**Charity registration number 1161470**
## **THE ZONE YOUTH CLUB**
**ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023**
## **THE ZONE YOUTH CLUB**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mrs T Dickinson|
|---|---|
||Mr I Curtis|
||Mrs V Suchak|
||Mrs T Brazil|
|**Charity number**|1161470|
|**Independent examiner**|MMP Limited|
||64 High Street|
||Broadstairs|
||Kent|
||England|
||CT10 1JT|
## **THE ZONE YOUTH CLUB**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 12|
## **THE ZONE YOUTH CLUB**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
The trustees present their annual report and financial statements for the year ended 28 February 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 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)" (effective 1 January 2019).
## **Objectives and activities**
To advance in life and relieve needs of young people in thanet through:
(a) the provision of recreational and leisure time activities provided in the interest of social welfare, designed to improve their conditions of life;
(b) providing support and activities which develop their skills, capacities and capabilities to enable them to participate in society as mature and responsible individuals.
The Charity will put particular emphasis on reaching young people who have poorer access to physical activities and learning because of poverty, disability or ethnicity in an area of high deprivation and levels of unemployment.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
We have continued to provide a high quality level of provision for the young people of our community. We have secured funding to enable us to expand our services to include the wider community as well, including older people, families, and younger children. We provide free meals during school holidays and all our activities remain free to users unless there is a necessity to charge for use of resources, external fees, or additional sessional workers. The additional funding secured from KCC enabled us to provide many trips out, including a London trip, theatre performance, a residential weekend for 12 children, and a number of accredited awards. Funding from KCC Reconnect, Colyer Fergusson and The National Lottery have enabled us to secure employment for current as well as additional sessional staff.
## **Financial review**
The club’s income increased this year mainly due to the additional grants awarded and as such more seasonal staff were taken on to help with the provision of services. Due to the current economical crisis costs have increased.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
## **Structure, governance and management**
The charity is a Charitable Incorporated Organisation.
The trustees who served during the year and up to the date of signature of the financial statements were:
Mrs T Dickinson Mr I Curtis Mrs V Suchak Mrs T Brazil
None of the trustees has any beneficial interest in the charity. All of the trustees are members of the charity and guarantee to contribute £1 in the event of a winding up.
- 1 -
## **THE ZONE YOUTH CLUB**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
The trustees' report was approved by the Board of Trustees.
Mrs T Dickinson **Trustee**
28 April 2023
- 2 -
## **THE ZONE YOUTH CLUB**
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF THE ZONE YOUTH CLUB**
I report to the trustees on my examination of the financial statements of The Zone Youth Club (the charity) for the year ended 28 February 2023.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **MMP Limited**
64 High Street Broadstairs Kent CT10 1JT England
Dated: 28 April 2023
- 3 -
## **THE ZONE YOUTH CLUB**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**2**
1,578
-
Charitable activities
The Pavilion Youth &
Community Café
**3**
34,983
71,399
Investments
**4**
58
-
Other income
**5**
-
-
**Total income**
36,619
71,399
**Expenditure on:**
Charitable activities
**6**
39,400
59,018
**Net (expenditure)/income for the**
**year/**
**Net movement in funds**
(2,781)
12,381
Fund balances at 1 March 2022
39,877
26,388
**Fund balances at 28 February**
**2023**
37,096
38,769|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2022**
**2022**
**£**
**£**
**£**
1,578
8,217
-
106,382
32,059
50,255
58
-
-
-
12,763
-
108,018
53,039
50,255
98,418
50,388
25,235
9,600
2,651
25,020
66,265
37,226
1,368
75,865
39,877
26,388|**Total**
**2022**
**£**
8,217
82,314
-
12,763|
|---|---|---|
|||103,294|
|||75,623|
|||27,671
38,594|
|||66,265|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
## **THE ZONE YOUTH CLUB**
## **BALANCE SHEET**
## _**AS AT 28 FEBRUARY 2023**_
|**Notes**
**Fixed assets**
Tangible assets
**10**
**Current assets**
Debtors
**11**
Cash at bank and in hand
**Creditors: amounts falling due within one**
**year**
**12**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
Unrestricted funds - general|**2023**
**£**
4,200
72,549
76,749
(1,884)|**£**
1,000
74,865
75,865
38,769
37,096
75,865|**2022**
**£**
4,200
63,131
67,331
(2,066)|**£**
1,000
65,265|
|---|---|---|---|---|
|||||66,265|
|||||26,388
39,877|
|||||66,265|
The financial statements were approved by the Trustees on 28 April 2023
Mrs T Dickinson **Trustee**
- 5 -
## **THE ZONE YOUTH CLUB**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **1 Accounting policies**
## **Charity information**
The Zone Youth Club is a charitable incorporated organisation registered with the Charity Commission 29 April 2015.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 6 -
## **THE ZONE YOUTH CLUB**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings 20% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.7 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **2 Donations and legacies**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2023**|2022|
||**£**|£|
|Donations and gifts|1,578|8,217|
- 7 -
## **THE ZONE YOUTH CLUB**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **3 Charitable activities**
|||**The Pavilion**|**The Pavilion**|
|---|---|---|---|
|||**Youth &**|**Youth &**|
|||**Community**|**Community**|
|||**Café**|**Café**|
|||**2023**|**2022**|
|||**£**|**£**|
||Performance related grants|96,273|71,916|
||Café sales|10,109|10,398|
|||106,382|82,314|
||Analysis by fund|||
||Unrestricted funds - general|34,983|32,059|
||Restricted funds|71,399|50,255|
|||106,382|82,314|
|**4**|**Investments**|||
|||**Unrestricted**|Total|
|||**funds**||
|||**general**||
|||**2023**|2022|
|||**£**|£|
||Interest receivable|58|-|
|**5**|**Other income**|||
|||**Total**|Unrestricted|
||||funds|
||||general|
|||**2023**|2022|
|||**£**|£|
||Local authority COVID-19 grants|-|12,763|
- 8 -
## **THE ZONE YOUTH CLUB**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **6 Charitable activities**
||**The Pavilion**|**The Pavilion**|
|---|---|---|
||**Youth &**|**Youth &**|
||**Community**|**Community**|
||**Café**|**Café**|
||**2023**|**2022**|
||**£**|**£**|
|Staff costs|72,905|46,180|
|Depreciation and impairment|-|3,030|
|Café purchases|6,454|6,267|
|Games and equipment|4,073|4,741|
|Activities|8,229|6,065|
|Light and heat|1,727|-|
|Rates|173|159|
|Insurance|921|726|
|Repairs and maintenance|1,285|6,281|
|Telephone|269|226|
|Computer and internet|35|-|
|Printing, postage and stationery|55|107|
|Advertising and promotions|-|163|
|Travel costs|257|359|
|Training|278|99|
|Sundry expenses|557|20|
||97,218|74,423|
|Share of governance costs (see note 7)|1,200|1,200|
||98,418|75,623|
|**Analysis by fund**|||
|Unrestricted funds - general|39,400|50,388|
|Restricted funds|59,018|25,235|
||98,418|75,623|
- 9 -
## **THE ZONE YOUTH CLUB**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **7 Support costs**
|**Support costs**|||
|---|---|---|
|**Support costs**
**Governance**
**costs**
**£**
**£**
Accountancy
-
1,200
-
1,200
Analysed between
Charitable activities
-
1,200|**2023**
Support costs
Governance
costs
**£**
£
£
1,200
-
1,200
1,200
-
1,200
1,200
-
1,200|2022
£
1,200|
|||1,200|
|||1,200|
## **8 Trustees**
One of the trustees received remuneration of £29,635 for their role in the day to day running of the charity. The remuneration is decided by the remaining trustees and they are not involved with this decision.
## **9 Employees**
The average monthly number of employees during the year was:
||**2023**|**2022**|
|---|---|---|
||**Number**|**Number**|
||6|6|
|**Employment costs**|**2023**|**2022**|
||**£**|**£**|
|Wages and salaries|72,905|46,180|
There were no employees whose annual remuneration was more than £60,000.
- 10 -
## **THE ZONE YOUTH CLUB**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
|**10**
**Tangible fixed assets**
**Cost**
At 1 March 2022
At 28 February 2023
**Depreciation and impairment**
At 1 March 2022
At 28 February 2023
**Carrying amount**
At 28 February 2023
At 28 February 2022
**11**
**Debtors**
**Amounts falling due within one year:**
Other debtors
**12**
**Creditors: amounts falling due within one year**
Other taxation and social security
Accruals and deferred income
**13**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2023**
**2023**
**£**
**£**
Fund balances at 28
February 2023 are
represented by:
Tangible assets
1,000
-
Current assets/(liabilities)
74,865
-
75,865
-|**Fixtures and fittings**
**£**
4,030
4,030
3,030
3,030
1,000
1,000
**2023**
**2022**
**£**
**£**
4,200
4,200
**2023**
**2022**
**£**
**£**
684
866
1,200
1,200
1,884
2,066
**Total**
Unrestricted
funds
Restricted
funds
Total
**2023**
2022
2022
2022
**£**
£
£
£
1,000
1,000
-
1,000
74,865
38,877
26,388
65,265
75,865
39,877
26,388
66,265|**Fixtures and fittings**
**£**
4,030
4,030
3,030
3,030
1,000
1,000
**2023**
**2022**
**£**
**£**
4,200
4,200
**2023**
**2022**
**£**
**£**
684
866
1,200
1,200
1,884
2,066
**Total**
Unrestricted
funds
Restricted
funds
Total
**2023**
2022
2022
2022
**£**
£
£
£
1,000
1,000
-
1,000
74,865
38,877
26,388
65,265
75,865
39,877
26,388
66,265|
|---|---|---|
|||4,030|
|||3,030|
|||3,030|
|||1,000|
|||1,000|
|||**2022**
**£**
4,200|
|||**2022**
**£**
866
1,200|
|||2,066|
|||Total
2022
£
1,000
65,265|
|||66,265|
- 11 -
## **THE ZONE YOUTH CLUB**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 28 FEBRUARY 2023**_
## **14 Related party transactions**
There were no disclosable related party transactions during the year (2022 - none).
- 12 -