**City Year UK** A COMPANY LIMITED BY GUARANTEE **REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022** CHARITY NUMBER: 1131350 COMPANY NUMBER: 06965846 **CITY YEAR UK** TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 ## **CONTENTS** |TRUSTEES’ REPORT|**5-30**| |---|---| |INDEPENDENT AUDITORS’ REPORT|**32-34**| |STATEMENT OF FINANCIAL ACTIVITIES|**36**| |BALANCE SHEET|**38**| |STATEMENT OF CASH FLOWS|**40**| |NOTES FORMING PART OF THE|| |FINANCIAL STATEMENTS|**42-51**| 3 Trustees. Report ## **CITY YEAR UK** TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **Reference & administrative details** Charity Name Charity registration number Company registration number: Registered Office City Year UK 1131350 06965846 200A Pentonville Road London, N1 9JP ## **Trustees** Jonathan Beebe Jim Balfanz (tenure ended December 2021) Aliza Blachman-O’Keeffe AnnMaura Connolly Matthew Davies Patrick Flaherty Charles Geffen Kasey Hooper Sachin Jogia Joseph Knoll Pauline Maddison (tenure ended December 2021) Bethia McNeil (joined in June 2022) Rodney Williams Stephanie Wu (joined in December 2021) Chair of the Board ## **Senior management team** Kevin Munday Craig Burgess Debra Burke Chief Executive Chief Operating Officer Director of Development and External Relations ## **Auditors** Knox Cropper LLP Chartered Accountants 65 Leadenhall St London EC3A 2AD ## **Bankers** CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4TA ## **Solicitors** Ashurst LLP Broadwalk House 5 Appold Street London EC2A 2HA 5 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## **Our objectives and activities** ## **Public benefit** In developing the objectives for the year and in planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit. City Year UK’s purposes are set out in the objects contained in the Company’s Articles of Association. It promotes the education of people under the age of 25 years in the UK in such ways as the Directors think fit, including by organising and assisting with the provision of volunteers to schools to act as tutors, mentors and near-peer role models to pupils. It advances the development of volunteers by providing training, advice, guidance and access to financial support. ## **About City Year UK** City Year UK’s vision is of a society where the transformative power of full-time social action in schools is an integral part of growing up in the UK; supporting every child and young person to achieve their full potential. Our mission is twofold: - to give every pupil the chance to succeed, by partnering with schools to coach those furthest from opportunity to achieve the social, emotional and academic results they need to progress at every stage of their education; and - to tap into the talent, energy and idealism of diverse young adults to drive social change in education and develop the standout experience, leadership skills and networks to launch any career. ## **Our Approach** We enable diverse young adults to volunteer full-time, for a year, in schools with a high proportion of pupils eligible for free school meals. They are trained and supported to inspire, mentor and tutor children of all ages to overcome social, emotional and academic barriers to learning and, by realising pupils’ potential, realise their own. Often volunteering in their own communities, our young adults gain real world experience and over 120 hours of dedicated leadership and development training. They leave with standout skills and new networks that set them up for any career. ## **Empowering Young Adults to Tackle Educational Inequality in the UK** COVID-19 may no longer be front page news but many pupils, particularly those furthest from opportunity, are still suffering the consequences. Every day, our young adult volunteers see how multiple barriers, exacerbated by lockdowns and interrupted learning, obstruct curriculum catch up. In this report, we highlight their unique holistic impact in schools; mentoring, coaching and tutoring across social, emotional and academic skills to realise pupils’ potential, an approach borne out by new research from the US. 6 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** But that’s not all. At City Year UK we place equal importance on the development of our volunteers and in November 2021, were delighted to be awarded the highest Level 4 rating by the Skills Builder Universal Partnership for our programme’s impact on their essential skills. Our ongoing partnership with the NCS Trust’s CIC’s UK Year of Service scheme has also created 23 ‘school service leader’ roles for young adults, offering paid work that pays back. In total, 151 diverse young people have tackled educational inequality through City Year UK in 2021 to 2022. They have supported 1,200 children one-to-one and contributed to a positive learning environment for over 20,000 pupils, while benefiting from a worthwhile and rewarding experience that will help set them up for any career. _“Our City Year Team has been a real asset to the academy and its community. They have all gone above and beyond supporting students in lessons, with mentoring, extra-curricular and at school events such as Prom. They have all been professional,_ – _personable and really positive members of staff. A joy to work with!”_ Academy Vice Principal 7 **CITY YEAR UK** TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 “ _My mentor has_ ” _changed my life_ . –Pupil “ _Our City Years just ‘get’ [our school] and for our families, that means more than anything._ ” –Teacher “ _My bridge builder mentor gave me tailored support, helping me improve my CV and interview skills and invited me for a site visit. His dedication will benefit_ ” _me for life_ . –Volunteer mentor " _How empowered I am! I feel so capable of taking hold of my own future after City Year_ ." –Volunteer mentor 8 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## **EMPOWERING** ## **CONNECTING** **128 diverse young adults** gave over **155,000 hours** to tackle educational inequality in **24 schools** across London, Greater Manchester and the West Midlands **23 young adults** employed as ‘school service leaders’ **1200 ‘focus list’ pupils** furthest from opportunity received 1:1 integrated **social** , **emotional** and **academic coaching** throughout the year City Year UK teams contributed to a **positive learning environment** for **20,733 pupils** and ran **511 schoolbased clubs** or initiatives “ _Our City Year team has been a highly effective support system for students. They have been quick to immerse themselves into school life and support teachers to deliver the best outcomes for students. They have formed great relationships with children to keep them in classrooms and share their insights with wider school teams_ .” –Teacher **71% of focus list pupils** improved or maintained attainment in maths **79% of focus list pupils** improved or maintained attainment in English **97% of secondary school pupils** surveyed, agreed that “ _My City Year mentor helps me to understand my school work_ ” **92% of secondary school pupils** agreed that “ _My City Year mentor helps me to build good relationships with other students_ ” ## **DEVELOPING** ## **PARTNERING** Through giving, our volunteers also gain. They learn to lead change in their local communities, develop personal and professional skills, access new networks and plan for their future career **100% of young adults** surveyed at the end of their year agreed they can choose a career that fits with what they are good at **Over 90%** are typically in further education, employment or training within three months of completing their City Year Our impact is only made possible because of the incredible engagement and support we receive from our partners and donors **23** paid positions for young adults to lead volunteers in school thanks to our partnership with UK Year of Service **2,600+ hours** of corporate volunteering given to our young adults to become career ready **99** professionals volunteered for 10 months as ‘bridge builder’ mentors to our volunteers 9 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** **----- Start of picture text -----**
Empowering
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## **The Long Tail of Covid-19 Disruption in Schools** Around nine pupils in a class of 30 are growing up in poverty in the UK - some 4.3 million children. They already faced worse education and life outcomes before the pandemic, experienced consistently more learning loss than their peers[1] and continue to be most adversely affected by the long tail of COVID-19 disruption. COSMO, a major new national longitudinal cohort study of 13,000 young people, found that those in the most deprived schools were more likely to report feeling behind their peers (45%) than those in schools with better off intakes (31%). Attendance remains a problem. In the autumn term of 2021, COSMO reported that 50% of pupils categorised as disadvantaged in Years 10 and 11 missed at least 10% of in-person sessions, compared to 35% categorised as non-disadvantaged[2] . According to Ofsted’s spring 2022 report, behaviour continued to be a challenge in some schools and leaders said that “ _pupils’ level of engagement and ability to stay on task continued to be worse than pre-pandemic_ .” In addition, it highlighted the negative impact on some pupils’ mental health and well-being, with concerns “ _about pupils’ lower resilience and confidence and greater anxiety_[3] .” “ Neil, a volunteer mentor with City Year London, encapsulates his experience of how the pandemic’s side effects are still playing out in classrooms, corridors and _I saw that young_ playgrounds. _people struggle to_ " _It’s become particularly striking in the context of the pandemic and lockdowns. articulate their feelings Students at my school found themselves in serious trouble for not reacting to staff in [...] the best way, whether it was verbally or even physically, leading to repeated sanctions. Young people couldn’t express their emotions, to the point where they either bottle it_ –Neil, volunteer mentor _all up and allow it to damage their mental health or act out every time._ ” ## **An Integrated Solution The Evidence** There is a growing body of research showing the association between educational attainment and socio-emotional development. A longitudinal study funded by the Department for Education and following nearly 6,000 children since 2013, has found that “ _children who did not meet the expected level of attainment at Key Stage 1 (when they were 7), but who had met the EYFSP (Early Years Foundation Stage Profile) level when they were 5 years old, experienced the largest deterioration in their socio-emotional health between 4 and 8-10 years old_[4] .” > 1 https://epi.org.uk/publications-and-research/epi-research-for-the-department-for-education-on-pupil-learning-lossmarch-2022/ > 2 https://cosmostudy.uk/publications/education-recovery-and-catch-up > 3 https://www.gov.uk/government/publications/education-recovery-in-schools-spring-2022/education-recovery-in-schools-spring-2022 > 4 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1030051/ SEED_2020_Report.pdf 11 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** Recent large scale studies of City Year in the US have also shone a spotlight on the importance of students’ social-emotional skills, finding that they are as strong a predictor of academics as family background and that making gains in social-emotional skills is like gaining an entire school year of achievement growth in maths or English[5] . The 2022 report stated: “ _The findings emphasise that human-centred, relationship-focused, school-based interventions such as City Year’s can be successful in developing students’ social-emotional skills along with their academic outcomes (directly and indirectly through improved social-emotional skills_ )[6] .” ## **Key Findings From The Everyone Graduates Center At John Hopkins University**[7] **: (Analysis Funded By The Bill And Melinda Gates Foundation)** |Students receiving more support from City
Year tended to show stronger attendance,
academic and social-emotional outcomes|The lower a student’s prior level
was, academic or social-emotional,
the stronger the relationship
between the City Year intervention
and the student’s spring outcomes|Greater impact is seen when
integrating social-emotional
skills into academic interventions,
e.g. incorporating goal-directed
behaviour while learning maths| |---|---|---| The Everyone Graduates Centre research also confirmed something that we see every day at City Year UK: “ _social-emotional outcomes are highly influenced by what is happening in a student’s life, and their interactions with teachers, peers, parents and others at a given moment_ .” This means that schools need to find a way of responding to students’ 'in the moment' needs and facilitating positive, supportive relationships, whether that’s with teachers or other pupils. Volunteer mentors are uniquely placed to fulfil that role. They build rapport with pupils and partner with teachers. As near peers, they’re often able to bring their own experience of education and growing up to bear and crucially, as a consistent presence, they are often there when frustrations flare up. As a teacher in one of our partner schools explains: “ _The City Years ensure that they check on the child when they can see a change in his usual pattern of behaviour. They understand how to help him, which seems like a minor thing but it is very beneficial for him to cope in an independent manner without disrupting me during a lesson_ .” - 5 This data reflects grades 3-10 in the US > 6 https://www.cityyear.org/wp-content/uploads/2022/06/20220203_EGC_CityYearReport2_BalfanzByrnes.pdf > 7 https://www.cityyear.org/the-everyone-graduates-center-and-city-year/ 12 FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## TRUSTEES’ REPORT **----- Start of picture text -----**
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## **Connecting Social, Emotional and Academic Learning in the UK** At City Year UK, our young adults are trained and supported to help pupils strengthen and weave together social, emotional and academic strands of learning day in, day out, for a year. With each volunteer mentor giving around 1,640 hours, and typically serving alongside four or more others, a City Year UK team provides a significant, fully integrated resource: coaching pupils to solve problems, work with others, form friendships, express ideas, learn from mistakes and manage their emotions, at the same time as tutoring academic or ‘cognitive’ skills. Pupils learn better when they feel physically and emotionally safe and connected to at least one adult. That is our volunteers’ goal. They gain trust, can find out the root causes of attendance avoidance or disruptive behaviour and show pupils what they are capable of. In the words of one of our young adults this year: “ _Every problem can be solved with a little love, guidance and care_ .” ## **Our Twofold Approach in School** ## **Volunteer Mentors Provide** **Individualised support for focus list pupils furthest Whole school support in classrooms, corridors and from opportunity playgrounds** Pupils chosen in partnership with teachers because Each City Year UK team is integral to life at their school. they are categorised as disadvantaged and / or are showing signs of not meeting their potential. They run breakfast clubs and welcome pupils as they arrive, provide in-class as well as individual support, are extra eyes and Of the **1,200** pupils supported 1:1 in 2021-22: ears and someone to talk to at break times and lead a range of **55%** were on free school meals enrichment and after-school activities. **43%** had poor attendance **46%** displayed disruptive behaviour **52%** had low curriculum attainment **City Year UK teams combine social, emotional and academic learning. They build trust to inspire, coach and mentor pupils to succeed.** “ _City Years inspire you to do great things and become a better person."_ – Pupil “ _Our City Years have been our saviour! They have all worked in their own unique way to help light up the corridors. They have been so supportive around the academy and great listeners, kind hearted and created amazing opportunities for students."_ –Teacher 13 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## **IMPACT ON FOCUS LIST PUPILS 2021-22** **Curriculum progress 7 out of 10** improved or maintained in maths **8 out of 10** improved or maintained in English “ _It makes such a difference to have Miss O [volunteer mentor] in the classroom. She has established good connections with students and can support them confidently. It also helps if they need refocusing or reshaping to complete a task. Working within the lower sets is all about establishing a positive relationship with the students before you can do anything else. She also understands when to intervene - I don’t know what I would do without her help in lessons!_ ” –Year 7 maths teacher “ _I feel that my EAL [English as an additional language] children have benefited greatly from City Year support. Safia [volunteer mentor] has been able to spend valuable time with these children, which I don’t necessarily have, to develop their language skills as well as their social skills, both inside and outside the classroom_ .” –Primary school teacher **Social and emotional learning 41%** reduction of pupils in ‘need’ category **(measured across 8 competencies) 100%** increase of pupils in ‘strength’ category **75% of teachers** agreed that since having a mentor, pupils had built positive relationships with their peers “ _My mentor is really helpful. I would not have got to the point I am at with teachers and other students without her help, not just academically but emotionally_ .” –Pupil **Wellbeing 91%** agreed that ‘City Year helped them enjoy school’ “M _y mentor always helps me when I’m down or struggling. She is always giving me advice to help fix my problems and I am going to miss her_ .” –Pupil “ _City Year is the best thing that has happened this year. They made it fun with someone to speak to_ .” –Pupil **Positive behaviour 6 out of 10** improved **7 out of 10 teachers** responding to a survey, agreed that since having a City Year UK mentor, focus list pupils seemed more engaged and had improved their behaviour in lessons “ _Mohima [volunteer mentor] has been invaluable for supporting A, particularly when he is not able to regulate his emotions_ .” –Teacher “ _City Years are really good. My mentor helps me to calm me down when I’m having a bad day_ .” –Pupil **Attendance 4 out of 10** improved or maintained* “ _X [pupil] was on a reduced timetable and by the end of year 11 was doing full days_ .” –Teacher * Targeting attendance continues to be particularly challenging for volunteer mentors in the aftermath of the pandemic. Studies have highlighted the stark attendance gap between pupils eligible for free school meals and their peers and the many reasons why children have not returned to school[8] . > 8 https://blogs.lse.ac.uk/politicsandpolicy/rising-school-absences-the-post-pandemic-education-divide/ 14 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## **Focus on Measurement of Social and Emotional Capabilities** Volunteer mentors are trained to observe focus list pupils across eight competencies on a termly basis using the Devereux Student Strengths Assessment (DESSA). City Year UK then calculates a composite social-emotional rating categorising pupils as showing ‘strength’, as ‘typical’ or flagged as in ‘need’. The appropriate support for each child can then be tailored accordingly. ## **DESSA Competencies:** Research in the US concluded that, “ _The DESSA competency areas that more strongly relate to student outcomes are Personal Responsibility and Goal-Directed Behaviour, followed by Self-Management and Decision Making. However, in general, the composite measure for the entire SEL [social-emotional learning] scale is stronger than the individual competency domains_ .”[9] Between term 1 and term 3 in 2021-22, the number of pupils showing ‘need’ fell by 41% from 254 to 149 pupils. The number showing overall ‘strength’ doubled to 50 from 25. ## **Integrated Learning in Practice A Case Study** Emma, a mentor with City Year Greater Manchester, highlights how she was able to chart her focus list pupil’s extraordinary progress through social and emotional learning, behaviour, attendance and curriculum attainment measurement tools. “At the start of the year, G struggled - particularly with seeing lessons through. He would become easily frustrated with activities he didn’t ‘get’. He didn’t have the confidence to work independently and when not given the attention he wanted would resort to crying, being careless with his work and belongings and shutting down on me. Six out of eight of his DESSA areas of social and emotional learning were categorised as in ‘need’ for support. “After working with G and encouraging more positive behaviour, especially when he approached tasks with an open mind and showed resilience when he didn’t understand, G has progressed massively. He has the confidence to tackle activities independently and even offers to help others. He has become more mindful of his presentation and has had fewer disruptive outbursts in the classroom. I am super happy to have witnessed his confidence grow! > 9 https://www.cityyear.org/wp-content/uploads/2020/05/EGC_CityYearReport_BalfanzByrnes.pdf 16 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** “This change has been reflected in his DESSA assessments where he has now been rated as ‘typical’ in 7 out of 8 areas and has progressed from ‘need’ to ‘strength’ in relationship skills. “His improved behaviour in class also shows in his number of good behaviour points, which have increased by 124% between the start of the autumn term and the beginning of the summer term! His growth in confidence and independence has influenced his attendance, increasing from 86% in the first half-term (considered to be persistent absence) to 98% in the fifth half-term (within the expected attendance range). “This shift in attitude and behaviour, alongside City Year tutoring in maths, spelling and grammar, has had an impact on his curriculum attainment. He increased his standardised score by +3 points in reading from the end of the autumn term to the summer term and in maths by +10 points.” ## **Impact on the Whole School** We place a lot of emphasis on the difference volunteer mentors make to individual pupils but that is only half the story. Their impact reaches far beyond their focus list. **In 2021-22 Volunteer Mentors Ran 511 School Based Clubs or Initiatives** |**In 2021-22 Volunteer Mentors Ran511 School Based Clubs or Initiatives**|**In 2021-22 Volunteer Mentors Ran511 School Based Clubs or Initiatives**|**In 2021-22 Volunteer Mentors Ran511 School Based Clubs or Initiatives**| |---|---|---| |**6,946 hours**
of extra-curricular support|**2,288 hours**
of school community support|**23,831 hours**
of curriculum support for focus list
and non-focus list| |**4,300 hours**
of breaktime support|**837 hours**
of pastoral support|**6,285 hours**
of English| |**930 hours**
welcoming pupils into school and running
breakfast club|**385 hours**
supporting school led trips|**7,135 hours**
of maths| |Clubs included: art, coding, creative
writing, dance, debate, engineering,
games, homework, leadership, library,
multi-sports and music|Help with enrichment days and
trips at one school alone included
athletics, football tournaments,
road safety and visits to a Viking
Centre, Legoland, a safari park, zoo,
and Roman Museum|Further signifcant support with
reading, science, PSHE and phonics| _“ Every school should invest in City Year. City Year has made such an impact in the school and the students’ lives.”_ – _Teacher_ _“My Year 11 class really benefited from Charlie’s [volunteer mentor] presence. He was a motivator, enthusiastic and super helpful. He has been instrumental in the overall progress of the class and enjoyment of our subject because he got so involved and assisted many students.”_ – _Teacher_ 17 **CITY YEAR UK** TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 **----- Start of picture text -----**
Developing
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## **Developing the Talent Pool of the Future** ‘ _Uplifting_ ’, _‘creative_ ’, ‘ _contagious energy_ ’, ‘ _hard working_ ’, ‘ _pro-active_ ’ and ‘ _dedicated_ ’ are just some of the adjectives that have been used to describe City Year UK’s young adults this year. However, as the OECD has highlighted, although young people have never left education “ _more ambitious or highly qualified_ ”, making the next step, to find attractive work, isn’t necessarily a given. Results from the OECD’s 2018 Programme for International Student Assessment (PISA) showed: “ _Students vary considerably in the extent to which they are able to visualise and plan their futures, with the most disadvantaged at greatest risk_ .”[10] It has found a positive correlation between students who “e _xplore, experience and think about their futures in work_ ” and lower unemployment, higher wages and greater happiness in their careers as adults.[11] At City Year UK, we believe that a year of social action should serve as a launchpad for any career and we are committed to giving our diverse young adults the time and opportunity to find out what they want to do and who they want to become. Through structured leadership development, professional one-to-one mentoring, access to new networks and challenging but rewarding work experience, they build their confidence, develop a career plan and gain the capabilities employers are looking for. Last year, every volunteer mentor received a CMI Level 3 in Leadership and Management, demonstrating knowledge and skills of roles and responsibilities required at mid-level management. Next year, our young adults will also be enrolled on to the Level 3 Diploma in Coaching and Mentoring, designed for first-management role seekers, including first-line managers and team leaders. In November 2021, we were delighted to be awarded with the **highest Level 4** from the **Skills Builder Partnership** for our impact on young people’s essential skills. 10 https://www.oecd.org/education/career-readiness/about/ 11 https://issuu.com/oecd.publishing/docs/how-youth-explore-experience-think-about-their-fut/2?ff&backgroundColorFullscreen=%2363D4BF 18 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** **By the end of their City Year, they have developed the attributes employers want:** **100% 89% 88% 76% 81%** ~~**CAN DO GOAL SETTERS LEADERS TEAM PLAYERS**~~ believe they can do can make the best can set their own happy to be the can get people to work most things if they try out of a difficult goals leader in a team together in a team situation “ _It taught me how to be a great team player and leader which I always found challenging_ .” –Volunteer mentor ## **They’re confident they have the skills to secure the job they deserve:** |**100%**
**CV WRITING**|**100%**
**INTERVIEWING FOR JOBS**|**88%**
**FORMAL PRESENTINg**| |---|---|---| |"_I have learnt how to be abetter public speaker and tobelieve in myself_
_because I am more capable than I think_."
–Volunteer mentor||| **They know who they are and have a plan for their future career:** |**98.5%**
**agreed to at least some extent that they**
**can decide what their ideal job will be**|**100%**
**agreed they can choose a career**
**that fts with what they are**
**good at**|**95%**
**agreed they can make a plan of**
**their goals for the next fve years**| |---|---|---| |"_City Year gave me guidanceon how to navigate my ownprofessional career anddevelopment and provided_
_me with insight into how toimprove my own work practicesand cultivatemore self-awareness._"
–Volunteer mentor||| 19 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## **Developing the Socially Active Citizens of the Future** In Britain, in America and in South Africa, City Year was founded with a core belief; that uniting and empowering diverse teams of young people to address some of our most difficult challenges can change the world for the better. Alongside their full-time social action in schools, our young adults also have the opportunity to learn more about social justice, engage meaningfully with the world around them and lead social action in their local communities. During their two Social Action Days they put their skills to work, to support other causes they care about. ## **Community Social Action in 2021-22** given to organising and delivering social action projects gave their Social Action Day **5/5** for enjoyment Just a few examples of the 24 social action projects that took place: - Fun and engaging activities for children at a local youth centre - ‘Shooting Hoops’ for charity - an in-school competition with teachers versus pupils - Organising donations for care packages for the homeless “ _Social Action can be very rewarding - it doesn't have to take the form of large donations or endless work - a little goes a long way and it's a lovely feeling_ .” –Volunteer mentor ## **Developing our Programme** Just as we pride ourselves on investing in the development of the young adults who volunteer with us, we are constantly evolving our Leadership and Development programme and curriculum. According to the Deloitte Global 2022 Gen Z and Millennial Survey, “ _Grappling with the impact of the last few years, the youngest generations in the workforce are seeking balance and sustained change._ " _“In these uncertain times, they are reassessing It is always nice to see that City Year their priorities and expecting more from business leaders… Prioritising work / life balance, learning and cares about our personal development from development, and well-being will be critical, as will a well-being standpoint too_ ." _having a clear purpose and giving employees the_ –Volunteer mentor _opportunity to address societal issues through their work._ ”[12] 12 https://www2.deloitte.com/global/en/pages/about-deloitte/articles/genzmillennialsurvey.html 20 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** This chimes with our own experience and, based on key stakeholder feedback, we had already taken into account new considerations centred on ‘balance’. Following the changes we had to instigate in response to lockdowns, we have appraised our balance between virtual and in person training, as well as between regional and national content and in-house and external delivery. Based on school feedback, we’ve introduced more content on effective learning, school learning environments and tutoring. Last but not least, we’ve made the well-being of volunteer mentors a sustained focus; promoting work / life balance and social interaction. 21 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## **Partnering** Our impact would not be possible without our partners. Shared networks and innovative collaborations across the public, private and voluntary sectors enable us to introduce our volunteer mentors to opportunities, workplaces and careers they would never otherwise have experienced or considered. “ _I was nervous and unsure if this was for me, as a young person of colour it is difficult to be in places where you do not fit in but this taught me not to let my background or race determine my future. We need more of these to happen and I am grateful that I could go out of my comfort zone to attend_ .” –Volunteer mentor ## **Partnering to deliver Career Exploration and Skill Development** In 2021-22, thanks to the engagement of our partners, all volunteer mentors had the opportunity to take part in: - **Mentoring** 10 months of 1:1 mentoring with a ‘bridge builder’ from a professional background - **Skills Workshops** Ranging from public speaking and interview techniques to CV writing - **Learning from Leaders** Speakers with insights from the public, private and voluntary sectors _" My bridge builder mentor has prepared me for my journey into the world of work [...]_ " _My bridge builder mentor has prepared me for my journey into the world of work, helping me with areas such as my CV and interview skills. Having monthly meetings has helped me improve my interpersonal skills and confidence._ _I have been able to ask plenty of questions about life during and after university, which I can definitely take into the future. I am very grateful for all the guidance and advice_ ." –Volunteer mentor - **Workplace Visits** Industry Exploration Days to learn about career pathways - **Networking** Virtual ‘speed networking’ breakfasts - **An Enterprise Day** Including creating and pitching a business plan “ _I got to network with people who are in similar fields that I would like to go into. I gained insight into working life and how people got into their career, and gained a great insight into the working world in the future_ .” –Volunteer mentor ## **Corporate Partnership Support in Numbers 2021-22** - **2600+ hours** of corporate volunteering given to support our young adults to prepare them for their next step after City Year ## **• 381 corporate volunteers** involved in helping to deliver our development programme via workshops and events ## **• 99 professionals volunteering for 10 months as mentors** providing ongoing support, career advice and a sounding board for our young adults 22 **CITY YEAR UK** TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **Partnering to offer Meaningful Employment to the Next Generation** 2021-22 was City Year UK’s first year of partnership with UK Year of Service, offering paid work that pays back.[13] We were delighted to become a Placement Partner, enabling 23 young adults to become school service leaders (SSLs). Each SSL was employed to support a team of volunteer mentors and their own small focus list. They helped drive pupil achievement and built their team’s school partnership, alongside City Year UK’s staff programme team. One day a week, they took part in and supported leadership and development training days. Cory, 24, from London found that the experience helped him to understand what he wanted from his career and to build the confidence to secure it. It helped him to shape his understanding of the youth sector, learn the needs of young people and think about how he could improve their life chances. In August 2022, his efforts led to him getting an internship with recent City Year UK corporate partner, Tata Consultancy Services, where he is part of a team committed to transforming the lives of young people through technology. UK Year of Service is already showing promising signs of impact and reach. Over 50% of its members were on universal credit and early data shows that 82% of all its members are in employment or education following their UK Year of Service. > 13 https://www.ukyear.com/ 23 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## **Achievements and Performance** Three years ago, we took the opportunity of our 10 year anniversary to renew our commitment to impact. The effects of the pandemic in the intervening years has made that commitment even more vital, both for pupils furthest from opportunity and the inspirational volunteers who support them. In 2021-22 our focus on measurement and evaluation has meant we’ve been able to track and refine interventions to aid curriculum catch up and prove our impact on essential skills for young people, achieving accreditation. |**Priority**|**Key achievements in 2021-22**| |---|---| |**Continue to strengthen the City Year UK**
**programme, to ensure that it is impactful in the**
**post-COVID world**|•
We worked in partnership with the Skills Builder Partnership
to strengthen our volunteer support, so that it best
prepares young people for the job market and ensures
their transition into employment at the end of their service
year.
•
We adjusted our programme to provide more impactful
support to pupils recovering from COVID-related learning
loss, including through more 1:1 social and emotional
coaching, small group tuition and after-school enrichment.
•
We worked in partnership with National Citizen Service
(NCS) to demonstrate the efectiveness of a ‘UK Year
of Service’ in tackling the aftermath of the pandemic,
introducing the role of paid ‘school service leaders’ to
supplement the work of our volunteers.
•
We began to build additional school partnerships,
particularly in primary schools and areas like Greater
Manchester where our support is needed the most.| |**Develop robust central services that enable City**
**Year UK to achieve and grow its impact**|•
We reviewed our working policies and practices to ensure
that they were ft for purpose in the post-COVID world.
•
We completed a thorough job evaluation and salary
benchmarking process, to ensure that our staf were
adequately supported as the cost of living rises.
•
We supported half of our people to undertake additional
work-based learning or apprenticeships, with support from
Credit Suisse’s apprenticeship levy.
•
We improved our data systems and impact management to
better demonstrate the diference we are making, trialling a
web portal that enables our volunteers to better track their
own progress.| 24 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** |**Communicate programme impact to our**
**supporters and sustainably increase our income**|•
We rolled out a new marketing strategy that more clearly
communicated our work, with revamped campaigns for
potential volunteers, school partners and donors.
•
We hosted a reception at The National Gallery and our frst
gala dinner for fve years at Tate Modern, engaging over
120 of our top supporters in how they can contribute to
our work.
•
We continued to diversify our donor base, with new
partners in the communications, technology and
consulting industries.
•
Over 300 employees from more than 20 diferent
businesses contributed pro bono time to supporting young
people, through delivering skills training, mentoring or
workplace experiences.| |---|---| ## **Fundraising** During the year, City Year UK did not make use of any external consultants to undertake its fundraising activities. No data was shared with, or sold to, any external agencies. We did not undertake direct mail shots, send any unsolicited newsletters or approach any vulnerable individuals to support our work. A complaints policy is in place but we received no complaints during the year about any of our fundraising activities. ## **Financial review** ## **Results** This year we have delivered the programme into 24 schools across four regions. As the Fundraising environment continues to be challenging, the organisation has maintained tight cost control, carefully seeking best value for money with all expenditure. We have formally adopted a hybrid home working model for office based staff which has allowed us to keep our office accommodation costs down. Based on the best practices and efficiencies we developed during the pandemic, we are continuing to find ways to meet the logistical and economic challenges associated with programme delivery in three regions. In the context of such change the Statement of Financial Activities on page 36 of these financial statements shows net incoming resources for the year ended 31 July 2022 of £33,445. This is the result of total incoming resources of £3,103,857 net of total resources expended of £3,070,412. This has resulted in unrestricted funds of £427,292 and restricted funds of nil at the year end. 25 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## **Reserves** Trustees’ policy is to retain a prudent level of reserves from unrestricted income to: - Ensure that the charity can continue to provide a stable and high quality service to our beneficiaries - Provide sufficient working capital for the planned activities for the following year - Meet unexpected costs such as loss of key personnel, staff cover for illness, maternity or paternity leave, or the legal costs defending the charities interest - Invest in organisational development to support long-term stability and sustainability - Meet all contractual liabilities, and in the event of the closure have provision set aside for redundancy costs, liabilities to creditors and any existing lease commitments - Replace equipment as it wears out and which is not funded by restricted funds. ## **Amount of reserves** The reserves represent unrestricted reserves, and at 31 July 2022, amounted to £427,292 compared to £393,847 in FY21, an increase of £33,446 - which is within the trustee reserves policy. The Trustees estimate that a prudent level of unrestricted reserves required for the charity to comply with its reserves policy is eight to twelve weeks of total expenditure. Based on budgeted expenditure for the current year, a prudent level of reserves would be between £417,027 and £677,677. The Trustees have set another surplus budget and fundraising plan to continue to build reserves. ## **Assessment of going concern** In considering the likely going concern of the charity, Trustees have assessed both the prospect of there being sufficient cash flow over the next twelve months to support operations, and the likelihood of being able to complete the next academic year with sufficient reserves based on current fundraising prospects. After assessing these risks the Trustees feel confident that our current fundraising strategy will result in sufficient income to remain a going concern. The Trustees have also set clear budgets and goals to make operating surpluses and grow the reserves over the next two years. ## **Principal funding sources** We thank all our supporters to whom we are deeply grateful. Our major organisational sources of funding in 2021-22 (in alphabetical order) were: Akin Gump Strauss Hauer & Feld LLP Bain Capital EU Children’s Foundation Bank of America EMEA Foundation Cadent Foundation Coventry University Credit Suisse EMEA Foundation Danaher Foundation DHL UK Foundation EBM Charitable Trust The Eveson Charitable Trust 26 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** Fidelity UK Foundation Garfield Weston Foundation Goldman Sachs Gives Harbourvest Foundation M7 Real Estate Ltd National Grid The Rosemarie Nathanson Charitable Trust The TowerBrook Foundation The Vertex Foundation WPP ## **Principal risks and risk management** City Year UK’s Trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established policies, systems and procedures to manage them. A risk register is updated at least annually and this is regularly reviewed to mitigate the risks the charity faces. The principal risks are: - Loss of funding or inability to secure sufficient funding - Safeguarding failure for volunteers and children - Inability to recruit sufficient schools or young people - Reputational damage - Breach of data security or compliance - Loss of key personnel - Fraud or financial mismanagement City Year UK has a safeguarding policy that covers all our interactions with pupils and all volunteers undertake child protection training before being permitted to volunteer in schools or work with children. In a review of the safeguarding policy, the NSPCC noted that it was 'fit for purpose' and made recommendations for further improvement which have been implemented. Volunteers and staff undergo a DBS check before they can take up a paid or voluntary role with City Year UK. Policies and procedures are in place to ensure compliance with the health and safety of our staff, volunteers and visitors. There are internal policies and procedures covering HR, IT, GDPR/data protection, privacy and security as well as internal financial controls for the authorisation of all financial transactions and projects. 27 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## **Plans for 2022-23** ## **Structure, governance and management** ## **Governing document** City Year UK is a registered company limited by guarantee, incorporated on 17 July 2009 and registered as a charity on 25 August 2009. It was established under a Memorandum of Association which defines its objects and powers and is governed under its Articles of Association. In the event of the company being wound up, members (who are currently solely the Trustees of the charity) are required to contribute an amount not exceeding £10. ## **Recruitment and appointment of Trustees** The directors of the company are also charity Trustees for the purposes of charity law. Under the requirements of the Memorandum and Articles of Association, Trustees serve a three-year term. They can be re-elected and generally serve a maximum of three terms. The articles make provision for Trustees to serve additional terms in exceptional circumstances and with the unanimous agreement of all other Trustees. During the year, two new Trustees were elected. All Trustees gave their time voluntarily and receive no benefits from the charity. ## **Trustee induction and training** An induction pack for Trustees is in place, and all new Trustees are invited to meet with the Chair and Chief Executive to discuss the work of the charity and in particular to be informed of: - The obligations of Trustees; - The main documents which set out the operational framework for the charity including the Memorandum and Articles; - Resourcing and the current financial position; and - Future plans and objectives. Trustees’ needs are assessed on an individual basis, and training is provided if required. During the year, all Trustees engaged in development sessions covering educational policy changes, trends in volunteer engagement and building a culture of equity, diversity and inclusion. ## **Organisational structure** City Year UK has a Board of Trustees who meet quarterly, as well as delegating specialist matters to committees where appropriate. Collectively they are responsible for the strategic direction, policy and financial sustainability of the charity. At present, the Board has twelve Trustees from a variety of professional backgrounds relevant to City Year UK’s work. Recommendations on strategic direction, financial progress and day to day management of the charity’s activities are delivered by the senior leadership and wider staff team. 28 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## **Arrangements for setting pay and remuneration of key management personnel** Pay and remuneration of the senior leadership team are set by the Chief Executive by reference to both internal pay scales and external benchmarking. This process is conducted by the Trustees for the remuneration of the Chief Executive. ## **Relationship with related parties** City Year UK operates under an international affiliation agreement with City Year Inc., a not for profit registered in the US. The technical assistance and affiliation agreement gives City Year UK the rights to use the proven City Year Inc. programme design. The affiliation agreement came up for renewal in December 2019 and has since gone through two successful biannual recertification processes. ## **Statement of Trustees’ responsibilities** The Trustees (who are also the directors of City Year UK for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing those financial statements, the Trustees are required to: - Select suitable accounting policies and then apply them consistently - Observe the methods and principles in the Charity SORP - Make judgements and estimates that are reasonable and prudent - Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware: - There is no relevant audit information of which the charitable company's auditors are unaware; and - The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 29 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. This report was approved by the Trustees on 07.12.2022 and signed by order of the Board. Jonathan Beebe (Chair of Trustees) 07.12.2022 30 ## **CITY YEAR UK** TRUSTEES’ REPORT FOR THE YEAR ENDED 31 JULY 2022 **Independent Auditors’ Report** 31 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF **CITY YEAR UK** ## **Opinion** We have audited the financial statements of City Year UK (the ‘charitable company’) for the year ended 31 July 2022 which comprise the statement of financial activities, the balance sheet, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 July 2022 and of its income and expenditure for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 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 annual report, other than the financial statements and our auditors’ report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 32 ## INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF **CITY YEAR UK** ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors’ report included within the Trustees’ report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the Trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the Trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. ## **Responsibilities of Trustees** As explained more fully in the Trustees’ responsibilities statement set out on page 29, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 33 ## INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF **CITY YEAR UK** - The Charitable Company is required to comply with both company law and charity law and, based on our knowledge of its activities, we identified that the legal requirement to accurately account for restricted funds was of key significance. - We gained an understanding of how the charitable company complied with its legal and regulatory framework, including the requirement to properly account for restricted funds, through discussions with management and a review of the documented policies, procedures and controls. - The audit team, which is experienced in the audit of charities, considered the charitable company’s susceptibility to material misstatement and how fraud may occur. Our considerations included the risk of management override. - Our approach was to check that all restricted income was properly identified and separately accounted for and to ensure that only valid and appropriate expenditure was charged to restricted funds. This included reviewing journal adjustments and unusual transactions. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of the audit report** This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken, so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report or for the opinions we have formed. 08.12.2022 Simon Goodridge (Senior Statutory Auditor) For and on behalf of Knox Cropper LLP, Statutory Auditor 65 Leadenhall Street London EC3A 2AD 34 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF **CITY YEAR UK** **Statement of Financial Activities** 35 ## **CITY YEAR UK** STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2022 |**Notes**
**Income and endowments from**
**Donations and legacies**
Grants and Donations
2
**Other trading activities**
Gala Dinner
**Investment Income**
**Charitable activities**
School Fees
**Total Income**
**Expenditure on**
**Raising funds**
Costs of Generating Voluntary Income
**Charitable Activities**
Programme Expenses
**Total Expenditure**
4
**Net income/(expenditure)**
**Net Movement in funds**
**Reconciliation of funds**
**Total Funds Brought Forward**
**Funds Brought Forward restated**
**Total Funds Carried Forward**|**Unrestricted**
**Funds**
1,119,983
55,288
205
1,213,593
2,389,069
301,996
2,053,628
2,355,624
33,445
33,445
393,847
427,292|**2022**
**Restricted**
**Funds**
714,788
-
-
-
714,788
-
714,788
714,788
-
-
-
-|**Total Funds**
1,834,771
55,288
205
1,213,593
3,103,857
301,996
2,768,416
3,070,412
33,445
33,445
393,847
427,292|**Unrestricted**
**Funds**
937,767
12,000
575
1,225,696
2,176,038
252,293
1,841,526
2,093,819
82,219
82,219
311,628
393,847|**2021**
**Restricted**
**Funds**
592,570
-
-
-
592,570
-
592,570
592,570
-
-
-
-|**Total Funds**
1,530,337
12,000
575
1,225,696| |---|---|---|---|---|---|---| |||||||2,768,608| |||||||252,293
2,434,096| |||||||2,686,389| |||||||| |||||||82,219| |||||||| |||||||82,219| |||||||311,628| |||||||| |||||||393,847| All incoming resources and resources expended derive from continuing activities. 36 ## **CITY YEAR UK** STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2021 **Balance Sheet** 37 **CITY YEAR UK** BALANCE SHEET AS AT 31 JULY 2022 |**Notes**
**Fixed Assets**
Investments
10
**Current Assets**
Debtors
11
Cash at Bank and in Hand
**Liabilities**
Creditors: amounts falling due
Within One Year
12
**Net Current Assets**
**Total Net Assets**
14
**The Funds of the Charity:**
**Unrestricted Funds**
General Funds
13
**Restricted Funds**
13
**Total Funds**|**2022**
**£**
1
1
294,236
330,497
624,733
197,442
427,291
427,292
427,292
-
427,292|**2021**
**£**
1| |---|---|---| |||1| |||114,480
566,891| |||681,371| |||287,525| |||393,846| |||393,847| |||393,847
-| |||393,847| Approved by the Board of Trustees on 07.12.2022 and signed on its behalf by: Jonathan Beebe Chair of Trustees Registered Company Number: 06965846 Registered Charity Number: 1131350 38 ## **CITY YEAR UK** BALANCE SHEET AS AT 31 JULY 2021 # **Statement of Cashflows** 39 ## **CITY YEAR UK** ## STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 JULY 2022 |**2022**
**£**
**CASH FLOWS FROM OPERATING ACTIVITIES**
Net cash flows provided by (used in) operating activities
(236,394)
**NET CHANGE IN CASH AND CASH EQUIVALENTS**
(236,394)
Cash and cash equivalents at the start of the year
566.891
**Cash and cash equivalents at the end of the year**
330,497
**RECONCILIATION OF OPERATING SURPLUS TO NET CASH INFLOW FROM OPERATING ACTIVITIES**
**2022**
**£**
**Net Income / (expenditure) for the financial year**
33,446
**Adjustments for:**
Depreciation charge
-
(Increase)/decrease in debtors
(179,756)
Increase/(decrease) in creditors
(90,084)
**Net cash provided by (used in) investing activities**
(236,394)|**2021**
**£**
(18,152)| |---|---| ||| ||(18,152)| ||585,043| ||566,891| ||**2021**
**£**
82,219
461
85,488
(186,320)| ||(18,152)| 40 ## **CITY YEAR UK** BALANCE SHEET AS AT 31 JULY 2021 # **Notes Forming Part of the Financial Statements** 41 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## 1. **ACCOUNTING POLICIES** ## **a. Basis of Accounting** The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 second edition) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. ## **b. Going concern** The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements. In particular, the Trustees regularly review detailed cashflow projections including all expenses, expected school income and the weighted pipeline for grants and donations prepared on a bottom-up basis. They also consider the risks of schools dropping out, the pipeline not coming through and the timing of receipts from schools and donors. The Trustees, having considered the projections and risks described above have a reasonable expectation that adequate financial resource will continue to be available for the foreseeable future. Based on this the trustees have concluded that the charity remains a going concern. ## **c. Group** The charitable company and its wholly owned subsidiary are a small group. The results and balance sheet of the wholly owned subsidiary are highly immaterial to the financial statements of the charity and so consolidated financial statements have not been prepared. See note 3 for the results of the wholly owned subsidiary. ## **d. Income** Income consists of grants and donations and bank interest receivable. These are dealt with on a receivable basis, i.e., income is recognised when it becomes legally receivable. Where income has been used specifically for funding fixed assets, the income is recognised in the Statement of Financial Activities and depreciation on the fixed assets is charged against the relevant fund as it arises. ## **e. Donations in Kind** Donations in kind are recognised both as income and expenditure where their value can be ascertained with reasonable certainty. ## **f. Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is recognised on an accruals basis. Whenever possible, expenditure is allocated direct to the activity to which it relates on an actual basis. Where actual allocation is not possible the costs are apportioned on the basis of staff costs. ## **g. Restricted Funds** Where income is given for a specific purpose or project, the funds are treated as restricted and any surplus or deficit will be carried forward as a restricted fund until it is fully applied for the specified purposes. 42 ## **CITY YEAR UK** NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 ## **h. Value Added Tax** The Charitable Company is not registered for value added tax (VAT) and input tax is not recoverable. Expenditure is therefore recorded inclusive of VAT. ## **i. Pension costs** The charity has a defined contribution pension scheme. Employer contributions are charged to the statement of financial activities in the period to which they relate. ## **j. Financial instruments** The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. These are initially recognised at transaction value and subsequently valued at their settlement value. 43 ## **CITY YEAR UK** NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 ## 2. **GRANTS AND DONATIONS** |**Grants**
London
West Midlands
Greater Manchester
Central costs
**Other grants and donations**
Gala Dinner
Government Furlough grants
Government Kickstarter Scheme
Unrestricted
**Donations in Kind**
Staff training funded through
transfer of Apprenticeship Levy|**Unrestricted**
**£**
-
55,288
1,091,692
1,146,980
28,291
28,291
1,175,271|**Restricted**
**£**
291,516
238,619
54,886
67,079
652,100
-
62,688
714,788
-
714,788|**2022**
**Total**
**£**
291,516
238,619
54,888
67,079
652,100
55,288
-
62,688
1,091,692
1,861,768
28,291
28,291
1,890,059|**2021**
**Total**
**£**
75,000
209,995
17,000
147,800| |---|---|---|---|---| |||||449,795
12,000
118,232
24,543
906,462| |||||1,511,032| |||||31,305| |||||31,305| |||||| |||||1,542,337| There were £28,291 in value donations in kind during FY22 (FY21 £31,305). In addition to this, Akin Gump provided space to run our Leadership Development Programme for our London-based volunteer mentors on Fridays, generously giving us conference room space and breakout rooms. Bank of America generously underwrote the venue space at Tate Modern for our Gala dinner in June 2022. Credit Suisse generously underwrote space at The National Gallery for a celebration event in March 2022. Several of our funders restrict their giving either to a region or to a specific team of volunteers. We have grouped these together by region for reporting purposes and have separately shown any other restricted funds not refined by region, but by other purpose. 44 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## 3. **COMMERCIAL TRADING OPERATIONS AND INVESTMENT IN TRADING SUBSIDIARY** The wholly-owned trading subsidiary, City Year London Trading Limited, which was incorporated in the United Kingdom on 3 November 2010, operates all commercial trading operations carried out by the Charity. The Charity owns the entire issued share capital of 1 share with a nominal value of £1. A summary of the trading results is shown below: |**Summary Profit and Loss Account**
Turnover
Administration expenses
Management fee paid to parent charity
Profit before taxation
Tax
Retained earnings
Retained earnings brought forward
Gift Aid Donation to Parent Charity
Retained earnings carried forward
**Summary Balance Sheet**
Current Assets
Creditors: Amounts falling due within one year
Total Net Assets
Aggregate Share Capital and Reserves|**2022**
**Total**
**£**
96
(96)
(96)
-
(96)
152
-
56
**As at**
**31 July**
**2022**
**£**
1,432
1,375
57
57|**2021**
**Total**
**£**
188| |---|---|---| |||(188)| |||(188)
-| |||(188)
340
-| |||152| |||**As at**
**31 July**
**2021**
**£**
1,528
1,375| |||153| |||153| 45 ## **CITY YEAR UK** NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 ## 4. **TOTAL RESOURCES EXPENDED** |Direct Programme Staff
Non Programme Staff
Volunteer Expenses
Volunteer Recruitment- Salaries
Volunteer Recruitment- Other
Programme Costs
Training
Programme Design Consultancy
PPE & additional equipment to support home
working due to Covid-19
Property & Maintenance
Staff Recruitment
IT & Telecoms
Staff Travel & Accommodation
Communications
Legal & Professional
Other Overheads
Fundraising Events
Depreciation
Affiliation Fee
Reallocation of support Costs|**Cost of**
**Generating**
**Funds**
**Charitable**
**Expenditure**
**Support**
**Costs**
**2022**
**Total**
**2021**
**Total**
**£**
**£**
**£**
**£**
**£**
1,262,363
1,262,363
835,451
248,066
-
309,090
557,156
554,773
564,382
564,382
718,328
112,722
112,722
104,673
69,573
69,573
48,749
58,853
58,853
50,434
85,313
85,313
73,010
22,265
22,265
17,975
225
225
25,767
52,083
52,083
78,211
30,105
30,105
6,322
104,552
104,552
91,428
11,102
1,342
12,444
9,299
16,115
16,115
13,113
10,620
12,950
23,570
20,018
12,200
12,200
6,905
53,930
53,930
6,915
32,561
32,561
25,018| |---|---| ||301,996
2,223,829
544,587
3,070,412
2,686,389
544,587
(544,587)| ||301,996
2,768,415
-
3,070,412
2,686,389| 46 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## 5. **NET INCOMING RESOURCES FOR THE YEAR** |This is stated after charging/(crediting):
Depreciation
Operating lease charges – land & buildings
Auditors Remuneration
6.
**STAFF COSTS**
Salaries and Wages
Social Security Costs
Pension Costs
Redundancy costs|**Year Ended**
**31 July**
**2022**
**£**
10,620
1,737,489
132,034
51,967
10,750
1,932,240|**Year Ended**
**31 July**
**2021**
**£**
-
-
9,840| |---|---|---| |||1,320,410
125,951
47,442
-| |||1,493,803| Employees who received benefits, excluding pension contributions in excess of £60,000 during the current period: |||**No.**||**No.**|| |---|---|---|---|---|---| |£60,000|to £70,000||||-| |£70,001|to £80,000||1||1| |£80,001|to £100,000||2||2| The average number of employees during the year was as follows: |Programme Staff
UK Year of Service: School Service Leaders
Fundraising, Administration and Support|**No.**
28
22
19
69|**No.**
29
-
16| |---|---|---| |||45| The charity has a defined contribution pension scheme for its employees. Since 1 April 2017 the charity has operated this on an auto enrolment basis. In the current year contributions were paid on behalf of 52 employees (2021:34). As at the year end, £8,105 was outstanding (2021: £8,056). 47 **CITY YEAR UK** NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 ## 7. **KEY MANAGEMENT PERSONNEL** The key management personnel of the Charity are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any trustee of the entity. For City Year UK they comprise the Trustees and senior management team. The total employee benefits, including employer pension contributions, payable to key management personnel during the year amounted to £268,250 (2021: £278,465). ## 8. **TRUSTEE REMUNERATION AND RELATED PARTY TRANSACTIONS** None of the Trustees received any remuneration or were reimbursed expenses during the period (2021: none). The following Trustees also have senior roles with some of the charity’s key funders: Joseph Knoll Managing Director, Towerbrook Patrick Flaherty Managing Director of Credit Suisse, Global Markets Division Matthew Davies Managing Director, Treasury Services, Global Banking Markets, Bank of America We received £322,148 (2021: £200,000) from Credit Suisse, £79,011 (2021: £65,709) from Bank of America, £16,469 from Towerbrook (2021-£25,000). There were no amounts due to or from these funders at the year end. Nine Trustees also made personal donations to the charity during the year which amounted to £61,798 in total (2021: Five Trustees totalling £37,500). Trustees, James Balfanz, AnnMaura Connolly and Stephanie Wu are also the Chief Executive Officer, Chief External Engagement, Policy and International Officer/EVP and Chief Transformation Officer of City Year Inc, respectively. City Year UK has an affiliation agreement with City Year Inc. under the terms of which the schools’ programme operates. ## 9. **TAXATION** As a charity City Year UK is exempt from tax on income and gains to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity in the current period. 48 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## 10. **INVESTMENTS** ||**As at**||**As at**|| |---|---|---|---|---| ||**31 July 2022**||**31 July 2021**|| ||**£**||**£**|| |Investment in unquoted subsidiary undertaking||||| |At cost||£1||£1| See note 3 for further information. ## 11. **DEBTORS** |Due from Group Undertaking
Trade Debtors
Accrued Income
Other Debtors
Prepayments|**As at**
**31 July 2022**
**£**
1,375
190,943
71,500
2,579
27,839
294,236|**As at**
**31 July 2021**
**£**
1,375
21,098
29,583
26,606
35,818| |---|---|---| |||114,480| ## 12. **CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Trade Creditors
Taxes and Social Security
Other Creditors
Accruals and Deferred Income|**As at**
**31 July 2022**
**£**
32,012
37,089
9,105
119,236
197,442|**As at**
**31 July 2021**
**£**
56,300
34,198
24,507
172,520| |---|---|---| |||287,525| 49 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## 13. **MOVEMENTS IN FUNDS** |**Restricted Funds:**
London
West Midlands
Greater
Manchester
Central Costs
**Unrestricted**
**funds:**
General Funds
**Restricted Funds:**
London
West Midlands
Greater
Manchester
Central Costs
**Unrestricted**
**funds:**
General Funds
Parent|**At**
**1 August 2021**
**Incoming**
**Resources**
**Outgoing**
**Resources**
**Transfers**
**At 31 July**
**2022**
**£**
**£**
**£**
**£**
**£**
-
291,516
(291,516)
-
-
238,619
(238,619)
-
-
54,886
(54,886)
-
-
129,767
(129,767)
-| |---|---| ||-
714,788
(714,788)
-
-| ||393,847
2,389,069
(2,355,623)
427,292| ||393,847
3,103,856
(3,070,411)
427,292| ||**At**
**1 August 2020**
**Incoming**
**Resources**
**Outgoing**
**Resources**
**Transfers**
**At 31 July**
**2021**
**£**
**£**
**£**
**£**
**£**
-
75,000
(75,000)
-
-
209,995
(209,995)
-
-
17,000
(17,000)
-
-
290,575
(290,575)
-| ||-
592,570
(592,570)
-
-| ||311,628
2,176,038
(2,093,819)
393,847| ||311,628
2,768,608
(2,686,389)
393,847| Restricted funds: The application of these funds is subject to restrictions imposed by the funders with the grants available being allocated to certain categories of payroll and administration costs or to specific activities or events as specified in the grant agreements. 50 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 ## **CITY YEAR UK** ## 14. **ANALYSIS OF NET ASSETS BETWEEN FUNDS** |Fixed Assets
Net Current Assets
Net Assets at 31 July 2022|**General**
**Funds**
**Restricted**
**Funds**
**Total Funds**
**£**
**£**
**£**
1
-
1
427,291
-
427,291| |---|---| ||427,292
£-
427,292| For comparative period: |Fixed Assets
Net Current Assets
Net Assets at 31 July 2021|**General**
**Funds**
**Restricted**
**Funds**
**Total Funds**
**£**
**£**
**£**
1
-
1
393,846
-
393,846| |---|---| ||393,847
£-
393,847| 51 ## **Contact us** London (Headquarters) City Year UK 200a Pentonville Road London N1 9JP 020 7014 2680 /cityyearuk Other Offices: Greater Manchester, West Midlands cityyear.org.uk info@cityyear.org.uk City Year UK is a registered charity (1131350) and company registered in England and Wales (06965846)