**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. 

Page 4 



## **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. 

Page 5 



## **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:** 

- Supporting 2159 children under 5 to have the very best start in life by providing more than one million hours of early years education and care. 

- Helping children have the best school holidays through delivering almost nineteen thousand Daycamps sessions, including free places for 227 children living in families facing poverty. 

- Merging with local charity Park Families growing the portfolio of childcare settings from 14 to 18 and bringing a new “ready-made” community branch into the YMCA. 

- Delivery of an ambitious youth development project providing 66 supportive work placements via the government’s Kickstart scheme. 

- Relocating our Gosport nursery to a newly refurbished building in August 2021. 

- Developing a 10 year housing strategy to explore options to increase our impact for young people. 

- Co-producing YMCA’s Early Years Foundation Stage pedagogy and curriculum and embedding it at all YMCA early years settings supported by a reinvigorated Early Years Quality Team. 

- Establishing a range of community programmes at YMCA venues as restrictions lifted. 

- Securing the future of YMCA supported housing in Southampton by winning the tender to continue our work. 

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 

Page 6 



## **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:** 

- To unite those who, regarding Jesus Christ as their God and Saviour according to the Holy Scriptures, desire to be His disciples in their faith and in their life, and to associate their efforts for the extension of his Kingdom. 

- To lead young people to the Lord Jesus Christ and to fullness of life in Him. 

- 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 persons of all ages with the object of developing their physical, mental or spiritual capacities. 

- To relieve or assist in the relief of persons of all ages who are in conditions of need, hardship or distress by reason of their social, physical or economic circumstances, including, but without limitation, to provide education and training in counselling and psychodynamic therapy and to promote awareness of the effectiveness of such therapy. 

- To provide residential accommodation for persons of all ages who are in need, hardship or distress by reason of their social, physical or economic circumstances. 

## **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: 

- We are a community-based charity and all programmes are offered to those of any faith or of none. Our equal opportunities policy clearly states our intention and practice in this regard. 

- Free entry, funded and bursary schemes that ensure children and families can access a full range of programmes regardless of personal circumstances. 

- Use of digital tools, including free online training, enabling young people and families to access knowledge, qualifications and activities. 

- High-quality early years education which supports the physical and emotional development of children under 5, giving them the very best start in life. 

- Enhanced quality of life and sense of wellbeing from participation in activities and events that bring groups of people together. 

- Achievement of life skills and personal independence for young people participating in accommodation-based programmes, support and training. 

- A strong sense of belonging for people in communities who engage with their local YMCA, leading to personal wellbeing and community cohesion. 

- Involvement and inclusion in community life through opportunities for people to volunteer and participate at a local level. 

Page 7 



## **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: 

- People in the YMCA community will genuinely shape and influence our work. 

- New YMCA Places will be established at the heart of communities. 

- Communities will be able to access Programmes which directly respond to their needs. 

- YMCA will be financially sustainable and operationally robust. 

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. 

Page 8 



**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. 

Page 9 



**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. 

Page 10 



## **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. 

Page 11 



**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. 

Page 12 



## **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: 

- Avoid unnecessary risks 

- Control risks which inevitably arise as a result of our activities 

- Monitor risks which cannot be tightly controlled without compromising delivery of the mission 

- Take risks which we have assessed as likely to lead to positive outcomes 

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: 

- The costs of completing any outstanding contracts 

- Any liabilities under property or other leases, or extended credit agreements 

- Any responsibilities for maintenance under property leases 

- Sufficient funds available to be able to take advantage of changes or opportunities that may arise 

- Cash flow/surplus generated, or forecast, arising from ongoing operations 

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. 

Page 13 



## **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: 

- Select suitable accounting policies and then apply them consistently. 

- Observe the methods and principles in the Charity SORP. 

- Make judgements and estimates that are reasonable and prudent. 

- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

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: 

- There is no relevant audit information of which the charitable company's auditors are unaware. 

- The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 

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 

Page 14 



## **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:** 

- give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 30 April 2022 and of the group’s incoming resources and application of resources for the year then ended; 

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

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **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: 

- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or 

- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the parent charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. 

## **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. 

Page 15 



## **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: 

- the information given in the trustees’ report (incorporating the group strategic report) for the financial period for which the financial statements are prepared is consistent with the financial statements; and 

- the trustees’ report (incorporating the group 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 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: 

- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; 

- the financial statements are not in agreement with the accounting records and returns; 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not obtained all the information and explanations necessary for the purposes of our audit. 

## **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. 

Page 16 



## **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: 

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and the industry in which it operates. These include but are not limited to compliance 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',  the Companies Act 2006.  and the relevant tax compliance regulations for the charity. 

- We obtained an understanding of how the charity is complying with these frameworks through discussions with management. 

- We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs and correspondence. 

- We assessed the susceptibility of the charities' financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature. 

- We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature. 

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 …………………………… 

Page 17 



## **YMCA FAIRTHORNE GROUP** 

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

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

Page 18 



## **YMCA FAIRTHORNE GROUP** 

## **CONSOLIDATED AND CHARITY BALANCE SHEET AT 30 APRIL 2022** 

|**Company number 04336719**<br>**Note**<br>**FIXED ASSETS**<br>Tangible assets<br>13<br>**CURRENT ASSETS**<br>Stocks<br>Debtors<br>14<br>Cash at bank and in hand<br>**CREDITORS**<br>Amounts falling due within one year<br>15<br>Pension liability<br>23<br>**NET CURRENT (LIABILITIES)/ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**CREDITORS**<br>Amounts falling due after more than one year<br>17<br>Pension liability<br>23<br>**NET ASSETS**<br>**FUNDS**<br>19<br>Unrestricted funds:<br>General fund<br>Pension fund<br>Restricted funds:<br>Restricted fund<br>**TOTAL FUNDS**|**2022**<br>**Group**<br>**£'000**<br>**16,291**<br>**16,291**<br>**18**<br>**1,109**<br>**1,931**<br>**3,058**<br>**(9,324)**<br>**(44)**<br>**(9,368)**<br>**(6,310)**<br>**9,981**<br>**(36)**<br>**(295)**<br>**(331)**<br>**9,650**<br>**8,231**<br>**(339)**<br>**7,892**<br>**1,758**<br>**9,650**|**2022**<br>**Charity**<br>**£'000**<br>**10,374**<br>**10,374**<br>**17**<br>**1,240**<br>**1,347**<br>**2,604**<br>**(6,900)**<br>**(44)**<br>**(6,944)**<br>**(4,340)**<br>**6,034**<br>-<br>**(295)**<br>**(295)**<br>**5,739**<br>**4,340**<br>**(339)**<br>**4,001**<br>**1,738**<br>**5,739**|2021<br>Group<br>£'000<br>16,602<br>16,602<br>10<br>661<br>2,326<br>2,997<br>(2,269)<br>(43)<br>(2,312)<br>685<br>17,287<br>(6,525)<br>(339)<br>(6,864)<br>10,423<br>8,597<br>(382)<br>8,215<br>2,208<br>10,423|2021<br>Charity<br>£'000<br>11,311|
|---|---|---|---|---|
|||||11,311<br>10<br>465<br>1,831|
|||||2,306<br>(2,731)<br>(43)|
|||||(2,774)|
|||||(468)|
|||||10,843<br>(3,974)<br>(339)|
|||||(4,313)|
|||||6,530|
|||||4,704<br>(382)|
|||||4,322<br>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<br>**Cash flows from operating activities**<br>Cash generated from operations<br>1<br>**Cash flows from investing activities**<br>Purchase of tangible fixed assets<br>Sale of tangible fixed assets<br>Cash acquired from acquisitions<br>**Net cash provided by / (used in) investing activities**<br>**Cash flows from financing activities:**<br>Loan repayments in period<br>**Net cash provided by / (used in) financing activities**<br>**Change in cash and cash equivalents in the reporting period**<br>3<br>**Cash and cash equivalents at the beginning of the reporting period**<br>2<br>**Cash and cash equivalents at the end of the reporting period**<br>2|**Year ended**<br>**30/4/22**<br>**£'000**<br>**(856)**<br>**(232)**<br>**1,021**<br>**72**<br>**861**<br>**(400)**<br>**(400)**<br>**(395)**<br>**2,326**<br>**1,931**|Period 1/1/20 to<br>30/4/21<br>£'000<br>816<br>(308)<br>-<br>-|
|---|---|---|
|||(308)<br>(55)|
|||(55)|
|||453<br>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)**<br>Depreciation charges<br>Loss / (profit) on disposal of fixed assets<br>Revaluation of fixed assets<br>Funds acquired on acquisition<br>(Increase)/decrease in stocks<br>(Increase)/decrease in debtors<br>Increase/(decrease) in creditors<br>Decrease/(Increase) in pensions<br>**Net cash provided by (used in) operating activities**<br>**ANALYSIS OF CASH AND CASH EQUIVALENTS**<br>Cash in hand<br>**ANALYSIS OF CHANGES IN NET DEBT**<br>**At 1.5.21**<br>**£'000**<br>**Net cash**<br>Cash at bank and in hand<br>**2,326**<br>**2,326**<br>**Debt**<br>Debts falling due within one year<br>**(412)**<br>Debts falling due after one year<br>**(6,525)**<br>**(6,937)**<br>**Total**<br>**(4,611)**|**Year ended**<br>**30/4/22**<br>**£'000**<br>**(773)**<br>**329**<br>**(225)**<br>-<br>**(309)**<br>**(8)**<br>**(437)**<br>**610**<br>**(43)**<br>**(856)**<br>**2022**<br>**£'000**<br>**1,931**<br>**Cash flow**<br>**£'000**<br>**(395)**<br>**(395)**<br>**(6,156)**<br>**6,489**<br>**333**<br>**(62)**|Period 1/1/20 to<br>30/4/21<br>£'000<br>(934)<br>449<br>11<br>634<br>-<br>3<br>29<br>525<br>99|
|---|---|---|
|||816|
|||2021<br>£'000<br>2,326|
|||**At 30.4.22**<br>**£'000**<br>**1,931**|
|||**1,931**|
|||**(6,568)**<br>**(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:** 

- **Tangible fixed assets** 

   - These are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as the condition of the asset and its future income generating potential are taken into account. Residual value assessments consider issues such as future-market conditions, the remaining life of the asset and projected disposal values.  For housing property assets, the assets are broken down into components based on management’s assessment of the properties. Individual useful economic lives are assigned to these components. 

- **Rental and other trade receivables (debtors)** 

   - The estimate for receivables relates to the recoverability of the balances outstanding at the year end. A review is performed on an individual debtor basis to consider whether each debt is recoverable. 

## **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: 

- Coronavirus Job Retention Scheme 

- Local authority business support grants 

- Connect4Communities grant for young carers 

- Coronavirus restart grants 

- Holiday Activities and Food Programme Grants 

- Kickstart Scheme for employers 

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<br>Children & Group Programmes<br>Housing & Accommodation Based Programmes<br>Youth Programme<br>Family & Community Programmes<br>YMCA Fairthorne Housing<br>Park Families<br>**Year ended 30/4/22**<br>Period 1/1/20 to 30/4/21<br>Early Years Programmes<br>Children & Group Programmes<br>Housing & Accommodation Based Programmes<br>Youth Programme<br>Family & Community Programmes<br>YMCA Fairthorne Housing|**Fees**<br>**£'000**<br>**3,300**<br>**1,133**<br>**389**<br>**27**<br>**433**<br>**1,260**<br>**371**<br>**6,913**<br>6,445<br>Period 1/1/20 to<br>30/4/21<br>£'000<br>7,881<br>1,245<br>1,461<br>63<br>266<br>1,814<br>12,730|**Statutory**<br>**Income**<br>**£'000**<br>**2,707**<br>**61**<br>**563**<br>**12**<br>**12**<br>**25**<br>**22**<br>**3,402**<br>5,998|**Trusts &**<br>**Foundations**<br>**£'000**<br>**-**<br>**70**<br>**-**<br>**-**<br>**5**<br>**18**<br>**-**<br>**93**<br>287|**Other income**<br>**£'000**<br>**-**<br>**-**<br>**2**<br>**-**<br>**7**<br>**-**<br>**1**<br>**10**<br>**-**|**Total**<br>**£'000**<br>**6,007**<br>**1,264**<br>**954**<br>**39**<br>**457**<br>**1,303**<br>**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**<br>Included within charitable income are the following grants:<br>HM Revenue and Customs - CJRS & Kickstart<br>COVID grants have been received by the following bodies:<br>Hampshire County Council<br>Southampton City Council<br>Test Valley Borough Council<br>Winchester City Council<br>Portsmouth City Council<br>Gosport Borough Council<br>Isle of Wight Council<br>Other grants received:<br>Basingstoke & Deane Borough Council<br>Hampshire County Council<br>Isle of Wight Council<br>Portsmouth City Council<br>Southampton City Council<br>OFGEM<br>**OTHER INCOME**<br>Profit on disposal of fixed assets|**Year ended**<br>**30/4/22**<br>**£'000**<br>469<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>9<br>27<br>17<br>10<br>35<br>567<br>**Year ended**<br>**30/4/22**<br>**£'000**<br>**225**|Period 1/1/20 to<br>30/4/21<br>£'000<br>1,589<br>6<br>116<br>10<br>36<br>15<br>2<br>52<br>8<br>4<br>15<br>6<br>-<br>54|
|---|---|---|
|||1,913|
|||Period 1/1/20 to<br>30/4/21<br>£'000<br>**-**|



## **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<br>Children & Group Programmes<br>Housing & Accommodation Based Programmes<br>Youth Programme<br>Family & Community Programmes<br>YMCA Fairthorne Housing<br>Park Families<br>**Year ended 30/4/22**<br>Period 1/1/20 to 30/4/21<br>Early Years Programmes<br>Children & Group Programmes<br>Housing & Accommodation Based Programmes<br>Youth Programme<br>Family & Community Programmes<br>YMCA Fairthorne Housing|**Staff Costs**<br>**£'000**<br>**4,299**<br>**766**<br>**373**<br>**26**<br>**222**<br>**268**<br>**424**<br>**6,378**<br>6,942<br>Period 1/1/20 to<br>30/4/21<br>£'000<br>8,348<br>1,488<br>1,048<br>261<br>286<br>1,651<br>13,082|**Other direct**<br>**costs**<br>**£'000**<br>**1,259**<br>**329**<br>**452**<br>**12**<br>**248**<br>**1,036**<br>**209**<br>**3,545**<br>3,726|**Depreciation**<br>**£'000**<br>**134**<br>**67**<br>**12**<br>**6**<br>**32**<br>**45**<br>**9**<br>**305**<br>396|**Support costs**<br>**£'000**<br>**1,043**<br>**166**<br>**-**<br>**227**<br>**75**<br>**-**<br>**-**<br>**1,511**<br>2,018|**Total**<br>**£'000**<br>**6,735**<br>**1,328**<br>**837**<br>**271**<br>**577**<br>**1,349**<br>**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<br>Children & Group Programmes<br>Youth Programme<br>Family & Community Programmes<br>YMCA Fairthorne Housing<br>**Year ended 30/4/22**<br>Period 1/1/20 to 30/4/21<br>Early Years Programmes<br>Children & Group Programmes<br>Housing & Accommodation based Programmes<br>Youth Programme<br>Family & Community Programmes|**Staff costs**<br>**£'000**<br>**746**<br>**119**<br>**162**<br>**54**<br>**-**<br>**1,081**<br>1,697|**Depreciation**<br>**£'000**<br>**16**<br>**3**<br>**4**<br>**1**<br>**-**<br>**24**<br>52<br>Period 1/1/20 to<br>30/4/21<br>£'000<br>1,453<br>262<br>20<br>222<br>61<br>**2,018**|**Governance costs**<br>**£'000**<br>**63**<br>**9**<br>**14**<br>**5**<br>**-**<br>**91**<br>90|**Other indirect**<br>**costs**<br>**£'000**<br>**218**<br>**35**<br>**47**<br>**15**<br>**-**<br>**315**<br>179|**Total**<br>**£'000**<br>**1,043**<br>**166**<br>**227**<br>**75**<br>**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<br>Affiliation fee<br>Trustees indemnity insurance|**Group**<br>**2022**<br>**Year ended**<br>**30/04/2022**<br>**£'000**<br>**38**<br>**48**<br>**5**<br>**91**|**Charity**<br>**2022**<br>**Year ended**<br>**30/04/2022**<br>**£'000**<br>**25**<br>**42**<br>**5**<br>**72**|Group<br>2021<br>Period 1/1/20 to<br>30/4/21<br>£'000<br>29<br>53<br>8<br>90|Charity<br>2021<br>Period 1/1/20 to<br>30/4/21<br>£'000<br>24<br>49<br>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<br>Social security costs<br>Pension costs<br>The average number of employees during the period was as follows:<br>Charitable activities<br>Support staff<br>Housing, support and care<br>The number of employees whose benefits (excluding employer pension costs) exceeded £60,000 for the period was :<br>£60,001-£70,000<br>£70,001-£80,000<br>£100,001-£110,000<br>£130,001-£140,000|**Year ended**<br>**30/4/22**<br>**£'000**<br>**6,770**<br>**483**<br>**206**<br>**7,459**<br>**Year ended**<br>**30/4/22**<br>**374**<br>**35**<br>**10**<br>**419**<br>**Year ended**<br>**30/4/22**<br>**1**<br>**1**<br>**1**<br>**-**|Period 1/1/20 to<br>30/4/21<br>£'000<br>7,700<br>532<br>407|
|---|---|---|
|||8,639|
|||Period 1/1/20 to<br>30/4/21<br>339<br>43<br>10|
|||392|
|||Period 1/1/20 to<br>30/4/21<br>1<br>5<br>1<br>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**<br>**Donations and legacies**<br>**Charitable activities**<br>Early Years Programmes<br>Children & Group Programmes<br>Housing & Accommodation Based Programmes<br>Youth Programme<br>Family & Community Programmes<br>YMCA Fairthorne Housing<br>**Total**<br>**EXPENDITURE ON**<br>**Charitable activities**<br>Early Years Programmes<br>Children & Group Programmes<br>Housing & Accommodation Based Programmes<br>Youth Programme<br>Family & Community Programmes<br>YMCA Fairthorne Housing<br>**Total**<br>**NET INCOME / (EXPENDITURE)**<br>**Other recognised gains/(losses)**<br>Gains/(losses) on revaluation of fixed assets<br>**NET MOVEMENT IN FUNDS**<br>**RECONCILIATION OF FUNDS**<br>**Total funds brought forward**<br>**TOTAL FUNDS CARRIED FORWARD**|Unrestricted<br>Funds<br>£'000<br>37<br>7,781<br>1,245<br>1,461<br>63<br>266<br>1,814<br>12,667<br>8,195<br>1,488<br>1,048<br>261<br>286<br>1,651<br>12,929<br>(262)<br>(400)<br>(662)<br>8,877<br>8,215|Restricted<br>Funds<br>£'000<br>16<br>100<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>116<br>153<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>153<br>(37)<br>(235)<br>(272)<br>2,480<br>2,208|Total<br>Funds<br>£'000<br>53<br>7,881<br>1,245<br>1,461<br>63<br>266<br>1,814|
|---|---|---|---|
||||12,783<br>8,348<br>1,488<br>1,048<br>261<br>286<br>1,651|
||||13,082<br>(299)<br>(635)|
||||(934)<br>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**<br>At 1 May 2021<br>Additions<br>Disposals<br>At 30 April 2022<br>**DEPRECIATION**<br>At 1 May 2021<br>Charge for the period<br>Disposals<br>At 30 April 2022<br>**NET BOOK VALUE**<br>At 30 April 2022<br>At 30 April 2021|**Freehold**<br>**property**<br>**£'000**<br>**18,482**<br>**95**<br>**(891)**<br>**17,686**<br>**2,367**<br>**208**<br>**(105)**<br>**2,470**<br>**15,216**<br>16,115|**Leasehold**<br>**property**<br>**£'000**<br>**-**<br>**575**<br>**-**<br>**575**<br>**-**<br>**8**<br>**-**<br>**8**<br>**567**<br>**-**|**Plant and**<br>**machinery**<br>**£'000**<br>**1,485**<br>**117**<br>**(14)**<br>**1,588**<br>**1,048**<br>**87**<br>**(4)**<br>**1,131**<br>**457**<br>437|**Computer**<br>**equipment**<br>**£'000**<br>**348**<br>**27**<br>**(10)**<br>**365**<br>**298**<br>**26**<br>**(10)**<br>**314**<br>**51**<br>50|**Totals**<br>**£'000**<br>**20,315**<br>**814**<br>**(915)**|
||||||**20,214**|
||||||**3,713**<br>**329**<br>**(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**<br>At 1 May 2021<br>Additions<br>Disposals<br>At 30 April 2022<br>**DEPRECIATION**<br>At 1 May 2021<br>Charge for the period<br>Disposals<br>At 30 April 2022<br>**NET BOOK VALUE**<br>At 30 April 2022<br>At 30 April 2021|**Freehold**<br>**property**<br>**£'000**<br>**13,107**<br>**13**<br>**(891)**<br>**12,229**<br>**2,280**<br>**181**<br>**(105)**<br>**2,356**<br>**9,873**<br>10,827|**Plant and**<br>**machinery**<br>**£'000**<br>**1,471**<br>**110**<br>**(14)**<br>**1,567**<br>**1,037**<br>**84**<br>**(4)**<br>**1,117**<br>**450**<br>434|**Computer**<br>**equipment**<br>**£'000**<br>**348**<br>**27**<br>**(10)**<br>**365**<br>**298**<br>**26**<br>**(10)**<br>**314**<br>**51**<br>50|**Totals**<br>**£'000**<br>**14,926**<br>**150**<br>**(915)**|
|---|---|---|---|---|
|||||**14,161**|
|||||**3,615**<br>**291**<br>**(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<br>Other debtors<br>Prepayments and accrued income<br>Amounts owed from group undertakings|**Group**<br>**2022**<br>**£'000**<br>**695**<br>**25**<br>**389**<br>-<br>**1,109**|**Charity**<br>**2022**<br>**£'000**<br>**555**<br>**21**<br>**344**<br>**320**<br>**1,240**|Group<br>2021<br>£'000<br>384<br>25<br>252<br>-<br>661|Charity<br>2021<br>£'000<br>215<br>24<br>226<br>-|
|---|---|---|---|---|
|||||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<br>Trade creditors<br>Tax and social security<br>Other creditors<br>Accruals<br>Deferred income (note 16)<br>Amounts owed to group undertakings|**Group**<br>**2022**<br>**£'000**<br>**6,568**<br>**435**<br>**343**<br>**19**<br>**325**<br>**1,634**<br>**-**<br>**9,324**|**Charity**<br>**2022**<br>**£'000**<br>**3,973**<br>**349**<br>**224**<br>**2**<br>**229**<br>**1,500**<br>**623**<br>**6,900**|Group<br>2021<br>£'000<br>412<br>414<br>86<br>1<br>310<br>1,046<br>-<br>2,269|Charity<br>2021<br>£'000<br>252<br>381<br>86<br>-<br>280<br>1,039<br>693|
|---|---|---|---|---|
|||||2,731|



## **16. DEFERRED INCOME - GROUP AND CHARITY** 

|Balance at start of period<br>Amounts released to income<br>Amounts deferred in period<br>Balance at end of period|**Group**<br>**2022**<br>**£'000**<br>**1,046**<br>**(1,046)**<br>**1,634**<br>**1,634**|**Charity**<br>**2022**<br>**£'000**<br>**1,039**<br>**(1,039)**<br>**1,500**<br>**1,500**|Group<br>2021<br>£'000<br>525<br>(525)<br>1,046<br>1,046|Charity<br>2021<br>£'000<br>525<br>(525)<br>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<br>Amounts falling due between one and two years|**Group**<br>**2022**<br>**£'000**<br>**6,568**<br>**36**<br>**6,604**|**Charity**<br>**2022**<br>**£'000**<br>**3,973**<br>**-**<br>**3,973**|Group<br>2021<br>£'000<br>412<br>6,525<br>6,937|Charity<br>2021<br>£'000<br>252<br>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**<br>General Fund<br>Pension Fund<br>**Restricted funds**<br>Restricted Fund<br>**TOTAL FUNDS**|**At 1 May 2021**<br>**£'000**<br>**8,597**<br>**(382)**<br>**8,215**<br>**2,208**<br>**10,423**|**Income**<br>**£'000**<br>**10,837**<br>**-**<br>**10,837**<br>**129**<br>**10,966**|**Expenditure**<br>**£'000**<br>**(11,639)**<br>**43**<br>**(11,596)**<br>**(143)**<br>**(11,739)**|**Transfers**<br>**between funds**<br>**£'000**<br>**436**<br>**-**<br>**436**<br>**(436)**<br>**-**|**At 30 April**<br>**2022**<br>**£'000**<br>**8,231**<br>**(339)**|
|---|---|---|---|---|---|
||||||**7,892**<br>**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**<br>General Fund<br>Pension Fund<br>**Restricted funds**<br>Restricted Fund<br>**TOTAL FUNDS**<br>**Comparatives**<br>**GROUP**<br>**Unrestricted**<br>General fund<br>Pension Fund<br>**Restricted funds**<br>Restricted fund<br>**TOTAL FUNDS**<br>**CHARITY**<br>**Unrestricted**<br>General fund<br>Pension Fund<br>**Restricted funds**<br>Restricted fund<br>**TOTAL FUNDS**|**At 1 May 2021**<br>**£'000**<br>**4,704**<br>**(382)**<br>**4,322**<br>**2,208**<br>**6,530**|**Income**<br>**£'000**<br>**8,848**<br>**-**<br>**8,848**<br>**109**<br>**8,957**<br>**At 1 January**<br>**2020**<br>**£'000**<br>9,160<br>(283)<br>8,877<br>2,480<br>11,357<br>**At 1 January**<br>**2020**<br>£'000<br>5,458<br>(283)<br>5,175<br>2,451<br>7,626|**Expenditure**<br>**£'000**<br>**(9,648)**<br>**43**<br>**(9,605)**<br>**(143)**<br>**(9,748)**<br>**Income**<br>**£'000**<br>12,667<br>**-**<br>12,667<br>116<br>12,783<br>**Income**<br>£'000<br>10,894<br>**-**<br>10,894<br>75<br>10,969|**Transfers**<br>**between funds**<br>**£'000**<br>**436**<br>**-**<br>**436**<br>**(436)**<br>**-**<br>**Expenditure**<br>**£'000**<br>(13,230)<br>(99)<br>(13,329)<br>(388)<br>(13,717)<br>**Expenditure**<br>£'000<br>(11,648)<br>(99)<br>(11,747)<br>(318)<br>(12,065)|**At 30 April**<br>**2022**<br>**£'000**<br>**4,340**<br>**(339)**|
||||||**4,001**<br>**1,738**|
||||||**5,739**|
||||||**At 30 April**<br>**2021**<br>**£'000**<br>8,597<br>(382)|
||||||8,215<br>2,208|
||||||10,423|
||||||**At 30 April**<br>**2021**<br>£'000<br>4,704<br>(382)|
||||||4,322<br>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<br>YMCA Isle of Wight<br>Winchester House<br>Hampshire Community Foundation<br>Andover House<br>Other Restricted<br>Charity Total<br>Park Families<br>**Comparatives**<br>YMCA Southampton<br>YMCA Isle of Wight<br>Winchester House<br>Hampshire Community Foundation<br>Andover House<br>Other restricted<br>Charity Total<br>YMCA Fairthorne Housing:<br>Land aid<br>Other restricted<br>Group Total|**At 1 May 2021**<br>**£'000**<br>**509**<br>**308**<br>**347**<br>**273**<br>**700**<br>**71**<br>**2,208**<br>**-**<br>**2,208**|**Income**<br>**£'000**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**109**<br>**109**<br>20<br>**129**<br>**At 1 January**<br>**2020**<br>£'000<br>513<br>318<br>582<br>279<br>715<br>44<br>2,451<br>31<br>(2)<br>29<br>**2,480**|**Expenditure**<br>**£'000**<br>**(14)**<br>**(4)**<br>**(5)**<br>**(3)**<br>**(12)**<br>**(105)**<br>**(143)**<br>**-**<br>**(143)**<br>**Income**<br>£'000<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>75<br>75<br>31<br>10<br>41<br>**116**|**Transfers**<br>**between funds**<br>**(132)**<br>**(304)**<br>**-**<br>**-**<br>**-**<br>**-**<br>**(436)**<br>**-**<br>**(436)**<br>**Expenditure**<br>£'000<br>(4)<br>(10)<br>(235)<br>(6)<br>(15)<br>(48)<br>(318)<br>(62)<br>(8)<br>(70)<br>**(388)**|**At 30 April**<br>**2022**<br>**£'000**<br>**363**<br>**0**<br>**342**<br>**270**<br>**688**<br>**75**|
|---|---|---|---|---|---|
||||||**1,737**|
||||||20|
||||||**1,757**|
||||||**At 30 April**<br>**2021**<br>£'000<br>509<br>308<br>347<br>273<br>700<br>71|
||||||2,208|
||||||**-**<br>**-**|
||||||**-**|
||||||**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<br>**Group**<br>Tangible fixed assets<br>Current assets<br>Current liabilities<br>Long term liabilities<br>Pension scheme liability<br>**Charity**<br>Tangible fixed assets<br>Current assets<br>Current liabilities<br>Long term liabilities<br>Pension scheme liability<br>Fund balances at 30 April 2021<br>**Group**<br>Tangible fixed assets<br>Current assets<br>Current liabilities<br>Long term liabilities<br>Pension scheme liability<br>**Charity**<br>Tangible fixed assets<br>Current assets<br>Current liabilities<br>Long term liabilities<br>Pension scheme liability|**Unrestricted**<br>**Funds**<br>**£'000**<br>**14,674**<br>**2,983**<br>**(9,324)**<br>**(36)**<br>**(339)**<br>**7,958**<br>**8,757**<br>**2,529**<br>**(6,900)**<br>**-**<br>**(339)**<br>**4,047**<br>Unrestricted<br>Funds<br>£'000<br>14,465<br>2,926<br>(2,269)<br>(6,525)<br>(382)<br>8,215<br>9,174<br>2,235<br>(2,731)<br>(3,974)<br>(382)<br>4,322|**Restricted**<br>**Funds**<br>**£'000**<br>**1,617**<br>**75**<br>**-**<br>**-**<br>**-**<br>**1,692**<br>**1,617**<br>**75**<br>**-**<br>**-**<br>**-**<br>**1,692**<br>Restricted<br>Funds<br>£'000<br>2,137<br>71<br>**-**<br>**-**<br>**-**<br>2,208<br>2,137<br>71<br>**-**<br>**-**<br>**-**<br>2,208|**Total**<br>**Funds**<br>**£'000**<br>**16,291**<br>**3,058**<br>**(9,324)**<br>**(36)**<br>**(339)**|
|---|---|---|---|
||||**9,650**|
||||**10,374**<br>**2,604**<br>**(6,900)**<br>**-**<br>**(339)**|
||||**5,739**|
||||Total<br>Funds<br>£'000<br>16,602<br>2,997<br>(2,269)<br>(6,525)<br>(382)|
||||10,423|
||||11,311<br>2,306<br>(2,731)<br>(3,974)<br>(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**<br>Operating leases which expire:<br>Within one year<br>In two to five years<br>Over five years<br>**CHARITY**<br>Operating leases which expire:<br>Within one year<br>In two to five years<br>Over five years|**2022**<br>**£'000**<br>328<br>909<br>2,273<br>**3,510**<br>304<br>909<br>2,273<br>**3,486**|2021<br>£'000<br>236<br>692<br>2,421|
|---|---|---|
|||3,349|
|||236<br>692<br>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<br>Gross profit<br>Administrative expenses / resources expended<br>Surplus / (deficit) for the period<br>The aggregate of the assets, liabilities and funds was:<br>Assets<br>Liabilities|**YMCA**<br>**Fairthorne**<br>**Housing**<br>**01/05/2021 -**<br>**30/04/2022**<br>**2022**<br>**£'000**<br>**1,306**<br>**1,306**<br>**(1,349)**<br>**(43)**<br>**YMCA**<br>**Fairthorne**<br>**Housing**<br>**2022**<br>**£'000**<br>**6,537**<br>**(2,685)**<br>**3,852**|YMCA<br>Fairthorne<br>Housing<br>01/01/2020 -<br>30/04/2021<br>2021<br>£'000<br>1,814<br>1,814<br>(1,651)<br>163<br>YMCA<br>Fairthorne<br>Housing<br>2021<br>£'000<br>6,676<br>(2,781)<br>3,895|**Park Families**<br>**Limited**<br>**01/10/2021 -**<br>**30/04/2022**<br>**2022**<br>**£'000**<br>**394**|
|---|---|---|---|
||||**394**<br>**(642)**|
||||**(248)**|
||||**Park Families**<br>**Limited**<br>**2022**<br>**£'000**<br>**778**<br>**(718)**|
||||**60**|



Page 37