2022-09-30-accounts

Youth United Foundation

Annual Report and Financial Statements

30 September 2022

Company Limited by Guarantee Registration Number 07983862 (England and Wales) Charity Registration Number 1147952

Contents

Reports
Chair’s report	1
Directors’ and Trustees’ report	3
Reference and administrative details	12
Independent auditor’s report	13
Financial Statements
Statement of financial activities	17
Balance sheet	18
Statement of cash flows	19
Principal accounting policies	20
Notes to the financial statements	23

Youth United Foundation

Chair’s Report

I am pleased to report that 2023 will see a progressive realisation of the main opportunities open to our network and us, particularly:

• Confirmation of a £16.9m grant over 3 years from DCMS, the Uniformed Youth Fund, to create 23,000 new places and begin to eliminate waiting lists to join our network organisations; and

• £1.5m for use by April 2023 to open new uniformed youth groups where there is no existing provision in the most deprived areas of England.

In both of these cases, Youth United Foundation (“YUF”) pitched for and won the grant administration and/or consultancy to support DCMS in the efficacious use of these funds. In the case of the larger grant this is in collaboration with Groundwork, a much larger and experienced community grants operator, without whose partnership we would have been unable to bid for this grant because of the criteria under the Government’s procurement rules. We are grateful to Groundwork for their support and collegiate style to allow us to cooperate fully for the benefit of young people.

In addition to these major projects, work commenced on two pilot programmes:

• A development programme, funded by Historic England, working across the heritage and uniformed youth sectors. The project’s aims were to understand how young people in uniformed youth groups increase their sense of belonging through connection with their local heritage. Strong feelings of belonging improve confidence and self-belief.

• An intergenerational project funded by Royal London and supported by Audley Homes, Housing 21 and Intergenerational Music Making to pilot the potential for cooperation between youth groups and older peoples’ living for mutual benefit and positive societal impact. This work builds on learning from some innovative work in this area in other countries notably the Netherlands, Denmark and the USA.

Both of these projects have shown positive initial impact, but we will await the completion of the pilot phases before we draw any further conclusions.

Our thanks must go the YUF Youth Panel, a parallel set of network members’ representatives who are instrumental in guiding and challenging our work to enhance its impact for and on behalf of young members of our network organisations.

In looking forward our network of organisations and Trustees recognise that their activities:

• impact young peoples’ development across societal barriers (not accessible in many schools);

• help build the resilience, collaborative and leadership skills that do not form part of any other learning they can easily access;

• have substantial reach - the biggest large-scale youth programme; and

• offer value for money when compared to other programmes.

We believe we can work with other funders to both increase the reach and give access to a wider range of activities for the young people we all collectively seek to serve.

My thanks must go to:

• The very small but perfectly formed team of staff we have, ably lead by Anna Maddox who has been instrumental since she joined last summer in spearheading the grants and funding we have secured.

Youth United Foundation 1

• My colleague Trustees who give their time and support freely and with enthusiasm. I welcome Ian Callaghan as Treasurer elect and Dan Greaves both of whom add to our excellent set of colleagues; my congratulations to Alex Peace-Gadsby who has become Vice Chair and also a huge thank you to Paul Stephen who departs as Trustee after 9-years of dedicated service!

• To His Majesty King Charles III not only for his inspirational foresight in founding this organisation but for his commitment with messages of support and thought through a very demanding year for His Majesty. Thank you.

As I said at the end of my first year – the future looks promising – even more so now as we reach the end of year two. We have made good progress that we should be proud of, but we still have lots we can do, areas we can reach and innovative partnerships we can generate. We look forward to working with old friends of YUF and new collaborators to achieve this!

Suki Kalirai

Chair of Trustees

6[th] June 2023

Youth United Foundation 2

Directors’ and Trustees’ report 30 September 2022

The Trustees of the Youth United Foundation present their annual Directors’ and Trustees’ report together with the financial statements of the charity for the year ended 30 September 2022. They have been prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Foundation’s Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Our vision and mission

Youth United’s vision is that every young person in the UK has the opportunity to join one of our member organisations. Our member organisations are:

• Army Cadet Force  St John Ambulance

• Fire Cadets  The Boys’ Brigade  Girlguiding  The Girls’ Brigade England & Wales  Jewish Lads’ and Girls’ Brigade  The Scout Association  RAF Air Cadets  Volunteer Police Cadets

• Sea Cadets

Membership of the Youth United Network is open to any UK-focused organisation that meets the following criteria:

• National governance, a trusted reputation and charitable objectives;

• Common, structured activities that are fun, engaging and inclusive;

• Progressive programmes where young people can advance into leadership;

• Focus on youth development (ranging from ages 4-25);

• Adult volunteering and social action as key parts of delivery; and

• A shared, required uniform.

These established, national voluntary youth organisations come together under the Youth United banner to collaborate and where possible, to grow their provision, especially in areas and communities where there is less tradition of uniformed youth activity. They form a powerful Network which increases their joint understanding on common issues, realises the benefits of collaboration and then, through each of their internal structures, supports local activity. Each member of the Youth United Network remains an independent organisation, working to realise its individual aims and objectives.

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Directors’ and Trustees’ report 30 September 2022

Our vision and mission (continued)

The role of the Foundation is to secure and administer funding in an efficient and effective way to enable the creation of new uniformed youth groups where they are most needed, and to deliver strategic support for the Network as a whole, for example through the collation of data. It also supports collaboration between members, a role that has been particularly important during the pandemic.

Charitable objects

The Youth United Foundation’s objects, as set out in its Articles of Association, are for the public benefit to promote the emotional, spiritual, physical, intellectual, and social development of young people ("Beneficiaries"), by pursuing any lawful charitable purposes at the discretion of the Trustees and in particular:

• The advancement of citizenship or community development by promoting opportunities for the development, education and support of Beneficiaries in need to lead purposeful, stable and fulfilled lives;

• The advancement of education of Beneficiaries by the provision, encouragement and promotion of education, instruction, training, entrepreneurship or engaging in a profession, trade, craft or service;

• The prevention or relief of poverty of Beneficiaries through the provision of assistance (including financial assistance); and

• The advancement of health by promoting and protecting the health, morale, confidence, well-being, skills and abilities of Beneficiaries who are deemed vulnerable.

The Foundation aims to deliver these objects by making it possible for every young person in the UK to take part in uniformed youth activities through one of its member organisations.

Convening and supporting the Network

The Foundation has a vital role to play in both convening and supporting the Network. Regular meetings are held with all of the Network organisation Chief Executive Officers or their senior representatives. These meetings provide a forum to discuss strategy, policy and to share ideas and concerns. The strength which comes from sharing and discussing issues which are common to all of our Network members is not to be underestimated. As explained below, the Foundation’s role in convening and supporting these meetings has been particularly important during the pandemic, when meetings have been held on a fortnightly basis to facilitate knowledge sharing and joint problem solving. The Foundation also provides a platform for disseminating information to the Network on key issues such as safety, safeguarding, policy changes and key youth work developments.

The Foundation maintains a focus on evaluating the impacts of our investment across the Network.

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Directors’ and Trustees’ report 30 September 2022

Impact of Covid -19

This financial year saw the loosening of restrictions due to Covid-19. The Foundation maintained its role of giving support to the Network as regulations continued to change. The main task was to support the Network to rebuild volunteer and young people numbers in a post-pandemic world

Core Funding – Performance and delivery during 2021- 2022

The Foundation is fortunate to have its core work continued to be supported by The Prince of Wales Charitable Foundation during this time. This funding has helped deliver its aims that any young person can join a uniformed youth group and achieve their potential, regardless of their background.

Once again, the Foundation worked with the British Legion to engage young people from uniformed youth organisations in remembrance. This work culminates in the 500 strong Y column at the Cenotaph commemoration event in London, where young people from across the Network organisations took part.

Historic England

The Foundation was delighted to receive funding from Historic England to carry out a project around youth engagement with heritage in their local area, building on the work of the Network member Volunteer Police Cadets. The aims of the project were to scope the willingness and ability of other organisations in the youth and heritage sectors to develop mutually beneficial opportunities which support Historic England’s vision and objectives.

A young person reference group and a total of 50 people from 30 originations were consulted during the project. The project explored and began to shape a common framework in which partnerships could provide opportunities for young people from diverse backgrounds to have their voices heard within the heritage sector and support them to take action. The work uncovered a significant amount of existing good practice relating to working with young people in the co-design and delivery of engaging heritage/historic projects which will form the basis of future activity.

In December 2022 a cross sector meeting was held during which a shared vision of framework for future work was devised.

Silver United

The Foundation received a donation from Royal London to create formal and ongoing relationships between uniformed youth groups and local older people living in places including social housing, care homes and retirement villages. As with the Historic England project, the work was designed to build on previous positive work of a Network member (in this case Air Cadets) and increase the number of uniformed youth organisations who participated. By September 2022 the pilot phase had been completed which identified that in the first instance bringing the two groups together around a structured activity provided a way of breaking the ice and allowed closer relationships to form across the generations. Older people have more trust in young people in uniformed youth groups. Engaging in a shared activity gave young people the opportunity to gain confidence and gave them a sense of belonging and purpose in their local community. Once this formal relationship has been created, more fluid and diverse interactions are able to form and the relationship between the groups is long term.

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Directors’ and Trustees’ report 30 September 2022

DCMS Grants Advisor

The Foundation was awarded a grant to support DCMS set up and distribute a £1.5mllion fund to support uniformed youth groups set up new groups in areas of deprivation where there were currently none. The Foundation was able to rapidly engage the non-military uniformed youth groups and act as liaison to ensure that the extremely tight timeline from announcing the call, application and award was achieved. By the end of March 2023 new groups had been established across the UK.

Staffing

Anna Maddox joined the Foundation in September 2022 in the role of Director, taking over from Wendy Human who stepped down from the role after five years. Anna has a background in charity leadership and fundraising as well as being a volunteer for her local Girlguiding and Scout units.

Looking forward

In October 2023 it was announced that the Foundation’s partnership with Groundwork UK had been successful in securing the contract to deliver the administration of grants of £15.9m to the Network in order for them to decrease waiting lists in the most deprived areas of England. Over the next two years Youth United Foundation will be pivotal in ensuring that best practice is shared across the Network and that all uniformed youth groups are able to maximise the number of places available to young people no matter what their background.

This funding gives the organisation a secure platform on which to grow and deliver its vision. The Trustees are working to develop a strategy for the organisation to build on this work to 2025. Part of this strategy will be to build and grow the funding for the expansion of the pilot projects, Silver United and Historic England and continue to ensure that all young people can access uniformed youth groups, no matter where they live.

Youth United Foundation 6

Directors’ and Trustees’ report 30 September 2022

Structure, governance and management

Stewardship and support during 2022-23

The Board of Trustees met five times during the period covered by this report. Key issues discussed included

• The ongoing financial viability of the Foundation, including regular reviews of income and expenditure and contingency planning in the event of no further significant funding being received.

• Maintaining appropriate staff resources within the Foundation given the uncertainty of future funding.

• The role of the Foundation during the pandemic and identifying ways in which the Foundation was able to offer useful and appropriate support to Network members and maintain positive relationships with its wider stakeholder groups.

• Succession planning for Trustees due to retire in the following financial year.

Appointment of Trustees

As set out in the Articles of Association, the Youth United Foundation must have at least three and no more than 11 Trustees. Up to two of the Trustees may be appointed upon nomination of the Youth United Network and up to nine may be appointed by the Trustees. The Chair is also appointed by the Trustees. The Foundation’s Trustees are also directors of the Youth United Foundation for the purposes of company law.

Trustee induction and development

Three new Trustees were appointed during this period. The Foundation’s practice is for new (and as required existing) Trustees to be briefed by co-Trustees, the Director, and the Financial Consultant on their legal obligations under charity and company law and on:

• Charity Commission guidance on public benefit.;

• Contents of the Memorandum and Articles of Association;

• Decision-making processes and delegations; and

• Strategy plans and recent financial performance.

Reference documentation is provided to support briefings with updates being issued as required. Trustees are also encouraged to meet key employees, visit uniformed youth groups, and undertake training or attend courses which are relevant to the development of their role and to maintain currency with legislative and regulatory requirements.

None of the Trustees receive remuneration or other financial benefit from their work with the Youth United Foundation.

Organisation

The Board of Trustees direct the strategy for the Foundation. It normally meets six times a year, and at least quarterly.

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Directors’ and Trustees’ report 30 September 2022

The Board is chaired by Suki Kalirai, who is independent of any connection with the members of the Youth United Network.

An Operations Director is appointed by the Trustees to manage the day-to-day operations of the charity, covering operational matters including project, finance and Network engagement.

Relationship with the Youth United Network

The Youth United Foundation is closely entwined with and works to support the Youth United Network. The two work together co-operatively as Youth United. Network member organisations or their appointed representatives are members of the Foundation and nominate up to two of the Foundation’s Trustees. The Chair of the Board of Trustees attends Network meetings, which are chaired either by the Foundation’s Director or the Chair of Trustees. The Network also receives operational, secretariat and advisory support from the Foundation’s staff.

Financial review

Report for the year

For the year ended 30 September 2022, total income amounted to £70,838 (2021 – £195,008) and total expenditure amounted to £144,554 (2021 – £102,941) of which grants payable amounted to £12,550 (2021 – £1,000), programme and support costs amounted to £124,789 (2021 – £83,761) and governance costs amounted to £7,215 (2021 – £18,180, of which £12,000 related to the recruitment of a new Chair of Trustees).

Expenditure exceeded income for the year resulting in a deficit of £73,716 (2021 –surplus of £92,067).

Trustee remuneration

The Trustees, who are also directors of the company, are responsible for directing, controlling and operating the Foundation on a day-to-day basis. All Trustees give their time freely and no Trustee received remuneration in the year. Out of pocket expenses of £390 were claimed by one Trustee during the year (2021 – £400).

Further details appear in Note 4 to the Financial Statements.

Risks

The Trustees have assessed the major risks to which Youth United Foundation is exposed, in particular those relating to specific operations and finances and wider strategic risks. As with many charities and membership bodies, the organisation’s major risks are around:

• financial sustainability;

• adherence to Grant conditions;

• maintaining sufficient resources given funding uncertainties;

Youth United Foundation 8

Directors’ and Trustees’ report 30 September 2022

• maintenance of positive and productive relationships with its members; and

• changes in public policy towards the youth sector which could result in less alignment between our objectives and those of Government as a funder.

The Trustees believe that by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate these risks. Additionally, the Trustees have led the development of a new risk management system which involves regular review of identified risks and issues and assessment of effectiveness of risk mitigation.

The charity has purchased insurance to protect it from any loss arising from the neglect or defaults of its Trustees, employees and agents and to indemnify the Trustees or other officers against the consequences of any neglect or default on their part. The insurance premium paid by the charity during the period totalled £1,887 (2021 – £1,783) and provides cover up to a maximum of £5 million.

Reserves

Every charity is required to disclose its reserves policy. This is often phrased in terms of keeping sufficient unrestricted reserves to fund a number of months’ normal operations. Historically, under the terms of Youth United grants from the Department of Communities and Local Government and the Cabinet Office, the charity did not generate surplus reserves as the monies were primarily for restricted purposes. As a result, Youth United did not operate with significant levels of unrestricted funds.

At 30 September 2022 Youth United has unrestricted funds of £146,603 available to support the Foundation’s charitable objectives, and restricted reserves of £7,673 primarily related to grant funding for two ongoing projects, Historic England and Royal London, which will be spent in the 2023/24 financial period.

The Trustees continue to review the Foundation’s reserves policy. Based on current activity levels, the Trustees aim to maintain minimum reserves equivalent to 4 months’ unrestricted expenditure, approximately £25,000, which is sufficient to allow the Foundation to continue to seek funding commitments and meet future expenditure and liabilities. At 30 September 2022, the target level of reserves was exceeded which provides further assurance that the Foundation is able to meet its expenditure and pay its liabilities as they fall due.

Fund raising

The Foundation does not fundraise directly with individuals and therefore is not registered with the Fundraising Regulator.

When donations from individuals are received the Foundation aims to protect personal data and never sells data or swaps data with other organisations. The charity manages its own fundraising activities. The Foundation undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year ended 30 September 2022, the Foundation received no complaints about its fundraising activities.

Youth United Foundation 9

Directors’ and Trustees’ report 30 September 2022

Statement of Trustees’ responsibilities

The Trustees (who are also directors of the Youth United Foundation for the purposes of company law) are responsible for preparing the Trustees’ annual report and 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 period which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the Youth United Foundation for that period.

In preparing financial statements, Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102);

• make judgements and 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 proper accounting records that 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.

Each of the Trustees confirms that:

• so far as the Trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and

• the Trustee has taken all the steps that he/she ought to have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Youth United Foundation 10

Directors’ and Trustees’ report 30 September 2022

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.

The above report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by and signed on behalf of the Trustees by:

Trustee: Date: 21-Jun-23

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Reference and administrative details 30 September 2022

Trustees

The Trustees serving in the year and to the date of this report were as follows:

Appointed Trustees Dates Role Julian Barrell Appointed 13 April 2016 and Fundraising Trustee resigned 21 February 2022 (Duncan) Ian Callaghan Appointed 28 November 2022 Trustee Daniel Paul Richard Greaves Appointed 28 November 2022 Trustee Tafadzwa God’swish Gidi Appointed 14 September 2021 Trustee Sukhjinder Singh Kalirai Appointed 24 June 2021 Chair of the Board Andrew Christopher Lison Appointed 7 March 2020 Trustee Alison Mary Oliver Appointed 14 September 2021 Trustee Paul Howard Stephen Re-appointed 23 January 2018 Treasurer Network nominated Trustees Alexandra Peace-Gadsby Appointed 20 October 2016 Network Trustee Edward Martin Sherry Appointed 24 June 2021 Network Trustee

Professional advisers

Auditors: Buzzacott LLP, 130 Wood Street, London, EC2V 6DL Bankers: NatWest Bank PLC, Gredley House, 1-11 Broadway, Stratford, London, E5 4DX Solicitors: Stone King LLP, 16 St John’s Lane, London, EC1M 4BS HR Adviser: Bradic Ltd, The Bell, Cottered, Herts, SG9 9PT

Reference Information

Registered charity number: 1147952 Company number: 07983862 (England and Wales) Registered address: 200B Lambeth Road, London SE1 7JY Telephone: [phone] Website: www.youthunited.org.uk Email: [e-mail]

Youth United Foundation 12

Independent auditor’s report 30 September 2022

Independent auditor’s report to the members of the Youth United Foundation

Opinion

We have audited the financial statements of Youth United Foundation (the ‘charitable company’) for the year ended 30 September 2022 which comprise the statement of financial activities, the balance sheet, statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

•  give a true and fair view of the state of the charitable company’s affairs as at 30 September 2022 and of its income and expenditure for the year then ended;

•  have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

•  have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. 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.

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Independent auditor’s report 30 September 2022

Other information (continued)

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

•  the information given in the Trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•  the Trustees’ report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

•  adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

•  the financial statements are not in agreement with the accounting records and returns; or

•  certain disclosures of Trustees’ remuneration specified by law are not made; or

•  we have not received all the information and explanations we require for our audit; or

•  the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the Trustees’ report and from the requirement to prepare a strategic report.

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees 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.

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Independent auditor’s report 30 September 2022

Responsibilities of Trustees (continued)

In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant are the Companies Act 2006, the Charities SORP FRS 102 and the Charities Act 2011.

• We understood how the charitable company is complying with those legal and regulatory frameworks by making inquiries of management. We corroborated our inquiries through our review of trustee meeting minutes.

• We assessed the susceptibility of the charitable company’s financial statements to material misstatements, including how fraud might occur. Audit procedures performed by the engagement team included:

• Identifying and assessing the design and implementation of controls in place to prevent and detect fraud;

• Identifying and testing journal entries, in particular adjustments made at the yearend for financial statement preparation; and

• Evaluating the incentives and opportunities management have for fraudulent manipulation of the financial statements.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

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Independent auditor’s report 30 September 2022

Auditor’s responsibilities for the audit of the financial statements (continued)

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Katharine Patel, Senior Statutory Auditor for and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

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Statement of financial activities Year ended 30 September 2022

Notes	Unrestricted funds £	Restricted funds £	Total funds 2022 £	Unrestricted funds £	Restricted funds £	Total funds 2021 £
Income from: Charitable activities 1 Investment income Total income Expenditure on: Charitable activities 2 Total expenditure Net (expenditure) / income for the year and net movement in funds Reconciliation of funds: Balances brought forward at 1 October 2021 8/9 Balances carried forward at 30 September 2022 8/9	28,269 48	42,521 —	70,790 48	194,000 8	1,000 —	195,000 8
	28,317	42,521	70,838	194,008	1,000	195,008
	95,899	48,655	144,554	101,941	1,000	102,941
	95,899	48,655	144,554	101,941	1,000	102,941
	(67,582)	(6,134)	**(73,716) **	92,067	—	92,067
	214,185	13,807	227,992	122,118	13,807	135,925
	146,603	7,673	154,276	214,185	13,807	227,992

All income and expenditure derived from continuing activities in the above two financial periods.

The statement of financial activities includes all gains and losses.

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Balance sheet 30 September 2022

Notes	2022 £	2021 £
Current assets Debtors 6 Cash at bank and in hand Total current assets Creditors: amounts falling due within one year 7 Net assets The funds of the charity: Income funds: Restricted funds 8 Unrestricted funds 8 9	33,245 168,994	12,000 230,384
	202,239 (47,963)	242,384 (14,392)
	154,276	227,992
	7,673 146,603	13,807 214,185
	154,276	227,992

Approved by the Trustees and signed on their behalf by:

Chair & Trustee

Trustee

Date:

Youth United Foundation 18

Statement of cash flows Year ended 30 September 2022

Notes	2022 £	2021 £
Cash flows from operating activities: Net cash (used in) provided by operating activities A Cash flows from investing activities: Interest received Net cash provided from investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 October 2021 B Cash and cash equivalents at 30 September 2022 B	(61,438)	79,260
	48	8
	48	8
	(61,390) 230,384	79,268 151,116
	168,994	230,384

Notes to the statement of cash flows for the year to 30 September 2022.

A Reconciliation of net movement in funds to net cash provided by (used in) operating activities

activities
	2022 £	2021 £
Net movement in funds (as per the statement of financial activities) Adjustments for: Interest received Increase in debtors Increase / (decrease) in creditors Net cash(used in) provided by operating activities	(73,716) (48) (21,245) 33,571	92,067 (8) (12,000) (799)
	(61,438)	79,260

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
	2022 £	2021 £
Cash at bank and in hand Total cash and cash equivalents	168,994	230,384
	168,994	230,384

Youth United Foundation 19

Principal accounting policies 30 September 2022

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year ended 30 September 2022.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared under the historical cost convention except for the modification to a fair value basis as specified in the accounting policies below.

The charity constitutes a public benefit entity as defined by FRS 102.

All financial information is presented in British Pounds Sterling (£), the charity’s functional currency, and has been rounded to the nearest pound (£).

Critical accounting estimates and judgements

The preparation of financial statements requires the use of certain critical accounting estimates and judgements. It also requires the Trustees to exercise judgement in the process of applying accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including an expectation of future events that are believed to be reasonable under the circumstances. Although these estimates are based on the Trustees’ best knowledge of the amount, event or actions, actual results may differ from those estimates.

The Trustees do not consider that there are any significant areas of estimation or judgment that affect the financial statements.

Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

There continued to be reduced availability of funding in 2021/22 although the recent award of consultancy services and the administration of the Uniformed Youth Fund by the Government to Groundwork, in collaboration with YUF, is an indicator that additional future grant funding will be available to the Foundation.

Youth United Foundation 20

Principal accounting policies 30 September 2022

Assessment of going concern (continued)

The Trustees believe the cash reserves and level of unrestricted funds is sufficient to allow the charity to continue to meet future expenditure and liabilities as they fall due. The Trustees have therefore concluded that it is appropriate for the charity to continue to prepare its accounts on the going concern basis.

Income

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

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. It includes VAT which cannot be recovered.

Expenditure on charitable activities

The costs of charitable activities comprise expenditure on the charitable company’s primary charitable purposes as described in the Trustees’ report. Such costs include:

• Grant payments

• Consultancy and other related costs

• Office and property related costs

• Publicity and dissemination costs

Support and governance costs

Support costs are those functions that assist the work of the charity, but are not directly related to charitable activities. Support costs include administration, personnel and governance costs and also include support in the form of personnel development, financial procedures, the provision of office services and equipment and a suitable working environment.

Governance costs are the costs associated with the governance of the charitable company and its assets. Included within this category are costs associated with the strategic, as opposed to the day to day, management of the charitable company’s activities.

Youth United Foundation 21

Principal accounting policies 30 September 2022

Financial instruments

The charity only holds basic financial instruments as defined in FRS102. The financial assets and financial labilities and their measurement basis is as follows:

Financial assets –accrued income is a basic financial instruments and are debt instruments measured at amortised cost.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Financial liabilities – trade creditors and accruals are financial instruments and are measured at amortised cost. Deferred income is not deemed to be a financial liability, as cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

Cash at bank and in hand

Cash at bank and in hand represents cash that is available on demand or has a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year are disclosed as short term deposits.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be measured or estimated reliably.

Creditors and provisions are initially recognised at fair value, being the amount the charity anticipates it will pay to settle the debt, and subsequently at amortised cost.

Fund accounting

Unrestricted funds are funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors. The aim and use of each restricted fund is set out in the notes to the financial statements. Expenditure incurred in fulfilling the objective of each restricted fund is charged against the fund balance and shown in the relevant expenditure category in the charity’s statement of financial activities.

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Notes to the financial statements Year ended 30 September 2022

1 Income from charitable activities

Income from charitable activities
	Unrestricted funds £	Restricted funds £	2022 £
Grants receivable: . DCMS Bid . Historic England . Royal London/Silver United Network contributions from members 2022 Total income from charitable activities	3,269 — —	25,276 5,000 12,245	28,545 5,000 12,245
	3,269 25,000	42,521 —	45,790 25,000
	28,269	42,521	70,790
	Unrestricted funds £	Restricted funds £	2021 £
Grants receivable: . DCMS (COVID Support) . Morgan Charitable Foundation . The Prince of Wales Charitable Foundation Network contributions from members 2021 Total income from charitable activities	44,000 — 125,000	— 1,000 —	44,000 1,000 125,000
	169,000 25,000	1,000 —	170,000 25,000
	194,000	1,000	195,000

2 Expenditure

	Direct charitable expenditure £	Support costs £	2022 £
Charitable activities . Grants payable (see below) . Programme costs (see below) . Governance (see note 3) 2022 Total expenditure	12,550 36,105 —	— 88,684 7,215	12,550 124,789 7,215
	48,655	95,899	144,554
	Direct charitable expenditure £	Support costs £	2021 £
Charitable activities . Grants payable (see below) . Programme costs (see below) . Governance (see note 3) 2021 Total expenditure	1,000 — —	— 83,761 18,180	1,000 83,761 18,180
	1,000	101,941	102,941

Youth United Foundation 23

Notes to the financial statements Year ended 30 September 2022

2 Expenditure (continued)

The direct charitable expenditure, known as programme costs, consist of the following principal expenditure:

Programme costs: . Consultancy fees . Premises and office costs . Travel . Insurance . Other costs 2022 Totalprogramme expenditure	Direct charitable expenditure £	Support costs £	2022 £
	72,556 11,158 2,219 1,887 864	35,505 — 600 — —	108,061 11,158 2,819 1,887 864
	88,684	36,105	124,789

Programme costs: . Consultancy fees . Premises and office costs . Travel . Insurance . Other costs 2021 Totalprogramme expenditure	Direct charitable expenditure £	Support costs £	2021 £
	— — — — —	64,638 16,047 923 1,783 370	64,638 16,047 923 1,783 370
	—	83,761	83,761

In the year ended 30 September 2022, one grant payment of £12,550 was made to Southmoor Academy (2021 - one grant payment was made to Tower Hamlets Volunteer Police Cadets of £1,000.

3 Governance

Governance
	Unrestricted funds £	Restricted funds £	2022 £
Auditor’s remuneration . Statutory audit services (including VAT) Recruitment of new Trustees 2022 Totalgovernance expenditure	6,720 495	— —	6,720 495
	7,215	—	7,215

	Unrestricted funds £	Restricted funds £	2021 £
Auditor’s remuneration . Statutory audit services (including VAT) Recruitment of a new Chair of Trustees 2021 Totalgovernance expenditure	6,180 12,000	— —	6,180 12,000
	18,180	—	18,180

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Notes to the financial statements Year ended 30 September 2022

4 Staff costs including key management personnel and trustees' remuneration

The Foundation had no employees (excluding Trustees) in the year (2021 – no employees).

Key management consisted of the Trustees, who received no remuneration in respect of their services as a Trustees during the year. The total emoluments of key management was nil (2021 – £nil).

One Trustee claimed £390 for out of pocket expenses in the year (2021 – £400).

5 Taxation

Youth United Foundation is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

6 Debtors

Debtors
	2022 £	2021 £
Accrued income	33,245	12,000
	33,245	12,000

7 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
	2022 £	2021 £
Trade creditors Accruals and deferred income	14,508 33,455	7,867 6,525
	47,963	14,392

Included within Accruals and deferred income is an amount of £25,000 of grant funding received in advance where the conditions attached to the funding agreement had not been met at the balance sheet date.

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Notes to the financial statements Year ended 30 September 2022

8 Funds

Restricted funds:

The charity’s restricted funds comprise the following unexpended balances of grants held on trust to be applied for specific purposes:

	At 30 September 2021 £	Income £	Expenditure £	Transfers £	At 30 September 2022 £
Historic England Royal London / Silver United DCMS Bid Prince of Wales Fund DCR Allen NHS England	— — — 12,550 1,000 257	28,545 5,000 8,976 — — —	(25,629) (1,500) (8,976) (12,550) — —	— — — — — —	2,916 3,500 — — 1,000 257
	13,807	42,521	(48,655)	—	7,673
	At 30 September 2020 £	Income £	Expenditure £	Transfers £	At 30 September 2021 £
Morgan Charitable Foundation Prince of Wales Fund DCR Allen NHS England	— 12,550 1,000 257	1,000 — — —	(1,000) — — —	— — — —	— 12,550 1,000 257
	13,807	1,000	(1,000)	—	13,807

Transfers represent the allocation of support costs.

The specific purposes for which the funds are to be applied are as follows:

 Historic England

Grant funding for the period 1 April 2022 to 31 March 2023 towards the cost of the “Youth Potential” project, designed to build heritage capacity within the youth sector to better protect and value our heritage.

 Royal London / Silver United

Funding for the delivery of a pilot of the Silver United Project which commenced in April 2022.

 DCMS Bid

Short term supply agreement running from 4 August 2022 to 31 October 2022 for Youth Advisory Services provided to DCMS.

 Prince of Wales Fund

The grant from The Prince of Wales Charitable Fund was provided so that Youth United Foundation could provide funding to Southmoor Academy. The grant was to enable Southmoor Academy to establish a Combined Cadet Force contingent, starting with an RAF section, which was delayed due to Covid 19. The funds were paid to Southmoor Academy in December 2021.

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Notes to the financial statements Year ended 30 September 2022

8 Funds (continued)

 DCR Allen

The grant from DCR Allen was to set up a new unit in a disadvantaged area of the UK, ensuring that young people who would not otherwise have the opportunity to be part of such a group are given that opportunity.

 NHS England

The grant from NHS England was to fund a health awareness badge for uniformed youth organisations.

Unrestricted funds

As at 30 September 2022, Youth United Foundation had unrestricted funds of £146,603 (2021 – £214,185).

9 Analysis of net assets between funds

	Unrestricted funds £	Restricted funds £	Total 2022 £
Fund balances at 30 September 2022 are represented by: Current assets Creditors: amounts falling due within one year	167,802 (21,199)	34,437 (26,764)	202,239 (47,963)
	146,603	7,673	154,276

10 Related party transactions

The Foundation entered into following transactions in the year ended 30 September 2022:

• i. An amount of £4,552 (2021 – £7,629) was paid to the Marine Society & Sea Cadets (MSSC) for the rental of the Foundation’s offices. The rent is at market rates for the accommodation. In addition, a further amount of £30 (2021 – £6) was paid to MSSC for other expenses. MSCC is one of the Network members of Youth United Foundation and Martin Coles, a Trustee of the Foundation until 23 June 2021, was the Chief Executive of MSSC.

• ii. The Foundation made payments totalling £10,421 to EMS3 Limited for consultancy services of £10,325 and travel expenses of £96. Edward Sherry, a Trustee of the Foundation, is a director of EMS3 Limited.

11 Controlling party

The Trustees are members of the charitable company together with representatives from Network organisations. There is no overall controlling party.

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Notes to the financial statements Year ended 30 September 2022

12 Members’ liability

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member or within one year after he/she ceases to be a member, an amount not exceeding £1.

13. Post balance sheet events

On 28 November 2022, the Foundation become the sole equity shareholder on the incorporation of YUF Enterprises Limited, a company limited by shares, registered in England and Wales, company number 14510586.

Youth United Foundation 28