ADDISON YOUTH CLUB ANNUAL REPORT & FINANCIAL STATEMENTS 31 MARCH 2025 Addison Youth Club, Charity number 1124045 Registered address.. clo London Youth, 47-49 Pitfield Street, London N16D
Addison Youth Club Year ended 31 March 2025 CONTENTS REFERENCE AND ADMINISTRATIVE INFORMATION STRUCTURE, GOVERNANCE AND MANAGEMENT OBJECTIVES, ACTIVITIES AND FUTURE PLANS GRANT-MAKING ACTIVITIES FINANCIAL REVIEW STATEMENT OF TRUSTEES, RESPONSIBILITIES 12 INDEPENDENT EXAMINER'S REPORT 13 STATEMENT OF FINANCIAL ACTIVITY 14 STATEMENT OF FINANCIAL POSITION 15 STATEMENT OF CASHFLOWS 16 BASIS OF PREPARATION OF THE AccouNTS 17 NOTES TO THE AccouNTS 20
Addison Youth Club Reference and Administrative Details Year ended 31 March 2025 REFERENCE & ADMINISTRATIVE INFORMATION Charity: Addison Youth Club Charity number 1124045, registered in England & Wales Registered Address: clo London Youth 47-49 Pitfield Street London N16DA Directorsrrrustees: Julian Beare (Chair) Cecile Coke (appointed 20 May 2024) Patora Dyrma (resigned 9 December 2024) Grant Blowers (appointed 19 December 2024) Jane Earle David Miller Poppy Scott Plummer (resigned 21 May 2024) James Waight Keith Ward Phillip Wassouf Banker: National Westminster Bank plc Docklands South Quay Branch 54 Marsh Wall West India Quay London E146LJ Independent Examiner: James Mathieson FCA Lindeyer Francis Ferguson Limited North House 198 High Street Tonbridge Kent TN9 1 BE
Addison Youth Club Trustees, Report Year ended 31 March 2025 The Trustees present their report and the unaudited financial statements for the year ended 31 March 2025. The Trustees confirm that the annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) (Charities SORP (FRS 102)). Charity information set out on page 3 forms part of this report. STRUCTURE, GOVERNANCE & MANAGEMENT Constitution Addison Youth Club, a registered charity, was established in 1951 and registered with the Charity Commission through a Scheme in 2008, updated in 2018. It was subsequently governed by its corporate trustee, Addison Youth Club (Trustee) Limited until 2020 when that company was dissolved and the current Board of Trustees established. Governance Trustees are elected for an unrestricted term and are appointed by the trustees. During the period under review two trustees were appointed. Addison Youth Club has no staff. The decision making and management of the charity is carried out by the trustees, and the day-to-day administration of the charity is carried out by third parties appointed by the trustees, A charity is best placed to achieve its ambitions and aims if it has effective governance and the right leadership structures, and to this end the trustees follow the Charity Governance code. Two trustees have resigned during the year, and new ones appointed. Trustees undergo an induction process which consists of a briefing with the Chair, supply and review of key documentation and a formal face-to-face meeting with other trustees where strategy and plans for the year are reviewed. All trustees are involved in the prOsS for review of financial position and subsequent allocation of grant funds for the year. Related Parties London Youth (The Federation of London Youth Clubs, as a custodian trustee) previously held the Title Deeds for a property on behalf of Addison Youth Club (as a custodian trustee). In 2019 the property was sold and a permanent endowment fund estsblished through which the charity now awards grants. Addison and London Youth have one trustee in common, but Addison now operates fully independently.
Addison Youth Club Trustees, Report Year ended 31 March 2025 OBJECTIVES, ACTIVITIES & FUTURE PLANS The charitable objects of the Addison Youth Club are to promote the development of boys and girls resident in the London Borough of Hammersmith & Fulham and neighbouring areas to achieve their full physical, intellectual, social and spi ritual potential. This was previously achieved through running a youth club on the site at 45 Redan Street, London W14 OAB from 1951 to 2017. In 2018 the Trustees of the Addison Youth Club reviewed success in achieving its charitable objects and concluded that the best use of resources would be to fund other youth projects in the area. The Trustees then established an Endowment Fund from the sale proceeds of the Redan Street propety. The sale of the property realised net proceeds of £2,329,887 in late October 2019, from which an Endowment Fund of £2,300,000 was created. Having achieved its objective of becoming a grant-making charity, the first round of grant- making activities started in the financial year ending 31 March 2021. The Trustees have had regard to the Charity Commission's general guidance on public benefit in reviewing the charity's objectives and activities, The Trustees are following 'The Charity Governance Code, and continually review to implement key recommended practices.
Addison Youth Club Trustees, Report Year ended 31 March 2025 GRANT-MAKING ACTIVITIES IN THE YEAR TO 31 MARCH 2025 Applications from eligible causes are made and administered via a website www.addison outh.or which sets out the eligibility criteria as follows.. k Grants will cover children and young people beeen the ages of 8 to 25 in the Hammersmith & Fulham area. Applications from members of London Youth and from members of Young Hammersmith and Fulham Foundation are prioritised. The minimum normal grant size will be £5,000 up to a maximum of £10,000 but is at the discretion of trustees.
All applicants must be a charity registered with the Charity Commission, or a CIC with a relevant asset lock status, where no more than one director is receiving remuneration from the company. The purpose for which funds were being sought should be consistent with the applicant organisations charitable objects. Applications may be considered for both restricted programmes or unrestricted funding to support general operational activity. The applicant organisation will be required to meet a reasonable level of due diligence requirements, relative to the size of the grant being sought. Addison Youth has been supported during the year by the Young Hammersmith & Fulham Foundation in reaching out across youth neorkS in the borough and surrounding areas. A totsl of 26 grant applications were received by the end of January 2025 and were shortlisted through due diligence criteria. The Trustees resolved that their grantmaking activities in 2024125 would once again focus on 'open access clubs meeting the basic needs of young people in the Hammersmith and Fulham area,. Following careful review, the Board made the decision to award fourteen grants in total (2024.. nine), which reflected the aspiration of the Trustees to support local vibrant organisations creatively helping young people to aspire and realise their ambitions. The total value of grants awarded in 2025 was £67,707 (2024.. 63,400) and formal Grant Agreements issued to each of the grantee organisations. The smallest grant awarded was£1,400 (2024.. £4,500) and the largest being £8,807 (2024.. £9,000). The table below gives full details and recent history. Trustees will visit all award winners during the year to assess progress, and written reports from the winners about the use of funds and the success of their projects are due by March 2026. In setting out a monitoring and evaluation framework for the grantee organisations, the Trustees have taken a proportionate approach, relevant to the size of the grant issued.
Addison Youth Club Trustees, Report Year ended 31 March 2025 As in previous years, the response to the grant funding given for expenditure in 2025 was positive. The full list of organisations who have reiVed funding from the charity since its inaugural funding round are as follows: Grants issued since 2020121 2025 2024 2023 15,0 14.472 2022 2021 16,500 14.600 Action on Disability Baraka C7 m unity Association Bumt Orange Doorstep Library Eat Club Fharn Reach Boal Club Funpacl Hammersmth Community Gardens 5.000 HUrdles2HpS Key4Life Kulan Foundab'on Lawyers4Leamers Lrttle Raven Arc&Je lthther and Child Wdfare Reiugee ACC ess st Abans Fulham Sands End The Brunswick Club The Harrow Club The Kids The Sulgrave Club Urban Parlner¥hplMasbro Y Club VDlence Interventh)n Project Wac Arts Whrte City Theatre 4.500 8.974 5,000 4,500 8.820 7,410 20,869 7.000 7.000 10,OC 7.000 8.807 8.426 9.000 15.OCK) 9,108 10,016 15.0(MJ 8.586 9,000 15,0(K) 10,0(K) 1 S,OCK) 15,000 7.680 8,248 8,218 20.000 18,500 5.ockl 5,000 67,707 63,400 98,308 1C#),973 1(MJ,746 The aim of the charity is to provide support to the Hammersmith & Fulham community by developing strong links with local organisations delivering front-line services to young people. Addison Youth continues to develop its remit and expertise in grant-making. The charity does not undertake any fundraising activity.
Addison Youth Club Trustees, Report Year ended 31 March 2025 Here is a sample of some Trustee visit and project reports made to recent grant recipients.. SEAPIA: 'SEAPIA was awarded funds in the 2025 grant round to contribute to the salary of a sessional worker. Clearly SEAPIA is a place properly embedded in the community, with children beeen the ages of 4 and 13 able to come to this big unique space with indoor and outdoor provision to go to after school at no cost, until 6pm. It's a safe and happy place for these children to play, socialise, learn, have a hot meal and just be. They gave a wonderful impression., it's a rather special place really., White City Theatre Project: 'Our summer performance project was a huge success. Over six weeks, our members worked with director Amari in Monday sessions to develop and devise a theatre piece called The Verdict, which Amari then scripted. During the first week of the summer holidays, the company rehearsed intensively culminating in performing Iwo shows at the Bush Theatre to full houses of families, friends, and the local community. The project received excellent feedback, and the young people had a such a fantastic week, building confidence, learning new skills, and experiencing the excitement of creating a full production from start to finish. The Kids Network: '1 visited the H & F premises of TKN to see how they are using our 2025 grant to best effect. They provide one-on-one mentoring of children aged 8-11, who have been having some issues at school. The mentoring is weekly, for a year. The children are referred by schools and other organisations, and the mentors are young volunteers (typically late teens in their early 20's) and generally recruited from university fairs. TKN are doing a very valuable job in the community. They came across very well, had a grip of all the issues, and I would have no hesitation in recommending them for a grant in the future.
Addison Youth Club Trustees, Report Year ended 31 March 2025 FINANCIAL REVIEW The charity undertakes grant-making activities funded by the Permanent Endowment established in 2019. At the start of the financial year the trustees noted that the real value of the Permanent Endowment had fallen below its original value and as such took the decision to slightly reduce the level of grants made in order to preserve the long-term funding level. Addison has adopted the Total Return methodology for its Permanent Endowment, and this is deemed to be a necessary measure in order to balance the interests of current and potential future beneficiaries. Note 11 to the accounts gives further details. The original investment of £2,300,000 had grown to £2,809,358 at the start of the current financial year. Net investment losses of £119,177 in the year (2024: gains of £254, 679) mean that total investments had fallen to £2,690,181 by 31 March 2025 and now shows a deficit of £201,659 (2024: deficit of £9,360) compared to its original value in real terms. Total Funds of £2,715,462 (2024: £2,829,670) are represented by the value of the Endowment Fund plus a General Fund balance of £25,281 (2024. £20,312). The Statement of Financial Activity shows Investment Income of £79,632 (2024.. £78,091). Grant expenditure in year was £67,707 (2024.. £63,400) covering activity and reporting periods from 1 April 2024 to 31 March 2025. General Expenditure was £4,463 (2024.. £3,828) and Governance Costs were £2,493 (2024.. £4,197). Note 2 to the accounts gives further details. The closing Cash at Bank position was £39,658 (2024.. £27,214) and the net Current Asset position £25,281 (2024: £20,312). I NVESTMENTS The sum of £2,300,000 was invested in early November 2019 with a total return approach in a Charities Ethical Investment Fund held by CCLA. As noted above, unrealised investment losses of £119,117 were recorded during the year, in contrast to gains of £254,679 made in the previous financial year. This represents a drop in the overall value of investments of 4.2 % during the year. The Addison year end fell in the period where market COnrnS regarding the US 'Liberation Day, annOunmentS were high. Consequently, the US market fell by 70/0 in the two weeks preceding 31 March, with even greater falls in a number of overseas markets where the punitive impact of tariffs was deemed likely. The CCLA Fund which the charity is invested in correspondingly fell 8.8 % in the same period and ended the year 4.4 % down for the 12 months. It should be noted that 96 % of the investment loss was incurred in the final quarter of the 2025 financial year, and the bulk of that in the final weeks of the financial year. Combined with inflationary (CPI) growlh lower than recent previous years but still nudging 3 % - it meant that the value of the endowment in real terms remained below the value when established in November 2019. Given that markets have recovered significantly post-year
Addison Youth Club Trustees, Report Year ended 31 March 2025 end, trustees remain hopeful that this shortfall will be recovered swiftly, although economic conditions remain volatile and the reported shortfall in (CPI rebased) 'real' value has risen from £39k to £201 k. RESERVES POLICY The transition from an operational youth club to a grant-making organisation with no overhead or employees considerably has lowered the need to carry reserves. The fund held as listed investments within the permanent endowment fund ensures the charity has sufficient resources to carry on making grants as trustees think fit, with due regard to the level of investment income available to fund such grants. Grant payments may be varied by the charity in accordance with income earned on investments. Trustees take a view as to the value of grant funding they make available each year, particularly should the income earned from investments be insufficient to cover any losses incurred. The trustees, having reviewed the Reserves Policy, are satisfied that adequate funds are available via the General Fund balance of £25,281 (2024: £20,312) to sustain GenerallGovernance expenditure, all grants in relation to 2025 having been discharged in full to eligible grantees. The Reserves Policy is regularly reviewed, and trustees are confident that assumptions remain valid. RISK MANAGEMENT The trustees receive a regular flow of information about both the finances and operations of the Trust. Trustees have assessed the major risks to which the Trust is exposed through their risk management policy. These are.. Investment risk- the Trust's assets are comprised of investments, which are used to generate its income. An investment policy is in place to mitigate risks associated with the management of these assets and the performance of the investments, which are professionally managed, is regularly reviewed by the trustees. Financial risk- the risk of financial mismanagement or fraud the charity's financial transactions will comprise of receipt of income from investment managers, and expenditure related to its grant-making activities,. with some small expenditure incurred which will relate to bank charges and governance costs. Addison continues to share banking resources with London Youth, but approval and control procedures are completely independent and financial information for the Trust is held, and reported, separately. Addison has commenced the process of fully separating its banking and this will be completed in 2025. Administrative and IT resources are provided by independent and carefully vetted third paty suppliers. Grant-making activities the charity has put rigorous due diligence processes in place to ensure that funds are appropriately granted to relevant organisations in the Hammersmith and Fulham area to reach the targeted cohort of young people, in line 10
Addison Youth Club Trustees, Report Year ended 31 March 2025 with their respective charitable objectives. Processes have also been put in place - which include monitoring and evaluation frameworks to provide stewardship and oversight of grants to ensure that they are being spent in line with agreed aims and objectives. The trustees will monitor the potential for financiallreputational risk closely as a result of their grant-making activities. Conflict of interest- the charity previously worked closely with London Youth but is now operationally independent. A potential conflict remains arising as a result of one of the trustees of the Addison Youth Club also being the Deputy Chair of London Youth, but this has been mitigated by the appointment of an additional independent trustee to the Addison Board. A conflict-of-interest policy is in place to manage any risk of conflict. Child protection risk - this risk is mitigated by the fact that the charity no longer operates as a youth club working directly with children and young people and its future activities will be limited to grant-making activities. In relation to its grant-making activities, the charity has published a statement of its safeguarding policy expectations of grantee organisations and reviews the safeguarding arrangements in place by grant applicants as part of its due diligence process for making a grant award. On occasion Addison trustees will visit such organisations, and checks are in place to ensure these visits are fully compliant with these expectations and policies. CASH FLOW AND GOING CONCERN Net Cash Flow used in operating activities in 2025 was £67,188 (2024.. £67,487), with Cash Flows from investing activities of £79,632 (2024. £78,091). The trustees have assessed the ability of the Trust to continue as a going concern. Informing this conclusion, a period of at least 12 months from the date of signing the financial statements has been considered. A key area of uncertainty relates to ongoing market volatility on the valuation of investments. There is flexibility in the level of discretionary grants approved and as such variances can generally be accommodated within reserves. In other words, should market volatility have a materially negative impact on Investment Income in the future, trustees have the option of a delay to grant-making activities andlor a restructure of the fund should that be deemed necessary, although no such measure is currently anticipated to be necessary. The general fund ratio to average annual non-grant expenditure is deemed sufficient to cover operating costs for 2024-25, based on expected expenditure levels. Consequently, the trustees have concluded that the Trust has a reasonable expectation that there are adequate reserves to continue in operational existence for the foreseeable future and have continued to prepare the financial statements on a going concern basis.
Addi80n Youth Club TKu5teBS' Rep(Yt Year otKled 31 MatGh 2025 STATEMENT OF TRUSTEES. RESPONSIBILITIES Trustees are r8sponsible for preparing the trustees, report and accounts In accLYdance with applicable law and United Kingdorn Accounting Standards (Unit8d Kingdom GerallY Accepted Accounting Practice). The law aF¢)Ilcble to charFtl88 in Engl8fKI and Wales requires the trustees to prèpare a(1n for e8ch flnand81 year which give a true and fair view of the state of affairs of the ctrity and ol the Incomlng resources and applicalion of resource8 of the charity for that perk)d. In prepaflng th638 accounts. the tru8te8s are required lo:
select sultsble ac£ountlng FK)Ilcles and then apply them (xJnsi8tentty observe th8 methods and principles in the Statement of Recommend8d Practi (Accounting and Rerb.rj by Charlties) (th8 Charitles, SORP FRS 102) make Judgements and estimates that are roasonable and prudent State hthether applicable Unlled Kingdom Accoun15ng Standards have been followed, subject to any rnalerial departures disclosed arKI explained in th8 accounts; and prepa the accounts on the going concèm basis unl888 il is inappropriate to presume Ihat Ihe tharity WIM Gontlnue In operallon. Trustaas ar8 responslble for keeplng adequate aCUntI re(x)rd8 that 8r8 Sufficient to show and explain the charity's tranSacnS and disclose with asOnable accuracy at any tlme Ihe flnanclal posltion of the charity and enable them to ensure Ihat the ac(x)unts comply wlth the Charltles Act 2011, tho Charity (ACUnts and Reports) Regulations 2008 and the provlslon8 of the trust de1. They are also responsible safeguarding the assets of the charity and henco for taking rnaaonabla 8tOP8 for Ihe prevontlon and det8ctk)n of fraud and other irregularities. Sign on behalf of the tru8tee8: alr 23.1.26 Prled bythe tru8tee3 on.................. 12
Addison Youth Club: Annual Report and Accounts FYE 31 March 2025 Independent Examiners Report to the Trustees INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF ADDISON YOUTH CLUB I report to the trustees on my examination of the accounts of the Addison Youth Club for the year ended 31 March 2025 which are set out on pages 14-24. Responsibilities and basis of report As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act,). I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145{5)(b) of the Act. Independent examiner's statement I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect.. 1. accounting records were not kept in respect of the Trust as required by section 130 of the Act., or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view, which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. James Mathieson FCA Lindeyer Francis Ferguson Limited Date.. North House 198 High Street Tonbridge Kent TN9 1 BE 13
Addison Youth Club: Annual Report and Accounts FYE 31 March 2025 Statement of Financial Activity STATEMENT OF FINANCIAL ACTIVITY Unrestricted Endowment Funds Funds Total Funds 2025 Total Funds 2024 Note Income Other income 79,632 79,632 79,632 79,632 78,091 78,091 Total Income Expenditure Charitable Expenditure Total Expenditure 74,663 74,663 71,425 Net GainslLosses on Investments (119,177) (119,177) 254,679 Net Incomel(expenditure) 4,969 (119,177) (114,208) 261,345 Reconciliation of Funds Total Funds brought forward 20,312 2,809,358 2,829,670 2,568,325 Total Funds Carried Forward 25,281 2,690,181 2 715 462 2,829,670 All of the above activities are derived from continuing operations during the above financial years. The notes on page 20 to 24 form part of these financial statements. 14
siaieiwii d Finan(aal P1> STATEMEKf OF FiNANcL posmoN T•)tsl Unr••trlct•d Endovfflnt Fund• Fund• Fund• 2026 Total ?024 Flx•d A•••t• 0 2.6.181 1690.181 2609.1 Tolal Flx•d A•••t• 2.8 181 1690.111 2 358 CwT•nt A•••ts Cash al B•r Dttlixs T•l•l Curnnt A•••l• 39.658 246 39,65• 246 27214 Amowls *in 1 war N•1 Cwr•rtl A•••¢• 114.823) 25.281 114,6231 J21 YJ 312 TOTAL NET ASSETS 26.281 2.690.181 2 715.462 2 829 C,70 Fund• UNestnde(l Fw 25.281 26.281 0 2.fj.I8l 690.181 2 B(fv 156 25,281 2,690,181 1716.462 2 ifj9 17 11 TOTAL FUNDS ARD Jyll•n 8•arn .126 15
Addison Youth Club: Annual Report and Accounts FYE 31 March 2025 Statement of Cash Flows STATEMENT OF CASHFLOWS 2025 2024 Cash flows from operating activrtles: Nel cash provided by (used in) ODeratina activities Cash flows from investing activitses: Net dividends, interest and rents from investments Net cash provided by {used in) invests'ng actNrties Change in cash and cash equivalents in the reporting year Cash and cash equrrfalents at the beginning of the reports'ng year Cash and cash equNatents at the end of the reportlng year 167,188) (67,487) 79,632 78,091 79,632 78,091 12,444 10,604 27214 16,610 39,658 27,214 Cash and cash equivalents: Cash at bank and in hand Total cash and cash equrrfalents 01-Apr-24 27,214 27214 Caghflow 31thl•r-25 12,444 12,444 39,658 39,658 Reconcillation of net income (expenditure> to net cash flow fiom operating aCtrtS. Net income l (expenditure) for the reporting period as perthe statement of nancial activitses Lossl(Gains) on investments other Income 2025 2024 1114208) 261,345 119,177 179,632> (246) 7,721 {254,679) 178,091) 336 3,602 (Increaselldecrease in debtors Increasel(decrease) in creditors Net cash provided by (used inl operab'ng actsvities 167,188) (67,487) 16
Addison Youth Club: Annual Report and Accounts FYE 31 March 2025 Notes to the Accounts BASIS OF PREPARATION OF THE ACCOUNTS Addison Youth is a registered charity in England & Wales. The address of the registered office is given in the administrative information on page 3. The accounts (financial statements) have been prepared on the basis of historical cost convention adjusted for fair value of investments, in accordance with the Charities SORP (FRS 102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK generally Accepted Practice. The Addison Youth Club meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. Within the statements 2025, refers to either the period ended, or balance at, 31 March 2025, with the same convention applying to columns marked '2024'. The accounts are presented in pounds sterling and rounded to the nearest pound. Going Concern Ststement The Trust holds a permanent endowment fund from which it received investment income to fund grants. A key area of uncertainty relates to the prevailing market turmoil on the valuation of investments and returns. Net Cash Flows from investing activities have risen slightly to £79,632 (2024.. £78,091), which are more than adequate to cover the level of non-grant expenditure of £6,956 (2024.. £8,025). In contrast to the prior year investment gains of £254,679, the year ended 31 March 2025 saw investment losses of £119,177 as noted in the investment commentary above. The trustees have assessed the ability of the Trust to continue as a going concern. Informing this conclusion, a period of at least 12 months from the date of signing the financial statements has been considered. Trustees have concluded that the Trust has a reasonable expectation that there are adequate resenies to continue in operational existence for the foreseeable future and have continued to prepare the financial statements on a going-concern basis. There are no material uncertainties about the charity's ability to continue, and so the going concern basis of accounting has been adopted. Income Policy All income is credited to the statement of financial activities when there is entitlement, it can be measured, and receipt is probable. Investment income is credited to the statement of financial activities in the period in which the Trust is entitled to receipt and the amount can be measured with reasonable rtaIntY. 17
Addison Youth Club: Annual Report and Accounts FYE 31 March 2025 Notes to the Accounts Expenditure Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered. Expenditure comprises the following: The cost of generating funds includes the fees paid to investment managers in connection with the Twst's listed investments. Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all related conditions. Governance costs comprise those costs directly attributable to compliance with statutory requirements. Fund accounting The general fund comprises those monies which may be used towards meeting the charitable objectives of the Trust at the discretion of the trustees. An Endowment Fund of £2,300,000 was created as a permanent endowment in the Trust Deed dated 27 May 1937 (as amended by Charity Commission Schemes in 1978 and 2008). 18
Addison Youth Club: Annual Report and Accounts FYE 31 March 2025 Notes to the Accounts Financial Instruments The charity 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 amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash at bank and in hand. Financial liabilities held at amortised cost comprise trade creditors and accruals. Investments, including bonds held as part of an investment portfolio, are held at fair (market) value at the Balance Sheet date. Realised and unrealised gains and losses are credited, or debited, to the statement of financial activities in the year in which they arise. At the balance sheet date, the charity held financial assets at fair value of £2,690,181 (2024: £2,809,358),. assets at amortised cost of £39,904 (2024.. £27,214) and financial liabilities at amortised cost of £14,623 (2024.. £6,902). Critical accounting judgements and key sources of estimation uncertainty In the application of the charity's accounting policies which are described above, trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods. In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balan sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. 19
Addison Youth Club.. Annual Report and Accounts FYE 31 March 2025 Notes to the Accounts NOTES TO THE ACCOUNTS 1. Income 2025 2024 Income earned on Deposits Other Income - transfer from Unapplied Total Return Total 79,632 78,091 79,632 78,091 2. Expenditure on Charitable Activities 2025 2024 Grants to Organisations 67, 707 67,707 63.400 63,400 Support Costs Accountancy & IrKJependent Examination Fees. Accountancy & lThJependent Examinats'on Fees incurred in respect of prior year Insurance charges Bank charges Management and Administration Fees Subscriptions 2,491 3,320 540 336 4,219 244 6,956 3,500 328 8,025 Totsl 74,663 71,425 Independent Examiners remuneration Independent Examination Fees 2,200 2,200 2,100 2,100 *drop is pri ma ri ly due to accounti ng servi ces bei ng provided pa rti al ly pro bono I n 2024125 20
Addison Youth Club.. Annual Report and Accounts FYE 31 March 2025 Notes to the Accounts 3. Investments 2025 2024 Listed Investments Opening Market Value Net investment gains/(losses) Market value at 31 March 2025 Cash held by investment managers for reinvestment 2,809,358 (119,177) 2,690,181 2,554,679 254,679 2,809,358 2,690,181 2,809,358 Cost of listed investments at 31 March 2025 2,300,000 2,300,000 Listed Investments held at 31 March 2025 comprised: Overseas Equities UK Equities Propetylother Assets Cash TOTAL 1,532,865 219,519 750,291 187,506 2,690,181 1,830,016 178,113 739,985 61,244 2,809,358 4. Staff Costs Addison Youth Club does not have any employees. Administration services were provided in year by a third-paty supplier. 5. Debtors 2025 2024 Prepayments Total 246 246 6. Creditors 2025 2024 Trade Creditors Grant payments accrued Other Accruals Total 1,302 8000 6,623 14,623 5,600 6,902 21
Addison Youth Club.. Annual Report and Accounts FYE 31 March 2025 Notes to the Accounts 7. Funds Asat1 April 2024 Gainsl (Losses) Incoming Expenditure Transfers Asat31 March 2025 Funds Unrestricted 20,312 Endowment 2,809,358 79,632 (74,663) 25,281 2,690,181 (119,177) 2,829,670 79,632 74,663 119,177 2.715,462 Asat1 April 2023 Gainsl (Losses) Incomi ng Expenditure Transfers Asat31 March 2024 Funds Unrestricted 13,646 Endowment 2,554,679 78,091 (71,425) 20,312 2,809,358 254,679 2,568,325 71,425 78.091 254,679 2,829,670 8. Analysis of Net Assets between Funds General Fund EndovMnt Fund TOT 2025 Fund balances at 31 March 2025 Represented by: Investments Current assets Creditors: amounts falling due within orE year 2,690,181 2,690,181 39,904 (14,623) 39,904 (14,623) Total Net Assets 25,281 2.690,181 2,715,462 General Fund End0VrEnt Fund TOT 2024 Fund balances at 31 March 2024 Represented by: Investments Current assets Creditors: amounts falling due within one year 2,809,358 2,809,358 27,214 (6,902) 27,214 (6,902) Total Net Assets 20,313 2,809,358 2,829,670 22
Addison Youth Club.. Annual Report and Accounts FYE 31 March 2025 Notes to the Accounts Trustees, Remuneration None of the trustees received from the charity any remuneration for any work carried out during the financial year ended 31 March 2025 (2024.. £nil). The amount paid to trustees for expenses during the financial year ended 2025 was £nil (2024.. £nil). 10. Related Parties During the year under review, Addison paid no management fees or subscription Fees to Related Parties. 11. Permanent Endowment investment and total return Addison Youth club has adopted the Total Return Accounting basis for its permanent endowed funds which were originally established in late 2019 following the sale of the Redan Street building. Trustees have chosen to maintain the capital of the permanent endowed funds in real terms by making a transfer from the Unapplied Total Return equal to the increase in Consumer Price Index (CPI) from the base point (1 November 2019) to the Balance Sheet date. Any amounts remaining after this transfer in the Unapplied Total Return will be applied to income funds or retained as the Trustees see fit. Any income funds not disbursed in the financial year are retained as Unapplied Total Return. As a result of historic investment returns and the recent impact of high inflation, the opening unapplied total return fund balance was slightly negative (at £9,356). This has been restated to reduce the value of the endowment to follow the SORP. All Dividends earned in the year were transferred to Income. Investment losses (of £119,177) and continued inflationary pressures have compounded this, and the substantial recoupment required (of £73,126) meant that the unapplied total return carried forward shortfall would have grown to £201,659. As the investment losses exceed the amount of unapplied total return, the loss has been treated as a reduction in the value of the trust for investment component of the permanent endowment until such time as these losses are reversed. Trustees continue to monitor this closely and note that the Addison year end fell at just the moment when markets dipped as a consequence of US policy announcements and that stock markets recovered these losses in the second quarter of 2025. Noting also the improving inflationary position in the first half of 2025, trustees remain hopeful that this recovery will continue and will formally review the position before end December 2025. In the meantime, grants continue to be restricted (to balance the interests of current and potential future beneficiaries) and trustees have decided not to make any transfers during the year. 23
Addison Youth Club.. Annual Report and Accounts FYE 31 March 2025 Notes to the Accounts Endowed for Investment Unapplied Total Return 2024 Total Endowed Total Endowed At start date: 1 April 2024 Gift component of permanent endowment Unapplied Total Return Reduction in the value of the trust for investment 2,818,714 2,818,714 2,730,573 (175,894) 9,356 2 809 358 9,356 2 809,358 2,554,679 Movements: Recoupment of trust for investment" Dividend return (net of costs) Investment losses 73,126 (73,126) 79,632 119,177 (112,671) (79,632) 79,632 119,177 (39,545 (79,632 78,091 254,679 332,769 (78,091) 73,126 Unapplied total return allocated to Income Reduction in the value of the trust for investment 192,303 192,303 Net movements in reporting period 119 177 119 177 254,679 Totsls at 31 March 2025 2 690 181 2 690 181 2,809,358 .This represents the sum elected to maintain the real capital value of the endowed funds by offsetting the impact of inflation. 24
ADDISON YOUTH CLUB Charity number 1124045 clo London Youth 47-49 Pitfield Street London N16DA info addison outh.or .uk