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← International Youth Hostel Federation

2022-12-31-accounts

Company number 02250706 Charity number 1117014

International Youth Hostel Federation

(Operating as Hostelling International)

Annual Report and Financial Statements for the Year Ended 31 December 2022

Hostelling International | 7 Bell Yard | London, WC2A 2JR | England Email: info@hihostels.com | www.hihostels.com Registered Charity (in England & Wales) No. 1117014 | Company No. 02250706

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CONTENTS

Report of the Board of Trustees ……………………………………………………………………………………………………. 3
Trustees’ responsibility statement ……………………………………………………………………………………………….. 17
Independent auditor’s report to the members of International Youth Hostel Federation ……………. 18
Financial Statements ……………………………………………………………………………………………………………………. 22
Statement of financial activities for the year ended 31 December 2022 …………………………………… 22
Balance sheet as at 31 December 2022 ……………………………………………………………………………….…... 23
Statement of cash flows for the year ended 31 December 2022 ………………………………………………. 24
Notes to the financial statements ………………………………………………………………………………………………… 25
Registered Office and Professional Advisors ………………………………………………………………………………… 38
HI Member Associations ………………………………………………………………………………………………………………. 39

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REPORT OF THE BOARD OF TRUSTEES

ABOUT HOSTELLING INTERNATIONAL

International Youth Hostel Federation (operating as Hostelling International and referred to throughout this report as “HI”) is a registered charity and non-governmental, not-for-profit organisation representing fifty nine Member Associations and two Associate Organisations from all over the world. It is one of the world’s largest youth membership organisations and it is recognised by UNESCO (United Nations Educational Scientific and Cultural Organisation).

HI is the only global network of Youth Hostel Associations. Its nearly 3.6 million members have a choice of over 3,000 hostels worldwide, all of which work with a set of internationally assured quality standards. HI’s membership savings programme also gives access to thousands of travel-related savings.

The history of Hostelling International

The concept of hostelling was founded in Germany by Richard Schirrmann, a school teacher, in 1909. He came up with the idea of a network of youth hostels when he and his students were caught in a thunderstorm during an excursion and were offered accommodation in a school. The first official youth hostel opened in Burg Altena in 1912, after which the youth hostel movement grew rapidly. By the summer of 1931 there were 12 Youth Hostel Associations in Europe, operating a total of 2,600 hostels. The International Youth Hostel Federation was founded at the first International Conference in Amsterdam, the Netherlands, in 1932 where Richard Schirrmann was elected the first President.

Objects

The purpose of the charity is defined by our charitable object:

“To promote the education of all young people of all nations, but especially young people of limited means, by encouraging in them a greater knowledge, love and care of the countryside and an appreciation of the cultural values of towns and cities in all parts of the world, and as ancillary thereto to provide hostels or other accommodation in which there shall be no distinction of origins, nationality, colour, religion, sex, class, or political opinions and thereby to develop a better understanding of their fellow men, both at home and abroad.”

In other words: we exist to give young people the chance to discover the world, its cultures and fellow people in order to build a more understanding, tolerant, peaceful, environmentally considerate world.

Vision and Strategy

In 2022 the HI Strategy working group proposed a Strategic direction and plan for the network for the period 2022-26, this was endorsed by the members at the 54[th] conference.

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The goals for 2026 are:

The Strategic Priorities to meet these goals are the following:

  1. Survive, Then Thrive! - Increase Impact

  2. Support Hostelling’s Recovery

  3. Win More Travellers to Hostelling

  4. Differentiate Our Hostels

  5. Increase the Visibility of Our Leadership

  6. Strengthen Our Fundamentals - Functional capabilities

  7. Enhance Collaboration

  8. Better Position Our Purposeful Brand

  9. Expand Technology

  10. More Efficient Governance

ABOUT HOSTELLING INTERNATIONAL

International Youth Hostel Federation (operating as Hostelling International and referred to throughout this report as “HI”) is a registered charity and non-governmental, not-for-profit organisation representing fifty nine Member Associations and two Associate Organisations from all over the world. It is one of the world’s largest youth membership organisations and it is recognised by UNESCO (United Nations Educational Scientific and Cultural Organisation).

HI is the only global network of Youth Hostel Associations. Its nearly 3.6 million members have a choice of over 3,000 hostels worldwide, all of which work with a set of internationally assured quality standards. HI’s membership savings programme also gives access to thousands of travel-related savings.

The history of Hostelling International

The concept of hostelling was founded in Germany by Richard Schirrmann, a school teacher, in 1909. He came up with the idea of a network of youth hostels when he and his students were caught in a thunderstorm during an excursion and were offered accommodation in a school. The first official youth hostel opened in Burg Altena in 1912, after which the youth hostel movement grew rapidly. By the summer of 1931 there were 12 Youth Hostel Associations in Europe, operating a total of 2,600 hostels. The International Youth Hostel Federation was founded at the first International Conference in Amsterdam, the Netherlands, in 1932 where Richard Schirrmann was elected the first President.

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REPORT OF THE BOARD OF TRUSTEES (CONTINUED)

Objects

The purpose of the charity is defined by our charitable object:

“To promote the education of all young people of all nations, but especially young people of limited means, by encouraging in them a greater knowledge, love and care of the countryside and an appreciation of the cultural values of towns and cities in all parts of the world, and as ancillary thereto to provide hostels or other accommodation in which there shall be no distinction of origins, nationality, colour, religion, sex, class, or political opinions and thereby to develop a better understanding of their fellow men, both at home and abroad.”

In other words: we exist to give young people the chance to discover the world, its cultures and fellow people in order to build a more understanding, tolerant, peaceful, environmentally considerate world.

Vision and Strategy

In 2022 the HI Strategy working group proposed a Strategic direction and plan for the network for the period 2022-26, this was endorsed by the members at the 54[th] conference.

The goals for 2026 are:

The Strategic Priorities to meet these goals are the following:

  1. Survive, Then Thrive! - Increase Impact

  2. Support Hostelling’s Recovery

  3. Win More Travellers to Hostelling

  4. Differentiate Our Hostels

  5. Increase the Visibility of Our Leadership

  6. Strengthen Our Fundamentals - Functional capabilities

  7. Enhance Collaboration

  8. Better Position Our Purposeful Brand

  9. Expand Technology

  10. More Efficient Governance

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REPORT OF THE BOARD OF TRUSTEES (CONTINUED)

OBJECTIVES AND ACTIVITIES

HI achieves its mission through its Member Associations, and Direct Licensed Hostels. The HI network has fifty nine Member Associations with over 3,000 hostels and 48 Direct Licensed Hostels in 75 countries / areas, ensuring there is a safe, low-cost base from which young people can explore the world.

HI promotes sustainable hostelling and continues to offer to its Member Associations grants that improve the sustainability credentials of the network. In addition, the HI-Q&S (quality and standards) programme seeks to optimise the customer experience and continuous improvement of hostel operations.

Up to June 2022, our website www.hihostels.com offered a single place for travellers to discover and book hostels throughout the HI network. In July 2022 the website changed from being a booking platform to a content and inspiration hub for travellers looking for a sustainable way of travelling internationally.

The Board of Trustees continue to have due regard to the Charity Commission in England and Wales’s guidance on public benefit. Through careful management of HI membership income, hihostels.com income and existing funds, HI provides a public benefit by promoting and facilitating international travel for young people through programmes and safe, affordable and sustainable youth hostels.

ACHIEVEMENTS AND PERFORMANCE IN 2022

The International Office and network started working under the 2022-2026 Strategic plan designed by the CEO, Management Team and Strategy working group.

HI continues operating its activities under two main teams; Network and Brand, and Technology Services.

In December 2022, having taken advice support from our legal advisors, Russell Cooke, and our solicitors in Peru, the hostel in Lima, Peru was sold, generating a net profit of £941,342 for HI.

NETWORK AND BRAND

2022 saw the partial recovery of most Member Associations with travel resuming and visitors coming back. In Europe, North America and Australia for most of 2022 was as good a year, if not better than 2019. In Asia and Africa problems remain and travel restrictions still apply.

Only one member chose to leave the network in 2022, STF Sweden terminated their membership in September.

HI continued to support the global network by facilitating frequent communication, conducting a survey to analyse the impact of the pandemic across our network, and by identifying any new activities or services provided. Many of our Members diversified their services during the pandemic, offering new food and beverages services, opening up cafes to their local communities, and changing their

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accommodation on offer to support social distancing, such as including sleep pods. This diversification not only helped Member Associations to survive the pandemic, but also to create new revenue sources for the future.

Network events

Critical for communication and strong relationships in the network, face to face meetings are key events throughout the year and we were able to resume these in 2022.

The European Regional Conference was organised by EUFED in Austria in March to gather the Presidents and CEOs of our European member associations.

Later in the year, in September, we organised our 54[th] International Conference and General meeting in Doha, Qatar. 37 member associations were represented by 58 delegates and observers in person and 13 delegates attended virtually. It was the first time we organised a hybrid event allowing delegates to attend virtually if they could not travel to the event.

Programmes & Membership

Our global programmes partially resumed with the celebration of the UN International Day of Peace on 21 September with our Say Hi For Peace programme (previously called Sleep For Peace ) with increased levels of engagement from the Member Associations and from the wider hostelling community. The HI-Connect programme was still on hold and work resumed in the last quarter of 2022 to restart the programme in 2023.

The membership programme continued to benefit over 3 million members across the HI network with each member association offering discounts at a national level and international discounts offered by partners of HI. With their membership travellers get access to affordable rates in all HI hostels and travel related discounts. HI continued to sell digital memberships on hihostels.com.

Our member associations also continued to organise programmes for the hostel guests, with hundreds of activities and programmes across the network continuing to offer opportunities to young people of all means to explore the world and meet new people. Examples of programmes include exchange programmes, volunteering, civil service, clean-ups, shared meals, free tours, game nights...

Partnerships

We continued our collaboration with UNESCO and UNWTO and attended the very first Global Youth Tourism Summit in Sorrento, Italy in July 2022 where 150 young children from around the world got together to discuss their views on tourism and sustainability.

We remain partners of the Erasmus Student Network offering free memberships to ESN card holders and ensuring students have access to affordable accommodation all over the world.

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HI remains a full member of the World Youth Student and Educational Travel Conferderation (WYSE). They bring together key players of the youth travel industry and give us access to a global knowledge network, events and targeted research.

Sustainability & Quality

HI Sustainability Fund donations were minimal in 2022 due to the low percentage of bookings and since the booking engine was decommissioned in July they are reduced to stand-alone donations. This resulted in HI being unable to run its HI Sustainability Fund in 2022.

On a positive note, HI is actively involved in helping our industry moving forward with the 2030 Sustainable Goals Agenda and is part of the Global Plastic Initiative and signed the Glasgow Declaration.

We have continued advancing our HI-Q&S programme by auditing hostels online and again in person after a two-year interruption. In 2022 we had a total of 390 contracted hostels; 180 HI-Q certified, 177 HI-Q&S certified and 54 in progress (awaiting audit in 2023). Furthermore, seven Head Offices are certified HI-Q&S: Belgium LAJ, HI Iceland, Luxembourg YHs, Movijovem, Swiss YHs, Stayokay, HI USA; and two HI-Q: DJH and HI Israel.

We’ve continued to monitor the overall guest satisfaction of the HI network with our partner ReviewPro and have been pleased to see overall ratings (82.3% GRI) go up again after two quiet years.

We started looking for a new software partner to conduct our audits online and enable self-assessments for HI Standards. We secured an agreement with FORM and started implementation in early 2023.

Marketing

We sustained our direct marketing efforts with a monthly newsletter to our 16,000 English subscribers and social media presence to 140,000 followers across all platforms (Facebook, Twitter, Instagram).

We attended some B2B industry events by WYSE with representatives of our member associations to represent the HI network and brand. We attended the Staywyse Hostel Conference in Amsterdam in April and WYSTC in Lisbon in September.

TECHNOLOGY SERVICES

The first two quarters of 2022 saw the acceleration of fundamental issues with the website and the implementation of the solution proposed by the Future of Web Services working group and accepted by the Board.

In July 2022 a brand-new website was launched offering digital membership to customers but no more direct hostel bookings. The main objective of the website is now to provide relevant content to young international travellers about hostel, experiences and sustainable travel, as well as sending web traffic to Member association’s own website that they would not get on their own.

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REPORT OF THE BOARD OF TRUSTEES (CONTINUED)

Hostels are featured on the website with individual pages linking to the Member Association’s website and booking engine, where available. This allows them stay in control of their allocation, the customer experience and provide the best information and booking experience to visitors.

Our technology partner for the development of this website and our future digital solutions is 934 Ltd. With them we started developing the concept of digital HI ecosystem allowing future-proof solution for HI and its members.

GOVERNANCE AND ADMINISTRATION

Board of Trustees

Hostelling International is a registered charity and company limited by guarantee with no share capital, managed by a Board of Trustees. The directors of the charitable company are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees. The Board of Trustees is comprised of up to nine members elected from candidates proposed by HI’s Member Associations. Between the 2020 and 2022 conferences two of those places remained vacant. Board members serve 4-year terms on a staggered basis meaning that normally only half of the Board seats come up for re-election at each biennial International Conference. The President must stand for election at every International Conference.

The following trustees served on the date this Annual Report was signed, or during the reporting period:

Name (Nationality) Position Period of office
Abdussalam El Arabi (Libya) Member From September 2022
Alan Bourne (UK) Treasurer Throughout
Eric Oetjen (USA) Vice President To September 2022
Hussain Ali Alhababi (Qatar) Member From September 2022
Miguel Perestrello (Portugal) Vice President From September 2022
Nicole Sandoval (USA) Member From September 2022
Rashid Al-Khalifa (Bahrain) Member To September 2022
Sanni Viirto (Finland) Member Throughout
Sergio Montoya Ruiz De Angulo (Spain) Member Throughout
Stephan Kurmann (Switzerland) President Throughout
Uwe Boehm (Germany) Vice President Throughout

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REPORT OF THE BOARD OF TRUSTEES (CONTINUED)

Throughout 2022 and until the date of signing, the executive was led by Brianda Lopez (as interim CEO until end of June 2022 then as CEO).

Board of Trustees Selection Process

Board members are usually current or former trustees or a CEO of a Member Association and are required to be nominated to stand for election by either the association of which they are an individual member or no less than ten other Member Associations. The Board may, but is not obliged to, fill any vacancies that arise. Elections are held at the biennial conference in accordance with our Memorandum and Articles of Association and Rules of Procedure for Conference. Each Trustee may serve up to 8 years - a maximum of 2 terms of four years each – on the Board and then up to an additional 6 years (3 terms of 2 years each) as President.

Trustee Induction and Training

Newly elected Trustees attended an induction session with the HI President, Treasurer and CEO. Our auditor, MHA, also provided a short reminder session for all Trustees to outline their duties and responsibilities.

Organisational and Board Evaluation

The Charity continues to work towards complying as far as is practical with the Charity Governance Code. At the beginning of 2021 the Board undertook a comprehensive exercise to establish the extent to which HI was following the Code and where improvements were possible. The study confirmed that HI had made considerable progress over recent years with implementing good practice. The key areas which were highlighted as requiring further work were: finalising a new network strategic plan which better emphasised HI’s charitable purpose; modernising HI’s Board election process to improve its ability to attract trustees with the right skills/expertise and diversity to lead the organisation effectively; and consolidating/establishing good communication channels with the Member Associations. The trustees also undertook a self-assessment of how well the Board was functioning. This concluded that the Board had become much better focused and more effective since the 2020 conference. The key issue raised was the poor diversity represented by Board membership, e.g. only one female trustee and a shortage of younger voices. This is already being addressed by a ‘Diversity and Inclusivity’ working group as part of the ‘HI Aims’ project. Other highlighted issues such as a lack of informal discussion and the length of meetings resulted from the move to holding most meetings by video-call. The Board intend to undertake these organisational and board evaluations on a regular basis going forwards so progress can be monitored.

Responsibilities of the Board of Trustees

The role of the Board is governance rather than management. Governance focuses on the wider issues of the organisation and the establishment and monitoring of policy and strategic direction.

The Board works closely in partnership with the Chief Executive Officer (CEO) to ensure that HI’s goals are achieved.

The Board may require the CEO to propose new strategies or revise existing strategies for the Board’s

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consideration. Upon approval from the Board, the CEO develops implementation plans and takes the necessary steps to action them. The Board meets on a regular basis to examine progress reports and supervise performance.

The Board gives direction for the overall operations of HI but is not directly responsible for the day-today operations of the organisation - this is the task of the CEO. The Board, however, has the ultimate responsibility for the sound management and financial security of HI.

The Board approves the annual budget prior to the beginning of every financial year and sets a delegation of authority regarding limits on expenditure, contracts etc.

Trustees’ Indemnity Insurance

The charitable company has purchased insurance for the UK trustees and officers of the charity against liability arising from wrongful acts in relation to the charity. The cost of this insurance is not separately available.

Key Management Personnel Remuneration

The key management personnel of the charity comprise the Board of Trustees and the Chief Executive. The Trustees do not receive remuneration. The Chief Executive’s remuneration is set by the Board and from time to time they take advice from external recruitment agencies regarding whether that remuneration remains appropriate. The Board does not have a formal remuneration policy. The setting of the pay and conditions of the staff other than for the CEO is delegated to the CEO within the constraints of the annual budget and HR policy.

Organisational Structure

At the date of signing, HI has ten employees of which four work part-time. This amounts to 8.1 full-time equivalents. At the head of the team is the CEO.

HI relinquished its office lease in Welwyn Garden City at the end of March 2022 as a cost saving and now no longer has a physical office. All staff work remotely from home but meet virtually at least once a week and are brought together for physical team meetings a few times a year.

Risk Management

HI’s Risk Management Policy was agreed by the Board in March 2021. The policy highlights that risk, and its management, is a critical part of the daily operations of HI’s business. The Policy requires HI to identify and assess risks, maintain a risk register, and manage and review those risks as part of day-today operations. The Board of Trustees are to undertake a full review of the Key Risk Register at least annually.

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The key risks for HI identified in May 2023 were:

Strategic Risk

Governance Risk

Operational Risk

Financial Risk

Reputational Risk

The Board is actively looking at ways to mitigate the identified risks through the different strands of the emerging new network strategic plan and associated operational plans.

Gratitude

The Board would like to take this opportunity to express its thanks to all the volunteers and professionals involved in the international hostelling movement, both those who serve on Member Association Boards of Trustees and those who help with hostel activities. Without their support and assistance, the work to deliver the mission of this global organisation could not take place.

Finance

Total Incoming Resources in 2022 amounted to £1,578,639 (2021 £744,096) but this included £941,342 in relation to the profit on the sale of the hostel in Lima, Peru. Leaving aside this one-off income from the property sale, income decreased by £106,799 year on year. This can largely be attributed to the Board’s decision to not bill a membership levy in 2022 to help the Member Associations to recover from the effects of the pandemic.

In light of the ongoing COVID-19 induced global and domestic travel restrictions, there was initial uncertainty as to whether Member Associations would be able to pay their membership fees, which represented 53% of its 2022 budgeted income (59% in 2021). As it happened, 91% of the 2021 fees and 89% of the 2022 fees were paid by the 2022 year-end. At the end of 2021, outstanding membership fees relating to all years amounted to £294,940 but this fell to £138,821 by the end of 2022. HI is grateful to the Member Associations for making those payments in such uncertain times.

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Total Resources Expended (before gains and losses on investments) amounted to £629,150 (2021 £782,105) representing a decrease of 14% year on year. This is largely attributed to savings resulting from ending our lease of office space in Welwyn Garden City.

During the year, a donation-in-kind of £1,132 (2021 £9,371) was received from Google Grants (representing free online advertising costs).

Net losses on investment assets were £83,711 (2021 £62,941 gain) reflecting the turbulence in the money markets as a result of economic issues post pandemic and due to the war in the Ukraine.

The net movement in funds was an £865,778 increase in reserves compared to an increase of £24,932 in 2021. Hence HI’s reserves increased from £633,631 to £1,499,409 during 2022.

Fundraising

On HI’s website, customers have been given the opportunity to offset their carbon footprint during the booking process (until the booking engine was removed mid-year), or to donate via HI’s Just Giving page. HI has not engaged in any other fundraising activities, or with any professional fund-raisers.

The Charity is not registered with the Fundraising Regulator, did not receive any complaints during the year, and does not interact with vulnerable people through its fundraising activities.

Investment Policy

Normally cash that HI does not need access to in the short-term is put in the hands of our investment managers Brewin Dolphin. During 2022 HI neither passed surplus cash across to Brewin Dolphin or needed to sell investments for cash. The substantial funds received from the sale of the Lima property was still held in the form of cash at the end of 2022. However, the Board at their January 2023 meeting agreed that £800,000 should be passed to Brewin Dolphin to invest. As at the end of 2022, £478,376 (2021 £537,601) was invested with 69% held in equities (77% in 2021), 14% in bonds (10% in 2021), and 17% in a mix of other investment types (14% in 2021). Hostelling International’s investment policy seeks to maintain purchasing power and achieve long-term capital growth of UK inflation (RPI) plus 3% while operating with an average/moderate risk (Brewin Dolphin category 6) tolerance.

In accordance with our mission to build a more understanding, tolerant, peaceful, and environmentally considerate world described on page 3, HI’s investment policy seeks to be culturally and ethically sensitive and as such screens out investment in certain types of companies whose activities conflict with HI’s objects and the environmental principles of HI’s Sustainability Charter. This policy precludes direct investment in companies that generate more than 10% of revenues from tobacco, alcohol, nuclear energy, pornography or armaments.

The yield from dividends in 2022 amounted to £10,578 (£8,958 in 2021).

Reserves Policy

The total funds of the charity at 31 December 2022 were £1,499,409 (2021 £633,631), of which restricted funds amounted to £12,856 (2021 £11,877).

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Hostelling International updated its Reserves Policy in August 2021. The policy specifies both minimum and maximum levels of “free reserves” which the organisation should aim to stay within. Free Reserves are defined as our unrestricted funds less tangible fixed assets. The lower threshold is set as being the annual operating expenditure – a level deemed to be sufficient to withstand the occurrence of any of HI’s high-risk scenarios as documented in its risk register. The worst-case financial modelling surrounding the effects of the pandemic undertaken at the beginning of 2021 gave us a benchmark. The upper threshold is set at twice the annual operating expenditure and aims to signal the point at which HI may be accumulating reserves unnecessarily and hence missing opportunities to deliver public benefit in accordance with its mission.

Based on the 2022 revised budget, the policy set our upper threshold at £1.32m and the lower threshold at £662k. At the year end following the sale of the Lima property, our free reserves stood at £1.5m and hence 13% above the upper threshold set by the reserves policy. The Board continues to review opportunities that might bring HI back below the upper threshold.

Going Concern

The level of HI’s free reserves normally follows an annual cycle with the low point being in January before the annual fees are invoiced to Member Associations. In January 2023 this low point was approximately £1.4m following the receipt of a net £950k from the sale of HI’s property in Lima. Over the two years 2023 and 2024 the aim is to set and achieve a balanced budget – hence maintaining minimum free reserves of £1.4m.

The Board has considered what could happen to its reserves if ‘worst-case’ scenarios were to materialise. HI’s risk register states our key financial risk is a “major disruption to international travel (e.g. pandemic) or external environment outside HI’s control”. Our recent experience of the Covid19 pandemic helpfully gives us a benchmark for what could happen as well as pointing to what we might do differently in similar circumstances. However, the Board is mindful that such an event happening so soon after Covid19 could play out differently particularly as the Member Associations on whom we depend on are, to varying degrees, still in recovery mode.

In 2021 we received around 75% of the fees due for that year despite most Member Associations having limited trade during the year. If this was to be repeated, we could cover at least 40% of our core costs from received fees, leaving a shortfall of £350k to fund from reserves. With free reserves of at least £1.4m to cover for unpaid fees, this would be sufficient to cover budgeted costs for three years even if the value of investments fell by 25% (as happened in 2020). In the extreme scenario of no income from members, we have sufficient reserves to cover two years of expenditure before allowing for any shortterm savings we might be able to make.

The Trustees agreed that they are satisfied they have a reasonable expectation that the organisation has adequate resources to continue in operational existence for the foreseeable future and that the use of the going concern basis of accounting is appropriate in preparing the annual financial statements. The trustees do not consider liquidity to be a material financial risk as the charitable company has sufficient

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funds, represented by cash or investments managed by Brewin Dolphin, which can be made available to HI with one week’s written notice should received income from members be substantially lower than expected. Accordingly, the Charity is not aware of any material uncertainties that exist over its ability to continue as a going concern.

Plans for the Future

The Board believes that in the post COVID-19 era our mission and values will be more relevant than ever. For example, through working closely with local communities, young people and youth organisations, and implementing the Sustainable Development Goals. This emphasises the need to work towards a new strategy and adapt it to the new circumstances in order to protect HI and its network and ensure a bright future for hostelling.

The Strategy Plan Working Group presented several updates to the HI strategy at Conference 2022, to agree common actions and strategies. Three strategic areas underpin the concept of the proposed strategic plan. The strategic projects and actions undertaken by the HI office and the Member Associations collectively in the next five years will fall under one of these areas:

• Recovery & Renewal

This strategic area presents a set of priorities designed to help Member Associations and the HI office collaborate to recover faster from the COVID-19 pandemic and position the federation to strengthen its role in the travel sector and the delivery our mission in ways valued by young people, particularly 18 to 30-year-olds seeking to travel.

This strategic area presents a set of priorities designed to harness the true potential of the HI brand and showcase a strong brand with a recognized social mission that appeals to young people, whilst remaining ‘open to all’.

• Organisational Services that Increase HI’s Social Impact

This strategic area establishes the priorities for services offered within the HI federation that support the ability to deliver its mission and achieve a measurable social impact. It includes services that enable HI to operate as a charitable organization, and optional services that involve additional fees or commissions to cover their costs optional.

This strategy and this new HI, aim to do things in a different way together with our members. The key drivers that will be necessary to ensure successful delivery of the strategy and a stronger organisation are, amongst others:

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During 2022, the Strategy WG met monthly to advance on the key strategic areas and made good progress, especially, regarding Digitalisation and Brand.

The strategy is complemented by a number of Board Projects that are being progressed by Working Groups led by Board members, as follows:

The strategy will help HI and the network to evolve and strengthen together as a federation, in an innovative and collaborative way. Within the strategy there are projects that will be key to the future of HI such as a new Web Service proposal where digitalisation will play a key role within our federation to achieve our goals and fulfil the mission. Other key projects are modernising our governance model, enhance our programmes and work towards SDGs.

We continue the journey that will help HI navigate the unpredictable, whilst laying the foundations for a stronger, more relevant, inspirational organisation.

The Report of the Board of Trustees was approved and signed on behalf of the Board by

Stephan Kurmann

President 18 07 2023

Alan Bourne

Treasurer 18 07 2023

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TRUSTEES’ RESPONSIBILITIES STATEMENT

The trustees (who are also directors of International Youth Hostel Federation for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland.

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 these financial statements, the trustees are required to:

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

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTERNATIONAL YOUTH HOSTEL FEDERATION

Opinion

We have audited the financial statements of the International Youth Hostel Federation (the ‘charitable company’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

We are independent of the charitable company 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. Our evaluation of the Trustees’ assessment of the entity’s ability to continue to adopt the going concern basis of accounting included critical reviews of budgets and forecasts provided.

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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

18

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTERNATIONAL YOUTH HOSTEL FEDERATION (CONTINUED)

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ 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:

19

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTERNATIONAL YOUTH HOSTEL FEDERATION (CONTINUED)

Responsibilities of Trustees

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

In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company 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 guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

20

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTERNATIONAL YOUTH HOSTEL FEDERATION (CONTINUED)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-andassurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-foraudit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of this report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sudhir Singh FCA (Senior Statutory Auditor)

For and behalf of MHA, Statutory Auditor

London, United Kingdom

Date: 29 August 2023

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)

21

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 (INCLUDING THE INCOME & EXPENDITURE ACCOUNT)

Note
INCOME FROM:
Donations
Grants received
Charitable activities
3
Other trading activities
Investment income
2
Other income
Profit on Sale of Property
10
Total Income
EXPENDITURE ON:
Raising funds
Investment management costs
Charitable activities
Network & Brand
4
Web Services
4
Total Resources Expended
Net income/(expenditure) before investment gains /
(losses)
Net (losses)/gains on investment assets
9
NET MOVEMENT IN FUNDS
Total funds brought forward
15, 16
Total funds carried forward
15, 16		 Unrestricted
Funds
2022
£
4,800
-
615,993
4,382
10,582
98
941,342
1,577,197
2,023
2,211
439,533
184,920
628,687
948,510
(83,711)
864,799
621,754
1,486,553		 Restricted
Funds
2022
£
1,442
-
-
-
-
-
-
1,442
-
-
463
-
463
979
-
979
11,877
12,856		 Total
Funds
2022
£
6,242
-
615,993
4,382
10,582
98
941,342
1,578,639
2,023
2,211
439,996
184,920
629,150
949,489
(83,711)
865,778
633,631
1,499,409		 (Note 21)
Total
Funds
2021
£
14,226
24,747
695,429
720
8,974
-
-
744,096
332
3,401
469,519
308,853
782,105
(38,009)
62,941
24,932
608,699
633,631

All operations are classed as continuing.

The notes on pages 23 to 37 form part of these financial statements.

22

BALANCE SHEET AS AT 31 DECEMBER 2022

FIXED ASSETS
Tangible fixed assets
Investments
Total Fixed Assets
CURRENT ASSETS
Stock
Debtors
Cash held for investment
Cash at bank and in hand
Total Current Assets
CREDITORS:Amounts falling due within one year
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
PROVISIONS FOR LIABILITIES AND CHARGES
TOTAL NET ASSETS
THE FUNDS OF THE CHARITY
Unrestricted funds
General fund
Restricted funds		 Note
10
9
11
12
12
13
14
15
15		 2022
£
40,822
478,377
519,199
3,169
85,792
11,095
1,143,595
1,243,651
263,441
980,210
1,499,409
-
1,499,409
1,486,553
12,856
1,499,409		 2021
£
20,181
537,602
557,783
5,192
218,747
28,678
100,224
352,841
195,993
156,848
714,631
81,000
633,631
621,754
11,877
633,631

The accompanying accounting policies and notes form an integral part of these financial statements.

Approved and authorised for issue on behalf of the Board of Hostelling International (Company number: 02250706) by

Stephan Kurmann , President Alan Bourne , Treasurer

Approved by the Board of Trustees on 18 07 2023

23

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

2022
£
Net cash flows from operating activities
128,717

Cash flows from investing activities:

Investment income received
10,582
Proceeds from sales of fixed assets
957,141
Purchase of property, plant and equipment
(46,166)
Proceeds from sale of investments
119,011
Purchase of investments
(143,497)
Net cash flows from investing activities
897,071

Net increase / (decrease) in cash and cash equivalents
1,025,788

Cash and cash equivalents at beginning of year
128,902

Cash and cash equivalents at the end of the year
1,154,690

Being:

Cash held for investment
11,095
Cash at bank and in hand
1,143,595
1,154,690
Reconciliation of net expenditure to net cash flow from operating activities
2022
£
Net expenditure as per the statement of financial activities
865,778

Adjustments for:

Depreciation charges
9,824
(Gain) on disposal of fixed assets
(941,440)
Losses / (gains) on investments
83,711
Dividends, interest and rents from investments
(10,582)
Decrease in stocks
2,023
Decrease / (increase) in debtors
132,955
Increase / (decrease) in creditors
67,448
(Decrease) / increase in provisions
(81,000)

Net cash flows from operating activities
128,717		 2021
£
(210,255)
8,974
-
-
90,457
(137,494)
(38,063)
(248,318)
377,220
128,902
28,678
100,224
128,902
2021
£
24,932
6,135
-
(62,941)
(8,974)
333
(85,287)
(84,453)
-
(210,255)

The Charity did not have any net debt at either the current or prior year end and as such is not disclosing an analysis of movements in net debt table.

24

NOTES TO THE FINANCIAL STATEMENTS

1. PRINCIPAL ACCOUNTING POLICIES

Hostelling International, a public benefit entity, is registered in England & Wales as a private company limited by guarantee, not having share capital. The charity is a registered charity. The registered office is given on page 38.

The principal accounting policies are set out below and remains consistent under the new framework from the previous year.

Hostelling International has a wholly owned subsidiary, Hostelling International Trading Limited, which has remained dormant since its incorporation and as such the accounts have not been prepared on consolidated basis.

The financial statements have been presented in Sterling and all figures have been rounded to the nearest pound.

25

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1. PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

l) Resources are allocated between:

26

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1. PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

m) Income

Income from donations includes:

Income from grants includes:

Income from charitable activities includes:

Income from other trading activities includes sales of welcome stamps and other merchandise to Member Associations, which is accounted for on a receivable basis.

Income from investments is recognised when receivable.

Assets held under finance leases are recognised initially at the fair value of the leased asset (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation on a straight-line basis as there is an immaterial difference to using the effective interest method (which achieves a constant rate of interest on the remaining balance of the liability). Finance charges are deducted in measuring income and expenditure. Assets held under finance leases are included in tangible fixed assets and depreciated and assessed for impairment losses in the same way as owned assets.

Payments made under operating leases are recognised in the SOFA on straight line basis over the term of the lease.

27

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1. PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

On receipt, donated professional services are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

28

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

2. INVESTMENT INCOME

INVESTMENT INCOME
Dividends on listed equities
Interest on listed securities
Interest on other interest-bearing accounts
INCOMING RESOURCES FROM CHARITABLE ACTIVITIES
Membership Fees
Booking Revenue
Other fees from members
Other income
Attributable to geographical markets outside the UK		 2022
£
7,594
2,985
3
10,582
2022
£
358,563
54,900
199,232
3,298
615,993
554,861		 2021
£
6,971
1,988
15
8,974
2021
£
463,703
166,340
60,897
4,489
695,429
625,177

3. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

4. RESOURCES EXPENDED – CHARITABLE ACTIVITIES & SUPPORT COSTS

Network & Brand
Grants awarded
Staff costs
Facilities & equipment
Professional services
Travel & subsistence
Depreciation
Other
Total Network & Brand
Web Services
Staff costs
Facilities and equipment
Professional services
Travel and subsistence
Depreciation
Other
Total Web Services
Total expenditure on charitable activities		 Direct
Costs
£
463
149,770
53
6,182
64,654
-
19,114
240,236
70,908
-
-
73
-
72,323
143,304
383,540		 2022
Support
Costs
£
-
129,412
(3,847)
30,449
8,250
8,130
27,366
199,760
26,961
(802)
6,343
1,719
1,694
5,701
41,616
241,376		 Total
£
463
279,182
(3,794)
36,631
72,904
8,130
46,480
439,996
97,869
(802)
6,343
1,792
1,694
78,024
184,920
624,916		 Direct
Costs
£
2,201
154,843
-
30,058
492
-
35,205
222,799
82,831
-
-
605
-
143,176
226,612
449,411		 2021
Support
Costs
£
-
136,470
87,828
43,010
1,655
4,601
(26,844)
246,720
45,490
29,276
14,337
552
1,534
(8,948)
82,241
328,961		 Total
£
2,201
291,313
87,828
73,068
2,147
4,601
8,361
469,519
128,321
29,276
14,337
1,157
1,534
134,228
308,853
778,372

2021: The negative “Other” costs arise due to the release of a historic VAT creditor balance of £66,261 in the year.

2022: The negative “Facilities and equipment” costs arise due to the refund received of Business Rates for the year to 31 March 2022.

29

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

4. RESOURCES EXPENDED – CHARITABLE ACTIVITIES & SUPPORT COSTS (CONTINUED)

Analysis of Support Costs

Analysis of Support Costs
Governance
Management
Finance, IT, HR
Facilities costs		 Network
& Brand
£
16,832
70,084
117,279
(4,435)
199,760		 2022
Web
Services
£
3,507
14,601
24,432
(924)
41,616		 Total
£
20,339
84,685
141,711
(5,359)
241,376		 Network
& Brand
£
349
54,423
110,495
81,453
246,720		 2021
Web
Services
£
116
18,141
36,832
27,152
82,241		 Total
£
465
72,564
147,326
108,606
328,961

Support costs are allocated pro rata on the basis of full-time equivalent headcount.

5. STAFF COSTS

Gross Salaries
Social security costs
Termination costs
Pension costs
Health costs
Other costs associated with employees		 2022
£
318,700
28,282
-
22,301
369,283
4,655
3,113
377,051		 2021
£
321,334
35,160
35,000
21,271
412,765
3,912
2,958
419,635

In 2021, the Termination costs include non-contractual costs of £35,000, these were paid during 2021 and are not included in the 2021 year-end creditors value. In 2022, no Termination costs were incurred.

No. in 2022 No. in 2021 Employees whose emoluments were between: £60,000 - £70,000 1 1

Contributions paid by Hostelling International into employees’ individual pension schemes for the employees whose emoluments were above £60,000 amounted to £4,326 (2021: £4,200).

The key management personnel of the charity comprise the Trustees and the Chief Executive. The Trustees do not receive remuneration. The Chief Executive’s remuneration is set by the Trustees and from time to time they take advice from external recruitment agencies. In 2022 the total remuneration for the Chief Executive during the year was £74,095 (2021: £66,655).

30

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5. STAFF COSTS (CONTINUED)

The number of employees during the year, analysed by function, was:

Network & Brand
Web Services
Support costs including management		 No. in 2022
No. in 2021
Full Time
Full Time
Average No.
Equivalent
Average No.
Equivalent
6
5
6
5
1
1
2
2
3
3
1
1
10
9
9
8

6. TOTAL EXPENDITURE included:

TOTAL EXPENDITURE included:
2022 2021
£ £
Depreciation 9,824 6,135
Fees payable to the company’s auditor:
For the audit of the company’s annual accounts 17,500 14,500
Under accrual for 2021 audit services 750 -
Rentals under operating leases 19,159 76,635
Foreign exchange losses 2,562 1,901
Cost of stock recognised as an expense 2,023 332

7. TRUSTEES’ EXPENSES

The trustees who served during the year are shown on page 9. No trustee received remuneration during 2022 (2021 – Nil). Travel and other expenses reimbursed to the trustees during the year amounted to £2,089 (2021 £465). In 2022, 4 trustees received reimbursed expenses (2021: 2).

8. LEASING COMMITMENTS

The charity’s future minimum operating lease payments are as follows:

Within one year
Between one and five years
Between five and twenty five years		 2022
Land and
buildings
Other
£
£
-
-
-
-
-
-
-
-		 2021
Land and
buildings
Other
£
£
76,635
712
456,930
178
46,513
-
580,078
890

HI relinquished its leased office at the end of March 2022 meaning its operating lease commitments ceased to exist on 31 March 2022.

31

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

9. INVESTMENTS

INVESTMENTS
Securities
Fair value at 1 January
Acquisitions at cost
Disposals at carrying value
Net (losses)/gains in the year
Fair value at 31 December
Investment in Subsidiary
Share in wholly owned subsidiary (at cost) (note 17)
Total investments
nalysis of investments by type
Bonds
Equities
Other Investments
Investment in subsidiary		 2022
£
537,601
143,497
(119,011)
(83,711)
478,376
1
478,377
2022
£
65,581
332,218
80,577
1
478,377		 2021
£
427,623
137,495
(90,458)
62,941
537,601
1
537,602
2021
£
51,798
413,981
71,822
1
537,602

Analysis of investments by type

The value of securities shown in the Balance Sheet is the market value at 31 December 2022. The historical costs are shown below:

2022 2021
£ £
Historical cost at 31 December 484,385 454,735

10. TANGIBLE FIXED ASSETS

Cost or valuation
At 1 January 2022
Additions
Disposals
At 31 December 2022		 Website
Development
Costs
£
2,169,289
45,058
(2,169,289)		 Freehold
Land and
Buildings
£
130,215
-
(130,215)		 Leasehold
Improvements
£
2,801
-
(2,801)		 Office
Equipment
Total
£
£
101,732
2,404,037
1,108
46,166
(92,677)
(2,394,982)
45,058 - - 10,163
55,221

32

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

10. TANGIBLE FIXED ASSETS (CONTINUED)

Depreciation
At 1 January 2022
Provided for in year
Disposals
At 31 December 2022
Net Book Value
At 31 December 2022
At 31 December 2021		 Website
Development
Costs
£
2,169,289
5,546
(2,169,289)		 Freehold
Land and
Buildings
£
113,932
2,984
(116,916)		 Leasehold
Improvements
£
2,801
-
(2,801)		 Office
Equipment
Total
£
£
97,834
2,383,856
1,294
9,824
(90,275)
(2,379,281)
5,546 - - 8,853
14,399
39,512 - - 1,310
40,822
- 16,283 - 3,898
20,181

During the year the Freehold land and buildings, which comprise exclusively of the Lima hostel, were sold. The historical cost was US $200,582 (£104,475). The difference between the historical cost and market value used for the accounts is US $49,418 (£25,740).

To the date of sale, Accumulated Depreciation would have been £94,900 if based on the historical cost (2021: £92,276). The revaluation took place in 1987 and the revalued amount was treated as deemed cost, depreciated over a period of 40 years going forward.

Also during 2022, the booking engine was decommissioned and so the Website Development Costs which had been capitalised and were fully depreciated have been disposed of.

11. DEBTORS

Member Associations
Other debtors
Prepayments and accrued income		 2022
£
54,008
12,249
19,535
85,792		 2021
£
102,016
50,879
65,852
218,747

12. CASH AT BANK AND IN HAND

. CASH AT BANK AND IN HAND
Cash held for investment
Current accounts
Petty cash		 2022
£
11,095
2022
£
1,143,020
575
1,143,595		 2021
£
28,678
2021
£
97,231
2,993
100,224

33

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Member Associations
Trade creditors
Amounts owed to subsidiary undertakings
Other taxes and social security
Other creditors and accruals
Grant award creditor		 2022
£
31,882
55,326
1
14,496
148,462
13,274
263,441		 2021
£
38,778
55,557
1
17,503
69,817
14,337
195,993

Included in Other creditors and accruals is a balance of £2,664 (2021: £2,201) relating to CO2 offset donations received, under an agreement with Myclimate. Donations of £nil were paid to Myclimate during the year (2021 £2,780).

The grant award creditor relates to grants awarded but not yet paid from the HI Sustainability restricted fund. Grants are paid on the completion of the project. Further details are shown below.

Grants awarded in 2015:
HI Iceland
Grants awarded in 2019:
YHA Israel
Grants awarded in 2020:
Hostelling International – Canada
Hihostels Brasil		 2022
£
7,000
3,085
2,126
1,063
13,274		 2021
£
7,000
3,085
2,126
2,126
14,337

14. PROVISIONS

End of lease dilapidations provision 2022
2021
£
£
-
81,000

The provision held for end of lease dilapidations costs at the office premises at Gate House, Fretherne Road, Welwyn Garden City has now been released (no costs were payable). The building was vacated in March 2022.

34

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

15. FUNDS

5. FUNDS
2022
Balance at 31 December 2021
Incoming resources
Expenditure
Net losses on investment assets
Balance at 31 December 2022
2021
Balance at 31 December 2020
Incoming resources
Expenditure
Net gains on investment assets
Balance at 31 December 2021		 General Fund
£
621,754
1,620,191
(671,681)
(83,711)
1,486,553
General Fund
£
602,045
739,452
(782,684)
62,941
621,754		 Restricted
Funds
£
11,877
1,442
(463)
-
12,856
Restricted
Funds
£
6,654
4,644
579
-
11,877		 Total Funds
£
633,631
1,621,633
(672,144)
(83,711)
1,499,409
Total Funds
£
608,699
744,096
(782,105)
62,941
633,631

In 2012, Hostelling International launched the Sustainability Fund on hihostels.com to enable HI customers to make a donation to offset the CO2 of their overnight stay. Part of the donated amount is passed to Myclimate for carbon offsetting projects. The other part of the donation is held within a restricted fund by HI to be expended as grants to Member Associations to support their sustainable projects. Grants totalling £1,063 were paid during the year and related to grants awarded in 2020 (2021: Grants totalling £8,506 were paid related to grants awards in 2020). See note 13.

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2022
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
2021
Tangible fixed assets
Investments
Current assets
Current liabilities
Provisions
Total net assets		 Unrestricted
General
£
40,822
478,377
1,243,651
(276,297)
1,486,553
Unrestricted
General
£
20,181
537,602
352,841
(207,870)
(81,000)
621,754		 Restricted
£
-
-
-
12,856
12,856
Restricted
£
-
-
-
11,877
-
11,877		 Total funds
£
40,822
478,377
1,243,651
(263,441)
1,499,409
Total funds
£
20,181
537,602
352,841
(195,993)
(81,000)
633,631

35

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

17. RELATED CHARITIES

International Youth Hostel Federation

The directors consider that the International Youth Hostel Federation, an unincorporated charity registered with the Charity Commission for England and Wales (number 306038), is a related charity by virtue of the fact that both charities have the same trustees. IYHF is dormant with no transactions during the year (2021 – Nil).

Hostelling International Trading Limited

Hostelling International Trading Limited (company number 09019564) was registered and incorporated in the UK on 30[th] April 2014 and is a wholly owned subsidiary of Hostelling International. Hostelling International Trading Limited has been dormant since incorporation. The registered office is 7 Bell Yard, London, WC2A 2JR.

18. LEGAL STATUS

The charity is limited by guarantee and has no share capital. Each member’s liability is limited to £1.

19. RELATED PARTY TRANSACTIONS

Other than the transactions detailed in notes 5, 7 and 17 above, there were no related party transactions in either year. Transactions with Member Associations that have representatives on the HI Board do not represent related party transactions.

36

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

20. STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021 (INCLUDING THE INCOME & EXPENDITURE ACCOUNT)

Note
INCOME FROM:
Donations
Grants received
Charitable activities
3
Other trading activities
Investment income
2
Total Income
EXPENDITURE ON:
Raising funds
Investment management costs
Charitable activities
Network and Brand
Web Services
Total Resources Expended
Net expenditure before investment gains
Net losses on investment assets
9
NET MOVEMENT IN FUNDS
Total funds brought forward at 1 January 2020
15
Total funds carried forward at 31 December 2020
15		 Unrestricted
Funds
2021
£
9,582
24,747
695,429
720
8,974
739,452
332
3,401
470,098
308,853
782,684
(43,232)
62,941
19,709
602,045
621,754		 Restricted
Funds
2021
£
4,644
-
-
-
-
4,644
-
-
(579)
-
(579)
5,223
-
5,223
6,654
11,877		 Total
Funds
2021
£
14,226
24,747
695,429
720
8,974
744,096
332
3,401
469,519
308,853
782,105
(38,009)
62,941
24,932
608,699
633,631

37

REGISTERED OFFICE AND PROFESSIONAL ADVISORS

Registered Office

7 Bell Yard London WC2A 2JR England

Bankers:

HSBC Howardsgate Welwyn Garden City Herts AL8 6BH

Auditor:

MHA Sixth Floor, 2 London Wall Place London EC2Y 5AU

Investment Bankers:

Brewin Dolphin 12 Smithfield Street London EC1A 9BD

Solicitors:

Russell-Cooke LLP 2 Putney Hill London SW15 6AB

Trademarks:

Murgitroyd Arena Point Merrion Way Leeds LS2 BPA

VAT:

Constable VAT Consultancy 12 Dedham Vale Business Centre Manningtree Road Essex CO7 6BL

38

MEMBER ASSOCIATIONS

COUNTRY ASSOCIATION
ALGERIA Fédération Algérienne des Auberges de Jeunesse
AUSTRALIA YHA Australia
AUSTRIA Österreichischer Jugendherbergsverband Hauptverband(ÖJHV)
AUSTRIA Österreichisches Jugendherbergswerk(ÖJHW)
BAHRAIN Bahrain Youth Hostels Society
BELGIUM Les Auberges de Jeunesse(LAJ)
BELGIUM Vlaamse Jeugdherbergen vzw(VJH)
BOLIVIA HostellingInternational Bolivia
BOSNIA & HERZEGOVINA Youth Hostel Association of Bosnia and Herzegovina
BRAZIL Federaçao Brasileira dos Albergues da Juventude
CANADA HostellingInternational – Canada
CHILE Asociación Chilena de Albergues Turisticos Juveniles
CHINA YHA China
CHINESE TAIPEI Chinese Taipei Youth Hostel Association
CROATIA Hrvatski Ferijalni i Hostelski Savez(Croatian YHA)
CZECH REPUBLIC Czech Youth Hostel Association(CZYHA)
DENMARK DANHOSTEL
EGYPT Egyptian Youth Hostels Association
ENGLAND & WALES YHA England & Wales
FINLAND Suomen Hostellijärjestö – HI Finland
FRANCE Fédération Unie des Auberges de Jeunesse(FUAJ)
GERMANY DJH Hauptverband
HONG KONG HongKongYouth Hostels Association
ICELAND HI Iceland
INDIA Youth Hostels Association of India
IRELAND(Northern) HostellingInternational-Northern Ireland
IRELAND(Repof) An Óige(Irish Youth Hostel Association)
ISRAEL Israel Youth Hostels Association
ITALY Associazione Italiana Alberghiper la Gioventù(AIG)
JAPAN Japan Youth Hostels Inc
JORDAN Jordan Youth Hostels Commission
KOREA(South) HostellingInternational Korea
KUWAIT Kuwait Youth Hostel Committee
LEBANON Lebanese Youth Hostels Federation
LIBYA Libyan Youth Hostel Association
LUXEMBOURG Centrale des Auberges de Jeunesse Luxembourgeoises
MALAYSIA HI Malaysia
MALTA NSTS HostellingInternational
MOROCCO Fédération Royale Marocaine des Auberges de Jeunes
NETHERLANDS Stayokay
NEW ZEALAND YHA New Zealand
NORWAY Norske Vandrerhjem – HI Norway
PAKISTAN Pakistan Youth Hostels Association
PHILIPPINES Youth and Student Hostel Foundation of the Philippines
POLAND Polskie Towarzystwo Schronisk Mlodziezowych(Polish YHA)

39

MEMBER ASSOCIATIONS (CONTINUED)

COUNTRY ASSOCIATION
PORTUGAL MOVIJOVEM
QATAR Qatar Youth Hostels Association
ROMANIA Romanian Hostelling- Association for Hikingand Youth Hostels
SAUDI ARABIA Saudi Arabian Youth Hostels Association
SCOTLAND SYHA HostellingScotland
SERBIA Ferijalni i Hostelski savez Srbije(Youth Hostels Association of Serbia)
SLOVENIA PZS – HostellingInternational Slovenia
SPAIN Red Española de Albergues Juveniles(REAJ)
SUDAN Sudanese Youth Hostels Association
SWEDEN Svenska Turistföreningen(Until September 2022)
SWITZERLAND Schweizer Jugendherbergen
TUNISIA Association Tunisienne des Auberges de Tourisme de Jeunes
UNITED ARAB EMIRATES United Arab Emirates Youth Hostel Association
URUGUAY Asociación de Alberguistas del Uruguay
USA HostellingInternational USA

HI Associate Organisations

COUNTRY ASSOCIATION
GREECE Greek Youth Hostels Association
SYRIA The Youth Tourism Organization(Syrian Youth Hostels Association)

40