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2021-03-31-accounts

Company no : 11309137 Charity no : 1179712

Manchester Youth Zone - East

Trustees' Report and Financial Statements For the year ended 31 March 2021

Manchester Youth Zone - East

Trustees' Report and Financial Statements For the year ended 31 March 2021

CONTENTS

Page
TRUSTEES' REPORT
1 WHO WE ARE 2
2 STRATEGIC REPORT
2.1 Objects and activities 3
2.2 Achievements during the period 3
2.3 Financial review 3
2.4 Risk Management 4
2.5 Reserves Policy 4
2.6 Principal Funding Sources and Fundraising Statement 4
2.7 Investment Policy 5
2.8 Future Plans & Covid Recovery 5
3 GOVERNANCE
3.1 Reference and administrative details 6
3.2 Structure, governance and management 7
3.3 8
3.4 Public benefit 8
3.5 Statement of Trustees' responsibilities 9
FINANCIAL STATEMENTS
Independent auditor's report 10
Statement of financial activities 13
Balance sheet 14
Statement of cashflows 15
Notes to the financial statements 16

Manchester Youth Zone - East

Page 2

Trustees' Report and Financial Statements (including Strategic Report) For the year ended 31 March 2021

The Trustees (who are also the Directors for the purpose of Company Law) have pleasure in presenting their annual report and the financial statements for the year ended 31 March 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) and Reporting by (FRS 102) in preparing the annual report and financial statements of the Charity.

1 WHO WE ARE

Manchester Youth Zone - East, named by local young people as Youth Zone', is a purpose-built facility for the

The Youth Zone is located on Hyde Road in Gorton, Manchester and practical completion took place at the end of March, 2020.

HideOut Youth Zone is part of a network of similar independent youth organisations that all share the same principles, developed by the charity OnSide Youth Zones (Reg No: 1125893). The Youth Zone provides a safe environment, where young people can spend their leisure time, helping each young person to raise their aspirations as well as improve their physical and mental health. Up to 20 different activities will take place each night, including football, boxing, dancing,

Our vision is that Children and Young People in Manchester are inspired to lead healthy, happy, safe and successful lives.

Our mission is to ensure HideOut Youth Zone provides children and young people with somewhere safe to go, something positive to do and someone trusted to talk to.

To realise this vision, HideOut Youth Zone has worked towards 5 strategic goals in 2020/21:

YOUNG PEOPLE - HideOut Youth Zone is a young person focused, inspirational and inclusive youth provision with a high level of active membership

CULTURE

LEARNING & GROWTH HideOut Youth Zone is a learning and developing organisation which supports and encourages growth of its workforce and young people

FINANCE

COMMUNICATIONS & MARKETING All stakeholders are aware of what HideOut Youth Zone does and can identify its successes and impact

Manchester Youth Zone - East

Page 3

Trustees' Report and Financial Statements (including Strategic Report) For the year ended 31 March 2021

2 STRATEGIC REPORT

2.1 Objects and activities

Manchester Youth Zone - East's objects are to help and educate children and young people resident in the City of Manchester and surrounding areas through their leisure time activities by promoting their full physical and spiritual potential in order that they may grow to maturity as individuals and active members of society and their conditions of life may improve.

2.2 Achievements during the period

Despite the Covid-19 pandemic having a detrimental impact on the original opening and first year delivery plans, we have still realised some incredible achievements and have evidenced a hugely positive impact in the local community and with children and young people across Manchester.

We took the decision early in our Covid-19 recovery planning process, to truly embed our values of putting Young People First, being Ambitious and Striving for Excellence, by focussing on what Government guidance advised we could do for young people, rather than what we .

2.3 Financial review

Financial summary
A summary of the results is shown below :
Incoming resources
Outgoing resources
Net incoming resources (before investment gains and losses)		 2021
2020
£
£
3,362,921
6,436,453
(832,500)
(129,080)
2,530,421
6,307,373

Income for the year was £3,362,921 (2020: £6,436.453). £64,120 (2020: £5,850,224) was received to finalise the construction of the Youth Zone whilst £3,298,801 (2020: £586,229) was received towards revenue costs. This was bolstered by the receipt of £1,275,121 of Gift Aid on previous Capital donations and £450,394 from the DCMS Community Match Challenge via The OnSide Foundation. Patron income (including Gift Aid) for the year totalled £1,200,600 (2020: £570,250) and £200,000 (2020: £Nil) was received from Manchester City Council towards the ongoing running costs of the Charity. When lockdown hit in March 2020 the Youth Zone took advantage of the COVID-19 Job Retention Scheme and a total of £19,573 was received towards the costs of furloughed staff.

Expenditure for the year was £832,500 (2020: £129,080) with £556,214 being spent on salaries. This is less than the original budget due to the impact of COVID-19 on the ability of the Youth Zone to open fully.

At the end of the period Unrestricted Reserves were £3,149,482 (2020 - £610,489).

Page 4

Manchester Youth Zone - East

Trustees' Report and Financial Statements (including Strategic Report) For the year ended 31 March 2021

2.4 Risk Management

The Trustees have considered the major risks to which the Charity is exposed and have established suitable risk management and control procedures. At present the primary risks identified relate to:

Regulatory Risk is the responsibility of the CEO, Business Admin Manager and Building and Facilities Manager whom manage Health and Safety, Fire and other statutory risk areas.

The CEO has developed a full risk register including mitigation and control measures which is shared regularly with the board.

A specific Covid-19 risk assessment relating to budget & finance, the work environment and service delivery has been signed off by the board and is reviewed operational by the CEO and Senior Leadership Team weekly.

2.5 Reserves Policy

The Board of Trustees of Manchester Youth Zone - East has established a reserves policy which appropriately reflects the risks to which the Charity is exposed.

In reviewing the potential costs that could arise should a significant reduction in income be incurred, the Trustees have determined that unrestricted, reserves should be maintained at approximately 3-6 months running costs once the Youth Zone is fully operational. Due to the current uncertainty in the economic climate, shifting restrictions and an anticipated increase in demand for our services, the Trustees have agreed that the Charity will temporarily amend the reserves policy and carry 6-12 months of unrestricted reserves throughout the next financial period. A proportion of funds raised from the private sector against which the DCMS Community Match Challenge project was 'matched' in 2020/21 are held within the unrestricted reserves. There is an expectation that the Charity will spend this within the next financial period.

At 31st March 2021 the Charity has accumulated unrestricted 'free' reserves of £3,149,482; this provides cover equivalent to 28 months of operating costs. In view of this high level of reserves the Trustees have invested £2m of unrestricted funds in order to bring in regular income equivalent to two Founder Patrons per annum (around £50k). This is a deliberate strategy to develop a long-term return on investment that reduces the reliance on annual funding sources, so improving the sustainability of the Youth Zone for generations to come. The balance of 'liquid' reserves of £1.14m provides cover to the equivalent of 10 months of operating costs. The Trustee's actively manage Manchester Youth Zone - East's finances so that an adequate level of reserves is maintained in compliance with the reserves policy. The reserves policy does not consider expenditure which is linked to restricted projects and therefore covered by restricted funds.

The Charity will review regularly both the sum it wishes to hold in reserves in unrestricted funds and the basis for that figure, particularly considering the impact of the Covid-19 pandemic.

2.6 Principal Funding Sources and Fundraising Statement

The Directors wish to record their thanks to Mr Fred Done and Manchester City Council (MCC) for their ongoing support to the Charity. The Directors also thank the following individuals and businesses who have also pledged to support the revenue campaign (in 2020/21); Transforming Lives, ANS Group, Godel Technologies, Theo Paphitis Foundation, The Bruntwood Charity, The JD Foundation, Beyond Corporate and the This Is Manchester Awards, Proseal, One Manchester, Rowan Partners, Eric Wright, Together Money, AO Foundation, Mission Mars, GCA Altium, David M Robinson ltd, Anthony Morrow, Lendlease, Penelope Cheshire Foundation, Sharpe Ltd, Onside Foundation and The Manchester Ball.

The fundraising priority this year has continued to focus on our Founder Patron Campaign. During the 'pre-opening period' this campaign is supported directly via OnSide Youth Zone's Major Donor Fundraising team. OnSide works closely with the CEO and Chair of Manchester Youth Zone - East to plan activity and monitor performance relating to this campaign through a Fundraising Sub Board Committee. OnSide Youth Zones is registered with the Fundraising Regulator and complies with the Fundraising Code of Practise, it is the intention of Manchester Youth Zone - East to register independently with the Fundraising Regulator once fully operational.

The charity does not use external fundraisers and there have been no complaints made to the charity about its fundraising methods.

Manchester Youth Zone - East

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Trustees' Report and Financial Statements (including Strategic Report) For the year ended 31 March 2021

2.7 Investment Policy

Under the Memorandum and Articles of Association, the charitable company has the power to make any investment which the Trustees see fit. Investments are made where required to further the aims and objects of the Charity and to provide surety that it will be able to meet its long term commitments in terms of the quality of the provision offered.

In addition to the commercial considerations, the Trustees also consider a number of other objectives when developing the investment portfolio. The Trustees are keen to ensure responsible investment as a strategy so as to incorporate environmental, social and governance (ESG) factors in investment decisions. Sustainability is also considered to identify investments based on the fulfilment of certain sustainability criteria, and to also ensure that ethical standards are upheld.

In 2020/21 HideOut Youth Zone established investment portfolios totalling £2m with Brewin Dolphin and Goldentree Financial Services PLC. The Charity holds 3 investment portfolios across both organisations (2 with Brewin Dolphin and 1 with GoldenTree) and as at 31st March 2021 the value of the investment was £2.08m.

2.8 Future Plans & Covid Recovery

As we move into 2021/22 we are still under significant restrictions in line with the Government's Covid - Recovery guidelines. However, we will continue to keep up to date with guidance changes via the National Youth Agency and DCMS briefings and webinars with an evolving delivery roadmap and risk assessment implemented at each stage. Our priority is to build the offer slowly increasing the number of young people we engage as quickly but as safely as possible.

Focus will be given to securing additional statutory funding for provision during Easter and Summer school holidays aimed at children and young people eligible for free school meals but also offering universal places where guidance allows. We will refocus efforts back into our core centre based offer whilst maintaining a phased exit from the ongoing detached, outreached and digital engagement currently being offered. As restrictions ease we also intend to move away from 'pre-booked' activities and our current 'bubble' system, to original open access model, increasing numbers of attendees gradually, with the aim of launching our full core universal offer from mid to late September 2021 (guidance pending)

We are confident of securing our final Founder Patrons to hit the required target of 28 in total by the end of September 2021 to coincide with our 1st Birthday celebrations. In addition we aim to recruit additional resource into our Fundraising Team and diversify our revenue income strategy. We will host our 1st ever Annual Patrons dinner in September with aim of thanking our supporters whilst also providing young people with the platform to showcase their talents and aspirations.

We will continue to build on our existing partnership offer that create further pathways for children and young people with regards to social, leisure, educational development and employment. Equality Diversity and Inclusion will remain central to everything we do both as a service delivery but also as an employer. We will continue to celebrate cultural awareness days and empower young people to lead projects and initiatives that allow them to build their confidence, self esteem and discover their identity.

Finally we will develop a People's plan that outlines our vision of becoming an employer of choice as the Charity develops, with a commitment to review our internal HR functions, processes and employment terms and conditions etc.

Manchester Youth Zone - East

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Trustees' Report and Financial Statements (including Strategic Report) For the year ended 31 March 2021

3 GOVERNANCE

3.1 Reference and administrative details

Manchester Youth Zone - East was incorporated on 13 April 2018 (Company registration number : 11309137) as a company limited by guarantee and registered as a charity on 29 August 2018 (Charity registration number : 1179712).

Trading name

HideOut Youth Zone

Registered office

HideOut Youth Zone 1 Queen's Avenue Manchester M12 5PX

Directors & Trustees

The Directors and Trustees of the Charity who served during the period and were:

J Whittaker Chair P Kirszanek J Masraff P Medlicott B Sheikh C Wilkinson V Braddock J Atkins Appointed 7 December 2020

Chief Executive

A Farricker

Auditor

Michael Garrett FCA Kay Johnson Gee Limited 1 City Road East Manchester M15 4PN

Web-site www.hideoutyouthzone.org

Bankers

Handelsbanken Manchester Spinningfields Branch 4th Floor, 15 Quay Street Manchester M3 3HN

Manchester Youth Zone - East

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Trustees' Report and Financial Statements (including Strategic Report) For the year ended 31 March 2021

3.2 Structure, governance and management

Governing Document

Manchester Youth Zone - East is a company limited by guarantee without share capital and registered under the Companies Act 1985, registration number 11309137. The company is governed by its Memorandum and Articles of Association dated 21 March 2018. Management of the affairs is vested in the co-Directors. It is a Charity registered with the Charity Commission on 29 August 2018.

In the event of a winding-up, the present members and those who have ceased to be a member within one year of such an event have guaranteed the liabilities of the company to the sum not exceeding ten pounds each.

Recruitment and appointment of Trustees (Directors)

The first Directors were the subscribers to the memorandum as notified to Companies House as the first Directors of the Charity. A person appointed as a Director thereupon becomes a Member of the Charity and a Director who ceases to hold office for any reason thereupon ceases to be a Member of the Charity. Directors have the power to appoint, by ordinary resolution, any person to be a Director who is willing to act as such. New Directors will be recruited according to the needs of the Charity and the suitability of possible candidates. A unanimous approval of existing Directors would lead to their appointment.

The Memorandum and Articles of Association states that the number of members (Directors) shall have no maximum and shall not be less than three. At the first Annual General Meeting all Directors must retire and seek re-election. At each subsequent Annual General Meeting one third of the Directors are required to retire by rotation and seek reappointment if they wish to continue.

The Members of the Charity are its Directors for the time being and the only persons eligible to be Members of the Charity are its Directors.

Full details of the rules are contained in the Memorandum and Articles of Association, dated on incorporation on 21 March 2018, which may be inspected at the Manchester Youth Zone - East registered office.

Trustees induction and training

All trustees receive a full induction and training inclusive of, safeguarding, risk management, fundraising, role of a trustee and sustainability ahead of formal appointment. All key policies, the organisation structure and articles of association are shared. Training and development needs are reviewed at least annually and as and when any trustees are appointed or resign.

Organisational Structure

Manchester Youth Zone - East is governed by its Trustee Board which is responsible for setting the strategic direction of the organisation and the policy of the Charity. The Trustees carry the ultimate responsibility for the conduct of Manchester Youth Zone - East and for ensuring that the Charity satisfies its legal and contractual obligations. Trustees meet approximately every two months and may delegate the implementation of their decisions or day-to-day operation of the organisation to senior management, any employee of the Charity, person or committee as they see fit. Any committee must include at least one Trustee. The Trustee Board is independent from management.

Decisions are determined by a simple majority of votes. In the case of an equality of votes the Chairman of the meeting has the casting vote.

Related party transactions

Transactions with related parties are disclosed in note 19 to the financial statements and in accordance with paragraph 163 of the SORP (Accounting and reporting by charities: Statement of Recommended Practice (SORP 2005)).

Remuneration Policy

The directors consider the board of directors, who are the trustees, and the senior management team comprise the key management personnel of the Youth Zone in charge of directing and controlling, running and operating the charity on a day to day basis. All directors give of their time freely and no director received remuneration

The pay of the full staff team is reviewed annually and, if financial resources allow, normally increased in accordance with projected Government inflation rates taking into account CPI and RPI. In view of the nature of the charity, the directors benchmark against pay levels in other similar charities in the voluntary sector, as well as across the OnSide Youth Zone Network.

Page 8

Manchester Youth Zone - East

Trustees' Report and Financial Statements (including Strategic Report) For the year ended 31 March 2021

3.3

Throughout the period all members of the Board of Trustees made invaluable voluntary contributions to the work in terms of governance, professional and business experience, financial planning, fundraising and leading initiatives across the project. Such contributions were, on average, equivalent to two full days each calendar month. 35 people have registered as volunteers following an application and interview and received initial inductions and training. However due to ongoing Government restrictions in line with the Charity's strategic Covid Risk Assessment no volunteers have been asked to deliver sessions in this period. This is to keep the number of people in the centre at any time to the minimum required, reducing the risk of increased Covid infections or self isolation requirements.

3.4 Public benefit

All the activities of the Charity (as summarised above) were undertaken to further its charitable purposes for public benefit. The provision of a high-quality, centrally located facility for young people responds to a clear, ongoing demand from young people, parents and wider communities for more and better places for young people to go. Although providing a service to all young people, Manchester Youth Zone - East will focus on attendance and participation by young members of disadvantaged communities who will be able to enjoy affordable access to all the opportunities that the facilities will provide. This will lead to improved achievements and enhanced aspirations amongst young members of the local community. They will be happier, healthier and make more constructive use of their leisure time which consequently will help reduce nuisance and anti-social behaviour. Longer term public benefits will include improved health, reduced crime, enhanced learning and employability and greater community cohesion.

The Trustees of Manchester Youth Zone - East believe they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.

Manchester Youth Zone - East

Page 9

Trustees' Report and Financial Statements (including Strategic Report) For the year ended 31 March 2021

3.5 Statement of Trustees' responsibilities

The Trustees (who are also the Directors of Manchester Youth Zone - East for the purpose of company law) are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

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

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In so far as the Trustees are aware at the time of approving our Trustees' annual report:

Compliance with accounting standards

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013, the company has prepared a strategic report, which includes information that would previously been included in the Trustees' Report.

The financial statements comply with current statutory requirements, the company's Memorandum and Articles of Association and the Charities SORP.

Auditors

A proposal to reappoint Kay Johnson Gee Limited as auditor of the charity will be put to the Annual General Meeting.

The Trustees Report, including the Strategic Report, was approved and was signed on behalf of the Trustees by :

J Whittaker Chair, Company Director and Trustee 9 September 2021

Page 10

Manchester Youth Zone - East

Independent Auditor's Report to the Members For the year ended 31 March 2021

We have audited the financial statements of Manchester Youth Zone - East (the for the year ended 31 March 2021 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Manchester Youth Zone - East

Page 11

Independent Auditor's Report to the Members (continued) For the year ended 31 March 2021

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Responsibilities set out on page 11, the Trustees (who are also the Directors of the Charitable Company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and noncompliance with laws and regulations we have considered the following:

Manchester Youth Zone - East

Page 12

Independent Auditor's Report to the Members (continued) For the year ended 31 March 2021

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: revenue recognition and the impact of COVID-19. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Charitable Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, Charities Act, Health and Safety Laws and Environmental Regulations.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Use of our report

This report is made solely to the Members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Members those matters we are required to state to them in an report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the members as a body, for our audit work, for this report, or for the opinions we have formed.

1 City Road East Manchester M15 4PN

Michael Garrett (Senior Statutory Auditor) For and on behalf of Kay Johnson Gee Limited Statutory Auditors and Chartered Accountants

9 September 2021

Page 13

Manchester Youth Zone - East

Statement of Financial Activities (including Income and Expenditure Report) For the year ended 31 March 2021

----- Start of picture text -----
Note Unrestricted Restricted TOTAL TOTAL
2021 2021 2021 2020
£ £ £ £
INCOME FROM
- Donations and legacies 3 3,232,597 71,000 3,303,597 6,435,830
- Charitable activities 4 26,488 - 26,488 -
- Investments 5 13,143 120 13,263 623
- Other income 6 19,573 - 19,573 -
Total income 3,291,801 71,120 3,362,921 6,436,453
EXPENDITURE
Expenditure on Charitable Activities
- Operating costs 7 755,731 70,799 826,530 123,680
- Governance costs 5,970 - 5,970 5,400
Total Expenditure 761,701 70,799 832,500 129,080
Net income before gains on investments 2,530,100 321 2,530,421 6,307,373
Net gains on investments 15 8,893 - 8,893 -
Net income 8 2,538,993 321 2,539,314 6,307,373
Fund balance at 31 March 2020 610,489 6,399,611 7,010,100 702,727
Fund balance at 31 March 2021 17 3,149,482 6,399,932 9,549,414 7,010,100
----- End of picture text -----

The statement of financial activities includes all gains and losses in the period.

All income and expenditure derive from continuing activities.

Manchester Youth Zone - East

----- Start of picture text -----
Page 14
Balance Sheet Company no : 11309137
As at 31 March 2021 Charity no : 1179712
Note 2021 2020
£ £
Fixed assets
Tangible assets 12 6,337,128 6,159,018
Current assets
Stock 1,917 -
Debtors 14 42,703 1,004,880
Investments 15 2,008,893 -
Cash at bank and in hand 1,278,898 706,868
3,332,411 1,711,748
Creditors : amounts falling due within one year 16 (120,125) (860,666)
Net current liabilities 3,212,286 851,082
Net assets 9,549,414 7,010,100
FUNDS
Unrestricted funds 18 3,149,482 610,489
Restricted funds 18 6,399,932 6,399,611
9,549,414 7,010,100
----- End of picture text -----

These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The financial statements on pages 13 to 21 were approved and authorised for issue by the Board of Trustees and signed on its behalf by:

J Whittaker Chair, Company Director and Trustee

9 September 2021

Page 15

Manchester Youth Zone - East

Statement of Cashflows

For the year ended 31 March 2021

----- Start of picture text -----
2021 2020
£ £
Cash flow from operating activities 2,807,676 5,932,233
Cash flow from investing activities
Interest received 13,263 623
Purchase of investments (2,000,000) -
Payments to acquire tangible fixed assets (248,909) (5,430,148)
Increase in cash and cash equivalents 572,030 502,708
Cash and cash equivalents at 1 April 2020 706,868 204,160
Cash and cash equivalents at 31 March 2021 1,278,898 706,868
Cash and cash equivalents consists of:
Cash at bank and in hand 1,278,898 706,868
Reconciliation of net income to net cash flow from operating activities 2021 2020
£ £
Net income for the year 2,539,314 6,307,373
Depreciation 70,799 592
(Gains)/losses on investments (8,893) -
Investment income (13,263) (623)
(Increase) / decrease in Stock (1,917) -
Decrease / (increase) in debtors 962,177 (1,004,188)
(Decrease) / increase in creditors (740,541) 629,079
Net cash flow from operating activities 2,807,676 5,932,233
----- End of picture text -----

Manchester Youth Zone - East

Page 16

Notes to the Financial Statements For the year ended 31 March 2021

1 General information

Manchester Youth Zone - East is a charitable company limited by guarantee in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity's operations and principal activities are to build, deliver and sustain a Youth Zone in the East Manchester area.

The Charity constitutes a public benefit entity as defined by FRS 102. 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 Standards applicable in the UK and Republic of Ireland (FRS 102) issued 16 July 2014, the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

2 Accounting policies

i. Basis of preparation

The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the Charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

ii. Funds

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

iii. Income recognition

All income is included in the Statement of Financial Activities (SoFA) when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.

Investment income represents amounts receivable in respect of the period. Accrued income is recognised on investments up to the balance sheet date.

Grants in connection with the job retention scheme are recognised in the period to which the underlying staff costs relate to.

iv. Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred.

Charitable expenditure

Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity and include the audit fees and costs linked to the strategic management of the Charity.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis.

Page 17

Notes to the Financial Statements For the year ended 31 March 2021

Manchester Youth Zone - East

v. Tangible fixed assets

Fixed assets costing more than £250 are capitalised and included on the balance sheet at cost. These reflect the initial planning and development costs of the asset under construction.

Fixed assets are depreciated so as to write off the cost or valuation, less anticipated residual value, over their anticipated useful lives, subject to annual review, as follows:

Youth Zone leasehold property 0.8% based on a lease of 125 years Computer equipment 33% straight line Fixtures and fittings 25% reducing balance Computer equipment 33% straight line Gym Equipment 20% straight line Catering equipment 33% straight line Plant & Machinery 25% reducing balance

vi. Investments

Listed investments are shown at market value at the balance sheet date.

vii. Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

viii. Tax

The Charity is an exempt Charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

ix. Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able to continue as a going concern.

x. Pensions

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extend that the prepayment will lead to a reduction in future payments or a cash refund.

3
Income from Donations and Legacies
Donations - capital
Donations - other
Grants, trusts & foundations
OnSide Foundation - DCMS Community Matched Funding
Local Authority
Founder patrons
Gift Aid
4
Income from Charitable Activities
Young People's activity sessions
Facility hire		 Unrestricted
Restricted
TOTAL
TOTAL
2021
2021
2021
2020
£
£
£
£
-
64,000
64,000
5,850,000
106,032
3,000
109,032
10,580
-
4,000
4,000
5,000
450,394
-
450,394
200,000
-
200,000
-
1,108,500
-
1,108,500
514,000
1,367,671
-
1,367,671
56,250
3,232,597
71,000
3,303,597
6,435,830
Unrestricted
Restricted
TOTAL
TOTAL
2021
2021
2021
2020
£
£
£
£
17,900
-
17,900
-
8,588
-
8,588
-
26,488
-
26,488
-

Page 18

Manchester Youth Zone - East

Notes to the Financial Statements For the year ended 31 March 2021

----- Start of picture text -----
5 Investment Income Unrestricted Restricted TOTAL TOTAL
2021 2021 2021 2020
£ £ £ £
Bank interest received 1,195 120 1,315 623
Income from investments 11,948 - 11,948 -
13,143 120 13,263 623
6 Other income Unrestricted Restricted TOTAL TOTAL
2021 2021 2021 2020
£ £ £ £
- -
Coronavirus furlough scheme 19,573 19,573
7 Operating costs Unrestricted Restricted TOTAL TOTAL
2021 2021 2021 2020
£ £ £ £
-
Staff wages & salaries 541,688 541,688 106,298
Staff travel expenses 353 - 353 2,629
- -
Freelance and Agency staff 7,526 7,526
Fundraising & Events 83 - 83 -
Staff and Volunteers DBS checks 3,333 - 3,333 512
Staff Uniform 3,966 - 3,966 955
Telephone 2,897 - 2,897 985
Stationery 4,284 - 4,284 697
Hospitality 310 - 310 399
-
Computer costs 14,426 14,426 2,414
- -
Office supplies 3,615 3,615
Donations 9,917 - 9,917 -
Sundry Expenses 2,204 - 2,204 59
Insurance 20,160 - 20,160 1,393
-
Marketing costs 3,105 3,105 1,038
Legal & professional 9,463 - 9,463 405
Licences 1,721 - 1,721 180
Training 12,370 - 12,370 780
- - -
Trips and Residentials 2,142
Youth Work costs 44,601 - 44,601 644
- -
Catering Supplies 12,189 12,189
- -
Catering Equipment 2,037 2,037
Recruitment 1,370 - 1,370 1,471
Premises Costs 53,711 - 53,711 20
Depreciation - 70,799 70,799 592
Bank charges 402 - 402 67
755,731 70,799 826,530 123,680
8 Net income 2021 2020
£ £
Net income / movement in funds is stated after charging :
Depreciation 70,799 592
Audit Fee 5,970 5,400
----- End of picture text -----

9 Taxation

Manchester Youth Zone - East is a registered Charity. All the company's income is applied to its charitable objectives and the Company is therefore exempt under current legislation from most forms of taxation.

Page 19

Manchester Youth Zone - East

Notes to the Financial Statements For the year ended 31 March 2021

10
Staff costs and numbers
Wages
Social security
Pensions
No employee earned more than £60,000 in the year (2020: Nil)
Average number of employees		 2021
2020
£
£
503,729
97,128
29,839
6,917
8,120
2,253
541,688
106,298
2021
2020
Number
Number
51
3

The aggregate remuneration of the Key Management Personnel, comprising the Chief Executive, Business Administration Manager, Head of Youth Work, Head of Fundraising and Volunteer Recruitment and Training Manager, was £193,726 (2020: £103,830)

11 Trustee remuneration and expenses

No remuneration or expenses have been paid to the Trustees during this period (2020: Nil)

12
Tangible fixed assets
Leasehold Land
Computer
& Buildings
Equipment
£
£
Cost
At 1 April 2020
6,010,750
4,988
Additions
135,291
56,704
Disposals
-
-
At 31 March 2021
6,146,041
61,692
Depreciation
At 1 April 2020
-
632
Charge for the year
28,598
16,063
Disposals
-
-
At 31 March 2021
28,598
16,695
Net book value
At 31 March 2021
6,117,443
44,997
At 1 April 2020
6,010,750
4,356
13
Capital commitments
Contracted for
14
Debtors
Trade debtors
Prepayments and accrued income		 Fixtures &
Equipment
TOTAL
£
£
143,912
6,159,650
56,914
248,909
-
-
200,826
6,408,559
-
632
26,138
70,799
-
-
26,138
71,431
174,688
6,337,128
143,912
6,159,018
2021
2020
£
£
148,232
173,479
2021
2020
£
£
8,588
-
34,115
1,004,880
42,703
1,004,880

Page 20

Manchester Youth Zone - East

Notes to the Financial Statements

For the year ended 31 March 2021

15
Investments
The Charity has invested surplus funds as follows:
Interest bearing deposits
Listed investments
At 1 April 2020
Additions
Change in market value
At 31 March 2021
16
Creditors : amounts falling due within one year
Trade creditors
Capital creditors
Other creditors
Accruals
17
Movement in funds
Unrestricted Funds
Restricted funds
-
Fixed assets
i.
-
Baily Thomas Charity
ii.
-
Ultimate Products
ii.
The movement in funds for the year is as follows:		 2021
2020
£
£
500,000
-
1,508,893
-
2,008,893
-
2021
2020
TOTAL
£
£
£
£
-
-
-
-
500,000
1,500,000
2,000,000
-
-
8,893
8,893
-
500,000
1,508,893
2,008,893
-
2021
2020
£
£
41,996
1,333
-
830,566
68,067
20,152
10,062
8,615
120,125
860,666
Opening
Balance
Income
Expenditure
Closing
Balance
£
£
£
£
610,489
3,300,694
(761,701)
3,149,482
6,399,611
64,120
(69,924)
6,393,807
-
4,000
(500)
3,500
-
3,000
(375)
2,625
6,399,611
71,120
(70,799)
6,399,932
7,010,100
3,371,814
(832,500)
9,549,414
Interest
bearing
deposits
Listed
investments

i. All of the fixed assets restricted funds represent amounts received for the construction and development of the new Youth Zone facilities.

ii. Grants and donations to purchase Sensory Room Equipment.

The movement in funds for the prior year is as follows:

Unrestricted Funds
Restricted funds		 Opening
Balance
Income
Expenditure
Closing
Balance
£
£
£
£
152,748
586,229
(128,488)
610,489
549,979
5,850,224
(592)
6,399,611
702,727
6,436,453
(129,080)
7,010,100

Page 21

Manchester Youth Zone - East

Notes to the Financial Statements For the year ended 31 March 2021

----- Start of picture text -----
18 Analysis of net assets between funds Unrestricted Restricted Total Total
funds funds funds funds
2021 2021 2021 2020
£ £ £ £
-
Tangible fixed assets 6,337,128 6,337,128 6,159,018
Net current assets 3,149,482 62,804 3,212,286 851,082
3,149,482 6,399,932 9,549,414 7,010,100
Unrestricted Restricted Total Total
funds funds funds funds
2020 2020 2020 2019
£ £ £ £
-
Tangible fixed assets 6,159,018 6,159,018 729,462
Net current assets 610,489 240,593 851,082 ( 26,735)
610,489 6,399,611 7,010,100 702,727
----- End of picture text -----

19 Related party transactions

There were no Related Party transactions during the year (2020: Nil)

20 Control

There is no ultimate controlling party.