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2022-03-31-accounts

Charity Number: 1166157

HEXHAM YOUTH INITIATI E

Report and financial statements for the year ended 31 March 2022

HEXHAM YOUTH INITIATIVE

REFERENCE AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 MARCH 2022

CHARITY NUMBER: 1166157
TRUSTEES: Diane Harris Chair
Neil Morrison Treasurer
Rosemary Theobalds Vice Chair
Stephen Ball
Terry Eccles
Ranald Harris
Melanie Postill
Jonathan Hill
Kathy White Webster
Tony Webster
PRINCIPAL OFFICE: Hexham Community Centre
Gilesgate
Hexham
NE46 3NP
BANKERS: Unity Trust Bank
Nine Brindleyplace
Birmingham
B12HB
INDEPENDENT Gabrielle-Anne Keaveny
EXAMINER 9 South Waterside
Kielder
Hexham
NE48 1 HF

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HEXHAM YOUTH INITIATIVE

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022 Introduction

The trustees present their report and the unaudited financial statements for the year ended 31 March 2022.

The trustees have prepared the annual report and financial statements in accordance with the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in January 2015.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governance

Hexham Youth Initiative is a registered charity, number 1166157. It was registered with the Charity Commission on 21 March 2016, and is constituted as a Charitable Incorporated Organisation. Its Constitution was adopted on 21 March 2016. The principal activity of the charity is to promote any charitable purposes for the benefit of young people, aged 25 years or under, who are resident in the town of Hexham and the surrounding area in the County of Northumberland, and in particular the advancement of education, the protection of health and the relief of poverty, distress and sickness.

Trustees

The Management Committee comprises a minimum of four and a maximum of twelve trustees, who are charity trustees for the purpose of charity law.

Trustees are elected by the members at the Annual General Meeting and, if willing to stand, offer themselves for re-election each year. The officers of the charity for the ensuing year are nominated and elected (by ballot if necessary) at every AGM.

Trustee Induction and Training

A Trustee Information Pack is available to potential and new trustees. Potential trustees are invited to attend a trustee meeting to find out more about the workings of the Management Committee and the governance of the charity, after which they may feel better informed to make the decision to become a trustee.

New trustees are introduced to the charity, their legal obligations under charity law, the content of the governing document, the trustees and the decision-making process, the business plan and financial performance of the charity during an induction period soon after appointment. Trustees are also encouraged to attend appropriate training events that will support effective conduct in their role.

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HEXHAM YOUTH INITIATIVE TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

Risk Management

Where appropriate, policies and procedures or systems have been put in place to mitigate the risks the charity might face. Significant external risks to funding, and the nature of funding across the Community and Voluntary Sector, have led to the development of a regularly reviewed long-term strategic plan including the identification of priority activities in relation to income generation.

Policies and procedures exist to ensure compliance with health and safety of all staff, volunteers, and beneficiaries of the charity. This includes the provision of adequate insurance cover and risk assessment of all charitable activities. These policies and procedures are reviewed annually or more frequently, on change of circumstances, to ensure that they continue to meet the needs of the charity.

OBJECTIVES AND ACTIVITIES

Public Benefit

In shaping the objectives for the year and in planning the activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)'.

The charity provides drop-in sessions, information, advice and guidance, motivational and educational projects such as Duke of Edinburgh Award and Young Leaders Group. The charity also offers alternative education projects, mentoring support and a young carers' project, health support includfng a healthy eating project, sexual health, information and advice and counselling support.

We provide a parents' group with creche and an after-school club for children and young people with learning disabilities. Hexham Youth Initiative also runs Acomb Youth Club and two LGBTQ plus clubs at Queen Elizabeth High School and one at Haydon Bridge High School. We have also been running two environmental groups this year, one at Queen Elizabeth High School and a group for Ukrainian children and young people who have recently arrived in the UK.

In addition, we run holiday play scheme activities, weekend groups and offer residential opportunities for personal development.

ACHIEVEMENT AND PERFORMANCE

The Hexham Youth Initiative continues to support young people to plan and run their own projects. For example, members have worked with Gravity to design the new skatepark area and have completed a fundraising programme in partnership with Hexham Town Council to bring in over £160,000 to complete the project.

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HEXHAM YOUTH INITIATIVE TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Hexham Youth Initiative maintained positive relationships with children and young people in another difficult year where the rules and regulations concerning the running of group work activities seemed to change weekly with the easing of lockdowns. We have worked hard to encourage young people who have become nervous about the future to re-engage with education and training and to begin planning for a more positive future. Our Job Club has supported 9 young people into work and 21 young people into training or further education since the beginning of September 2021. Many Job Club participants have been volunteering this year.

The Hexham Youth Initiative offered a varied programme of activities in all of the school holidays. In the summer of 2021, over 300 young people participated in safe, stimulating and fun summer scheme activities, designed by other young people. They were supported by a dedicated group of staff and volunteers. The Youth Initiative used Holiday Action Fund wherever possible to address holiday hunger.

Our Duke of Edinburgh group, with participants at Bronze and Silver levels, encourages participants to develop independence, self-esteem and team-work skills. This year, 24 young people are taking part. Young people volunteered in local community projects and raised funds as part of their service section and expeditions this year were based in Northumberland and Cumbria.

Work with partners in the community continues, including groups for children and young people in the super output area of Hexham East, where some holiday activities were based. We also continued to work with schools, Hexham Community Partnership, the Rotary and Lions Club, Northumberland County Council and the District Youth Forum to offer joined up support and activities.

FINANCIAL REVIEW

The charity remains grateful for the help and support given by local government agencies, charitable trusts and other sources of fundraising and donations.

The charity generates a significant proportion of its income from grant funding and fees from alternative curriculum education. Total income, including these fees, grants, fundraising and donations, in the year ended 31 March 2022, was £190,006 (2021: £236,486). Within this income were significant unrestricted grants totalling £69,613 (2021: £86,646), including £30,000 from the Garfield Weston Foundation and £30,000 from Hexham Town Council. Without these grants the charity would have been unable to cover its core costs and plan for the future. Unrestricted income also included £4,163 (2021: £22,213) from the _government job retention scheme and earned income of £53,038 (2021: £59,443). All grants are disclosed within Income from charitable activities (Notes 4, 10 and 13).

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HEXHAM YOUTH INITIATIVE TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

Total costs were £215,666 (2021: £222,896) and as a result the charity incurred a deficit for the year of £25,660 (2021: £13,590 surplus). Payroll costs, which represent the significant part of the charity[1] s costs, were £161,969 (2021: £164,375) representing 75.1 % of total expenditure (2021: 73.7%).

Total funds at 31 March 2022 were £59,040 of which £51,188 was held in cash. Of the total funds at 31 March 2022, £45,840 related to unrestricted funds (2021: £62,749).

The charity also recognises the valuable contribution made by individuals and supporters.

Reserves Policy

The Trustees aim to have a reserve of sufficient unrestricted funds to cover three months' operating costs, plus exit charges. This figure has been identified following consideration of the main financial risks to the charity. At 31 March 2022 unrestricted funds held amounted to approximately 2.6 months' operating costs (2021: 3.4 months'), and therefore this policy was not met.

The strategy is to build reserves through economies of scale wherever possible, suitable cost control, and seeking additional funding to meet essential expenses which underpin the provision of service to members.

The trustees regularly review the level of unrestricted reserves at Management Committee meetings.

Grant Making Policy

The Charity does not make grants.

Investment Policy

The charity holds no investments, other than reserve funds held in interest bearing bank deposit accounts, and as such has no formal investment policy.

PLANS FOR FUTURE PERIODS

Our main aim this year is to continue to find funds to support the most disadvantaged and vulnerable young people in our community. We want to offer a responsive and adaptable service and to continue to provide well thought out and preventative initiatives.

We will also continue to build up our staff and volunteer skills base and concentrate, in particular, on listening to and supporting our young leaders at every level.

We will continue to work with Hexham Town Council and look forward to the completion of the new skate park on the Sele and to developing projects with young people on the site.

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HEXHAM YOUTH INITIATIVE TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES

Charity law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year; in preparing those financial statements, the trustees should follow best practice and:

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection or fraud and other irregularities.

RESPONSIBILITIES OF THE TRUSTEES

Trustees who served during the year and up to the date of this report are set out under Legal and Administrative Information. In accordance with charity law, as the charity's trustees, we certify that:

The. trustees' annual report has been approved by the trustees and signed on their behalf by:

.. Diane Harris (Chair)

12 September 2022

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HEXHAM YOUTH INITIATIVE

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF HEXHAM YOUTH INITIATIVE

I report to the charity trustees on my examination of the accounts of Hexham Youth Initiative for the year ended 31 March 2022, which are set out on pages 9 to 22.

Respective responsibilities of trustees and examiner

As the charity's trustees you are responsible for the preparation of • the accounts in accordance with the Charities Act 2011 ("the 2011 Act"). You consider that an audit is not required for this year under section 144(2) of the 2011 Act and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with general Directions given by the Charity_ Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which give me cause to believe that, in any material respect:

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HEXHAM YOUTH INITIATIVE

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF HEXHAM YOUTH INITIATIVE

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 accounts to be reached.

Gabrielle-Anne Keaveny 9 South Waterside Kielder Hexham NE48 1HF

12 September 2022

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HEXHAM YOUTH INITIATIVE

HEXHAM YOUTH INITIATIVE HEXHAM YOUTH INITIATIVE HEXHAM YOUTH INITIATIVE
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 March 2022
Unrestricted Restricted Total Total
funds funds funds funds
2022 2021
Note £ £ £ £
Income from:
Donations and gifts 3 3,937 3,937 3,696
Grants received 4 69,613 61,057 130,670 172,980
Charitable activities 4 55,388 55,388 59,793
Investments 5 11 11 17
Total Income 128,949 61,057 190,006 236,486
Expenditure on:
Charitable activities 6 145,208 69,808 215,016 222,246
Governance costs 650 650 650
Total expenditure 145,858 69,808 215,666 222,896
Net
income/( expenditure) 7 (16,909) (8,751) (25,660) 13,590
Transfer between
funds
Net movement in
funds (16,909) (8,751) (25,660) 13,590
Reconciliation of
funds
Total funds brought
foiward 62,749 21,951 84,700 71,110
Total funds carried
forward 45,840 13,200 59,040 84,700

The statement of financial activities includes all gains and losses recognised in the year. All income resources and resources expended derive from continuing activities.

9

HEXHAM YOUTH INITIATIVE

BALANCE SHEET AS AT 31 MARCH 2022

2022 2021
Note £ £ £ £
Fixed assets
Tangible assets
Total fixed assets
Current assets
Debtors 11 9,899 12,206
Cash at bank and in hand 51,188 74,387
Total current assets 61,087 86,593
Liabilities
Creditors: amounts falling
due in less than one year 12 (2,047) (1,893)
Net current assets 59,040 84,700
Total assets less current
liabilities 59,040 84,700
The funds of the charity:
Restricted income funds 13 13,200 21,951
Unrestricted income funds 14 45,840 62,749
Total charity funds 59,040 84,700

These financial statements have been prepared in accordance with FRS 102 SORPO

Approved by the Board of Trustees on 12 September 2022 and signed on its behalf by:

Diane Harris, Chair

Neil Morrison, Treasurer

10

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

HEXHAM YOUTH INITIATIVE

1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a. Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), second edition - October 2019 (Charities SORP (FRS 102)), the Financial Reporting Standard 102, Section 1 a Small Entities, as well as the Charities Act 2011.

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

b. Preparation of the accounts on a going concern basis

The financial statements have been prepared on a going concern basis which assumes that the charity will continue in operational existence for tlie foreseeable future. At the year end Hexham Youth Initiative had net current assets of £59,040 and although, at 2.6 months' operational costs, the charity's unrestricted free reserves did not satisfy the reserves policy, the charity's forecast shows that it will be able to continue as a going concern for at least the next twelve months. As usual, the charity will require additional external funding if it is to continue over the longer term. The trustees remain optimistic that the charity will be able to raise sufficient funds to continue in operation for the foreseeable future.

c. Judgments and estimates

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.

d. Income

All income is included in the statement of financial activities when the charity is entitled to the funds, any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. The following specific policies are applied to particular categories of income:

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the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Volunteers - the value of any volunteer help received is not included in the accounts, but is described and acknowledged in the trustees' report.

e. Fund accounting

Unrestricted funds are available to spend at the discretion of the trustees on activities that further any of the purposes of the charity.

Restricted funds are grants or donations which the donor has specified can only be used for particular areas of the charity's work or for specific projects being undertaken by the charity.

f. Expenditure and irrecoverable VAT

Expenditure is recognised on an accrual basis as a liability is incurred, because 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. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

g. Cash at bank and in hand

Cash at bank and cash in hand comprise cash and short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

h. Debtors

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

12

trade discounts due.

i. Creditors and provisions

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

j. Pensions

The charity uses a qualifying defined contribution workplace pension scheme to meet its duties as an employer. The charity's contribution is restricted to the contributions disclosed in Note 8. There were no outstanding contributions at the year end.

2. Legal status of the charity

The charity is a Charitable Incorporated Organisation registered with the Charity Commission for England and Wales under Charity Number 1166157 and governed by its constitution dated 21 March 2016.

3. Income from donations

Un restricted Restricted Total Total 2021
2022
£ £ £ £
Donations 3,937 3,937
Total by fund 31 March
2022		 3,937 3,937
Total by fund 31 March
2021

13

HEXHAM YOUTH INITIATIVE

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (continued)

4. Income from charitable activities

Unrestricted Restricted Total Total
2022 2021
£ £ £ £
Grants
Belford Charitable Trust 16,000 16,000 15,000
Children in Need 9,973
Community Foundation 8,000 8,000 12,382
Garfield Weston Foundation 30,000 30,000
Hexham Town Council 30,000 200 30,200 28,983
HMRC Job Retention 4,163 4,163 22,213
Northumberland County Council 5,000 10,125 15,125 10,000
Rank Foundation 9,771 9,771 37,497
Sport England 9,425
TNL Community Fund 18,800
UK Youth 13,121 13,121
Other small grants 450 3,840 4,290 8,707
Total grants 69,613 61,057 130,670 172,980
Fees and other income
Educational income - Alternative
curriculum fees		 40,166 40,166 48,082
Project income 12,872 12,872 11,361
Other income 2,350 2,350 350
Total fees and other income 55,388 55,388 59,793
Total by fund 31 March 2022 125,001 61,057 186,058 232,773

14

Income from charitable activities - previous reporting period

Unrestricted Restricted Total 2021
£ £ £
Grants
Belford Charitable Trust 15,000 15,000
Children in Need 9,973 91973
Community Foundation 121382 12,382
Hexham Town Council 281983 28,983
HMRC Job Retention 221213 22,213
Northumberland County Council 101000 101000
Rank Foundation 251000 12,497 37,497
Sport England 9,425 9,425
TNL Community Fund 18,800 18,800
Other small grants 450 8,257 8,707
Total grants 861646 861334 1721980
Fees and other income
Educational income - Alternative
curriculum fees		 481082 481082
Project income 111361 111361
Other income 350 350
Total fees and other income 591793 591793
Total by fund 31 March 2021 146,439 86,334 232,773

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HEXHAM YOUTH INITIATIVE

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (continued)

5. Investment income

All of the charity's investment income arises from money held in interest bearing deposit accounts. All investment income is unrestricted.

6. Analysis of expenditure on charitable activities

Staf costs
Premises costs
Administrative costs
Project costs
Governance costs -
Accountancy and independent
examination		 Total 2022
£
161,969
9,321
5,546
38,180
650
215,666
Total 2021
£
164,375
8,647
9,748'
39,476
650
222,896
Restricted expenditure
Unrestricted expenditure		 2022
£
69,808
145,858
215,666
2021
£
68,792
1541 104
222,896

16

HEXHAM YOUTH INITIATIVE

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (continued)

7. Net income/(expenditure) for the year

This is stated after charging/(crediting) 2022 2021
£ £
Independent examiner's remuneration 650 650

8. Staff costs

Staff costs during the year were as follows:

Staf costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs
Redundancy costs		 Total 2022
£
154,719
4,372
2,878
161,969		 Total 2021
£
154,930
4,378
2,892
2,175
164,375

No employee had employee benefits in excess of £60,000 (2021: Nil).

The average number of staff employed during the period was 14 (2021 :14). The average full time equivalent number of staff employed during the period was 6.5 (2021: 6.5).

The key management personnel of the charity comprise the trustees and the Project Manager. The total remuneration of the key management personnel of the charity was £32,471 (2021: £32,479).

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HEXHAM YOUTH INITIATIVE

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (continued)

9. Trustee remuneration and expenses, and related party transactions

Neither the Management Committee nor any persons connected with them received any remuneration or reimbursed expenses during the year (2021: Nil).

None of the trustees received travel or subsistence expenses during the year (2021: Nil).

There were no donations from trustees or related parties (2021: Nil).

No trustees or other persons related to the charity had any personal interest in any contract or transaction entered into by the charity during the year.

10. Government grants

The government grants recognised in the accounts were as follows:

Hexham Town Council
HMRC Job Retention Scheme
Northumberland County Council		 Total 2022
£
30,200
4,163
15,125
49,488
Total 2021
£
28,983
22,213
10,000

There were no unfilled conditions and contingencies attached to these grants.

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HEXHAM YOUTH INITIATIVE

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (continued)

11. Debtors

----- Start of picture text -----
Total 2022 Total 2021
£ £
Trade debtors
----- End of picture text -----

12. Creditors: amounts falling due within one year

----- Start of picture text -----
Total 2022 Total 2021
£ £
Trade creditors 2,047 1,893
Taxation and social security
2,047 1,893
----- End of picture text -----

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HEXHAM YOUTH INITIATIVE

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (continued)

13. Analysis of movements in restricted funds

At 1 At 31
April Income Expenditure Transfers March
2021 2022
£ £ £ £ £
Belford Ch Trust 11,250 16,000 (15,250) 12,000
Community
Foundation		 8,000 (7,000) 1,000
Hexham Town
Council		 200 200
Northumberland
County Council		 10,125 (10,125)
Rank Foundation 10,701 9,771 (20,472)
UK Youth 13,121 (13,121)
Other small grants 3,840 (3,840)
Total 21,951 61,057 (69,808) 13,200

Name of restricted fund

Belford Charitable Trust Community Foundation

Hexham Town Council Northumberland CC Rank Foundation UK Youth

Description, nature and purposes of the fund

Towards core costs

Youth activities, summer holiday programme, craft sessions at Saturday drop-ins Skateboard training Holiday Activities and Food programme (HAF) 'Time to Shine' Towards sessional costs

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Analysis of movements in restrict�d funds (continued)

Previous reporting period

At 1 April
2020		 Income Expenditure Transfers At31
March 2021
£ £ £ £ £
Belford Charitable
Trust		 15,000 (3J50) 11,250
TNL Community
Fund		 1,483 18,800 (20,283)
Children in Need 9,973 (9,973)
Community
Foundation		 1,926 12,382 (14,308)
Rank Foundation 12,497 (1,796) 10J01
Sport England 9,425 (9,425)
Other small
grants		 1,000 8,257 (9,257)
Total 4,409 86,334 (68,792) 21,951

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HEXHAM YOUTH INITIATIVE

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (continued)

14. Analysis of movement in unrestricted funds

Current
reporting
period
General fund
Previous
reporing
period
General fund		 At 1 April
2021
£
62,749
62,749
At 1 April
2020
£
66,701
66,701		 Income
£
128,949
128,949
Income
£
150,152
150, 152		 Expenditure
£
(145,858)
(145,858)
Expenditure
£
(154, 104)
(154,104)		 Transfers
£
Transfers
£		 At 31
March
2022
£
45,840
45,840
At31
March
2021
£
62,749
62,749

Name of unrestricted fund Description, nature and purposes of the fund General fund The unrestricted reserves

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