2022-03-31-accounts

Registered number: 4116412 Charity number: 1086320

YMCA BLACK COUNTRY GROUP

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

CONTENTS

	Page
Reference and administrative details of the company, its Trustees and advisers	1 - 2
Chairman's statement	3
Trustees' report	4 - 30
Independent auditors' report on the financial statements	31 - 34
Company statement of comprehensive income	34
Consolidated statement of comprehensive income	35
Consolidated balance sheet	37 - 38
Company balance sheet	39 - 40
Consolidated statement of cash flows	42
Notes to the financial statements	43 - 61
The following pages do not form part of the statutory financial statements:

(A company limited by guarantee)

YMCA BLACK COUNTRY GROUP

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees	J Oakley, Chair
	S Balogun
	G England
	M Fussell (appointed 17 November 2021)
	R Hill (Retired 25 March 2022)
	J Rowe (appointed 17 November 2021)
	J Sargeant (appointed 7 June 2022)
	M Shenton (appointed 18 May 2021)
	G Stonyer
	P Tomlinson
	P Walker
	A Walsh
	J Welsby
Company registered number 4116412 Charity registered number 1086320 Registered office 38 Carters Green West Bromich West Midlands B70 9LG Company secretary S C Clay Chief executive officer S C Clay Independent auditors WR Partners Chartered Accountants & Statutory Auditors Belmont House Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG Bankers Unity Trust Bank PLC Four Brindley Place Birmingham B1 2JB Solicitors MFG Solicitors LLP Pamore House Hall Court Hall Park Way Overdale Telford TF3 4LX

Page 1

YMCA BLACK COUNTRY GROUP (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Solicitors (Human Irwin Mitchell Solicitors Resources) 31 Temple Street, Birmingham, B2 5DB Anthony Collins 134 Edmund Street, Birmingham, B3 2ES Solicitors (Operations & Wright Hassall LLP Developments) Olympus Avenue, Royal Leamington Spa, Warwick. CV34 6BF Internal auditor TIAA Limited Artillery House, Fort Fareham, Newgate Lane, Fareham Chief Officer Team Chief Executive Officer - Stephen Clay Chief Corporate Officer - Jill Law Chief Operations Officer (Places) - Sally Cowan Chief Operations Officer (Programmes) - Joanne Goldie Registered Provider of L4550 Social Housing Number

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YMCA BLACK COUNTRY GROUP (A company limited by guarantee)

CHAIR'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

The Chair presents his statement for the year.

The 2021/22 financial year marks my first full year as Chair of YMCA Black Country Group and my second year providing an introduction to the Trustee Report.

The effect of the global pandemic has continued to reap havoc across the country, disrupting service delivery to marginalised communities. New working patterns have emerged as long periods of back office staff working from home have gradually been replaced by hybrid working as the new normal. Yet for the majority of our staff, their dedicated service delivery in nurseries, housing and community projects has remained face to face throughout the year, as they’ve worked tirelessly to restore services back toward pre-pandemic normality.

On behalf of the Board of Trustees I would like to express our continued gratitude to all our staff, for the way they have embodied the ethos and values of YMCA Black Country, in their active concern and care for all. I am constantly reminded of Jesus’ exhortation to ‘love others as ourselves’ and feel privileged to be part of an organisation that exemplifies this.

It is particularly satisfying to have completed the first phase of our YMCA City Gateway building which now hosts our administrative offices, having transferred from our old offices in Temple Street, and I look forward to seeing new services develop from this fabulous new facility.

We also launched exciting new programmes during the year such as RAF Air Play - a national YMCA partnership providing youth club services on RAF bases across the UK, two new nurseries in Walsall and Stourbridge, and new Big Lottery programmes in Wrens Nest, Dudley, and at the Glebe Centre in Walsall.

The Trustees and I are pleased to once again support the YMCA’s Christian Mission at an international level, including, through our CEO, coordinating the production of material for the YMCA / YWCA World Week of Prayer in November 21, and the coordination of the devotional content for the YMCA World Council 2022 to be held in July 2022.

Our recovery from coronavirus was hampered by continued waves of staff sickness and self-isolation, and our office lets and meeting areas experienced lower occupancy levels than anticipated.

Despite the challenges, it is encouraging to see that the reach of our charitable activity has continued to grow, supporting and working with 11159 children, young people and community members during the year. This Trustee Report, together with the accompanying Annual Accounts are intended to provide a public and transparent account of these activities, detailing how the charity has utilised public funds toward our charitable objects in meeting local need.

It is my ongoing hope that as you read through these pages you will discover an organisation with a clear sense of purpose and direction, a strong governance and management framework, and a stable financial position. There is much need within the Black Country, and an organisation committed to transforming communities and enabling young people to belong, contribute and thrive is more relevant than ever.

J Oakley Chair of Trustees

Date: 21 September 2022

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their annual report together with the audited financial statements of the YMCA Black Country Group for the year 1 April 2021 to 31 March 2022. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).

The Group includes the Charity, YMCA Black Country Group and two subsidiary charities; YMCA Walsall and YMCA Wolverhampton. References to ‘The Charity’ relate to YMCA Black Country Group only. Reference to consolidated activity or specific subsidiaries are stated.

Comment from the Chief Executive Officer

This past year has been a year of both great challenge and optimism for the future.

No one could have predicted the severity and duration of the pandemic when it hit in March 2020. In essence the period of coronavirus disruption has played out as a game of two halves. In the first period (20/21), Government support and funding packages were accessed, designed to ensure charities could effectively respond to the emerging crisis. These enabled YMCA Black Country Group to maintain essential services and also to complete the year with a healthy surplus. The second period (21/22) has proved more challenging. Government support ceased, yet income from fee paying services had not returned to 2019/20 levels. Consequently, although the consolidated accounts returned a cash surplus, for the first time in recent history, the consolidated accounts record a trading loss.

Through repeated waves of coronavirus, our dedicated staff team have continued to provide excellent services to local communities throughout the period.

The first phase of work at YMCA City Gateway in Wolverhampton completed in September 2021. A £9M investment which marks the first time in over 100 years of YMCA services delivery, that YMCA has put down permanent root in the City. The facility makes a confident statement and intent to grow local services. During the year, through its subsidiary YMCA Wolverhampton, the Group acquired two additional nurseries, in Rushall, Walsall and in Lye, Stourbridge, expanding its childcare network to eight settings.

Across the Group we served 1556 young people, vulnerable adults and young professionals through our accommodation and children childcare services, and a further 11159 community member engagements in our range of programme activity.

Consolidated turnover grew by 5% to £6,758,161 indicating the start of recovery. Surplus in the charity alone was strong at £183,957 although the consolidated surplus across the Group recorded a loss of £79,045, highlighting the operational challenges faced during the year in childcare, room/office letting and community leisure services.

The Going Concern review received by Trustees in September 2022 continues to demonstrate that the charitable group is in a strong financial position, despite the effect of the pandemic, and that governance and management structures are working effectively. Continued growth is anticipated in the next financial year, and a return to a consolidated surplus. However, aspirations to achieve Real Living Wage across all service areas have been hampered by the impact of Coronavirus and the limitation of Government funding for childcare.

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(A company limited by guarantee)

YMCA BLACK COUNTRY GROUP

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Objectives and activities

a. Policies and objectives

YMCA Black Country Group is a charity committed to community transformation, enabling people to develop in mind, body and spirit. Built on a Christian foundation, with an ethos that is inclusive of all, we are a youth-minded organisation, with a community approach.

Our work is primarily in places across the Black Country and border areas, working with children, young people and their families, offering support & advice, accommodation, family work, health & wellbeing, and training and education services.

The report below highlights what we have achieved in the 2021/22 financial year in the midst of the corona virus pandemic; and also, our aspiration (notwithstanding the present difficulties) to grow our services to best meet the needs of young people and their communities, so that they can truly belong contribute and thrive.

During the year, the principle activities of the consolidated group were young people’s housing (72%) and community activities (28%)

HOPE	We encourage an expectation that life has more.
	cf. 1 Thess. 5:11	Values
COMPASSION	We demonstrate active care and concern for all. cf. Galatians 6:10	Our Values, were further developed in 2019/20 through consultation with Staff and
INSPIRE	We inspire people to meet their potential cf. John 10:10	Trustees, and describe the way we behave.
TRUST	We build trust through open, honest and transparent relationships.	They aim to be Christ- centred, inclusive for all and aspirational.
	cf. Psalm 41:12

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Objectives and activities (continued)

b. Connected Communities: A Strategic Guide

At the start of the 2020/21 financial year, the Senior Leadership Team and Trustees launched Connected Communities: A Strategic Guide which charts the direction of YMCA Black Country Group (and it’s subsidiaries) for the subsequent five years. The strategy allows for considerable flexibility in application, and despite the challenges of the pandemic, it remains a robust document to guide the charity forward.

Connected Communities: 2020-25, a Strategic Guide, is summarised below, and is being delivered through five areas of focus.

Focus 1: Places of Transformation A YMCA BC presence spread across our area, with transformational community impact.	Focus 1: Places of Transformation A YMCA BC presence spread across our area, with transformational community impact.
Delivered By	2025 Aim
 Sustainable ‘Community Branches’ that have sustainable ‘economic engines’ principally based on childcare and accommodation, and from which other community services can be delivered.  Community Outreach locations, which meet strategically identified needs.  Community awareness of YMCA presence & positive impact.	4 full service ‘central’ Community Branches {2} 5 additional community branches 825 Childcare places (279) {544} 175 Supported accommodation units (220) {221} 278 Young professional / worker units (60) {125} Community outreach present in 25 towns (13) {19} 1 in 2 members of public are awareness of YMCA presence in Community Branch towns *( ) Number in 2019 { } in 2022

Focus 2: Programmes for People People development programmes, covering the range of YMCA BCG services.	Focus 2: Programmes for People People development programmes, covering the range of YMCA BCG services.
Delivered By	2025 Aim
 Learning & Skills / Health & Well-Being / Family Work / Support & Advice programmes which evidence impact, provided from Community Branches/ Outreach Locations, or where area- wide/specialist services meet strategic need.  Focusing on the distinctive of YMCA BCG, our ‘connected community’ approach and our unique ethos and values.  Nurturing a mixed model of social enterprise, alongside donor-based and commissioned services.	Programme reaching 7,000 people p.a. (3,500) {12,715} Quality assessments rated ‘good’ with >20% at outstanding (100% good) {100% good} Distinctive impact measures, developed & applied for all services 1 New scalable social enterprise identified & proven ( ) Number in 2019 { } in 2022

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Objectives and activities (continued)

Focus 3: Empowering Young People Special emphasis on enabling young people aged 0-35 years, to Belong, Contribute & Thrive.	Focus 3: Empowering Young People Special emphasis on enabling young people aged 0-35 years, to Belong, Contribute & Thrive.
Delivered By	2025 Aim
 Informal education youth work, linked to YMCA BCG programme areas – delivered in YMCA Community Branches and Outreach locations.  Providing ‘Belong, Contribute, Thrive’ progression routes in Community Branches for young people to grow within the YMCA environment … from child to teenager to adult.  Empowering young staff / volunteers / trustees to Belong, Contribute & Thrive.	Created a sustainable youth-work model regularly reaching 500 teenagers {450 / month} Birth - Youth - Adult progression routes in 4 Community Branches {tbc in 2022/23} 50 young staff thrive through ‘Group’ task-groups which stretch them 100 young people contribute as volunteers annually {tbc in 2022/23} Increase trustees aged under 35 (1) {1} *( ) Number in 2019 { } in 2022

Focus 4: Growing Ethos & Values Nurturing an inclusive Christian culture, where everyone benefits.	Focus 4: Growing Ethos & Values Nurturing an inclusive Christian culture, where everyone benefits.
Delivered By	2025 Aim
 Effective Induction and the consistency of Christian Mission across the group. (e.g. spiritual content programme in nurseries)  Establishing Ethos Champions in all YMCA BCG locations.  Developing youth work which links into Church / Missional opportunities.  Supporting Christian Mission growth through YMCA, locally, nationally and globally.	50 Governance Members (18) {19} 100% complete full induction within 3 months {currently at 68%} 90% of locations have a trained ethos champion (0) {6/15 40%} All curriculums embed Mind Body & Spirit and Belong, Contribute & Thrive {new childcare curriculum} 5 Church youth work partnerships working with over 100 young people {2 in development} Over 70% of staff engage in Christian Mission events annually {tbc in 2022/23} A national Christian Mission strategy established which contributes to World YMCA * ( ) Number in 2019 { } in 2022

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Objectives and activities (continued)

Focus 5: Investing in Talent Crafting a skilled, motivated and creative staff team to implement the Strategic Guide..	Focus 5: Investing in Talent Crafting a skilled, motivated and creative staff team to implement the Strategic Guide..
Delivered By	2025 Aim
 Specific emphasis on the development / acquisition of Entrepreneurial Leadership, Spiritual Leadership and Organisational Management / Leadership  Recruiting & retaining excellent staff, continually developed and who exemplify our Ethos & Values.  Becoming a Real Living Wage employer	20 staff have undertaken Entrepreneurial / Spiritual / Organisational leadership development (or were recruited for these skills) A range of tools are developed allowing Staff to regularly reflect on the YMCA BCG Values to test they are living them in their working practice. Real Living Wage implementation completed

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Strategic report

Achievements and performance

a. Key financial performance

In order to enhance transparency and openness, accounts consolidated with those of its charitable subsidiaries are included in the Financial Accounts and Statements, in addition to those of the Charity itself.

The consolidated turnover grew by 5% to £6,758,161 indicating the start of recovery. Surplus in the charity alone was strong at £183,957 although the Group returned a consolidated loss of £79,045 highlighting the operational challenges faced during the year in childcare, room/office letting and community leisure services. It should be noted that the surpluses include the recognition of capital grants as income in accordance with FRS102.

Given the challenges of returning operations to viability post-coronavirus, and taken together with the significant surplus of 2020/21, the Trustees consider this to be a satisfactory result.

b. Review of activities

Places of Transformation

Our Community Branches provide a sustainable YMCA presence in towns across the Black Country. Each comprising a social enterprise (usually childcare or housing related) which forms its economic engine, and from which wider charitable services can be delivered. Community branches have a reception, central meeting hub, and deliver 3 key service areas on single or multiple sites. Full service community branches deliver across all 5 thematic service areas (housing, family & youth work, health & well-being, training & education, support & advice). We aspire to deliver four full service Community Branches by the end of 2025.

West Bromwich Central Community Branch	Full Service
Walsall Central Community Branch	Full Service
Wolverhampton Central Community Branch	Currently delivers across 4 thematic areas

Community Outreach locations widen the scope and impact of our work beyond areas served by our Community Branches. In 2021/22 we added 4 new outreach locations, increasing the number of towns/neighbourhoods YMCA BC is operating in to 19. We aspire to be working in 25 towns / neighbourhoods by the end of 2025.

Community Outreach Locations	Community Outreach Locations
Dudley	Dudley Central, Wrens Nest, Sedgley, Lye
Sandwell	Hamstead, Wednesbury, Greets Green
Walsall	Rushall, Pelsall, Caldmore
Wolverhampton	Pendeford, Wednesfield
Staffordshire Boarders / Other	Rugeley, Cannock Chase, Cosford, Shawbury

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Strategic report (continued)

Achievements and performance (continued)

The first phase of work at YMCA City Gateway in Wolverhampton completed in September 2021. The facility comprises 63 units of young professional / worker accommodation, a 115 place day nursery, and community training area. It has also become the administrative head office for YMCA Black Country Group and the registered office for YMCA Wolverhampton following the completion of the administrative office move from Temple Street. Work will continue on the final phase of the building to complete fit out of the ground floor community hub, which will provide space for community projects, a hireable studio/meeting area, and a retail unit which is intended to become a convenience store for the local community.

During the year, through its subsidiary YMCA Wolverhampton, the Group acquired two additional nurseries, in Rushall, Walsall and in Lye, Stourbridge, expanding its childcare network to eight settings. Coronavirus continued to have a significant operational impact on our nursery services. With the removal of the furlough scheme and guaranteed level of Early Years funding the nursery operation reversed the gains made in 2020/21 and reluctantly, policy changes in company sick pay have been necessary to ensure ongoing viability. Throughout the year 1004 children received childcare and early year’s education.

The number of accommodation and childcare places offered across the Black Country is shown below.

Community Branch	Childcare Places**	Accommodation Units	Community Outreach Locations	Childcare Places**	Accommodation Units
Walsall Central	65	21*	Dudley, Central		23
West Bromwich	179	145	Pendeford **		10
Central			Rugeley **		28
Wolverhampton	115	85 **	Wednesbury		34
Central			Black Country S.L. Hosts		60
* Delivered by YMCA Walsall ** Delivered by YMCA Wolverhampton			Pelsall,Walsall	32
			Rushall,Walsall	60
			Hurst Hill, Dudley	30
			Lye, Stourbridge	63

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Strategic report (continued)

Achievements and performance (continued)

Across the Group, YMCA BCG and its subsidiary charities have provided a consistent provision of accommodation throughout the year.

Supported housing provision for 431 young people was delivered in Dudley, Sandwell, Walsall, Wolverhampton and South Staffordshire, through a range of housing projects in our Community Branches and Outreach projects, including our Supported Lodgings network of host families and individuals.

Additionally 121 young adults benefited from the Charity’s young professional / worker accommodation in Sandwell, Dudley and Rugeley.

The charity shop based in Wednesfield (and delivered through YMCA Wolverhampton) was closed for part of the year due to coronavirus shutdown, but still managed to return a contribution of £6,752 (management fee and surplus) by year end.

Plans for developing in-house marketing and digital communication skills are in place for 2022/23, and it is intended to begin testing public awareness of YMCA services in Community Branch towns in line with Strategic Guide requirements during 2023.

Programmes for People

During the year, our ‘people development’ programmes restarted meeting face-to-face, covering a range of service areas including learning and skills, health & wellbeing, family work and support and advice programmes. Our Community Branches in West Bromwich and Walsall, have facilities for other local charities and social enterprises to deliver their services and programmes to the local community, and these have slowly begun to return, albeit not yet at 2019 levels.

Across all of YMCA Black Country Group’s programme activity (including community projects, supported housing and childcare) the charity group has worked with 12,715 people during the year.

Three nursery settings (operated by YMCA Wolverhampton) received Ofsted inspections during the year, at Greets Green, Sandwell, Carters Green, Sandwell and Small Street, Walsall. Each received GOOD grading, with areas of OUTSTANDING practise.

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Strategic report (continued)

Achievements and performance (continued)

Distinctive impact measures have been developed through a suite of key performance indicators, which are collected and monitored by the Senior Management Team, and reported to the Finance, Audit and Risk Committee throughout the year.

The Strategic Guide aspiration to identify one new scalable social enterprise has not been an area developed in this financial year.

Community Branch	Programme Activity
Walsall Central	Over the past twelve monthsCommunity Development Workhas continued at the small street centre with employability courses being run from the centre, enabling individuals to gain meaningful qualifications leading to tangible employment outcomes for them. Small Street also still continues to provide a safe space for community members to meet other people, and to engage with a variety of support from the available mentors on site. Support has been provided with health and wellbeing, benefits, information advice and guidance and supported into training or employment. Programmes at theGlebe Centre*have developed this year with the addition of INSPIRE, supported by the Big Lottery, in addition to the core public health contract. This has enabled the staff at the Glebe to adopt a trauma informed approach to working with some of the most vulnerable members of the community. The support is holistic and therapeutic. It provides structured day care to the service users which in turn will enable routines to be established and it is hoped that the service users will participant fully in citizenship and work towards gaining employment o volunteering opportunities. In addition to providing premises for nursery provision, the Small Street Centre has provided office and meeting spaces for local organisations to develop and deliver their own programmes. During the year, this space was utilised by Lichfield Diocese, and Manor Farm Community Association, Yellow Ribbon as well as providing office space for the YMCA’s Building Better Opportunities programme. The effects of the pandemic are still being felt in the conferencing and office hire as working patterns have significantly changed for many companies and individuals.
West Bromwich Central	TheYgym and Coffee Shophas been growing and developing tis activity over the past year. The coffee shop is currently operated by one of YMCA’s partner organisation (Just Straight Talk). The energy and activity from the coffee has been a welcome return to Western Gateway. Ygym has consistently increased in it memberships this year. The team have been working hard to retain current members, contact past members who left during the pandemic and continue marketing the great facilities available. We have found that gym memberships have not been an issue, but the hiring of larger spaces such as the Sports Hall and Dance studio has remained a challenge. Western Gateway’sStarter and Social Business Units – Office and unit rental has been slow to pick up since the pandemic. Advertising with a local agent has sparked some interest but retention of existing tenants has also been a concern.

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Strategic report (continued)

Achievements and performance (continued)

Community Outreach Locations	Programme Activity
Black Country- Wide	OurMentoring Advice & Guidance Programme, Building Better Opportunities continued with mentors working from home and supporting on average 30 people per month individuals with benefits, IAG and help accessing health and wellbeing services. We have continued to develop Litmos, our newonline learning platform. Litmos is an interactive online learning platform which will raise the profile of learning and development within the organisation in future years. In addition it allows YMCA to develop and market online training courses and programmes in the future. YMCA Black Country Group has also been successful in being one of the 10 pilot sites for thenational mentoring programme: Y’s girls. This programme matches trained volunteer mentors with vulnerable females aged 8-14. These mentors meet one on one with the young people and act as mentor and role model to develop greater resilience and coping skills through engaging in confidence building and activities. There have been 20 successful matches of girls over this last year and lots of engagement with the national team to develop research to sustain the model going forward.
Wolverhampton- Wide	TheYouth Work Programme, Y’s Youth has been delivered over the past twelve months, building on the foundation of our Head Start programme. This programme has delivered universal access youth services to young people in the community throughout the school term. These activities include sports and recreational games, arts and crafts and cook/eat sessions. The programme has also secured additional funding to extend delivery in the school periods through the Holiday Activity Fund. This has increased the number of young people engaging with our service. Y’s Youth has worked with 3056 young people over this year. TheAdult LearningContract has continued to be delivered at City Gateway focussing on Literacy, numeracy and essential digital skills. The team of tutors have delivered over 60 sessions and supported 22 individuals to access learning opportunities. Throughout 2021/2022 YMCA has operated as a gateway for Kickstart placements****, both in our own settings and also facilitating placements with two of our partner organisations. This programme focusses on providing young people aged 16-24 with supported job placements of 25 hours per week. We have delivered 12 successful placements for young people in a variety of departments including, administration, customer services, facilitates, nurseries and retail.
Dudley	Wrens Nest Navigatorsprogramme has been running from April 2021 and has been a flagship programme for the area. This programme is funded by the National Lottery for 5 years to work holistically with families from the area of Wrens Nest, providing youth based activities, one to one support and guidance with families as well as community and schools based work. This programme began delivery in September 2021 and has already worked with 489 individuals.
Staffordshire Borders	TheRAF Airplaycontract began in January 2022. This has seen theyouth work teams**from RAF Cosford (Wolverhampton) and RAF Shawbury (Shrewsbury) being transferred to YMCA Black Country Group and the delivery of the youth work services for these bases being added to our youth work portfolio. The contract is in its infancy with a transitional period being expected. That being said, delivery at RAF Cosford is very structured and regular with very good attendance. RAF Shawbury is a smaller base and will take some more time for the changes to be embedded.

• Delivered by YMCA Walsall

** Delivered by YMCA Wolverhampton

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(A company limited by guarantee)

YMCA BLACK COUNTRY GROUP

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Strategic report (continued)

Achievements and performance (continued)

Empowering Young People

Following on from the pandemic year we have seen a tangible growth on the area of youth work at YMCA with continued funding for Y’s Youth, the delivery of Y’s girls, Wrens Nest and also the most recent delivery at both RAF Cosford and Shawbury. We now have youth work regularly reaching an average of 450 teenagers per month.

Work in other Strategic Objectives to empower young people will be given greater priority in the period 20222025, namely:

• Creating Birth - Youth - Adult progression routes in 4 Community Branches

• Enabling 50 young staff members to thrive through ‘Group’ task-groups which stretch them.

• 100 young people contributing as volunteers annually

• Increase the number of trustees aged under 35

Growing Ethos & Values

The Trustees reviewed the role of Governance Members in July 2021. There are currently 19 Governance Members, and the Board intend to gradually increase the number toward the 2025 goal of 50.

A new staff induction and ethos training programme was introduced in the last quarter of 2020/21. At 31[st] March 2022 68% of staff have completed the full induction programme. It is expected that this percentage will continue to increase greatly toward 100% over the next 12 months.

Staff ethos champions have been appointed in 6 locations during the year. This is expected to increase to 15 main operational sites over the next 12-24 months.

YMCA Black Country Group’s new childcare curriculum has been developed during the year embedding Mind Body & Spirit and Belong, Contribute & Thrive within the Early Years Framework. It is intended that the curriculum is launched in 2022/23 and offered as a resource for other YMCAs to improve their practice and quality, and to model diversity within a Christian ethos framework.

The Charity continued to support the planning of YMCA’s Unify Christian Mission events although due to the Coronavirus situation no events took place during the year. European Unify, due to take place in January 2022 in Vienna, was postponed until October 2022.

The Charity’s Christian Mission Coordinator continued to support the spiritual life of the organisation, particularly in taking a lead to provide pastoral support to staff, and providing pastoral visits to project managers. The Charity’s Chaplaincy service has continued to be supported during the year through the West Bromwich Church of England Deanery, and Blue Fish Chaplaincy, Wolverhampton.

The Charity has continued to support the work of the YMCA Movement through involvement in the Regional forums & networks, Governance Committee, and in coordinating the YMCA/YWCA World Week of Prayer in November 2021 on behalf of World YMCA. The CEO has also been coordinating an international team preparing the Devotions for World Council 2022 in Denmark, on behalf of YMCA World.

Page 14

(A company limited by guarantee)

YMCA BLACK COUNTRY GROUP

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Strategic report (continued)

Achievements and performance (continued)

Investing in Talent

Progress toward the implementation of the Real Living Wage has been reluctantly put on hold as it transpired toward the end of the year that the operational model for nursery viability had been adversely impacted by the continuing waves of pandemic, and the cost of large numbers of staff on sick leave.

At the time of report approval, the level of inflation, compounded by the fuel crisis, is placing additional strain on the Trustees ability to maintain real-term pay levels. The charity is exploring alternative ways of supporting staff who may be struggling due to the cost of living crisis.

The Trustees would like to place on record their thanks to the Charity’s team of staff and volunteers, who in such unprecedented times have made such a difference in the lives of many children, young people and family members across the Black Country and surrounding area, evidenced in the above review of activities.

c. Capital commitments

The first phase of work at YMCA City Gateway in Wolverhampton completed in September 2021. A £9M investment which marks the first time in over 100 years of YMCA services delivery, that YMCA has put down permanent root in the City. The facility makes a confident statement and intent to grow local services.

“Phase 2” of the City Gateway development comprising community services and retail unit is due for completion in Summer 2022.

During the year, through its subsidiary YMCA Wolverhampton, the Group acquired two additional nurseries, in Rushall, Walsall and in Lye, Stourbridge, expanding its childcare network to eight settings.

The conversation of 53 Walsall Street in Wednesbury was commissioned toward the end of the year and iis due for completion in Summer 2022. The scheme will provide 14 units of affordable young professional / worker accommodation which aligns to the Strategic Guide. These works were independently value for money tested with the JCT Minor Works contract £173,416 (gross) being signed on 30 March 2022.

Planning permission for a further 26 units of housing to be built on YMCA BC land at 235 Hamstead Road, was approved by Sandwell Council in July 2021. The scheme will be developed by Jessup and funded via Homes England grant and YMCA financing (details to be confirmed). Start on site is anticipate by the beginning of 2023.

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YMCA BLACK COUNTRY GROUP

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Strategic report (continued)

Achievements and performance (continued)

d. Coronavirus statement

The Group faced a number of post-COVID challenges during the 2021/22 year with a significant reduction in one-off support funding available coupled with the ending of the Furlough Scheme.

In addition, the financial impact of staff sickness absence resulted in the Board reviewing the Sickness Absence Policy in March 2022 following recommendations from Chief Officers. In early April 2022, the Board approved a change to Company Sick Pay.

The diversity of our operations has helped to ensure ongoing sustainability of all our projects with the largest single area of operation in the provision of accommodation remaining strong.

The financial performance of our combined Childcare operations (YMCA Wolverhampton) did not generate the break-even positon anticipated when setting the 2021/22 Budget. The Finance, Audit and Risk Committee have increased the scrutiny of our childcare operations including additional reports being presented at each meeting. Childcare operations experienced the financial impact of Covid related sickness absence more so than any other of our operations which, in part, gave rise to the Board reviewing the Group’s company sick pay arrangements.

YGym – re-opened fully in the summer of 2021 in line with Government guidance. The introduction of Clubware software really helped with reduced administrative costs and automated processes e.g. management of direct debits. Customers are also able to sign up and book sessions on-line.

Lettings of offices, sports hall and community meeting rooms have been recovering although they remained below pre-pandemic levels at year end.

A further statement regarding Going Concern is referenced within the financial review below.

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Strategic report (continued)

Financial review

a. Going concern

The Trustees, supported by the Finance Audit and Risk Committee, have undertaken a detailed going concern review of current and future operations of the Charity and the Group as whole and, after making appropriate enquiries, very thorough consideration of draft budgets and cash flow up to September 2023 and beyond. Having taken key strategic decisions, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Trustees have no doubt that the Charity can pay its debts when they fall due, certainly for in excess of one year from the date the annual accounts were approved. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

The Trustees noted that despite another challenging year, the Group generated a cash surplus (before depreciation and loan interest) of £244k which exceeded budgeted by approximately £58k. At the time of approval of these accounts, and in the four months to July 2022, the Group had returned a consolidated surplus of £139k, broadly in line with budget.

While there remains a pending cost of living uplift, and the rising cost of fuel is giving cause for concern, the current position provides Trustees with continued confidence regarding viability and going concern.

b. YMCA Pension Provision

YMCA Black Country Group participated in a multiemployer 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 Black Country Group. As described in note 21, YMCA Black Country Group has a contractual obligation to make pension deficit payments of £1,982 per month over the period to April 2027. Accordingly this is shown as a liability in note 20 to these accounts. In addition, YMCA Black Country Group is required to contribute £5,318 pa to the operating expenses of the Pension Plan and these costs are charged to the Statement of Financial Activities as made.

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

c. Reserves Policy

The revaluation reserve represents the surplus over the original cost of the freehold land and buildings which occurred, less depreciation of the freehold buildings, following various valuations, the last of which was undertaken in March 2019.

The Board has agreed a policy of retaining a minimum £950,000 consolidated cash reserve (excluding designated reserves) as sufficient to support the cash management of the Group, considering the development of future projects, and in order to achieve the growth aspirations of the Group’s 2020/2025 Strategic Guide. This reserve provides immediate cash for working capital, including the fluctuating demands of development. Additionally, for the charity alone, the cash reserve policy is to be maintained at a minimum of the average monthly outgoings, which for 2021/22 was £410,000. At 31[st] March 2022 the actual consolidated cash reserve was £3,189,405, and for the charity alone was £1,118,176, both achieving the policy requirements.

In considering medium term risks the Board have agreed that unrestricted funds (including property but net of social housing grant and borrowing) should be a minimum of 6 months operating cost which at 31[st] March 2022 was £2,460,000. Actual unrestricted funds equalled £12,999,963 providing strong reassurance of financial stability.

The Board also tracks a measure of Income Security, requiring the proportion of budgeted income considered secure to be >80% of the overall budget. Based on recent performance, budgeted accommodation and contract income are considered secure. The Income Security Measure for 2021/22 is 96%.

d. Designated reserves policy

In addition to the consolidated cash reserves referred to above, the Board have determined to set aside the following cash resource to be designated as follows:

Sinking Fund:

£134k as a sinking fund reserve for major capital improvements in the years ahead.

Ten Percent Fund: £91k towards small scale projects which fulfil YMCA BCG’s charitable objects, and meet the following criteria:

• Activities which support Christian Mission

• Building improvements for specific projects

• Positive activities which divert away from antisocial behaviour

• Family activities which support good parenting

• Emergency respite childcare

“Thrive” Fund

£21k as fund to support young people progressing into Higher Education at University. £11k of this Fund was originally designated by the Board in September 2021 with a further £11k designated in March 2022. During the year, £1k of support was provided.

“Welfare” Fund £10k designated by the Board in March 2022 to provide financial assistance to our residents suffering from fuel poverty

As at 31 March 2022, unspent donations received total £10,511 for our “Moving Forward Fund” which have been treated as deferred income for future periods of expenditure. Our “Moving Forward Fund” provides financial support to our residents and service users move to independent living.

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YMCA BLACK COUNTRY GROUP

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

e. Material investments policy

Under the Articles and Articles of Association, the charity has the power to invest in any way the trustees wish. The Trustees, having regard to the liquidity requirements of daytoday operations and to the reserves policy, have, historically, operated a policy of keeping sufficient funds available on current account (to offset standard bank charges) and in an interest bearing account in order to generate a modest rate of return on such monies. The Charity currently does not have funds available to utilise for investment purposes; working capital requirements are met from the Charity’s current account.

f. Principal risks and uncertainties

YMCA BCG maintains a Corporate Register which is then “RAG” rated. This is scrutinised by the Finance Audit and Risk Committee on a regular basis and presented to the Board for approval. This is reviewed on a monthly basis by the Chief Officer team who are required to notify the Chair of the Board (normally via the CEO) of any new risks or any re-evaluated existing Retained (Net) Risk, which exceed the Acceptable Risk Score Threshold as identified on the Corporate Risk RegisterIn addition, the Senior Leadership Team are responsible for highlighting operational risks which are captured on an Operational Risk Register. This is periodically reviewed at Senior Leadership Team meetings with additional risks and changes to existing risks discussed.

g. Financial risk management objectives and policies

The Trustees have overall responsibility for the system of internal financial control, the effectiveness of which has been reviewed and reported on to the Trustees by the Finance, Audit and Risk SubCommittee. The principal elements of the system, which is designed to recognise the specific characteristics and objectives of the Association and the risks to which it is exposed, include:

• A clearly defined structure which delegates authority, responsibility and accountability, including responsibility for internal financial control to management;

• A well established budgeting and reporting function, with budgets and results reviewed at a senior level within the Association to provide a timely and regular monitoring of financial performance;

• An investment evaluation process to ensure Trustees’ approval for all major capital expenditure commitments, and;

• A regular review procedure carried out by the Association of its risk exposure and of the systems of internal financial control in place to mitigate those risks, with annual reports of findings to the Trustees.

Internal financial control, by its nature, provides only reasonable and not absolute assurance against material misstatement or loss.

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management

a. Constitution

The Charity is a company limited by guarantee and its governing document is its Articles of Association. It is an autonomous Charity, and an affiliated member of the National Council of Young Mens Christian Associations, which is the mechanism by which the individual YMCAs of England and Wales federate. In January 2020, the Board reaffirmed its affiliation, signing the new Membership Agreement of the federation.

For the sake of clarity, all references to Trustees are synonymous with Directors for purposes of Company law.

The Objects of the Charity are:

• To advance the Christian faith, including by:

• a) promoting a Christian environment inspired and motivated by the life, example and teaching of Jesus Christ, where people of faith and people of none can work together for the transformation of communities; and

• b) enabling people of all ages and in particular young people, to flourish through experiencing and responding to the love of God demonstrated by the life, example and teaching of Jesus Christ;

• To provide or assist in the provision in the interests of social welfare of facilities for recreation and other leisure time occupation for men and women with the object of improving their conditions of life;

• To provide or assist in the provision of education for people of all ages and in particular young people, with the object of developing their physical, mental or spiritual capacities;

• To relieve or assist in the relief of people of all ages and in particular young people, who are in conditions of need, hardship or distress by reason of their social, physical, emotional, spiritual or economic circumstances; and

• To provide residential accommodation, including Social Housing, for people of all ages and in particular young people, who are in need, hardship or distress by reason of their social, physical, emotional, spiritual or economic circumstances.

The Charity welcomes, serves and works with persons of all religious faiths and of none.

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YMCA BLACK COUNTRY GROUP

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

The Governance Committee are tasked with overseeing the process of Board skillgap analysis and the recruitment of new Trustees. The Committee have been particularly active in recent years overseeing the recruitment of new trustees as retiring trustees have completed their three terms of office. They have sought to develop a healthy diversity, ensuring always an appropriate match of skills and ethos, combined with an intentional desire to broaden gender, ethnicity and age profiles.

The Board welcomed four new Trustees, including Jon Rowe and Mark Fussell who returned to the Board having previously stepped down for a period of 1 year in line with the Articles. Both offer considerable experience in charity governance. Martin Shenton and Jayne Sargeant (22/23 year) join as Trustees with high level finance and youth work skills respectively. The Board place on record their thanks to Rob Hill who retired as Trustee in March 2022. Further recruitment is planned for 2022/23. Trustees are appointed by election at AGM or cooption, in accordance with the Articles.

At the time of this report’s approval, the make-up of the Board was as follows:

Sex		Age				Ethnicity
Female	4	20 - 40	1	60 +	7	BAME	2
Male	8	41 - 60	4			White	10

c. Organisational structure and decision-making policies

The Charity’s forward strategy, together with high level policy are approved by the Board. The Chief Executive Officer is responsible to the Board for the operational implementation, delivered through Chief Officers, and a wider Senior Leadership Team.

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YMCA BLACK COUNTRY GROUP

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

Chief Officer Structure and Wider Senior Leadership Team Responsibilities

d. Group Subsidiaries

YMCA BCG is the sole member of two charitable subsidiaries, YMCA Walsall, and YMCA Wolverhampton. Each delivers against objects consistent with YMCA BCG for their designated geographical areas. YMCA Wolverhampton additionally takes prime responsibility for the Group’s Ofsted registered childcare provision.

All present Trustees are also Trustees of these two subsidiary charities.

Trustees are also Directors of an associate company West Bromwich & District YMCA Community Enterprises and subsidiary company YMCA Black Country Social Enterprises Limited, both of which are now dormant following the Group restructure effective from 1 April 2019.

e. Risk management

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finance of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

In July 2022, the Board approved the updated Risk Management Policy and Corporate Risk Register for the organisation in response to the Internal Audit of group-wide Risk Management.

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

f. Governance Members

Governance Members are members of the company under Company law, and appointed, as defined in the Articles. Governance members ensure the Charity remains faithful to its Christian foundation and charitable purposes, by:

• holding the Board to account at each Annual General Meeting, and

• appointing new trustee directors to the Board

Throughout the year, Governance Members are updated on the Charity’s progress, invited to project visits and special events, and where appropriately skilled, some participate on a number of the Charity’s Committees.

There are currently 19 Governance Members, and the Board plans to increase this to 50, to gain greater ownership of the Charity from across the Black Country.

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

g. Committee Structure

The Board delegate scrutiny to several standing Committees to provide efficient governance and effective use of Board time. Committees operates under terms of reference set by the Board.

Committee	Remit	Composition
		Trustees	Governance Mem.
Finance Audit & Risk 6/year	Finance policy, financial performance & organisational delivery, budget scrutiny corporate risk , internal audit	Geoff Stonyer (Ch.) Martin Shenton Jonathan Rowe Mark Fussell Jeremy Oakley (non- voting)	Eric Moore
Safeguarding 6/year	Safeguarding Policy, reports, incidents and claims, trends and actions	Geoff Stonyer (Ch.) John Welsby Jayne Sargeant	Hazel Bloxham
Governance Development 3/year	Governance code, Trustee succession, training & development	Seinde Balogun (Ch.) Jonathan Rowe
Capital Projects 3/year	Current and future capital development	Phil Walker (Ch.) Grace England Geoff Stonyer Jeremy Oakley	Eric Moore
Human Resources 2/year	HR & Ethos Policy, HR KPIs, employee relations and claims, trends and actions. GOR posts.	Anna Walsh (Ch.) Jeremy Oakley Jonathan Rowe
Health & Safety 2/year	Health & Safety Policy, reports, incidents & claims, trends and actions	Seinde Balogun (Ch.) Phil Walker
Executive Remuneration 1/year	Chief Officer remuneration, CEO supervision & review, Chief Officer appointments & succession	Anna Walsh (Ch.) Jonathan Rowe Jeremy Oakley (non- voting)

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(A company limited by guarantee)

YMCA BLACK COUNTRY GROUP

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

h. Internal Audit

During the 2020/21 financial year, the Finance, Audit & Risk Committee commissioned a series of internal audits, conducted by TIAA Ltd. The 4-stage grading system used includes; No Assurance, Limited Assurance, Reasonable Assurance and Substantial Assurance.

Income and Debtors	Reported in August 2021. Graded ‘Reasonable Assurance.’ An action plan is in place to reach‘Substantial Assurance.’
Estate Management	Reported February 2022, Graded ‘Reasonable Reassurance’. An action plan is in place to reach‘Substantial Assurance’.
Risk Management	Reported March 2022, Graded ‘Reasonable Reassurance’. An action plan is in place to reach‘Substantial Assurance’.

In addition, a Cyber Assurance – Vulnerability Scan was undertaken in August 2021 with no ‘urgent’ or ‘critical’ actions identified. ‘Serious’ vulnerabilities whereby intruders may be able to gain access to specific information were identified and were actioned immediately to remove the threat.

i. Equity, Diversity and Inclusion

Since the tragic murder of George Floyd in 2020, YMCA Black Country, together with YMCAs from across the Midlands Region, have participated in a collaborative working group to develop a proactively response which increases diversity and equity for Black, Asian and Minority Ethnic community members. In 2021/22, this work resulted in the creation of an approved Terms of Reference for the Working Group, the adoption of a Diversity Champion at Trustee level in each Midlands YMCA (including YMCA Black Country Group), a series of regional training courses for YMCA staff and Trustees on Diversity and Unconscious Bias, and participation in a regional staff EDI perception survey.

YMCA Black Country has built on the outcome of this work, creating an action plan in response to the results of the perception survey, and working towards and achieving the the new international standard ISO 30415 in Human Resource Management: Diversity and Inclusion. YMCA Black Country became the first YMCA in the world and only the second organisation in the world to achieve this standard.

In addition to the table provided of Trustee demographics at section b, the following table will be used as a benchmark for future years:

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

	Number	**Age **	Sex	Ethnicity
Senior Managers	16	16-35 1 36-55 11 56-65 1 66+ 3	Female 11 Male 5	BAME 2 White 14
Managers / Supervisors	26	16-35 10 36-55 11 56-65 5 66+ 0	Female 24 Male 2	BAME 5 White 21
Other Staff / Volunteers	178	16-35 90 36-55 58 56-65 26 66+ 4	Female 141 Male 37	BAME 60 White 118

The Governance Committee has been working to improve the Charity's response to EDI matters for the past few years, and are particularly pleased with the positive developments this year.

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Plans for future periods

At the time of completing this report, and with the country tentatively beginning to overcome the effects of the Coronavirus lockdown, the growing cost of living and fuel crises are giving cause for concern. Whilst our plans for the future remain cautiously optimistic, we are mindful that the ability of YMCA Black Country Group to deliver going forward will be dependent on Government action to cap fuel prices and respond to inflationary pressures to support charities.

The Connected Communities: 202025 strategic guide, continues to provide the helpful steer through this turbulent time, containing sufficient flexibility across the five areas of focus, to adjust to the changing environment. Specific initiatives will in the coming year include the following:The completion of City Gateway: Phase 2, to include a Community Hub and Retail area, and the Grand opening of the building as a whole.

• Start on site for the development of 26 units of young worker accommodation at 235 Hampstead Road, Sandwell.

• The completion of 14 units of Young Worker / Youth Professional Accommodation using building conversion principles, based at 53 Walsall Street, Wednesbury.

• The launch of the YMCA Black Country Childcare Curriculum following completion of the development, started in 2020/21.

• Expanding youth work provision in Wolverhampton, through support for The Way – Youth Zone, and the Holiday Activity Scheme.

• Re-engaging in delivery of the Talent Match programme in Walsall in partnership with Wolverhampton Voluntary Sector Council.

• Expanding the programme offer at the Glebe Centre.

• Empowering more young people through sponsorship and volunteering opportunities.

• Recruiting Ethos Reps to 80% of YMCA locations.

• Supporting World YMCA in the coordination of the devotional programme in World Council 2022.

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Regulatory Bodies and Statutory Controls

a. Charity Commission and Regulator of Social Housing

YMCA BCG recognises that good governance is essential to the success of a charity. In selecting a Code of Governance to adopt (see below), the Trustees considered their obligations to both the Charity Commission and the Regulator of Social Housing.

A self-assessment review of the Economic and Consumer Standards set by the Regulator of Social Housing took place in the Summer of 2021 undertaken by Chief Officers and nominated Trustees, which was later reported into the Board. Trustees remain confident that the charity remains compliant with the standards.

There were no serious incidents reportable to the Charity Commission or the Regulator of Social Housing during the year.

b. Code of Governance

Following a comparative review by the Governance development Committee, in March 2021 the Trustees adopted the Charity Code of Governance (2020) believing the revised format better suited the needs to the charity. Prior to this, the charity used the National Housing Federation Code of Governance (2015).

The Trustees acknowledge compliance with the Charity Code of Governance (2020) code, and have tasked the Governance Committee with the role of recommending remedial and improvement actions to the Board.

c. Fundraising Statement

Fundraising undertaken by the Charity for its charitable activities are carried out by employees or volunteers of the Charity. Funds raised outside of contracts and traded income are mainly sourced through charitable grants obtained through a rigorous process of application. Funds presently raised from voluntary donations are principally for specified purposes, namely the ‘Moving Forward Fund’ with funds raised designated to provide low cost resources to YMCA residents who are in the process of moving into independent accommodation; the Glebe centre, with donations raised for the operation of the centre, provision of food and clothing; and the ‘emergency fuel’ fund, with donations supporting YMCA residents who are struggling to meet their basic heat/lighting needs.

No fundraising has been undertaken on behalf of the YMCA Black Country Group (or its charitable subsidiaries) by a contracted third party individual or organisation.

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

d. Value for Money

A Value for Money Strategy has been developed in compliance with regulatory requirements.

YMCA BCG proactively engages with all of its service users whether this be through one to one support, service user meetings or satisfaction questionnaires to ensure that the services delivered are fit for purpose and outcomes achieved. Trustees receive presentations from service users throughout the year, and a report on service user consultation and engagement at its September meeting.

Contracted work won under competitive tendering situations is scrutinised against price and quality, with the need to offer and deliver best value to secure new contracted work. Exempt housing rents are now regularly scrutinised by Local Authorities to ensure they represent value for money. Traded services (e.g. Childcare, Gym, Café etc.) operates within the boundaries of local market forces to moderate price, and (for Childcare) our commitment to quality is judged by Ofsted.

The Finance Policy of YMCA BCG has clear levels of authority delegated to officers but with certain financial transactions based on value and type of expenditure requiring Board approval. Financial and non financial outputs and performance are scrutinised by the Group’s Finance Audit and Risk Sub Committee for variances. In addition, a Corporate Risk Register is maintained, updated and reviewed on a regular basis.

The Group structure has enabled all entities to benefit from cost savings achieved by way of Group wide procurement. Significant cost savings continue to be achieved in respect of insurance, audit and utility costs.

e. Safeguarding

The Safeguarding Committee is a well-established Committee comprising of Trustees, Governance Members, Designated Safeguarding Lead together with Designated Safeguarding Officers and which meets bi-monthly to scrutinise safeguarding incidents and to ensure compliance with legal and regulatory requirements including the reporting of incidents as they arise to the relevant authorities, including the Charity Commission.

f. Consideration of furthering the Charity’s Purposes for the Public Benefit

The Trustees have considered the general guidance on public benefit issued by the Charity Commission and believes that having reviewed the Charity’s activities undertaken to achieve its charitable objects, the Charity does indeed provide significant public benefit. Details of these activities are outlined in the Strategic Report above.

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YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (incorporating strategic report) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Statement of Trustees' responsibilities

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

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

• so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and

• that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.

Auditors

The auditors, WR Partners, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ J Oakley (Chair of Trustees) Date:

................................................ S C Clay (Chief Executive & Company Secretary)

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(A company limited by guarantee)

YMCA BLACK COUNTRY GROUP

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF YMCA BLACK COUNTRY GROUP

Opinion

We have audited the financial statements of YMCA Black Country Group (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, 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:

• give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 March 2022 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regreneration Act 2008 and the accounting direction for Private Registered Providers of Social Housing 2015.

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 United Kingdom, including the Financial Reporting Council'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 or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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YMCA BLACK COUNTRY GROUP

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF YMCA BLACK COUNTRY GROUP (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. 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. 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 course of 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.

Opinion on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustees' report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Trustees' report and the Strategic report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

• the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Page 32

(A company limited by guarantee)

YMCA BLACK COUNTRY GROUP

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF YMCA BLACK COUNTRY GROUP (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 on the basis of these financial statements.

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

• We reviewed the susceptibility of the charitable company's financial statements to material misstatement and identified the principal risks, implementing a series of testing procedures to provide us with sufficient comfort to issue our opinion.

• We reviewed the charitable company's regulatory environment to ensure we could conclude that it had acted in accordance with the framework relevant to the charitable company and its environment and identify any instances of non-compliance.

• We also assessed the charitable company's internal control procedures to ensure we could appropriately scrutinise these controls and establish whether our understanding of the control environment was sufficient to supplement our additional testing procedures.

• The engagement team consisted of a team that the engagement partner believes is equipped with the relevant level of technical and charitable company awareness to carry out our work to the required standard.

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.

Page 33

YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF YMCA BLACK COUNTRY GROUP (CONTINUED)

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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Malpass BA FCA (Senior statutory auditor) for and on behalf of

WR Partners

Chartered Accountants & Statutory Auditors Belmont House Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG

Date:

Page 34

YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

COMPANY STATEMENT OF COMPREHENSIVE INCOME AS AT 31 MARCH 2022

Note	2022 £	2021 £
Turnover 3	5,284,841	4,949,431
Operating Expenditure 5	(5,026,990)	(4,520,770)
Operating Surplus	257,851	428,661
Finance Income	406	2,654
Interest Payable	(74,300)	(58,252)
Surplus for the year	183,957	373,063
Total comprehensive income for the year	183,957	373,063

Page 35

YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AS AT 31 MARCH 2022

Turnover 3	6,758,161	6,437,021
Operating Expenditure 5	(6,763,312)	(5,759,566)
Operating Surplus/(Deficit)	(5,151)	677,455
Finance Income	406	2,654
Finance Payable	(74,300)	(58,252)
Surplus/(Deficit) for the year	(79,045)	621,857
Total comprehensive income for the year	(79,045)	621,857

Page 36

YMCA BLACK COUNTRY GROUP (A company limited by guarantee) REGISTERED NUMBER: 4116412

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022

Note Fixed assets Housing properties 11 Tangible assets 12 Current assets Stocks 13 Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Net assets excluding pension liability Defined benefit pension scheme liability 21 Total net assets	238 673,117 3,189,405 3,862,760 (2,150,755)	2022 £ 15,198,461 1,046,790 16,245,251 1,712,005 17,957,256 (4,471,277) 13,485,979 (79,271) 13,406,708	238 530,242 2,644,458 3,174,938 (1,208,426)	2021 £ 12,990,015 923,816 13,913,831 1,966,512 15,880,343 (2,290,226) 13,590,117 (104,364) 13,485,753

Page 37

YMCA BLACK COUNTRY GROUP (A company limited by guarantee) REGISTERED NUMBER: 4116412

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022

Note Charity funds Restricted funds Unrestricted funds Total funds	2022 £ 406,745 12,999,963 13,406,708	2021 £ 376,439 13,109,314
		13,485,753

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

J Oakley (Chair of Trustees) Date:

S C Clay

(Chief Executive & Company Secretary)

The notes on pages 43 to 61 form part of these financial statements.

Page 38

YMCA BLACK COUNTRY GROUP (A company limited by guarantee) REGISTERED NUMBER: 4116412

COMPANY BALANCE SHEET AS AT 31 MARCH 2022

Note Fixed assets Housing properties 11 Tangible assets 12 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Net assets excluding pension liability Defined benefit pension scheme liability 21 Total net assets	976,265 1,118,176 2,094,441 (1,824,160)	2022 £ 15,198,461 193,559 15,392,020 270,281 15,662,301 (4,471,277) 11,191,024 (79,271) 11,111,753	424,645 1,411,848 1,836,493 (1,715,975)	2021 £ 12,990,015 211,853 13,201,868 120,518 13,322,386 (2,290,226) 11,032,160 (104,364) 10,927,796

Page 39

YMCA BLACK COUNTRY GROUP (A company limited by guarantee) REGISTERED NUMBER: 4116412

COMPANY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022

Note Charity funds Restricted funds Unrestricted funds Total funds	2022 £ 27,482 11,084,271 11,111,753	2021 £ 27,482 10,900,314
		10,927,796

The company's net movement in funds for the year was £183,957 (2021 - £373,063).

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

J Oakley S C Clay (Chair of Trustees) (Chief Executive & Company Secretary) Date:

The notes on pages 43 to 61 form part of these financial statements.

Page 40

YMCA BLACK COUNTRY GROUP (A company limited by guarantee) REGISTERED NUMBER: 4116412

COMPANY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022

Group Statement of Changes in Equity

At 1 April Surplus for the year Transfers	Revenue Designated Revaluation Restricted Reserves Reserves Reserves Reserves 2022 2021 £ £ £ £ £ £ 9,091,857 1,186,775 2,830,681 376,439 13,485,752 12,863,896 49,403 158,754 - - 30,306 79,045 - 621,857 2,983 2,983 - - - - -
	9,144,243 1,025,038 2,830,681 406,745 13,406,708 13,485,753

Company Statement of Changes in Equity

At 1 April Surplus for the year Transfers	Revenue Designated Revaluation Restricted Reserves Reserves Reserves Reserves 2022 2021 £ £ £ £ £ £ 7,810,632 259,000 2,830,681 27,482 10,927,795 10,554,734 183,957 - - - 183,957 373,063 2,983 2,983 - - - - -
	7,997,572 256,017 2,830,681 27,482 11,111,753 10,927,797

Page 41

YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Note Cash flows from operating activities Net cash used in operating activities 17 Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Purchase of housing properties Net cash used in investing activities Cash flows from financing activities Cash inflows from new borrowing Repayments of borrowing Net cash provided by/(used in) financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 18	2022 £ 881,566 406 (221,909) (2,366,220) (2,587,723) 2,516,290 (265,186) 2,251,104 544,947 2,644,458 3,189,405	2021 £ 1,052,789 2,654 (83,159) (1,459,426) (1,539,931) - (83,402) (83,402) (570,544) 3,215,002 2,644,458

The notes on pages 43 to 61 form part of these financial statements

Page 42

YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. General information

YMCA Black Country Group is a private company limited by guarantee, registered in England and Wales. The charitable company's registered number and registered address can be found on the Company information page. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

The principal activity of the company is the provision of social housing.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006 and comply with the Accounting Direction for Private Registered Providers of Social Housing 2015, the Statement of Recommended Practice for Social Housing Providers (SORP) and the Housing and Registration Act 2008.

YMCA Black Country Group has prepared the financial statements in accordance with FRS102.

2.2 Turnover

Turnover represents rent and service charges receivable (net of losses from voids), revenue grants and charitable fees and donations.

2.3 Basis of consolidation

The financial statements consolidate the accounts of YMCA Black Country Group and all of its subsidiary undertakings ('subsidiaries').

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.

Page 43

YMCA BLACK COUNTRY GROUP (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.6 Tangible fixed assets and depreciation

Tangible fixed assets are carried at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Long-term leasehold property - Over the term of the lease - Fixtures and fittings 20-25% straight line - Office equipment 15% reducing balance - Computer equipment 33.3% straight line Major Components - See below

Major components in housing properties are to be treated as seperable assets and depreciated over their estimated useful lives as follows:

Buildings - 100 years Roof - 70 years Electrics - 40 years Windows/Doors/Bathrooms - 30 years Kitchen - 20 years Boiler - 15 years

2.7 Revaluation of tangible fixed assets

The company has adopted the revaluation model to revalue items of property, plant and equipment whose fair value can be measured reliably. The revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

The fair value of land and buildings is usually determined from market-based evidence by appraisal that is normally undertaken by professional qualified valuers. The fair value of items of plant and machinery is usually their market value determined by appraisal.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity.

2.8 Interest receivable

Interest of funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.

Page 44

(A company limited by guarantee)

YMCA BLACK COUNTRY GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.9 Operating leases

Rentals under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

2.10 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.11 Debtors

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

2.12 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.13 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

2.14 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 45

YMCA BLACK COUNTRY GROUP (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.15 Social Housing grants (SHG) and other grants

Government grants are recognised as revenue when the grant proceeds are received or receviable. Where a grant imposes specific future performance related conditions it is recognised as revenue when the performance-related conditions are met. A grant received before the revenue recognition criteria are satisfied is recognised as a liability. Where government grant is provided for the construction of housing properties with a specific scheme, then the performance related condition is met when the construction of the housing properties is complete.

2.16 Pensions

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in the Consolidated statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

YMCA Black Country Group 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 Black Country Group.

As described in note 21 YMCA Black Country Group has a contractual obligation to make pension deficit payments over the period to April 2027, accordingly this is shown as a liability in these accounts. In addition, YMCA Black Country Group is required to contribute to the operating expenses of the Pension Plan and these costs are charged to the Statement of Comprehensive Income as made.

Page 46

(A company limited by guarantee)

YMCA BLACK COUNTRY GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.17 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that 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 funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

2.18 Gift Aid payments

Gift aid paments are charged as distributions of reserves in accordance with the guidance included in the institute of Chartered Accountants technical release 'Guidance on donations by a company to its parent charity'.

2.19 Critical accounting estimates and areas of judgment

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

Critical accounting estimates and assumptions:

The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. In the opinion of the Trustees there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Page 47

YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

3. Turnover, Operating Costs and Operating Surplus

Group Accommodation Community Activities Donations Other Income Furlough Income Total Company Accommodation Community Activities Donations Other Income Furlough Income Total Other Income & Expenditure Other Income & Expenditure Expenditure from lettings Expenditure from lettings	2022 2022 2022 2021 2021 2021 Turnover Operating Operating Turnover Operating Operating £ Expenses Surplus £ Expenses Surplus £ £ £ £ 4,873,812 (3,726,815) 1,146,997 5,123,670 (3,674,764) 1,448,906 1,664,491 (3,036,497) (1,372,006) 1,216,099 (2,084,802) (868,703) 49,342 - 49,342 41,266 - 41,266 163,606 - 163,606 (133,956) - (133,956) 6,910 - 6,910 189,942 - 189,942
	6,758,161 (6,763,312) (5,151) 6,437,021 (5,759,566) 677,455
	2022 2022 2022 2021 2021 2021 Turnover Operating Operating Turnover Operating Operating £ Expenses Surplus £ Expenses Surplus £ £ £ £ 2,790,596 (2,099,213) 691,383 2,802,534 (2,365,381) 437,153 - - 398,224 (2,927,777) (2,529,553) 546,460 (2,155,389) (1,608,929) 9,404 - 9,404 13,507 - 13,507 2,085,536 - 2,085,536 1,516,701 - 1,516,701 1,081 - 1,081 70,229 - 70,229
	5,284,841 (5,026,990) 257,851 4,949,431 (4,520,770) 428,661

Page 48

YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

4. Turnover from lettings Income from lettings Rent receivable Net Rent Receivable Supporting people - grant Supported lodgings Total income from lettings Rent Losses from voids
	Group Group Company Company £ £ £ £ 2022 2021 2022 2021 3,725,841 3,634,810 2,559,719 2,553,789
	122,500 140,000 87,500 105,000 143,377 143,745 143,377 143,745
	3,991,718 3,918,555 2,790,596 2,802,534
	896,560 464,731 810,238 325,070

Page 49

YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

5. Operating costs

People Related Premises Related Office Costs Direct Activity Costs Other Direct Expenses Other Operating Overhead Recharges Bad Debts Bank Charges Travel Costs Programme Delivery Salaries NIC Pension Depreciation Total Operating Costs from Lettings Other Operating Costs Total Operating costs	Group Group Company Company 2022 2021 2022 2021 £ £ £ £ 83,053 36,006 18,730 11,763 788,146 788,778 653,512 554,931 67,084 34,662 28,578 28,980 158,691 339,955 54,528 289,405 - 89,212 - - 135,312 71,588 31,624 21,967 - - 964,158 722,200 42,683 107,809 22,520 82,145 6,789 781 - - 4,349 1,165 - - 299,092 218,773 - - 1,899,277 1,611,810 270,952 446,025 105,946 98,405 31,310 34,720 39,131 40,244 8,841 13,766 97,264 235,579 24,462 159,481
	3,726,815 3,674,767 2,109,215 2,365,383 3,036,497 2,084,799 2,927,777 2,155,387
	6,763,312 5,759,566 5,036,992 4,520,770

6. Finance income

Bank Interest	Group 2022 £ 406 406	Group 2021 £ 2,654 2,654	Company 2022 £ 406 406	Company 2021 £ 2,654
				2,654

Page 50

YMCA BLACK COUNTRY GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. Interest payable

Group 2022 £ Loan Interest payable 74,300 74,300 No interest was capitalised in the year (2021: £Nil).	Group 2021 £ 58,252 58,252	Company 2022 £ 74,300 74,300	Company 2021 £ 58,252
			58,252

8. Net Income/(Expenditure)

This is stated after charging:

	2022	2021
	£	£
Depreciation of tangible fixed assets	98,935	102,768
Depreciation of housing properties	157,774	151,666
Auditors remuneration	20,250	19,200
Operating lease rentals	416,573	411,730

During the year, no Trustees received any remuneration (2021: £Nil). During the year, no Trustees received any benefits in kind (2021: £Nil).

9. Staff costs

Wages and salaries Social security costs Contribution to defined contribution pension schemes	Group 2022 £ 3,260,010 212,964 83,527 3,556,501	Group 2021 £ 2,909,339 199,410 80,291 3,189,040	Company 2022 £ 1,631,684 128,327 53,238 1,813,249	Company 2021 £ 1,743,554 135,725 53,813
				1,933,092

Included in the above, are £Nil (2021: £13,127) redundancy payments paid out to 0 employees (2021:1 employee).

Page 51

(A company limited by guarantee)

YMCA BLACK COUNTRY GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

9. Staff costs (continued)

The average number of persons employed by the company during the year was as follows:

	Group	Group
	2022	2021
	No.	No.
Average staff numbers	196	178

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

		Group	Group
		2022	2021
		No.	No.
In the band £70,001	- £80,000	1	1

Directors' and Senior Executives Emoluments

Emoluments Pension contributions	Group 2022 £ 274,941 36,038 310,979	Group 2021 £ 238,887 15,463 254,350	Company 2022 £ 88,122 19,599 107,721	Company 2021 £ 63,798 10,347
				74,145

The chief executive is included in the YMCA Pension Scheme and is an ordinary member of the scheme. No enhanced or special terms apply. During the period the total amount contributed to the individual pension arrangement was £19,599 (2021: £10,347).

10. Taxation Status

YMCA Black Country Group is a company limted by guarantee, a registered charity and is registered with the Regulator of Social Housing under the Housing and Regeneration Act 2008.

The Company has charitable status for tax purposes and no liability to corporation tax arises.

Page 52

YMCA BLACK COUNTRY GROUP (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
11. Housing Properties Group and Company Cost At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021	Housing Properties £ 13,888,725 2,366,220 16,254,945 898,710 157,774 1,056,484 15,198,461 12,990,015

Page 53

YMCA BLACK COUNTRY GROUP (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

12. Tangible fixed assets

Group

Cost or valuation At 1 April 2021 Additions Disposals At 31 March 2022 Depreciation At 1 April 2021 Charge for the year On disposals At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021	Long-term leasehold property £ 1,245,394 9,363 (485,228) 769,529 599,220 54,008 (488,850) 164,378 605,151 646,174	Fixtures and fittings £ 911,418 39,075 (366,605) 583,888 699,285 36,528 (321,605) 414,208 169,680 212,133	Office equipment £ 167,629 - (2,800) 164,829 155,614 3,998 (2,800) 156,812 8,017 12,015	Computer equipment £ 74,552 7,176 (52,272) 29,456 71,022 4,401 (51,856) 23,567 5,889 3,530	Other fixed assets £ 49,964 166,295 44,055 260,314 - - 2,261 2,261 258,053 49,964	Total £ 2,448,957 221,909 (862,850) 1,808,016 1,525,141 98,935 (862,850) 761,226 1,046,790 923,816

Page 54

(A company limited by guarantee)

YMCA BLACK COUNTRY GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

12. Tangible fixed assets (continued)

Company

Cost or valuation At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 Stocks Food for nurseries	Long-term leasehold property £ 157,036 - 157,036 6,005 5,168 11,173 145,863 151,031	Fixtures and fittings £ 295,352 7,838 303,190 237,644 17,850 255,494 47,696 57,708	Computer equipment £ 22,280 - 22,280 19,166 3,114 22,280 - 3,114 Group 2022 £ 238	Total £ 474,668 7,838
				482,506
				262,815 26,132
				288,947
				193,559
				211,853
				Group 2021 £ 238

13. Stocks

Page 55

(A company limited by guarantee)

YMCA BLACK COUNTRY GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

14. Debtors

Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income	Group 2022 £ 436,859 - 23,334 212,924 673,117	Group 2021 £ 383,258 - 28,857 118,127 530,242	Company 2022 £ 347,742 468,731 3,370 156,422 976,265	Company 2021 £ 308,995 16,781 28,401 70,468
				424,645

Provisions for bad and doubtful debts included above for the group are £132,235 (2021: £167,705).

Provsions for bad and doubtful debts included above for the company are £104,645 (2021: £142,824).

Rent arrears included within the above for the group are £432,116 (2021: £496,477) and for the company are £343,426 (2021: £414,547).

15. Creditors: Amounts falling due within one year

Bank loans Trade creditors Amounts owed to group undertakings Other taxation and social security Other creditors Accruals and deferred income	Group 2022 £ 151,167 345,986 - 68,024 174,226 1,411,352 2,150,755	Group 2021 £ 81,114 480,470 - 27,104 166,173 453,565 1,208,426	Company 2022 £ 151,167 276,406 - 36,147 160,518 1,199,922 1,824,160	Company 2021 £ 81,114 436,827 678,139 23,302 160,461 336,132
				1,715,975

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

16. Creditors: Amounts falling due after more than one year

Group 2022 £ Bank loans 4,471,277 Included within the above are amounts falling due as follows: Group 2022 £ Between one and two years Bank loans 153,228 Between two and five years Bank loans 468,185 Over five years Bank loans 3,849,864		Group 2021 £ 2,290,226 Group 2021 £ 83,582 174,687 2,031,957	Company 2022 £ 4,471,277 Company 2022 £ 153,228 468,185 3,849,864	Company 2021 £ 2,290,226
				Company 2021 £ 83,582
				174,687
				2,031,957

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Repayable by instalments Payable or repayable by instalments	Group 2022 £ 3,849,864 3,849,864	Group 2021 £ 2,031,957 2,031,957	Company 2022 £ 3,849,864 3,849,864	Company 2021 £ 2,031,957
				2,031,957

Bank loans totalling £4,622,444 (2021: £2,371,340) are secured by fixed charge over the freehold property and assets of the company.

Bank loan term of repayment are monthly and interest is payabe at 2.25% above the base rate of the Bank of England over the principal amount.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

17. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/(expenditure) for the year (as per Statement Activities) Adjustments for: Depreciation charges Interest income Decrease/(increase) in debtors Increase in creditors Decrease in provisions Net cash provided by operating activities 18. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 19. Analysis of changes in net debt Cash at bank and in hand Debt due within 1 year Debt due after 1 year	of Financial At 1 April 2021 £ 2,644,458 (81,114) (2,290,226) 273,118	Group 2022 £ (79,045) 256,709 (406) (142,875) 872,276 (25,093) 881,566 Group 2022 £ 3,189,405 3,189,405 Cash flows £ 544,947 (70,053) (2,181,051) (1,706,157)	Group 2021 £ 621,857 254,434 (2,654) 158,199 46,093 (25,140) 1,052,789 Group 2021 £ 2,644,458 2,644,458 At 31 March 2022 £ 3,189,405 (151,167) (4,471,277) (1,433,039)

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YMCA BLACK COUNTRY GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. Capital commitments

	Group	Group	Company	Company
	2022	2021	2022	2021
	£	£	£	£
Contracted for but not provided in these
financial statements
Acquisition of tangible fixed assets	433,534	989,665	433,534	989,665

21. Pension commitments

Defined Contribution Scheme

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £83,527 (2021: £80,291).

Defined Benefit Scheme

YMCA Black Country Group 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 Black Country Group 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. YMCA Black Country Group has been advised that it will need to make monthly contributions of £2,035 from 1 May 2021. This amount is based on the current actuarial assumptions (as outlined above) and may vary in the future as a result of actual performance of the Pension Plan. The current recovery period is 8 years commencing 1st May 2021.

In addition, YMCA Black Country Group 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 Black Country Group may be called upon to pay in the future.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Reconciliation of opening and closing provision

Provision at the start of the year Deficit contribution paid	2022 2021 £ £ 104,364 129,504 (25,093) (25,140)
	79,271 104,364

22. Operating lease commitments

At 31 March 2022 the Group and the company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years	Group 2022 £ 343,071 508,161 364,513 1,215,745	Group 2021 £ 395,180 493,192 162,500 1,050,872	Company 2022 £ 216,271 354,127 32,000 602,398	Company 2021 £ 136,880 269,800 -
				406,680

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

23. Related party transactions

YMCA Black Country Group which is registered in England and Wales is the ultimate parent undertaking of:

YMCA Wolverhampton - a company limited by guarentee and a registered charity in England and Wales.

YMCA Walsall (Previously trading as First Base Walsall) - a company limited by guarentee and a registered charity in England and Wales.

None are registered with the Regulator of Social Housing.

Transactions with Non-Regulated Subsidiaries
	2022	2021
	£	£
Rental Expenditure
YMCA Wolverhampton	58,425	115,248
YMCA Walsall	30,500	30,709
Management Charge Income
YMCA Wolverhampton	364,139	289,490
YMCA Walsall	40,910	90,588
Rental Income
YMCA Wolverhampton	109,514	97,852
YMCA Walsall	60,536	60,000
Premises Related Income
YMCA Wolverhampton	44,350	43,784
YMCA Walsall	40,460	6,360

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