**REGISTERED COMPANY NUMBER: 07820865 (England and Wales) REGISTERED CHARITY NUMBER: 1146415 REGISTERED SOCIAL HOUSING NUMBER: 4875** 

## **REPORT OF THE TRUSTEES AND** 

**FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022** 

## **FOR** 

## **YMCA FAIRTHORNE HOUSING** 

Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR 



**YMCA FAIRTHORNE HOUSING** 

**CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022** 

|||**Page**||
|---|---|---|---|
|**Reference and Administrative Details**||1||
|**Report of the Trustees**|2|to|7|
|**Report of the Independent Auditors**|8|to|10|
|**Statement of Financial Activities**||11||
|**Balance Sheet**||12||
|**Statement of Changes in Reserves**||13||
|**Notes to the Financial Statements**|14|to|24|





**YMCA FAIRTHORNE HOUSING** 

**REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 30 APRIL 2022** 

|**TRUSTEES**|Mr R Rogers|
|---|---|
||Mr P J West|
||Dr M H Cranston|
||Ms S M Hannington|
|**COMPANY SECRETARY**|Ms P J Spicer|
|**REGISTERED OFFICE**|Fairthorne Manor|
||Botley Road|
||Curbridge|
||Southampton|
||Hampshire|
||SO30 2GH|
|**REGISTERED COMPANY**|07820865 (England and Wales)|
|**NUMBER**||
|**REGISTERED CHARITY**|1146415|
|**NUMBER**||
|**REGISTERED SOCIAL**|4875|
|**HOUSING NUMBER**||
|**AUDITORS**|Hopper Williams & Bell Limited|
||Statutory Auditor|
||Highland House|
||Mayflower Close|
||Chandler's Ford|
||Eastleigh|
||Hampshire|
||SO53 4AR|
|**BANKERS**|Barclays Bank plc|
||1 Churchill Place|
||London|
||E14 5HP|





**YMCA FAIRTHORNE HOUSING** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022** 

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report and Strategic Report, together with the audited financial statements of YMCA Fairthorne Housing (the company) for the year ended 30 April 2022. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommend Practice Accounting by Registered Social Landlords (SORP) "Accounting and Reporting by Charities" issued in March 2005 and the “Accounting Direction for private registered providers of social housing” issued in January 2019. 

During the year the Board of Trustees met formally on one occasion and six times as a combined Board meeting with Fairthorne Group. 

## **Structure, governance and management** 

Trustees are appointed to the Board by the Board of YMCA Fairthorne Group following a recruitment and induction process which takes place over several months. Role specifications inform potential trustees of the requirements of the role and all Trustees are bound by a Code of Conduct which outlines their responsibilities. 

## **Constitution** 

The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 25 October 2011. The company is also a Registered Social Landlord as of 5 April 2018, having made the decision the previous year to register in order to continue and expand its work in the provision of accommodation for young people. 

The company is a registered charity number 1146415. 

## **Purpose Statement** 

YMCA Fairthorne Housing’s Purpose is: We believe that everybody should have the opportunity to lead happy, healthy lives. 

## **The YMCA Way** 

The YMCA Way supports the strategic direction and operational delivery for the way YMCA Fairthorne Housing will deliver programmes to young people and provides quality frameworks for all activity. The YMCA Way includes the charity’s values, from which all behaviours are defined. 

## **Values** 

1. Welcoming 

2. Active 

3. Listening 

4. Inspiring 

5. Caring 

6. Exciting 

The principal objects of the charitable company are: 

To unite those who, regarding Jesus Christ as their God and Saviour according to the Holy Scriptures, desire to be his disciples in their faith and in their life, and to associate their efforts for the extension of his Kingdom. 

To lead young people to the Lord Jesus Christ and to fullness of life in Him. 

To provide or assist in the provision in the interests of social welfare of facilities for recreation and other leisure time occupation for men and women with the object of improving their conditions of life. 



**YMCA FAIRTHORNE HOUSING** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022** 

To provide or assist in the provision of education for persons of all ages with the object of developing their physical, mental or spiritual capacities. 

To relieve or assist in the relief of persons of all ages who are in conditions of need, hardship or distress by reason of their social, physical or economic circumstances. 

To provide residential accommodation for persons of all ages who are in need, hardship or distress by reason of their social, physical or economic circumstances. 

## **Statement of Compliance with Governance and Financial Viability Standard.** 

YMCA Fairthorne Housing has, as a registered provider, undertaken an assessment of compliance as required under the above standard annually. This report has been prepared in accordance with applicable standards and legislation. The Board confirms that the Association has complied with the Regulator of Social Housing's Governance and Financial Viability Standard. 

## **Organisational structure and decision making** 

The strategic direction of the charitable company is determined by the Board of Trustees.  YMCA Fairthorne Group are contracted to undertake the day-day operational responsibilities of YMCA Fairthorne Housing. YMCA Fairthorne Group also provide off-site management support. 

## **Risk management** 

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. 

## **OBJECTIVE AND ACTIVITIES** 

## **Principal Activities** 

In the year under review, the charitable company has sought to deliver its charitable objectives through the running of housing programmes for young people aged 18 - 30 in Basingstoke, young people aged 16 – 22 in Southampton, and young single mothers in Shanklin, Isle of Wight. 

## **Policies and objectives** 

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the charity commission relating to public benefit as well as guidance given by Homes England. 

The primary objectives for the year focussed on staff and young person’s peer-support training and on developing further the digital systems established during COVID-19 that enhance communications and engagement with residents. A new Housing Strategy was developed and approved, and refurbishment works continued in Basingstoke to the benefit of residents. 

## **Strategies and activities for achieving objectives** 

The principal strategy for achieving objects is to provide quality and affordable options for young people. To work with other agencies, principally YMCA Fairthorne Group, to ensure that all tenants receive high quality housing support and training opportunities. 



**YMCA FAIRTHORNE HOUSING** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022** 

A new Housing Strategy for 2021-2030 was adopted which focusses our work around the concept of “Community Readiness”. We took a decision to intentionally put young people first, and to move away from the traditional concept of “move on” as being when a young person leaves supported accommodation. We want to ensure that young people leave with a toolkit of skills to thrive in the community, a sense of belonging and connectedness with family and important relationships, as well as the community and a local YMCA branch; and the opportunity to live in an affordable home, in an area that they choose.  Ensuring each young person has the tools to thrive in their community is of paramount importance to ensure they have the opportunity to live a happy, healthy life, and this idea we have called Community Readiness. 

## **ACHIEVEMENTS AND PERFORMANCE** 

## **Review of activities** 

The Lodge, in Shanklin, enhanced the support available to the families by appointing an enhanced Early Years Practitioner to work directly with the children and with families. A regular mother and baby group has been established that retains links with former resident families, and access to nursery for all families was secured. 

In Southampton the focus of delivery was on activity-based programmes as a response to easing Covid-19 measures, a reduction in self-isolation and residents who had spent considerable time in their rooms as a natural reaction to lockdowns and developing anxieties of stepping out into the community after two years of restrictions. This was a designed strategy based on the mental health 5 steps to wellbeing with activity proven to increase mental wellbeing and resilience. Programmes were designed utilising Fairthorne Manor with residents accessing outdoor and water-based activities as well as trips to the beach, parks, and New Forest for various activities. This led to an improvement in the relationship between staff and residents and increased engagement in other Y Pass programmes as residents began to build resilience to re-engaging in communities outside of supported accommodation. 

The online engagement platform Moodle was rolled out to every Basingstoke resident, enabling them to access support and learning when they would like to, complementing the face-to-face programme delivery. Residents can now access wellbeing kits, training course and tenancy information, and can report maintenance issues and repairs online in the moment. A Facebook site for residents was also established which is providing peer-peer support. In 2022 an appointment module will be built that will allow residents to book 1-1 support and group programmes online. Moodle has also been identified as a key CPD tool for staff with induction and onboarding processes built into the system. 2022 will see a wider rollout of Moodle across YMCA. 

Inform, the housing management software system, has been established across all housing services and has enhanced the accessibility, reliability and accuracy of information for supporting young people. 

The impact of the work University of East London (UEL) undertook has continued, with young people at Basingstoke trained in Train the Trainer courses to provide peer support to other young tenants. 

Further major improvements have been undertaken at Basingstoke to update the electrical systems for each flat which has improved accessibility for each resident as they have direct access to their own controls. 

The negative impact of COVID-19 remained throughout 2021-22 where the young people experienced a shift in their anxiety from lockdown to a fear of opening up. Young people told us they were worried about returning to “normal” activities and the staff team have provided enhanced support including attending appointments with them. In addition, with the restrictions on evictions removed, move on accommodation became available and we saw a rapid movement of young people into new homes, bringing new young people into YMCA accommodation. This turnover has had a particular impact at Basingstoke where a significant proportion of young people are 18 and who have spent 2 critical formative years between childhood and adulthood in coronavirus restrictions. Meeting their needs is a key focus of the coming year with Moodle and support focussed on wellbeing and resilience. 

Please refer to the financial statements of YMCA Fairthorne Group for further details and review of business for the group as a whole. 



**YMCA FAIRTHORNE HOUSING** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022** 

## **Value for Money Statement** 

YMCA Fairthorne Housing is regulated by Homes England (HE) which requires organisations to demonstrate how they achieve value for money in meeting strategic objectives. This value for money statement should be read alongside our Annual Report and Financial Accounts. Value for Money (VFM) principles are integrated into all plans and activities. This is led by the Board who ensure that: 

- Strategies and business plans are suitable and sustainable 

- Customer needs are identified and met 

- Finances are monitored and audited, with particular focus on costs 

- Return on assets is understood 

- Operations run as efficiently and effectively as possible 

- Effective performance management and scrutiny functions are in place 

- A risk framework ensures risks are identified, mitigated and managed 

- Stakeholders are effectively engaged and hold us to account. 

The methodology for reporting specific targets for value for money is still in development.  Currently the organisation believes the measures listed in the performance summary are the most appropriate. 

## **Performance summary:** 

- £43k deficit 

- Rent arrears 17% 

## **Financial Review** 

The trustees note that the year saw income decreasing by £508k. Alongside the income decline a deficit of £43k (2021: £163k surplus) was generated in the period. The negative impact of COVID-19 affected YMCA Fairthorne Housing during 2021-2022, this was exacerbated by staff shortages leading to significant delays in maintenance and ensuring properties were at a lettable state alongside lower than expected tenant referrals. 

## **Principal funding** 

The principal funding source is income from Housing Benefit and Universal credit which is supplemented by other income related to running the accommodation-based support service. The charitable company has also succeeded in obtaining some voluntary income to support work with residents. 

## **Reserves policy** 

The nature of the principal source of income means that at this time there is no great need to build large reserves although the Trustees believe it would be prudent to build a reserve sufficient to cover a 20% void in rental income for a sustained period of 3 months or approximately £35k. 

The company has reserves totalling £3,852k (2021: £3,895k), all reserves are unrestricted. Free reserves compromising unrestricted net assets less fixed assets net of long term borrowings were £1,154k in the prior year. However, due to long term borrowing becoming repayable within one year, the accounts show net current liabilities of £1,491k and hence no free reserves at the balance sheet date. The trustees plan to refinance so the £2,585k of borrowing due would be repayable in the longer term. If current borrowing was to be treated as long term, free reserves would become £1,094k. 



**YMCA FAIRTHORNE HOUSING** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022** 

## **Plans for the future** 

The next major step for the Housing Strategy involves development of a pedagogy and curriculum that addresses both how we will support young people and how we will co-develop the content of programmes. This will be a coproduction project in partnership with residents at all sites. 

The charity will seek to become Advantage Thinking accredited. Advantaged Thinking promotes people’s strengths rather than defining them by their deficits. It understands that working towards people’s aspirations and dreams is just as important as meeting their immediate needs. An Advantaged Thinking approach is one that creates sustainable solutions and practices, building for the future as well as the here and now. It invests smartly in people’s potential. 

YMCA Basingstoke will reinstate group programmes with corporate partners, such as Nando’s, with a project planned for summer 2022. 

At The Lodge in Isle of Wight the team are working with the local authority and other providers to develop an assessment tool for psychologically informed environments. 

YMCA Fairthorne Group the parent company of YMCA Fairthorne Housing won a tender process to continue to deliver supported housing at George Williams House, in Southampton, from July 2022 for a period of 5 years. 

The online engagement platform Moodle will be rolled out beyond Basingstoke to every resident, enabling them to access support and learning when they would like to, complementing the face-to-face programme delivery. 



**YMCA FAIRTHORNE HOUSING** 

## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 APRIL 2022** 

## **Trustees' responsibilities statement** 

The Trustees (who are also directors of YMCA Fairthorne Housing for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgments and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. 

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The Trustees are responsible for the maintenance and integrity of the 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. 

In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006 

## **Auditors** 

All of the current trustees have taken all the steps that they ought to have taken to make themselves aware of any information needed by the charity's auditors for the purposes of their audit and to establish that the auditors are aware of that information. The Trustees are not aware of any relevant audit information of which the auditors are unaware. 

Approved by order of the board of trustees on                                         and signed on its behalf by: 10 October 2022 

.................................................................... R Rogers - Trustee 




**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF YMCA FAIRTHORNE HOUSING** 

## **Opinion** 

We have audited the financial statements of YMCA Fairthorne Housing (the 'charitable company') for the period ended 30 April 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of changes in reserves 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 

## In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company's affairs as at 30 April 2022 and of its incoming resources and application of resources, including its income and expenditure, for the period then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 

- have been prepared in accordance with the requirements of the Companies Act 2006, and 

- have been prepared in accordance with the requirements of the Housing and Regeneration Act 2008 and the 

   - Accounting Direction for Private Registered Providers of Social Housing 2019. 

## **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 Auditors' 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** 

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: 

- the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or 

- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. 

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, 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 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 is a material misstatement of this other information, we are required to report that fact.  We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the Report of the Trustees for the financial period for which the financial statements are prepared is consistent with the financial statements; and 

- the Report of the Trustees has been prepared in accordance with applicable legal requirements. 



**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF YMCA FAIRTHORNE HOUSING** 

## **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 Report of the Trustees. 

We have nothing to report in respect of the following matters where 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 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees' Responsibilities, 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. 

## **Our 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 a Report of the Independent Auditors 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. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and the industry in which it operates. These include but are not limited to compliance with the Companies Act 2006; UK Generally Accepted Accounting Practice; the SORP for Registered Social Housing Providers 2014, Accounting by registered social housing providers’ 2014 as updated; the Accounting Direction for Private Registered Providers of Social Housing from 2019; and the relevant tax compliance regulations for the company. 

- We obtained an understanding of how the charity is complying with these frameworks through discussions with management. 

- We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs and correspondence. 

- We assessed the susceptibility of the charities' financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature. 



**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF YMCA FAIRTHORNE HOUSING** 

- We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature. 

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 Report of the Independent Auditors. 

## **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 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. 


Michaela Johns FCCA (Senior Statutory Auditor) for and on behalf of Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR 25/10/2022 Date: ............................................. 



**YMCA FAIRTHORNE HOUSING** 

## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR 1 MAY 2021 TO 30 APRIL 2022** 

|**Year ended**<br>**30 April**<br>**2022**<br>Notes<br>**£’000**<br>**TURNOVER**<br>Donations and legacies<br>4<br>**43**<br>Social housing income<br>4<br>**1,248**<br>Other income<br>4<br>**15**<br>**Total**<br>**1,306**<br>**EXPENDITURE ON**<br>**Operating expenditure**<br>4<br>**1,291**<br>**OPERATING SURPLUS**<br>**15**<br>**Interest payable**<br>9<br>**58**<br>**(DEFICIT) / SURPLUS FOR THE PERIOD**<br>**(43)**|**Period**<br>**1 January 2020**<br>**to  30 April 2021**<br>£’000<br>103<br>1,683<br>28<br>1,814<br>1,569<br>245<br>82<br>163|
|---|---|



The notes form part of these financial statements 



**YMCA FAIRTHORNE HOUSING** 

## **BALANCE SHEET 30 APRIL 2022** 

|**REGISTERED COMPANY NUMBER - 07820865**<br>Notes<br>**FIXED ASSETS**<br>Housing properties<br>Tangible fixed assets<br>10<br>11<br>**CURRENT ASSETS**<br>Debtors<br>12<br>Cash at bank and in hand<br>**CREDITORS**<br>Amounts falling due within one year<br>13<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**CREDITORS**<br>Amounts falling due after more than one year<br>14<br>**NET ASSETS**<br>**FUNDS**<br>Unrestricted funds:<br>General fund<br>**TOTAL FUNDS**|**2022**<br>**Total**<br>**funds**<br>**£’000**<br>**5,343**<br>**1**<br>**777**<br>**416**<br>**1,193**<br>**(2,685)**<br>**(1,492)**<br>**3,852**<br>**-**<br>**3,852**<br>**3,852**<br>**3,852**|2021<br>Total<br>funds<br>£’000<br>5,290<br>2<br>889<br>495<br>1,384<br>(230)<br>1,154<br>6,446<br>(2,551)<br>3,895<br>3,895<br>3,895|
|---|---|---|



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

The financial statements were approved by the Board of Trustees on                                 and were signed on its behalf 10 October 2022 by: 

............................................. M H Cranston - Trustee 

The notes form part of these financial statements 



## **YMCA FAIRTHORNE HOUSING** 

## **STATEMENT OF CHANGES IN RESERVES AT 30 APRIL 2022** 

|Balance as at 1 May 2021<br>Deficit for the year<br>Balance at 30 April 2022<br>**STATEMENT OF CHANGES IN RESERVES**<br>**AT 30 APRIL 2021**|**Unrestricted**<br>**general funds**<br>**£’000**<br>**3,895**<br>**(43)**|**Restricted**<br>**Income funds**<br>**£’000**<br>**-**<br>**-**|**Total**<br>**£’000**<br>**3,895**<br>**(43)**|
|---|---|---|---|
||**3,852**|**-**|**3,852**|
|||||



|Balance as at 1 January 2020<br>Surplus for the period<br>Grant funding<br>Balance at 30 April 2021|Unrestricted<br>general funds<br>£’000<br>3,701<br>163<br>31|Restricted<br>Income funds<br>£’000<br>31<br>**-**<br>(31)|Total<br>£’000<br>3,732<br>163<br>-|
|---|---|---|---|
||3,895|-|3,895|



continued... 



**YMCA FAIRTHORNE HOUSING** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022** 

## **1. LEGAL STATUS** 

YMCA Fairthorne Housing is a company, limited by guarantee (company number 07820865) and a registered charity (number 1146415) and is registered with the Register of Social Housing as a social housing provider (number 4875).  The address of the registered office is Fairthorne Manor, Botley Road, Curbridge, Southampton, England, SO30 2GH. 

## **2. ACCOUNTING POLICIES** 

## **Basis of preparing the financial statements** 

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the SORP for Registered Social Housing Providers 2014, 'Accounting by registered social housing providers' 2014 as updated, the Accounting Direction for Private Registered Providers of Social Housing from 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. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest thousand. 

The charity constitutes a public benefit charity as defined by FRS102. 

## **Going concern** 

The charity forms part of the treasury management of YMCA Fairthorne Group, which is supported by a loan facility. The trustees have produced cash flow forecasts that demonstrate that operations will generate cash in the forthcoming year to enable the group to operate within its current bank facilities and meet its liabilities as they fall due. Accordingly, the Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. 

The trustees have considered the impact and risk of the charity from COVID-19 and the charities prospects, and have concluded that with the right management actions the charity is a going concern for at least 12 months following the signature of the financial statements. Accordingly the trustees have prepared the financial statements on this basis. 

The Trustees acknowledge the significant increase in creditors falling due within one year compared to the year ending April 21 accounts. The increase is as a result of the reclassification of the Barclays’ loan, as the terms of the loan are due for renewal in March 2023. Conversations regarding renewal of the loan have already begun, the trustees fully intend to renew the terms of the loan and believe the going concern of the organisation is not impacted by the renewal. 

## **Financial reporting standard 102 - reduced disclosure exemptions** 

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland': 

- the requirements of Section 4 Statement of Financial Position paragraph 9.12(a)(iv) 

- the requirements of Section 7 Statement of Cash Flows; 

- the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d); 

- the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); 

- the requirements of Section 12 Other Financial Instruments paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; 

- the requirement of Section 33 Related Party Disclosures paragraph 33.7. 

This information is included in the consolidated financial statements of YMCA Fairthorne Group as at 30 April 2022 and these financial statements may be obtained from Fairthorne Manor, Botley Road, Curbridge, Southampton, England, SO30 2GH. 

continued... 



**YMCA FAIRTHORNE HOUSING** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022** 

## **Critical accounting judgements and key sources of estimation uncertainty** 

In preparing these financial statements, the key judgements have been made in respect of the following: 

- Whether there are indicators of impairment of the Charity's housing properties and other tangible assets factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cashgenerating unit, the viability and expected future performance of that unit. The Trustees have considered the measurement basis to determine the recoverable amount of assets where there are indicators of impairment based on EUV-SH or depreciated replacement cost. The members have also considered impairment based on their assumptions to define cash or asset generating units. 

The principal uncertainty that the Charity faces is the unknown effect from COVID-19. The trustees believe that mitigating actions have been taken and this risk has been minimised, such that the Board are able to make a judgement on the going concern of the charity. 

Other key sources of estimation uncertainty: 

## **Critical accounting judgements and key sources of estimation uncertainty** 

## **Tangible fixed assets (see note 10)** 

- Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as the condition of the asset and its future income generating potential are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. 

For housing property assets, the assets are broken down into components based on management's assessment of the properties. Individual useful economic lives are assigned to these components. 

## **Rental and other trade receivables (see note 12)** 

The estimate for receivables relates to the recoverability of the balances outstanding at the period end. An estimation of recoverability is used to consider whether debts are recoverable. 

## **Income** 

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. The charity has the following material income streams: 

Rental income 

Service charge income 

Revenue grants 

Rental income and service charge income is recognised in the period for which the service was provided to the resident. 

## **Grants** 

Grants received from non-government sources are recognised using the performance model. A grant which does not impose specified future performance conditions is recognised as revenue when the grant proceeds are received or receivable. Where a social landlord acquires land/or other assets at below market value from another entity, this is in substance considered to be a grant. Where grants are given by a non-government source without restriction or conditions, the whole amount can be recognised upon receipt. 

A grant that imposes specified future performance-related conditions on the association is recognised only when these conditions are met. A grant received before the revenue recognition criteria are satisfied is recognised as a liability. 

continued... 



**YMCA FAIRTHORNE HOUSING** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022** 

## **Finance costs** 

Finance costs are charged to income or expense over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. 

## **Tangible fixed assets** 

Tangible fixed assets costing more than £1k (2021 - £1k) are capitalised and included at cost including nonrecoverable VAT. Depreciation is provided on tangible fixed assets at rates calculated to write off the cost on a straight-line basis over their expected useful economic lives as follows: 

Plant and machinery - over 3 - 25 years 

## **Housing Properties and depreciation** 

Housing properties constructed or acquired (including land) on the open market since the date of transition to FRS 102 are stated at cost less depreciation and impairment (where applicable). 

The cost of housing land and property includes the cost of acquiring land and buildings, development costs, interest capitalised during the development period, directly attributable administration costs and expenditure incurred in respect of improvements which comprise the modernisation and extension of existing properties. 

Expenditure on major refurbishment to properties is capitalised where the works increase the net rental stream over the life of the property. An increase in the net rental stream may arise through an increase in the net rental income, a reduction in future maintenance costs, or a subsequent extension in the life of the property. All other repair and replacement expenditure is charged to the Statement of Comprehensive Income. 

## **Depreciation of housing properties** 

Housing land and property acquired before 2019 is split between land and property. Housing land and property acquired since 2019 will be split between land, structure and other major components that are expected to require replacement over time with substantially different economic lives. 

Depreciation charged on Housing property acquired prior to 2019 is depreciated based on the cost of the property as a whole. Housing property acquired after 2019 will be split between the structure and the major components which will require periodic replacement. The cost of any replacements or restorations to the major components are capitalised and depreciated over the determined average useful economic life on a straight line basis as follows: 

|**Description**|**Useful economic life (years)**|
|---|---|
|Structure|**100**|
|Roofs|**70**|
|Kitchens|**20**|
|Bathrooms|**30**|
|Boilers|**10-15**|
|Central heating|**30**|
|Windows|**30**|
|Lift|**20**|



Land is not depreciated on account of its indefinite useful economic life. 

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last reporting date in the pattern by which the charity expects to consume an asset's future economic benefit. 

## **Taxation** 

The charity is exempt from corporation tax on its charitable activities. 

continued... 



**YMCA FAIRTHORNE HOUSING** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022** 

## **Financial instruments** 

Financial assets and liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all its liabilities. 

## **Debtors and creditors** 

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses. 

## **Financial instruments** 

## **Recoverable amount of rental and other trade receivables** 

The Charity estimates the recoverable value of rental and other receivables.  A provision is made against the debt.  Full provisions are made against debt where recovery is considered unlikely.  A general provision is made on all non-social services current debt. 

## **Loans** 

All loans held by the Charity, are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded at the transaction price less any transaction costs (historical cost). FRS 102 requires that basic financial instruments are subsequently measured at amortised cost using the effective interest rate method, less any impairment losses. Loans that are payable or receivable within one year are not discounted. 

## **Contingent liabilities** 

A contingent liability is recognised for a possible obligation, for which it is not yet confirmed that a present obligation exists that could lead to an outflow of resources; or for a present obligation that does not meet the definitions of a provision or a liability as it is not probable that an outflow of resources will be required to settle the obligation or when a sufficiently reliable estimate of the amount cannot be made. 

A contingent liability exists on grant repayment which is dependent on the disposal of related property. 

## **Reserves** 

Income received, and expenditure incurred, for restricted purposes is separately accounted for within restricted funds. Realised and unrealised gains and losses on assets held by these funds are also allocated to the fund. 

## **3. HOUSING UNITS UNDER MANAGEMENT** 

|Supported housing|**2022**<br>**No**<br>**147**|2021<br>No<br>146|
|---|---|---|



continued... 



**YMCA FAIRTHORNE HOUSING** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022** 

## **4. PARTICULARS OF TURNOVER, OPERATING COSTS AND OPERATING SURPLUS** 

|Social housing (note 5)<br>**Activities other than social housing**<br>Grants and donations<br>Other income<br>Social housing (note 5)<br>**Activities other than social housing**<br>Grants and donations<br>Other income|**Turnover**<br>**2022**<br>**£’000**<br>**1,248**<br>**43**<br>**15**<br>**1,306**<br>Turnover<br>Period 1<br>January 2020 to<br>30 April 2021<br>£’000<br>1,683<br>103<br>28<br>1,814|**Operating**<br>**costs**<br>**2022**<br>**£’000**<br>**(1,291)**<br>**-**<br>**-**|**Operating**<br>**surplus/**<br>**(deficit)**<br>**2022**<br>**£’000**<br>**(43)**<br>**43**<br>**15**|
|---|---|---|---|
|||**(1,291)**|**15**|
|||Operating costs<br>Period 1<br>January 2020 to<br>30 April 2021<br>£’000<br>(1,569)<br>-<br>-|Operating<br>surplus<br>Period 1<br>January 2020 to<br>30 April 2021<br>£’000<br>114<br>103<br>28|
|||(1,569)|245|



continued... 



**YMCA FAIRTHORNE HOUSING** 

**NOTES TO THE FINANCIAL STATEMENTS continued FOR THE YEAR ENDED 30 APRIL 2022** 

## **5. PARTICULARS OF INCOME AND EXPENDITURE FROM SOCIAL HOUSING LETTINGS** 

|**Income**<br>Rents net of identifiable service charges<br>Service charge income<br>Turnover from Social Housing lettings<br>**Expenditure**<br>Management<br>Service charge<br>Maintenance<br>-<br>Planned maintenance<br>-<br>Routine maintenance<br>-<br>Void costs<br>Bad debts<br>Depreciation on Housing properties:<br>-<br>Annual charge<br>Other costs<br>Operating expenditure on Social Housing<br>lettings<br>Operating surplus / (deficit) on Social<br>Housing<br>lettings<br>Void losses|**Social**<br>**housing**<br>**Year ended 30**<br>**April 2022**<br>**£’000**<br>**586**<br>**662**<br>**1,248**<br>**511**<br>**104**<br>**106**<br>**112**<br>**32**<br>**22**<br>**45**<br>**359**<br>**1,291**<br>**(43)**<br>**271**|Social<br>housing<br>Period 1<br>January 2020<br>to 30 April<br>2021<br>£’000<br>785<br>898|
|---|---|---|
|||1,683|
|||667<br>141<br>97<br>66<br>21<br>69<br>40<br>468|
|||1,569|
|||114|
|||368|



continued... 



**YMCA FAIRTHORNE HOUSING** 

**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 APRIL 2022** 

## **6. OPERATING SURPLUS** 

This is stated after charging: 

|This is stated after charging:|||
|---|---|---|
||**Year ended**|Period|
||**30 April**|1 January 2020|
||**2022**|to  30 April 2021|
||**£’000**|£’000|
|Depreciation - owned assets|**45**|40|
|Auditors' remuneration|**3**|-|



The depreciation charge of £45k (2021:£40k) includes a charge of £15k (2021:£24k) which relates to assets owned by YMCA Fairthorne Group but used by YMCA Fairthorne Housing. 

## **7. STAFF COSTS** 

|**STAFF COSTS**|||
|---|---|---|
||**Year ended**|Period|
||**30 April**|1 January 2020|
||**2022**|to  30 April 2021|
||**£’000**|£’000|
|Wages and salaries|**244**|269|
|Social security costs|**17**|22|
|Other pension costs|**7**|10|
||**268**|301|



Staff are employed by YMCA Fairthorne Group who recharge 20% of management time to the Charity, in the year this amounted to £83k (16 month period to 30 April 2021: £196k). At times a higher percentage was recharged, this percentage is dependent on the allocation of the staff members time spent working on each charity. 

The average monthly number of staff members employed by YMCA Fairthorne Group who are recharged back during the period was as follows: 

||**Year ended**|Period|
|---|---|---|
||**30 April**|1 January 2020|
||**2022**|to  30 April 2021|
|Housing, support and care|9|10|



No employees received emoluments in excess of £60k. 

continued... 



**YMCA FAIRTHORNE HOUSING** 

**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 APRIL 2022** 

## **8. TRUSTEES AND KEY MANAGEMENT PERSONNEL** 

There were no trustees’ remuneration or other benefits for the year ended 30 April 2022 nor for the period ended 30 April 2021. 

No trustees received any compensation for loss of office. 

## **Trustees’ expenses** 

There were no trustees’ expenses paid for year ended 30 April 2022 nor for the period ended 30 April 2021. 

## **Key management personnel** 

Key management personnel are shown in YMCA Fairthorne Group accounts as they are recharged from this entity to YMCA Fairthorne Housing. 

## **9. INTEREST PAYABLE AND SIMILAR EXPENSES** 

|**Year ended**<br>**30 April**<br>**2022**<br>**£’000**<br>Interest on bank loan<br>**58**<br>**HOUSING PROPERTIES**<br> <br>**COST**<br>At 1 May 2021<br>Additions<br>At 30 April 2022<br>**DEPRECIATION**<br>At 1 May 2021<br>Charge for year<br>At 30 April 2022<br>**NET BOOK VALUE**<br>At 30 April 2022<br>At 30 April 2021|<br>|<br>|Period<br>1 January 2020<br>to 30 April 2021<br>£’000<br>82<br>**Totals**<br>**£’000**<br>**5,375**<br>**82**<br>**5,457**<br>**85**<br>**29**<br>**114**<br>**5,343**<br>**5,290**|
|---|---|---|---|
|||||
|||||
|||||
|||||
|||||



## **10. HOUSING PROPERTIES** 

All housing properties held by the Charity are freehold. 

No social housing grants were received in the period. 

continued... 



**YMCA FAIRTHORNE HOUSING** 

**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 APRIL 2022** 

## **Impairment** 

The Charity considers £5,343k (2021: £5,290k) to represent separate cash generating units (CGU’s) when assessing for impairment in accordance with the requirements of FRS102 and SORP 2015. 

The Trustees took the reasonable assumption that as Housing properties were purchased at market value in 2018, £Nil (2021: £Nil) impairment would be expected. 

## **Properties held for security** 

The charity had property with a net book value of £5,343k (2021: £5,290k) pledged as security at 30 April 2022. 

## **11. OTHER TANGIBLE FIXED ASSETS** 

|**COST**<br>At 1 May 2021<br>At 30 April 2022<br>**DEPRECIATION**<br>At 1 May 2021<br>Charge for the period<br>At 30 April 2022<br>**NET BOOK VALUE**<br>At 30 April 2022<br>At 30 April 2021|**Plant and**<br>**machinery**<br>**£’000**<br>**14**|
|---|---|
||**14**|
||**12**<br>**1**|
||**13**|
||**1**|
||**2**|



## **12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Trade debtors<br>Amounts owed by group undertakings<br>Other debtors<br>Prepayments and accrued income|**2022**<br>**£’000**<br>**129**<br>**623**<br>**4**<br>**21**<br>**777**|2021<br>£’000<br>169<br>693<br>1<br>26|
|---|---|---|
|||889|



continued... 



**YMCA FAIRTHORNE HOUSING** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 APRIL 2022** 

## **13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|**2022**<br>**£’000**<br>Bank loans and overdrafts (see note 15)<br>**2,585**<br>Trade creditors<br>**42**<br>Other creditors<br>**1**<br>Accruals and deferred income<br>**57**<br>**2,685**<br>**14.**<br>**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**<br>**2022**<br>**£’000**<br>Bank loans (see note 15)<br>**-**<br>**15.**<br>**LOANS**<br>An analysis of the maturity of loans is given below:<br>**2022**<br>**£’000**<br>Amounts falling due within one year on demand:<br>Bank loans<br>**2,585**<br>Amounts falling between one and two years:<br>Bank loans - 1-2 years<br>**-**||2021<br>£’000<br>160<br>32<br>1<br>37|
|---|---|---|
|||230|
|||2021<br>£’000<br>2,551|
|||2021<br>£’000<br>160|
|||2,551|



During 2018 the charity took out a new long term loan. The full balance of £2,870k was drawn down from the loan facility. 

The loans of the charity and fellow group companies are secured on the assets of YMCA Fairthorne Group and its subsidiaries via a bank cross guarantee. 

The loan is due to be repaid 5 years after the date of the first draw down. Repayments are being made based on a 20 year repayment profile with the first repayment to be made directly after the first draw down interest accrues on the loan at a rate of 1.99% above the Bank of England base rate. 

During the prior period, the bank allowed for a 7 month capital repayment holiday.  No capital repayments were made during 2020 as a result.  Interest was calculated on the outstanding loan balance and paid quarterly via the charity’s bank account.  From March 2021, loan interest was added to the bank loan, as accrued on a quarterly basis and capital repayments recommenced. 

The Trustees acknowledge the significant increase in creditors falling due within one year compared to the year ending April 21 accounts. The increase is as a result of the reclassification of the Barclays’ loan, as the terms of the loan are due for renewal in March 2023. Conversations regarding renewal of the loan have already begun, the trustees fully intend to renew the terms of the loan and believe the going concern of the organisation is not impacted by the renewal. 

## **16. CAPITAL COMMITMENTS** 

As at 30 April 2022 the charity had contractual commitments totalling £Nil (2021: £Nil). 

continued... 



**YMCA FAIRTHORNE HOUSING** 

**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 APRIL 2022** 

## **17. RELATED PARTY DISCLOSURES** 

During the year, management charges of £128k (16 month period to 30 April 2021: £196k) and other charges of £383k (2021: £453k) were raised by its parent company, YMCA Fairthorne Group. 

The Charity also paid YMCA Fairthorne Group £268k (16 month period to 30 April 2021: £301k) for staff employed by YMCA Fairthorne Group. At the period end the Charity was owed £623k (16 month period to 30 April 2021: £693k) from YMCA Fairthorne Group. These transactions were carried out on an arm’s length basis. 

In addition to these transactions, the charity's bank accounts form part of YMCA Fairthorne Group treasury management function. 

## **18. ULTIMATE CONTROLLING PARTY** 

The Charity is a subsidiary of YMCA Fairthorne Group, a Charitable Company limited by guarantee, Charity number: 1090981, Company number: 4336719. 

Consolidated accounts can be obtained from the registered office, Fairthorne Manor, Botley Road, Curbridge, Southampton, England, SO30 2GH. 

The parent exercises control through the appointment or removal of Trustees and through management of the Charity. 

## **19. LEGAL STATUS OF THE CHARITY** 

The company is limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. There was one member during the period (2021: one). 

continued...