## **HAMMERSMITH & FULHAM YOUTH ZONE** 

# **TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** 

Charity Number: 1179981 Company Number: 10381611 



## **HAMMERSMITH & FULHAM YOUTH ZONE** 

# **TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** 

|**Contents**|**Page**|
|---|---|
|Reference and administrative information|1|
|Trustees’ report|2-6|
|Independent auditor’s report|7-9|
|Statement of financial activities|10|
|Balance sheet|11|
|Statement of cash flows|12|
|Notes to the financial statements|13-18|





**HAMMERSMITH & FULHAM YOUTH ZONE Reference and Administrative Information for the year ended 31 March 2022** 

## **Trustees** 

M Davies S Fennimore J Masraff R Devey K Wadey B Tatham (appointed 24 June 2021) V Jerome (appointed 12 May 2021) 

## **Company registered number** 

10381611 

## **Charity registered number** 

1179981 

## **Registered office** 

Atria, Spa Road, Bolton, BL1 4AG 

## **Chief executive officer** 

Not yet appointed 

## **Auditor** 

Jacob Cavenagh & Skeet, 5 Robin Hood Lane, Sutton SM1 2SW 

## **Bankers** 

Handelsbanken, Ground Floor, 3-5 Eastern Road, Romford, RM1 3NH 

## **Solicitors** 

Teacher Stern, 37-41 Bedford Row, London, WC1R 4JH 

## **Trading name** 

WEST - 'Where Everyone Sticks Together' 

## **Website** 

https://www.onsideyouthzones.org/youth-zones/11129/ 

Page 1 



**HAMMERSMITH & FULHAM YOUTH ZONE Trustees’ Report for the year ended 31 March 2022** 

The Trustees, who are also Directors of the company, present their Directors' report for the purposes of section 417 of the Companies Act 2006 and Trustees' Annual Report for the purposes of section 162 of the Charities Act 2011 together with the Financial Statements of the Charity for the period ending 31 March 2022. 

Hammersmith & Fulham Youth Zone was incorporated on 17 September 2016 (Company registration number: 10381611) as a company limited by guarantee and registered as a Charity on 19 September 2018 (Charity registration number: 1179981). 

## **Who we are** 

Hammersmith & Fulham Youth Zone, named by young people as ‘West', will be a purpose-built facility for the borough’s young people aged 8 – 19, and up to 25 for those with disabilities. 

The Youth Zone will be located in White City, on the corner of South Africa Road and Dorando Close, and is expected to be completed in 2023. It is a core component of a wider development known as EdCity, which will create an education and charity hub in White City – bringing social and educational benefits to the local community. As well as the Youth Zone, once finished EdCity will include new premises for the primary school, nursery, and adult education centre, as well as a new office space, and new affordable homes. 

Hammersmith & Fulham Youth Zone will join a network of similar independent youth organisations that all share the same principles, developed by the Charity OnSide Youth Zones, which is building 21st century youth facilities across the UK. Youth Zones are based upon a proven model, which has been established in several other towns and cities across the country, and young people from Hammersmith and Fulham will have access to a variety of fantastic activities for a cost of only £5 for an annual membership and 50p per visit. The Youth Zone will provide 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, such as football, boxing, dancing, climbing, creative arts, music, drama and employability training – all for just 50p per visit. 

The OnSide Youth Zone model uses a unique partnership approach; drawing together the Local Authority, private sector businesses, young people and the wider local community. This partnership approach aims to establish the Youth Zone right in the heart of the community for the long term, whilst meeting the needs of young people today. Preparation for Hammersmith & Fulham Youth Zone has been taking place for a number of years, with all the capital funding in place to develop this amazing new facility, plus a considerable proportion of the revenue funding required to operate the Youth Zone for the first three years. The last year has seen great progress with the project, with all parties renewing their commitment to the Youth Zone and EdCity, following the impact of Covid, which allowed construction to start in the summer of 2021. Between now and the end of 2023, the Youth Zone building will take shape, with a range of other activity taking place on all aspects of the project to ensure that young people benefit from their amazing new Youth Zone. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing Document** 

Hammersmith & Fulham Youth Zone is a company limited by guarantee without share capital and registered under the Companies Act 2006, registration number 10381611. The company is governed by its Memorandum and Articles of Association dated 17 September 2016. Management of the company’s affairs is vested in the coDirectors. It is a Charity registered with the Charity Commission on 19 September 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** 

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 Directors 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. 

Page 2 



**HAMMERSMITH & FULHAM YOUTH ZONE Trustees’ Report for the year ended 31 March 2022 (continued)** 

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 Directors 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. 

Trustees are trained through a Board Development Day before the Youth Zone opens, providing a complete overview on Governance, Safeguarding, Fundraising and overseeing the Youth Zone’s offer; and also a series of monthly masterclasses covering all aspects of a Youth Zone’s operations from a Trustee’s perspective. 

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 re-appointment 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 company’s Memorandum and Articles of Association, dated on incorporation on 17 September 2016, which may be inspected at the Hammersmith & Fulham Youth Zone registered office. 

## **Organisational Structure** 

Hammersmith & Fulham Youth Zone 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 Hammersmith & Fulham Youth Zone and for ensuring that the Charity satisfies its legal and contractual obligations. Trustees meet approximately every two months. Prior to opening the Trustees delegate day-to-day running of the project to the OnSide team – a group of specialists who deliver all aspects required to open a Youth Zone successfully. After opening the Trustees will delegate day-to-day management to the Youth Zone’s Chief Executive and their senior management team. 

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. 

## **Risk management** 

The Trustees have considered the major risks to which the Charity is exposed and have established suitable risk management and control procedures. 

The main risks and controls are as follows: 

- The Youth Zone facility not being built according to the required specification or within the available budget – the Agreement for Lease protects H&F Youth Zone’s interests in these areas which are the responsibility for the Developer and Landlord. 

- The Youth Zone opens with insufficient funding to deliver the target core offer for all Youth Zones – OnSide have recruited a dedicated major donor fundraiser to raise the ongoing running costs required for the first three years with the support of the Youth Zone’s Board. We are more than half way to this target. 

## **Related party transactions** 

There were no transactions with related parties required to be disclosed in the financial statements. 

## **OBJECTIVE AND ACTIVITIES** 

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

Page 3 



**HAMMERSMITH & FULHAM YOUTH ZONE Trustees’ Report for the year ended 31 March 2022 (continued)** 

## **ACHIEVEMENTS AND PERFORMANCE** 

We are indebted to the capital funders and founder patrons who have committed to support the Youth Zone. London Borough of Hammersmith & Fulham (LBHF) have committed their support to the capital project and have provided a significant portion of the finances needed for the construction of the facility, as well as providing leadership in their role as a major strategic partner. Ark have also contributed considerable capital funding as part of their agreement with the Council for the wider development. The Seroussi Foundation (in partnership with the UBS Optimus Foundation), the St James's Place Foundation, Goldman Sachs Gives, the JMCMRJ Sorrell Foundation, the Charles Dunstone Charitable Trust, and the Nedungadi family have together pledged to provide all the remaining capital funding required for the construction and have been instrumental in driving the project forward. With all capital raised for construction, the charity’s remaining task is to raise the capital required for the furniture, fittings and equipment prior to opening. 

The Founder Patron campaign, which provides operating revenue for the Youth Zone has continued to progress over the last 12 months. The Founder Patron campaign, which provides operating revenue for the Youth Zone has continued to progress over the last 12 months. The Founder Patron family now includes Fullers, GSK, the Lord Mayor’s Appeal, Future Charity, Mark Davies, Ian and Gigi Wason, the Devey Family, Peter & Lindy Estlin, the Edward and Catherine Wray Charitable Trust, the Carter Family, Bridges Impact Foundation, the Seroussi Foundation, Michael and Emma Davies, The Greenslade Family Foundation, The Steel Charitable Trust, Westfield, Novartis, Fiduciary Co-investment Partners, The Resolution Trust, Teacher Stern, and other anonymous donors. This group is growing, and we are moving positively towards our target of securing 40 Founder Patrons prior to opening, alongside other funders who have committed to supporting the Youth Zone. 

In 2021/22, the Charity welcomed Victoria Jerome and Ben Tatham onto the Board of Trustees, with Victoria taking on the role of Charity Treasurer. Over this period all trustees and partners have continued to work tirelessly to ensure the Youth Zone is afforded the best possible start to life. We are grateful for the continued support of all the Youth Zone’s funders in this period who have remained committed to our work with young people. Thankfully, at the end of the year we can report that construction has commenced on this long-awaited facility, a momentous milestone in this project which will have a life changing impact on thousands of young people living in Hammersmith & Fulham and beyond. 

Hammersmith & Fulham Youth Zone enjoys the support of OnSide Youth Zones (charity number 1125893) in its development and will become a member of the growing OnSide network of Youth Zones. 

## **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 borough-centre 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, Hammersmith & Fulham Youth Zone will focus on attendance and participation by young members across the entire community 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 Hammersmith & Fulham Youth Zone 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. 

## **Volunteers’ contribution** 

Throughout the period all members of the Board of Trustees made invaluable voluntary contributions to the Charity’s 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 one full day each calendar month. 

Page 4 



**HAMMERSMITH & FULHAM YOUTH ZONE Trustees’ Report for the year ended 31 March 2022 (continued)** 

## **Investment Activities** 

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. Currently, the Charity does not currently hold any investments other than cash on deposit with Svenska Handelsbanken. 

## **FINANCIAL REVIEW** 

A summary of the results for the year is shown below: 

||£|
|---|---|
|Incoming resources|1,291,926|
|Outgoing resources|(7,751)|
|Net incoming resources|1,284,175|



The charity is still in its embryonic phase with donations being received to fund the design and construction of the Youth Zone. The charity continues to cultivate further donations from a variety of sources as outlined below. 

## **Reserves Policy** 

The Charity has secured the funding to complete the construction of the Youth Zone and the Founder Patron (revenue) campaign is well underway. The Trustees have prepared projections of the operating costs once completed. The Board of Trustees of Hammersmith & Fulham Youth Zone has established a reserves policy which appropriately reflects the risks to which the Charity is exposed. Once the Youth Zone is operating and in compliance with such policy, it will review regularly both the sum it wishes to hold in reserves in the unrestricted budget and the basis for that figure. The reserves policy does not consider expenditure which is linked to restricted projects and therefore covered by restricted funds. 

In reviewing the potential costs that could arise should a significant reduction in income be incurred, the Trustees have determined that unrestricted, ‘free’, reserves should be maintained at approximately 3 months running costs. The Trustees manage Hammersmith & Fulham Youth Zones' finances so that an adequate level of reserves can be maintained in compliance with the reserves policy. At 31 March 2022, the charity had total funds of £1,616,465, of which £641,264 were unrestricted and £975,201 were restricted. 

## **Principal Funding Sources** 

The Directors wish to record their thanks to all those individuals and companies who have made donations or pledged their support to the work of the Charity; this includes all those listed above plus other anonymous donors. 

## **Future plans** 

In the next year we will continue to fundraise both for the remaining fixtures, fittings & equipment, and also to grow the Youth Zone’s family of revenue funders with a target of ensuring that the Youth Zone’s pre-opening and first three years of running costs are fully funded. Many other activities will also commence, now that construction is underway on the EdCity development, including engaging other local community organisations to ensure the Youth Zone is a valued and embedded partner in the area, and forming a Young People’s Development Group consisting of young people from the area who will shape many aspects of the project and act as the Youth Zone’s ambassadors before and after opening. We will also look to recruit the charity’s Chief Executive, who will be the first of a large Youth Zone team, including both paid staff and volunteers, that will be recruited and inducted ready for opening. 

WEST already benefits from a Board of experienced and committed Trustees. To build on this, and in preparation for full operation, the organisation will continue to expand the Board of Directors / Trustees including portfolios for legal, HR, etc. who will provide effective governance, oversight and support across the full spectrum of Youth Zone operations and activities. 

Page 5 



**HAMMERSMITH & FULHAM YOUTH ZONE Trustees’ Report for the year ended 31 March 2022 (continued)** 

## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** 

The trustees (who are also directors of Hammersmith & Fulham Youth Zone for the purposes of company law) are responsible for preparing the Trustees' Report (incorporating the directors’ report) and the financial statements in accordance with 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). 

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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgments and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

The trustees are responsible for maintaining proper accounting records which 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. 

In so far as the trustees are aware: 

- there is no relevant audit information of which the charitable company's auditors are unaware; and 

- • the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 

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

The Trustees report was approved and was signed on behalf of the Trustees by: 

## Mark Davies 

M. Davies Chair: Company Director and Trustee Date: 2 September 2022 

Page 6 



**HAMMERSMITH & FULHAM YOUTH ZONE Independent auditor’s report to the members of Hammersmith & Fulham Youth Zone** 

## **Opinion** 

We have audited the financial statements of Hammersmith & Fulham Youth Zone (the ‘charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the 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: 

- give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources for the year then ended; 

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

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

## **Basis for opinion** 

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

## **Conclusions relating to going concern** 

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. 

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

## **Other information** 

The other information comprises the information included in the annual report, including the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the trustees' report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the directors’ report included within the trustees' report has been prepared in accordance with applicable legal requirements. 

Page 7 



**HAMMERSMITH & FULHAM YOUTH ZONE Independent auditor’s report to the members of Hammersmith & Fulham Youth Zone (continued)** 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included with the trustees' report. 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006  requires us to report to you if, in our opinion: 

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

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

- certain disclosures of trustees' remuneration specified by law are not made; or 

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

- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemptions in preparing the trustees' report and from the requirement to prepare a strategic report. 

## **Responsibilities of trustees** 

As explained more fully in the trustees' responsibilities statement, the trustees' (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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor's responsibilities for the audit of the financial statements** 

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

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

Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to company and financial reporting legislation and we considered the extent to which noncompliance might have a material effect on the financial statements. We considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Charities Act 2011. 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team. 

We determined that the principal risks were related to the recognition of income and expenditure on fixed assets. 

In response to the risks identified we designed procedures which included, but were not limited to reviewing Trustees meeting minutes, and examining the grant documentation and the lease agreement for the development. 

Page 8 



## **HAMMERSMITH & FULHAM YOUTH ZONE Independent auditor’s report to the members of Hammersmith & Fulham Youth Zone (continued)** 

## **Auditor's responsibilities for the audit of the financial statements (continued)** 

There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. 

## **Use of our report** 

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

## Paul Newton 

**Paul Newton FCA (Senior Statutory Auditor) for and on behalf of Jacob Cavenagh & Skeet Statutory Auditor Chartered Accountants** 

5 Robin Hood Lane Sutton Surrey SM1 2SW 

Dated: 6 September 2022 

Page 9 



## **HAMMERSMITH & FULHAM YOUTH ZONE Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 March 2022** 

|||||**2022**|||**2021**|
|---|---|---|---|---|---|---|---|
||**Notes**|**Unrestricted**|**Restricted**|**Total**|**Unrestricted**|**Restricted**|**Total**|
|||**£**|**£**|**£**|**£**|**£**|**£**|
|**Income from**||||||||
|Donations and legacies|**2**|416,634|875,000|1,291,634|125,000|-|125,000|
|Investments|**3**|227|65|292|93|44|137|
|||───────|───────|───────|───────|───────|───────|
|**Total income**||416,861|875,065|1,291,926|125,093|44|125,137|
|||───────|───────|───────|───────|───────|───────|
|**Expenditure on**||||||||
|Raising funds||1,893|-|1,893|-|-|-|
|Charitable activities|**4**|5,858|-|5,858|1,578|-|1,578|
|||───────|───────|───────|───────|───────|───────|
|**Total expenditure**||7,751|-|7,751|1,578|-|1,578|
|||───────|───────|───────|───────|───────|───────|
|**Net income**||409,110|875,065|1,284,175|123,515|44|123,559|
|**Transfers between funds**||-|-|-|-|-|-|
|||───────|───────|───────|───────|───────|───────|
|**Net movement in funds**||409,110|875,065|1,284,175|123,515|44|123,559|
|**Reconciliation of funds**||||||||
|Total funds brought forward||232,154|100,136|332,290|108,639|100,092|208,731|
|||───────|───────|───────|───────|───────|───────|
|**Total funds carried forward**||641,264|975,201|1,616,465|232,154|100,136|332,290|
|||═══════|═══════|═══════|═══════|═══════|═══════|



All of the above results are derived from continuing activities and include all gains and losses recognized in the year. 

The notes of pages 13 to 18 form part of these financial statements. 

Page 10 



**HAMMERSMITH & FULHAM YOUTH ZONE Balance Sheet as at 31 March 2022** 

||||**2022**||**2021**|
|---|---|---|---|---|---|
||**Notes**|**£**|**£**|**£**|**£**|
|**Fixed assets**||||||
|Tangible assets|**7**||976,591||38,811|
|**Current assets**||||||
|Debtors|**8**|59,080|||-|
|Cash at bank and in hand||648,157||294,689||
|||──────||──────||
|||707,237||294,689||
|**Creditors**: Amounts falling due within one||||||
|year|**9**|(67,363)||(1,210)||
|||──────||──────||
|**Net current assets**|||639,874||293,479|
||||───────|||
||||─||────────|
|**Net assets**|**11**||1,616,465||332,290|
||||═══════|||
||||═||════════|
|**Funds**||||||
|Unrestricted Funds|**10**||641,264||232,154|
|Restricted Funds|**10**||975,201||100,136|
||||───────|||
||||─||────────|
|**Total funds**|||1,616,465||332,290|
||||═══════|||
||||═||════════|



The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. 

These financial statements were approved by the board of trustees and authorised for issue on 2 September 2022 and are signed on behalf of the board by: 

## Mark Davies 

M Davies Chair of Trustees 

Company registered number: 10381611 

The notes on pages 13 to 18 form part of these financial statements. 

Page 11 



**HAMMERSMITH & FULHAM YOUTH ZONE Statement of Cash Flows for the year ended 31 March 2022** 

|||**2022**||**2021**||
|---|---|---|---|---|---|
|||**£**|**£**|**£**|**£**|
|**Cash flows from operating activities**||||||
|Cash generated from operations|**(i)**||1,228,956||119,112|
|**Investing activities**||||||
|Purchase of tangible fixed assets||(875,780)||(16,806)||
|Investment income||292||137||
|||──────||──────||
|**Cash flows (used in) investing activities**|||(875,488)||(16,669)|
||||──────||──────|
|**Net increase/(decrease) in cash**|||353,468||102,443|
|Cash brought forward at 1 April|||294,689||192,246|
||||──────||──────|
|**Cash carried forward at 31 March**|||648,157||294,689|
||||══════||══════|
|**(i) Cash flows from operating activities**||||||
|**Net income**|||1,284,175||123,559|
|**Adjustments for:**||||||
|Investment income|||(292)||(137)|
|Increase in debtors|||(59,080)||-|
|Increase/(decrease) in creditors|||4,153||(4,310)|
||||──────||──────|
|**Cash generated from operations**|||1,228,956||119,112|
||||══════||══════|



Page 12 



**HAMMERSMITH & FULHAM YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2022** 

## **1 ACCOUNTING POLICIES** 

Hammersmith & Fulham Youth Zone is a private charitable company limited by guarantee. The charitable company is incorporated in England and Wales. The address of the registered office is: Atria, Spa Road, Bolton, BL1 4AG. 

## **1.1 Basis of preparation** 

The financial statements have been prepared under the Companies Act 2006 and the Charities Act 2011, and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)), and Financial Reporting Standard 102 (FRS 102). 

The financial statements are prepared in sterling, rounded to the nearest pound. The charity is a public benefit entity as defined by FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 

## **1.2 Going concern** 

Despite the pandemic, the Charity has maintained a financially stable state over the last financial period, and continues to do so. Although the pandemic has affected the pace of construction of the Youth Zone, as the charity has no ongoing financial obligations, the slower pace of the project does not present the Trustees with any immediate financial concerns. 

The Trustees have taken a number of steps to assess the Youth Zone’s ability to continue as a going concern; all key donors have been contacted in order to identify any challenges for them in maintaining their support and Trustees were delighted that all the parties remain fully committed to the project. 

Fundraising in a post Covid-19 landscape will present challenges, however we are well on track to securing 40 Founder Patrons prior to opening, as well as raising the full capital requirement needed to complete the build. 

Whilst it is never possible to be certain of the future, the Trustees consider that the steps taken are sufficient to classify the charity as a going concern and are confident in the Youth Zone’s ability to meet its short and medium term obligations. 

## **1.3 Income** 

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. 

Income tax recoverable in relation to donations is recognised at the time the donation is receivable. 

## **1.4 Expenditure** Raising funds 

This expenditure comprises costs incurred in encouraging people and organisations to contribute financially to the charity’s work. It includes the costs of hosting fundraising events. 

## Charitable activities 

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. 

All expenditure is inclusive of irrecoverable VAT. 

Page 13 



**HAMMERSMITH & FULHAM YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2022 (continued)** 

## **1 ACCOUNTING POLICIES (continued)** 

## **1.5 Tangible fixed assets** 

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. 

Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use. 

## **1.6 Debtors** 

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid. 

## **1.7 Cash at bank and in hand** 

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 

## **1.8 Creditors** 

Creditors are recognised where the charity has a present obligation arising 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 are recognised at their settlement amount. 

## **1.9 Financial instruments** 

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

## **1.10 Funds** 

Unrestricted funds are those which are not subject to any special restrictions and they can be used as the Trustees decide in furtherance of the general objectives of the charity. 

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 aim and use of each restricted fund is set out in the notes to the financial statements. Investment income is allocated to the appropriate fund. 

## **1.11 Accounting estimates and judgements** 

There were no significant estimates and judgements made by the charity. 

Page 14 



**HAMMERSMITH & FULHAM YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2022 (continued)** 

## **2 Donations and legacies** 

|**2**|**Donations and legacies**|||||
|---|---|---|---|---|---|
|||||**2022**|**2021**|
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**£**|**£**|**£**||
||Capital grants|-|875,000|875,000|-|
||Donations|362,400|-|362,400|125,000|
||Gift aid|54,234|-|54,234|-|
|||──────|──────|──────|──────|
||Total|416,634|875,000|1,291,634|125,000|
|||══════|══════|══════|══════|
|**3**|**Investment income**|||||
|||||**2022**|**2021**|
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**£**|**£**|**£**||
||Bank interest|227|65|292|137|
|||══════|══════|══════|══════|
|**4**|**Expenditure on charitable activities**|||||
|||||**2022**|**2021**|
||**Support costs**|||**£**|**£**|
||Bank charges|||6|4|
||Computer and website expenses|||68|-|
||DBS checks|||21|10|
||Insurance|||303|364|
||Printing, postage and stationery|||59|-|
||Sundry expenditure|||49|-|
||**Governance costs**|||||
||Audit fee|||4,200|-|
||Accountancy|||1,152|-|
||Independent examiner’s fee|||-|1,200|
|||||──────|──────|
|||||5,858|1,578|
|||||══════|══════|



The auditor’s remuneration amounts to a fee (excluding VAT) of £3,500 for the audit and £960 for accounts preparation (2021: Independent Examination fee of £1,000 excluding VAT). 

## **5 Staff costs** 

There were no employees employed during the current or prior year. 

No member of staff received payments in excess of £60,000 in the current or prior year. 

Page 15 



**HAMMERSMITH & FULHAM YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2022 (continued)** 

## **6 Trustees’ remuneration and expenses** 

During the year, no trustees received any remuneration or other benefits (2021: £nil). 

No trustees were reimbursed expenses in the year (2021: nil). 

## **7 Tangible fixed assets** 

|||**Assets under the course**|**Assets under the course**|
|---|---|---|---|
|||**of construction**||
||||**£**|
||**Cost or valuation**|||
||At 1 April 2021||38,811|
||Additions||937,780|
||||──────|
||At 31 March 2022||976,591|
||||══════|
||**Net book value**|||
||At 31 March 2022||976,591|
||||══════|
||At 31 March 2021||38,811|
||||══════|
|**8**|**Debtors**|||
|||**2022**|**2021**|
|||**£**|**£**|
||Prepayments|446|-|
||Gift aid receivable|58,634|-|
|||──────|──────|
|||59,080|-|
|||══════|══════|
||All amounts fall due within one year.|||
|**9**|**Creditors: Amounts falling due within one year**|||
|||**2022**|**2021**|
|||**£**|**£**|
||Trade creditors|11|10|
||Accruals & deferred income|67,352|1,200|
|||──────|──────|
|||67,363|1,210|
|||══════|══════|



Page 16 



**HAMMERSMITH & FULHAM YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2022 (continued)** 

|**10**|**Funds**||||||
|---|---|---|---|---|---|---|
|||**Balance at 1**|**Income**|<br>**Expenditure**||**Balance at 31**|
|||**April 2021**||||**March 2022**|
||**Unrestricted funds**||||||
||General funds|232,154|416,861||(7,751)|641,264|
|||──────|──────||──────|──────|
||**Restricted funds**||||||
||Capital Funds|100,136|875,065||-|975,201|
|||──────|──────||──────|──────|
||**Total funds**|332,290|1,291,926||(7,751)|1,616,465|
|||══════|══════||══════|══════|
|||**Balance at 1**|**Income**|<br>**Expenditure**||**Balance at 31**|
|||**April 2020**||||**March 2021**|
||**Unrestricted funds**||||||
||General funds|108,639|125,093||(1,578)|232,154|
|||──────|──────||──────|──────|
||**Restricted funds**||||||
||Capital Funds|100,092|44||-|100,136|
|||──────|──────||──────|──────|
||**Total funds**|208,731|125,137||(1,578)|332,290|
|||══════|══════||══════|══════|
||Capital Funds – these are monies received towards the||building of the Youth Zone facility.||||
|**11**|**Analysis of net assets between funds**||||||
||||**Unrestricted**||**Restricted**|**Total**|
||||**£**||**£**|**£**|
||Fund balances at 31 March 2022 are|represented by:|||||
||Tangible fixed assets|||1,390|<br>975,201|976,591|
||Current assets||707,237||<br>-|707,237|
||Creditors due within one year||(67,363)||<br>-|(67,363)|
||||──────||──────|──────|
||**Total net assets at 31 March 2022**||641,264||<br>975,201|1,616,465|
||||══════||══════|══════|
||||**Unrestricted**||**Restricted**|**Total**|
||||**£**||**£**|**£**|
||Fund balances at 31 March 2021 are|represented by:|||||
||Tangible fixed assets||38,811||<br>-|38,811|
||Current assets||194,553||<br>100,136|294,689|
||Creditors due within one year||(1,210)||<br>-|(1,210)|
||||──────||──────|──────|
||**Total net assets at 31 March 2021**||232,154||<br>100,136|332,290|
||||══════||══════|══════|



Page 17 



**HAMMERSMITH & FULHAM YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2022 (continued)** 

## **12 Related party transactions** 

During the year, trustees donated a total of £75,000 to the charity (2021: £nil). 

There were no other related party transactions during the year. 

## **13 Capital commitments** 

Capital commitments at 31 March 2022 

**£** 2,563,000 ══════ 

Page 18