OpenCharities

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

2024-03-31-accounts

YMCA DOWNSLINK GROUP Annual Report and Financial Statements for the year ended 31 March 2024 n¢A Here for young people Here for communities Here for you

YEAR AT A GLANCE

Number of children, Number of Number of Number of young people and children and young people children we families who young people we provided provided received specialist using our with a safe counselling information, advice services home services to and support 7,146 1,094 5,000 1,632 = ds

Our mission

To help children and young people have a fair chance to be who they want to be. We do this by providing a safe home, increasing life skills and self-confidence, and improving emotional wellbeing and mental health.

Our values

We speak out on the issues that are important to children and young people and help them find their own voice YMCA DownsLink Group is proud to be a member of the federation of YMCA England and Wales. We contribute to their vision and purpose: an inclusive Christian movement transforming communities so that all young people can belong, contribute and thrive. i.

Contents:

1 Overview of Board of Trustees, officers and advisors 4
2 Board report 2023/24 6
3 Achievements and performance 2023/24 and Annual Plan 2024/25 10
4 Financial review 12
5 Energy and carbon report 15
6 Risk management 17
7 Fundraising 19
8 Governance 20
9 Independent auditors’ report 24
10 Financial accounts and statements 28
11 Notes to the financial statements 31

2

Chair and CEO statement

This year, our goal was to continue to put children and young people at the heart of everything we do – from supporting our Youth Council members to providing feedback on our housing services to coordinating our vibrant network of Wellbeing Youth Ambassadors to promote youth mental health.

In July 2023, we launched a new strategy, setting out our ambitions over the strategic period 2023-2026. This Annual Report details progress on the first year of implementation and covers one of the most challenging periods for children, young people, parents and carers we have seen in decades.

Notwithstanding the challenges created by a post-COVID legacy impact on education, mental health and economic uncertainty, we are proud to have continued to deliver vital services that met the emotional and psychological needs of 7,146 children and young people across Sussex and Surrey. We have continued to be on the frontline supporting children and young people struggling with anxiety, mental health issues and without permanent housing.

Despite the financial constraints and the challenging market conditions, we have continued to invest in much-needed organisational infrastructure around our information, communication and digital systems and our buildings, ensuring we are compliant with legal and regulatory standards. We are committed to making sure our systems and the homes we provide are fit for the future.

Results reflect our progress with a 50% improvement in our budgeted operating deficit against the previous year and the positive development of an approved break-even budget as we move into 2024/25. Strengthening our foundations so that we have a robust base for growth is key to our ongoing sustainability.

The Board of Trustees extends its thanks to all staff, volunteers, partners, supporters and our community for helping us deliver our mission to help children and young people have a fair chance to be who they want to be.

Fran Beckett Chair of Board of Trustees

26 September 2024

Emily Brock Chief Executive Officer 26 September 2024

3

1 Overview of board of trustees, officers and advisors

List of Trustees and Advisers

Trustees

Fran Beckett, Chair Erin Barnes, Chair of Impact and Services committee (until 9 July 2024) Michael Chawatama Maggie Gairdner, Complaints Lead (appointed 5 February 2024) Michael Gercke (until 3 November 2023) John Holmstrom, Chair of Audit and Risk committee (until 18 July 2024) Tim-David Michaelsen (appointed 2 November 2023) Nick Mourant, Chair of Resources committee Andrew Newell, Chair of Audit and Risk committee (appointed 1 August 2024) Caroline Stearman, Chair of People and Remuneration committee Gianluca Zucchelli (appointed 2 November 2023) Simone Button, Chair of Impact and Services committee (appointed 1 August 2024) Damian Haley (appointed 1 August 2024)

Independent Committee Members

Chris Fisher, Audit and Risk committee Zarina Switlyk, Audit and Risk committee Kameka Mclean, People and Remuneration committee (appointed 2 November 2023) Simone Button, Impact and Services committee (appointed 28 November 2023 until 1 August 2024) Erin Barnes (appointed 1 August 2024)

Executive Team

Emily Brock, Chief Executive Officer (appointed 12 July 2023) Rachel Brett, Director of Children and Young People (until 31 March 2024) Baldeep Dhol, Director of Finance, ICT and Risk

Jayne Grier, Director of People and Programmes (appointed interim CEO 17 April 2023 until end of August 2023)

Lorri Holding, Director of Services (from 13 May 2024) Satnam Kaur, Director of Housing and Community Services (until 28 February 2024) Nikki Mason, Director of Fundraising and Communications (until 31 December 2023)

Company Secretary

Sian Stokes (from 2 November 2023) Baldeep Dhol (until 2 November 2023)

Registered office

Reed House, 47 Church Road Hove, East Sussex BN3 2BE

Registered charity

1079570

4

Registered company 3853734

Registered provider of social housing

4644

Registered member of BACP

0010275

Ofsted

Registered September 2024

Principal solicitors

Bate & Albon Solicitors, 23/24 Marlborough Place, Brighton BN1 1UB

Principal bankers

The Royal Bank of Scotland plc, 36 St Andrew Square, Edinburgh EH2 2YB

External auditors

Haysmacintyre LLP, 10 Queen Street Place, London EC4R 1AG

Internal auditors

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

5

2 Board report 2023/24

The Board of Trustees of YMCA DownsLink Group presents its Annual Report and Financial Statements for the year ended 31 March 2024.

We are the largest regional charity in Sussex and Surrey working to prevent youth homelessness and support children and young people’s emotional and mental health. We were incorporated in 1999 and the charity has evolved through several local YMCA mergers.

In July 2023, we launched a new strategy reflecting our ambitions over the next three years.

Our strategy re-energises our commitment to face the challenges of a post-pandemic world and the impact of post-economic uncertainty and aims to put children and young people at the heart of our thinking.

Principal activities

We support children and young people with multiple and complex needs up to the age of 25. We offer support in three service areas:

Our services are inclusive and we support children and young people who are LGBTQ+, Black and Racially Minoritised, neurodiverse, have experienced exploitation, are care-experienced, young families, young carers, young refugees and unaccompanied asylum-seeking children.

Public benefit statement

The trustees put children and young people at the heart of its approach to formulating its strategy and associated priorities. In doing so, the trustees confirm that they have given due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. Through the work that the charity undertakes in its service areas, it delivers public benefit and serves a wide range of children and young people, many of whom have multiple and complex needs.

People

We place great value on our staff and volunteers and aim to create a psychologically informed environment where everyone feels they can bring their best selves to work.

Every year we survey staff using the Great Place to Work[©] independent platform. In 2023, 79% of staff believed they could be themselves at work in our staff survey. We continue to work hard to create a culture of trust and inclusion that is free from harassment and abuse and offers access to continuous professional development and, for frontline staff, regular reflective practice supervision and clinical supervision.

In July 2023, the Board approved a People Strategy for the period 2023-2026 which is monitored through the People and Remuneration Board committee.

6

Last year we completed a significant restructure of our Extended Leadership team and Central Services teams to reduce salary costs and increase efficiency. This involved a reduction in the size of the Executive team from six to four (see below) and a reduction in the size of the Leadership team from 13 ‘Heads of’ to 10. We also reduced the size of our Central Services team. A total of £0.7M of savings have been realised for financial year 2024/25.

----- Start of picture text -----
Chief Executive
Director of Director of
Director of
People and Finance and
Services
Programmes Risk
----- End of picture text -----

Our voluntary staff turnover for the whole year was 22.3%, 6.7% higher than in 2022/23. Whilst this is comparative with wider challenges in the NHS and social care sectors, we are not complacent. In this year, we reviewed our recruitment policy and processes and launched a new onboarding plan for all staff.

In 2023/24, staff received a 4% cost of living increase, and we made a commitment to become a real living wage employer. The pay ratio between the highest and lowest paid staff member was 4.2 to 1.

Equity, diversity and inclusion

Our commitment to creating a more inclusive organisation is set out in a multi-year action plan. Implementation is monitored on behalf of the Board by the People and Remuneration Board committee. The plan was refreshed in 2023. Achievements last year included development of a behaviour framework to bring to life our values (to be completed in 2024), increased diversity in our governance and leadership, a review of core policies to ensure they reflect our inclusive approach and a new human resources software system that will improve the capture of staff diversity data.

We are committed to fair compensation practices to ensure that all staff, regardless of gender, receive equitable pay for similar roles and responsibilities. We use the Living Wage Foundation’s Real Living Wage as a baseline for staff remuneration and job evaluation is used to ensure fairness.

For the purposes of compliance with Gender Pay Gap reporting, staff are treated as ‘male’ or ‘female’ in line with HMRC guidance. We recognise this does not reflect the potential reality of gender identification within our staff cohort. Our published Gender Pay Gap report for 2023 had a mean adjusted pay gap which was 9.3% higher for women than men (a 2.3% increase on 2022).

Complaints

Our complaints policy is issued to all residents and is available to other service users via our website. The Impact and Services Board committee monitors compliance and learning from complaints and compliments.

We published our self-assessment against the Housing Ombudsman Complaints Code. In 2023/24, we received 56 complaints (up from 48 in 2022/23). 86% related to our supported housing services. 64% of all complaints were upheld. On two occasions we failed to meet the regulatory requirement to close stage 1 complaints within 10 days, but the complainant was kept informed of the reasons. Trustee Maggie Gairdner was appointed the Complaints Lead.

7

Safeguarding

The Board is aware of its responsibilities in ensuring that all children and young people accessing our services do so in a safe way. Our Impact and Services Board committee provides oversight of safeguarding and receives quarterly and annual reports.

There were 2,725 safeguarding concerns raised last year, compared to 2,709 in 2022/23. Most concerns were raised for a small proportion of residents in our supported housing who presented with complex and high-risk situations. Over half were raised in just six of our services. One of these services, St Patrick’s adult homeless hostel in Hove, raised 150 concerns but has since closed following our decision to focus our work on children and young people up to the age of 25 years. We recorded one critical incident in 2023/24 which was a young person living in our supported accommodation in West Sussex who died by suicide whilst visiting a family member.

In 2023, as part of a wider restructure of our Central Services team, we made some structural changes to our specialist safeguarding team and have continued to invest in staff training. In February 2024, trustees requested we commission an independent audit of our internal safeguarding arrangements. The audit report was received by the Impact and Services Board committee in July 2024.

Information security and technology

The Board is aware of its responsibilities to ensure information security and the organisation continues to promote good and appropriate collection and use of data and information.

We are registered with the Information Commissioner’s Office (ICO) and comply with the Data Protection Act 2018. In 2023/24 we had three reportable data breaches to the ICO. In all cases we identified relevant learning and improvements needed. We received no formal reprimands, but advice on how to prevent further breaches. We continue to retain a nominated Data Protection Officer to aid our compliance and provide assurance in this area.

During the year we prioritised £200k investment for a new central firewall to better secure our networks complemented with an overhaul of infrastructure. Investment has also continued in replacement of end user devices, notably laptops and mobile phones, ensuring our equipment adheres to the latest security capabilities. Within this financial year two significant digital platforms were replaced, our human resources and finance software systems. The completion of these two transformation projects has improved our digital capabilities and will allow us to further develop in a cost-effective and more efficient way.

Homes England

We continue to be qualified as an Investment Partner with Homes England for the Affordable Homes Programme (AHP) 2021-26.

Health and safety

The Board of Trustees is aware of its responsibilities on all matters relating to health and safety. Alongside a detailed policy and training, the Board of Trustees monitors compliance through quarterly reporting to the Audit and Risk Board committee, from which significant exceptions are escalated to the full Board of Trustees.

We ensure that we meet our legal obligations by undertaking routine risk assessments of our ‘big six’ categories, namely fire safety, water hygiene, gas, electrical, LOLER (lifting operations and lifting equipment regulations), asbestos, as well as damp and mould.

8

As of end of March 2024, our overall compliance was as follows:

Overall compliance Our responsibility (%) Landlord responsibility (%)
Gas 100 92
Fire risk assessments 97 N/A
Legionella 94 100
Asbestos 100 80
Electric conditions 100 95
PAT 99 N/A
Fire alarms 100 63
EmergencyLighting 100 88
Average compliance 99 86

In addition to undertaking the necessary risk assessments, surveys and inspections, in line with current legislation we monitor associated remedial actions and ensure these are reported weekly to the Head of Asset Management and Director of Services and quarterly to our Audit and Risk Board committee and the main Board.

Statement on investment powers

The trustees confirm that the investments made by the charity are made in accordance with the trustees’ powers as provided in the Articles of Association.

Pension scheme

We recognise the risks associated with our participation in the defined benefits scheme run on behalf of YMCA England and Wales by an independent Board of Trustees with representation through the Principal Employer, the National Council of YMCAs. An actuarial valuation is obtained every three years and implications to our finance are considered at that time. The most recent valuation completed was on 1 May 2023 showing the actuarial value of the assets represented 92% of the benefits accrued to members. The liability in our accounts has reduced to £227k.

The scheme has been closed to new members since 2007 and the link to final salary ceased in 2011. We continue to make additional contributions to reduce the deficit. With this latest valuation, the annual payment and the period over which we expect to contribute have reduced. Note 19 in the accounts provides further details.

9

3 Achievements and performance 2023/24 and annual plan 2024/25

Key decisions taken by the Board during 2023/24 include:

Progress against our strategy 2023-26

1 Deliver
psychologically
informed services		  7,146 people reached through our services (down from 8,239 in 22/23).
The reduction is due to contractions in commissioned services and
closures of others.
 56 complaints received (up from 48 in 22/23). 86% about our supported
housing services; 64% of all complaints were upheld.
 2,725 safeguarding concerns (a slight increase from 2,709 in 22/23) with
an equal balance between housing services (650 residents) and
therapeutic and advice services (6,500 clients).
 35 incidents reported (down by 16% from 22/23). Around 30% occurred
in St Patrick’s adult hostel, which closed on 31 March 2024.
2 Amplify youth
voice and
leadership		  Overall, 73% of our residents told us that, taking everything into account,
they were satisfied with the service we provided.
 Our Youth Council (residents in our supported housing) met four times in
23/24, including a session with our Board of Trustees in March 2024.
 Our vibrant network of Wellbeing Youth Ambassadors, aged 11-25,
continued to share their voice to promote youth mental health.
 Our new Youth Researchers are building evidence to address mental
health concerns among young people in Brighton & Hove.
3 Be a great place
to work		  22.3% voluntary turnover (up from 15.6% in 22/23).
 We continue to survey staff using the Great Place to Work©platform
allowingus the opportunityto benchmark against other organisations.

10

Annual Plan 2024/25

We have developed an Annual Plan to guide the second year of the implementation of our strategy for 2023-26.

The plan identifies actions in line with our three strategic priorities:

The annual plan was approved by the Board of Trustees in April 2024.

11

4 Financial review

We realised our goal to end financial year 2023/24 with a planned deficit of £608k

Summary

Income and expenditure summary 2023-24
£’000		 2022-23
£’000		 Movement (%)
Income 18,238 16,727 9
Operatingcosts (18,891) (17,867) (6)
Underlying operating deficit (653) (1,140) 43
Pension revaluation / rebasing 217 - 100
**Disposal of The Bridge ** - (2,118) 100
Operating deficit (436) (3,258) 87
Net interest and unrealisedgain on investments (172) (136) (26)
Deficit for theyear (608) (3,394) 82

Income

Our income of £18,238k increased by 9% (2023 - £16,727k). Most of the income growth is within our social housing lettings, with an 8% growth. This is in line with the Consumer Price Index (CPI) measure of inflation that forms part of the allowable rental inflation in line with the Rent Standard issued by the Regulator of Social Housing.

Expenses

Our operating costs increased by 6% to £18,891k (2023 - £17,867k). The increase in utility costs continued to impact the first six months of the year after which we benefited by an improved renewal of our energy contracts. In line with our pay policy, we conducted our annual salary benchmarking exercise using external consultancy, Croner, and a cost of living pay increase of 4% was awarded in April 2023. This equated to an increase in salary costs of £639k in financial year 2023/24.

Reserves and liquidity

The charity has accumulated reserves of £5,753k including restricted reserves of £87k. Most of the reserves are invested in property to meet our strategic objective to provide a safe home to young people with multiple and complex needs. As a registered social housing provider, as well as a charity, our financial viability is managed by means of a rolling five-year business plan, which considers cash flows, borrowings, bank covenant compliance and the repairs and maintenance of our existing properties, together with the acquisition and development of new projects. With the current external financial situation, business planning has taken on an even greater importance as we model and assess different proposals to ensure the financial viability of the charity during these unprecedented times.

The free reserves within the organisation have reduced to £313k because of our planned deficit. The trustees have set a target to increase free reserves to £2,000k that we will continue to work towards. Free reserves represent unrestricted funds less the pension reserve and amount invested in property, net of grants and loans from The Rosaz Charity. As a part of our financial sustainability programme, 2023/24 concluded with £700k of savings from staff costs following a reorganisation that has contributed to a break-even budget for 2024/25. The process to return the charity to creating operating surpluses will continue and over time contribute to achieving the free reserves target.

12

The charity has a cash management policy to hold a minimum of £1,500k in cash. At the end of the financial year the charity had cash of £2,172k. We have a £850k loan from The Rosaz Charity repayable no earlier than September 2044. In addition, we have an accessible credit facility of £2,500k with Charity Bank with the ability to draw down and pay back funds at short notice. During the financial year we did not draw any funds from this facility.

Value for money

The most significant value for money exercise completed in 2023/24 was assessing different organisational models and this has concluded in a new staffing structure that was implemented by April 2024. The financial year also saw the completion of a new asset management strategy. This strategy, approved by the Board of Trustees, gives a refreshed view on all owned, leased and managed properties for future decisions including expenditure required to maintain quality.

Digital transformation has also been a focus with both the human resources and finance software systems being replaced within the financial year. In both cases this has resulted in improved capability, efficiency and enhanced security, all at lower cost.

The management of our electricity and gas costs are an important part of our expense base and we continue working with our utility brokers. Within the financial year electricity prices have been recontracted from October 2023 and gas from April 2024. Both contracts have benefited from improvement in market conditions and extend through to March 2025.

The Regulator of Social Housing has issued its Value for Money Standard including seven metrics. Our performance is shown below:

Metric Description 2023/24 2022/23
1 Reinvestment 0.6% 0.5%
2 New supply delivered 0% 0%
3 Gearing 0% 0%
4 EBITDA MRI interest cover (27%) (453%)
5 Headline social housing cost per unit £20,292 £18,632
6a Operating margin, housing (0.8%) (4.8%)
6b Operating margin, overall (2.3%) (6.8%)
7 Return on capital employed (2.0%) (5.1%)

13

Going concern

The Board of Trustees has completed an assessment of our financial position including the cash flow position for the next two financial years, 2024/25 and 2025/26. The trustees believe that we can manage our financial forecasts, cash flow, financial sensitivity and manage our business risks to continue operating on a going concern basis. We have reached this conclusion in consideration of the following points:

14

5 Energy and carbon report

We are committed to reducing our carbon footprint and have an Environment Policy in support of this work.

For Streamlined Energy and Carbon Reporting (SECR) compliance, we are considered a large company as we have more than 250 employees, balance sheet assets of more than £18m and an energy consumption in the UK above 40,000kWh. As such we are required to report:

The footprint is calculated in accordance with the Greenhouse Gas (GHG) Protocol and Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance. Emissions are defined under three different scopes by the GHG Protocol:

The activity data has been converted into greenhouse gas emissions using the UK Government GHG Conversion Factors for Company Reporting.

Intensity ratios

Intensity ratios compare emissions data with an appropriate business metric or financial indicator. This allows comparison of energy efficiency performance over time and with other similar types of organisations. As most of our gas and electricity usage is within our residential properties, we are reporting kWh of gas and electricity per unit. The intensity ratios for transport fuel and staff mileage are based on a full time equivalent per head rate.

Energy efficiency action

Examples of activity include:

15

Emissions performance

Direct emissions Direct emissions Energy
indirect		 Other
indirect		 Total
Gas
(Scope 1)		 Fuel for
transport
(Scope 1)		 Electricity
(Scope 2)		 Business
travel (Scope
3)
Current year
2023/24		 Energy consumption – kWh 2,846,988 153,272 1,340,279 116,351 4,456,890
Greenhouse gas emissions –
tonnes of carbon dioxide		 520 36 278 28 862
Intensity ratio kWh per
unit/resident		 6,335 0 2,020 0 0
Intensity ratio kWh per FTE
employee		 0 523 0 397 0
Prior year 2022/23 Energy consumption – kWh 2,867,313 122,992 1,424,699 111,916 4,526,920
Greenhouse gas emissions –
tonnes of carbon dioxide		 523 29 276 28 856
Intensity ratio kWh per
unit/resident		 6,081 0 2,280 0 0
Intensity ratio kWh per FTE
employee		 0 424 0 386 0
Change Energy consumption – kWh (1%) 25% (6%) 4% (2%)
Greenhouse gas emissions –
tonnes of carbon dioxide		 (1%) 24% 1% 1% 1%
Intensity ratio kWh per
unit/resident		 4% 0% (11%) 0% 0%
Intensity ratio kWh per FTE
employee		 0% 23% 0% 3% 0%

16

6 Risk management

We have a well-developed approach to strategic risk management and our organisational risk register details the top eight material risks and mitigations.

The Executive team discuss the register monthly and each Board committee receives quarterly reports on relevant risks related to their remit. They each report to the Audit and Risk Board committee and the main Board.

Once a year, the Board reviews the organisation’s risk appetite in order to reassess target risk levels.

Below are the eight risks appearing on the organisational risk register and their mitigation.

Risk Description Mitigation
Safeguarding
failure		 Failure to deliver effective
children and young people's
services to fulfil statutory
obligations in safeguarding
and protect those at risk of
significant harm or death.		  Central safeguarding function redesigned to support
practice.
 Independent safeguarding audit commissioned.
Safeguarding policies updated.
 Comprehensive staff training on safeguarding
management, trauma informed practice and suicide
prevention.
Thresholds in place for counselling and therapeutic
services.
Organisational
culture		 Failure to foster a culture of
‘critical thinking’ and
commitment to learning
aligned to values due to
poor psychological safety
and lack of accountability.		  Approved People Strategy 2023 to 2026.
 Development of new values and behaviours to be
delivered by December 2024.
 Development activity for extended leadership team.
 Newly structured senior meetings, new Terms of
Reference and ways of working.
 Manager Forum continues, enhanced management
training under way.
Recruitment and
retention		 Inability to deliver contracts
due to challenges attracting
and retaining suitably
qualified and experienced
staff; critical skills shortage,
challenges around pay.		  'Deep dive' report for People and Remuneration Board
committee to provide assurance.
 Safer Recruitment Policy and training updated.
 Housing services workforce plan developed.
 Induction and onboarding audit.
 2024/25 salary benchmarking implemented by April
2024.
The recycled
capital grant
scheme (RCGF)		 Failure to reinvest the
£3,500k RCGF originating
from June 2022. Current
balance of £3,000k. Failure
to have an agreement with
Homes England on
deployment.		  £500k deployed July 2024 on Brighton asset purchase.
£1,600k of deployment agreed with Homes England on
potential acquisition of Sussex properties expected to
conclude by December 2024.
Security and
certification of
information,
communications
and technology
(ICT)		 Security and certification of
ICT.		  Significant progress in networking, firewalling and core
hardware replenishment.
 Foyer buildings completed with live new firewall.
 Microsoft security score at 75%.
 Penetration and vulnerability scanning now live and
tested quarterly.

17

Risk Description Mitigation
Financial
sustainability		 Financial sustainability of
the organisation.		  2024/25 budget approved at break-even.
 Multi-year financial planning in place, including
associated cash flow related to deployment of Homes
England RCGF.
 Financial principles agreed including commitment to
move towards a £2,000k free reserves target.
Non-compliance
with regulations
and legislation		 Non-compliance with and/or
changes to regulation,
legislation, quality
standards, codes of
governance, i.e. Charity
Commission, Charities Act,
Ofsted and NHF standards.		  More awareness raising and training for Extended
Leadership team and managers in services.
 Plan for cascading information and ensure all areas of
the organisation are up to date with regulations –
Regulator of Social Housing, Ofsted, building safety,
health and safety.
Organisational
transformation		 Pace of change does not
allow new structure and
ways of working to embed.
Staff not retained due to too
much change and/or poorly
managed or communicated.
Change in resources and
continuous change could
cause detrimental effect on
the health and wellbeing of
our staff and even burnout,
and/or lead to resistance to
change. Risk of not being
transformative enough.		  New Extended Leadership team structure in place and
updated ways to manage decisions effectively.
 Increase effectiveness of Extended Leadership team and
Managers’ Forum to support transformation.
 Clear prioritisation of change shared through Annual
Plan 2024/25.
 Internal communications increased to embed
transformation.
 Project management resource increasing to support key
change projects.

Over this financial year, we also took the opportunity to develop our assurance framework. We undertook a significant review of our Business Continuity, making provision for unforeseen incidents that could occur. The extensive review has concluded in a refresh of all our plans and now also includes elements that enabled us to achieve our Ofsted registration.

18

7 Fundraising

Our fundraising approach is to support the generation of unrestricted funding to complement our contract and commercial income streams. We also generate restricted fundraising income to support projects and services to advance our mission, mainly from philanthropic trusts and foundations.

We are registered with The Fundraising Regulator and have adopted and abide by the Code of Fundraising Practice, which ensures we have a strong fundraising framework and practice.

We are compliant with the Data Protection Act 2018 in all our fundraising activity; for example, we always record consent from donors and supporters and always offer the option to opt out of receiving emails.

Our campaigns and marketing work is based around public relations and social media, as opposed to postal or telephone campaigns; people have already opted in to receive information from us.

This year we received no complaints about our fundraising or marketing campaigns.

Funders and supporters

BBC Children in Need Garfield Weston Golders Green Foundation Goodnews Evangelical Mission (GEM) Hyde Charitable Trust Nationwide Foundation OptiGene Foundation PE Lennard Trust The Albert Hunt Trust The Blagrave Trust The Gledswood Charitable Trust The Ludlow Trust The Pebble Trust The Rosaz Charity The Three Oaks Trust Ufi VocTech Trust

Audio Note Burt Brill & Cardens Solicitors Bupa Dynamo Mortgages Kier Group Mayday Group Mott MacDonald Oban International Service Master Clean Waitrose

The trustees are grateful to all the organisations that have so generously supported us in 2023-2024.

19

8 Governance

Governance framework

We are governed by our Articles of Association which provide our constitutional framework. These were updated in April 2024 to reflect the YMCA England and Wales model articles. They are available for inspection on the Companies House website or from the Company Secretary.

We have adopted the National Housing Federation’s Code of Governance (2015) and in doing so meet the Charity Commission’s requirement for a Code of Governance. The Board reviews its compliance with this Code annually and confirms that we are compliant with it.

We are registered with the Charity Commission of England and Wales (1079570), a company limited by guarantee and incorporated in England and Wales (03853734), a registered provider of social housing (4644) and an accredited service with the British Association of Counselling Professionals ( 00102752 ).

We comply with the Companies (Miscellaneous Reporting) Regulations 2018 regarding the requirements of section 172 (10) of the Companies Act 2006; it applies because we have more than 250 employees.

We are affiliated, via a membership agreement, to the National Council of YMCAs for England and Wales (known as YMCA England and Wales) and, through them, to the YMCA World Council.

Structure

The Board of Trustees is the central decision-making body of the company and comprises 10 trustees at the time of signing. The Board met on six occasions last year. This includes two strategic away days. Trustees also undertook site visits and engagement with children and young people. In addition to the six formal meetings of the Board, trustees participated in specialist Board training programmes across the financial year delivered by experts in a variety of fields.

We expanded our effectiveness by deploying a new board committee structure to gain further assurance and access specialist skills. There are four sub-committees of the Board, including a new Impact and Services committee which met for the first time in May 2023.

----- Start of picture text -----
Board of Trustees
Impact and People and
Audit and Risk Resources
Services Remuneration
committee committee
committee committee
----- End of picture text -----

These Board committees are made up of trustees and independent members who have specialist skills. The committees have defined terms of reference and a responsibility to report to the Board through a formal report. All comply with necessary regulations and reporting requirements set out by the Charity Commission.

20

After four years of service Michael Gercke stood down as trustee and member of the Resources Board committee and trustees would like to record their appreciation to him for his service. Trustees also wish to extend their deepest sympathy to the family of Andrew Taylor, former trustee, who recently passed away. Andrew was a generous trustee who will be missed; he shared nearly 30 years’ experience in housing, working with local authorities, housing associations and tenant-led organisations to the benefit of our work.

During the year we recruited three new trustees and two independent committee members. All successful candidates are subject to our safer recruitment checks and receive induction training covering governance, finance, risk and safeguarding along with a briefing on our service delivery activity. Trustee and committee member engagement remains strong with an attendance rate of 91% over the year. Executive team members are invited to attend all Board meetings. Each Executive team member is responsible for one or more committee and liaises with the respective Trustee Chair. Heads of Services are also invited to attend committee and Board meetings where required.

Governance strategy and Board effectiveness

During the year, the Board continued to develop the charity’s governance arrangements. These included:

Statement of Trustees’ responsibilities

As trustees, we are also directors of YMCA DownsLink Group for the purposes of company law. We are responsible for preparing this Annual Report and the Financial Statements; this is in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (UK GAAP), including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Company law requires us to prepare financial statements for each financial year that give a true and fair view of the situation 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, we are required to:

We are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable us to ensure that the financial statements comply with the Companies Act 2006. We 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.

21

Statement of internal controls

The trustees are responsible for ensuring that the charity has in place a system of internal controls and procedures that are appropriate to the various business environments in which it operates. These controls are designed to give reasonable assurance with respect to:

The Board has overall responsibility for establishing and maintaining the system and for reviewing their effectiveness, including:

Compliance with Regulator of Social Housing

In the last financial year, we reported an investigation on our social rent setting relative to the Rents Standard issued by the Regulator of Social Housing. For 13 properties and 250 units we were unable to find historic valuation evidence that substantiated core rents charged. After commissioning new valuations, £261k of provision was included in last year’s accounts from which to pay back local authorities for overcharged rents. We agreed no historical action for any undercharged rents. In working with the Regulator of Social Housing we have had our action plans agreed with no further follow up. We are in discussions with all eight of the local authorities who are due funds. 30% of the total provision in value has been repaid and we continue to provide the local authorities with the detailed tenant information they require to reimburse the remaining 70%.

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

22

Statement as to disclosure of information to auditors

As far as we are aware, there is no relevant audit information (as identified by section 418 of the Companies Act 2006) of which the charity’s auditors are unaware.

Each trustee has taken all the steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

Auditors

A resolution to reappoint auditors Haysmacintyre LLP will be proposed at the forthcoming Annual General Meeting.

Fran Beckett

Chair of the Board of Trustees

26 September 2024

23

9 Independent auditors’ report

Opinion

We have audited the financial statements of YMCA DownsLink Group for the year ended 31 March 2024, which comprise the consolidated and company statements of comprehensive income, the consolidated and company balance sheets, the consolidated statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102; The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included on pages 3 to 23. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

24

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

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Board, the Operating and Financial Review or the Strategic Report.

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

Trustees’ responsibilities for the financial statements

As explained more fully in the Statement of Responsibilities of the Trustee Board set out on page 21, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

25

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error and to issue an auditors’ 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 based on these financial statements.

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

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the regulation of registered charities and registered providers of social housing and Health and Safety regulation. We considered the extent to which non-compliance might have a material effect on the financial statements and those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006, the Charities Act 2011 and the Housing and Regeneration Act 2008, as well as other factors such as tax compliance.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to areas of estimation uncertainty and manual accounting journals. Audit procedures performed by the engagement team included:

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 misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 auditors’ report.

26

Use of our report

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

Adam Halsey (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor

26 September 2024

10 Queen Street Place London EC4R 1AG

27

10 Financial accounts and statements

Consolidated Statement of Comprehensive Income for Year Ended 31 March 2024

Notes Social Housing Trading Charitable 2024 2023
Activities Activities Activities and Total Total
Other Income
£ £ £ £ £
Turnover from continuing operations
Social housing lettings 2 13,806,369 - - 13,806,369 12,667,218
Trading activities 10 - 29,493 - 29,493 34,409
Charitable activities and other
income		 4 - - 4,619,509 4,619,509 4,026,002
13,806,369 29,493 4,619,509 18,455,371 16,727,629
Operating costs
Social housing lettings 3 (13,921,239) - - (13,921,239) (13,271,369)
Trading activities 10 - (27,416) - (27,416) (33,656)
Charitable activities and
other costs		 5 - - (4,942,312) (4,942,312) (4,562,029)
(13,921,239) (27,416) (4,942,312) (18,890,967) (17,867,054)
Operating (deficit)/ surplus (114,870) 2,077 (322,803) (435,596) (1,139,425)
Interest receivable and other income 77,974 - 1,388 79,362 40,690
Interest payable and similar charges Interest payable and similar charges (251,407) - - (251,407) (173,574)
Unrealised gain on investments - - (231) (231) (2,864)
Asset disposal - - - - (2,118,378)
(Deficit)/ Surplus on ordinary
activities		 (288,303) 2,077 (321,646) (607,872) (3,393,551)
Net movement in funds (288,303) 2,077 (321,646) (607,872) (3,393,551)

The consolidated income and expenditure of the charity and its subsidiary relate wholly to continuing operations. These financial statements were approved and authorised for issue by the directors on 1 August 2024 and signed on their behalf by:

Fran Beckett 26 September 2024

Nick Mourant 26 September 2024

The notes set out on pages 31 to 43 form part of these financial statements

28

Consolidated Statement of Financial Position as at 31 March 2024

Registered number: 3853734

2024 2023
Notes Group Charity Group Charity
£ £ £ £
FIXED ASSETS
Social housing properties 9 19,516,884 19,516,884 19,746,483 19,746,483
Other properties 9 440,639 440,639 448,736 448,736
Other tangible assets 9 441,151 441,151 340,377 340,377
20,398,674 20,398,674 20,535,596 20,535,596
Investment in subsidiary 10 - 2 - 2
20,398,674 20,398,676 20,535,596 20,535,598
CURRENT ASSETS
Debtors 12 1,490,109 1,490,109 1,520,611 1,522,368
Investments 11 32,365 32,365 32,596 32,596
Cash at bank and in hand 2,171,937 2,160,328 3,462,439 3,449,927
3,694,411 3,682,802 5,015,646 5,004,891
CREDITORS
Amounts falling due within one year 13 (2,752,997) (2,753,467) (3,018,768) (3,018,768) (3,018,768)
NET CURRENT ASSETS 941,414 929,335 1,996,878 1,986,123
TOTAL ASSETS LESS CURRENT LIABILITIES TOTAL ASSETS LESS CURRENT LIABILITIES 21,340,088 21,328,011 22,532,474 22,521,721
CREDITORS
Amounts falling due after one year 14 (15,587,451) (15,587,451) (16,171,965) (16,171,965) (16,171,965)
NET ASSETS 5,752,637 5,740,560 6,360,509 6,349,756
FUNDS
Unrestricted funds 16 5,665,196 5,653,119 6,191,237 6,180,484
Restricted funds 15 87,441 87,441 169,272 169,272
5,752,637 5,740,560 6,360,509 6,349,756

These financial statements were approved and authorised for issue by the directors on 1 August 2024 and signed on their behalf by:

Fran Beckett 26 September 2024

Nick Mourant 26 September 2024

The notes set out on pages 31 to 43 form part of these financial statements

29

Consolidated Statement of Cash Flows for Year Ended 31 March 2024

2024
Notes
£
£
Cash flow from operating activities
Deficit for the year
(607,872)
Adjustments for non-cash items:
Depreciation
8
528,305
Decrease in debtors
30,502
Decrease in creditors
(850,286)
Reinstated Homes England grant
-
Deficit / (Gain) on disposal of property
6,004
Deficit on disposal of other assets
2,332
Unrealised investment loss
231
Interest payable
251,407
Interest receivable
(79,362)
(110,867)
Net cash outflow from operating activities
(718,739)
Cash flow from investing activities:
Purchase of tangible fixed assets
9
(400,133)
Sale of tangible fixed assets
415
Interest received
79,362
(320,356)
Cash flow from financing activities:
Loan interest paid
(251,407)
Repayment of loan
-
(251,407)
(Decrease) / increase in cash in the year
(1,290,502)
Net cash funds at beginning of year
3,462,439
Net cash funds at end of the year
2,171,937
Reconciliation of net cash flow to movement in (net debt)/net funds
1 Apr 2023
Cash flows
Cash
3,462,439
(1,290,502)
Debt due within one year
-
-
Debt due after one year
(850,000)
-
2,612,439
(1,290,502)		 2023
£
528,015
92,970
(411,448)
3,279,676
(1,334,694)
-
2,864
173,574
(40,690)
(315,402)
4,125,000
40,690
(173,574)
(2,335,468)
Non cash changes
-
-
-
-		 £
(3,393,551)
2,290,267
(1,103,284)
3,850,288
(2,509,042)
237,962
3,224,477
3,462,439
31 Mar 2024
2,171,937
-
(850,000)
1,321,937

The notes set out on pages 31 to 43 form part of these financial statements

30

11 Notes to the financial statements for year ended 31 March 2024

1. ACCOUNTING POLICIES

a) Status

YMCA DownsLink Group (YMCA DLG) Limited is incorporated under the Companies Act 2006 and registered with Companies House in England and Wales under number 3853734. Its registered office is Reed House, 47 Church Road, Hove, East Sussex BN3 2BE. It is also registered as a charity with the Charity Commission in England and Wales, number 1079570 and as a Registered Provider of Social Housing with the Homes and Communities Agency in England, number 4644.

The charity meets the definition of a public benefit entity under Financial Reporting Standard 102 applicable in the UK and Republic of Ireland (FRS 102).

Basis of Preparation

The financial statements of the group and association are prepared in accordance with applicable legislation UK Generally Accepted Accounting Practice (UK GAAP) including FRS 102 and the Housing Statement of Recommended Practice 2014 (SORP): for Registered Social Housing Providers and comply with the Accounting Direction for Private Registered Providers of Social Housing 2015. A separate SORP for charities also exists. However, the RSHP SORP takes precedence over the Charities SORP as the former represents the more specialised guidance, but the trustees may have regard to the Charities SORP where its recommendations are not contrary to the Housing SORP.

Basis of Accounting

Assets and liabilities are initially recognised at historical cost or transaction values unless otherwise stated in the relevant accounting policy notes. Those assets measured at fair value are remeasured at each balance sheet date.

The main areas of estimation and judgement affecting the accounts:

Depreciation

Assets are depreciated over their expected useful economic lives as set out in note 1(h). These lives have been determined with reference to both internal experience and external comparisons but will be kept under review in future periods. It may be necessary to lengthen or shorten these lives depending on further actual experience.

Accrual for deficit contribution to the defined benefit pension scheme

As set out in note 1(g) a liability is recognised in respect of the present value of the expected future contributions to alleviate the pension deficit arising from past service. The liability recognised is affected by the discount rate applied and the undiscounted underlying liability will also vary depending on the results of the triennial actuarial valuation of the pension scheme. The triennial valuation was completed as at 1 May 2023 and the resulting changes to the schedule of contributions are included in YMCA DLG’s financial statements for the year ended 31 March 2024.

Provisions

Full provision is made for the value of all personal debts relating to former residents in YMCA DLG’s accommodation projects. It is possible that some of these amounts may be recovered or that amounts related to current residents and currently unprovided may prove to be irrecoverable.

Provisions are made for other items where is it considered probable that a liability has arisen and these are quantified based on the best available information. Such provisions are updated as more and better data become available.

In the opinion of the trustees none of the above items are likely to be subject to material estimation uncertainty but the largest area of uncertainly relates to the pension deficit contributions.

No complex financial instruments are held.

YMCA DLG is required by the Companies Act 2006 to prepare group accounts. The results, assets and liabilities of the subsidiary company YMCA DLG Services Limited is included on a line by line basis.

Basis of Consolidation

The consolidated financial statements present the results of YMCA DLG registered provider of social housing and its subsidiary YMCA DownsLink Group Services Ltd as if they formed a single entity. All financial statements are made up to 31 March 2024.

The charity has taken advantage of the exemption under Section 408 of the Companies Act 2006 from presenting its own statement of comprehensive income. The deficit of the charity for the financial year was £609,949 (2023: deficit of £3,394,304)

Going Concern

Following an assessment of our financial position, the resources available going forwards and the cash flow position for the next 12 months to August 2025, the trustees believe the organisation can manage organisational risks and the forecasting of financials, concluding to a reasonable expectation that YMCA DLG has adequate resources to continue operating for the foreseeable future. Trustees have concluded that material uncertainty does not exist and continue to adopt the going concern basis in the financial statements.

31

b) Turnover

Turnover represents trading income, rent and service charges income receivable in the year net of rent and service charge losses from voids, revenue grants, including those from local authorities and Homes England, contracts and charitable receipts, all net of VAT.

c) Supporting People Contract

The charity receives funding from Supporting People which is accounted for on an accruals basis, matching income and expenditure and disclosures are made in accordance with the relevant standards and legislation.

d) Donations and Grants

Donations and grants other than Social Housing Grant are included when the criteria of entitlement, probability and measurability have been met. The associated Gift Aid tax recoverable is recognised on receipt.

Social Housing Grants (SHG) are recognised on the balance sheet as a liability and amortised over the life of the assets funded (accrual model) with the exception of SHGs related to those assets that were revalued at their deemed cost at 1 April 2015 where the grant was recognised in full as an addition to reserves (performance model).

e) Investment Income

Investments are included in the financial statements at market value.

f) Empty Homes

The grant income is included on completion of the building work. If there are no associated development costs, a proportion of the grant income is released over the term of the lease and the balance on signing the lease.

g) Pension Costs

YMCA DLG 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 DLG.

As described in note 19, YMCA DLG has a contractual obligation to make pension deficit payments over the period to April 2029. Accordingly, the present value of the liability is shown in note 19 to these accounts.

In addition, YMCA DLG is required to contribute £23,355 p.a. (2023: £21,578 p.a.) to the operating expenses of the pension plan and these costs are charged to the Statement of Comprehensive Income as made.

h) Fixed Assets

i) Housing Properties

Definition and Recognition

Housing properties are properties held for the provision of social housing or to otherwise provide social benefit.

Housing properties are principally properties available for rent and are stated at cost with the exception of those properties revalued at a deemed cost on adoption of FRS 102.

Depreciation:

The major components of the properties are identified and depreciation is charged to write off the cost of each component over their expected useful economic lives.

Depreciation is charged on a straight-line basis over the following number of years:

Structure 50-100 Wiring, lift and heating systems 10-30
Pitched roof 50-75 Bathrooms 5-25
Flat roof, windows, external doors 25-30 Kitchens 20

32

ii) Other Fixed Assets

Cost:

Individual fixed assets costing £1,000 or more and are of a capital nature for ongoing use by YMCA DLG are capitalised.

Depreciation:

Other fixed assets are depreciated to write off each asset over its estimated useful life at the following annual rates:

Freehold land Not depreciated Motor vehicles 25% on reducing balance basis Fixtures, fittings and equipment 10–25% on cost ICT equipment 25% on cost Cycles 100% on cost

i) Volunteers

The value of services provided by volunteers is not incorporated into these financial statements. Further details of the contribution made by volunteers can be found in the trustees’ Annual Report.

j) Irrecoverable VAT

The financial statements include VAT to the extent that it is not recoverable from HM Revenue and Customs. Irrecoverable VAT is charged directly with the related cost where possible or apportioned as part of central costs.

k) Operating Leases

The charity classifies the lease of printing, photocopy, laundry and catering equipment as operating leases. The title of the equipment remains with the lessor and the equipment is replaced every three to five years whilst the economic life of such equipment is normally in excess of this. Rental charges are charged on a straight line basis over the term of the lease.

l) Commitments

Commitments which are legally binding are included as liabilities.

m) Taxation

The charity is exempt from tax on income and gains falling within Sections 466 to 493 of the Corporation Tax Act 2010 to the extent that these are applied to its charitable objects.

n) Funds and Reserves

The charity has various types of funds for which it is responsible and require separate disclosure:

Unrestricted Reserves

Unrestricted reserves are reserves which are expendable at the discretion of the trustees in the furtherance of the objects of the charity.

Restricted Reserves

Restricted reserves are funds which are expendable as directed by the donor.

Revaluation Reserves

Revaluation reserves arise when investments are revalued.

33

2. TURNOVER FROM HOUSING ACTIVITIES

3.

4.

Rent and Service charges:
Rent receivable
Service charge receivable
Personal service charge receivable
Amortised government grant

Other revenue:
Supporting people
OLAC, leaving care and step down service
Homes England grant income
More than a room activity
Fundraising income
Other social housing income
Pension revaluation
Rent and service charge losses from voids
OPERATING COSTS FROM HOUSING ACTIVITIES
Housing accommodation – number of units
Managed housing – number of units included in above total
Housing services
Housing support
More than a room project
Share of central overheads
Repairs and maintenance
Rent losses from bad debts and provision
Depreciation of housing properties
Depreciation of equipment, fixtures and fittings, motor vehicles
TURNOVER FROM CHARITABLE ACTIVITIES AND OTHER INCOME
Therapeutic services
Support services: children, young people and families
Horsham YMCA Football Club
Fundraising income
Pension revaluation
Other income		 2024
£
3,365,145
6,300,675
291,665
122,577
10,080,062
2,189,346
950,185
299,074
6,360
62,604
54,079
164,659
13,806,369
(513,991)
2024
654
104
£
7,473,642
2,461,472
98,680
2,022,116
1,205,444
161,082
345,783
153,020
13,921,239
2024
£
2,935,890
1,071,961
64,279
494,177
52,784
418
4,619,509		 2023
£
3,067,437
5,513,269
263,225
122,578
8,966,509
2,036,274
1,018,894
375,546
43,318
105,015
109,394
12,268
12,667,218
(546,236)
2023
672
108
£
6,813,240
2,292,260
187,905
2,290,849
1,061,449
126,245
359,506
139,915
13,271,369
2023
£
2,571,115
936,366
49,404
398,583
3,874
66,660
4,026,002

34

5. OPERATING COSTS - CHARITABLE ACTIVITIES AND OTHER COSTS

Therapeutic services
Support services: children, young people and families
Horsham YMCA Football Club
Passport to Independence and other costs
Depreciation		 2024
£
3,164,777
1,562,862
75,229
109,942
29,502
4,942,312		 2023
£
2,855,359
1,257,234
84,233
336,609
28,594
4,562,029

6. STAFF COSTS

Salaries and wages
Social security
Pension costs
Apprentice tax
Life assurance
Healthcare
Redundancy and compensation
Agency costs
The average number of employees paid during the year was:
Full time and part time employees
Full time equivalent
The number of staff receiving remuneration in excess of £60,000:
£60,000 – £69,999
£70,000 – £79,999
£80,000 – £89,999		 2024
£
9,029,251
826,476
303,611
30,383
23,824
37,241
112,804
1,584,974
11,948,564
365
293
3
3
2		 2023
£
8,450,243
785,963
287,230
27,439
29,730
35,852
50,195
1,429,764
11,096,416
362
290
4
3
1

7. EMOLUMENTS OF DIRECTORS AND LEADERSHIP TEAM

None of the directors received any remuneration in the current or prior year. One director received reimbursed expenses of £28 (2023: £43). The charity has directors’ and officers’ liability insurance in place.

The aggregate emoluments of the Executive team were £565,775 for 5.3 full time equivalent staff (FTE), (2023: £606,402 for 5.8 FTE). The remuneration of the Chief Executive comprised salary of £72,051, employer National Insurance of £9,002 and pension contributions of £5,764 (2023: £87,240, £11,822 and £9,644). The Chief Executive was a member of the current stakeholder pension scheme with no special terms or rights to enhanced benefits.

8. OPERATING SURPLUS

----- Start of picture text -----
|| |---| |The operating surplus is stated after charging:|

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

The operating surplus is stated after charging: 2024 2023
£ £
Losses from bad debts 163,300 126,875
Operating leases
– equipment		 21,753 19,533
– land and buildings 1,394,324 1,322,951
Deficit on disposal of fixed assets 8,336 8,837
Deficit on disposal of The Bridge - 2,118,378
Depreciation of equipment, fixtures and fittings, motor vehicles 171,284 168,509
Depreciation of properties and components 357,021 359,506
Auditors’ remuneration: external audit 36,195 33,295

35

9. FIXED ASSETS

Cost
1 April 2023
Additions
Disposals
31 March 2024
Depreciation
1 April 2023
Charge for the year
Eliminated on disposal
31 March 2024
Net book amount
31 March 2024
31 March 2023
Properties at cost comprise:
Freeholds
Long leaseholds
Cost of properties
OTHER TANGIBLE FIXED ASSETS		 Social Housing
Properties
£
21,458,505
125,329
(11,000)
21,572,834
1,712,022
348,924
(4,996)
2,055,950
19,516,884
19,746,483		 Other Properties
£
523,147
-
-
523,147
74,411
8,097
-
82,508
440,639
448,736
2024
£
19,002,249
3,093,732
22,095,981		 Total
£
21,981,652
125,329
(11,000)
22,095,981
1,786,433
357,021
(4,996)
2,138,458
19,957,523
20,195,219
2023
£
18,887,920
3,093,732
21,981,652
Cost
1 April 2023
Additions
Disposals
31 March 2024
Depreciation
1 April 2023
Charge for the year
Eliminated on disposals
31 March 2024
Net book amount
31 March 2024
31 March 2023		 Vehicles
£
89,612
3,378
(27,510)
65,480
74,274
5,591
(26,514)
53,351
12,129
15,338		 Fixtures,
Fittings and
Equipment
£
1,001,196
271,426
(232,846)
1,039,776
676,157
165,693
(231,096)
610,754
429,022
325,039		 Total
£
1,090,808
274,804
(260,356)
1,105,256
750,431
171,284
(257,610)
664,105
441,151
340,377

36

10. INVESTMENTS IN SUBSIDIARIES

The wholly owned trading subsidiary, YMCA DLG Services Limited, which is incorporated in England and Wales, pays its profits chargeable to Corporation Tax to the charity by Gift Aid. The charity owns the entire issued share capital of two ordinary shares of £1 each. A summary of the trading results is shown below:

Turnover
Cost of sales and administrative expenses
Net profit		 2024
£
29,493
(27,416)
2,077		 2023
£
34,409
(33,656)
753

11. INVESTMENTS

Blackrock Charinco Common Investment Acc Fund
Blackrock Charinco Common Investment Inc Fund
M & G Charifund		 2024
Market
Value
Cost
£
£
8,010
8,426
2,805
3,664
21,550
24,282
32,365
36,372		 2023
Market Value
Cost
£
£
7,797
8,426
2,848
3,664
21,951
24,282
32,596
36,372		 2023
Market Value
Cost
£
£
7,797
8,426
2,848
3,664
21,951
24,282
32,596
36,372
36,372

12. DEBTORS

Accommodation debtors
Bad debt provision
Trade debtors
Prepayments
Accrued income and other debtors
Amounts owed by subsidiary undertakings		 2024
Group
Charity
£
£
944,853
944,853
(791,383)
(791,383)
593,275
593,275
346,278
346,278
397,086
397,086
-
-
1,490,109
1,490,109		 2023
Group
Charity
£
£
1,001,463
1,001,463
(626,860)
(626,860)
666,728
666,728
174,176
174,176
305,104
305,104
-
1,757
1,520,611
1,522,368		 2023
Group
Charity
£
£
1,001,463
1,001,463
(626,860)
(626,860)
666,728
666,728
174,176
174,176
305,104
305,104
-
1,757
1,520,611
1,522,368
1,522,368

13. CREDITORS FALLING DUE WITHIN ONE YEAR

Deferred income
Other creditors
Trade creditors
Employment taxes and pensions
Pension deficit
Housing grants
Amounts owed to subsidiary undertakings		 2024
Group
Charity
£
£
882,207
882,207
1,029,540
1,029,540
564,380
564,380
72,191
72,191
82,101
82,101
122,578
122,578
-
470
2,752,997
2,753,467		 2023
Group
Charity
£
£
1,049,434
1,049,434
839,933
839,933
659,585
659,585
248,192
248,192
99,046
99,046
122,578
122,578
-
-
3,018,768
3,018,768		 2023
Group
Charity
£
£
1,049,434
1,049,434
839,933
839,933
659,585
659,585
248,192
248,192
99,046
99,046
122,578
122,578
-
-
3,018,768
3,018,768
3,018,768

37

14. CREDITORS FALLING DUE AFTER ONE YEAR

CREDITORS FALLING DUE AFTER ONE YEAR
Loans, not wholly repayable within five years
Deferred income, grants in advance
Dilapidations provision
Defined benefit pension deficit
Housing grants
Loan maturity analysis in more
than five years		 2024
Group
Charity
£
£
850,000
850,000
708,491
708,491
397,738
397,738
144,670
144,670
13,486,552
13,486,552
15,587,451
15,587,451
850,000
850,000
850,000
850,000		 2023
Group
£
850,000
1,015,094
423,038
444,214
13,439,619
16,171,965
850,000
850,000		 Charity
£
850,000
1,015,094
423,038
444,214
13,439,619
16,171,965
850,000
850,000

During the previous financial year, the loan with the Charity Bank was repaid and configured into a revolving credit facility for £2,274,599 for a three-year term as a means to mitigating interest costs when cash is not required. There is a commitment fee of 0.28% per quarter to hold the credit line open for future use.

There are additional loans of £850,000 with The Rosaz Charity with an interest rate of 0.5% over the Bank of England’s base rate. These are repayable no earlier than September 2044 and are unsecured.

38

15. RESTRICTED FUNDS – GROUP AND CHARITY

The following funds have been restricted in their use only for the intended projects.

Description

Fund Name

To fund exceptional requirements for those in supported housing in Guildford Activities or equipment that will benefit the young people of Horsham

Special needs reserve Horsham Y Centre legacy

Youth mental health

Deliver workshops in secondary schools

Provide pastoral care to residents and staff

Chaplaincy Passport to Independence Youth engagement

Development of innovative e-learning platform for young people Delivers open access youth clubs

What is sexual exploitation? (WiSE?) Support children and young people to stay safe in their relationships Youth advice centres

Advice, support and guidance to young people

An early and effective mentoring initiative that matches trained volunteer mentors with female identifying young people to support them to overcome challenges and achieve their fullest potential in life

Girls’ mentoring programme

Housing fund Provide resources for residents

Football club pitch upgrade Funds towards an artificial grass sports pitch in Horsham Living our values award Two annual awards for demonstrating our values

Funds
Special needs reserve
Horsham Y Centre legacy
Youth mental health
Chaplaincy
Passport to Independence
Youth engagement
WiSE?
Youth advice centres
Girls’ mentoring programme
Housing fund
Football club pitch upgrade
Living our values award		 1 April
2023
Income
Expenditure
Transfers
31 March 2024
£
£
£
£
£
890
-
(890)
-
-
29,734
-
(2,887)
-
26,847
9,955
(9,955)
-
-
3,500
28,000
(28,167)
-
3,333
11,439
100,000
(111,439)
-
-
2,167
-
(2,167)
-
-
2,777
33,392
(33,331)
-
2,838
97,500
93,500
(141,177)
-
49,823
7,500
(7,500)
-
-
710
2,700
(1,710)
-
1,700
2,500
-
-
-
2,500
600
-
(200)
-
400
169,272
257,592
(339,423)
-
87,441

39

16. RESERVES – GROUP

Unrestricted funds:
General reserve
Fixed asset reserve
Pension reserve
Investment revaluation reserve
Total unrestricted funds
Restricted funds		 1 April 2023
Income
Expenditure
Transfers
31 March 2024
£
£
£
£
£
(2,664,802)
17,937,120
(18,274,646)
(490,429)
(3,492,757)
9,403,075
122,578
(528,305)
391,383
9,388,731
(543,260)
217,443
-
99,046
(226,771)
(3,776)
-
(231)
-
(4,007)
6,191,237
18,277,141
(18,803,182)
-
5,665,196
169,272
257,592
(339,423)
-
87,441
6,360,509
18,534,733
(19,142,605)
-
5,752,637

The transfer to the fixed asset reserve of £391,383 represents the net of additions of £400,133 and disposals of £8,750 (see note 9). The transfer to the pension reserve is £99,046 of deficit contributions made during the year (see note 19).

RESERVES – CHARITY

Unrestricted funds:
General reserve
Fixed asset reserve
Pension reserve
Investment revaluation reserve
Total unrestricted funds
Restricted funds		 1 April 2023
Income
Expenditure
Transfers
31 March
2024
£
£
£
£
£
(2,675,555)
17,907,627
(18,247,231)
(489,675)
(3,504,834)
9,403,075
122,578
(528,305)
391,383
9,388,731
(543,260)
217,443
-
99,046
(226,771)
(3,776)
-
(231)
-
(4,007)
6,180,484
18,247,648
(18,775,767)
754
5,653,119
169,272
257,592
(339,423)
-
87,441
6,349,756
18,505,240
(19,115,190)
754
5,740,560

Within the fixed asset reserve is a revaluation amount of £1,859,020 relating to Crawley Foyer introduced on adoption of FRS 102 in April 2014. The transfer balance of £754 represents the gifting of YMCA DLG Services Ltd gifting of the prior year profits (see note 10).

17. GUARANTEES

As part of its direct charitable work, YMCA DLG provides letters of guarantee to landlords to provide limited cover against lost rent and/or damage to property. The likely liability for guarantees in place at 31 March 2024 is under £1,000. This system enables more places to be facilitated with minimal exposure. There is no provision for guarantees which may be called upon within these financial statements.

18. MEMBERS

YMCA DLG is limited by guarantee having no share capital. In accordance with the Memorandum of Association every member is liable to contribute a sum of £1 in the event of the charity being wound up.

40

19. PENSION COMMITMENT

YMCA DLG 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 DLG and at the year-end these were invested in the Mercer Dynamic De-risking Solution, 65% matching portfolio and 35% in the growth portfolio, and Schroder (property units only).

The most recent completed three-year valuation was as at 1 May 2023. The assumptions used which have the most significant effect on the results of the valuation are those relating to:

The result of the valuation showed that the actuarial value of the assets was £103m. This represented 92% 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 2023 showed that the YMCA Pension Plan had a deficit of £9m. YMCA DLG has been advised that it will need to make monthly contributions of £6,712 from 1 May 2024. This amount is based on the current actuarial assumptions and may vary in the future as a result of actual performance of the Pension Plan. Agreed future deficit contributions have been discounted using a rate of 4.9% (2023: 4.8%). The current recovery period is three years commencing 1 May 2024.

During the year deficit payment contributions of £99,046 were made.

The table below sets out the value of the liabilities included in the balance sheet

Within one One to two Two to five After five After more TOTAL TOTAL
year years years years than one 2024 2023
year
As at 31 March 2024 82,101 73,190 71,480 - 144,670 226,771 -
As at 31 March 2023 99,046 92,887 269,196 82,131 444,214 - 543,260

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

Supplementary to the above scheme, employees starting with Sussex Central YMCA, the former legal entity merged to become YMCA DLG, after 1 April 2001, were eligible to join a stakeholder pension scheme, administered by Legal and General, which is a defined contribution scheme, into which the charity pays contributions. The employer’s contribution is set at a maximum of 6% of gross pensionable salary. The employee contribution is a minimum of 1.6%. In addition, members of the Leadership team can make contributions of 8% of salary to the stakeholder pension scheme with an employer’s contribution of up to 15%. During the period a total of 32 employees benefited from the scheme at a cost of £153,313.

In 2007 Guildford YMCA, a former legal entity that merged to become YMCA DLG commenced a scheme with Aviva. This is a group personal plan arrangement and the contributions are expressed as a percentage of the employee’s salary. This scheme was to replace the now closed defined benefit scheme discussed above. The cost for the year was £1,609 (2023: £1,539) in respect of 1 employee (2023: 1).

With the introduction of auto enrolment, the organisation-wide scheme was closed to new entrants on 31 January 2014 and the charity now offers a stakeholder defined contribution pension scheme in line with legislative requirements administered by Legal and General.

At the end of the year there was a liability of £49,201 relating to all the schemes that was settled the following month.

41

20. OPERATING LEASE COMMITMENTS

The future minimum lease payments of leases are as set out below.

he future minimum lease payments of leases are as set out below.
Land and buildings:
Within one year
Between one and five years
In more than five years
Equipment:
Within one year
Between one and five years
In more than five years		 2024
£
972,503
2,419,183
557,785
3,949,471
16,279
-
-
16,279		 2023
£
990,466
1,976,931
709,371
3,676,768
6,222
2,166
-
8,388

21. GROUP AND RELATED UNDERTAKINGS

During the year ended 31 March 2024, YMCA DLG had the following related and associated undertakings:

Relationship Status Regulated by Social
Housing Regulator
YMCA DownsLink Services Limited 100% subsidiary Trading Company Non-regulated

42

22. CONTINGENT LIABLITIES

At 31 March 2024 there were contingent liabilities in respect of grants received in relation to the following properties:

Building Social housing grant Local authority grant
Crawley Foyer £873,140 £1,500,226
Worthing Foyer £823,632
Guildford Foyer £2,021,986
Horsham Y Centre £4,057,690
Eastbourne Y Centre £771,910
Eastbourne Foyer £1,525,000
Hastings Foyer £1,614,950
The Bridge, Guildford £3,449,187

There is potential for repayment or recycling of these grants in the event the sites are disposed of and/or taken out of social housing use. The Bridge, Guildford, was sold in June 2022 to a non-registered provider and the associated grant has been retained by YMCA DLG to recycle. The grant is accruing interest at the Bank of England base rate on a daily basis until recycled. All other properties remain in social housing.

On the purchase of Horsham Y Centre and Eastbourne Y Centre from YMCA England and Wales, grants were received for £873,000 and £247,500 respectively. If YMCA DLG were to either resign as a member of YMCA England and Wales Federation, disassociate itself from the organisation, or cease to participate in any of its operations, the grants will become refundable. There are no plans for any of these events to occur.

Of the £16,637,721 housing grants liability, £13,609,130 is within creditors. On implementation of FRS 102 in the 2016 financial statements, the trustees elected to treat the grants held at the time for Crawley Foyer under the performance model and recognise them in reserves. On the sale of The Bridge, the grant associated with it has been retained to be recycled and at 31 March 2024 the value of the grant has increased to £3,449,187. All other grants are treated under the accruals model and amortised over the life of the related structure. To date £1,105,225 has been transferred to reserves.

Crawley Foyer
Crawley Foyer
Worthing Foyer
Guildford Foyer
Horsham Y Centre
Eastbourne Y Centre
Eastbourne Foyer
Hastings Foyer
The Bridge RCGF		 Social housing
grant
obligations
Recognised in
reserves
Amortisation
to date
Net book
value
Creditors due
less than one
year
Creditors due
greater than
one year
873,140
(423,140)
(108,000)
342,000
18,000
324,000
1,500,226
(1,500,226)
-
-
-
-
823,632
-
(75,500)
748,132
8,236
739,896
2,021,986
-
(461,450)
1,560,536
16,646
1,543,890
4,057,690
-
(284,038)
3,773,652
40,577
3,733,075
771,910
-
(54,678)
717,232
7,719
709,513
1,525,000
-
(83,877)
1,441,123
15,250
1,425,873
1,614,950
-
(37,682)
1,577,268
16,150
1,561,118
3,449,187
-
-
3,449,187
-
3,449,187
16,637,721
(1,923,366)
(1,105,225)
13,609,130
122,578
13,486,552

23. CAPITAL COMMITMENTS

At the year-end there were no capital commitments.

43

YMCA DOWNSLINK GROUP YMCA DownsLink Group Reed House 47 Church Road Hove BN3 2BE Registered company: 03853734 Registered charity: 1079570 Registered social housing provider: 4644 Registered BACP accreditation: 00102752