Charity number. 1157252 THE ONSIDE FOUNDATION TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 TTrE ONSIDE FOUNDATION CONTENTS Pag8 Ref•ron¢e and Admlnlstrative Detali 5 of the Charty, its Tnthes and Advisern Trustee9' Report Independent Auditor's Report on the Flnanclal Statsments Statement ol Flnan¢ial Activitie5 7-10 11 Balance Sheet 12 Slatement ol Cash Flows 13 Notes to the Financial Statements 14-26 THE ONSIDE FOUNDATION REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023 Trustee5 WR Warburton MBE. Chair CW Holroyd CBE DL WGR Lee￿oneS {ar4)ointed 13 April 2022) Charlty iegi5tered number 1157252 PTin¢lpal offlce Atria Spa Road Bolton BL14AG Independent auditor cr¢W￿ U.K. LLP 3rd ft¢or The Le￿con Mount Street Manchester M2 5NT Bankers Handelsbanken 6 Tho Courtyard Calvin Street Bolton BLI 9PB Solicitors Bates Wells 10 Queen Slreet Pla EC4R 1BE Page 1 THE ONSIDE FOUNOAnON TRUSTEES. REPORT FOR THE YEAR eNDED 31 MARCH 2023 The Trustees present their report with the financial statements of the chaTity for the year ended 31 March 2023. The Trustees have adopted the provisions of Acwunling and Reporting by Ch8rilies'. Statement of Recommended Pract￿ applicable to charities preparing Iheir accounts in accordan￿ wf(h the Financial Reporting Standard applicable in the UK and Republic of IreEand (FRS 102) leffeGllve 1 October 20191. Aims AND ACTIVITIES ObJ•ctlves and aiTns The Charity's ¢A)jects are to appty fvnds at its dl$¢retion (including through the makiny of donations or granls to olhei charitable organIsat￿￿n5I in ordeT to help and educate chihlren and young people through their lel8ur& time activths by realising their wtentiaS in order that they may grthy to full malunty a5 Indiwduals and members of society and that Ihelr life chan￿5 may Improve. The scope and functtoD of the FoundatKJn includes r￿Ning grants from other donors (for example, th¢ UBS Oplimus Foundation, the Holroyd FoundalKJn. the SeTOUSSi Foundat￿n arKI John Roberts). Exlernal fvnders make their grants lo the Foundation then include su¢h monies in a comp05ile grant lo individual Youth Zone piojecls that are under development (in the case of th8 2022123 accounts, this includes Hammersmilh and Fulham Youth Zone, Bamsky Youth Zone. Grlmsby Youth Zone and Bristol Youth Zone). Certain operattng Ywth Zones also received revenue donat￿￿5 lo support their running costs. The Trustees recognlse thal In future years the Foundatlon will continue to manage the ll¢Jw of fvnds Into multiple projects. ACHIEVEMENT AND PERFORMANCE Charitsble actlvitiès The key cllleria used to a5ses5 the success of the Ftyjndation Comprise: .The level of funds raised lo develop nthv and existing Y(rtrth Zone5 .The ability lo provide support to Onside Youth Zones •The extent of new ¢)penings of Youth Zone5 to expand the Nelworf( In 2022123, Iho Charivs main achievements were: .SeGurlng a total of £2.5m of income for developing a number of new and eMtng Youth Zone projects acTOSS the country, as well as supporting the growth and devebjpment of Onside Youth Zones {'OnSvJe'l to further increase the pace and qualty of its own ambltlons in expanding the NetWQTk The arrounls raised during the year indud8d the folluwin9'. 1,250,1￿0 for support of OnSide'$ running costs •£275,000 for Grim$by Youth Zone .£250,000 for Hammersmllh and Fulham Youth Zone .£204,500 revenue support for various operalin9 Youlh Zones .£150,000 for Brisloy Youth Zone .£20.000 for Bamsley Youth Zone *PrOV￿aln9 OnSKie (Charity No. 1125893 Company No. (6591785) with support tolalllng £1.22m to alhJw the charily io conb'nue the devthpmenl ofthe existing Youlh Zone NetworlL The extent of support provided lo Onside wa5 in line wrth OUT plan5 and. although no swlfi¢ target 15 set for the total funds rnb8ed. Ihe16vel achieved was broadty in line wth expectation$. .The opgning ofthe Warrington Youth Zone tODk place in 2022. Page 2 THE ONSIDE FOUNDATION TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 AIARCH 2023 FINANCIAL REVIEW Investment powers and pollcy Under the Trust Deed, the Charity has Ihe Fower io deposit or Invest funds in a mannor whtch thg Irustees seg fil. Investments are made where required to further the aims and objecls of the charity. During the year. thg Charity continued lo hold specific mana3ed investments to be held for the medium to lon9 term with the lol amount invested lo date of £4.5m. A documented investment F)oliGy has been agreed by the Truslees and revised sinG8 the year end as noted bebw and a Foundat¢on InvestrneTht Committee (now comprSsing Mr.W.R. Warburton and Mr.W.G.R. Lees-Jones) was estsblished in May 2018. The Investment Committee mel three times foTmally during Ihe year ended 31 March 2023 but have held inforfflal discussions on a Tegular basis. In the future il is envisaged that an appropriate proportion of Ihe Foundation's assets will be hekl in cash in order to meet the Charitys comrnitrnents to support Onside and the exlsting YoLrth Zone Ne￿Ork. Since the year end, Ihe Trustees have app)inted Waverton Investment Management to manage the Foundation's inves1￿￿nt portft)l￿1. Steps have b*n taken to liqutdatè the existlng inveslmenls and embark on a new strategy linked to the revised lune h￿1ZOn in the Foundat(on's curfent plan5. ReseThe5 policy The Trustees have established a r8seNes polry. In line wlh Chanties Commi$5ion guidance, whlch 8ppropri8lely refleds the risks lo which the Charity is exposed. In compliance with thi5 policy. the Tiu$tges review, al least on an annual basis. the sum which they wish to hold in unre5trrcled funds and the basis for that figure. The reserves policy considers ongoirvj fixed costs. possible unloreseen capital and revenue funding requirements and potent￿1 fluctuatiDns in longer term investment balances and income. It does not consKler expenditure linked lo restricted projeds which are covered by restllcled fvnds. A8 part of Ihls policy. Ihe Trustees may also. from time to time. designate specif￿ amounts of unreStrict￿j furK15 for particular puri)o$es such as commitments lo support the fuhning costs of OnSwJe. $¥Jch that Yree reservo5, are reduced. At 31 March 2023 total unreslricted funds were £7.42m. However. as noted 8bove. £4.79m of unreslricled fund5 related lo specrfic managed investments, to be held for the medium temi. lo meet the Foundation'5 long?r tgrrn requlremenls. A lurther £0.6m has been designated by Ihe Trustees for specific purposes. This effeclNely leaves free reseives in the form of liquid funds of approximately £2.Om. which the Trustees believe is more thon sufftient to meet the FoUnda￿n,¥ Current requirements. Going Concern In prepaiing the financk?I ststemenls. the Trustees are responsible for assessing Ihe Charty's ability to continue as a going concern. In light of the Foundatkjn's strong balance sheet and liquidity posit￿)n, the Trustee5 are Confident Ihat the Ch8rity y￿11 be able to opernte IOT the foreseeable futuie and, therefore. have prepared the financlai slatemenl$ on a goin9 con￿rn basis. Financial position A summary of the income and expenditure for the yeai ended 31 March 2023 is as foll(MYs." The Foundation generated total income of £2.52m in 2￿22￿3. In¢￿r￿d expendtture of £5.36m and suslained an unrealised loss on Investments of £0.86m duiing the year. broadly In line with the overall stock market movoments, resuking in a net def￿rt of £3.71m. CbJsing fund balances al 31 Mar¢h 2023 tolalled £9.15m of whith E4.36m was represented by cash balan￿. The inveslments were valued al £4.79m. still slightly ahead of original cosL Principal lunding sources land fundrai$lng statsment) The Trustees record their thanks lo all those grant funders who have made donationg. or uted their commitment to support the work of the Charity. The generosty and confKlen¢e demonstrated by those individuals and organisations backing The Onside Foundation and Onsid? is a huge source of encouragement for all involved in the Charity. Special thanks are extended to Strateg￿ lunders who committed capital and revenue lunding this year, which included the Seioussi Fountlation and John Roberts (in partnership with UBS Optimus Foundallon), togetherwith the Holroyd Foundation, the SJP Charilable Foundation and Ros5 Tumer. Page 3 THE ONSIDE FOUNDATION TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 The Foundation's fundraising actNities ar8 carried out by Onside on its behalf. The approach to fundrai51ng and compliance with fund wsing regulations and code of practicE are sel oul in Onsides Trustees, Report and Financial Statements. PLANS FOR FUTURE PERIODS In the period subsequent to 31 March 2023, Thg Onside FoundalKJn has already. or aims in the future, to.. .Complele the grant offers lo approved Youth Zone projects induding those in Hammersmtlh and Fulham, GTimsby, Barnsley and Brfstol. .Work wlh Onside and ils supporters in order to Secure further capital funds for the expansion of the Onsidè Youth Zones Nthork.. .Develop and implement Grant Agreements with future Youth Zones in order 10 81rengthon the relationship etween The Onside Foundation and future Youth Zoneg for the benefit of the Onside Nehvork of Youth Zones and Ihp young people they serve.. •Explore opportunities lo secure funds that may be appl&J, by vray of g￿nt. ty the Trustees towaTd5 the revenue requirements of Youth Zoneg in Ihe Onside Netwoth. In July 2022. the TN$lees. in recognition of a changed strategy to undertake a Mar￿ed wind d¢w4n of the Foundalion. Introduced Tha OnSKle Foundation Impact Fund ('the Imi)act Fund,) whlch was made avallable for Ihe distribulion of grants, to individual Youth Zones or Neknrk wide collaborattons, to support capital or revenue projects that grow and improve the Onside NetworKs offer to young people. The first Iranchg of such grants lotalling £1.Om for three projec15 was confimied during the year. whik emergency sustainabilty gran15 lotalling £0.75m were also award￿ ID Youlh Zones. It is intended thai the Impact Fund will utili5e the majNity of the Foundalion'5 ex5ting unrestricted funds. with grants to be made over IhE period to De￿rnber 2026 (or until the Impact Fund is depleted). PUBLIC BENEFIT AND VOLUNTEERS. CONTRIBUTION Publlc Benefit All the adivities of the Charity {as summari5ed above> were undertaken to lurther Its charitable purp058s for public benefiL The Trustees have coMpl￿d with the duty in seclion 17 of the Charities Ad 2011 to have due regard to the publlc benefit guidance published by th8 Charity Commissio Voluntee Throughout Ihe perhjd all member5 of the board of Trustees made valuable voluntary contribullon$ to the Charilvs woth in tgTms of govemance, prDfessional and business experien¢e. fln8ncial planning, fundraising ond leading initi*Nes. Such contribu￿n$ were, on aver8% equwalenl to one fijll day exh calendar rrv)nth. STRUCTURE, GOVERNANCE AND MANAGEMENT Goveminy document The Onside Found*ion is an unin¢orpoTaied charitable trust (Charty No. 11572521 currendy with three INslee8,' Ross Warburton (Chair). Bill Holroyd and Will Lees-Jones. The charity 15 governed by its TTUSt Deed dated 24 March 2014. Management of the Charitls affairs 15 vested in the Trustees. Recrultmgnt and appointment of tvustees New truslees will be recruited according to the needs of Ihe ch8rity and th• sukability of possible candidates. A unanimous approv￿ of existing Trustees would lead to their appointment. The Trust Deed slates that Ihe number of truslees shall have no ma￿nuffl and shall TK)t be le5S than three. As set out In the Trust Deed. no business shall be conducted at a meeting of the Iruslees unless they are present throughout the meeting: a quorum of at least kn tfU5tees is required. Page 4 THE ONSIDE FOUNDATION TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 hlARCH 2023 Trustggs, Inductlon and tralnlng Ne￿Y appointed injslees are selected with regard to the skills. knowledge and experien¢9 needed for Ihe effeclive administration of the Cha￿ty. New trustees will be supplied wrth a copy of the Trust D*J, antj any amendments made lo it, and a copy ofthe Charitys latest report and slalemenl of accounts. Organisational struclure The Onside Foundalion is g¢Mrned by its Trustee Board wh￿h is responsible for setting the stroleglc dlreclion of the organisatron and the policy of the charity. The Trustees carry Ihe ultimate responsbi ility for the ¢onduct of The Onside Foundatlon and for ensuring that the charity satisfies ts legal and contractual obligat¥)ns. The Trustees are r9quifed to hold at least two ordinary meetings each year. bul other meetings may lake pla¢0 in the fom of videoconferencing as the Trustees decide. provided Ihat the form chosen enables th2 Tru5tQ05 both to see and lo hear each other. In reality, a tolal of seven meetings were held during the year ended 31 March 2023, with four held face lo face and the other Ihre8 held by videoconferen¢ing. The Tnjslees delegate the day to day operalton of the organisalion lo senior management of Onsido, together wtth an external consu￿ant who supports the frustee Board. The Trustee Board is independent from man4emgnL Related parties Transactions with related parties wll be discloseLI in a note to the financkal ststement5 and in accordan¢e wlh Charities SORP {FRS102). Rlsk management The Trustees have considered Ihe major risks to vlhith Ihe Chavity 15 exposed and have esiabli5hed suitable risk management and control prcoedures. The risk register is presented lo Ihg Trustees for ¢onsiderallon at each Board Me¢tiro. The Charil*s principal risks currenlty relate to a potential shortage of capital funds lo meet project devdopmenl opportunitEs and the impact of a general deterioration of the wider financtal Glimate on Ihe ability to raise funds. There is also potential reputslion81 damage IAxn the poor performance or failure of a Youth Zone, inevitably a more signrficant risk folk)wng the Tecent COVID 19 pandemic. The Tru5tee5 specifically reviewed these risks in response to the onset of COVID 19 and subsequently rnade appropiiate revisions to Ihg FoundalK)n's risk register. However. as noted atrfwe. in view of the strong balance sheet and liquidity posttion of the Foundation. the Trustees do not ant￿ipate any major IThp￿t from th8 various risks (including the residual impact of COVID 191 on the FOUndat￿n.5 operat#)ns in the foreseeablp future. TRUSTEES, RESPONSIBILITIES IN RELATION TO FINANCIAL STATEMENTS The Trustees a￿ ￿sponSible for preparing the Truste8s' Annual Report and the financial statements in a¢¢ord8nce wtth applicable law and United lfjngdom Accounting Slandards (unit￿ Kingdom Generally Accepted Accountlng Practice). The law applicabb lo charities In EngLqnd and Wales, the Charities Act 2011, Charity IAc£ounls and Reports) Regulations 2CQ8 and the provisions of the Trust Deed require the Tw5tees lo prepare finanGial statements for each financial year, whith gN8 a true and fair vie•V of Ihe stale of affairs of the Charty and of the InGome and expenditure of the Charty for that perrod. In preparing these fin8n¢ial slatemenls. the Trustees are required to: select sui18ble accounting po[￿leS and ltr￿ appty them consistenty: observe the methods 8nd principles in the Charities SORP.. make judgements and e51imales that aR reasonable and prudenl: ststg whether applicabl8 UK A¢¢ounling St8ndard5 have been followed, Subject to any malettal departures disckised and explained in Ihe financial statements- prepare the financial statoments on the going concem basis unless il is inappropriate lo presume th* the Charity will continue in business. The Trustees a￿ responsible for k￿pIng adequate accounlHw reca￿S Ihat disGlose with ￿tt80nable accuracy at any time the financlal position of the Chartty and enable them lo ensure that the financial statemenls comply V4ilh the Charit¢es AGt 2011. They are also ￿sponSible for safeguarding the assets of the Charity and hence for tsking reasonable steps for the prevention and deleclion of fraud and olher irregularth. Pages THE ONSIDE FOUNDATION TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 STATEhlENT AS TO DISCLOSURE TO OUR AUDrroRS Tho Trustees confirm that so far a5 they are aware. there b no relevant aud(( Inf0M￿tIon for which the Charitys auditors are unaware. The Trustees have taken all Ihe steps that U)ey ought to have taken as Trustee5 in order to make themsefves aware ol any r*v8nt audil infomial#)n and to establish th* the Charily's audiiors are aware of that information. AUDITORS A resolutton to reappoint Crowe U.IL LLP will be proposed at theAnnual General MeelirvJ. Approved by Order of the members of the board of Trustees on 7 No¥ember 2023 and signed on their bfrhalf by.. Page 6 THE ONSIDE FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ONSIDE FOUNDATION Oplnlon We have audit￿ the finan¢ia] stalements ol The Onside Foundalion (Ihe 'charityl for the year ended 31 March 2023 which comprise the Statement of Financial Activitie5. the Balance Sheet, the Slalement of Cash Flows and the related notes. including a summary ol significant accountin9 pJlicies. The financk91 reporting fiamework Ihal has been applied in their preparation Is applicable law and United Kin9dom Accounting Standards. Including Financi41 Reporting Standard 102 The Finan¢ial Reportlng Standard app[￿ble in the UK and Republic of Ireland. (Unfted King&Jm Generalty Accepted Accountlng Practice). The financial 81alemenls have been prepared in xordarKe wfth A¢¢ounling and ReportSng by Charitie5 preparing their accounts In accordance wilh the Financial Rewrting Standards appltcable in the UK and Republ of Ireland IFRS 102) in preferen¢e lo the Attounting and Reportrng by Charities.. Statement of Recommended PraCt￿e issued on 1 April 2005 whtch is referred to in the extant re9￿￿tionS bul ha5 beon withdrawn. This has been done in order for the aC￿ufits to provide a true and fatr wew in accordance wlh the Generally Accepted AccounliryJ Pixtice effethe for reporting pertods beginning on or after 1 January 2015. In our oplnion the financial statements.. give a true arKI faif wew of the state of the ch8rflls affairs as at 31 March 2023 and of ts incomlng resource5 and appliCat￿n of resources for the year then ended., have been properfy prepared in accordance with United Kingdom Generalty ￿epted Accounting Practice. and h8ve been prepared in accordance with the ffjqUiTements of the Charities Act 2011. 8asls fol opinlo We conducted our audit in accordance with International Standards on Auditing (UKI (ISAS {UKII and appl￿ble law. Our re5ponsibililtes under those standards 8re furiher described in thg Audit(x's responsibllilie5 for the audf( of the financial slalernen15 section of our Teport. We are independent of the charity in accordance wlh the eth￿8[ requirements that are relevant to Dur audit of the finan¢ial slalements in the United Kingdom. inGluding the nancial Reporting CoL¢ncil's Ethical Standard, and we have fulfille(J our other ethical responsibililEs in accordance with these requirements. We beI￿ve Ihat the audit eviden￿ we have obtained is suffKient and appropriate lo pr¢)vlde a basts for our opinion. Con¢lusions rglatlng to going concem In auditing the financial slatements. y￿ have ¢onduded that the Trustees, use of the going concern basis of accountlng In the preparatTon of the financial slatements is appropriate. Based on th& work we have perlomied, have not idertified any material uncert8tntie5 relaung lo events or conditions that. Individualty or ¢ollectively. may cast si9nif￿ant doubt on Ihe charty's ability tr> continue as 8 going c¢)ncern for a period of al loa5t tsvelve monlhs from when the financknil stalemenl$ are authori$od for t88ue. Our responsibilitie5 and Ihe responsibilities of the Trustees with respect to goin9 concern are described in thè relevant sections of thi9 reporL Page 7 TrIE ONSIDE FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ONSIDE FOUNDATION (CONTINUED) 0thgT inlomiation The other Information ¢omprises the informalion included in the Annual Report other than the financlal 9t8tements and Auditor's Report thereon. The Trustee5 are responsible for the other information contsined wthln the Annual R¢port. Our opinion on the financial statements does not cover the other information and, except to the extent otheThMse explicitty stsled in our repoit we do nol express any fom of assurance concluslon Ihereon. Our iespon5ibility is Io Tead the other informatlDn and. in doing so. consider whelheT the other information is materially incon5islent with the financial ststements ¢1 our knowledge obtain&J in thg course of the audit, or otherwise appears to be malerially mtsstaied.ll we identhfy su¢h maleriaj inconsistencies or apparent material misslatemenls. we are required to detemiine whether thi9 gives Tise to a material misslalemenl in the financial slalements Ihemsefve$. If, based on the work we have performed. we conclude that there is a material misslalement of this other Information. we are requited to report that fact. We have nothing to report in this Tegard. Matters on whtch are Tequired lo report by exceptlon We have nothing to report In respect of the folk)w*ig maters where thg Ch￿itIeS (Accounts and Reports) RegulalKJns 2008 requlres us to report lo you rf, in our cpinion: the infomi*ion gNen in the Twstee5' Report is inconsistent in any mateiial respect Yllh the financlal statements,. or suftictent accounting records have been kwL or the financial 51atements are not in agreementwth the a¢counting re¢ord$ and return5" or we have r￿t received all the infomiation and expl￿at￿)n5 we requi￿ for our a￿dIt. R95ponsibilitios of trustees A5 explained more fully in the Trustees, Responsfoilitles Statemen( the T￿￿tee5 are responsible for the preparation of the financial slalements whi¢h glve a true ano fair viffiv, and for such intemal control as the Tnjstees delermlne Is necessary to enthle the prepar*hJn of financial statements that are free from material missl8tem8nt. whether due lo fraud or error. In preparing Ihe financiaj Statements, the Twstees are re5F#Jnslble for assesslng Ihe ch8rW5 ablllty lo continue as a going conGern. disclosing. as applicable. matters related lo going concem and usiNJ the going concern ba515 of accounting unless the Trustees either ￿tend to Iquidate the chadty or lo cease op9rations, or have no realistic alternative bul lo do SD. Page 8 THE ONSIDE FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ONSIDE FOUNDATION (CONTINUED) Audltor's responslblllties for the audll of the fumncial statements We have been appointed as auditor tsnder sectton 144 of the Charilies Acl 2D11 and report in accordance wilh the Act and ielevant regulations matle or having offect theTeunder. Our objectNes are to obtain reasonab￿ assuran￿ a￿ut whether the financial statements as a whole ale free from material mS$stalement, whether due to fraud or error, and to issue an Auditorfs Rery)rt thal includes our opinion. Reasonable assuran￿ is a high level of assurance. but is not a guaranlee that an audit conducted in accordan¢g ISAS {UK) will aNYays detect a material misstatement when rt &Xi5ts. Misslalernenls can arise from fraud or error and are considered m*erial il. indwidually or in the aggreg*. they could reasonably be expected lo inluence the economi¢ d¢Gistons of users taken on the basis of these financial slatemenls. Irregularities. including fraud. are instan￿5 of Mn-compliance with law$ and regulations. We design piocedures in line with our responsibilities. ouuined above, to delect material mis51alements in T¢spect of irregubrliies, Including ftaud. The extent to which our proodures are capabla of detecting irfegularities, includlng fraud ts detsiled below.. We obtained an underslanding of the leg818nd wulatoryframeworts within which 117e charity operates, focusing on those laws and regulalM)ns that have a direct effect on Ihe detemiinalion of material amounts and disdosures in the financial slatemenls. The laws and regulations we ¢on$idered in this conkxt weft the Chariks Act 2011 legislalion. We Idenliffed areas of laws and regvlations that could reasonabty ￿ elpected to hevo a material effe¢1 on the financial statements from our sector experience, through discussions wrth the Twslee5. and from inspections of the Chariligs, board minutes and legal and regulatory correspondance. We discussed the wltcies and procedures regarding complrance with laws and regulaltons with the Chair. We assessed the susceptibility of thg financial statements to materi81 misstatement. including how fraud might occur, by meeting with management from relevant parts ol the business lo understand where management considered Iheie was a susceptibility to fraud. We also considered the potential for rnanaggment to manage earnings and influence the perceptions of Ihe )Inancial statements. We Ident￿led the greatest risk of material impact Im the finan¢ial Statements from irregularities, including fraud. lo be the overr¢de of controls by mana98ment and the timing of recognition of Inc¢)me. Audit procedures performed by the engagement team induded: Evaluation of the design of controls eStab￿shed to address the rr5ks related to material irregulaTilies in the finan¢ial statements- Testing manual journal entries. in particularjoumal enlr¢e5 relating lo managemenl 9stimates and entries d¢lermined to be large or ￿lating to non-routine transactions. Evaluation of income iecognttK)n po[￿leS and anyjudgements made around income reeognilion,. reviewng the income system for significant deftciencies of susceptibility to fraud., Challengin9 assumplkjns and judgemen15 made by management in their significant 8ccountsrtg estimates: Agreement of the financial sfatemenl disclosuies to undeTtying supporbng documentation: Making enquiries of management.. Review of minutes of boaTd meetings throughout the period; Our audit prccedures were designed to respond io risks of material misslalemenl In the financial slalemenls, recognÉsing that the risk of not detscting a material misstatement due to fraud is higher than Ihe risk of not detectin9 one resuKing from error, as fraud May involve deli￿rate ¢OnC￿Ment by, for example, forgery. MIS￿preSenta1IOnS or throu9h collu5ron. There are inherent limrtation$ in the audit procedurgs perfomied and the further iemoved non-compllance wtth laws and re9ulatTon5 is from the events and Iran5acl¥)ns reflected in th8 financial statements. Ihe less like￿ we are to become aNare crf IL Page 9 THE ONSIDE FOUNDATION INDEPENDENT AUDrroR'S REPORT TO THE MEMBERS OF THE ONSIDE FOUNDATION IGoKnNUEDI Owlng to the inhergnl limitatiort5 of an audtt, there ts an unwordable rfsk thatwe may noi have detected somo material misstatements in the financial staiements. even though we have property planned and performed OUT audit in accordance wrth a￿lting Standards. We are not fesponsbi le foi preventing non-¢ompli8ncg and cannot be expected to delect nononalions and legacEs Fundraising Investments 1.548.072 874.600 25,000 2.422.672 25,000 69,495 3,014,842 231,250 11,843 69.495 Total Income 1.617.$67 899,600 2,517,167 3.257,935 Expenditure on: Charitable actlvkle3 1 ASS,789 3.907.295 5,363,084 5,671.580 Total expenditure 1.44789 3.907.295 6.363.084 4671,580 Net incomel{exp¢ndlture) befole net Ilo5sesllgains on Investments Nel Ilossesygains on investments 161.778 1863,306) {3,1107.6951 {2,845,917I f2.413.645J 1863,3061 409,891 Not movement In funds 1701.528) {3,007,6951 13,709,223> (2.003, 754) Reconclllation of funds: To181 funds brought fornvard Net movement in funds 8.120,500 4.734,688 12,855,188 14.854942 1701.528) 13.OOY.6951 13.709.223) (2,LIOI 754J Total fund$ Carried for¥vard 7.418.972 1.726.993 9.145.965 12,855,188 The Statement ol Financkql Actmties includes all gains l¢)sse5 recojnised in the year. The notos on pages 14 to 26 fomi part of these financial gtatements. Page11 THE ONSIDE FOUNDATION BALANCE SHEET AS AT 31 MARCH 2023 2022 Note Fixed assets Investments 10 4792.331 &655,637 4,792,331 5,655.637 Currollt assets Cash at bank and in hand 4362,Tf6 7,387.686 4,362,776 7,387.686 Creditors: amounts falllNJ due within year 11 {9.1421 (t88, 135) Net current assets 4,353,634 7,199,551 Total assets less current liabllStles 9,145,965 IZ855,188 Total net assets 9,145,965 12,855, 188 Charlty funds Re5tricled fund8 Unregtrlcled fvnds 12 12 1,726,993 7.418,972 4.734,688 8, 120.500 Total funds 9,145,965 12,855,188 The financial statements were approved and a￿or￿Sed for issue by Ihe Trustees on 07 November 2023 and svJned on their behav by.. bLfja WR Ylarburton MBE The notes on pages 14 to 26 fomi part ofthese fina￿la1 statemerts. Page 12 THE ONSIDE FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 Cash flows from operating a¢tivities Net cash used in operating aclmties 13.094,405) (2.247.004) Cash flows from Investlng actlvlties Dividends. Interests 8nd rents from investfflents Purchase of investments 69A95 11.843 f2,000,OOOJ Net cash provided byllused in) investing aclbvitles 69A95 11,988,157) Cash flows from financing actlvltles Net cash pmvided by financing activilles hange in cash and Cash equivalents in the year Cash and ¢ash equNalents at the beginning of the year 13,024.910) (4.235,161) 7,387.686 11.622,847 Cash and cash equivalents at the end of the year 4,362.776 7,387,686 The noles on pages 14 to 26 fomi part of these firtancial staternents Page 13 THE ONSIDE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 General infom)ation The Onslde Foundalion Is an unincorporated ¢harity. registered in England and VVale5. Futher details are included in the Reference and Adminlstrative Details page at the start of these financial slatemenls. Accounting policie5 2.1 Basls of preparation of financial statements The financial Statements have been prepared in accor(18nce with the Charlties SORP IFRS 102) - Accounting and Rewrttng by Charities.. Slatemenl of Remmmended Practice applicable to charities preparing their accounts in accordance wth the Flnancial Reporting Standard applicable in the UK and Republ￿ of Ireland (FRS 1021 {effeclive 1 January 20191, the Financial Reportiny Standard appI￿able in the UK and Republic of Irel*d (FRS 102) and the Charitie5 Act 2011. The finanoal $t*ments have been prepared iD give a Irue and fairf v￿W and have departed from the Charities (Accounts and Reports} Regulations 2008 only lo the extent required to PTovide a 'lrue and fairf y￿W. This departure has involved folk)wing the Charities SORP (FRS 102} published in October 2019 rather than the Accwnting and Reporting by Charities.. Ststement of Recommended Pr￿t￿ effectNe from 1 April 2005 wNch has s￿ce been W￿h￿laWn. The Onside Foundalion meets the definii*)n of a publK benefit entity under FRS 102. Assets and ILqblI1￿es are initsalty ￿cOgnised at historical cost or tran￿liOn value unless Othernise staled in the relevant acwunling wlw. 2a Going concern In preparing the financial stalements. the Trustees are respons￿¢ 18 for assesslng the Charivs ability to continue as a going concem. In light of the Foundalion's strong balance sheet and liquidity position. the Trustees are confident thal Ihe Charity will be 8ble to opeBle for the foreseeable future and. therefore. have prepared the financial statements on a g(Mng concem basis. They do not consider Ihat there are any rnaerial un¢ertaintE5 in respect of using the golng concern ba81s. 2.3 Income All income is rwnlsed once the Charty has entiuemenl to the income. it is probable that Ihe income will be Teceived and the amount of incrAne re¢efvabl8 can be measured refiabty. Grants are induded In the Statement of Financial AdNities on a receNable basig. The balan￿ of income re¢ewed for specffj￿ purposes but not expended during the perp)d is shown in the relevanl fvnds on the Balance SheeL Where income 15 r￿1ved in advance of entiuemenl of recelpt, Its recognibon is deferred and included in creditors as deferred Income. Wheft enttdement occurs before income is recewed. the income B accrued. Page 14 THE ONSIDE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies f¢ontinuedl 2.4 Expendltvre Expenditure is Tecognised once there is a kgal or construclwe oblig*ion to transfer econ¢)mic benefft to a third patty. it is Probable that a transfer of economic benefrts will be requiied in selllemenl and the amount of the obligation Can be measured relkgbty- Expenditure is classified by activjty. The costs of each activity are mado up of the total of dire¢t ￿$ts and shared costs, including support cos15 involved in undertaking each activity. Direct costs attributable to a single aclivty are ailocaled directly lo that activty. Shared costs which contribute to mote than one actlwty and support C0515 which are not attributable lo a single aclivtty are apporttoned betw*n thos¢ activitie8 on a basis consistent wth Ihe use of re8ouTces. Central st8ff costs are allocated on the basis of tsmo spen( and depreciation charg¢s allocated on the porlion of the assevs use. Expenditure on charitable activit￿$ is in¢urred on dir&ty undertakin9 the actNilies which further the Charity's ofy'ectives, as well as any associated 8UPPOrt costs. Grants payable are Charged in the JEar when the offer 1$ made except in those cases where the offer 19 conditional, such grants being recogni5ed as expenditure when the conditions attachSng are fulfilled. Grants offered subject lo condtlions which have not been rnet al the year end are noted as a commitment. but nol awued as expend*ure. All expenditure is inclusive of I￿ecoverable VAT. 2.5 Government grants Government grants rejating to tangible )Ixed assets are treated a$ deferred income and rele8sed lo the Statemenl of Financlal Activities over the expected useful live5 of the assets concemed. Clher grants ar9 crediled lo th? Statement of Fnancral Activths as the rplaled expenditure ts Ir￿Urred. 2.6 Interest receivabl? Inleiest on funds hekl on deposit is induded when recekvablp artd the amount can be measured rglrabty by the Charity.. thi5 is nomialty upon notification of the interest paid or payable by the institution with whom the fvnds are deposrted. 2.7 Investments Fixed asset investments are a form of financial insttumenl and are inttwlty reco9niged al their transaction cost and 5ub5equentty measured at fair valuo al the Balan￿ Sheet dale. unless Ihe value Cannot be me8sure(I reliably in which case it is measured al cost less impairment. Investment gains and losses. whether reall￿ or unrealised, are combined and piesenled as 'Gainsl(Lo88es) on inveslmenls, in the Statement of Financial Activities. 2.8 Cash at bank and in hand C8gh at bank and in hand includes cash and short4emi high￿ Ilquhl investrnenls with a maturity of three months or less from the date ol acquisrtion or opening ol the deposlt or siniLgr account Page 15 THE ONSIDE FOUNDATION NOTES TO THE FINANCL4L STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies Icontinued) 2.9 Llabllltles and proylslons Llabilities recognised when there is an obltgakn.on at the Balance Sheet dale as a ￿SuIt of a past evenl. it is probable that a transfer of ecommic benefrt will be requiied in settlement, and the amount of th¢ setdement can be estimaled reliabty- Liabilittes are rewnised at the amounl thal the Charity an￿¢[PaleS it will pay lo settle Ihfr debt or the amount f( has recetved as advan¢ed payments for the or seNces it must provide. 2.10 Flnanclal Instruments The Charity only has financial assets and finanual ￿abl1￿1 es of a klnd that qualfy a$ basic finandal Instrurnents. 8asK financ4al instruments are initially recognbsed al transa¢tlon value and subsequently measured at their settlement value Y4ith Ihe ex￿￿tion of bank loans whkh are subsequendy measured at amorti5ed cost using the effeclive interest melh¢xl. 2.1 q Fund accounting General funds are unrestrictgd funds which are available foT use at the digcrelK)n of the Trustees In rth¢rance of the general obieclives of the Charity and have not been des￿anated for other purpos8S. Designated funds comprise UnreSt￿ted fuThJ$ thal have been sel aside by thè Trustee5 for particular purposes. The aim and use of each despJnated fund is sel out in the notes to the financk41 stalerrEni5. Restricled funds are funds whtch are lo bo used in a(xordance with specific restrictlons imposed by donors or which have been raised by the Charity for particular purposes. The costs of ra181ng 8nd administering such funds are charged against the specffic fund. The aim and use of each restrioted fund is set out in the noles to thefir￿I￿aI statements. Investmenl income, gains and losses are ali(Kated lo the appropdate fund. 2.12 Critical accountlng estimateg and aTea5 of Judgment Estimates and judgments are Continual￿ evaluated and are based on historical expe￿nce and olher la¢tOTS. including expectations of future events that are believed to be reasonabte under Ihe circumstances. Crthal accounting estimates and assumptwjns:. The trustees conspjer that there are ￿rrenty M SIgn￿¢ant eslimales or areas of judgemental uncertainty. Page16 THE ONSIDE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Income from donatlons and lega¢ies Unrestrlcted Restricted funds funds 2023 2023 Total funds 2023 Dona￿n8 Grants 72 2,422000 1.548.(rt)O 874,600 1,548,072 874,600 2,422.672 UnTrsfv7cle(J funds 2022 Restocled fvnd$ 2022 Tolal funds 2022 Donations Gr8nl$ 899. 13g Z11&649 899. 193 211&649 3.014, 788 3.014.842 IncoTne frorn 0th9r trading actlvltles Income from fundraising events Restricted funds 2023 Total fund5 2023 Gift Akl 25.000 25,000 Total funds 2022 funds 2022 Kensington Palace Fundraising Dinner Gift Aid 225,000 6,250 225,000 6,250 231,250 231,250 Page 17 THE ONSIDE F(iiINDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Investment income UnT8StriGtgd funds 2023 Total funds 2023 Bank Interest 69,495 69.495 un￿8117Cred funds 2022 Total lunds 2022 Bank Inleregt 11,843 11,843 Analysls of grants Grants to Institutions 2023 Total funds 2023 Support of Onside Youlh Zones Grants lo Wirral Youth Zone 1,217,000 250.000 1,217,(100 250,000 Tp 11 Grants to Wofverhampton Youth Zone Grants lo Hammersmith & Fulham Youth Zone Grants lo Warrington Youth Zone Grants to East Manchester YoLrth Zone Granis lo Grimsby Youth Zone GTants to Barnsleyyouth Zon? 248.000 3,009,139 146.156 161,000 275.000 28,000 24B,000 3,009,139 146,156 161,OlJO 276,000 28,000 5,334,295 5,334,295 As at 31 March 2(r23 the Charity had cornmiited kn grants of value up to £1.691m $ublecl to the Cor￿LtiOnS atlached to the grants beirKJ fulfilled. Page 18 THE ONSIDE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Grants lo Inslilutions 2022 Total funds 2022 Support of Onside Youth Zone5 Grants lo Wolverhampton Youlh Zone Grants to Barnet Youth Zone Grants lo Barking & Dagenham Youth Zone Grants lo Croydon Youth Zone Grants lo Hammersmith & Fulham Youth Zone Grants lo Boiton Lads and Girls Club Grants lo Warrington Youth Zone Grants to East Manchester Youth Zone Grants to Grimsby Youth Zone Grants to Wigan Youth Zone Grants to Bamsley Youth Zone 2,088,375 5,000 150,500 2Xt,500 214.751 875,000 350.oc 1.400,000 25.000 30,000 81.250 176.000 2,088,3T5 150,5CiI 250.500 214, 751 875.C4 350.000 1,400,000 25,QOO 30,000 81,250 176,000 5,646,376 &646.316 Analysis of expgndltur• by a¢tlvlll¢s Grant fundlng of activltles 2023 Support costs 2Q23 Total funds 2023 Support ofOnSid8 Youlh Zones Grants lo Youth Zone Projec1$ 1,217,000 4.117.295 28.789 1,245,789 4,q17.295 5,334.295 28,789 5,363,Q84 Granl fimdww ol Support costs Total lunds 2022 2022 2022 Support of Onside Youth Zones Grants lo Youth Zone ProleGts 2.088.375 3.55¢001 24204 2. 713.5r9 3.558,C01 5,646.376 25,204 5,671.580 Page 19 THE ONSIDE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 f4lARCkl 2023 Analysis of expenditure by a¢tivities (contwll*dl Analysis of gupport costs Support of Onslde Youth Zon86 2023 Total funds 2023 Govemance costs 28,789 28,789 Support ot Onside Youlh Zone8 2022 Total funds 2022 GovernarKe costs 25.204 24204 Auditorfs remuneratlon 2023 2022 Fees payabte to Ihe Charitys auditor for the autht ofth8 Chanvs annual counts 4,000 3,275 Fees payable to Ihe Charws auditor in resp&t of.. All non4udit services not included above 1,200 Trustee5' remuneration and expenges During the year, rn Trustees recelved any reM￿eralKiTh or other benefits {2022- £NILJ. Durlng the year ended 31 Mar¢h 2023, no Twste8 expenses have ljeen I￿urred {2022- £NIL). Page20 THE ONSIDE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 10. Fixed asset investments Listsd investments Cost or valuatlon At 1 April 2022 Revaluations 5,655,637 {863.306) At 31 March 2023 4.792,331 Net book value At 31 March 2023 4.792,331 At31 March 2022 5,655.03T 11. Creditovs: Amounts falling due withln on9 y 2023 2022 Trade creditors Accruals and deferred income 2,902 6,240 182,915 5.220 9,142 788, 135 Page 21 THE ONSIDE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 12. Statement of funds Statement of funds- ¢urrenl year Balance at 31 March 2023 Balanu at 1 April 2022 Transfe Inlout Galnsl ILossesl Income Expendlture Unrestrlctgd lund$ D¢slgnated funds Youth Zone Network Donor Fund 619.000 619,000 General funds Onside Youlh Zones 8.120,500 1.617.567 113S5.789} (619,000) 1863,3061 6,799,972 Total Unrestricted funds 8.120,600 I.617￿7 (1.455.789) 1863.3061 7,418,972 Restrlcted fund5 Onside Youth Zones Developmenl East Manchester Onside Youth Zones HammeTsmilh & Fulham Ken$in9ton Palace London Grimsby Warrin9ton Barnsley Bristol IndNidual Donaltons - CMC 1.000,000 136,000 1,Oly),000 (136.000) 204,61MI 1198.000} 6.600 2,585,889 250￿)0 I2￿35.889) 198.250 80,001 230,548 290.000 124,000 1198.2501 8Q,l)01 230,548 143,844 116,000 150,000 275 (275.000) {146,1S6) (28.0001 20.000 150,IJOO 90.000 190.0001 Page22 THE ONSIDE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 12. Statement of funds (contlnu¢d statement of funds- current year (Gontinued) Balance at 31 Mar¢h 2023 Balance at 1 April 2022 Transfers inlout Galn {Losses) Income ExpenditUTe 4,734,688 899.600 (3,9f17,2951 1,726,993 Total ol funds 12.855.188 2,517.167 15,363,084} (863,306) 9,145,965 Designated fvnds consist of the followlng: Youth Zone Nthork Donor Fund - the Trustees have agreed to designate £619,CQO of the unrestrrcled funds which were inrtially provided bytwo donotS to underwrile support ¢osls for Onside Youth Zones but will now be used for granls to benefit the Youth Zone Networf( a5 sp￿rf￿allY agreed behveen Ihe donors and Ihe Trustees. Restricted firrKls consist of the lollowi Individual Youth Zones - Funding lo be applied solely to the specific Youth Zone listed OnSKle Youth Development- Fundin9 to support the de¥ebpment of new Youth Zones. Kensington Palace - Income generated from a fundtai5ing dinner al Kensington Paiace to Support Youth Zones. Communlty Match Challenge {-CMC")- DCMS match fvnding to ensure essential servics are piomded to vulnerable young people, ￿th in the short and ioThJ temi through increased ￿MMunItY support and reduce closures of charit*s Ihat provide essential services to vulnerable groups during lh& COVID19 crisis. Page 23 THE ONSIDE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 12. Statement of fund5 (continued Statemem ot funds- prfor ygar Balance 8t 31 Mgr¢h 2022 Balance al l Apnl 2021 Trdnsfws inlout Gains/ (Lo&ge8J Vnrestrl¢tod funds Deslgnated fvnds Designated Funds - all fvn(Is (￿.000) General funds Onside Youth Zones 7.913,916 11.897 [24204) (190.(￿1) 409.891 &120,500 Total Unrestrlcted funds 8,261916 11.897 7&204) {190,LW) 409.891 8,120.500 Regtrl¢ted funds Onside Ycwth Zones Development Barnet Bark¢ng & Dagenham Croydon East Manchester Hammersmith & Fulham Kensington Pal 1.088,375 83.5LXI (8&375J {150.￿0) t.000,000 17,000 133.&JO 83,500 (200.5￿) P14.751) 17,000 123.251 136.000 t36.LiO 2.520.250 932.639 (875.CXKI) 2,585.889 123,250 80.001 17Z274 1,2&1.000 231.250 (15&250) 198,250 80,001 230.548 London Grimsby Warrington Barnsley Wolverhampton IndNidual Donations- CMC 88,274 (30.(X￿) 300,000 (1.400.cw) 300.(XIO f176.OOOJ (5.OOOJ 140.¢X• 124,000 2,090,000 RQ30.CW) 90,000 Page24 THE ONSIDE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 12. Statement of funds (cpntinuedl Statement of funds- prior year (continued Balance al 31 MarGh 2022 8818nce at l Apn7 2021 TTrnsfvrs inloul Gain (Losses) Inc¥)me ExpendRu 6.59&026 3.246,038 (5.296.3T6) 190.000 4,734,688 Total of funds 14.858,942 3.25T,935 (5.671.5801 409,891 12.855, 188 13. Anatysls of nel assets btheen funds Analysls of net assets between fund$-currenl year Unrestricted Restricted funds funds 2023 2023 Total fund$ 2023 Fix9d asset irwestmenls Cufrent assets Credllors due withln ¢ne year 4,792,331 2.635.783 (9.142 4,792.331 4.362.776 19,1421 1.726.993 Total 7,418.972 1.726.993 9,145,965 Analysis of net ass￿ betvmen lundg- prior year Unrestiicted tumls 2022 Resfrlcled lunds 2022 Tot funds 2022 Fixed asset investments Current assets Creditors due within one year 4655,637 2,65Z998 (188, t35J 5,655,63T 7,387,686 (188. 135) 4.734688 Total 8, 120,500 4.734.688 72.855. 188 Page 25 THE ONSIDE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 1& Reconciliation of net movemenl In funds to not cash flow from operating activities 2023 2022 Nel expenditure lor Ihe year {aB por Slalement of FIna￿Val Activibes) 13.709,2231 (2.003,754) Adjustments for. (Gainsylosses on investments Dividend5, interests and rents from investments Increasel{decrea5e) in creditors 863,306 {69,4951 1178.9931 (409,891) (11,843) 178,484 Not cash used in operating activilies 13.094.4Q51 (2,247,004) 1& Analy$ls of cash and cash equivalents 2023 2022 Cash In hand 4.362,7T6 7.387.686 Total cash and Gash equivalents 4,362,776 7,387,686 16. Analysss of changes Tn net debt At 1 April 2022 Cash fiows At 31 Mar¢h 2023 Gash at bank and in hewl 7J87,686 13,0249101 4,362,776 7,387,686 13,024,910) 4,362,776 17. Related party transactions During the year the Charity made grants to Onslde Youth Zonos. a charity whith has a trustee in common with the Foundation. The value ol grants paid in the year was £1,217.000121y22: £2,088.3751. In accordance with besl practice pèrtaining to related party transaction5 publsshed by the Charities Commission and following legal ad¥￿e, where a conflict of interest was perceived to exs( tNstees recused themselves Irom voting. Page 26