site and supports the work of other projects within the charity.

19

Restricted reserves

The Development capital reserve is held on trust to provide premises for the YMCA East Surrey. It is invested in the freehold land and buildings at Princes Road occupied by YMCA and it does not generate income.

The Sovereign capital reserve holds the leasehold premises at The Sovereign Centre and does not generate income.

The Sovereign centre reserve represents funds held to maintain and enhance the facilities at the Sovereign centre and to support the YMCA’s work with children and young people with disabilities.

The Lynwood Move-on holds the freehold premises at Lynwood Road and does not generate income.

The London Road Move-on holds the freehold premises at London Road and does not generate income.

The Inclusive sport facility reserve represents monies received in relation to the capital costs of the new facility completed in December 2018 at the Princes Road site.

Housing reserves includes bond balances totalling £86,049 (2021: £86,049) and equipment funding totalling £17,465 (2021: £17,465), for use in replacement equipment for Hillbrook House as required. The remaining balance is represented by donations and other income in relation to housing projects, still to be matched against the appropriate costs.

The Gym equipment reserves relates to money received in relation to new capital equipment purchased for the gym during 2021/22

Donations and other income received in respect Health and wellbeing, Children’s services, Youth services and Horley Family Centre are shown as other restricted reserves and matched with appropriate costs.

20

Related party transactions

The Trustees all give freely their time and expertise without any form of remuneration or other benefit in kind (2021: £nil). Further, the Trustees have received no reimbursement of expenses during the year (2021: £nil).

There was nil outstanding with related parties as at 31 March 2022 (2021: £nil).

21

Operating lease commitments

At 31 March 2022, the Charitable Company had total commitments under noncancellable operating leases for land and buildings as follows:

Within one year
Within two to five years
After five years		 2022
2021
£
£
37,530
26,818
106,262
25,679
53,700
19,380
197,492
71,877

22 Capital commitments

At the end of the year, the Charitable Company had capital commitments in respect of £nil (2021: £1,341,091)

Page 32

YMCA East Surrey

Notes to the financial statements for the year ended 31 March 2022 23 Net cash

ear ended 31 March 20
Net cash		 22
At 1 April 2021
Cash flow
Other movements
At 31 March 2022
At 1 April 2020
Cash flow
Other movements
At 31 March 2021		 Current
debt
Non-current
debt
Cash and cash
equivalents
Net cash
£
£
£
£
(43,761)
(1,066,301)
1,619,086
509,024
(815,865)
476,143
306,897
(32,825)
(859,626)
(590,158)
1,925,983
476,199
(39,446)
(1,115,005)
1,015,505
(138,946)
(4,315)
48,704
603,581
647,970
-
-
-
-
(43,761)
(1,066,301)
1,619,086
509,024

Page 33