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2020-12-31-accounts

Company number: 06550164 Charity number: 1123946

Report and Financial Statements For the year ending 31 December 2020

Contents

Chair’s Introduction……………………………………………………………………………………….1 Reference and Administrative information………………………………………….……..3 Report of the Trustees………………………………………………………………..……….……….4 Objectives, Activities and Performance ………………………………………………..……7 Structure, Governance and Management ………………………………………….…..…13 Trustees Responsibility Statement………………………………………………………………16 Independent Auditors Report……………………………….………………………………….…18 Statement of Financial Activities……………………………….……………………………...23 Balance Sheet…………………………………………………………………….………………………..24 Cash Flow…………………………………………………………………………….……………….………25 Notes to the Financial Statements……………………………………………………………..26

Chair’s Introduction

2020 was a year where our agility, the can-do spirit and goodwill of our network, and the trust and collaboration that we have built over the years with our members served us well. We were able to pivot and react quickly so that young entrepreneurs had a fighting chance of survival and success during a crisis in scale and duration that no one could have imagined. We are grateful for partners, existing and new ones, for their trust, belief and flexibility to navigate these unprecedented times.

Our network, 52 members’ strong, supported nearly 170,000 young people to develop the entrepreneurship skills they need to thrive. Our members, despite the challenges of a global pandemic, continued to deliver high quality, holistic support including training, mentoring, access to finance and other business development services and pivoted quickly to deliver virtually.

We launched the Rapid Recovery Programme with Google.org anchored by a $5 million grant to YBI with the aim to support 200,000 underserved micro, small and medium businesses in 32 countries to respond to the COVID-19 crisis across Europe, the Middle East, Africa and Asia Pacific.

We continued to deepen our digital acceleration efforts and innovation across our network through our longstanding partnership with Accenture. Our partnership with IKEA Foundation drove digital solutions and COVID response in India and Bangladesh. We continued our work in Africa to support high potential entrepreneurs and a pan-African community of practice through the support of Argidius Foundation. We entered into a new partnership with Standard Chartered Foundation which will provide crucial support to over 33,000 underserved young entrepreneurs in six countries across Africa, Asia and Europe.

We ran successful campaigns for International Women’s Day and Global Entrepreneurship Week profiling the work of our members and the positive impact of youth entrepreneurship. We published and launched a critical piece of research--Beating the odds: Supporting youth on the move to become successful entrepreneurs—which focusses on how to best support young refugees and migrants. We celebrated the determination, ingenuity and passion of young women Young Female Entrepreneur of the Year Award in collaboration with our partner Citi Foundation.

Throughout 2020 we convened our members online, including through our Global Youth Entrepreneurship Festival. Despite the challenges, we recognised that we had so much good practice and good news to share that we wanted to celebrate the resilience and spirit of our YBI community and the entrepreneurs we serve.

Young people will feel the economic shock of the COVID-19 pandemic more than most as opportunities for youth employment shrink. We remain steadfast in our belief and conviction that youth entrepreneurship is a critical lever for economic recovery, resilience and growth. My thanks go to all who make our work possible, especially our partners and

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members, for their support and dedication and to the young entrepreneurs who inspire us on a daily basis.

Sir Malcom Williamson Chair

25 June 2021

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Reference and Administrative Information

Status Youth Business International is a registered charity and is Incorporated under the Companies Act as a company limited by guarantee not having a share capital. The company is governed by its Memorandum and Articles of Association dated 5[th] March 2008, under which each member has undertaken to contribute to the assets in the event of winding-up a sum not exceeding £5

Company number 06550164 Charity number 1123946 Registered office 21 Holborn Viaduct, London, EC1A 2DY. During this period the organisation also had offices in Bogota, Colombia.

The Trustees

The Trustees who are also Directors under company law, who served during the year and up to the date of this report are as follows:

Sir Malcolm Williamson (Chair) Fadi Sarkis Boris Tkachenko
Timothy Copnell Marie Staunton Meaghan Ramsey (Joined 03/12/2020)
Jeannie Arthur Anita Tiessen
Crispin Rapinet Romeo Effs
Andrew Smart Caroline Adeyemi
Chief Executive Anita Tiessen
Bankers Lloyds Bank Plc
Victoria Branch, Westminster, London SW1E 5JL
Auditor Sayer Vincent LLP, Chartered Accountants and statutory auditor
Invicta House, 108-114 Golden Lane, London, EC1 0TL

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Trustees’ annual report

For the year ended 31 December 2020

The Trustees of Youth Business International have pleasure in presenting their report together with audited financial statements of the company and group for the year ending 31[st] December 2020.

The financial statements have been prepared in accordance with Statement of Recommended Practice 2015 (FRS102), Accounting and reporting by Charities issued by Charity Commission.

Youth Business International (YBI) is a global network of 52 independent, locally led organisations (our ‘members’) supporting underserved young entrepreneurs to turn their ideas into successful businesses, creating jobs and strengthening communities. The network is supported by a dedicated Network Team based in London.

Our Vision and Mission

Youth entrepreneurship creates decent work for young people, strengthens communities and drives inclusive economic growth, but for too many young people, entrepreneurship is out of reach.

We work as a global network of expert organisations to help young people to start, grow and sustain the microenterprises and SMEs that are vital to our economies.

Our Network Approach

As a network we develop and scale new solutions to the critical challenges facing underserved young entrepreneurs. Our members learn, innovate and influence together. As a result, they are able to deliver better quality support to more young people around the world.

Learn : Our members have diverse expertise across the full range of youth entrepreneurship support services. To support them in their work, we deliver capacity development services, facilitate member learning exchanges and connect members to partners with the relevant expertise.

Innovate: By convening the collective expertise of the network, we can identify gaps in support for young entrepreneurs around the world. Using these insights, we work with members to develop new solutions for youth entrepreneurship support.

Influence: As a global network we are well positioned to advocate the benefits of youth entrepreneurship. We work with members to generate and share evidence on priority themes, and use the insight generated to drive change in policy and practice.

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Our Partners

To grow and nurture a sustainable network that drives impact for young entrepreneurs on a global scale, we partner with corporates, governments, international development agencies, charitable foundations and individuals. In 2020, our partners included Accenture, Argidius Foundation, Citi Foundation, the European Union, Google.org, IKEA Foundation and Standard Chartered Foundation.

The trustees are indebted to all partners for their support, both financial and otherwise, without whom it would not have been possible to achieve all that we did.

Accenture

YBI’s three-year programme with Accenture (2018-2021) anchored our ability to deliver critical support—including leveraging the digital accelerator work to deliver virtually, supporting young entrepreneurs with Growth and Performance Skills, and delivering an S.O.S. mentoring programme. The partnership with Accenture has helped us evolve the innovation and digital capability of YBI at a global and member level and to connect our members and collaborate together. As a result, our members supported 72,048 young people with the skills to start or grow a business. They went on to start over 8,000 businesses and over 10,000 businesses were strengthened.

Argidius Foundation

Our partnership with Argidius Foundation, which began in late 2018 continued through 2020, and despite a pause in delivery, our members ICCO Uganda and Enterprise Uganda continued to support high potential young entrepreneurs. In 2020, 510 young entrepreneurs in Uganda were supported through training and 245 were matched with mentors. Our panAfrican community of practice which met in early 2020, pivoted to learning and sharing online.

Citi Foundation

In 2020, we brought our partnership with Citi Foundation to a conclusion. This programme had a specific focus on supporting young female entrepreneurs across Europe. This programme brought together a consortium of eleven YBI members and built regional collaboration and support for young people to start and strengthen businesses. In 2020, our capstone event was the Young Female Entrepreneur of the Year Europe awards which were hosted online. By the end of 2020, our partnership overall had supported 38,000 young people to develop their entrepreneurship skills .

European Union

In September 2020, we concluded our partnership with the M-UP Network for Migrant Entrepreneurs to Scale Up and Grow, funded by the European Union’s COSME programme. Over three years, we worked with M-UP to build a thriving network of European

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organisations, entrepreneurs, practitioners, experts and policymakers who are passionate about empowering migrants in Europe to realise their full potential. From 2017 to 2020, M- UP’s regular activities reached over 180,000 people. This made a positive impact on Europe’s entrepreneurship ecosystem to better support migrant entrepreneurs.

European Economic Agreement and Norway Grants

YBI is part of the expert pool of partners of the ‘Young Entrepreneurs Succeed (YES!)’ programme. This programme is funded by Norway, Lichtenstein and Iceland as part of their European Economic Agreement. It supports peer learning so that partners in four countries[1] in Europe can identify shared challenges and inspire each other to debate, research and provide solutions for the pressing problem of youth unemployment.

Google.org

We onboarded 14 YBI members and 18 delivery partners to deliver the COVID-19 Rapid Response & Recovery programme to implement a holistic package of emergency support for entrepreneurs across Europe, the Middle East, Africa, and Asia-Pacific. In August 2020, we extended the initiative to Lebanon, in response to the catastrophic effects of the devastating explosion in Beirut. Since the start of the programme, members and delivery partners have provided a wide range of support services to over 197,000 entrepreneurs across the EMEA and APAC regions.

IKEA Foundation

In 2020, YBI continued its partnership with the IKEA Foundation to accelerate youth-led businesses in the digital era in Bangladesh and India with our members B’YEAH and BYST. This year the delivery focussed on supporting young entrepreneurs through the pandemic and 1,000 young people were directly supported through entrepreneurship and business skills training and digital training. We delivered Digital Accelerator-driven solutions to B’YEAH and BYST, leveraging our partnership with Accenture. We also researched and developed a decent work curriculum for young entrepreneurs.

Standard Chartered Foundation

This project, kicked off in late 2020, is part of Futuremakers by Standard Chartered, a global initiative to tackle inequality. YBI will provide crucial support to over 33,000 underserved young entrepreneurs in Botswana, Germany, Japan, Nigeria, Turkey, and Uganda. The programme will provide a range of support to help young entrepreneurs with business model adaptation, entrepreneurial leadership, crisis management, financial risk management, digital transformation, marketing and more. The aim of the programme is to ensure that a diverse range of young entrepreneurs will contribute towards a richer, more varied and more resilient economy for everyone.

1 Greece, Italy, Spain and Poland

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Objectives, activities and performance

YBl's objectives for the public benefit are:

To act as a resource for young people aged 18-35 by providing mentoring, advice, and financial assistance through the Youth Business Programmes as a means of:

To encourage sustainable development which meets the needs of the present without compromising the ability of future generations to meet their own needs and to promote it for the benefit of the public by:

YBI measures its impact using a set of Key Performance Indicators that assess progress and outcome attribution at three levels: the Network; member organisation; and young entrepreneur.

At the Network level, we saw strong performance: 96% of 45 respondent members reported that the network was ‘useful’ or ‘very useful’ in 2020 and of those 82% connected with at least one other member to share knowledge and engage in peer learning.

Driving change for young people and their communities is YBI’s mission. In 2020 our Network supported nearly 170,000 young people to develop their entrepreneurship skills. We are also able to report that 18,190 young people started a business, 13,439 young people strengthened a business and 9,223 young people secured employment. Of the 89,000 young people trained in 2020, over 22,000 have businesses still trading in early 2021.

2020 Highlights

The following are a few selected highlights:

Global Youth Entrepreneurship Festival

Over the course of the year, we supported our members to come together online and learn from each other and sector experts to enhance their support services for young

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entrepreneurs. The highlight was our Global Youth Entrepreneurship Festival which involved 315 attendees from 52 countries and featured sessions around the themes of the power of entrepreneurship and opportunities for the future, the importance of innovation and digital and what great youth entrepreneurship support looks like.

Beating the odds: Supporting youth on the move to become successful entrepreneurs

Our report ‘Beating the odds: Supporting youth on the move to become successful entrepreneurs’ explores how entrepreneurship support organisations (ESOs) and other stakeholders can help youth on the move (refugees and other migrants and displaced youth) fulfil their entrepreneurial dreams and ambitions —creating decent work, driving inclusive economic growth, strengthening communities, and transforming prospects and livelihoods. This report was launched in a webinar in December 2020 and serves as a blueprint for those supporting youth on the move.

Campaigns: International Women’s Day & Global Entrepreneurship Week

In March, we celebrated International Women’s Day showcasing the extraordinary work our network is doing to empower young women around the world to fulfil their entrepreneurial potential. In November, we leveraged Global Entrepreneurship Week to highlight inclusivity, women’s entrepreneurship day and digital innovation.

Driving Innovation & Scale

In 2020, YBI members Faten Palestine, Spark Rwanda, FATE Foundation (Nigeria), and Youth Business Spain completed the second round of the Digital Accelerator and identified digital solutions as a priority for their respective organisations. Five members; Manq’a Bolivia, Fundación Paraguaya, Jinishan Memorial Foundation (Armenia), Fate Foundation (Nigeria) and Keren Shemesh (Israel), identified business model innovations to and designed first tests.

Accrediting our Network

In 2020, nine members completed full accreditation assessments, 10 members had update reports and one member had a midterm review. Through our work with delivery partners, we have laid the groundwork for expansion and bringing on high quality members in 2021 and beyond.

Plans for the year ahead

We will continue to focus on growing and adding value to our network. We will be guided by, and seek to contribute to, the Sustainable Development Goals. Over the year ahead we aim to deepen our current partnerships and continue to expand and diversify our portfolio of funders.

In 2021 and beyond, we will focus our efforts on:

Leading the sector as an authority on effective, inclusive youth entrepreneurship services and sharing our learning over twenty years or practice. We will define an

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evidence-based "gold standard" for comprehensive, inclusive youth entrepreneurship programmes and use this to guide our service delivery.

Promoting green and social businesses, as a contribution to a sustainable and equitable world which will include developing and delivering a programme approach for social and green businesses.

Driving innovation and digital transformation of youth entrepreneurship services. This will include continuing to facilitate an innovative-led approach to digital acceleration of members and integrating effective virtual delivery methods for YBI's services and quality assurance systems.

Delivering services through a high-quality impactful network of entrepreneurship support organisations , including growing our membership.

Impact of COVID-19 on the organisational activities

We quickly pivoted our plans in 2020 to meet the needs of our members and provide the best support during these challenging times. We also began the design of what we think a recovery phase looks like and how to build resilience for our members, networks and young entrepreneurs.

We were fortunate that our 2020 business plan, including the existing objectives of activities planned under delivery grants, aligned with the needs of members and entrepreneurs navigating the crisis. The support and flexibility of our partner Accenture allowed us to support members with pivots to virtual approaches, and to adapt YBI’s core support to the network through new virtual programmes. We were fortunate to secure our partnership with Google.org in April 2020 which provided $5m for response and recovery efforts and for the start of our partnership with Standard Chartered Foundation which also considers those most affected by the pandemic.

We have had to make adjustments, mainly in delivery mechanisms and timelines as some of our face-to-face events have been cancelled or moved to digital delivery, but we have been able to maintain the spirit of our mission and indeed even accelerate the speed at which we are moving forward with longer term goals around innovation and developing a digital mindset. This included moving our annual member’s convening online, transforming our growth and performance skills training to an online offer, and launching our SOS Mentoring Programme.

We were fortunate to maintain all our current employees and added a number of new positions in 2020, but in 2021 have taken prudent steps to streamline staffing numbers in light of the uncertain economic climate.

The pandemic context presented both challenges and opportunities in terms of fundraising and sustainability for the organisation and our network in 2020. We were responsive,

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adaptive, and seized the opportunities that were presented quickly. In response we organized our 2020 activities around four areas:

Financial performance

Income

The Group’s total incoming resources for the year were £6.6m (2019: £4.2m) of which £0.5m was unrestricted (2019: £0.5m) and £6.1m (2019: £3.7m) was restricted. All income is recorded in the Charity. The Group’s incoming resources were higher than the previous year due to successfully bringing on board two new corporate partners, Google.org and Standard Chartered Bank.

During 2020 grant funds were received as follows: Accenture £1.1m (2019: £1.7m), IKEA £0.5m (2019: £0.8m), Google.org £3.6m, Standard Chartered Bank £0.5m) made up 90% of total income. Most of these grants are multi-year and multi-project grants demonstrating success in our strategy towards long-term partnerships.

The main sources of funds in 2020 were Charitable foundations and trusts 57% and Corporate Donors at 34% (2019: 76%). The remainder was received from a mixture of individual giving, donated services, multilateral grants and training and mentoring income.

Expenditure

The Charity’s total resources expended for the year were £6.2m (2019: £3.5m), of which £0.3 (2019: 0.5m) was unrestricted and £5.9m (2019: £3m) was restricted.

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The budgeted core costs of the team are agreed in advance each year, and as resources and individuals are assigned to specific projects towards which donors have directed their grants we recover these costs and show them as expenditure against the restricted income. Remaining unallocated costs and overheads are shown as unrestricted expenditure.

During 2020 expenditure on charitable activities is comprised of:

Our expenditure in 2020 is higher than our expenditure in 2019 due to number of factors but primarily bringing on board two new partnerships; Google.org providing $5m emergency funding to back businesses and sustain livelihoods and Standard Chartered Bank providing £0.5m recovery and resilience funding for youth-led business. Unrestricted expenditure decreased from £0.5m in 2019 to £0.3m in 2020 due to full cost recovery on all grants and reduction in overhead cost from 20% in 2019 to 11% in 2020.

Reserves Policy and Going Concern

The charity holds unrestricted reserves in order to continue to operate in the event of a downturn in income. In 2020, the charity’s aim was to maintain unrestricted free reserves equivalent to between three and nine months of unrestricted committed expenditure, which based on the expenditure in the year to 31 December 2020 amounts to £450k lower target and £1,350k upper target.

In 2020 the charity increased its unrestricted resources due to full cost recovery and various cost saving initiatives. As at 31 December 2020 unrestricted free reserves came to £887k and are comfortably within the reserve target range.

Trustees have taken a number of steps to ensure the charity’s financial sustainability, particularly noting the changed circumstances due to the pandemic. These are:

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After reviewing the charity’s forecasts and projections, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Risk Management

The Trustees have delegated day-to-day responsibilities for the management of the risks to the Senior Management Team. An ongoing risk management process assesses business risks and implements risk management strategies. Major risks faced by the charity are identified and prioritised in terms of their potential impact and likelihood of occurrence and means of mitigating the risks are identified.

During 2020, the three main risks to the organisation were as follows:

A review of all risks, and progress against mitigating these, is completed quarterly by the Senior Management Team, and reviewed by the Audit & Risk Committee and the Board. Where appropriate, risks are covered by insurance.

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Structure, Governance and Management

Trustee and organisational structure

Youth Business International (YBI) is a charitable company, limited by guarantee and governed by its Memorandum and Articles of Association dated 5[th] March 2008. The governing Board of the charity is a Board of Trustees who meet formally quarterly.

The Board of Trustees approve all the major strategic decisions for the organisation. The Board of Trustees delegate the day-to-day operational decision making to the Chief Executive Officer who with the Senior Management Team (SMT) runs the organisation and is responsible for all the contracts.

There are three further sub-committees;

Trustee Recruitment and Training

New trustees are recruited for their skills in areas relevant to organisational strategy and objectives. They are recruited in a variety of ways including public advertisements and/or by recommendations from those working with YBI, or from existing trustees. Candidates are scrutinised by the Nominations and Renumeration Committee supported by the CEO as necessary.

All new trustees are given a structured induction to the organisation by the Chief Executive and the Chairman. As part of the induction, meetings are arranged with key employees, other trustees and relevant external contacts. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. Training requirements are reviewed regularly.

Related parties

Any connection between a trustee or senior manager of the charity or any other contractual relationship with a related party, must be disclosed to the full Board of Trustees. The

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organisation has the control of the Fundación YBI Latinoamérica y Caribe, based in Columbia, which has been dormant since July 2020 and will be closed in March 2021. Youth Business International Foundation (Stichting) was incorporated in Netherlands on 17 December 2020. The YBI Stichting has no share capital and the Directors appointed to the board are Anita Tiessen, Crispin Rapinet and Elwin Groenevelt.

Public Benefit

The trustees have a duty to report on public benefit by explaining:

The trustees confirm that they have had regard to the Charity Commission’s guidance on public benefit reporting on YBI’s vision and mission, and on the objectives, achievements and plans.

Core Policies

YBI inducts all new staff to enable them to have good understanding of the organisational structure, policies and procedures and other role related information. YBI core policies; Code of Conduct, Safeguarding policy, Anti -Bribery and Anti-Corruption policy, Conflict of Interest policy, Whistleblowing policy and Confidentiality policy are shared with all YBI staff members. Senior Managers and Finance staff are also inducted with other finance and people management related policies.

People

Network Support Team based in London and Bogota totalled 26 people during the year. In addition, the charity has benefited greatly from the help of volunteers, both experienced professionals and interns.

Income recognition

YBI income is partly raised by project-based grants and contracts. Income on these projects is recognised in line with performance and at the same time as the expenses, meaning in the same fiscal period. The method used by YBI to recognise income from project- based grants is by using the proportion of cost incurred for work performed to date.

YBI also raises a portion of its income from philanthropists, individuals and private corporations. Income from these sources is reported in the year in which it was received as opposed to when the expenditure occurs.

Since the latter type of income is almost always received in advance of expenditure occurring, it results in surplus or deficits showing in the organisations statement of financial

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activity. Deficits signify that income for expenses incurred in current fiscal period were recognised in the year prior and surpluses are carried over as part of reserves for use in the next fiscal period.

This is in line with ‘Statement of Recommended Practice (SORP)’ accounting guidance for charities which YBI must follow.

Fundraising Standards Information

YBI does not raise funds through challenge events, telephone fundraising, digital fundraising or community groups and has only one regular donor. YBI does not use any professional fundraisers or commercial participators in the carrying out of such activities. We employed a team of three full time paid staff members to carry out our fundraising activities. YBI is not a member of a fundraising regulatory board as 99% of income is raised from corporate partners and institutional/multilateral funders.

We have complied with GDPR and other fundraising codes. We do not have a policy to protect vulnerable donors due to the nature of our fundraising activities however we do have a safeguarding policy covering all aspects of our work.

Fundraising performance was as expected in raising the necessary income for our activities. The fundraising cost in 2020 relates to income for current and future years and is largely related to multi-year grants.

Renumeration policy for key management personnel

YBI Renumerations Committee is responsible for reviewing and reporting to the Board on all matters pertaining to the organisational renumeration policy.

The Renumeration Committee is authorised to determine and recommend organisational renumeration policy, determine the renumeration and pay increases for Chief Executive Officer and Senior Management Team. This is done on annual basis.

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Trustees’ Responsibilities Statement

The trustees (who are also directors of Youth Business International) are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS102, the Financial Reporting Standards applicable in the UK and Republic of Ireland.

Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 are sufficient to show and explain the charitable company’s transactions and 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.

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

Internal controls

The trustees have overall responsibility for ensuring that the charity has an appropriate system of control, financial and otherwise.

They are responsible for keeping adequate accounting records which 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.

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These systems of internal control are designed to provide assurance against material misstatement or loss. They include:

  1. A strategic plan, an annual operating plan and an annual budget all approved by the Board

  2. Regular consideration by the Board of financial results and variance from budgets

  3. The use of the Audit & Risk Committee in overseeing of the company’s financial reporting process, including related risks and controls as well as working with the company’s external auditors

  4. Appropriate identification and management of risk

As part of this process, trustees continue to review the adequacy of the charity’s internal controls. They consider whether controls are sufficient on an annual basis. Disclosure of Information to the Auditor

As so far as each of the Trustees in office at the date of the Trustee report is aware

The Trustees’ Report was approved and signed on behalf of the Board of Trustees on 25[th] June 2021 by:

Timothy Copnell

Trustee and Chairman of the Audit and Risk Committee

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Independent Audit Report

Independent auditor’s report to the members of Youth Business International

Opinion

We have audited the financial statements of Youth Business International (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2020 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

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

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doubt on Youth Business International’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other Information

The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the group 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 group 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group 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 group 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report, including the strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

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Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent 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 group’s and the parent 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 group or the parent 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 auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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 extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

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Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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

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Use of our 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 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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.

Noelia Serrano (Senior statutory auditor)

5 July 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

22

Youth Business International

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2020

Unrestricted
Note
£
Income from:
2
514,385
3
24,321
5,295
544,001
4
151,990
4
68,477
4
1,654
4
83,640
305,760
6
238,241
-
238,241
238,241
Reconciliation of funds:
649,658
887,899
Investments
Total income
Expenditure on:
Donations and legacies
Charitable activities
Cost of raising funds
Net income for the year
Total expenditure
Charitable activities
Membership services & Engagement
Programme & Business Development
Learning & Influence
Total funds brought forward
Total funds carried forward
Transfers between funds
Net income before other recognised gains
and losses
Net movement in funds		 Unrestricted
Note
£
Income from:
2
514,385
3
24,321
5,295
544,001
4
151,990
4
68,477
4
1,654
4
83,640
305,760
6
238,241
-
238,241
238,241
Reconciliation of funds:
649,658
887,899
Investments
Total income
Expenditure on:
Donations and legacies
Charitable activities
Cost of raising funds
Net income for the year
Total expenditure
Charitable activities
Membership services & Engagement
Programme & Business Development
Learning & Influence
Total funds brought forward
Total funds carried forward
Transfers between funds
Net income before other recognised gains
and losses
Net movement in funds		 Restricted
£
-
6,067,137
-		 2020
Total
£
514,385
6,091,458
5,295		 Unrestricted
£
451,061
59,795
27,112		 2019
Restricted
Total
£
£
-
451,061
3,674,144
3,733,939
-
27,112
3,674,144
4,212,112
225,327
277,595
553,211
701,670
1,744,206
1,940,356
492,809
625,512
3,015,553
3,545,133
658,592
666,979
3,123
-
661,715
666,979
661,715
666,979
1,893,886
2,538,280
2,555,601
3,205,259
544,001 6,067,137 6,611,138 537,968
151,990
68,477
1,654
83,640		 21,203
917,242
4,276,289
678,959		 173,193
985,720
4,277,943
762,599		 52,268
148,459
196,150
132,704
305,760 5,893,694 6,199,454 529,581
238,241
-		 173,443
-		 411,684
-		 8,387
(3,123)
238,241 173,443 411,684 5,264
238,241
649,658		 173,443
2,555,601		 411,684
3,205,259		 5,264
644,394
887,899 2,729,044 3,616,942 649,658

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 17a to the financial statements.

23

Youth Business International

Company no. 06550164

Balance sheets

As at 31 December 2020

Note
Fixed assets:
11
Current assets:
14
Liabilities:
15
17
Total unrestricted funds
Total funds
Cash at bank and in hand
Tangible assets
General funds
Creditors: amounts falling due within one year
Net current assets
Total net assets
Creditors: amounts falling due after one year
Debtors
Total assets less current liabilities
Funds:
Restricted income funds
Unrestricted income funds:		 2020
2019
£
£
6,689
16,285
6,689
16,285
331,872
253,786
3,668,851
3,194,383
4,000,723
3,448,169
(390,470)
(250,780)
3,610,253
3,197,389
3,616,942
3,213,674
-
(8,414)
3,616,942
3,205,259
2,729,044
2,555,601
887,899
649,658
887,899
649,658
3,616,942
3,205,259
The group		 2020
2019
£
£
6,689
16,285
6,689
16,285
331,872
253,786
3,668,851
3,194,383
4,000,723
3,448,169
(390,470)
(250,780)
3,610,253
3,197,389
3,616,942
3,213,674
-
(8,414)
3,616,942
3,205,259
2,729,044
2,555,601
887,899
649,658
887,899
649,658
3,616,942
3,205,259
The group		 2020
2019
£
£
6,689
16,285
6,689
16,285
587,178
457,920
3,668,499
3,192,888
4,255,677
3,650,808
(390,442)
(250,420)
3,865,235
3,400,388
3,871,924
3,416,673
-
(8,414)
3,871,924
3,408,259
2,729,384
2,538,218
1,142,540
870,040
1,142,540
870,040
3,871,924
3,408,259
The charity		 2020
2019
£
£
6,689
16,285
6,689
16,285
587,178
457,920
3,668,499
3,192,888
4,255,677
3,650,808
(390,442)
(250,420)
3,865,235
3,400,388
3,871,924
3,416,673
-
(8,414)
3,871,924
3,408,259
2,729,384
2,538,218
1,142,540
870,040
1,142,540
870,040
3,871,924
3,408,259
The charity
6,689
331,872
3,668,851		 16,285
253,786
3,194,383		 6,689
587,178
3,668,499		 16,285
457,920
3,192,888
4,000,723
(390,470)		 3,448,169
(250,780)		 4,255,677
(390,442)		 3,650,808
(250,420)
3,610,253 3,197,389 3,865,235 3,400,388
3,616,942
-		 3,213,674
(8,414)		 3,871,924
-		 3,416,673
(8,414)
3,616,942 3,205,259 3,871,924 3,408,259
2,729,044
887,899		 2,555,601
649,658		 2,729,384
1,142,540		 2,538,218
870,040
887,899 649,658 1,142,540 870,040
3,616,942 3,205,259 3,871,924 3,408,259

Approved by the trustees on 25 June 2021 and signed on their behalf by

Timothy Copnell Trustee and Chairman of the Audit and Risk Committee

24

Youth Business International

Consolidated statement of cash flows

For the year ended 31 December 2020

Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Dividends, interest and rent from investments
Purchase of property, plant or equipment
(Increase)/decrease in debtors
Increase / (decrease) in creditors
Net cash provided by operating activities
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Change in cash and cash equivalents due to exchange rate
movements
Cash flows from operating activities
Net cash provided by investing activities
Cash flows from investing activities:
Dividends, interest and rents from investments		 2020
2019
£
£
411,684
666,979
13,087
11,247
(5,295)
(27,112)
(3,491)
(3,822)
(78,086)
415,750
131,274
(103,418)
469,173
959,624
5,295
27,112
5,295
27,112
474,468
986,736
3,194,383
2,207,646
-
-
3,668,851
3,194,383
Group

25

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

1 Accounting policies

a) Statutory information

Youth Business International is a charitable company limited by guarantee and is incorporated in the United Kingdom.

The registered office address is 21 Holborn Viaduct, London, EC1A 2DY.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

These financial statements consolidate the results of the charity and its wholly-owned subsidiary Fundación YBI Latinoamérica y Caribe (company number 900785397, incorporated in Colombia) on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented as a summary of the result for the year is disclosed in the notes to the accounts. Youth Business International Foundation (Stichting) was incorporated in Netherlands on 17 December 2020. The Foundation has no share capital and the Directors appointed to the Foundation board are Anita Tiessen, Crispin Rapinet and Elwin Groenevelt. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have made this assessment for a period of at least one year from the date of approval of the financial statements. As part of their assessment, the trustees have considered the impact of COVID- 19. The trustees have concluded that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

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

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

In the case of performance related or long terms contract income, income entitlement is considered to be conditional upon delivery of the specified level of service, in accordance with FRS102 and Charities SOP 2015. Income is therefore recognised to the extent that the charity has delivered the service or activity. The expenditure used to date is used as a reasonable estimate or approximation of the charities’ performance and entitlement to income.

26

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, 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.

g) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

h) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

k) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the Network Team, is apportioned on the basis of the grant budget available for overhead and management cost in the period since charity has limited unrestricted fund and is grant driven in how overhead costs are applied.

Support and governance costs are re-allocated to each of the activities based on the grant budgets and staff time attributable to each activity.�

butable to each activity.�
Cost of raising funds 6%
Memberships Services & Engagement 34%
Programme & Business Development 33%
Learning & Influence 27%

Governance costs are the costs associated with the governance arrangements of the charity such as audit fee. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

27

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

1 Accounting policies (continued)

l) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

m) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £2,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

life of lease five years three years

n) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

o) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

p) Creditors and provisions

q) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Transactions in foreign currencies are recognised at the rate of exchange at the date of the transaction. Monetary assets and liabilities are translated into sterling at the exchange rate on the balance sheet date. All exchange differences are recognised through the statement of financial activities.

r) Pensions

The charity operates a defined contribution pension scheme for staff. Contribution costs are charged to the statement of financial activities in the year in which they are payable.

28

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

Income from donations and legacies
Individuals
Donated services		 Unrestricted
£
63,883
450,502		 £
-
-
Restricted		 2020
Total
£
63,883
450,502		 Unrestricted
£
70,204
380,857		 2019
Total
£
£
-
70,204
-
380,857
-
451,061
Restricted
514,385 - 514,385 451,061

Donated services in 2020 are valued as 75% of £600,669 which is the full value of pro-bono services received (2019: £380,857) and are recognised within incoming resources as donated services. An equivalent charge is included within outgoing expenses.

The charity is grateful to:

3 Income from charitable activities

Corporate donors
Multilaterals
Charitable foundations and trusts
Other income
Total income from charitable activities		 Unrestricted
£
10,000
-
-
14,321		 £
2,255,189
56,535
3,755,413
-
Restricted		 2020
Total
£
2,265,189
56,535
3,755,413
14,321		 Unrestricted
£
44,257
-
11,000
4,538		 2019
Total
£
£
3,131,014
3,175,271
543,130
543,130
11,000
-
4,538
3,674,144
3,733,939
Restricted
24,321 6,067,137 6,091,458 59,795

29

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

4a Analysis of expenditure (current year)

Staff costs (Note 7)
Direct activity costs
Grants to members (note 5)
Network support costs*
Governance costs
Total expenditure 2020		 Cost of
Raising funds
£
129,617
1,133
-		 Membership
services &
Engagement
Programme &
Business
Development
Learning &
Influence
2020
Total
£
£
£
£
370,608
233,922
328,850
1,062,996
373,546
480,067
246,862
1,101,608
-
3,332,180
-
3,332,180
744,154
4,046,169
575,712
5,496,785
235,584
226,034
182,259
685,270
5,982
5,739
4,628
17,400
985,720
4,277,942
762,599
6,199,454
Charitable activities		 Membership
services &
Engagement
Programme &
Business
Development
Learning &
Influence
2020
Total
£
£
£
£
370,608
233,922
328,850
1,062,996
373,546
480,067
246,862
1,101,608
-
3,332,180
-
3,332,180
744,154
4,046,169
575,712
5,496,785
235,584
226,034
182,259
685,270
5,982
5,739
4,628
17,400
985,720
4,277,942
762,599
6,199,454
Charitable activities
Membership
services &
Engagement
£
370,608
373,546
-		 Programme &
Business
Development
£
233,922
480,067
3,332,180
130,749
41,393
1,051		 744,154
235,584
5,982		 4,046,169
226,034
5,739
173,193 985,720 4,277,942

*Direct staff cost includes donated services valued at £450,502.

**Network support costs include £17,400 external audit fee.

Analysis of the Network support costs

Management and admin staff costs ( Note 7)
Office, IT & business support
Travel & relationship building
Depreciation		 Cost of
Raising funds
£
19,983
20,527
93
790		 Membership
services &
Engagement
Programme &
Business
Development
Learning &
Influence
2020 Total
£
£
£
£
113,730
109,120
87,987
330,820
116,827
112,092
90,383
339,829
528
506
408
1,534
4,499
4,317
3,481
13,087
235,584
226,035
182,259
685,270
Charitable activities		 Membership
services &
Engagement
Programme &
Business
Development
Learning &
Influence
2020 Total
£
£
£
£
113,730
109,120
87,987
330,820
116,827
112,092
90,383
339,829
528
506
408
1,534
4,499
4,317
3,481
13,087
235,584
226,035
182,259
685,270
Charitable activities
Membership
services &
Engagement
£
113,730
116,827
528
4,499		 Programme &
Business
Development
£
109,120
112,092
506
4,317
41,393 235,584 226,035

30

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

4b Analysis of expenditure (prior year)

Staff costs (Note 7)
Direct activity costs*
Grants to members (note 5)
Support costs
Governance costs
Total expenditure 2019		 Raising funds
£
196,279
26,190
-		 Membership
services &
Engagement
Programme &
Business
Development
Learning &
Influence
2019
Total
£
£
£
£
390,105
171,482
200,305
958,172
172,225
804,705
300,991
1,304,111
-
578,847
-
578,847
562,330
1,555,034
501,296
2,841,130
136,609
377,766
121,783
690,204
2,731
7,553
2,435
13,800
701,670
1,940,353
625,514
3,545,134
Charitable activities		 Membership
services &
Engagement
Programme &
Business
Development
Learning &
Influence
2019
Total
£
£
£
£
390,105
171,482
200,305
958,172
172,225
804,705
300,991
1,304,111
-
578,847
-
578,847
562,330
1,555,034
501,296
2,841,130
136,609
377,766
121,783
690,204
2,731
7,553
2,435
13,800
701,670
1,940,353
625,514
3,545,134
Charitable activities
Membership
services &
Engagement
£
390,105
172,225
-		 Programme &
Business
Development
£
171,482
804,705
578,847
222,469
54,045
1,081		 562,330
136,609
2,731		 1,555,034
377,766
7,553
277,595 701,670 1,940,353

*Direct staff cost includes donated services valued at £380,857

**Support costs include £13,800 external audit fee.

Analysis of the support costs

Management and admin staff costs ( Note 7)
Office, IT & business support
Travel & relationship building
Depreciation		 Cost of
Raising funds
£
26,142
25,021
2,001
881		 Membership
services &
Engagement
Programme &
Business
Development
Learning &
Influence
2019
Total
£
£
£
£
66,079
182,730
58,907
333,859
63,246
174,894
56,382
319,543
5,058
13,986
4,509
25,554
2,226
6,156
1,985
11,249
136,609
377,767
121,783
690,205
Charitable activities		 Membership
services &
Engagement
Programme &
Business
Development
Learning &
Influence
2019
Total
£
£
£
£
66,079
182,730
58,907
333,859
63,246
174,894
56,382
319,543
5,058
13,986
4,509
25,554
2,226
6,156
1,985
11,249
136,609
377,767
121,783
690,205
Charitable activities
Membership
services &
Engagement
£
66,079
63,246
5,058
2,226		 Programme &
Business
Development
£
182,730
174,894
13,986
6,156
54,045 136,609 377,767

31

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

The Hong Kong Federation of Youth Groups
The Icehouse Limited ( New Zealand)
The Indus Entrepreneurs Singapore
The Karen Shemesh Foundation for Young Entrepreneurs (Israel)
The Somo Project ( Kenya)
Yayasan Cinta Anak Bangsa (Indonesia)
Young Africa Botswana
Youth Business Poland
Associazione PerMicroLab Onlus (Italy)
Bangladesh Youth Enterprise Advice Helpcenter BYEAH
At the end of the year
Inner City Enterprise (ICE) Ireland
Instituto Mexicano De Investigation De Familia y Poblacion
Korea Startup Forum
Mann Deshi Foundation (India)
Many Rivers Microfinance (Australia)
IBLF-Youth Business Russia
Expara (Thailand)
Fate Foundation (Nigeria)
Hatch Enterprise ( UK )
IDEMA (Turkey)
Institute for information (Taiwan)
ADIE (France)
ACT Group ( Croatia)
Action Finance Initiative (Greece)
Cost
KIZ Sinnova (Germany)
Manq'a Sostenible Sociedad Civil Bolivia
MicroStart Support (Belgium)
Qredits ( Netherlands)
Youth Business Spain
Positive Planet (France)
MOST Kazakhstan
Onow Myanmar Co Ltd
PE Plotkina Mariya Dimitrevna (Russia)
QBO Philippines ( IdeaSpace Foundation Inc)
Startup Malaysia ( Global Entrepreneurship SDN BHD)
Support Her Enterprises Co Ltd (Cambodia)
NyforetagarCentrum Sverige
BerryTech Foundation (Lebanon)
Enterprise Uganda
ETIC (Japan)
ICCO (Burundy)
ICCO (Uganda)
Anje Assoc national Jovens Empresarious (Portugal)
Bharatiya Yuva Shakti Trust ( India)		 2020
2019
£
£
53,378
-
48,267
-
148,466
39,144
42,175
-
98,526
35,942
310,559
24,257
-
309,783
-
8,397
-
67,568
-
38,627
-
64,291
-
71,796
-
-
104,911
-
9,000
84,921
30,979
60,068
-
17,137
46,754
46,792
-
-
27,255
150,329
30,851
52,178
-
71,967
-
-
18,870
131,661
-
121,911
27,663
-
33,388
150,979
39,839
62,864
-
3,798
-
98,088
39,591
75,427
-
169,528
52,104
26,223
-
64,340
-
79,068
-
73,215
-
45,605
-
105,641
-
8,150
-
71,652
-
45,582
-
79,743
-
149,222
42,556
3,332,180
578,847

The grants Youth Business International provides to its members are aimed at strengthening their ability to support your entrepreneurs. They are either operational or innovation grants.

32

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2020 2019
£ £
Depreciation 13,087 11,247
Operating lease rentals:
Property - 68,500
Auditor's remuneration (excluding VAT):
Audit 13,000 13,000
Legal services - 1,800
Foreign exchange losses 86,069 58,811

Staff costs were as follows:

Redundancy and termination costs
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes		 2020
2019
£
£
1,187,034
1,072,866
-
18,635
146,506
143,728
60,276
56,802
1,393,816
1,292,031

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

national insurance) during the year between:
2020 2019
No. No.
£70,000 - £79,999 1 2
£80,000 - £89,999 2 1
£90,000 - £99,999 1 1
£100,000 - £110,000 - 1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £ 522,994 (2019: £525,664).

Anita Tiessen, CEO and Trustee, was paid £100,800 (2019: £96,390) in her role as an employee and CEO of YBI. No other charity trustee received payment for professional or other services supplied to the charity (2019: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £79 (2019: £1,426) incurred by one (2019: one) trustee in the course of management duties.

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 26 (2019: 26)

Staff are split across the activities of the charity as follows:

Management, administration and raising funds
Direct charitable activities		 2020
2019
No.
No.
8.0
8.0
18.0
18.0
26.0
26.0

33

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

9 Related party transactions

There are no related party transactions to disclose for 2020 further to those disclosed in note 7 (2019: none).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties. Aggregate donations from related parties totalled £ 50,000 (2019: £50,000).

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

11 Tangible fixed assets

At the end of the year
Cost
Disposals in year
At the start of the year
Additions in year
Eliminated on disposal
At the end of the year
At the start of the year
Charge for the year
Depreciation
Net book value
At the end of the year
At the start of the year
The group and charity		 Office
Improvement
£
92,118
-
-		 Fixtures and
fittings
£
10,420
-
-		 Computer
equipment
£
38,334
3,491
-		 Total
£
140,872
3,491
-
92,118 10,420 41,825 144,363
79,082
10,674
-		 10,420
-
-		 35,085
2,413
-		 124,587
13,087
-
89,756 10,420 37,498 137,674
2,362 - 4,327 6,689
13,036 - 3,249 16,285

All of the above assets are used for charitable purposes.

34

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

12 Subsidiary undertaking

The charity owns the whole of the issued ordinary share capital of Fundación YBI Latinamérica y Caribe, a company registered in Colombia. The company number is 900785397.

YBI has the power to appoint or remove trustees and as such controls the Foundation. The Fundación was closed in March 2021.

The charity has controlling power of Youth Business International Stichting incorporated on 17 December 2020 in The Netherlands. The Foundation had no activity In 2020.

A summary of the results of the subsidiary is shown below:

A summary of the results of the subsidiary is shown below:
Incoming resources through contribution from YBI
Surplus in the year
Incoming resources
Operating expenditure
Total net assets carried forward
Cost of sales related to purchases from parent undertaking
Assets
Liabilities
Reserves
The aggregate of the assets, liabilities and reserves was:
Total net assets brought forward		 2020
£
761
50,474
(50,910)
-		 2019
£
5,667
190,505
(195,037)
-
325
-		 1,135
-
325 1,135
352
27		 1,495
360
325 1,135

Amounts owed to/from the parent undertaking are shown in note 13.

13 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

14
Gift Aid
Debtors
Prepayments and accrued income
Other debtors
Amounts due from group undertakings
Gross income
Trade debtors
Result for the year		 2020
2019
£
£
255,924
325
-
148,145
-
-
13,751
19,373
62,197
85,943
331,872
253,786
The group		 2020
2019
£
£
255,924
325
-
148,145
-
-
13,751
19,373
62,197
85,943
331,872
253,786
The group		 2020
£
6,610,379
463,665		 2019
£
4,206,446
870,040
331,872 253,786

35

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

15 Creditors: amounts falling due within one year

15
Creditors: amounts falling due within one year		 15
Creditors: amounts falling due within one year		 15
Creditors: amounts falling due within one year
2020
2019
£
£
117,403
25,480
38,098
35,968
53,617
-
2,214
4,513
179,137
184,819
390,470
250,780
16a
General
unrestricted
£
6,689
16,899
1,083,095
(218,786)
-
887,897
General
unrestricted
£
6,689
272,205
1,083,095
(219,449)
1,142,540
16b
General
unrestricted
£
16,285
212,165
625,810
(196,187)
(8,414)
649,658
General
unrestricted
£
16,285
416,299
641,290
(195,420)
(8,414)
870,040
GROUP
Grants payable
Tangible fixed assets
Net assets at 31 December 2020
Tangible fixed assets
CHARITY
Accruals
Debtors
Cash at Bank
Tangible fixed assets
Analysis of group net assets between funds (current year)
Debtors
Net assets at 31 December 2019
GROUP
CHARITY
Taxation and social security
Creditors falling due after more that one year
Creditors falling due after more that one year
Net assets at 31 December 2019
Cash at Bank
Creditors falling due within one year
Debtors
Debtors
Cash at Bank
Creditors falling due within one year
Net assets at 31 December 2020
Creditors falling due within one year
Creditors falling due after more that one year
Cash at Bank
Creditors falling due within one year
Other creditors
Trade creditors
The group
Analysis of group net assets between funds (prior year)
Tangible fixed assets		 2020
2019
£
£
117,376
25,120
38,098
35,968
53,617
-
2,214
4,513
179,137
184,819
390,442
250,420
Restricted
funds
Total funds
£
£
-
6,689
314,973
331,872
2,585,756
3,668,851
(171,684)
(390,470)
-
-
2,729,045
3,616,942
Restricted
funds
Total funds
£
£
-
6,689
314,973
587,178
2,585,404
3,668,499
(170,993)
(390,442)
2,729,384
3,871,924
Restricted
funds
Total funds
£
£
-
16,285
41,621
253,786
2,568,573
3,194,383
(54,593)
(250,780)
-
(8,414)
2,555,601
3,205,259
Restricted
funds
Total funds
£
£
-
16,285
41,621
457,920
2,551,598
3,192,888
(55,000)
(250,420)
-
(8,414)
2,538,218
3,408,259
The charity
390,470 250,780 390,442 250,420
General
unrestricted
£
6,689
16,899
1,083,095
(218,786)
-		 Restricted
funds
£
-
314,973
2,585,756
(171,684)
-		 Total funds
£
6,689
331,872
3,668,851
(390,470)
-
887,897 2,729,045 3,616,942
General
unrestricted
£
6,689
272,205
1,083,095
(219,449)		 Restricted
funds
£
-
314,973
2,585,404
(170,993)		 Total funds
£
6,689
587,178
3,668,499
(390,442)
1,142,540 2,729,384 3,871,924
General
unrestricted
£
16,285
212,165
625,810
(196,187)
(8,414)		 Restricted
funds
£
-
41,621
2,568,573
(54,593)
-		 Total funds
£
16,285
253,786
3,194,383
(250,780)
(8,414)
649,658 2,555,601 3,205,259
General
unrestricted
£
16,285
416,299
641,290
(195,420)
(8,414)		 Restricted
funds
£
-
41,621
2,551,598
(55,000)
-		 Total funds
£
16,285
457,920
3,192,888
(250,420)
(8,414)
870,040 2,538,218 3,408,259

36

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

17a Movements in funds (current year)

Movements in funds (current year)
Total restricted funds
General funds
EEA Active Youth
IKEA Foundation
Citi Foundation
Accenture Grant 5 (2018 - 2021)
Argidius Foundation
EC COSME (Secured)
Google.Org
Total unrestricted funds
Restricted funds:
Unrestricted funds:
Total funds
Standard Chartered Bank		 £
1,355,420
139,418
297,328
758,497
13,863
(8,925)
-
At 1 January
2020		 £
1,120,296
113,130
-
591,302
36,618
19,917
3,642,284
543,591
Income &
gains		 £
1,312,149
195,224
297,328
833,695
50,481
10,991
2,941,817
252,008
Expenditure
& losses		 £
-
-
-
-
-
-
-
-
Transfers		 £
1,163,567
57,324
-
516,104
-
700,467
291,583
At 31
December
2020
2,555,601 6,067,138 5,893,693 - 2,729,045
649,658 544,002 305,760 887,899
649,658 544,002 305,760 - 887,899
3,205,259 6,611,139 6,199,453 - 3,616,944

The grants Youth Business International provides are aimed at strengthening members and developing partners ability to support your entrepreneurs. They are either operational or innovation grants.

The narrative to explain the purpose of each fund is given at the foot of the note below.

17b Movements in funds (prior year)

Total restricted funds
General funds
IKEA Foundation
EC COSME (Secured) *
IADB MIF (Secured)
Citi Foundation
Unrestricted funds:
Total funds
Accenture Grant 5 (2018 - 2021)
Total unrestricted funds
EEA Active Youth
Accenture Innovation
Argidius Foundation
Restricted funds:		 £
1,211,921
31,522
247,279
410,288
-
(2,653)
(4,470)
-
At 1 January
2019		 £
1,727,524
-
-
554,148
849,342
51,664
21,613
469,853
Income &
gains		 £
(1,583,902)
(31,644)
(107,861)
(667,108)
(90,845)
(35,148)
(26,068)
(472,976)
Expenditure
& losses		 £
(122)
122
-
-
-
-
-
3,123
Transfers		 £
1,355,420
-
139,418
297,328
758,497
13,863
(8,925)
-
At 1 January
2020
1,893,886 3,674,144 (3,015,552) 3,123 2,555,601
644,394 537,969 (529,583) (3,123) 649,658
644,394 537,969 (529,583) (3,123) 649,658
2,538,280 4,212,113 (3,545,135) - 3,205,259

Transfers to unrestricted funds relate to overhead cover provision as per donor grant agreements

37

Youth Business International

Notes to the financial statements

For the year ended 31 December 2020

Purposes of restricted funds

Accenture Grant 6 (2018 - 2021)- strategic grant to enable young entrepreneurs to thrive in a digital economy

Argidius Foundation- supporting high growth potential businesses in sub Saharan Africa

Citi Foundation-s upporting and celebrating young entrepreneurs across Europe

EEA Active Youth- scaling trust-based partnerships to recharge entrepreneurship through innovation

EC COSME (Secured), developing a network for migrant entrepreneurs to scale up and grow

IKEA - Accelerating youth-led businesses in South Asia

GOOGLE- Rapid response and recovery programe backing businesses and sustaining livelihoods

Standard Chartered Bank -Supporting the survival and recovery of youth-le micro and SME's in the wake of the pandemic

18 Operating lease commitments payable as a lessee

The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Less than one year
One to five years		 2020
2019
£
£
-
68,500
-
13,700
-
82,200
Charity and Group
Operating lease rentals -
other

Our office lease was terminated early on 30 September 2020.

19 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £5.

38