OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

i |

Mahdlo (Oldham Youth Zone) {a company timited by guarantee and not having a share capital)

FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

Company number: 06946098 Registered Charity Number: 1134427

|

|

WRIGLEY PARTINGTON Chartered Accountants Sterling House 501 Middleton Road Chadderton Okdham OL9 SLY

| :

|

| |

|

! ,

Mahdio (OldhamYouth Zone)

CONTENTS

SR

----- Start of picture text -----
|||||| |---|---|---|---|---| |Page|No.| |Reference and Administrative|information|4| |Trustees|Report|2-9| |Auditors|Report|10-12| |Statement|of|Financial|Activitles|13| |Balance Sheet|14| |Statement|of|Cash|Flows|15| |Notes to the Financial Statements|16 - 26|

----- End of picture text -----

| : | | |

|

: |

| :

2

| | | | :

NMahdlo (OldhamYouth Zone)

Reference and Administrative Information

nr nr eed
President: SirNorman StollerCBEKStJDL
Trustees atdate report approved: ChristopherWareing (Chair)
John Alnlay
KashifAshraf
Dave Benstead
StephanieA Boishaw
Ann Ashton (Appointed 29.06.21)
Janelle M Barker
Adam J Poyner (appointed 25.05.21)
TerryFlanagan
Andrew Milnes
Jonathan Lloyd
OtherTrusteeswhoserved during year: — Lindsay Walsh (resigned 25.05.21)
KathrynA Morley (resigned 25.05.21)
ChiefExecutive (interim): Lucy Lees
Registered Office: Egerton Street
Oldham
OL1 3SE
Business address: Egerton Street
Oldham
OL1 3SE
Auditors: Wiigley Partington
Sterling House
501 Middleton Road
Chadderton
Oldham
OL9SLY
Bankers: Natwest
10 Yorkshire Street
Oldham
OL1 1QT
Company number: 06946098
RegisteredCharitynumber: 1134427

----- Start of picture text -----
l
----- End of picture text -----

1

: : : |

Mahdlo (Oldham Youth Zone)

Trustees Report for the year ended 31 March 2021

The Trustees, who are also Directors for the purpose of company law, present thelr report and the financial statements of the charity for the year ended 31° March 2021. The provisions of the Statement of Recommended Practice “Accounting and Reporting by Charities* (SORP (FRS102)} have been adopted in preparing the annual report and financial statements of the charity.

Objectives and Activities

The charitable objectives as set out in the Memorandum and Articles are “to help and educate children in the North West of England through thelr leisure time activitles by promoting their full physical and spiritual potential in order that they may grow to full maturity as individuals and members of society and that their conditions of [Ife may improve”.

Our mission fs "to defiver high quality activities and experiences for young peopte from Oldham aged 8-19 (25 with a disability) to enhance the quality of their lives and provide support services for those who need additional help to achieve their potential”

We achleve this through our 6 programme areas:

Get Active~ Young people's participation in a wide range of sports and physical activities at a ‘try, train or team’ fevel that promote good health, fitness and bulld self-esteem. Get Creative —Utilising the specialist dance studlo, music room and media suite young people can engage In a broad range of arts and media opportunities that develop creativity skills and confidence. Get Outdoors — We give young people the chance to get out of their usual neighbourhood, experience outdoor adventure and reconnect with the environment promoting confidence, teamwork and social skllls.

Get Sorted— Young people are able to access support around personal health and wellbeing issues. We link with existing services in the town to ensure we are supporting young people to access the information advice and guidance they really need. Through one-to-ones and group workshops we promote healthy minds, lifestyles and positive chotces. Get Ahead -- We recognise that gettIng the right skills and support is key to getting ahead, With the help of partners and local busInesses our team support young peopie to get on the right path for the future. Get Connected~ We want young people to play a real role in the running of Mahdio and to have a clear and coherent voice in the wider community. We support them to be more connected through community projects and volunteering opportunitles that promote ciflzenshlp and leadership skills.

The activities of the charity are undertaken to further Its charitable purposes for public benefit and, in shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit, Including the guidance “public benefit: running a charity (PB2)".

The provision of a high quality facility for young people responds to a clear, ongoing demand from young people, parents and the wider community for more and better places for young people to go. Our unlversal services, mainly based around our Get Active, Get Creative and Get Outdoors offer, are open to all young people in Oldham. For those experiencing disadvantage or needing additional support we offer additlona! targeted services. Short term outcomes are happier young people making healthier cholces with Increased social skills, achlevements and enhanced aspirations. This has the wider impact of improved health and wellbeing, reduced crime, enhanced learning and employabllity and greater community cohesion,

| | |

Structure, Governance and Management Mahdlo (Oldham Youth Zone) Is a charity and a company limited by guarantee without share capital. Mahdlo is registered under the Companies Act 1985, registration number 06946098. The company is

2

;

:

|

governed by its Memorandum and Articles of Association, dated 27" June 2009, Management of the company’s affairs Is vested in the co-directors.

in the event of a winding-up, the present members and those who have ceased to be a member within one year of such an event have guaranteed the liabilities of the company to the sum not exceeding one pound each.

Organisational Structure

Mahdlo is governed by its board of Trustees which retains overall responsibility for the strategic direction and the policy of the organisation. The Trustees carry the ultimate responsiblilty for the conduct of Mahdlo and for ensuring that the charity satisfies Its legal and contractual obligations.

The Board approves the strategie plan and annual Business Pian and scrutInises business performance including financial performance as well as providing advice to the Chief Executive on operational matters of importance.

A Chief Executive is appointed by the Board to manage the day-to-day operations. To facliitate effective operations the Chief Executive has delegated authority as approved by the Board for operational matters Including finance, human resources and operational delivery allowing the Chief Executive to support the Board in developing and delivering strategy and ensuring the agreed Business Plan KPI's are met.

The senior management team has a range of qualifications and experiences including Accountancy, Youth Work, HR and Facilities management. The Board agreed the structure during annual Business Planning and are required to approve any substantial changes to the Senlor Team.

All salaries are benchmarked by a retained Independent HR specialist against other Youth Zones, Local Authority and the local labour market. The board agrees all pay increases as a result of cost of living during the Business Planning cycle. Any new post created at any level requires CEO, HR and Finance approval. Senlor posts would be agreed by the Trustee with HR portfolio prior to presentation to Board.

All posts are subject to Interview and are advertised internally and/or externally,

Mahdio Is part of the family of youth zones established by OnSide. We have a network agreement with OnSide which allows us to be part of a large, trusted youth organisation which has the ability to lobby government and access support from large funders and share best practice within the network. A representative of OnSide operates as a Trustee on the Mahdlo Board ensuring a strategic communications link exists between Mahdio and OnSide.

The Board of Trustees

The Board comprises 11 Trustees Including the Chalr and a President. Individual Trustees hold portfolios relevant to their professtonal backgrounds and interests. These include Finance, Fundraising, HR, Safeguarding and Faclilties management.

Trustees can be nominated for a fixed period of time. One third of the Directors will retire by rotation at each Annual! General Meeting. Retiring Directors can be reappointed.

The Trustees meet on a monthly basis.

Recruitment and Appointment of Trustees

New trustees will be recruited according to the needs of the charity and the suitability of possible candidates, The unanimous approval of existing Trustees would lead to their appolntment,

The Memorandum and Articles of Association state that the number of members shall have no maximum and shall not be Jess than three.

3

|

|

| =:

| | |

Full detalis of the rules are contained in the company's Memorandum and Articles of Association which may be inspected at the registered office.

Induction of Trustees

Newly appointed trustees are provided with a comprehensive induction to Mahdlo through the provision of in-house training. This includes key information about the organisation and its development, governance and safeguarding. The Board undertakes annual strategy reviews. Individual appraisals between Trustees, the Chair and Chief Executive have been implemented to develop Board capacity,

Financial Review

; The statement of financial activities (page 13) shows a reduction In income, from £2,9m for FY¥2020 to £2,4m for FY2021 because of the covid pandemic. Further details of the various Income sources can be found in notes 2 to 6 of the financial statements. Expenditure has also reduced however, resulting in a surplus for the year of £88 1k (2020: £926k), of which £87k was restricted and £794k unrestricted, which in the circumstances we are pleased with.

The balance sheet (page 14) shows the net assets of the charity to have Increased from £5.8m as at 31 March 2020 to £6.7m as at 31 March 2021. Of that amount, £5.8m are restricted funds and £0.9m unrestricted,

Risk Management

The Board fully accepts Its responsibllities under the Charity Commission's Statement of Recommended Practice (SORP). The Trustees have considered the major risks to whlch the charity is exposed and are committed to ensuring these are effectively managed.

The Chief Executive and senlor managers have undertaken comprehensive risk assessments and established risk registers frorn an organisational and operational perspective and have established suitable risk management and control procedures which are reviewed regularly by the Board.

Key risks to the organisation Include Financial, Reputational, Regulatory and Operational.

The Risk Register is updated quarterly and reported to Board with major risks highllghted and contro! measures discussed, Comprehensive financial accounts Including cash flow, I&E and the Balance sheet are reported to Board monthly,

The Key financial risks relate to funding shortfalls and uncontrolled expenditure. As with most charitles, developing sustainable funding streams in order to deliver Mahdlo's objectives is of paramount importance. The overall strategy Is to balance rastricted funding from specific projects and grants with unrestricted funds primarily from Patrons, Donors and fundraising events. In the longer term, a key objective is to develop commerclally viable income streams, which will underpin core delivery.

Expenditure is tightly managed with operational managers responsible for budgets relating to their operational responsibilittes. Costs monitored and managed by the CEO and the senior management team using the organisations centralised staff management system.

| | |

|

Regulatory risk is the responsibility of the CEO, Finance manager and Facllities manager who manages Health and Safety and Fire and other statutory risk areas. The Board is appolnted and reviewed within the context of Charltles Commission guidellnes, and new regulatory Judgements will be reported to Board as required.

The key operational risks are managed through operational risk planning with a clear hierarchy of responsibility. Specific procedures exist to manage Safeguarding and Health and Safety.

4

:

|| | !

Reserves Policy

The Board of Directors of Mahdlo has established a reserves policy, in compliance with which it will annually review both the sum it wishes to hold {n reserve In the unrestricted budget and the basis for that figure. The Directors continually strive to manage the charity’s finances so that an adequate level of reserves can be maintained In compliance with the reserves policy.

This tevel of reserves has been agreed for the following reasons:

Due to the type of funding Mahdio can and Is likely to access can take up to 6 months to secure, there fs a need for a longer term policy to Increase reserves to an appropriate amount of working capital to fund these time delays. This will be achleved by:

This reserves policy will be reviewed by the Chief Executive and the Board on an annual basis. It [s the intention to increase reserve levels incrementally toward 6 months as the organisation's activity grows.

Investment Policy

With having relatively low unrestricted reserves and a variable income stream, funds built up in advance of expenditure need to ba reasonably liquid; however, some funds may be retained and invested for future use. To ensure such Investments are safeguarded:

5

!

| '

Key Achievements in 2020/2021

The overwhelming spirit of our community has provided a strength that has pulled our team and the people Wwe support through the last 12 months, making our contribution so much more valuable.

For many families across Oldham, thls year has been incredibly tough, taking a significant toll on the health and wellbeing of young people. Being there for our community has been our number one priority, and whilst we could not provide our normal service, Mahdlo committed to extend its efforts to help those struggling during the pandemic,

Durlng the pandemic, Mahdto continued to support around 2,000 members. Throughout the year we had 18,739 session visits working with 8,485 young people. The charity provided remote support through online interactions and phone calls, as well as home visits across the borough of Oldham to support vulnerable young people and families.

Lockdown saw Mahdlo adapt to change how it supported young people, moving sessions online and finding new ways to keep them engaged. To keep our offer as relevant as possible, we launched a new TikTok account, becoming one of the first OnSide Youth Zones to do so. We started to build a following with fun videos from the team, showing behind the scenes and at home, as we Jumped in with challenges, duets and viral dances.

Throughout the pandemic we delivered 148 one to one sessions that required more intense support. We delivered 311 outreach session in the communities across the borough.

The pandemic created a shift In the way we have been able to deliver youth work. With many community venues shut or at limited bullding capacity, our District Team put their concentration into delivering outreach. This provided a unique opportunity for regular interaction with familles and young people in their communities, giving a more rounded picture of what the dally challenges were.

As a result the Team was able to tailor its offer to deliver:

This year the OnSide Network President’s Cup took place as a virtual competition, encouraging young people to compete in a series of online challenges over a period of 4 weeks in a bid to battle the boredom of lockdown isolation, From celebrity Judges to amazing challenges and of course awesome submisslons from Mahdlo members, It was great to see the Network come together.

A staggering £51,260 was raised through a unique campalgn delivered last year, where a group of loyal friends pledged to match every £1 donated by the local community. From mountalns climbed to bake sales and half marathons being completed in gardens, the money raised was put fowards helping young people “Get Back In the Zone” and access the activities and support they vitally needed, It also enabled us to replace our much-loved minibus that was stolen last year.

6

j : : : | |

Another focus during the pandemic was to support families and young people who were struggling to put food on the table, after our ‘Don't Ga Hungry This Half Term’ campaign in October was so welt recelved, Mahdio pledged to provide packed lunches to Oldham's young people during every school holiday for the remainder of the academic year.

To date 2,500 packed lunches have been distributed during the school halidays:

"We cannot thank you enough for all you have done over the past few weeks, Our families were so grateful, and your impact did not go unnoticed throughout our community.” ~ Shan Potts, Holy Rosary School.

397 Christmas hampers were given out locally, benefitting 2,200 people

"Thank you 60 much for your hamper. It’s just lovely. it's the lite kindnesses that have the biggest Impact on people right now.” — Parent of Mahdio member

Over 496 food parcels containing over 13,600 meals and 600 breakfast and meal pots at the weekends have been shared

"On Friday | received a food parcel from you.... I'd Just like to say it's greatly appreciated. This year I’ve been furloughed and then had my hours cut at work. We're really struggling at the moment and your food parcel has really raised our spirits. It's so different this year as every year | donate to food banks and usually a charity, but to be on the recelving end has been hard for me, but from the bottom of our hearts thank you. Now my son has a present fo open on Christmas morning and food in the cupboard. Thank you so much to everyone involved for their generosity and kindness.” Parent

Last year we were able to secure an internship for a young person on our Get a Job programme with Manchester Camerata — the award-winning orchestra — that delivered amazing results, despite being in lockdown. Being part of this fantastic experiance has seen the young person's confidence, ambition and entrepreneurial spirit grow,

“t Have to be Patiant’ is an inspirational muslc video, created as part of the project: Positive Oldham Music Cultures, which started in late 2019. Funded by the Heritage Lottery, the aim of the project was to promote cohesion and better understandIng of diversity through music. "

Young people from a mlx of backgrounds across Oldham were given access fo practical music and musical heritage actlvities. Due to COVID the project had to be redesigned with lots of “Mahdio at Home” elements. A partnarship with the Royal Northern College of Music (RNCM) was created, which was originally intended to be vocal lessons became the development of three orlgina! songs. These songs wera developed by RNCM and a gospel artlst, introducing the young people to aspects of song writing and gospel structure composition.

“| Have to be Patient” is one of those tracks| This song in partlcular cemented the bond between four diverse members through lockdown, develaping their skills, thelr knowledge and their friendships.

A unique production entitled; ‘As Time Goes By‘ has been created by the Mahdlo Ability Productions Group. Shaped by the pandemic and personal loss, this creation has pushed the group to develop thelr skills in a way that they haven't encountered before. The focus is about creating a world where no-one wants to touch anyone or go outside. This is a very poignant piece and as It's been produced, we got the chance to catch up backstage with the Group to talk about the project and their experiences throughout lackdown, which have ultimately shaped the production.

The Mahdlo family lost a dear friend and faithful colleague, Mike Doran, our Chief Executive. The loss has been felt by many, but Mike's memory remains strong within the Youth Zone culture of excellence, which he spearheaded. Tightly interwoven within the fabric of our service offer for young people, we live and breathe his values of: Passion, Respect, Innovation, Dependabillty and Excellence.

7

| |

Plans for the future

The board of trustees and the team have develaped our strategic plan for 2021 — 2025. As we continue to strive for excellence for youth-led provision in Oldham, our strategy will focus on the abllity to:

Looking to the future there will be a drive to remobllise our service delivery, increasing membership while continuing to maintain the focus of the strategy to ensure that the offer remains attractive to young people and that the level of retention continues to improve. Membership now stands at 2,183, which is less than the previous year, but the focus has been to support our most vulnerable young people. Within the business plan, we have made action plans to increase membership and regular attendance, working towards pre COVID statistics.

in order to demonstrate our impact and secure financlai investment we aim to develop and embed effective systems and processes to monitor and evaluate our work, delivering training to the whole team.

In order to ensure financial sustainability, we aim to establish a diverse range of income streams and embed an Innovative approach to Income generation. Throughout the year we alm to dellver 4 community campalgns, bringing in more funds through community fundraising as well as raising our profile as a charity.

To ensure we can deliver on all of the above plans, having a strong, happy workforce is essential. Throughout the year we aim to encourage a healthy workforce through various different methods including the Introduction of a new employee benefit, promoting free use of the onsite gym and reminding team members of our Medicash health care benefit.

Trustees’ Responsibilities

The charlty’s Trustees are responsible for preparing the Annual Report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company law requires the charlty’s Trustees to prepare financial statements for each financial year that give a true and fair view of the state of the charity's incoming resources and applications of resources during the year and of its state of affairs at the end of the year. In preparing those financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enables them to ensure that the financial statements comply with the Companles Act 2006. The Trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detectlon of fraud and other Irregularities.

8

: :

Statement as to disclosure to our auditors

{n so far as the trustees are aware at the time of approving thls report:

Compliance with accounting standards

The Trustees confirm that the financial statements comply with current statutory requirements, the requirements of the Company’s Memorandum and Articles of Association and the requirements of the Charities SORP (FRS102).

This report has been prepared in accordance with the Statement of Recommended Practice - Accounting and reporting by Charities and In accordance with the special provisions of Part VII of the Companies Act 2006 relating to small companies.

This report was approved by the Board of Directors at the Annual General Meeting on 30th November 2021 and signed on behalf of the board by:

----- Start of picture text -----
‘Chris Warelng
----- End of picture text -----

Chalr of the Board

9

| i

|

: : , | | : | | |

.

Mahdio (Oldham Youth Zone) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAHDLO (OLDHAM YOUTH ZONE) A A i tS neh Psy hppa

Opinion

We have audited the financial statements of Mahdlo (Oldham Youth Zone) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Siatement 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 thelr preparation Is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basi for opinion

We conducted our audit In accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable jaw. Our responsibllitles under those standards are further described In the Auditor's rasponsibilities for the audit of the financial statements section of our report, We are independent of the charitable company in accordance with the athical 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 responsiblilties 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.

Conctusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting In the preparation of the financlat 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 golng concern for a perlod of at feast twelve months from when the financial statements are authorised for issue.

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

Other Information The other information comprises the information in the annual report, other than tha financial statements and our auditor's report thereon, The trustees are responsible for the other Information. Our opinion on the financial statements does nol cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing 80, consider whether ihe other information Is materially Inconsistent with the financlal statements or our knowledge obtained In the audit or otherwise appears to be materially misstated. lf we identify such material inconsistencies or apparent misstatements, we are required to determine whether there is a material misstatement In the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there ig a material misstatement of this other Information, we are required to raport that fact.

|

We have nothing to report in this regard,

Opinions on other matter prescribed by the Companles Act 2008. {n our opinion, based on the work undertaken In the course of the audit:

10

:

;

| |

Mahdlo (Oldham Youth Zone)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAHDLO (OLDHAM YOUTH ZONE) (continued)

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 relatlon to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement set out on page 8, the fustees (who are also the directors of the charltable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfled 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 flnancial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the trustees either intend to Ilquidate 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 ls 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 coufd 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-compllance 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:

11

|

| :

Mahdlo (Oldham Youth Zone}

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAHDLO (OLDHAM YOUTH ZONE) (continued)

Based on our understanding of the charitable company, we identified that the principal risks of non-compliance related to those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006 and the Charities SORP (FRS 102). We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (Including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates. Appropriate audit procedures were performed to address those risks including testing journal entries and challenging assumptions and judgements made by management in thelr significant accounting estimates. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, 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 auditors’ 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 charltable company and the charitable company's members as a body, for our audit work, for thls report, or for the opinions we have formed,

.

David Ducie (Senjor statutory auditor) For and on behalf of Wrigley Partington Chartered Accountants and Statutory Auditor

----- Start of picture text -----
Date: | Uf fh camber rar
----- End of picture text -----

Sterling House 501 Middleton Road Chadderton Oldham OL9 SLY

12

:

:

: : | |

Mahdlo (Oldham Youth Zone)

STATEMENT OF FINANGIAL ACTIVITIES ‘ (including income and expenditure account) : YEAR ENDED 31 MARCH 2021

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |2021|2020| |Unrestricted|Restricted|Unrestricted|Restricted| |Note|Funds|Funds|Total|Funds|Funds|Total| |£|£|£|£|£|£| |INCOME| |Donations|and legacies|2|962,582|633,343|1,595,025|634,384|1,333,032|1,967,416| |Charltable|activities:| |Delivery|income|3|25,294|407,138|A32,432|204,148|668,933|873,084| |Other trading|activities:| |Fundralsing|events|4|5,484|-|5,484|70,479|-|70,479| |investment income|5|157|-|157|1,163|-|1,163| |Other income|6|345,690|500|346,199|26,072|4,868|30,940| |Total|incoming|resources|4,339,216|1,040,981|2,380,197|$36,246|2,006,833|2,943,079| |EXPENDITURE| |Raising funds|7|78,631|-|78,634|113,298|-|113,298| |Charitable|activities:| |Youth|projects and|activities|7|433,819|953,690|1,387,509|41,097,401|764,372|1,861,773| |Governance|7|32,946|-|32,946|41,744|-|41,744| |Total|expenditure|7|845,396|953,690|1,499,086|1,262,443|764,372|2,016,815| |Net (outgoing)|Incoming|resources| |before|other recognised|gains|and|losses|793,820|87,291|881,111|(316,197)|1,242,464|926,264| |Other recognised gains and losses|-|-|.|-|-|-| |Net movement|in|funds|793,820|87,291|881,141|(316,197)|1,242,464|926,264| |Reconciliation|of funds| |Total|funds|brought|forward|146,418|5,687,755|6,834,173|462,815|4,445,294|4,907,909| |Total funds carried forward|19|940,238|5,775,046|6,715,284|146,418|5,687,766|§,834,173|

----- End of picture text -----

|

Allincoming resources and rasources expended are darived from continuing activiltes.

The accompanying notes are an integral part of this statement of financial activilies,

43

|

,

|

Mahdio (Oldham Youth Zone)

BALANCE SHEET : AS AT 31 MARCH 2021

,

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Note|2021|2020| |£|£| |FIXED|ASSETS| |Tangible|assets|12|5,884,656|5,791,768| |Total|fixed|assets|§,884,656|5,791,768| |CURRENT ASSETS| |Stock|13|-|1,501| |Debtors|14|562,582|140,246| |Cash|at bank|and|in|hand|15|675,897|322,608| |Total|current assets|1,238,479|464,355| |LIABILITIES:| |Creditors|falling|due|within|one|year|16|407,851|421,950| |Nef current assets|830,628|42,405| |Net assets|20|8,715,284|5,834,173| |THE|FUNDS|OF|THE|CHARITY| |Restricted incoine|funds|19|5,775,046|5,687,755| |Unrestricted funds|19|940,238|146,418| |Total|charity funds|19|6,716,284|6,834,173|

----- End of picture text -----

These accounts have been prepared In accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The NOEU sue by the board on 30th November 2021 and signed on its behalf by BARR Trustee/Director A Milnes Registration number 06946098

The accompanying notes are an integral part of thls balance sheet,

14

|

i | :

.

|

| | |

Mahdlo (Oldham Youth Zone)

STATEMENT OF CASH FLOWS : YEAR ENDED 31 MARCH 2021
Note 2021 2020
Cash used in operating activities 24 586,335 1,181,050
Cash flowsfrom investing activities
interast Income 157 1,163
Purchase oftangible fixed assets (244,823) (1,438,587)
Sale of tangibleflxed assets 11,620 -
Cash provided by (used in)investing activities ~(233,046) (1,437,424)
increase/(decrease) In cash and cash equivalents
in the year 353,289 (256,374)
Cash and cash equivalents at the beginning of the year 322,608 578,982
Totalcash and cash equivalents attheend ofthe year "675,807.
897		 ~~329608

----- Start of picture text -----
|
----- End of picture text -----

|

15

| | | | : i :

: | : | | ! | | | | ]

Mahdlo (Oldham Youth Zone)

NOTES TO THE FINANCIAL STATEMENTS

: YEAR ENDED 31 MARCH 2024

1 Accounting policies The principal accounting policles adopted, judgements and key sources of estimation uncertainty in the preparation of the financlal statements are as follows: a} Basis of preparation The financial statements have been prepared in accordance with Accounting and Reporting by charities: Statement of Recommended Practica applicable to charlties preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP {FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006,

Mahdio (Oldham Youth Zone) meets the definitlon of a public benefit entity under FRS 102. Assets and liabilitles are initially recognised at historic cost or transaction value unless otherwise stated In the relevant accounting policy nota(s).

c) Income recognition policies Items of income are recognised and included in the accounts when the charity Is legally entitled to the Income, any performance conditions attached to the item(s) of income have been met or are fully within the control of the charity, there fs sufficient certainty that recelpt of the income is considered probable and the amount can be measured rellably. The following specific policles apply to categories of income: Grants for core funding, which do not impose performance related conditions, are recognised when received. Grants towards specific project costs are recognised based on the performance model, as the project is delivered. Income relating to contracts Is deferred where the services have only been partially performed at the year end. Investment income {s recognised on @ receivable basis. d) Donated services and facilities Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated Item have been met, the receipt of the economic benefit from the use by the charity of the item Is probable and that economic benefit can be measured reliably. On recelpt, donated services and facilities are recognised on the basis of the value of the gift to the charity which Is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount Js then recognised in expanditure in the period of recelot.

e) Pensions The charity operates a defined contribution pension scheme. The annual contributions . payable are charged to the SOFA In the year to which they relate. The assets of the scheme are held independently from those of the Charity.

16

: YEAR ENDED 31 MARCH 2021

: : :

| :

Mahdio (Oldham Youth Zone}

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting policies continued

f) Resources expended Expenditure is recognised once there Is a legal or constructive obligation to make a payment to a third party, it ls probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under headings that aggragate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis (eg. number of employees or estimated usage). Expenditure is classified under the following activity headings: - Costs of raising funds are those costs incurred in trading activities that ralse funds. - Charltable expenditure comprises those costs Incurred by the charity in the delivery of Its activitles and services, and inciude both the direct costs and support costs relating to these activities.

~ Governance costs, which are Included within charitable activities, Include those costs associated with meeting the constitutional and statutory requirements of the charity and includé the audit fees and costs Inked to the strategic management of the charity.

g) lrrecoverable VAT

h) Operating leases

Long leasehold property 2% Straight line Properly bulfding works 10% Straight IIne Club equipment 33.3% Straight line Office and electrical equipment 33.3% Straight line Furniture and fittings 33.3% Straight line Motor vehicles 25% Straight lIne

Restricted funds are funds subject to restrictions imposed by the donor or by the specific terms of the appeal under which the funds are raised.

Designated funds comprise unrestricted funds that have been put aside at the discretion of the trustees/directors for particular purposes.

17

Mahdlo (Oidham Youth Zone)

: YEAR ENDED 31 MARCH 2021

!

| : : | |

OO

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting policies continued

k) Taxation

1) Holiday pay

The holiday year end does not coincide with the financlal year end and consequently, provision is made in the accounts for holidays accrued but not taken as at the end of the financtal year.

m) Debtors

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

n) Cash at bank and in hand

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

0) Creditors and provisions

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

p) Assessment of going concern

The trustees consider that there are no material uncertalnties about the charity's ability to continue as a going concern and the accounts have been drawn up on the going concern basis which assumes that the charity will continue in operation for the forseeable future.

q) Financial instruments

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

18

:

|

| | | |

Mahdlo (Oldham Youth Zone)

NOTES TO THE FINANCIAL STATEMENTS

NOTES NOTES TO THETHE FINANCIAL STATEMENTS : YEAR ENDED 31 MARCH YEAR ENDED 31 MARCH 2021 2021
Unrestricted Restricted Total Total
2021 2021 2021 2020
£ £ £ £
2 Income from donations and legacies
Patronsprogrammeanddonations 554,517 197,267 751,784 1,856,814
DCMS grant re: Community Match
Challenge project - 436,076 436,076 -
GiftAid recoverable 8,065 - 8,085 10,602
Legacies - - - -
Local authority grants 400,000 ~ 400,000 400,000
962,582 633,343 1,595,925 1,967,416
3 Income from charitable activities
Deliveryincome:
Performance related grants (project funding) ~ 407,138 407,138 668,933
Service level agreements
Café and refreshments
Facillty hire		 12,800
(418)
6,904		 -
.
-		 12,800
(418)
6,904		 34,854
58,945
58,958
Membership, fees and sale ofgoods 6,008 - 6,008 51,394
25,204
407,138
SSE		 432,432 873,084
4 Incomefromothertradingactivities
Fundraising events		 §,484 . 5,484 70,479
5 484 : 5404 7047S
5 Investment income
Bank deposit interest 157 - 157 4,163
157
-
157
4,163
—eaaoaoaoaoaeaeee———————————————————————
6 Other income
Coronavirus Job retention scheme grant 325,936 - 325,936 7,954
Profiton fixed asset disposal 41,620 - 11,620 -
OtherIncome 8,143 500 8,643 22,986
345,699 500 346,199 30,940
19

: :

|

.

| | ] { |

Mahdlo (Oldham Youth Zone)

NOTES TO THE FINANCIAL STATEMENTS : YEAR ENDED 31 MARCH 2021

7 Expenditure

Charitable activities Charitable activities
g :
Ralsingfunds > & 8 8 Total Total
2021 2020
£ £ £ E £
Costs directlyalfocated to activities
Staff costs 70,602 828,210 - 898,812 1,183,876
Recrultmentand employee costs . 5,463 - §,463 18,761
Rent and property costs - 118,163 - 118,163 148,527
Stationery and administration - 8,207 . 8,207 16,322
Printing, promotions, advertising and publilcity 4,943 11,534 - 16,477 19,145
Telephone, data communication and computer - 37,562 - 37,562 31,256
Professional services - - - - -
Depreclatlon - 136,742 - 136,742 97,081
Loss on fixed asset disposal - - - 663
Project delivery costs - 88,918 - 88,918 162,606
Catering - 9,647 - 9,647 55,724
Bad debts “ - - - 14,798
Fundralsing 3,086 - - 3,086 31,099
78,631 1,244,446 ~ 1,323,077 1,778,868
Supportcosts
Staff costs - 90,393 24,146 114,539 158,555
Recruitment andemployeecosts
Rent and property costs		 -
~		 1,366
13,129		 “
-		 1,366
13,129		 4,680
16,503
Stationery and administration - 911 - 914 1,702
Telephone, data communication and computer - 12,521 - 12,521 10,418
Professional services . 8,226 . 8,226 26,300
Audit - 8,800 8,800 8313
Depreciation - 15,184 “ 15,194 10,787
Loss on fixed asset disposal - - - 74
Bank charges - 4,323 - 1,323 615
- 143,063 32,946 176,009 237,957
Totalexpenditure 78,634 1,387,509 32,946 1,499,086 2,016,815

Support costs have been apportioned using numbers of people per area of activity, or on a basis which Is considered consistent with the use of the resources.

20

|

:

: | | |

Mahdlo (Oldham Youth Zone)

NOTES TO THE FINANCIAL STATEMENTS

: YEAR ENDED 31 MARCH 2021

Total Total
2021 2020
8 Staffcosts £ £
Total staffsemotuments for theyearwere as follows:
Salaries 936,160 1,230,147
National Insurance 57,927 82,464
Pension 19,264 29,850
9 Staffnumbers
The average monthly head countwas 79 staff (2020: 93) and the average monthly
numberof full-time equivalent employees during theyearwere as follows:
2021 2020
Charitable activities Number
30		 Number
46
Generating funds 4 2
Administration and support 4 5
Govemance 4 {
Notrusteeswerepald orreimbursedexpensesduringtheyear.
Thecompany considers Itskeymanagementpersonne! to comprisethe trustees		 and the chiefexecutive
officer, The total employment benefits excluding employer pension contributions of the keymanagement
personnel were £48,574 (2020: £69,000).
The number ofemployeeswhose total employee benefits exceeded £60,000
were as follows: 2021 2020
£60,001 to £70,000 Number - Number 1
10 Netmovement in funds
Total Total
2021 2020
£ £
Netmovement in funds Is arrived at after charging /(crediting):
Depreciation oftangible fixed assets - rastricted 111,548 80,570
- unrestricted 40,387 17,298
Auditors remuneration:
Audit ofthe financial statements 8,800 8,313
Operatingleaserentals-Officeequipment 4,214 6,355

411 Taxation

The company Is a registered charity and no provision for taxation Is considered necessary.

21

|

: :

| |

Mahdio (Oldham Youth Zone)

NOTES TO THE FINANCIAL STATEMENTS : YEAR ENDED 31 MARCH 2021

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |12|Tangible|fixed|assets| |Long|Leasehoid|Office|&| |leasehold|Improve-|Club|electrical|Furniture|&|Motor| |property|ments|Equipment|Equipment|fittings|vehicles|Total| |Cost| |At|1|April 2020|6,043,868|67,531|107,173|61,084|21,234|26,444|6,326,334| |Additions|197,306|-|7,079|414,198|13,355|16,885|244,823| |Disposals|-|-|:|-|-|(25,444)|(26,444)| |AU31|March 2024|6,241,174|67,531|114,252|72,282|34,589|15,885|6,545,713| |Depreciation| |At|1|Aprli|2020|449,965|25,027|37,299|22,415|4,418|25,444|§34,566| |Charge|for the|period|94,201|5,135|26,829|17,464|6,321|4,985|151,935| |Disposals|.|-|.|-|(25,444)|(25,444)| |At|31|March|2024|514,166|30,162|64,128|39,879|10,737|1,985|661,057| |Net|Book|Value| |At|34|March|2021|5,727,008|37,369|50,124|32,403|23,852|413,900|5,884,656| |At|31|March|2020|5,623,903|42,504|69,874|38,669|16,818|>|5,791,768| |2021|2020| |£|£| |13|Stock| |Café and kitchen kitchen|stock|.|1,501|

----- End of picture text -----

13 Stock Café and kitchen kitchen stock

22

Hi , : :

|

| 5 | : | | | |

Mahdlo (Oldham Youth Zone)

NOTES TO THE FINANCIALSTATEMENTS
a
ne
nr ne		 :
YEAR ENDED 31
nc
a		 MARCH 2021
2021 2020
£ £
14 Debtors
Trade debtors
Otherdebtors		 61,699
425,400		 48,863
.
Prepayments 27,218 44,705
Accrued income 48 265 46,678
562,582
740,246
——— Panes ans as. “erreny
Otherdebiors relates topaymentsmade toThe
whose objects are to support the charitable		 TheMahdloEndowment Trust, aseparate charity,
work ofMandlo (Oldham Youth Zone). Those monies
can be requested back from the trust as andwhen required at short notlce.
15 Cash at bank and in hand
Cash at bank 675,474 320,388
Cash in hand 423 2,220
875,897 322,608
16 Creditors
: amounts falling due within oneyear
Trade creditors 110,745 421,700
Other creditors
Accruals		 -
430,871		 2,083
405,037
Deferred Income 166,235 493,130
407,851
421,950
—————— =e Sa
Movementsondeferredincomeaccount:
Brought forward		 193,130 92,148
Released
Incomedeferred in currentyear		 (193,130)
166,235		 (92,148)
493,130
166,235 193,130
17 Operatingleasecommitments 2024
£		 2020
£
The total future minimum lease payments undernon-cancellable
operating leases are as follows:
Officeequipmentleaseswhich expire:
withinoneyear
between twoandfive years
in over five years		 224
8,690
-		 1,140
11,398
-
8,914 12,538

18 Share capital

The company has no share capital, and the liability of members (s limited by guarantee to £1 per member.

23

Mahdto (Oldham Youth Zone)

|

:

|

|

|

;

NOTES TO THE FINANCIAL STATEMENTS : YEAR ENDED 31 MARCH 2021

19 Analysis of charitable funds

Analysts of fund movements:

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |At|At| |1|April|Incoming|Resources|Gains|31|March| |2020|resources|expended|(losses)|2021| |£|£|£|£|£| |Unrestricted|funds:| |General fund|446,418|1,339,216|{$45,396}|-|940,238| |Restricted funds:| |Acquisition|of property|at| |Egerton|Street,|Oldham|3,779,690|-|(83,993)|-|3,695,697| |Extension|to|property|at| |Egerlon|Streat,|Oldham|1,891,988|492,267|(10,182)|-|2,074,073| |Other|fixed|asset|purchases|11,662|6,572|(16,821)|-|1,413| |Fundraising|event|for| |purchase|of new vehicle|4,415|-|(552)|-|3,863| |DCMS|grant|re:|the|Communily| |Maich|Challenge|project|”|436,076|(436,076)|-|-| |Grants|for|project|delivery|.|400,566|(400,566)|-|-| |Others|-|5,600|(5,500)|.|-| |Total restricted funds|6,687,755|1,040,081|(963,690)|-|5,775,046| |Total funds|§,834,173|2,380,197|(1,499,086)|-|6,715,284|

----- End of picture text -----

20 Analysis of net assets between funds

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Genoral|Designated|— Restricted|Total| |Funds|Funds|Funds|Funds| |£|£|£|£| |Tangible|fixed|assets|109,610|.|6,775,046|5,884|656| |Current|assets|4,055,415|-|483,064|1,238,479| |Current|labilities|(224,787)|=|(183,064)|(407,851)| |Net|assets|31|March|2021|940,238|-|5,775,046|6,715,284|

----- End of picture text -----

21 Contingent liabliities There is a contingent fiability in connection with a grant relating to the charity's fong leasehold property whereby if, during a period of 20 years from the date of the grant offer letter dated 26 February 2009, the charity shall be In breach of any of the grant conditions, the grant shall be repayable upon receipt of a writtan demand from The Secretary of State for Education. The amount of the grant was £4,994,577 and The Secretary of State for Education halds a legal charge over the charity's long leasehold property in respect of this potential liability.

24

|

:

:

| | | | H | |

Mahdlo (Oldham Youth Zone)

NOTES TO THE FINANCIAL STATEMENTS

« YEAR ENDED 31 MARCH 2021

22 Pension fund

23 Related party transactions

During the year the charity recelved the following income from related parties without conditions:

Donations
Patrons		 Charitable
activities		 Othertrading
activities
programme Facility hire
& donations and other Fundralsing Total
£ £ £ £
The Barker Foundation §0,000 - - 50,000
Bedspace Ltd - - 3,770 3,770
50,000 - 3,770 53,770

Also during the year the charily purchased goods and services from the following related partles:

PSO Trading Lid £38,310 ———

At 31 March 2021 the following unsecured amounts were owed by related partias:

Bedspace Ltd £820
The Mahdlo Endowment Trust £425,400
£426,220
———————————

At 31 March 2021 the following unsecured amounts were owed to related parties: PSO Trading Ltd £19,673

Mrs J M Barker, a trustee/director of the charity, is a trustee of The Barker Foundatlon. Ms S Bolshaw, a trustee/dlrector of the charity is a director of PSO Trading Lid. Mr C Wareing Js a trustee/director of the charity and a director of Bedspace Ltd. The Mahdlo Endowment Trust is a separate charity, whose objects are to support the charitable work of Mahdio (Oldham Youth Zone). Mr J Ainley and Mrs J M Barker, trustees of Mahdlo (Oldham Youth Zone), are also trustees of The Mahdlo Endowment Trust.

25

| : :

| | | |

Mahdio (Oldham Youth Zone)

NOTES TO THE FINANCIAL STATEMENTS

: YEAR ENDED 31 MARCH 2021

24 Reconciliation of net movement in funds to net cash flow from operating activities

2021 2020
£ £
Netmovement in funds 881,111 926,264
Add back depreclation charge 151,935 107,868
Add back (profit)/losson fixed asset disposal (11,620) 737
Deduct interest Income shown tn invasting activities (157) (1,163)
Decrease/(increase) In stock 1,504 2
Decrease/(increase) in debtors (422,336) 20,096
Increase/(decrease) in creditors (14,099) 127,246
586,335 1,181,050

26

|

Mahdfo (Oldham Youth Zone)

| | |

The following pages do not form part of the statutory accounts.

27