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2022-04-30-accounts

REGISTERED COMPANY NUMBER: 04336719 (England and Wales) REGISTERED CHARITY NUMBER: 1090981

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022 FOR YMCA FAIRTHORNE GROUP

Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

YMCA FAIRTHORNE GROUP

Page
Reference and Administrative Details 3
Introduction of the Chair of Trustees and Chief Executive 4 to 6
Report to the Trustees (including strategic report) 7 to 14
Report of the Independent Auditors 15 to 17
Consolidated Statement of Financial Activities 18
Consolidated and Charity Balance Sheet 19
Consolidated Statement of Cash Flows 20
Notes to the Consolidated Statement of Cash Flow 21
Notes to the Financial Statements 22 to 37

Page 2

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 30 APRIL 2022

YMCA FAIRTHORNE GROUP

PRESIDENT EMERITUS Mr M Tilbury
TRUSTEES Mr D A Bennett (appointed 22.12.2021)
Dr M H Cranston
Ms S M Hannington
Ms C J Hillier (resigned 31.03.2022)
Ms N Kinally
Mr G Muvuti (appointed 07.06.2021)
Ms J A Rainford (resigned 13.12.2021)
Mr T J Titheridge
Mr P M Youngs
COMPANY SECRETARY Ms P J Spicer
SENIOR MANAGEMENT TEAM Mr C Hand
Ms P J Spicer
Ms S Arscott (left 09.06.2022)
Ms E Corina
Mr J Hooper
Mr C Heighway
REGISTERED OFFICE Fairthorne Manor
Botley Road
Curbridge
Southampton
Hampshire
SO30 2GH
REGISTERED COMPANY 04336719 (England and Wales)
NUMBER
REGISTERED CHARITY 1090981
NUMBER
AUDITORS Hopper Williams & Bell Limited
Highland House
Chandler's Ford
Eastleigh
Hampshire
SO53 4AR
BANKERS Barclays Bank plc
1 Churchill Place
London
E14 5HP

Page 3

YMCA FAIRTHORNE GROUP

INTRODUCTION BY THE CHAIR OF TRUSTEES AND CHIEF EXECUTIVE FOR THE YEAR ENDED 30 APRIL 2022

The second year of coronavirus began with public health restrictions remaining in place. Rules limiting children and young people’s access to socialisation, education and leisure meant in broad terms that this group continued to be disproportionately negatively impacted by restrictions compared to adults. Children under 5 had lived the greater part of their lives, and in some cases all of their lives, in a pandemic. School trips which are key to children’s development of self-esteem, confidence and friendships remained proscribed until the summer of 2021, and young people living in our accommodation who had already experienced homelessness and isolation faced yet more worry and uncertainty about their future.

As restrictions lifted there was at first a notable absence from our childcare settings of the children who would most benefit from structured support and safeguarding oversight. When children began to return it was clear their communication and self-regulation skills had not developed in line with levels for the same ages seen pre-pandemic. The young people living in our housing who had experienced enormous fear and anxiety when isolated during lockdowns, told us that they were really worried about resuming activity in the outside world as their education and employment opportunities began to open up.

Within YMCA the virus continued to have an impact on staff absences for self-isolation. A staff survey carried out in April 2022 indicated just over half our workforce had tested positive for COVID-19 over the 2-year period since 2020, with the highest period for infections being January to March 2022. This data is in line with the national picture and demonstrates the pandemic was far from over at the end of our financial year. Despite these challenges we worked our hardest to keep services open, safe and impactful, with frequent reviews of risk assessments, operating procedures and quality systems.

Our focus on delivery of our strategic plan remained, to ensure we helped identify and met the needs of the children, young people and families in communities served by YMCA. The key achievements described in this annual report are our response to community needs in a changing environment and uncertain future. We would like to highlight 4 achievements we think best represent this.

In early autumn 2021 we were approached by Leigh Park’s long established community charity Park Families who were facing financial and operational challenges so serious their immediate future was at risk. We rapidly mobilised to support them and brought the charity into the group as a subsidiary. Since then we have been working with the team to achieve sustainability and are really pleased to have grown the number of YMCA childcare settings from 14 to 18, significantly extending our reach and impact in Hampshire.

During the major school holidays, we were successful in applying for funds to deliver the Holidays And Food programme funded by the Department for Education. This programme provided exciting activities and tasty meals free of charge to children in receipt of benefits-related free school meals, or who were experiencing other forms of hardship. We worked with families at Fairthorne Manor, Portsmouth and Isle of Wight and delivered places to 227 children who would not otherwise have had the opportunity to join in with a playscheme.

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YMCA FAIRTHORNE GROUP

INTRODUCTION BY THE CHAIR OF TRUSTEES AND CHIEF EXECUTIVE FOR THE YEAR ENDED 30 APRIL 2022

At the end of the previous year we had been successful in our application to deliver Kickstart work placements to young people aged 16-25 in long-term receipt of universal credit. We took the view that this was a fantastic opportunity to deliver a genuine youth development programme and established brand-new supportive workplace opportunities in a range of areas including early years, children’s programme, administration, maintenance and estates management. The young people we met were from a variety of backgrounds and the majority had experienced challenges accessing employment, most commonly they told us they experienced anxiety and low self-confidence. Each young person had a workplace buddy and was offered a mentor to meet with every month during their placement where they could talk about their feelings and their plans for the future. We successfully placed 66 young people into a work placement and it is particularly pleasing to see that so far 22 of those young people have moved into permanent employment at YMCA as job vacancies opened up. Kickstart recruitment finished in March 2022 and the remaining young people will complete their placements this current year.

In June 2021 we were able to once again deliver the national Young Carers Festival. This critical weekend provides space, voice, support and loads of fun for young carers from across the country. Young carers are a group who have been hit particularly hard by COVID-19, not only because they have someone clinically vulnerable who they help protect, but because they are often isolated from their peers as a result of their caring responsibilities and the impact of COVID-19 meant they felt more alone than ever. We had to cancel 2020’s festival but were adamant that as soon as it was safe to do so, we would resume this important event. We were really pleased to welcome 100 young carers to a scaled down event and for 2022 we were so excited to be able to scale back up and see young carers returning in pre-pandemic numbers.

As the operating restrictions caused by COVID-19 continued to impact our finances, we were grateful to benefit from furlough until the scheme ended in September 2021. The ability to apply furlough to part time working meant we were able to resume our wider operations sustainably by returning our central support services in stages as service delivery grew. We sought feedback from staff about what positive experiences we might retain from home working then regrouped to define how we might all benefit from agility. We established flexible working spaces at YMCA Fairthorne Manor and YMCA Eastleigh alongside home working for those able to do so.

The board of trustees also experienced change as we said a fond farewell to our chair Judy Hillier who has led us for the past 3 years and welcomed new chair Dave Bennett who took over in February 2022. Over the next year Dave and the board will lead YMCA into the next phase of our strategic plan.

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YMCA FAIRTHORNE GROUP

INTRODUCTION BY THE CHAIR OF TRUSTEES AND CHIEF EXECUTIVE FOR THE YEAR ENDED 30 APRIL 2022

Significant achievements from the period include:

As we enter the new year it is heart-warming to see children and families once again thriving at the YMCA. Our sites are filled with the noise of happy children and young people chatting. The focus for this year will be on intensive community engagement, supporting cohesion through co-production in our community branches and offering a plethora of volunteering opportunities at every YMCA programme.

Dave Bennett and Chris Hand

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YMCA FAIRTHORNE GROUP

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022

Purpose and Charitable Objectives

The Trustees, who are also directors of the charity, submit their annual report (including the strategic report) and audited financial statements for the 12 month period ending 30 April 2022. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

YMCA Fairthorne Group is a community-based charity whose purpose is “We believe everybody should have the opportunity to lead happy, healthy lives”. Our strategy is to establish YMCA places in close partnership with local communities and ensure the delivery of programmes that meet the needs of children, young people, and families.

Our Charitable Objects as defined by our Articles of Association are:

Public Benefit

The Trustees confirm that they have complied with section 4 of the Charities Act 2006, to have due regard to the Charity Commissioners' general guidance on public benefit, 'Charities and Public Benefit'. The direct benefits that flow from our objectives are:

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YMCA FAIRTHORNE GROUP

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022

Strategic Plan

Our strategic plan describes our desire to become the charity of choice for local communities by achieving four key strategic goals:

Underpinning the principle of People, Places, Programmes is our Theory of Change which tests progress in achieving our strategic goals, and ultimately our Purpose.

During the next year the Trustees will undertake a full review of the strategic plan to establish the next phase for YMCA Fairthorne Group.

The YMCA Way

The YMCA Way describes how we design and deliver programmes that achieve our Purpose. It consists of four equally weighted elements. The elements in combination generate quality programmes, offering opportunities for individual and community growth, thereby contributing to our Purpose “we believe that everybody should have the opportunity to lead healthy, happy lives”.

Values

Welcoming, Active, Listening, Inspiring, Caring, Exciting.

Community led

Community-led means we undertake activities the community wishes us to do, and wishes to be involved in.

Evidence led

We are led by evidence to create, change or improve activities that contribute to our Purpose and strategic objectives.

Our Behaviours

We model behaviours derived from our values through all interactions with children, families, the community, and each other.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022

YMCA FAIRTHORNE GROUP

Achievements and Activities

"The Very Best Start In Life"

994,106 hours of childcare and early years education were provided to 2,159 children attending our 18 early years settings at Andover, Barncroft, Dunsbury Way, Eastleigh, Fairthorne Manor, Gosport, Millbrook, New Milton, Newport, Newtown, Portsea, Shanklin, Sharps Copse, Townhill, Warren Park, Weston, Whale Island and Woolston.

Nursery managers worked in line with The YMCA Way to co-produce and then roll out a new YMCA early years pedagogy and curriculum over the summer of 2021. We invested further into early years quality by forming a new Early Years Quality Team to lead on standardisation and support at all settings, and refurbishing a former Children’s Centre building in an area of high deprivation in Gosport into a brand new location for our long-established St Vincent Nursery. After a year of parents and carers dropping off and picking up outside nursery settings, we were really pleased and excited to be able to welcome them back inside as COVID-19 restrictions eased.

The Best School Holidays

3,074 school aged children benefitted from exciting and engaging school holiday activities at our Daycamps programmes at Fairthorne Manor, Shanklin, and Portsmouth, with a total of 18,919 sessions delivered. We were successful at all locations in securing grants from the Department of Education’s Holidays And Food scheme which funded places for 227 children over the year from families in receipt of benefits related free school meals or who faced adversity. During the year, delivery was adapted for each holiday period to mitigate the risks presented by COVID-19 including grouping children in bubbles and outdoor based drop off and collection.

Exciting Group Activities and Residentials

9,299 people attended day or residential group activities at our sites at Fairthorne Manor in Hampshire and Winchester House in Isle of Wight. COVID-19 restrictions meant that group residentials could not reopen until summer 2021 so Fairthorne Manor in particular adapted its offer for school groups to make day visits so that children would not miss out on their school trip. It was really encouraging when residential visits were once again allowed to see numbers begin to bounce back and of the 9,299 people attending, 2,522 stayed residentially. Bookings for 2022 onwards are strong and we expect to see a return to pre-COVID-19 numbers alongside the day bookings option we have built over the past 2 years.

Accommodation-based Youth Support

357 young people received support while living in YMCA housing in Basingstoke, Southampton and Isle of Wight. Southampton saw 185 young people benefit and The Lodge in Isle of Wight which is a specialist service for young, homeless single mothers and their infant/s helped 22 families in the year. A total of 124 young people successfully moved onto independent living.

In Southampton a group of young people via a Community Art project created their own artwork that was displayed at the John Hansard Gallery for a number of weeks. We also held an inaugural Eid Celebration at Fairthorne Manor for residents.

In Basingstoke work continued to implement the learning from the University of East London research with residents and staff trained to provide peer-peer support in wellbeing.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022

YMCA FAIRTHORNE GROUP

Kickstart

66 young people aged 16-24 who had been in long term receipt of universal credit were successfully supported into work placements across YMCA services, including childcare, catering, housekeeping maintenance, estates and administration. Each young person was supported through their placement by their line manager, a buddy and a mentor who helped them work through their next steps of career planning. Of the 66 young people, 22 went on to successfully apply for permanent employment and with the last placements due to complete in November 2022 we expect this number to grow.

Community Programmes

We delivered, enabled and hosted a range of community activities through the year at our branches including Food Banks, AA meetings, baby and toddler groups, messy play, fitness classes and healthy lifestyle meetings. Below are some examples:

Community food programmes continued at Andover with their community cabin providing food, drinks and snacks at affordable prices, and their surplus food collection scheme enabling 255 food boxes to be distributed to local people during the year. Once again YMCA ran a Reverse Advent campaign at Christmas 2021 and supported 200 families experiencing hardship by providing them with Christmas hampers and food vouchers.

Winchester House, in Shanklin, worked in partnership with local CIC On Yer Bike to collect donated bicycles which the On Yer Bike team refurbished and held 2 sales in December enabling 25 local families to provide their child with an affordable bike for Christmas.

Isle of Wight Young carers worked with 331 young carers providing respite activities despite the many challenges of coping with COVID-19. The calendar year ended with a big Christmas celebration where over 100 young carers and their families took part in fun activities and a buffet lunch.

Andover delivers a weekly youth group where young people take part in positive activities and a monthly community eat together.

At Fairthorne Manor, we saw a total of 16,260 visitors to the site. Families with young children attended Treetots adventurous outdoor activities, the Family Park provided over 1,000 camping pitches of affordable family holidays in a year where being outdoors was a high priority, and access to the River Hamble for launch and river craft hire was once again hugely popular.

Park Families: A New Community Branch

In September 2021, we merged with the early years charity Park Families who have 5 delivery bases across Leigh Park and Havant and established a ready-made community branch renamed YMCA Park Families. Park Families have 4 childcare settings, a Hub supporting local charities, and a former Sure Start Centre used as a community facility.

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YMCA FAIRTHORNE GROUP

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022

Fundraising

A total of £535k was received in the form of grants:

The Trustees would like to thank the following organisations which have supported the work of YMCA Fairthorne Group during the course of the financial period:

ASDA Community Champions Isle of Wight ASDA Community Champions Southampton Basingstoke & Deane Borough Council BBC Children in Need Bishops Waltham Rotary Club British Science Association Co-operative Group Daisie Rich Trust Douglas Wood Trust Eastleigh Borough Council+A327 Emsworth Community Land Trust Gosport Borough Council Hampshire and Isle of Wight Community Foundation Hampshire County Council Havant Borough Council Highwood HMRC Isle of Wight Council LandAid Metro Bank OFGEM Portsmouth City Council Southampton City Council Test Valley Council The Misselbrook Trust The National Lottery Community Fund The WightAID Foundation Wave 105: Cash for Kids Wildern Sports Centre Winchester City Council YMCA England and Wales

No external professional fundraiser or commercial participator was used during this period. Fundraising activities were monitored by the fundraising team, including ensuring that there were no unreasonable intrusions or approaches made in raising funds, either directly or on behalf of the organisation. No complaints were received in relation to fundraising.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022

YMCA FAIRTHORNE GROUP

Plans for Future Periods

Housing Strategy

A new Housing Strategy was ratified 6th September 2021 and its translation into operational delivery is a key priority for 2022 onwards.

People Strategy

We will be working hard to implement our agreed People Strategy, which was developed in the light of achieving IIP, the challenges presented by COVID-19 and the opportunities and learning from agile working. The strategy has a strong focus wellbeing, establishing YMCA as a supportive employer of choice, and opportunities for volunteering.

Inclusion for Under 5s

Hampshire, Portsmouth and Isle of Wight CCG have provided grant funding to support work to ensure inclusion of children under 5 at risk of being left behind because of the impact of COVID-19. The early years quality team are working through the SENCOs at 9 YMCA early years settings to implement evidence-based methods of working and to track change.

New Community Branch Pipeline

The next sites for new YMCA community branches have been identified.

Holidays and Food

The Holidays and Food grants have been transformed into a 3 year framework funding agreement in Hampshire and Isle of Wight and we have been successful in securing longer term funding to provide free holiday activities and nutritious meals to children in adverse circumstances, along with food education and signposting for services that families can benefit from.

Community Programmes

The greatest focus over the next year, in the post-COVID-19 world, will be on explosion of community programmes in all possible YMCA locations. A new multi-level leadership team is working hard to identify opportunities for co-production and community engagement and will be driving significant growth in volunteering opportunities.

Financial Review

The Trustees note that the year end resulted in income decreasing by £1,817k against the prior year. Like for like, income would have dropped below 2019 levels primarily as a result of the impact of COVID-19. As previously indicated, the impact of COVID-19 has been significant and this is demonstrated in the financial accounts as reported. The charity worked hard to minimise the impact of COVID-19 through tight cost control and a restructure across Fairthorne Manor, Central Support and Winchester House. In addition fundraising and government grants of £535k went a long way to limit the impact on the bottom line, resulting in a reported deficit of £773k.

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YMCA FAIRTHORNE GROUP

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022

Risk Management

Our Risk Policy is a regular focus of the Board. Risk is the threat or possibility that an action or event (or sometimes inaction) will adversely affect an organisation's ability to achieve its objectives. The aim of our risk policy is to enable YMCA Fairthorne Group to achieve our mission. Therefore, we accept those risks to which we must subject ourselves to deliver our mission. We strive to:

We aim to understand, document and review all significant risks which arise from our ongoing activities. We do this by making and regularly updating a business risk analysis and following up all matters which require attention. Where controls can be created or improved in a practical and cost-effective manner, these are implemented. Senior members of staff are contractually obliged to report any major risk to the Board.

Our operations are subject to regular review by a number of external agencies, including Ofsted, Environmental Health agencies, auditors and others.

Reserves Policy

The Trustees note that an appropriate level of free reserves should be maintained to safeguard the obligations under all contracts and the needs of all the beneficiaries or users of the Fairthorne Group. In any circumstances, the charity must also have sufficient funds available to act as a responsible employer to all staff members. It has been agreed that the following factors need to be taken into consideration in fixing the levels of reserves:

Bearing in mind the considerations given above, it has been resolved that there should be a target of unallocated free reserves in the range of £200k - £800k.

Investments Policy

The Trustees have kept reserves as liquid as possible during the last year. This has been to ensure that the charity has been able to meet its obligations to creditors and staff by careful management of cash flow. The Trustees will continue to monitor the situation throughout the year. Specialist advice will be sought when required and will be reviewed by the Trustees.

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YMCA FAIRTHORNE GROUP

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022

Statement of Trustees’ Responsibilities

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

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

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

In so far as the trustees are aware:

The auditors, Hopper Williams & Bell Limited, will be proposed for re-appointment at the forthcoming Board Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 10 October 2022 and signed on the board's behalf by:

Mr D Bennett - Trustee

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YMCA FAIRTHORNE GROUP

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF YMCA FAIRTHORNE GROUP, YMCA FAIRTHORNE HOUSING AND PARK FAMILIES LIMITED FOR THE YEAR ENDED 30 APRIL 2022

Opinion

We have audited the financial statements of YMCA Fairthorne Group (the 'parent charity') and its subsidiaries (the 'group') for the year ended 30 April 2022 which comprise the Consolidated Statement of Financial Activities (incorporating an income and expenditure account), the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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YMCA FAIRTHORNE GROUP

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF YMCA FAIRTHORNE GROUP, YMCA FAIRTHORNE HOUSING AND PARK FAMILIES LIMITED FOR THE YEAR ENDED 30 APRIL 2022

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (including the group strategic report).

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

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement, the trustees 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 they 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

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

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YMCA FAIRTHORNE GROUP

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF YMCA FAIRTHORNE GROUP, YMCA FAIRTHORNE HOUSING AND PARK FAMILIES LIMITED FOR THE YEAR ENDED 30 APRIL 2022

Extent to which the audit was capable of detecting irregularities, including fraud

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. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

Use of our report

This report is made solely to the charity 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 charity s members those matters we are required to state to them in an auditor s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity s members as a body, for our audit work, for this report, or for the opinions we have formed.

Michaela Johns FCCA (Senior Statutory Auditor) Hopper Williams & Bell Limited (Statutory Auditor) Highland House Mayflower Close Chandlers Ford Eastleigh SO53 4AR

27/10/2022 Date ……………………………

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YMCA FAIRTHORNE GROUP

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 APRIL 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Charitable activities
4
Other
5
Total
EXPENDITURE ON
Charitable activities
6
Total
NET (EXPENDITURE)/INCOME
Transfers between funds
19
Other recognised gains/(losses):
Losses on revaluation of fixed assets
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
19		 Unrestricted
Funds
£'000
303
10,309
225
10,837
11,596
11,596
(759)
436
-
(323)
8,215
7,892		 Restricted
Funds
£'000
20
109
-
129
143
143
(14)
(436)
-
(450)
2,208
1,758		 Year ended
30/4/22
Total
Funds
£'000
323
10,418
225
10,966
11,739
11,739
(773)
-
-
(773)
10,423
9,650		 Period 1/1/20 to
30/4/21
Total
Funds
£'000
53
12,730
-
12,783
13,082
13,082
(299)
-
(635)
(934)
11,357
10,423

The net income for Companies Act purposes comprises the net movement in funds.

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.

Movements in funds are disclosed in note 19 to the financial statements.

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YMCA FAIRTHORNE GROUP

CONSOLIDATED AND CHARITY BALANCE SHEET AT 30 APRIL 2022

Company number 04336719
Note
FIXED ASSETS
Tangible assets
13
CURRENT ASSETS
Stocks
Debtors
14
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
15
Pension liability
23
NET CURRENT (LIABILITIES)/ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year
17
Pension liability
23
NET ASSETS
FUNDS
19
Unrestricted funds:
General fund
Pension fund
Restricted funds:
Restricted fund
TOTAL FUNDS		 2022
Group
£'000
16,291
16,291
18
1,109
1,931
3,058
(9,324)
(44)
(9,368)
(6,310)
9,981
(36)
(295)
(331)
9,650
8,231
(339)
7,892
1,758
9,650		 2022
Charity
£'000
10,374
10,374
17
1,240
1,347
2,604
(6,900)
(44)
(6,944)
(4,340)
6,034
-
(295)
(295)
5,739
4,340
(339)
4,001
1,738
5,739		 2021
Group
£'000
16,602
16,602
10
661
2,326
2,997
(2,269)
(43)
(2,312)
685
17,287
(6,525)
(339)
(6,864)
10,423
8,597
(382)
8,215
2,208
10,423		 2021
Charity
£'000
11,311
11,311
10
465
1,831
2,306
(2,731)
(43)
(2,774)
(468)
10,843
(3,974)
(339)
(4,313)
6,530
4,704
(382)
4,322
2,208
6,530

The financial statements were approved and authorised for issue by the Board on 10 October 2022 and are signed on its behalf

P M Youngs Trustee

The company has taken advantage of the exemption allowed under Section 408 of the Companies Act 2006 and has not presented its own Income and Expenditure account in these financial statements. The loss after tax of the parent company for the period was £794k (2021: £1,096k).

The notes on pages 22 to 37 form part of these financial statements

Page 19

YMCA FAIRTHORNE GROUP

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 APRIL 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Cash acquired from acquisitions
Net cash provided by / (used in) investing activities
Cash flows from financing activities:
Loan repayments in period
Net cash provided by / (used in) financing activities
Change in cash and cash equivalents in the reporting period
3
Cash and cash equivalents at the beginning of the reporting period
2
Cash and cash equivalents at the end of the reporting period
2		 Year ended
30/4/22
£'000
(856)
(232)
1,021
72
861
(400)
(400)
(395)
2,326
1,931		 Period 1/1/20 to
30/4/21
£'000
816
(308)
-
-
(308)
(55)
(55)
453
1,873
2,326

Page 20

YMCA FAIRTHORNE GROUP

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 APRIL 2022

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

Net income / (expenditure) for the reporting period (as per the statement of financial activities)
Depreciation charges
Loss / (profit) on disposal of fixed assets
Revaluation of fixed assets
Funds acquired on acquisition
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Decrease/(Increase) in pensions
Net cash provided by (used in) operating activities
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
ANALYSIS OF CHANGES IN NET DEBT
At 1.5.21
£'000
Net cash
Cash at bank and in hand
2,326
2,326
Debt
Debts falling due within one year
(412)
Debts falling due after one year
(6,525)
(6,937)
Total
(4,611)		 Year ended
30/4/22
£'000
(773)
329
(225)
-
(309)
(8)
(437)
610
(43)
(856)
2022
£'000
1,931
Cash flow
£'000
(395)
(395)
(6,156)
6,489
333
(62)		 Period 1/1/20 to
30/4/21
£'000
(934)
449
11
634
-
3
29
525
99
816
2021
£'000
2,326
At 30.4.22
£'000
1,931
1,931
(6,568)
(36)
(6,604)
(4,673)

2. ANALYSIS OF CASH AND CASH EQUIVALENTS

3 ANALYSIS OF CHANGES IN NET DEBT

Page 21

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

1. GENERAL INFORMATION

YMCA Fairthorne Group is a charitable company, limited by guarantee, incorporated in England and Wales under the Companies Act 2006. The address of the registered office is Fairthorne Manor, Botley Road, Curbridge, Southampton, Hampshire, SO30 2GH.

The consolidated accounts include both YMCA Fairthorne Group and YMCA Fairthorne Housing for the full accounting period and Park Families Limited from 20 September 2021.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest thousand.

Preparation of consolidated financial statements

These financial statements consolidate the results of the charity and its two wholly owned subsidiaries, YMCA Fairthorne Housing and Park Families Limited, on a line by line basis, using the acquisition method of accounting. The results of the subsidiary undertakings are included from the date of acquisition. Park Families Limited was acquired by the YMCA Fairthorne Group on 1 October 2021.

Going concern

Net current liabilities stand at £6,310k (Net current assets 2021: £685k) at the balance sheet date. The trustees have considered the impact and risk from COVID-19 on the group companies and the group’s prospects, recognising the uncertainty of the scenario. The trustees have concluded that with the right management actions the group is a going concern for at least 12 months following the signature of the financial statements. Accordingly the trustees have prepared the financial statements on this basis. The Trustees acknowledge the significant increase in creditors falling due within one year compared to the year ending April 21 accounts. The increase is as a result of the reclassification of both the Barclays loans, as the terms of the loans are due for renewal in March 2023. Conversations regarding renewal of the loans have already begun, the trustees fully intend to renew the terms of the loans and believe the going concern of the organisation is not impacted by the renewal.

Critical accounting judgements and key sources of estimation uncertainty

In preparing these financial statements, the key judgements have been made in respect of the following:

Whether there are indicators of impairment of the group's housing properties and other tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. The trustees have considered the measurement basis to determine the recoverable amount of assets where there are indicators of impairment based on Existing Use Value for Social Housing (EUV-SH) or depreciated replacement cost. The members have also considered impairment based on their assumptions to define cash or asset generating units.

The principal uncertainty that the charitable group faces is the unknown effect of COVID-19. The trustees believe that mitigating actions have been taken and this risk has been minimised, such that the Board are able to make a judgement on the going concern of the group.

Other key sources of estimation uncertainty:

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to items of income have been met, it is probable that the income will be received and the amount can be measured reliably. All income arose in the UK.

Income from charitable activities includes programme fees and youth work. Income is recognised in accordance with service provision.

Income from investments represents interest from bank deposits and gift aid received from the trading subsidiaries. Interest on funds held on deposit is recognised when receivable and the amount can be measured reliably by the charity, this is normally upon notification of the interest paid or payable by the bank. Gift aid is recognised in the period the trading subsidiaries made the irrevocable commitment to pay its taxable profits.

Page 22

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

2. ACCOUNTING POLICIES - continued

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Rental income and service charge income is recognised in the period for which the service was provided to the resident.

Grants

Grants received from non-government sources are recognised using the performance model. A grant which does not impose specified future performance conditions is recognised as revenue when the grant proceeds are received or receivable. Where a social landlord acquires land/or other assets at below market value from another entity, this is in substance considered to be a grant. Where grants are given by a non-government source without restriction or conditions, the whole amount can be recognised upon receipt.

A grant that imposes specified future performance-related conditions on the association is recognised only when these conditions are met. A grant received before the revenue recognition criteria are satisfied is recognised as a liability.

Government grants will be recognised in full provided they meet the recognition criteria, grants relating to revenue are recognised in income and expenditure over the same period as the expenditure to which they relate, once reasonable assurance has been gained that the entity will comply with the conditions and that the funds will be received. Government grants received during the period includes:

If restrictions are attached and the grant is used to purchase fixed assets, the expenditure of the grant will be recognised over the same period as the useful live of the asset.

Expenditure and basis of allocation of costs

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

Support costs

Support costs represent the costs incurred directly in support of the objectives of the charity.

Finance costs

Finance costs are charged to income and expenditure over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Tangible fixed assets

Tangible fixed assets costing more than £1k (2021: £1k) are capitalised and included at cost, including non-recoverable VAT. Depreciation is provided on tangible fixed assets at rates calculated to write off the cost on a straight-line basis over their expected useful economic lives as follows:

Plant and machinery over 3 to 20 years Fixtures and fittings - Park Families 25 % reducing balance Office equipment, computer equipment and motor vehicles over 3 to 5 years

Freehold and long leasehold

Depreciation is provided on buildings on a straight line basis over 5-50 years. The long leasehold premium is amortised over the length of 50 years. No depreciation is charged on freehold land.

Page 23

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

2. ACCOUNTING POLICIES - continued

Depreciation of housing properties

Housing land and property acquired before 2019 is split between land and property. Housing land and property acquired since 2019 will be split between land, structure and other major components that are expected to require replacement over time with substantially different economic lives.

Depreciation charged on Housing property acquired prior to 2019 is depreciated based on the cost of the property as a whole. Housing property acquired after 2019 will be split between the structure and the major components which will require periodic replacement. The cost of any replacements or restorations to the major components are capitalised and depreciated over the determined average useful economic life on a straight line basis as follows:

Description Useful economic life (years)
Structure 100
Roofs 70
Kitchens 20
Bathrooms 30
Boilers 10-15
Central heating 30
Windows 30
Lifts 20
Land is not depreciated on account of its indefinite useful economic life.

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last reporting date in the pattern by which the group expects to consume an asset's future economic benefit.

Donated assets and services

When assets are donated to the charity, the value of the donation forms the deemed cost of the asset to the group. Similarly any assets acquired from another charity are valued in the group accounts at fair value which forms the deemed cost to the group.

Impairment

Assets that no longer provide a service value to the group are written down to residual value or otherwise impaired.

Stocks

Stocks consists of catering items. Stocks are valued at the lower of cost and net realisable value.

Taxation

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

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Designated funds are unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Where funds are provided for the purchase of fixed assets or fixed assets are donated and there is a restriction on the charity's entitlement to the full sale proceeds, those assets are held in restricted funds to the extent of the restriction and amortised over the economic life of those assets.

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

Financial instruments

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses.

Operating leases

Rentals applicable to operating leases are charged to the Statement of Financial Activities over the period in which the cost is incurred.

Defined benefit pension scheme

YMCA Fairthorne 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 Fairthorne Group. As described in note 23 YMCA Fairthorne Group has a contractual obligation to make pension deficit payments of £43,030 pa over the period to April 2029 (2021: £43,030 pa), accordingly this is shown as a liability in these accounts.

Page 24

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

3. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
Year ended Period 1/1/20 to
30/4/22 30/4/21
£'000 £'000
Donations 323 53

Total income from donations from the group was £323k (2021: £53k), of which £303k (2021: £37k) was unrestricted and £20k (2021: £16k) was restricted. This includes £309k of assets gifted on acquistion of Park Families Limited.

4. INCOME FROM CHARITABLE ACTIVITIES

Early Years Programmes
Children & Group Programmes
Housing & Accommodation Based Programmes
Youth Programme
Family & Community Programmes
YMCA Fairthorne Housing
Park Families
Year ended 30/4/22
Period 1/1/20 to 30/4/21
Early Years Programmes
Children & Group Programmes
Housing & Accommodation Based Programmes
Youth Programme
Family & Community Programmes
YMCA Fairthorne Housing		 Fees
£'000
3,300
1,133
389
27
433
1,260
371
6,913
6,445
Period 1/1/20 to
30/4/21
£'000
7,881
1,245
1,461
63
266
1,814
12,730		 Statutory
Income
£'000
2,707
61
563
12
12
25
22
3,402
5,998		 Trusts &
Foundations
£'000
-
70
-
-
5
18
-
93
287		 Other income
£'000
-
-
2
-
7
-
1
10
-		 Total
£'000
6,007
1,264
954
39
457
1,303
394
10,418
12,730

Total income from charitable activities was £10,418k (2021:£12,730k) of which £10,289k (2021:£12,630k) is unrestricted and £129k (2021:£100k) is restricted.

Page 25

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

Government grants
Included within charitable income are the following grants:
HM Revenue and Customs - CJRS & Kickstart
COVID grants have been received by the following bodies:
Hampshire County Council
Southampton City Council
Test Valley Borough Council
Winchester City Council
Portsmouth City Council
Gosport Borough Council
Isle of Wight Council
Other grants received:
Basingstoke & Deane Borough Council
Hampshire County Council
Isle of Wight Council
Portsmouth City Council
Southampton City Council
OFGEM
OTHER INCOME
Profit on disposal of fixed assets		 Year ended
30/4/22
£'000
469
-
-
-
-
-
-
-
-
9
27
17
10
35
567
Year ended
30/4/22
£'000
225		 Period 1/1/20 to
30/4/21
£'000
1,589
6
116
10
36
15
2
52
8
4
15
6
-
54
1,913
Period 1/1/20 to
30/4/21
£'000
-

5. OTHER INCOME

During the year, properties in Southampton and on the Isle of Wight were disposed of generating a profit of £225k (2021: £nil).

6. CHARITABLE ACTIVITIES COSTS

Early Years Programmes
Children & Group Programmes
Housing & Accommodation Based Programmes
Youth Programme
Family & Community Programmes
YMCA Fairthorne Housing
Park Families
Year ended 30/4/22
Period 1/1/20 to 30/4/21
Early Years Programmes
Children & Group Programmes
Housing & Accommodation Based Programmes
Youth Programme
Family & Community Programmes
YMCA Fairthorne Housing		 Staff Costs
£'000
4,299
766
373
26
222
268
424
6,378
6,942
Period 1/1/20 to
30/4/21
£'000
8,348
1,488
1,048
261
286
1,651
13,082		 Other direct
costs
£'000
1,259
329
452
12
248
1,036
209
3,545
3,726		 Depreciation
£'000
134
67
12
6
32
45
9
305
396		 Support costs
£'000
1,043
166
-
227
75
-
-
1,511
2,018		 Total
£'000
6,735
1,328
837
271
577
1,349
642
11,739
13,082

Total expenditure from charitable activities was £11,739k (2021:£13,082k) of which £11,596k (2021:£12,929k) is unrestricted and £143k. (2021:£153k) is restricted.

Page 26

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

7. SUPPORT COSTS

Early Years Programmes
Children & Group Programmes
Youth Programme
Family & Community Programmes
YMCA Fairthorne Housing
Year ended 30/4/22
Period 1/1/20 to 30/4/21
Early Years Programmes
Children & Group Programmes
Housing & Accommodation based Programmes
Youth Programme
Family & Community Programmes		 Staff costs
£'000
746
119
162
54
-
1,081
1,697		 Depreciation
£'000
16
3
4
1
-
24
52
Period 1/1/20 to
30/4/21
£'000
1,453
262
20
222
61
2,018		 Governance costs
£'000
63
9
14
5
-
91
90		 Other indirect
costs
£'000
218
35
47
15
-
315
179		 Total
£'000
1,043
166
227
75
0
1,511
2,018

Support costs have been apportioned against charitable activities shown in note 6 in proportion to income in note 4 to reflect the proportion of time supporting statutory and trustee matters.

8. GOVERNANCE COSTS

Audit and accountancy fees
Affiliation fee
Trustees indemnity insurance		 Group
2022
Year ended
30/04/2022
£'000
38
48
5
91		 Charity
2022
Year ended
30/04/2022
£'000
25
42
5
72		 Group
2021
Period 1/1/20 to
30/4/21
£'000
29
53
8
90		 Charity
2021
Period 1/1/20 to
30/4/21
£'000
24
49
8
81

Page 27

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

9. NET INCOME/(EXPENDITURE)

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

Year ended Period 1/1/20 to
30/4/22 30/4/21
£'000 £'000
Depreciation - owned assets 329 449
Surplus on disposal of fixed asset (see note 5) 225 -
Hire of vehicles and equipment 80 78
Property rental 224 319
Auditors' remuneration - audit fee 25 19
Auditors' remuneration - other services 13 10

The above figures are the audit and other services for all trading entities in the group.

10. TRUSTEE REMUNERATION AND BENEFITS

No trustee received any remuneration in the period. Trustees indemnity insurance of £5k (2021: £8k) was paid in the period. No expenses were reimbursed to any trustees in either the current year or prior period.

11. STAFF COSTS

Wages and salaries
Social security costs
Pension costs
The average number of employees during the period was as follows:
Charitable activities
Support staff
Housing, support and care
The number of employees whose benefits (excluding employer pension costs) exceeded £60,000 for the period was :
£60,001-£70,000
£70,001-£80,000
£100,001-£110,000
£130,001-£140,000		 Year ended
30/4/22
£'000
6,770
483
206
7,459
Year ended
30/4/22
374
35
10
419
Year ended
30/4/22
1
1
1
-		 Period 1/1/20 to
30/4/21
£'000
7,700
532
407
8,639
Period 1/1/20 to
30/4/21
339
43
10
392
Period 1/1/20 to
30/4/21
1
5
1
1

Pension contributions payable for the above employees for the year were £11k (2021: £30k).

Key management personnel of the group include Trustees, Directors of the subsidiaries and the senior management team. The total employee benefits to the key management personnel for the year were £477k (2021: £675k).

During the year, termination payments totalling £21k (2021: £90k) were made to 8 (2021: 16) employees.

Page 28

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

12. COMPARATIVE FOR THE STATEMENT OF FINANCIAL ACTIVITY - 2021

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Early Years Programmes
Children & Group Programmes
Housing & Accommodation Based Programmes
Youth Programme
Family & Community Programmes
YMCA Fairthorne Housing
Total
EXPENDITURE ON
Charitable activities
Early Years Programmes
Children & Group Programmes
Housing & Accommodation Based Programmes
Youth Programme
Family & Community Programmes
YMCA Fairthorne Housing
Total
NET INCOME / (EXPENDITURE)
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Funds
£'000
37
7,781
1,245
1,461
63
266
1,814
12,667
8,195
1,488
1,048
261
286
1,651
12,929
(262)
(400)
(662)
8,877
8,215		 Restricted
Funds
£'000
16
100
-
-
-
-
-
116
153
-
-
-
-
-
153
(37)
(235)
(272)
2,480
2,208		 Total
Funds
£'000
53
7,881
1,245
1,461
63
266
1,814
12,783
8,348
1,488
1,048
261
286
1,651
13,082
(299)
(635)
(934)
11,357
10,423

Page 29

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

13. TANGIBLE FIXED ASSETS

GROUP

GROUP
COST
At 1 May 2021
Additions
Disposals
At 30 April 2022
DEPRECIATION
At 1 May 2021
Charge for the period
Disposals
At 30 April 2022
NET BOOK VALUE
At 30 April 2022
At 30 April 2021		 Freehold
property
£'000
18,482
95
(891)
17,686
2,367
208
(105)
2,470
15,216
16,115		 Leasehold
property
£'000
-
575
-
575
-
8
-
8
567
-		 Plant and
machinery
£'000
1,485
117
(14)
1,588
1,048
87
(4)
1,131
457
437		 Computer
equipment
£'000
348
27
(10)
365
298
26
(10)
314
51
50		 Totals
£'000
20,315
814
(915)
20,214
3,713
329
(119)
3,923
16,291
16,602

The value of land included in freehold properties that is not subject to depreciation is £5,337k (2021:£9,125k) for the group.

CHARITY

COST
At 1 May 2021
Additions
Disposals
At 30 April 2022
DEPRECIATION
At 1 May 2021
Charge for the period
Disposals
At 30 April 2022
NET BOOK VALUE
At 30 April 2022
At 30 April 2021		 Freehold
property
£'000
13,107
13
(891)
12,229
2,280
181
(105)
2,356
9,873
10,827		 Plant and
machinery
£'000
1,471
110
(14)
1,567
1,037
84
(4)
1,117
450
434		 Computer
equipment
£'000
348
27
(10)
365
298
26
(10)
314
51
50		 Totals
£'000
14,926
150
(915)
14,161
3,615
291
(119)
3,787
10,374
11,311

The value of land included in freehold properties that is not subject to depreciation is £2,481k (2021: £5,109k) for the charity.

Page 30

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

14. DEBTORS

Trade debtors
Other debtors
Prepayments and accrued income
Amounts owed from group undertakings		 Group
2022
£'000
695
25
389
-
1,109		 Charity
2022
£'000
555
21
344
320
1,240		 Group
2021
£'000
384
25
252
-
661		 Charity
2021
£'000
215
24
226
-
465

Trade debtors are expressed net of bad debt provisions totalling £341k for the group (2021: £366k) and £134k for the charity (2021: £129k).

15. CREDITORS: AMOUNTS DUE WITHIN ONE YEAR

Bank loans and overdrafts
Trade creditors
Tax and social security
Other creditors
Accruals
Deferred income (note 16)
Amounts owed to group undertakings		 Group
2022
£'000
6,568
435
343
19
325
1,634
-
9,324		 Charity
2022
£'000
3,973
349
224
2
229
1,500
623
6,900		 Group
2021
£'000
412
414
86
1
310
1,046
-
2,269		 Charity
2021
£'000
252
381
86
-
280
1,039
693
2,731

16. DEFERRED INCOME - GROUP AND CHARITY

Balance at start of period
Amounts released to income
Amounts deferred in period
Balance at end of period		 Group
2022
£'000
1,046
(1,046)
1,634
1,634		 Charity
2022
£'000
1,039
(1,039)
1,500
1,500		 Group
2021
£'000
525
(525)
1,046
1,046		 Charity
2021
£'000
525
(525)
1,039
1,039

Deferred income comprises advanced fees paid for programmes and nursery places together with the future performance related elements of contracts and grants.

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Charity Group Charity
2022 2022 2021 2021
£'000 £'000 £'000 £'000
Bank loan 36 - 6,525 3,974

Page 31

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

18. BANK LOAN

The bank loans and overdraft facilities are secured over the group's freehold property.

The loans of the charity and fellow group companies are secured on the assets of YMCA Fairthorne Group and its subsidiaries via a bank cross guarantee.

The charity has a £4,500k loan facility, from which £4,350k was drawn down in 2017 and £150k was drawn down in January 2018.

This loan is due to be repaid 5 years after the date of its first draw down. Repayments are being made based on a 19 year repayment profile. Interest accrues on the loan at a rate of 1.99% above the Bank of England base rate.

During 2018, YMCA Fairthorne Housing took out a long term loan for £2,870k; the full amount being drawn down.

This loan is due to be repaid 5 years after the date of draw down. Repayments are being made based on a 20 year repayment profile. Interest accrues on the loan at a rate of 1.99% above the Bank of England base rate.

During both the current and prior period, the bank allowed for capital repayment holidays. No capital repayments were made between October 2021 and March 2022 as a result. Repayments recommenced April 2022 in line with the original loan agreement's agreed repayment plan. Interest was calculated on outstanding balances and paid via the respective bank accounts.

The Trustees acknowledge the significant increase in creditors falling due within one year compared to the year ending April 21 accounts. The increase is as a result of the reclassification of both the Barclay’s loans, as the terms of the loans are due for renewal in March 2023. Conversations regarding renewal of the loans have already begun, the trustees fully intend to renew the terms of the loans and believe the going concern of the organisation is not impacted by the renewal.

An analysis of the maturity of the bank loans is given below:

Amounts falling due within one year
Amounts falling due between one and two years		 Group
2022
£'000
6,568
36
6,604		 Charity
2022
£'000
3,973
-
3,973		 Group
2021
£'000
412
6,525
6,937		 Charity
2021
£'000
252
3,974
4,226

Page 32

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

19. MOVEMENT IN FUNDS

GROUP

Unrestricted
General Fund
Pension Fund
Restricted funds
Restricted Fund
TOTAL FUNDS		 At 1 May 2021
£'000
8,597
(382)
8,215
2,208
10,423		 Income
£'000
10,837
-
10,837
129
10,966		 Expenditure
£'000
(11,639)
43
(11,596)
(143)
(11,739)		 Transfers
between funds
£'000
436
-
436
(436)
-		 At 30 April
2022
£'000
8,231
(339)
7,892
1,758
9,650

General income of £10,837k in the current year includes £289k (2021: £nil) of income following the acquistion of Park Families Limited. £20k (2021: £nil) of the income was restricted.

CHARITY

CHARITY
Unrestricted
General Fund
Pension Fund
Restricted funds
Restricted Fund
TOTAL FUNDS
Comparatives
GROUP
Unrestricted
General fund
Pension Fund
Restricted funds
Restricted fund
TOTAL FUNDS
CHARITY
Unrestricted
General fund
Pension Fund
Restricted funds
Restricted fund
TOTAL FUNDS		 At 1 May 2021
£'000
4,704
(382)
4,322
2,208
6,530		 Income
£'000
8,848
-
8,848
109
8,957
At 1 January
2020
£'000
9,160
(283)
8,877
2,480
11,357
At 1 January
2020
£'000
5,458
(283)
5,175
2,451
7,626		 Expenditure
£'000
(9,648)
43
(9,605)
(143)
(9,748)
Income
£'000
12,667
-
12,667
116
12,783
Income
£'000
10,894
-
10,894
75
10,969		 Transfers
between funds
£'000
436
-
436
(436)
-
Expenditure
£'000
(13,230)
(99)
(13,329)
(388)
(13,717)
Expenditure
£'000
(11,648)
(99)
(11,747)
(318)
(12,065)		 At 30 April
2022
£'000
4,340
(339)
4,001
1,738
5,739
At 30 April
2021
£'000
8,597
(382)
8,215
2,208
10,423
At 30 April
2021
£'000
4,704
(382)
4,322
2,208
6,530

Page 33

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

20. RESTRICTED FUNDS - GROUP AND CHARITY

YMCA Southampton
YMCA Isle of Wight
Winchester House
Hampshire Community Foundation
Andover House
Other Restricted
Charity Total
Park Families
Comparatives
YMCA Southampton
YMCA Isle of Wight
Winchester House
Hampshire Community Foundation
Andover House
Other restricted
Charity Total
YMCA Fairthorne Housing:
Land aid
Other restricted
Group Total		 At 1 May 2021
£'000
509
308
347
273
700
71
2,208
-
2,208		 Income
£'000
-
-
-
-
-
109
109
20
129
At 1 January
2020
£'000
513
318
582
279
715
44
2,451
31
(2)
29
2,480		 Expenditure
£'000
(14)
(4)
(5)
(3)
(12)
(105)
(143)
-
(143)
Income
£'000
-
-
-
-
-
75
75
31
10
41
116		 Transfers
between funds
(132)
(304)
-
-
-
-
(436)
-
(436)
Expenditure
£'000
(4)
(10)
(235)
(6)
(15)
(48)
(318)
(62)
(8)
(70)
(388)		 At 30 April
2022
£'000
363
0
342
270
688
75
1,737
20
1,757
At 30 April
2021
£'000
509
308
347
273
700
71
2,208
-
-
-
2,208

The restricted funds that have been received and expended in the period comprise:

Restricted funds YMCA Southampton: Empty Property Grant YMCA Isle of Wight: Empty Property Grant

Nature of fund

Social housing provision at George Williams House and Kimber House. One unit of Kimber House was sold during the year.

Social housing provision at Albany View. The three properties at Albany View were all disposed of during the year.

Winchester House

Property with restriction on disposal

Hampshire Community Foundation Andover House

Newtown Youth Centre Grant

Property with restriction on disposal

Page 34

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

21. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Fund balances at 30 April 2022
Group
Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
Pension scheme liability
Charity
Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
Pension scheme liability
Fund balances at 30 April 2021
Group
Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
Pension scheme liability
Charity
Tangible fixed assets
Current assets
Current liabilities
Long term liabilities
Pension scheme liability		 Unrestricted
Funds
£'000
14,674
2,983
(9,324)
(36)
(339)
7,958
8,757
2,529
(6,900)
-
(339)
4,047
Unrestricted
Funds
£'000
14,465
2,926
(2,269)
(6,525)
(382)
8,215
9,174
2,235
(2,731)
(3,974)
(382)
4,322		 Restricted
Funds
£'000
1,617
75
-
-
-
1,692
1,617
75
-
-
-
1,692
Restricted
Funds
£'000
2,137
71
-
-
-
2,208
2,137
71
-
-
-
2,208		 Total
Funds
£'000
16,291
3,058
(9,324)
(36)
(339)
9,650
10,374
2,604
(6,900)
-
(339)
5,739
Total
Funds
£'000
16,602
2,997
(2,269)
(6,525)
(382)
10,423
11,311
2,306
(2,731)
(3,974)
(382)
6,530

Page 35

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

22. COMMITMENTS UNDER OPERATING LEASES

GROUP
Operating leases which expire:
Within one year
In two to five years
Over five years
CHARITY
Operating leases which expire:
Within one year
In two to five years
Over five years		 2022
£'000
328
909
2,273
3,510
304
909
2,273
3,486		 2021
£'000
236
692
2,421
3,349
236
692
2,421
3,349

23. EMPLOYEE BENEFIT OBLIGATIONS

YMCA Fairthorne 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 Fairthorne Group and at the year-end these were invested in the Mercer Dynamic De-risking Solution, 37% matching 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 plan's actuary has advised that it is not possible to separately identify the assets and liabilities relating to YMCA Fairthorne Group and accordingly the pension deficit is not shown on the balance sheet.

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 £39 million. YMCA Fairthorne Group has been advised that it will need to make monthly contributions of £3,586 from 1 May 2022. 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. Agreed future deficit contributions have been discounted using a rate of 3% (2021: 3%). The current recovery period is 7 years commencing 1 May 2022.

Within 1 year 1 to 2 years 2 to 5 years After 5 years Total
£'000 £'000 £'000 £'000 £'000
30 April 2022 44 46 145 104 340
30 April 2021 43 44 141 154 382

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

24. CONTINGENT LIABILITIES

Note 13 to the financial statements includes a property which is subject to a contingent payment on sale. In the unlikely event that the property was sold, at its most recent obtained valuation of £870k, an amount of £348k (representing 40%) of the sale proceeds would be payable to the Girls' Friendly Society. No liability has been recognised in the financial statements as YMCA Fairthorne Group has no immediate plans to sell the property. This liability remains at 40% up until 2024; thereafter there would be no amount to pay.

Page 36

YMCA FAIRTHORNE GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

25. RELATED PARTY DISCLOSURES

YMCA Fairthorne Group has two subsidiaries, YMCA Fairthorne Housing, Park Families Limited and a linked charity, Newtown Youth Centre Charity.

YMCA Fairthorne Housing

During the year YMCA Fairthorne Group received management charges of £511k (2021: £649k) from YMCA Fairthorne Housing. YMCA Fairthorne Housing also paid £268k (2021: £301k) for staff employed by YMCA Fairthorne Group. In addition to these transactions, YMCA Fairthorne Housing uses the bank accounts of YMCA Fairthorne Group for treasury management purposes. At 30 April 2022 the balance on the intragroup account due to YMCA Fairthorne Housing was £623k (2021: £693k).

Park Families Limited

At 30 April 2022 the balance on the intragroup account due from Park Families Limited was £320k. Park Families was not a related party at 30 April 2021.

26. POST BALANCE SHEET EVENTS

A sale of one of our freehold properties has been completed post year end at a sale price of £445k, no year end impairment is necessary.

27. SUBSIDIARY COMPANIES

The Charity controls a subsidiary undertaking, YMCA Fairthorne Housing, Charity number 1146415, a company limited by guarantee without share capital and with a status of a provider of social housing (registered social number: 4875).

During the year, the Charity acquired an additional subsidiary undertaking, Park Families Limited, Charity number 1105043, a company limited by guarantee without share capital. The date of acqusition of Park Families Limited was 20 September 2021 and at that date the company had net assets totalling £309k.

YMCA Fairthorne Group is the sole trustee of Newtown Youth Centre (charity number 1090981-1).

The Newtown Youth Centre charity did not trade in the current or preceding period.

The registered office of all subsidiaries is Fairthorne Manor, Botley Road, Curbridge, Southampton, Hampshire, SO30 2GH.

Turnover
Gross profit
Administrative expenses / resources expended
Surplus / (deficit) for the period
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities		 YMCA
Fairthorne
Housing
01/05/2021 -
30/04/2022
2022
£'000
1,306
1,306
(1,349)
(43)
YMCA
Fairthorne
Housing
2022
£'000
6,537
(2,685)
3,852		 YMCA
Fairthorne
Housing
01/01/2020 -
30/04/2021
2021
£'000
1,814
1,814
(1,651)
163
YMCA
Fairthorne
Housing
2021
£'000
6,676
(2,781)
3,895		 Park Families
Limited
01/10/2021 -
30/04/2022
2022
£'000
394
394
(642)
(248)
Park Families
Limited
2022
£'000
778
(718)
60

Page 37