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2023-03-31-accounts

MAKING A DIFFERENCE | UNLOCKING POTENTIAL BRIGHTER FUTURES

ANNUAL REPORT 2022-23

1

Registered Charity 1120420 | Company Reg No. 5698045

BRIGHTER FUTURES MAKING A DIFFERENCE UNLOCKING POTENTIAL

CONTENTS

Legal and administrative information 4
Message from the CEO 5 - 6
Message from the Chair 7
Trustees report 9 - 13
Auditors report 14 - 16
Statement of fnancial activities 17 - 18
Balance sheet 19 - 20
Statement of cashfows 21
Notes to the fnancial statements 22 - 37

THE ISLAND | ANNUAL REPORT 2022-23

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LEGAL AND ADMINISTRATIVE INFORMATION

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

Trustees

Dr P A Tiffin (Appointed 4th April 2022)

Ms H Durrant (Appointed 4th April 2022)

Mrs A T Gurnell (Appointd 14th September 2022)

Mr M S Watt (Appointd 14th September 2022)

Charity number 1120420

Company number 05698045

Registered office

Regus House, Oakdale Road, Tower Court, York, YO30 4XL

Auditors

Henton & Co LLP, 124 Acomb Road, York, YO24 4EY

Bankers

Barclays Bank UK Plc, 1-3 Parliament Street, York, YO1 8SE The Co-operative Bank Plc, PO Box 250, Skelmersdale, WN8 6WT

The Island has continued to grow and respond in new and innovative ways to the disruptions and unique challenges over the past three years. We are all living in difficult times. Our children and young people have had to overcome challenges not previously experienced - the persisting impact of the Covid pandemic, a steep rise in the cost of living, and increasing inequality. The consequences of the pandemic and associated difficulties on young people cannot be ignored, with many experiencing more severe problems with their mental health.

The Island, through its one to one mentoring relationships and other support is helping young people navigate these uncertain times. These activities enable each young person to unlock their potential and their own personal development, to manage their wellbeing, increase their resilience and self-confidence, build trust with a positive adult role model, and create positive connections within their community and across the city.

At The Island, trust is the foundation. The Island is a local charity that is trusted in four key ways:

THE ISLAND | ANNUAL REPORT 2022-23

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We are pleased that we have launched our new Strategic Plan (2023-2028) which sets out our aims and how we plan to achieve them. Our vision is that The Island becomes a more inclusive charity in which everyone feels respected, valued, trusted, and safe; has a sense of belonging; and strives to do their best for the benefit of themselves, the city of York and society.

Plans progress to construct our new major facility. Once opened, The Island Centre will increase the scope and accessibility of all The Island services. We will share the new facilities with other local charities and community groups knowing that working together, and harnessing our collective influences and networks, we can reach and support a greater number of children and young people to realise their potential, thrive and navigate their way to adulthood successfully.

We will continue to expand and strengthen our programmes for vulnerable young people which now include individual and group mentoring, counselling, tutoring, and life-skills among others. Our key values are that we embrace diversity, equality and inclusion.

Diversity, equality and inclusion really does matter. It is important to The Island that all young people are included and empowered – and none left behind; that we listen to the voices of young people; and we collaborate and work in partnership with others to get the best sustainable outcomes for young people in York.

Over the next year, we will not only press for greater impact in support of more young people, but we will also continue to refine our approach and to deepen our community partnerships.

Of course, none of this will be possible without our volunteers, supporters and funders as well as our Board of Trustees and team, who continue to work tirelessly for the children and young people of York. I am most grateful to you all. I believe we all share the responsibility to protect young people and together help them to create more promising futures. Thank you.

Nigel Poulton MBE Chief Executive Officer July 2023

MESSAGE FROM THE CHAIR

It has been an exciting first year in my role as Chair of Trustees for The Island. I echo the Greek philosopher Heraclitus’ statement, that ‘everything changes and nothing remains still’. We have certainly seen evidence of this over the last 12 months.

Whilst all this planning work is underway, staff across The Island continue to deliver a high-quality service that children and young people have both come to expect and need from us.

I am both enthused and continuously impressed by the dedication of staff across The Island, particularly during this continuous climate of change we find ourselves in. We envisage 2023/24 to be a further year of change, one where we will see our application for the new children’s centre in Huntington accepted and progress made on our journey to make York a better place for children and young people. The Board looks forward to both building on and strengthening the relationships we have built over the last 12 months and looks forward with anticipation to what 2023/24 might bring. Thank you.

Island staff have been working diligently to put things in place to plan for the next phase of the lifecycle of The Island, which staff affectionately refer to as the “Huntington Project”. The team have moved out of our premises on Shipton Road and have moved into managed premises on Clifton Moor with additional space at our Huntington site. We are awaiting the outcome of our planning application and once achieved we are confident that we will be able to move at pace to develop a new building and services to meet the needs of children and young people throughout York.

Mat Watt

Chair July 2023

Throughout 2022/23 we have been busy planning how we will make this a reality, meeting with donors and local organisations throughout York.

THE ISLAND | ANNUAL REPORT 2022-23

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TRUSTEES REPORT (INCLUDING DIRECTORS REPORT) FOR THE YEAR ENDED 31 MARCH 2023

BRIGHTER FUTURES

MAKING A DIFFERENCE

UNLOCKING POTENTIAL

The Trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019).

Objectives and activities

The Island exists to enhance the quality of life for children and young people through sustainable quality mentoring relationships as they make the transition through childhood and adolescence. It recruits, trains, and supervises volunteers who befriend vulnerable children and young people referred to the service by schools, statutory and nonstatutory agencies, or parents.

The Island N1 is a registered charity that has been operating since August 2007. It offers support to vulnerable 8 - 18 year-olds in York who are struggling to cope at home, school, or in the wider community, or who are experiencing difficult transitions in their lives. It matches these young people with volunteer mentors with whom they meet on a weekly basis over a minimum of one year. This allows them to develop supportive, ongoing relationships, whilst also providing them with the undivided attention and ‘islands of space and time’ they need to increase their confidence and selfesteem, participate in worthwhile recreational activities, and move forward in their lives.

The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks. A Risk Register is kept and regularly reviewed.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

THE ISLAND | ANNUAL REPORT 2022-23

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Achievements and performance

Financial review

During the financial year 2022/23 The Island achieved total income of £341,008 compared with prior year 2021/22 £658,396. The prior year included a specific donation of £210,000 to enable progress in our Huntington development. Total expenditure for 2022/23 was £511,036, up from £362,606 for 2021/22. This gives a net deficit of £170,028 for the year compared to a surplus of £295,790 for 2021/22.

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Total reserves held are £1,387,936 of which £268,707 are restricted/ designated. Of the £1,119,229 unrestricted funds £1,140,718 relates to our Huntington development. Unrestricted general funds are a deficit of £21,489 this year.

Structure, governance and management

The charity is operated under the rules of its Memorandum and Articles of Association adopted on 14 December 2005 as amended on 13 April 2022.

The charity is a company limited by guarantee, incorporated under the Companies Act 1985 on 4 February 2006 (company number 05698045) and obtained charitable status on 2 August 2007 (registered charity number 1120420).

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr R N Purrington (Resigned 19 April 2022)

Mr W Furman (Resigned 17 January 2023)

Ms L M Barrie (Resigned 16 November 2022)

Ms S McKinley

(Appointed 19 April 2022 and resigned 16 December 2022)

Dr P A Tiffin (Appointed 4 April 2022)

Ms H Durrant (Appointed 4 April 2022)

Mr B Nleya (Appointed 19 May 2022 and resigned 24 July 2023)

Mrs A T Gurnell (Appointed 14 September 2022)

Mr M S Watt

(Appointed 14 September 2022)

Trustees are elected and/or co-opted under the terms of the Articles of Association.

The Trustees meet on a regular basis, to monitor progress and to review policies and procedures. These meetings include our CEO and Manager of Mentoring Services to ensure a cohesive approach to the management of the charity.

The financial controls, procedures and reporting is made on a regular basis, and managed diligently by our Finance and HR officer, in liaison with the Treasurer, at the finance subgroup. Budgets are set at the start of the financial year, and a report and financial summary given by the Treasurer at the Trustee’s meetings.

The Island Trustee Board

makes all key decisions that are routinely brought to the Trustee’s meetings. Outside of these, e-mail consultation is regularly used to progress matters.

This year has seen the post of Clerk to the Board filled, ensuing the effective management of all Board business, and that the Board is executing their legal duties and responsibilities.

THE ISLAND | ANNUAL REPORT 2022-23

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The charity has put in place an annual Skills audit of the Trustees, to ensure we have a broad set of skills and experience in place, and new Trustees are given an initial induction, and further training is given if required.

Auditor

In accordance with the company’s articles, a resolution proposing that Henton & Co LLP be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditors

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees’ report was approved by the Board of Trustees

Mr M S Watt, Chair

Date 18th September 2023

Statement of Trustees’ responsibilities

The Trustees, who are also the directors of The Island N1 for the purpose of company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. 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 charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE ISLAND | ANNUAL REPORT 2022-23

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AUDITORS REPORT

THE ISLAND N1

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE ISLAND N1

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE ISLAND N1

Matters on which we are required to report by exception

Opinion

We have audited the financial statements of The Island N1 (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 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 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.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 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 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

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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, outlines above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

THE ISLAND | ANNUAL REPORT 2022-23

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ACCOUNTS 2022-23

THE ISLAND N1

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE ISLAND N1

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Brett Davis (Senior Statutory Auditor) for and on behalf of Henton & Co LLP

Chartered Accountants

Statutory Auditor

124 Acomb Road York YO24 4EY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Current financial year

Unrestricted Endowment
Restricted
funds
funds
funds
designated
2023
2023
2023
Notes
£
£
£
Income from:
Donations and legacies
3
95,856
-
239,476
Charitable activities
4
3,408
-
-
Other trading activities
5
2,251
-
-
Investments
6
17
-
-
Total income
101,532
-
239,476
Expenditure on:
Raising funds
7
7,603
-
9,078
Charitable activities
8
269,599
640
224,116
Total expenditure
277,202
640
233,194
Net (outgoing)/incoming resources
before transfers
(175,670)
(640)
6,282
Gross transfers between funds
137,827
-
(137,827)
Net (expenditure)/income for the year/
Net movement in funds
(37,843)
(640)
(131,545)
Fund balances at 1 April 2022
1,157,072
77,440
323,452
Fund balances at 31 March 2023
1,119,229
76,800
191,907		 Total
2023
£
335,332
3,408
2,251
17
341,008
16,681
494,355
511,036
(170,028)
-
(170,028)
1,557,964
1,387,936		 Total
2022
£
650,723
4,700
2,955
18
658,396
17,164
345,442
362,606
295,790
-
295,790
1,262,174
1,557,964

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE ISLAND | ANNUAL REPORT 2022-23

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STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

BALANCE SHEET

AS AT 31 MARCH 2023

FOR THE YEAR ENDED 31 MARCH 2023

Prior financial year
Unrestricted Endowment
Restricted
funds
funds
funds
designated
2022
2022
2022
Notes
£
£
£
Income from:
Donations and legacies
3
120,451
-
530,272
Charitable activities
4
4,700
-
-
Other trading activities
5
2,955
-
-
Investments
6
18
-
-
Total income
128,124
-
530,272
Expenditure on:
Raising funds
7
12,782
-
4,382
Charitable activities
8
116,918
640
227,884
Total expenditure
129,700
640
232,266
Net (outgoing)/incoming resources before transfers
(1,576)
(640)
298,006
Net (expenditure)/income for the year/
Net movement in funds
(1,576)
(640)
298,006
Fund balances at 1 April 2021
1,158,648
78,080
25,446
Fund balances at 31 March 2022
1,157,072
77,440
323,452		 Total
2022
£
650,723
4,700
2,955
18
658,396
17,164
345,442
362,606
295,790
295,790
1,262,174
1,557,964
Notes
Fixed assets
Tangible assets
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
19
Endowment funds - designated
20
Unrestricted funds
Designated funds
21
General unrestricted funds		 2023
£
£
1,239,562
11,144
160,237
171,381
(23,007)
148,374
1,387,936
191,907
76,800
1,140,718
(21,489)
1,119,229
1,387,936		 2022
£
£
1,232,321
3,998
353,100
357,098
(31,455)
325,643
1,557,964
323,452
77,440
1,115,923
41,149
1,157,072
1,557,964

THE ISLAND | ANNUAL REPORT 2022-23

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BALANCE SHEET

STATEMENT OF CASH FLOWS

AS AT 31 MARCH 2023

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 18th September 2023

Ms H Durrant, Treasurer

Company registration number 05698045

FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
25
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash used in investing activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
£
(163,890)
(28,990)
17
(28,973)
-
(192,863)
353,100
160,237		 2022
£
(117,215)
18		 £
405,588
(117,197)
-
288,391
64,709
353,100

THE ISLAND | ANNUAL REPORT 2022-23

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

The Island N1 is a private company limited by guarantee incorporated in England and Wales. The registered office is Regus House, Oakdale Road, Tower Court, York, YO30 4XL.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Donations

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Donated professional services

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of the economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.

On receipt, donated professional services and donated facilities 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 or facilities of equivalent economic benefit on the open market, a corresponding amount is then recognised in expenditure in the period of receipt.

Grants receivable

Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Government grants are recognised at the fair value of the asset received or receivable when there is a reasonable assurance that the grant conditions will be met and the grant will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. When a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Volunteers

The charity benefits greatly from the involvement and enthusiastic support of its volunteers, details of which are given in our annual report. In accordance with Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the financial statements.

1.5 Expenditure

Expenditure, which includes attributable VAT which cannot be recovered, is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Charitable expenditure comprises those costs incurred by the charity in the deliverance of its activities and services for its beneficiaries. It includes both costs that can be directly allocated to such activities and those costs of an indirect nature necessary to support them.

Governance costs, included in support costs, include those costs incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements and are allocated to charitable activities.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% straight line Leasehold land and buildings Over the life of the lease Fixtures and fittings 33.3% straight line Motor vehicles 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

THE ISLAND | ANNUAL REPORT 2022-23

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

The leasehold property relates to 1,2 Cloisters Mews, Bridlington and is subject to a 125 year lease that expires on 1 January 2134. It was valued by Zoopla at an estimated market value on acquisition in June 2017. Long leasehold properties are depreciated each year at the valuation divided by the term of the lease on a straight line basis.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Taxation

The Island N1 is a registered charity and as such is a charity within the meaning of schedule 6 of the Finance Act 2010. Accordingly, the Charity is potentially entitled to tax exemption under part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 in respect of income and gains arising.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

1.12 Creditors and provisions

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

After review the Trustee consider that there are no critical estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the financial statements.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

THE ISLAND | ANNUAL REPORT 2022-23

25

FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

3Donations and legaciesDonations and legacies

Donations and legacies
3
Donations and legacies		 Donations and legacies
3
Donations and legacies
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Donations and gifts 67,458 239,476 306,934 70,332 491,772 562,104
Grants recieved 18,775 - 18,775 19,747 38,500 58,247
Membership fees 945 - 945 - - -
Donated goods and services 8,678 - 8,678 30,372 - 30,372
95,856 239,476 335,332 120,451 530,272 650,723
Grants receivable for core activities
The Rank Foundation - - - - 25,000 25,000
Garfield Weston Foundation - - - - 12,500 12,500
Other 18,775 - 18,775 19,747 1,000 20,747
18,775 - 18,775 19,747 38,500 58,247
Included in grants received is £Nil (2022: £11,049) relating to the Job Retention Scheme.
There are no unfulfilled conditions or other contingencies attached to these grants. The charity did not benefit directly from any other forms of government assistance.
Donated goods and services

Donated goods, facilities and services comprises architect services, which are provided free of charge to the Charity. A corresponding amount is included within tangible asset additions.

4 Charitable activities

2023 2022
£ £
Services provided under contract 3,008 1,400
Charitable rental income 400 3,300
3,408 4,700
Other trading activities
**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Fundraising events 2,251 2,955
Investments
**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Interest receivable 17 18

5 Other trading activities

6 Investments

THE ISLAND | ANNUAL REPORT 2022-23

27

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR THE YEAR ENDED 31 MARCH 2023

7 Raising funds ng funds

aising a Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
nd publicity
ising events
7,603
9,078
16,681
12,782
4,382
17,164
7,603
9,078
16,681
12,782
4,382
17,164
Fundraising and publicity
Staging fundraising events

g fundra

8 Charitable activities

Charitable activities
Mentoring Mentoring
Services Services
2023 2022
£ £
Staff costs 292,836 208,707
Depreciation and impairment 640 640
Staff travel 539 1,112
Club expenses 9,197 2,400
Staff training 3,887 4,485
Mentor travel and activity costs 25,456 9,911
Team building, mentor training and DBS costs 6,549 5,432
School based mentoring costs - 265
Bridlington costs 16,348 11,375
Hamper of Hope costs 4,570 423
Tuition 1,358 -
Therapy 593 -
361,973 244,750
Share of support costs (see note 9) 90,284 40,676
Share of governance costs (see note 9) 42,098 60,016
494,355 345,442
Analysis by fund
Unrestricted funds 269,599 116,918
Endowment funds - designated 640 640
Restricted funds 224,116 227,884
494,355 345,442

THE ISLAND | ANNUAL REPORT 2022-23

29

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

9 Support costs
Support
Governance		 2023 Support
Governance		 2022
costs costs costs costs
£ £ £ £ £ £
Depreciation 21,107 - 21,107 20,389 - 20,389
Irrecoverable VAT 16,565 - 16,565 8,819 - 8,819
Postage and stationery 9,335 - 9,335 2,970 - 2,970
Telephone 2,797 - 2,797 1,177 - 1,177
Insurance 3,560 - 3,560 2,964 - 2,964
Advertising 3,953 - 3,953 2,023 - 2,023
Bank charges 279 - 279 228 - 228
Computer costs 7,144 - 7,144 2,106 - 2,106
Office costs 25,544 - 25,544 - - -
Audit fees - 3,850 3,850 - 3,576 3,576
Accountancy - 2,150 2,150 - - -
Legal and professional - 15,598 15,598 - 20,101 20,101
New Lane, Huntington
professional costs - 20,500 20,500 - 36,339 36,339
90,284 42,098 132,382 40,676 60,016 100,692
Analysed between
Charitable activities 90,284 42,098 132,382 40,676 60,016 100,692

10 Auditor's remuneration

Auditor's remuneration
Fees payable to the charity's auditor and associates: 2023 2022
£ £
Audit of the charity's annual accounts 3,850 3,500

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

No Trustees were reimbursed any expenses incurred for services provided to the Charity.

12 Employees

The average monthly number of employees during the year was:

----- Start of picture text -----
2023 2022
Number Number
15 10
----- End of picture text -----

Employment costs 2023 2022
£ £
Wages and salaries 292,836 208,707

The average number of full-time equivalent employees during the year was 9.17 (2022: 7.28).

There were no employees whose annual remuneration was more than £60,000.

13 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

14 Tangible fixed assets

Fr
an
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation and impairment
At 1 April 2022
Depreciation charged in the year
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022		 eehold land
d buildings
£
1,117,917
26,292
1,144,209
1,995
1,496
3,491
1,140,718
1,115,923		 Leasehold
land and
buildings
F
£
80,000
-
80,000
2,560
640
3,200
76,800
77,440		 ixtures and
fittings
Mo
£
14,566
2,698
17,264
6,796
5,217
12,013
5,251
7,771		 tor vehicles
£
57,576
-
57,576
26,389
14,394
40,783
16,793
31,187		 Total
£
1,270,059
28,990
1,299,049
37,740
21,747
59,487
1,239,562
1,232,321

15 Debtors

Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income		 2023
£
150
10,994
11,144		 2022
£
-
3,998
3,998

THE ISLAND | ANNUAL REPORT 2022-23

31

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

16 Creditors: amounts falling due within one year

Notes
Other taxation and social security
Deferred income
17
Trade creditors
Accruals and deferred income
17
Deferred income
Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 April 2022
Released from previous periods
Resources deferred in the year
Deferred income at 31 March 2023		 2023
£
9,982
4,922
664
7,439
23,007
2023
£
4,922
2023
£
4,922
12,500
(12,500)
4,922
4,922		 2022
£
5,268
12,500
6,816
6,871
31,455
2022
£
12,500
2022
£
12,500
-
-
12,500
12,500

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Transfers Balance at
1 April 2021 resources expended 1 April 2022 resources expended 31 March 2023
£ £ £ £ £ £ £ £
Hampers of Hope 3,944 - (3,944) - 4,480 (4,480) - -
Nimbuscare - - - - 1,950 (1,950) - -
York Children's Trust - 2,772 (2,520) 252 - (252) - -
Minibus fund 18,502 - (16,788) 1,714 - (1,714) - -
Two Ridings 2,000 6,000 (2,451) 5,549 - (4,607) - 942
Legal costs - - - - 931 (931) - -
Fundraising and mentoring costs - 34,500 (34,500) - 50,074 (42,412) - 7,662
Equipment contribution 1,000 - - 1,000 7,541 (8,541) - -
Huntington development - 210,000 - 210,000 - - (137,827) 72,173
Core costs - 160,000 (103,750) 56,250 140,000 (102,217) - 94,033
Sainsbury's Helping Everyone Eat Better Grant - 1,000 (417) 583 - (583) - -
North Yorkshire Police - 1,000 (813) 187 - (187) - -
Beverley House costs - 115,000 (67,083) 47,917 - (47,917) - -
Digital marketing coordinator - - - - 25,000 (7,903) - 17,097
Bridlington flat - - - - 2,925 (2,925) - -
Foxwood youth club - - - - 6,575 (6,575) - -
25,446 530,272 (232,266) 323,452 239,476 (233,194) (137,827) 191,907

Deferred income comprises grants which the donor has specified must be used in future accounting periods.

18 Retirement benefit schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

THE ISLAND | ANNUAL REPORT 2022-23

33

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

19 Restricted funds (Continued)

20 Endowment funds - designated

Hampers of Hope - Funding for provision of food and household items hampers to needy families.

York Children's Trust - Grant towards mentoring of young people aged 8 to 18 years.

These are endowment funds funds which are material to the charity's activities made up as follows:

Minibus fund - Grant towards purchase of minibuses for use in support of young children.

Two Ridings - Bursary towards Mentoring Service Manager.

Fundraising and mentoring - Grants for mentoring service and fundraising work, and mentoring of young people aged 8 to 18 years.

Equipment contribution - Grant towards purchase of slow cookers for families.

Huntington development - Donations to be applied for the purchase of freehold land on the north side of Thornfield Farm, New Lane, Huntington, York, YO32 9TA and the subsequent development. The transfer in 2023 reflects the funds used for the subsequent development with a corresponding transfer to fixed assets.

Balance at Resources Transfers Balance at Resources Balance at
1 April 2021 expended 1 April 2022 expended 31 March 2023
£ £ £ £ £ £
Bridlington Flat 78,080 (640) - 77,440 (640) 76,800

Core costs - Grants and donations to support the charity's core costs.

Sainsbury's - Neighbourly grant towards "helping everyone eat better".

North Yorkshire Police - Grant towards resourcing our Group activities for young people.

Beverley House costs - Grants to support additional costs associated with providing services to benefit young people at Beverley House.

Digital marketing coordinator - Grant to support the employment of a Digital Marketing Coordinator.

21 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Bridlington flat - Grant towards the cost of 15 families to stay in the Bridlington Escape flat.

Foxwood youth club - Grant towards the costs of running on open access youth club for young people aged 13 to 18 years at the Foxwood Community Centre.

Nimbuscare - Grant towards the one-to-one mentoring costs for 6 vulnerable young people.

Legal costs - Grant to cover legal costs relating to a visa situation of a potential employee.

Huntington build
development		 Balance at
1 April 2021
£
80,119
80,119		 Resources
expended
£
(10,639)
(10,639)		 Transfers
£
1,046,443
1,046,443		 Balance at
1 April 2022
£
1,115,923
1,115,923		 Transfers
31
£
24,795
24,795		 Balance at
March 2023
£
1,140,718
1,140,718

THE ISLAND | ANNUAL REPORT 2022-23

35

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR THE YEAR ENDED 31 MARCH 2023

NOTES TO THE FINANCIAL STATEMENTS

22
Analysis of net assets between funds
U
Fund balances at 31 March 2023 are represented
by:
Tangible assets
Current assets/(liabilities)		 nrestricted
funds
D
2023
£
22,043
(43,533)
(21,490)		 esignated
funds
2023
£
1,217,519
-
1,217,519		 Restricted
funds
2023
£
-
191,907
191,907		 Total U
2023
£
1,239,562
148,374
1,387,936		 nrestricted
funds
D
2022
£
38,958
2,191
41,149		 esignated
funds
2022
£
1,193,363
-
1,193,363		 Restricted
funds
2022
£
-
323,452
323,452		 Total
2022
£
1,232,321
325,643
1,557,964

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023 2022
£ £
Within one year 9,010 -

24 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
£
Aggregate compensation
59,224
There were no disclosable related party transactions during the year (2021: none).
25
Cash generated from operations
2023
£
(Deficit)/surpus for the year
(170,028)
Adjustments for:
Investment income recognised in statement of financial activities
(17)
Depreciation and impairment of tangible fixed assets
21,747
Movements in working capital:
(Increase)/decrease in debtors
(7,146)
(Decrease)/increase in creditors
(868)
(Decrease)/increase in deferred income
(7,578)
Cash (absorbed by)/generated from operations
(163,890)
26
Analysis of changes in net funds
The charity had no debt during the year.		 2022
£
48,439
2022
£
295,790
(18)
21,029
68,203
8,084
12,500
405,588

THE ISLAND | ANNUAL REPORT 2022-23

37

BRIGHTER FUTURES MAKING A DIFFERENCE

UNLOCKING POTENTIAL

THE ISLAND | ANNUAL REPORT 2022-23

39

the sland

Enhancing children’s quality of life through mentoring

www.theislandyork.org

Call 01904 628449 Email enquiries@theislandyork.org The Island | Regus House | Oakdale Road | Tower Court | York | YO30 4XL Registered Charity 1120420 | Company Reg No. 5698045