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2021-03-31-accounts

Report and Financial Statements for the year ended 31 March 2021

Company Registration No. 05402004 Charity Registration No. 1110590

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Patron
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Patron HRH The Princess Royal President Nigel Mansell CBE Chair of Trustees David Thomlinson Chief Executive Ndidi Okezie OBE

Report and Financial Statements for the year ended 31 March 2021

Contents Page
Charity information 4
Trustees’ report 6
Independent auditors’ report 22
Consolidated statement
of fnancial activities 27
Balance sheets 28
Consolidated statement of cash fows 29
Notes to the Financial Statements 30
UK YOUTHI REPOR

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UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Charity information

The Trustees are pleased to present their report of the work of the Charity for the financial year ended 31 March 2021.

Reference and administrative details:

Charity number: 1110590 Company number: 05402004 Principal Office: UK Youth Avon Tyrrell Outdoor Centre Bransgore Hampshire BH23 8EE Auditors: Mazars LLP 6 Sutton Plaza Sutton Court Road Sutton Surrey SM1 4FS

Bankers: Barclays Bank plc 7th Floor United Kingdom House 180 Oxford Street London W1D 1EA

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UK Youth Trustee Board

As a charitable company, the Trustees of the Charity are also its Directors for the purposes of companies’ law. Throughout this report the Directors are collectively referred to as the Trustees. The Trustees serving during the year and since the year-end were as follows:

Chair

Lady Anne Stoneham MBE (retired February 2021)

David Thomlinson (appointed as Chair February 2021)

Vice Chair

Mark Wakefield (retired February 2021)

Matt Price (appointed as Vice Chair February 2021)

Honorary Treasurer

Daniel Chan

Trustees

Kamara Bennett Wayne Bulpitt CBE Nicholas Capstick Aaron D’Souza Obum Ekeke Ben Jessup Rebecca MacDonald

Iain McDougall Graeme Swan Kira Wong O’Connor

David Thomlinson (appointed September 2020)

Standing committees

Finance Committee: Daniel Chan (Chair), Aaron D’Souza, Rebecca MacDonald, Anne Stoneham (retired February 2021), David Thomlinson (appointed February 2021)

Organisational Development Committee: Mark Wakefield (Chair, retired February 2021), Iain McDougall (Chair, appointed February 2021), Anne Stoneham (retired February 2021), Ben Jessup, David Thomlinson (appointed February 2021)

Chief Executive and Company Secretary

Ndidi Okezie OBE

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Trustees’ Report

Statement from our Chair

It is with great pleasure that I prepare this, my first statement, to accompany our 2020/21 Trustees’ Report. Having joined UK Youth as a Trustee in 2020, I took on the role of Chair in February 2021, following Lady Anne Stoneham stepping down after more than thirty years of service to the Charity. I am so grateful for the leadership shown by Anne; her commitment to UK Youth and the young people we are here to serve has been outstanding, and I am privileged to have now taken up the reins to continue her great work. 2020 was a unique year for us, with both the challenges and opportunities for impact that the Covid-19 pandemic brought about. Over the past financial year, young people have faced profound challenges, including limited access to education and opportunities, reduced social interaction leading to increased loneliness, and many other difficulties navigating this “new normal”. We have witnessed the extraordinary resilience, creativity and hope of the next generation in facing these challenges head on.

UK Youth was, of course, greatly impacted by the pandemic. The lengthy closure of Avon Tyrrell, our outdoor learning centre in the New Forest, meant that we had to reduce our headcount at the site by 25 percent. I am immensely proud of the continued resilience and dedication to young people demonstrated by our outdoor learning team in what has been a very challenging year.

maximum impact. Together we designed a new operating model to ensure we have the leadership, structure, processes, capabilities, technology and culture that can deliver on this strategy. I am confident in the outcome of our first year of work, and believe we have the right structure in place to deliver on this strategy.

In order to ensure that UK Youth was able to respond to the growing support needs from across the youth sector and its young people, we took deliberate steps to secure financial sustainability. Thanks to the incredible partnership support from our funders, the hard work of staff, and the prudence of our Trustees, we ended the year with a strong reserves position. Despite the challenges of the last year, we have seen our supporters grow their commitment to UK Youth; continuing to raise money through corporate partnerships, taking part in fundraising events and activities, and awarding grants. I am confident that we are in a position to be able to deliver on a new bold strategy of impact as we look to address the pressing needs of the youth sector and young people.

Reflecting on this year fills me with great faith in the strategy, people, and purpose of UK Youth, and I believe that together we will have a profound impact on millions of young lives as we work towards achieving our 2025 strategic goals.

David Thomlinson

The past year also marked the first year of UK Youth’s new 2025 strategy, ‘Unlocking Youth Work’. During this first year, we worked on building the foundations that will allow us to respond to the growing needs of young people and the youth sector and deliver on our bold new strategy. This required our Board and Senior Leadership Team to ensure that UK Youth was set up for

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Statement from our CEO

Youth workers have been a group of unsung heroes in the pandemic. It is a profession and sector that many people do not fully understand and therefore its expertise is often underutilised. The focus on youth work through our involvement in the Guardian and Observer Charity Appeal, across such a prominent national media platform, was a wonderful win for the sector.

Ending this year marks the end of my first full year as CEO at UK Youth, and it’s clearly an understatement to say that it was a uniquely challenging and thoroughly all-encompassing year. As we start to see the glimmers of hope for reopening, I am immensely proud of the work that UK Youth has done over the year 2020/21. Our people have been extraordinary. We were blessed to be able to partner with so many supporters and organisations across different sectors to ensure that young people would not only survive but be supported to come out of this and still thrive! Despite the numerous challenges, we were intentional about championing young people and during the darkest days of the pandemic, it was indeed young people that demonstrated the optimism and courage from which we all drew strength.

We can be so proud of the way we have responded, adapted, supported and led during the challenging year that was 2020/21. Through our work on our strategy, we are now crystal clear on our north star and the work to deliver on the promise of #unlockingyouthwork begins in earnest. We are building a movement of change, galvanising likeminded individuals, organisations from multiple sectors, governments and businesses to work together to create a society that understands, champions and delivers effective youth work for all.

The overarching theme during this year for me has been one of hope. In the midst of darkness, “hope” remains a powerful weapon to wield. UK Youth joined a collective of cross-sector organisations to launch The Hope Collective, a legacy campaign inspired by the dreams of 12-year-old Damilola Taylor. Together with The Damilola Taylor Trust, The National Citizenship Service Trust, The Rio Ferdinand Foundation, The Co-Op, the Met Police and many others, the collective launched the inaugural annual Day of Hope on the 7th December 2020. A diverse nationwide youth advisory group has led the campaign and delivered a series of events seeking to challenge the negative narratives that tend to surround young people.

Ndidi Okezie OBE

At the end of the year, UK Youth held the first Inspiring Hope Awards, delivered online, in association with UPS. We put out a call for nominations for young people, youth workers and organisations that have inspired hope in some way during this year and received almost 400 fantastic nominations, clearly demonstrating the appetite for more forums to amplify and celebrate the amazing stories that surround youth work.

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Financial review and strategic report

Achievements and performance

In 2020/21 our open network grew to more than 8,000 youth organisations, including through our nation partners in Scotland, Wales and Northern Ireland. The UK Youth Movement is open to all and collectively reaches 5.3 million young people across the UK. Together we are focused on unlocking youth work as the catalyst of change that is needed now more than ever.

The UK Youth Movement is open to all and collectively reaches 5.3 million young people across the UK

As a result of the pandemic and lockdown, we prioritised supporting youth organisations to remain sustainable and resilient. We moved provision online and delivered 82 events to over 6,700 youth workers and sector leaders on a range of topics from regional and themed networking events to webinars on crosssector partnerships and bespoke training including safeguarding young people online. Alongside this, we also worked in partnership with the National Youth Agency to launch youthworksupport.co.uk, a microsite providing tools and resources to support youth organisations to adapt through the pandemic. To date the site has had over 100,000 visits and we have worked with young people and youth workers to cocreate a number of resources including A Guide to Digital Youth Work.

Following the murder of George Floyd and the Black Lives Matter protests across the world, we were inundated with heartfelt cries and appeals from young Black people who felt they didn’t have the opportunity to share their thoughts and experiences on racism in the UK and beyond. So alongside activist Jermain Jackman and youth organisations My Life My Say and The Diana Award, we launched the #YoungAndBlack campaign, a space to share, listen, and learn from the experiences of young Black people. In 2020/21, the #YoungAndBlack campaign saw 70 stories shared across our platforms, with an estimated overall social media reach of 6.5 million. The campaign has led to the formation of TRIUMPH, a group of youth organisation representatives that are addressing how the youth sector can do more to tackle racial inequality. #YoungAndBlack has also inspired funding for a new multi-million pound programme that aims to reimagine mental health support for young people from racialised communities.

In November, UK Youth launched our new UK Youth Fund, with an initial commitment of funding from DCMS through the Community Match Challenge with Pears Foundation and the Paul Hamlyn Foundation. In 2020/21, 111 youth organisations were awarded a grant from the funding, totalling £919,647. The remaining £920,005 was distributed to 79 organisations in the next financial year, by May 2021.

We were also delighted to be selected as a beneficiary of the annual Guardian and Observer Charity Appeal alongside Young Minds and Child Poverty Action Group. UK Youth received a donation of £583,000 from the Appeal and formed a committee to distribute funds to youth organisations from April 2021.

UK Youth will look to build upon our successful grant distribution role over the coming years, working to provide sustainable funding for the youth sector.

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We recognise the unique position we hold and the role we can play in creating a resilient youth sector. Through our new strategy we will look to grow our work in this space, by not only opening up more funding opportunities for local youth organisations but also providing resources, support, and training to ensure high quality youth work is available to more young people.

Despite the impact of Covid-19 curtailing the number of in-person services we were able to offer, UK Youth was still able to work with many young people. Thanks to the creativity of our teams and youth workers, we continued delivery of our skills development programmes through online adaptions, allowing us to reach 10,244 young people.

Active Youth, a programme supported by Sport England that engages young people through physical activity, was due to be delivered in-person. Instead, training for youth workers, a crucial element of programme delivery, moved online in August 2020. This meant we could progress with delivery, mitigating the risk of Covid-19 spread, restrictions and further delays. This approach allowed some delivery partners to excel, even surpassing their initial targets through engaging groups of the most vulnerable and least active young people.

The Generation Code Accelerator programme, delivered in partnership with Microsoft, aims to address the lack of embedded, sustainable digital provision in the youth sector by inspiring and upskilling youth workers to become more digitally minded and use the skills in their practices. The work of Generation Code had prepared youth workers for moving things online, meaning they could move to digital provision with ease.

“The skills we gained during the first two challenges allowed us to release a podcast about mental health and wellbeing, almost as soon as the lockdown was implemented. Generation Code has given us the confidence to reach out to people for support and the insight to know who to ask for help.”

(Youth worker, Aik Saath youth organisation)

In October, UK Youth and Beatfreeks partnered to run ‘CXNCELLED’, a three day online festival delivering Be Internet Citizens, with the aim to educate and inspire young people to be positive digital citizens. CXNCELLED, supported by Google.org and YouTube, was attended by 854 people and totalled 16,159 social media impressions.

At Avon Tyrrell, we were able to offer an extensive range of inclusive outdoor activities and tailored programmes. Despite being closed for 223 days due to the pandemic, we engaged with 4,505 children and young people as part of school groups, youth organisation trips or other visits. We have also used lockdown periods to improve Avon Tyrrell’s facilities and grounds, including building a new climbing tower, kindly funded by the Gosling Foundation.

In addition to adapting our programmes to reach young people through digital innovations, we have recognised the need to engage young people in new ways, meeting them where they are and responding to changing needs.

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Financial review

Despite the external challenges, the financial performance during the year was strong. We worked hard to continue to raise the funding needed to support youth work and young people, and were responsible in spending it in a way that aimed to maximise our impact while maintaining the long-term financial stability of UK Youth.

Income

In 2020/21, our income was £7.7 million. This was achieved through the generosity of individuals, trusts and foundations, Government and corporate supporters, as well as through our activities at Avon Tyrrell.

Where our money comes from

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5%
2%
22%
0%
5%
66%
Funding for youth work programmes Avon Tyrrell Outdoor Centre
Fundraising events Donations and legacies
Coronavirus Job Retention Scheme
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Income grew by £587,000 in the year

Of the total income of £7.7 million, £5.5 million was received as restricted income (money given for a specific purpose).

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Income from: 2020/21 2019/20 Change
£’000 £’000 %
Funding for
youth work 5,058 4,290 18%
programmes
Avon Tyrrell
384 1,598 -76%
Outdoor Centre
UK Youth
10 171 -94%
Movement
Donations and
1,679 630 167%
legacies
Fundraising
180 374 -52%
events
Investments 6 23 -74%
Coronavirus
Job Retention 356 0 n/a
Scheme
Total income 7,673 7,086 8%
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As the table shows, our income for 2020/21 was £587,000 (8%) higher than in 2019/20 – although the mix of funding changed significantly, mainly due to the impact of Covid-19. Our youth work programmes grew as we continued to deliver development programmes and distribute grants to the sector, with some funders agreeing to alter or remove restrictions on the funding due to the pandemic. Unfortunately, income from Avon Tyrrell fell as a result of its closure for long periods of the year. Income from youth organisations in the UK Youth Movement reduced significantly following a strategic decision, taken before the pandemic, to increase accessibility to the Movement by removing all joining fees. While income from fundraising events was adversely impacted by Covid-19, unrestricted income from other sources increased significantly – in particular linked to the Guardian and Observer Charity Appeal. Finally, we took advantage of the Government’s Coronavirus Job Retention Scheme as we looked to protect jobs in the Charity.

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Expenditure

In 2020/21, we spent £6.5 million as we worked to respond the needs created by the pandemic and more widely.

Where our money goes

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8%
4%
5%
19%
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64%
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Youth work programmes Avon Tyrrell Outdoor Centre Other Movement support Advocacy and communication Raising income

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Expenditure on: 2020/21 2019/20 Change
£’000 £’000 %
Youth work
4,194 4,277 -2%
programmes
Avon Tyrrell
1,221 1,647 -26%
Outdoor Centre
Other Movement
294 381 -23%
support
Advocacy and
270 196 38%
communication
Governance 16 15 7%
Raising income 506 557 -9%
Total
6,501 7,073 -8%
expenditure
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Our expenditure in the year fell by £572k (8%) compared to the results for 2019/20. This was driven by the impact of Covid-19, in particular with savings in costs at Avon

Tyrrell due to the strict limits on its use during lockdown. While our support for the sector remained extremely strong during the year, many of the costs associated with inperson events were avoided as much of our work moved online. This also accounted for savings in the costs of raising income. Our costs related to work advocating on behalf of young people and the sector, increased during the year as we invested in raising the profile of the positive impact of youth work during the pandemic.

Charitable funds

Total funds of the group were £3.7 million at 31 March 2021.

Our restricted funds of £0.3 million are funds donated for a specific purpose which have not yet been expended. These include donations given to provide bursaries and to support our capital investment programme at Avon Tyrrell. They also include funds representing two properties dedicated to supporting work with young people in specific geographical areas. Our intention is to sell these properties, when legal considerations and market conditions permit, and use the proceeds to support youth work in the local communities through local organisations.

Our designated funds of £2.0 million are funds which the Trustees have committed for specific purposes. It comprises: our fixed asset fund of £0.9 million (i.e. the value of the capital assets we have already invested in); funds ear-marked for strategic investments of £0.6 million (in particular related to our planned investment in digital systems); and unrestricted donations of £0.3 million that we plan to spend developing new approaches to programmatic delivery. We also have a fund of £0.1 million to support capital investment at Avon Tyrrell.

£270,000

spent on advocacy and communication as we raised the voices of young people during the pandemic

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Our general funds of £1.4 million are funds available for the ongoing support and development of the Charity. These include £0.2 million of funds representing properties held by our Ambition entity in our role as custodian trustees, which have now fallen to our ownership as the original beneficiary has closed. We expect to sell these in due course when legal considerations and market conditions permit. As the timing of sale is uncertain, the value of these properties is not considered to be part of our free reserves. The remainder of our general funds, amounting to £1.2 million, are our free reserves and are held in line with our Reserves Policy, set out below.

Reserves Policy and going concern

In setting the Reserves Policy, the Board of Trustees has considered the financial position of the Charity, the performance in recent years and expectations of future years, and the current and future liquidity cover. This is with the goal of ensuring we have the funds required to safely and consistently carry on our activities through periods of uncertainty.

The key considerations of the Board of Trustees included:

The Finance Committee annually reviews the Reserves Policy and the level of reserves, including free reserves, which are shown in the Financial Statements. This review is approved by the Board of Trustees.

Having regard to the guidance from the Charity Commission, the group’s strategic plans and economic conditions, the Board of Trustees judge that free reserves between £1.2 million - £1.6 million are required. This level is appropriate in order to ensure financial stability and act as a safeguard against volatile and unpredictable income streams or unforeseen expenditure and liabilities.

This represents an increase in the level of reserves expected by the Policy and was recommended by the Finance Committee before being approved by the Board of Trustees. This change in the year was as a result of the growing scale of activities of UK Youth and the increased uncertainty in the external environment, in particular in relation to Covid-19 and associated economic impacts.

The Finance Committee monitors the reserves of the group on a quarterly basis as part of their review of the management accounts.

As at 31 March 2021, the Group’s free reserves stood at £1.2 million (2020: £1.0 million) excluding properties valued at £0.2 million (2020: £0.2 million) held by Ambition (formally the National Association of Clubs for Young People). The Group’s unrestricted funds are £1.4 million (2020: £1.3 million), with £2.0 million (2020: £1.0 million) held in designated funds. The increase in free reserves at the year-end reflects the continued commitment to maintaining the financial resilience of the Charity and is within the new range set out in the Reserves Policy.

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The financial position going into the new financial year is strong and, with the easing of social distancing restrictions, the prospect of more face-to-face activities will continue to support financial performance, particularly through fundraising events and our activities at Avon Tyrrell. We are also seeing strong support from funders for young people and organisations working with them – and hope to play our part in ensuring that the impact of funding is maximised in 2021/22. On the other hand, the medium-term economic picture remains uncertain and we are continuing to carefully manage our costs in line with the financial performance of the Charity throughout the year and the broader context. We regularly monitor both in-year financial performance and current cash balances – and forecast these into the future.

We are also seeing strong support from funders for young people and organisations working with them – and hope to play our part in ensuring that the impact of funding is maximised in 2021/22.

Taking all the above into account, the Board of Trustees has a reasonable expectation that the Charity and the Group has adequate resources to continue operating for the foreseeable future. Accordingly, the Board

of Trustees believe that the going concern basis remains the appropriate basis on which to prepare the annual report and financial statements.

Investment Policy

The Board of Trustees considers that the appropriate balance of risk and return could best be achieved by investing free reserves in medium-term investments with a time horizon of 3-5 years, with the balance of free reserves to be invested in short-term cash deposits. The Board of Trustees has taken the decision to make investments in socially responsible assets in line with the mission of the Charity and its responsibility to maximise the positive impact for young people in all the Charity’s work. The Finance Committee monitors the investments on a quarterly basis as part of their review of the management accounts.

The investments were managed by the Cazenove Capital Charity Responsible Multi-Asset Fund throughout 2020/21. Over the course of the year, the value of these investments rose to £0.5 million (2020: £0.4 million).

All investments held by the Charity fall within those permitted by our Memorandum and Articles.

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Grant distribution

During the year, we received a grant from DCMS’s Community Match Challenge, which was matched by the Pears Foundation and the Paul Hamlyn Foundation. £0.9m was distributed to 111 grassroots organisations which support young people, in order to support them to address the critical issues posed by Covid-19.

Organisations working with young people in England, with a turnover under £250,000, were eligible to apply and a short-list was selected based on both the financial need of the organisation and the depth of impact of Covid-19 on young people in their communities. Grant panels assessed all short-listed applicants. Half of every grant panel was made up of young people and the other half by youth sector professionals.

Following the panels’ recommendations, due diligence was carried out on the organisations before the grants were made.

Good governance

Trustees recognise the importance of good governance as fundamental to the

success of UK Youth, promoting a culture where everyone works towards fulfilling the Charity’s vision and supporting compliance with relevant law and regulation. Trustees regularly review the governance and management of the Charity, considering the updated principles of the Charity Governance Code as appropriate to the structure and operations of the Charity.

Governing document

UK Youth is a company limited by guarantee, registered in England and Wales, governed by its Memorandum and Articles of Association dated 16 March 2005 as amended on 7 December 2016. It is registered as a charity with the Charity Commission for England and Wales. Organisations or individuals who are nominated by the Charity’s Advisory Councils can apply to become a Member of the Charity in the form required by the Trustees who will consider their application. There are currently 28 Members (regional youth associations). Trustees are also members by virtue of their office.

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Objectives and activities

The objects of the Charity are:

The activities employed by the Charity in pursuit of these objectives are set out in the Trustees’ Report and on the UK Youth Impact Microsite which gives more details on the activities, the approaches to measurement and the impact.

Public benefit outcomes related to the Charity’s aims

The Charity’s Trustees have complied with their duty in Section 4 of the Charities Act 2011 to have due regard to Public Benefit guidance issued by the Charity Commission. All Trustees give their time voluntarily and do not receive any private benefit from the Charity.

The public benefit outcomes identified by Trustees are as follows:

In pursuit of these objectives, the Charity works in a non-discriminatory manner.

The Board of Trustees

Trustees consist of the Honorary Officers (Chair, Vice-Chair and Treasurer) and Ordinary Trustees. The minimum number of Trustees is six and there is no maximum number.

Trustees are appointed by ordinary resolution at a general meeting of the members. Proposals to appoint Trustees are brought by recommendation of the Trustees or by a member submitted in writing in advance of the meeting. Trustees are appointed based on their expertise and experience whilst having regard for the desirability of maintaining within the Board of Trustees diversity and knowledge of the youth sector. Each year a third of the Board of Trustees retire by rotation and are eligible for re-election up to a maximum term of nine years unless otherwise approved by special resolution.

UK YOUTH I REPORT AND FINANCIAL STATEMENTS 15

The Board of Trustees is responsible for the strategic direction of the Charity and meets together with the Senior Leadership team four times a year to review progress and to ensure that the Charity is on track to meet its objectives.

Reporting to the Trustees is the Chief Executive who has direct responsibility for day to day management as well as the development and implementation of appropriate policies and strategies, assisted by their Senior Leadership team.

New Trustees undergo an induction process and sign a Trustees’ agreement. The induction process includes a briefing on Trustees’ legal responsibilities (under Charity and Company law), the content of the Memorandum and Articles of Association, the committee and decisionmaking processes, the work plan and recent financial performance of the Charity. During the induction new Trustees are encouraged to visit the offices of the Charity, meet key employees and discuss the work being undertaken. Trustees are encouraged to attend and participate in activities and events being organised by the Charity and attend appropriate training events where this will facilitate the undertaking of their role.

Where necessary, UK Youth provides the appropriate resources for professional development and updating the capabilities of the Trustees – and the Chair and

Chief Executive ensure that any new Trustees receive appropriate induction on appointment. The Board of Trustees carries out regular governance reviews and skills audits of Trustee capabilities to assess its own operations. This is particularly important in terms of continuing to operate well to discharge key responsibilities for setting strategic goals, having the right balance in terms of experience and expertise and sufficient oversight and monitoring of the Charity’s key risks. The Trustees are covered by Charity Trustee Assurance as provided by our insurers.

The Board of Trustees has delegated specific decisions to Board Committees via its formal Scheme of Delegation. The sub-committees throughout the financial year were: Finance and Organisational Development. Details of the members of these committees can be found on page 5.

The Board of Trustees responded to the challenges posed by the Covid-19 pandemic by convening exceptional joint meetings of the Finance and Organisational Development Committees. Detailed scenarios of the potential impact of the pandemic were reviewed and action plans monitored. The results of these measures were incorporated into the cycle of reporting to the Committees and the Board of Trustees and were regularly updated, including through weekly cash balance reporting. Following the initial impact of the pandemic, the Board and sub-committees re-established normal practices.

UK Youth Voice

UK Youth Voice is a youth engagement programme that enables young people to be at the heart of everything we do. We empower young people with the skills they need to be able to access opportunities, share their views and influence their own lives and the world around them – as well as feeding into the future development of UK Youth and organisations in the UK Youth Movement. The National Advisory Group

16 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

consists of young people aged between 18 and 25, from each region and nation (England, Wales, Scotland, Northern Ireland) and participants remains on the National Advisory Group for two years

Alongside this, we also engage young people from our wider network to share their views and engage in a range of opportunities that increases their aspirations and connections. Examples include: young people being part of our grant panels; young people co-designing and leading our #YoungAndBlack campaign; and young people supporting the design of our new 2021-25 strategy, Unlocking Youth Work. These opportunities introduce young people to their peers from across the country and their issues which may differ largely from their own. There is a focus on engaging young people who would otherwise not engage in formal structures allowing them to have a local, regional or national voice and progress into other social leadership roles.

The Senior Leadership Team

To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation, for operational matters including our support for young people and the sector, finance.

The Trustees regard the Senior Leadership team as the key management personnel of the Charity. During the year the Senior Leadership team was made up of the ‘Chief Executive’, the ‘Deputy Chief Executive and Director of Youth Work’ (who was on maternity for the majority of the year) and six directors; ‘Engagement and Advocacy’, ‘Partnerships and Fundraising’, ‘Operations and Avon Tyrrell’, ‘Finance’, Research and Impact’, and ‘National Programmes’.

Remuneration of the Senior Leadership team is set by the Organisational Development Committee who draw on a wide range of sources and establish ranges of remuneration giving an appropriate salary

structure within the Charity comparable with similar organisations, as well as reviewing performance of senior management.

Related parties

The Charity’s wholly owned trading subsidiary, Youth Work (UK) Ltd, was dormant during the financial year.

On 15 September 2017, the Charity entered into a Strategic Alliance Agreement with The National Association of Clubs for Young People trading as Ambition. As a result of this agreement, UK Youth appointed the majority of the Board of Trustees of Ambition and Ambition is therefore considered a subsidiary by virtue of deemed control. The objectives of Ambition are similar to those of UK Youth and it continues to have interests in properties, either directly or as a custodian trustee, with the aim of providing locations to youth work to take place.

Fundraising

We are extremely grateful for the donations our supporters give us, without which we could not do our work. We are committed to using their donations effectively and fundraising for our work in a responsible way.

Our supporters are at the heart of all our fundraising activity. UK Youth is registered

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UK YOUTH I REPORT AND FINANCIAL STATEMENTS

with the Fundraising Regulator and adheres to the Code of Fundraising Practice and an internal set of standards set out in the UK Youth Supporter Promise. Through paying our annual fundraising levy to the fundraising regulator, we are signed up to the fundraising preference service, and have received no requests to stop communicating during 2020/21. The Charity continues to be compliant with the Code of Fundraising Practice.

We are committed to ensuring that all our supporters are treated fairly and enabled to make informed decisions to support us.

The UK Youth Supporter Promise was developed to outline the standards we set ourselves and our commitment to UK Youth supporters. It focuses on four core areas:

We are committed to ensuring that all supporters are treated fairly and enabled to make informed decisions to support us and, as part of this commitment, we do not actively seek to raise donations from young people.

During 2020/21 we did not receive any formal complaints with regards to our fundraising activity.

We monitor our fundraising activity carefully, as well as the overall supporter experience. We continue to invest in our fundraising capacity through growing our team as we look to deliver an excellent supporter experience. We continually seek formal and informal feedback from our supporters to better understand their experiences.

We recognise the importance of having diverse income streams and have a broad base of supporters. In 2020/21 our fundraising income included:

UK Youth is compliant with data protection laws, and all individuals’ data is stored securely on UK Youth’s IT systems. There were no requests for removal of individuals’ data from our databases during 2020/21.

Safeguarding

The safeguarding of children, young people and adults at risk, as well as those who come into contact with the Charity, is paramount in all that we do as an organisation.

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We recognise our responsibility to promote safe practice and to protect the young people we engage with from harm. All employees and volunteers receive safeguarding training as part of their induction, followed by regular refresher training.

We are committed to identifying and minimising safeguarding risks across all our activities through appropriate training, risk assessments, policies and processes. We have a strong ethos throughout the Charity to deliver good safeguarding practices and we take seriously any report of suspected harm, abuse or neglect and have a robust process to deal with an incident if it were to arise.

We operate safe and transparent recruitment practices, which incorporates appropriate Disclosure and Barring Service (DBS) checks. We risk assess criminal records, and do not engage anyone who is deemed to present an unacceptable level of risk. We have a Safeguarding Policy, which sets out our mandatory standards and provides clear details of our reporting process. Safeguarding for the Charity is led by our Designated Safeguarding Officer who is supported by a small team, responsible for, amongst other responsibilities: regularly reviewing and enhancing the Safeguarding Policy and associated practices in line with legal and organisational developments; effective management of safeguarding incidents; providing advice and guidance; training; and reporting safeguarding incidents to the Charity’s Organisational Development Committee.

Our Equal Opportunities, Dignity at Work and Diversity Policy sets out our commitment to promoting equality for all and guarding against discrimination on the grounds of ethnicity or any other protected characteristic, including through our approach to recruitment, selection, training, development and promotion.

During the year, we enhanced our activities through an organisation-wide action plan that included, amongst other activities: implementing a new agile working policy; inclusion training for all staff; and ‘Space to Talk’ sessions, where staff were encouraged to share experiences and advice. We also starting using an anonymised recruitment tool meaning that candidates are shortlisted based on their competence, not their CVs. We expect this to support our efforts to recruit high-quality staff from underrepresented communities.

Equality, diversity and inclusion

As part of the society-wide response to concerns around discrimination, we launched our ‘Young and Black’ campaign, raising the voices of young, Black people. This was extremely successful in highlighting the particular issues that this community faces based on their ethnicity and has resulted in ongoing programmatic work to tackle systemic injustices.

We are passionate about these issues and remain committed to setting a high standard in terms of our approach to listening to and working with people from all communities in everything we do. We recognise that in order to achieve this we need to acknowledge where we are not doing enough and invest in understanding both the issues themselves and how we can improve as an organisation.

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UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Risk management

The Board of Trustees have a risk management strategy that comprises:

Work to address the risks is carried out by the Senior Leadership team, supervised by the Organisational Development Committee and reviewed on a regular basis by the Board of Trustees.

Principal risks during 2020/21 and our approach to their management were:

Financial sustainability

The Covid-19 pandemic introduced considerable and unforeseen uncertainty, which resulted in significant financial risks. These were principally centred around a potential fall in income related to: the cancellation of fundraising events; the closure of Avon Tyrrell; and the inability to deliver national programmes as youth services were suspended. In response to these challenges, we: looked to engage supporters online rather than through in-person events; made redundancies to ensure long-term viability of Avon Tyrrell, in addition to taking advantage of relevant

Government support such as the Job Retention Scheme; and worked with funders to agree a repurposing of restricted funds. More broadly, we increased scrutiny of our financial position, including increased and more regular monitoring and forecasting by both the Senior Leadership team and the Finance Committee to assess our income, solvency and liquidity.

Safeguarding

The safeguarding of young people and adults at risk continues to be a major priority of the Charity. We invest considerable time and resources in maintaining awareness of risks and best practice in safeguarding and in ensuring our policies and procedures are fully up to date and fit for purpose and risk assessment is embedded in our practices.

Health and wellbeing of staff

The pandemic greatly increased the physical and mental health risks to our staff. The London office remained closed for the whole of the year and the operations at Avon Tyrrell were greatly reduced too, meaning that many staff from across the organisation had to cope with furlough and working from home, in addition to the broader pressures of the pandemic. As a response, we increased our focus on supporting staff health and wellbeing through measures such as increasing our support for staff through an enhanced ‘Sickness Absence Policy’ and ‘Agile and Flexible Working Policy’, providing equipment and training to support physical and mental health when working from home, and introducing weekly ‘pause’ days over a month where staff were asked to not work in order to focus on their wellbeing.

New strategy and operating model

During the year, work continued on defining our new strategy, ‘Unlocking Youth Work’. This was done in parallel to a detailed review of our target operating model which seeks to improve all aspects of how we do our work in order to maximise our impact. While we believe this will yield considerable benefits in terms of our staff experience, operating

20 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

efficiency and ultimate impact, it necessarily required some disruption to existing approaches, including an organisation-wide restructure. Redundancies through this process were very low with the vast majority of staff fitting into an increased overall headcount. Work continues on upgrading our digital systems – another key stream of work. Throughout these changes, the Finance and Organisational Development Committees reviewed, challenged and approved significant decisions, considering the risks at each stage.

Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention of fraud and other irregularities.

Changes to legislation and regulation

Our operations are affected by many areas of regulation including those associated with fundraising and other aspects of charity and financial regulation. We regularly update and review our practices to ensure we meet the high standards of probity and transparency expected by our supporters, funders and regulators and comply with best practice guidance as well as regulatory requirements.

Trustees’ responsibilities in relation to the Financial Statements

Company law requires the Trustees to prepare Financial Statements that give a true and fair view of the state of affairs of the Group and of the Charity at the end of the financial year and of its surplus or deficit for the financial year. In doing so the Trustees are required to:

In accordance with Company law, as the Company’s directors, we confirm that:

Approved by the Board of Trustees on 9th September 2021 and signed on their behalf by:

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enables them to ensure that the Financial Statements comply with the

David Thomlinson Chair of Trustees

21

UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Independent auditor’s report to the members of UK Youth

Opinion

We have audited the financial statements of UK Youth (‘the parent charity’) and its subsidiaries (‘the group’) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are

relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Trustees’ Report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. 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.

22 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In 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 Strategic Report or the Directors’ Report included within the Trustees’ Report.

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

Responsibilities of Trustees

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

In preparing the financial statements, the Trustees are responsible for assessing the group’s and the parent 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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a

23

UK YOUTH I REPORT AND FINANCIAL STATEMENTS

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 the financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and the Charities Statement of Recommended Practice.

We evaluated the Trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted funds, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material

to the financial statements. Our audit procedures included but were not limited to:

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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.

24 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Use of the audit 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 and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

Signed:

Nicola Wakefield

(Senior Statutory Auditor)

for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey SM1 4FS Date: 12th October 2021

UK YOUTH I REPORT AND FINANCIAL STATEMENTS 25

26 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Consolidated statement of financial activities

Consolidated statement of financial activities (incorporating an income and expenditure account) for the year ended 31 March 2021.

Notes
Income from:
Donations and legacies
2
Charitable activities - non
formal education
3
Other trading activities -
fundraising events
4
Investments
5
Total
Expenditure on:
Raising funds
6
Charitable activities
7
Total
Net gains/(losses) on
investments
Net income/(expenditure)
Transfers between funds
Net movements in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 2021
Unrestricted Funds Restricted
Funds
Total
2021
General
Designated
£’000
£’000
£’000
£’000
919
-
760
1,679
1,014
-
4,794
5,808
180
-
-
180
6
-
-
6
2,119
-
5,554
7,673
506
-
-
506
1,740
-
4,255
5,995
2,246
-
4,255
6,501
101
-
-
101
(26)
-
1,299
1,273
196
975
(1,171)
-
170
975
128
1,273
1,288
987
161
2,436
1,458
1,962
289
3,709		 2020
Unrestricted Funds Restricted
Funds
Total
2020
General
Designated
£’000
£’000
£’000
£’000
480
-
150
630
1,872
-
4,187
6,059
374
-
-
374
23
-
-
23
2,749
-
4,337
7,086
557
-
-
557
2,075
160
4,281
6,516
2,632
160
4,281
7,073
(50)
-
-
(50)
67
(160)
56
(37)
(6)
56
(50)
-
61
(104)
6
(37)
1,227
1,091
155
2,473
1,288
987
161
2,436

This consolidated statement of financial activities includes all gains and losses during the year.

All amounts relate to continuing activities.

The consolidated statement of financial activities is for the Group as a whole. The total underlying surplus for the year for the Charity only was £1,183,000 (2020: deficit of £40,000).

27

UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Balance sheets

Consolidated and charity balance sheets as at 31 March 2021

Notes
Fixed assets
Tangible assets
11
Investments
12
Current assets
Stock
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due in less
than one year
14
Net current assets
Total assets less current liabiities
Creditors: amounts falling due after
more than one year
15
Total net assets
The funds of the Group:
Restricted income funds
16
Unrestricted funds:
General funds
17
Designated funds
17		 Group
2021
2020
£’000
£’000
1,241
1,242
452
351
1,693
1,593
13
17
409
365
3,717
3,915
4,139
4,297
(2,082)
(3,408)
2,057
889
3,750
2,482
(41)
(46)
3,709
2,436
289
161
1,458
1,288
1,962
987
3,709
2,436		 Charity
2021
2020
£’000
£’000
921
922
451
350
1,372
1,272
13
17
513
471
3,616
3,902
4,142
4,390
(2,076)
(3,402)
2,066
988
3,438
2,260
(41)
(46)
3,397
2,214
120
81
1,315
1,146
1,962
987
3,397
2,214

The Charity’s net movement in funds for the year was an increase of £1,183,000 (2020: deficit of £40,000).

The financial statements set out on pages 27-43 were approved by the Board of Trustees on 9th September 2021 and signed on their behalf by:

David Thomlinson

Chair of Trustees

Company number 05402004 Charity number 1110590

28 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Consolidated statement of cash flows

Consolidated statement of cash flows for the year ended 31 March 2021

----- Start of picture text -----
Notes 2021 2020
£’000 £’000
Cash flows from operating activities:
Net cash (used in)/provided by operating activities 19 (86) 1,654
Cash flows from investing activities:
Dividends, interest and rents from investments 6 23
Purchase of investments - (400)
Purchase of property, plant and equipment (113) (194)
Net cash used in investing activities (107) (571)
Cash flows from financing activites:
Repayment of loans (5) -
Cash inflows from new borrowing - 46
Net cash (used in)/provided by financing activities (5) 46
Change in cash and cash equivalents in the year (198) 1,129
Cash and cash equivalents at the beginning of the year 20 3,915 2,786
Cash and cash equivalents at the end of the year 20 3,717 3,915
UK YOUTH I REPORT AND FINANCIAL STATEMENTS 29
----- End of picture text -----

Notes to the Financial Statements for the year ended 31 March 2021

1. Accounting policies

A summary of the more important accounting policies, which have been consistently applied, is set out below.

UK Youth is a company limited by guarantee incorporated in England and Wales and a charity registered with the Charity Commission for England and Wales.

The Financial Statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)) and the Companies Act 2006. The Trustees have reviewed the going concern position and consider it is appropriate for these Financial Statements to be prepared on the going concern basis.

UK Youth meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policies.

The consolidated group Financial Statements include the Financial Statements of UK Youth (charity number 1110590, company number 05402004) (“the Charity”) and its

subsidiary undertakings, The National Association of Clubs for Young People and Youth Work (UK) Limited. The accounting year end for all undertakings is 31 March. There was an additional 100% owned subsidiary company, Youth Achievement Trust which was incorporated on 27 December 2013, and did not trade in the periods ended 31 March 2021 or 31 March 2020 and so has been excluded from the consolidation on the grounds that it is not material.

On 15 September 2017, the Charity entered into a Strategic Alliance Agreement with The National Association of Clubs for Young People trading as Ambition. As a result of this agreement, UK Youth appointed the majority of the Board of Trustees of Ambition and it is therefore considered a subsidiary by virtue of deemed control.

Recognition of income on long-term performance related grants and contracts: In recognising income over the life of these contracts, judgments are made in connection with the expected overall performance on each contract and the progress made in the accounting period; and,

Valuation of property assets: Freehold properties held were valued by an

30 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

independent professionally qualified surveyor in September 2017. The valuations have been reviewed in the light of movements in relevant indices of property values since the date of the valuations and it has been concluded that there have been no significant changes to the fair value of the properties.

1.4 Funds

Following the requirements of the Charities SORP (FRS102) all the funds of UK Youth have been analysed over the different types of funds, which are:

Restricted funds are those where the donor has imposed restrictions on how the fund may be used, but which do not prevent the fund being spent.

Unrestricted funds are those which are not subject to any special restrictions and they can be used as the Trustees decide.

Designated funds are part of unrestricted funds set aside for a purpose specified by Trustees.

General funds are all other unrestricted funds.

1.5 Income

All income has been included in the Consolidated Statement of Financial Activities on an accruals basis. Donations and grant income is only recognised where and to the extent that any terms and conditions have been met and there is unconditional entitlement to the income. In the case of performance related grants and contracts, income received in advance is deferred and released in line with performance. That part of the income which has been deferred is included in creditors.

1.6 Expenditure

All expenditure is included in the Consolidated Statement of Financial Activities on an accruals basis.

Expenditure on charitable activities is all expenditure directly relating to the objects of the Charity. Expenditure on raising funds is expenditure incurred in seeking voluntary contributions to the Charity and organising activities to generate funds. Support costs are allocated based on the approximate time spent on each activity.

1.7 Grants payable

Grants payable are included in the Statement of Financial Activities as expenditure in the period in which the award is made. Grants which have been approved and agreed with other organisations but which are unpaid at the year-end are accrued. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is released are not accrued.

1.8 Tangible assets

Tangible assets brought into use are depreciated over their estimated useful lives. Depreciation rates vary according to the class of asset and are principally:

Avon Tyrrell cabins and boathouse - straight line over 20 years

Avon Tyrrell equipment - straight line over 5-10 years

Computers - straight line over 3 years

Fixtures, fittings and office equipment - straight line over 5-10 years

Leasehold improvements of Avon Tyrrell - straight line over 20 years

Properties held in the subsidiary the National Association of Clubs for Young People are not depreciated. These properties come into ownership of the subsidiary when youth associations close down and the subsidiary is named in the constitutional documents of the association as the residual beneficiary on closure. The Trustees intend to dispose of these properties as soon as appropriate arrangements can be put in place.

31

UK YOUTH I REPORT AND FINANCIAL STATEMENTS

1.9 Investments

Listed investments are included in the balance sheet at mid-market value. Gains and losses whether realised or unrealised are reflected in the Consolidated Statement of Financial Activities.

1.10 Stock

Stock is valued at the lower of cost on the first in first out method and net realisable value.

1.11 Debtors

Trade and other debtors are recognised at the settlement amount due, less any provision for bad or doubtful amounts. Such provisions are specific and applied in a consistent manner based on aged debts and other factors affecting potential recoverability.

1.12 Creditors

Trade and other creditors are recognised at transaction price due, after allowing for any trade discounts. Deferred income represents invoices raised and cash receipts, for which income recognition criteria is not yet met, and will be satisfied in future accounting periods. Such amounts are not discounted. Deferred income relates to funding received from various sources in advance of the year end in respect of activities which were carried out after the year end.

1.13 Concessionary loans

Loans made and received in pursuit of the Charity’s charitable purposes are held within debtors and creditors respectively and are stated at original cost and subsequently adjusted for any subsequent repayment or impairment.

1.14 VAT

The Charity and its subsidiary, the National Association of Clubs for Young People, are partially exempt for VAT. VAT incurred which cannot be recovered is written off as part of support costs.

32 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Notes to the Financial Statements

2 Income from donations and legacies

Unrestricted
Restricted
Total
2021
£’000
£’000
£’000
Donations from individuals and corporates
671
357
1,028
Legacies
-
-
-
Grants from trusts and foundations
248
403
651
919
760
1,679
3
Income from charitable activities: non-formal education
Programme funding from public sector sources
208
2,167
2,375
Programme funding from other sources
56
2,627
2,683
Total programme funding
264
4,794
5,058
Income from Avon Tyrrell Outdoor Centre
384
-
384
Other income from non-formal education
10
-
10
Coronavirus Job Retention Scheme (CJRS)
356
-
356
1,014
4,794
5,808
Programme funding from public sector sources
Cabinet Offce - National Citizenship Service
207
-
207
Dept for Digital, Culture, Media & Sport
-
1,003
1,003
Sport England - Active Youth
-
726
726
Sport England - Outdoor Activators
-
94
94
National Lottery Community Fund
-
300
300
National Lottery Heritage Fund
-
44
44
British Council
-
-
-
Access Foundation
-
-
-
National Health Service
1
-
1
Home Offce & Local Authorities
-
-
-
208
2,167
2,375		 Unrestricted
Restricted
Total
2020
£'000
£’000
£’000
304
5
309
12
-
12
164
145
309
480
150
630
174
1,552
1,726
-
2,564
2,564
174
4,116
4,290
1,598
-
1,598
100
71
171
-
-
-
1,872
4,187
6,059
104
-
104
-
1,269
1,269
-
90
90
-
104
104
51
-
51
-
23
23
19
-
19
-
66
66
174
1,552
1,726

4 Income from other trading activities: fundraising events

Art for Youth exhibition and auction
Fundraising activities
Sponsored challenge events
5
Income from investments
Interest received		 Unrestricted
and total
2021
£’000
107
51
22
180
Unrestricted
and total
2021
£’000
6
6		 Unrestricted
and total
2020
£’000
170
133
71
374
Unrestricted
and total
2020
£’000
23
23

33

UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Notes to the Financial Statements

6 Expenditure on raising funds

Expenditure on raising funds
Direct costs
Costs of fundraising events
Support costs		 2021
£’000
347
68
91
506		 2020
£’000
347
121
89
557
Non-formal educational
programmes
Avon Tyrrell Outdoor
Centre
Other non-formal
education
Communications and
policy
Governance
Total		 Activities
undertaken
directly
Grant
funding of
activities
Support
costs
Total
2021
£’000
£’000
£’000
£’000
2,388
952
854
4,194
1,014
-
207
1,221
191
-
103
294
231
-
39
270
16
-
-
16
3,840
952
1,203
5,995		 Activities
undertaken
directly
Grant
funding of
activities
Support
costs
Total
2020
£’000
£’000
£’000
£’000
2,263
1,155
859
4,277
1,440
-
207
1,647
279
-
102
381
151
-
45
196
15
-
-
15
4,148
1,155
1,213
6,516

Support costs consist of the costs of the Charity’s head office, Chief Executive, finance, HR and IT functions. Support costs are allocated based on the approximate time spent on each activity.

8 Staff costs

The average weekly number of people employed (Group and Charity) were:
Full time
Part time
Total
Staff costs were made up as follows:
Wages and salaries
Redundancy costs
Social security costs
Pension costs		 2021
2020
number
number
85
82
15
17
100
99
2021
2020
£’000
£’000
2,831
2,676
28
-
270
242
109
96
3,238
3,014

Redundancy and ex-gratia payments were made to 9 employees during the year (2020: nil).

During the year ended 31 March 2021 10 (2020: 6) key management personnel received remuneration totalling £593,637 (2020: £472,570).

During the year ended 31 March 2021 3 employees received remuneration between £60,000 and £69,000 (2020: 3), no employees received between £70,000 and £79,999 (2020: 1) no employees received between £80,000 and £89,999 (2020: 1); and 1 employee received between £90,000 and £99,999 (2020: nil)

Trustees do not receive any remuneration for their services to UK Youth or any subsidiary.

During the year ended 31 March 2021 no trustees were reimbursed for expenses incurred in their role as trustees (2020: 4 trustees were reimbursed a total of £834).

34 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Notes to the Financial Statements

9 Pension costs

The Charity contributes up to 5% matched funding into various stakeholder pension schemes. There were 103 (2020: 103) members in these schemes. The amounts paid in respect of these were £109,000 (2020: £96,000).

10 Net movement in funds

Expenditure charged in arriving at the net movement in funds includes:

2021 2020 £’000 £’000 Depreciation 114 129 Auditors’ remuneration: - audit services 14 13 - other services 3 -

35

UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Notes to the Financial Statements

11 Tangible assets

Group
Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Accumulated
depreciation
At 1 April 2020
Charge for year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2021
Charity
Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Accumulated
depreciation
At 1 April 2020
Charge for year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2021		 Freehold property
Outdoor activity
centre property
improvements
Outdoor activity
centre equipment
Outdoor activity
centre cabins and
boathouse
Furniture, fxtures,
fttings and IT
Total
£’000
£’000
£’000
£’000
£’000
£’000
320
375
225
1,259
161
2,340
-
-
113
-
-
113
320
375
338
1,259
161
2,453
-
174
111
752
61
1,098
-
19
12
55
28
114
-
193
123
807
89
1,212
320
182
215
452
72
1,241
320
201
114
507
100
1,242
Freehold property
Outdoor activity
centre property
improvements
Outdoor activity
centre equipment
Outdoor activity
centre cabins and
boathouse
Furniture, fxtures,
fttings and IT
Total
£’000
£’000
£’000
£’000
£’000
£’000
-
375
225
1,259
161
2,020
-
-
113
-
113
-
375
338
1,259
161
2,133
-
174
111
752
61
1,098
-
19
12
55
28
114
-
193
123
807
89
1,212
-
182
215
452
72
921
-
201
114
507
100
922

All tangible fixed assets are used for charitable purposes.

36 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Notes to the Financial Statements

----- Start of picture text -----
|||||| |---|---|---|---|---| |12|Investments| |Group|Group|Charity|Charity| |2021|2020|2021|2020| |£’000|£’000|£’000|£’000| |Listed investments|452|351|451|350| |Subsidiary undertakings|-|-|-|-| |452|351|451|350|

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

Listed investments all comprise shares listed on a recognised stock exchange. Their value is determined by the mid-market value at the balance sheet date.

Movements during the year:

----- Start of picture text -----
|||||| |---|---|---|---|---| |Group|Group|Charity|Charity| |2021|2020|2021|2020| |£’000|£’000|£’000|£’000| |At 1 April 2020|351|1|350|-| |Acquired during the year|-|400|-|400| |Change in market value|101|(50)|101|(50)| |Disposals|-|-|-|-| |At 31 March 2021|452|351|451|350|

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

Investments held at 31 March 2021 exceeding 5% of the total market value were as follows:

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£'000|£'000| |SUTL Cazenove Charity Responsible Multi-asset Fund A Account|451|350|

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

The subsidiary undertakings are as detailed below:

----- Start of picture text -----
|||||| |---|---|---|---|---| |Net assets /| |Country of|(liabilities) at 31| |Holding|Incorporation|Principal activity|March 2021| |£’000| |Youth Work UK Limited (Limited by shares)|100%|UK|Dormant|(3)| |National Association of Clubs for Young People trading as| |Deemed Control|UK|Youth work|315| |Ambition (Limited by guarantee)|

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

Details of transactions with subsidiaries during the year and balances at the year end are set out below. All transactions are removed on consolidation.

----- Start of picture text -----
||||| |---|---|---|---| |Subsidiary|Transactions|Income|Creditor| |£’000|£’000| |Youth Work UK Limited|None|-|(3)| |Current| |National Association of Clubs for|account| |Young People trading as Ambition|financing|90|(104)|

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

UK YOUTH I REPORT AND FINANCIAL STATEMENTS 37

Notes to the Financial Statements

13 Debtors

Trade debtors
Other debtors
Prepayments
Amount owed by Subsidiaries		 Group
Group
2021
2020
£’000
£’000
139
226
240
100
30
39
-
-
409
365		 Charity
Charity
2021
2020
£’000
£’000
139
225
239
100
30
39
105
107
513
471

14 Creditors: amounts falling due in less than one year

Trade creditors
Other creditors
Accruals
Loan: Postcode Innovation Trust
Deferred income		 Group
Group
2021
2020
£’000
£’000
194
206
143
113
488
453
8
4
1,249
2,632
2,082
3,408		 Charity
Charity
2021
2020
£’000
£’000
194
203
140
113
485
450
8
4
1,249
2,632
2,076
3,402

15 Creditors: amounts falling due after more than one year

Loan: Postcode Innovation Trust
The loan is repayable by instalments over 6 years
Amount repayable between 1 and 2 years
Amount repayable between 2 and 5 years
Amount repayable over 5 years		 41
46
8
8
25
25
8
13		 41
46

38 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Notes to the Financial Statements

16 Restricted income funds

Non formal education programmes:
Sport England, Active Youth
Spirit of 2012 and #iwill Fund, EmpowHER
UPS Foundation, Road Code
Monday Charitable Trust, Future Proof
Coca Cola European Partners, Reach Up
Google.org, Be Internet Citizens
Microsoft, Generation Code Accelerator
Spirit of 2012, Sound Creators
Sport England, Outdoor Activators
The Coach Foundation, Dream It Real
IBM
NESTA, Covid Rapid Response Challenge
Lloyds Banking Group, Money For Life
The Clothworkers’ Foundation, Your Space
Youth Endowment Fund
Co-Op Foundation, Belong Collective
Clarion Housing, Housing Association Youth Network
Young Minds
Bursary Fund
The Childhood Trust
Other restricted funds:
DCMS, Community Match Challenge
National Lottery Community Fund, Covid-19 Emergency Funding
Donations and grants towards capital expenditure
Youth Futures Foundation
PricewaterhouseCoopers
National Lottery Heritage Fund
Action Academy
Restricted funds - Charity
Ambition - Bridgnorth fund
Ambition - Allendale Property
Ambition - Hetton Lyons Property
Restricted Funds - Group		 Funds at 1
April 2020
Income
Expenditure
Transfers
Funds at
31 March 2021
-
726
374
(352)
-
-
716
716
-
-
-
483
323
(160)
-
-
480
145
(335)
-
-
311
280
(31)
-
-
281
161
(120)
-
-
200
140
(60)
-
-
113
113
-
-
-
94
94
-
-
-
83
83
-
-
-
70
70
-
-
-
61
61
-
-
-
49
49
-
-
-
44
44
-
-
-
43
43
-
-
-
31
31
-
-
-
23
23
-
-
-
20
20
-
-
12
19
(5)
-
36
-
12
12
-
-
-
-
1,003
1,003
-
-
-
300
300
-
-
69
128
-
(113)
84
-
70
70
-
-
-
60
60
-
-
-
44
44
-
-
-
1
1
-
-
81
5,465
4,255
(1,171)
120
-
89
-
-
89
50
-
-
-
50
30
-
-
-
30
161
5,554
4,255
(1,171)
289

Non formal education programmes represent funding received from public sector sources, trusts and foundations, and corporate supporters to carry out agreed programmes of non-formal education.

UK YOUTH I REPORT AND FINANCIAL STATEMENTS 39

Notes to the Financial Statements

40 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Notes to the Financial Statements

17 Unrestricted funds:

Group
General funds
Designated funds
- Programmatic fund
- Priority projects fund
- Avon Tyrell development fund
- Fixed assets fund
Charity
General funds
Designated funds
- Programmatic fund
- Priority projects fund
- Avon Tyrell development fund
- Fixed assets fund		 Funds at 1 April
2020
Income
Expenditure
Net gains on
investments
Transfers
Funds at 31
March 2021
£'000
£'000
£'000
£'000
£'000
£'000
1,288
2,122
2,249
101
196
1,458
-
-
-
-
335
335
-
-
-
-
641
641
65
-
-
-
-
65
922
-
-
-
(1)
921
2,275
2,122
2,249
101
1,171
3,420
1,146
2,120
2,248
101
196
1,315
-
-
-
-
335
335
-
-
-
-
641
641
65
-
-
-
-
65
922
-
-
-
(1)
921
2,133
2,120
2,248
101
1,171
3,277

Programmatic fund represents the amount set aside to invest in trialling new programmatic approaches for the benefit of young people. Priority projects fund represents amounts expected to be spent on strategic investments, in particular digital infrastructure. The Avon Tyrrell development designated fund represents funds set aside to meet costs of developing the outdoor centre at Avon Tyrrell. The Fixed assets designated fund represents the net book value of the tangible fixed assets of the Charity and transfers into this fund have been made accordingly. Freehold properties held by Ambition are not included in the value of this fund.

18 Analysis of assets between funds

Group
Tangible assets
Investments
Cash at bank and in hand
Other net current liabilities
Total net assets
Charity
Tangible assets
Investments
Cash at bank and in hand
Other net current liabilities
Total net assets		 Unrestricted Funds
Restricted
Total
Funds
2021
General
Designated
£'000
£'000
£'000
£'000
240
921
80
1,241
452
-
-
452
2,467
1,041
209
3,717
(1,701)
-
-
(1,701)
1,458
1,962
289
3,709
-
921
-
921
451
-
-
451
3,262
234
120
3,616
(1,591)
-
-
(1,591)
2,122
1,155
120
3,397

UK YOUTH I REPORT AND FINANCIAL STATEMENTS 41

Notes to the Financial Statements

19 Reconciliation of net income to net cash flow from operating activities

Net income/expenditure for the reporting period as per the statement of fnancial activities
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Dividends, interest and rents from investments
Decrease/(increase) in stocks
Increase in debtors
(Decrease)/increase in creditors
Net cash (used in)/provided by operating activities		 2021
2020
£’000
£’000
1,273
(37)
114
129
(101)
50
(6)
(23)
4
(5)
(44)
(160)
(1,326)
1,700
(86)
1,654

20 Analysis of cash and cash equivalents

Cash at bank and in hand
Other Loans
Net cash		 2021
2020
£’000
£’000
3,717
3,915
(49)
(50)
3,668
3,865

42 UK YOUTH I REPORT AND FINANCIAL STATEMENTS

Notes to the Financial Statements

21 Related party transactions

During the year ended 31 March 2021, payments of £1,246 (2020: £1,980) were made to the son of a trustee to undertake work for UK Youth. During the year costs of £345 (2020: £7,794) were recharged to the subsidiary charity Ambition; at 31 March 2021 £104,325 (2020: £103,979) was owed to UK Youth by Ambition.

At 31 March 2021 £2,531 (2020: £2,531) was owed to UK Youth by the 100% owned subsidiary company Youth Work (UK) Limited. Youth Work UK was dormant throughout the current and prior years.

22 Lease commitments

As at 31 March 2021, UK Youth had outstanding commitments under non-cancellable operating leases as follows:

Amounts falling due:
Within one year
Between 2 and 5 years
After more than 5 years
Total		 Land and buildings
Other
2021
2020
2021
2020
£’000
£’000
£’000
£’000
104
57
16
27
378
387
44
62
340
491
-
9
822
935
60
98

23 Post Balance Sheet Event

The Charity made a COVID business interruption claim for £250,000 during the year, The success of this claim was not probable at the balance sheet date and has not been recognised in the accounts, however in early September 2021 the Charity was informed that the claim had been successful in full. The sum of £250,000 was received in September 2021.

43

UK YOUTH I REPORT AND FINANCIAL STATEMENTS

UK Youth London Office, Kings Building, 16 Smith Square, London, SW1P 3HQ Avon Tyrrell Outdoor Centre, Bransgore, Hampshire BH23 8EE Email: info@ukyouth.org Telephone: 0203 1373 810

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Produced on behalf of UK Youth by www.carlgamble.com With thanks to contributors from across the UK Youth Movement. Company Number: 05402004 UK Youth Registered Charity Number: 1110590