2024-03-31-accounts

HAMMERSMITH & FULHAM YOUTH ZONE

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Charity Number: 1179981 Company Number: 10381611

HAMMERSMITH & FULHAM YOUTH ZONE

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Contents	Page
Reference and administrative information	1
Trustees’ report	2-7
Independent auditor’s report	8-10
Statement of financial activities	11
Balance sheet	12
Statement of cash flows	13
Notes to the financial statements	14-19

HAMMERSMITH & FULHAM YOUTH ZONE Reference and Administrative Information for the year ended 31 March 2024

Trustees

M Davies (chair) J Masraff R Devey K Wadey (resigned 28 July 2023) B Tatham V Jerome I Wason N Trehy L Hewitson R Lehmann (appointed 29 September 2023) C Averty (appointed 29 September 2023) J Chigwende (appointed 29 September 2023)

Company registered number 10381611

Charity registered number 1179981

Registered office

2 EdCity Walk, London W12 7TF

Chief executive officer

Elanor Gunn

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://westyouthzone.org

Page 1

HAMMERSMITH & FULHAM YOUTH ZONE Trustees’ Report for the year ended 31 March 2024 (continued)

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 year ending 31 March 2024.

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’ (Where Everyone Sticks Together), is a purpose-built facility for the borough’s young people aged 8 – 19, and up to 25 for those with disabilities.

The Youth Zone is located in White City, on the corner of South Africa Road and Dorando Close, and was completed in January 2024, with a full opening taking place in April. It is a core component of a wider development known as EdCity, an education and charity hub in White City which brings 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 affordable homes.

Hammersmith & Fulham Youth Zone joins a network of similar independent youth organisations that all share the same principles, developed by the charity OnSide Youth Zones (charity number 1125893), 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. Young people from West London now 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 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 take place each night, such as football, boxing, dancing, climbing, visual 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 funded prior to building this amazing new facility, plus a considerable proportion of the revenue funding required to operate the Youth Zone for the first three years.

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 Trustees, who are also the Directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mark Davies (chair) Victoria Jerome

Jamie Masraff Rob Devey Ben Tatham Nicole Trehy Ian Wason Louise Haffenden Katie Wadey (stepped down July 2023) Rob Lehmann (appointed September 2023) Jenny Chigwende (appointed September 2023) Charmian Averty (appointed September 2023)

Page 2

HAMMERSMITH & FULHAM YOUTH ZONE Trustees’ Report for the year ended 31 March 2024 (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 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.

Trustees are trained through an annual Board Development Day providing an overview of key areas of responsibility, such as safeguarding; and also offered a series of monthly masterclasses covering all aspects of a Youth Zone’s operations from a Trustee’s perspective. OnSide also provide a trustee handbook and induction for new Trustees.

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 Trustees were joined this year by two Associate Trustees, Yang Yixuan and Ra’eesah Kai, aged under 26, who joined the board for a period of up to one year as a training opportunity to gain board experience and bring a different perspective to discussions. Each was paired with a board mentor, but Associate Trustees do not serve as Directors or carry any legal responsibility, nor do they have voting rights on governance matters. 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.

Pay policy

The Directors, who are the charity’s Trustees, and the senior management team who are the key management personnel, are in charge of directing and controlling, running and operating the charity on a day to day basis. All Directors give their time freely and no Directors receive remuneration in the year.

The pay of the full staff team is reviewed annually. Staff paid hourly (mostly sessional staff, but also cleaning and some reception, facilities and catering staff) are paid the London Living Wage. This is adjusted each year in April, however, in this financial year, the Trustees agreed to start those staff who began in February and March 2024 on the new higher rate. In future, it is the aim of WEST that salaried staff receive an annual pay rise to take account of cost of living increases (as long as the financial health of the organisation allows it). Other pay increases can take place for changes of role or responsibilities. The Directors benchmark salaries against other similar charities in the voluntary sector as well as across all the Youth Zone network. All changes to pay and remuneration are formally approved by the Pay and Remuneration Committee.

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 delegated 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. Since opening the Trustees have delegated day-to-day management to the Youth Zone’s Chief Executive and their senior management team, according to an agreed delegated authority framework. During this transition the Youth Zone Chief Executive was supported by OnSide’s team including Head of Openings.

Decisions are determined by consensus, or – where a vote is needed – 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. The organisational risk register is fully updated for each board meeting, with any movement and the top risks highlighted to Trustees along with mitigations. The full risk register is reviewed by Trustees every 6 months. Day ‑ to ‑ day risk management is delegated to the Chief Executive and senior leadership team.

Page 3

HAMMERSMITH & FULHAM YOUTH ZONE Trustees’ Report for the year ended 31 March 2024 (continued)

Key identified risks over the financial year and their mitigations were:

• Failure to recruit, retain and develop high quality staff in key positions

West’s recruitment strategy is dynamic, targeted and robust with ongoing assessments of salaries and benchmarking against other similar or local jobs to maintain competitiveness as much as possible. The Board supports staffing initiatives when needed and staff development / culture is focused on at the highest level within WEST.

• Difficulty achieving fundraising income target; particularly a risk in current economic climate.

Fundraising is a high priority for the Board and together with existing Founder Patrons, support is provided to the philanthropy team. The OnSide Senior Philanthropy Manager (SPM) has been in place for a period after the opening of WEST to help establish best practice and a longer term income generation strategy is being developed.

• Overspend due to higher than expected operating costs.

Resource budgets are detailed and thoroughly interrogated, building on learning from the current delivery of open Youth Zones. They are also aligned with an achievable fundraising strategy at all times. Trustees closely monitor spend against achievement of targets and are able to amend the programme structure in the unlikely event of a major shortfall.

Going forward, safeguarding will also be a key risk for WEST Youth Zone once open and operational. To mitigate this, WEST has a safeguarding Trustee portfolio holder and aims to instill a robust culture of safeguarding awareness and checks at all levels. It does this through mandatory training and DBS checks for all staff and volunteers including Trustees, and a clear safeguarding escalation procedure. Regular refreshers will also take place and safeguarding risks are discussed at the Senior Leadership and Delivery Managers team meetings. WEST is also part of key local networks for safeguarding and can access support and advice as needed from OnSide’s Safeguarding Manager.

Health and Safety in general is also a key priority in a large building with varied activities taking place. Risk assessments have been undertaken for every activity, there is a regular schedule of facility and equipment checks and inspections. A Health and Safety Committee has been formed by trustees who can meet with key operational staff to offer oversight and advice in this area.

OBJECTIVE AND ACTIVITIES

Hammersmith & Fulham Youth Zone's objectives 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.

ACHIEVEMENTS AND PERFORMANCE

We are indebted to the capital funders and founder patrons who have committed to support the Youth Zone. The focus for 2023/24 was on securing multi-year commitments of support from a family of Founder Patrons. The Youth Zone entered 2024/25 with the majority of its fundraising target secured, with further momentum building following the opening. There are also healthy reserves built up from patrons who got behind the Youth Zone in the early stages of its development. Supporters range from individuals and families to companies from a wide range of industries.

In 2023/24, the charity grew from having only one employee, Chief Executive Elanor Gunn, to nearing the full complement of staff required to open 7 days a week. As at end of March the Youth Zone had 61 employees - 14 salaried ‘core’ staff and 47 part-time hourly paid sessional workers. Onboarding and training mostly took place in February and March in the new WEST premises, ensuring that all staff were well inducted into their roles including both health and safety and safeguarding training.

The Young People's Development Group, made up of a diverse group of young people from the local area, played a crucial role in the past year. Their activities included: interviewing all youth work staff, designing wall decoration for the rooms at the Youth Zone, acting as ambassadors for the new Youth Zone coming to the community, and

Page 4

HAMMERSMITH & FULHAM YOUTH ZONE Trustees’ Report for the year ended 31 March 2024 (continued)

contributing ideas for the content of youth work sessions.

Keys were handed over in January 2024 by developers B&K to the brand new facility and the team moved into the Youth Zone, spending the next few months ‘kitting out’ the spaces, training and onboarding staff, and welcoming young people in from local schools to test out the spaces through several ‘soft openings’. The wider community were welcomed in for a series of events such as an open day and an Eid celebration. The building is highly impressive and the community were excited to see these facilities had been created especially for the benefit of local young people. In March 2024, the Youth Zone was visited by His Royal Highness the Prince of Wales, which generated a huge amount of positive press coverage and engagement for the Youth Zone. It was a special day for all involved.

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-centred 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. Hammersmith & Fulham Youth Zone will focus on increasing 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 physical health, better mental health, reduced crime, enhanced learning (and consequently 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 year 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 and fundraising. Such contributions were, on average, equivalent to one full day each calendar month.

In addition, WEST has a full-time volunteer coordinator, who has been onboarding volunteers alongside the sessional staff team – all volunteers receive the same induction training as staff. The staff team have also received training on how to support volunteers. At the end of 2023/24 16 people had already begun to volunteer regularly, with more being onboarded. We are very grateful to everyone who volunteers their time freely to help make WEST Youth Zone a success.

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 Outgoing resources Net incoming resources	£ 1,084,802 (425,954) 658,848

Reserves Policy

The Trustees have prepared projections of the operating costs of the Youth Zone. 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. The reserves policy does not consider expenditure which is linked to restricted projects and therefore covered by restricted funds. To ensure a prudent level of financial resilience in an uncertain economic climate the Trustees have determined that unrestricted reserves should be maintained to cover 6-12 months of running costs. The Trustees recognise the scale of the capital of the Youth Zone, and the charity’s intention is to continue providing high-quality facilities for the long term. With this in mind, the Trustees have designated £500,000 of the reserves as a Major Repairs and Renewals Fund and it is anticipated that some of this will be needed after 8-10 years of operation. Additionally, £50,000 has also been designated for IT and AV

Page 5

HAMMERSMITH & FULHAM YOUTH ZONE Trustees’ Report for the year ended 31 March 2024 (continued)

and it is anticipated that this may need renewing within 4 years. The Trustees manage Hammersmith & Fulham Youth Zones' finances so that an adequate level of reserves can be maintained in compliance with the reserves policy and will review the policy regularly as needed.

At 31 March 2024, the charity had total funds of £6,475,476 (2023: £5,816,628), of which £2,449,779 were unrestricted (2023: £1,991,012) and £4,025,697 were restricted (2023: £3,825,616).

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.

Future plans

The main priority for the charity in 2024/25 is establishing WEST as a high quality and valued provider of universal youth work in West London. The Trustees have agreed with the Chief Executive, a strategy and operational plan to ensure that WEST is a thriving facility open 7 days a week for young people, with quality delivery taking place, trusted by young people, parents and the community. Some key indicators of meeting this objective in the first year of operation will be:

• Over 2000 active members by year end

• Open at least 34 hours per week evenings and weekends, and 52 weeks per year

• Over 1000 visits per week

• Daily, weekly, monthly and annual facilities and equipment check schedule implemented with to ensure WEST feels like new each time someone walks in.

In order to support these objectives in the next year, we will continue to grow the family of revenue funders with a target of ensuring that the Youth Zone’s first year and a significant portion of the following two years of running costs are fully funded.

Fundraising statement

In 2023/24 OnSide’s Senior Philanthropy Manager was joined by WEST’s Head of Fundraising and Communications and Philanthropy Manager to continue the Founder Patron campaign which generates revenue pledges for WEST Youth Zone to fund the first three to four years of operation.

Revenue donations are typically received from philanthropic individuals and corporates. The Founder Patron campaign seeks unrestricted gifts of £25,000 per annum (or higher) for four years towards the revenue costs of WEST Youth Zone (some of which may also be directed towards the Youth Zone's reserves). WEST also seeks Cornerstone Patron commitments (£100,000 for four years) from those with a higher capacity. These are largely raised through one to one meetings, including a tour of the facility between the OnSide Senior Philanthropy Manager for WEST, and prospective donors. On occasion, WEST holds events to bring together groups of donors/prospective donors before following up with this one-to-one meetings. WEST does not directly contact the public to take part in fundraising, but some key stakeholders (e.g. Trustees) may undertake their own challenges to raise money for the Youth Zone.

The Head of Fundraising and Communications has also drawn up a fundraising strategy to see beyond the initial Founder Patron campaign and diversify the Youth Zone’s income in preparation for year 3 and 4 of operation (and beyond). At the end of 2023/34 a Grant and Trust Coordinator was recruited to begin this diversification.

The Charity follows the core principles of the Fundraising Regulator's Code of Practice. We do not employ third parties to undertake fundraising and WEST does not operate mass fundraising campaigns, cold calling, or streetbased collections. WEST has received zero complaints about the Charity’s fundraising work.

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

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HAMMERSMITH & FULHAM YOUTH ZONE Trustees’ Report for the year ended 31 March 2024 (continued)

company for that year. 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 prepared in accordance with the special provisions relating to small companies.

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

M. Davies Chair: Company Director and Trustee Date:

Page 7

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 2024 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 2024 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.

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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.

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, examining the donation records, and examining the lease agreement and expenditure invoices for the development.

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.

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

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 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: 29 August 2024

Page 10

HAMMERSMITH & FULHAM YOUTH ZONE Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 March 2024

				2024			2023
	Notes	Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
		£	£	£	£	£	£
Income from
Donations and legacies	2	739,041	295,000	1,034,041	1,348,412	2,849,639	4,198,051
Charitable activities		2,693	-	2,693	-	-	-
Investments	3	42,987	5,081	48,068	10,209	776	10,985
		───────	───────	───────	───────	───────	───────
Total income		784,721	300,081	1,084,802	1,358,621	2,850,415	4,209,036
		───────	───────	───────	───────	───────	───────
Expenditure on
Raising funds		6,027	-	6,027	-	-	-
Charitable activities	4	319,927	100,000	419,927	8,873	-	8,873
		───────	───────	───────	───────	───────	───────
Total expenditure		325,954	100,000	425,954	8,873	-	8,873
		───────	───────	───────	───────	───────	───────
Net income		458,767	200,081	658,848	1,349,748	2,850,415	4,200,163
Transfers between funds		-	-	-	-	-	-
		───────	───────	───────	───────	───────	───────
Net movement in funds		458,767	200,081	658,848	1,349,748	2,850,415	4,200,163
Reconciliation of funds
Total funds brought forward		1,991,012	3,825,616	5,816,628	641,264	975,201	1,616,465
		───────	───────	───────	───────	───────	───────
Total funds carried forward		2,449,779	4,025,697	6,475,476	1,991,012	3,825,616	5,816,628
		═══════	═══════	═══════	═══════	═══════	═══════

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

The notes of pages 14 to 19 form part of these financial statements.

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HAMMERSMITH & FULHAM YOUTH ZONE Balance Sheet as at 31 March 2024

			2024		2023
	Notes	£	£	£	£
Fixed assets
Tangible assets	6		3,901,224		3,554,917
Current assets
Debtors	7	132,361		166,344
Cash at bank and in hand		2,767,670		2,106,859
		───────		──────
		2,900,031		2,273,203
Creditors: Amounts falling due within one
year	8	(325,779)		(11,492)
		───────		──────
Net current assets			2,574,252		2,261,711
			───────		───────
Net assets	10		6,475,476		5,816,628
			═══════		═══════
Funds
Unrestricted Funds	9		2,449,779		1,991,012
Restricted Funds	9		4,025,697		3,825,616
			───────		───────
Total funds			6,475,476		5,816,628
			═══════		═══════

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 2024 20 August and are signed on behalf of the board by:

M Davies Chair of Trustees

Company registered number: 10381611

The notes on pages 14 to 19 form part of these financial statements.

Page 12

HAMMERSMITH & FULHAM YOUTH ZONE Statement of Cash Flows for the year ended 31 March 2024

		2024			2023
		£	£	£	£
0BCash flows from operating activities
1BCash generated from operations	2B(i)		3B963,542		4B4,026,043
5BInvesting activities
Purchase of tangible fixed assets		(350,799)		(2,578,326)
Investment income		48,068		10,985
		──────		──────
Cash flows (used in) investing activities			(302,731)		(2,567,341)
			──────		──────
Net increase in cash			660,811		1,458,702
Cash brought forward at 1 April			2,106,859		648,157
			──────		──────
Cash carried forward at 31 March			2,767,670		2,106,859
			══════		══════
6B(i) Cash flows from operating activities
Net income			658,848		4,200,163
Adjustments for:
Investment income			(48,068)		(10,985)
Depreciation			4,492		-
Decrease/(increase) in debtors			33,983		(107,264)
Increase/(decrease) in creditors			314,287		(55,871)
			──────		──────
Cash generated from operations			963,542		4,026,043
			══════		══════

Page 13

HAMMERSMITH & FULHAM YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2024 (continued)

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

The Charity has maintained a financially stable state over the last financial year. There are a number of possible challenges to WEST Youth Zone’s ability to continue as a going concern, and the Trustees have carefully considered them all as part of the overall risk management approach. WEST has a Risk Register that is updated annually and considered by management and by Trustee committees regularly.

The Trustees have ensured that all major donors are regularly contacted, that any decrease in their giving is flagged up as far in advance as possible. Our Founder Patron commitment is over four years, so we have plenty of lead in time in order to secure a renewal. We also actively seek new donors through expanding our existing network.

Whilst it is never possible to be certain of the future, to date 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 obligations for the coming financial year.

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.

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.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases: Computer equipment – 3 years

Page 14

HAMMERSMITH & FULHAM YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2024 (continued)

1 ACCOUNTING POLICIES (continued)

1.5 Tangible fixed assets (continued)

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.

2 Donations and legacies

Donations and legacies
			2024	2023
	Unrestricted	Restricted	Total	Total
	£	£	£	£
Capital grants	-	195,000	195,000	2,849,639
Donations	665,037	100,000	765,037	1,290,912
Gift aid	74,004	-	74,004	57,500
	──────	──────	──────	──────
Total	739,041	295,000	1,034,041	4,198,051
	══════	══════	══════	══════
nvestment income
			2024	2023
	Unrestricted	Restricted	Total	Total
	£	£	£	£
Bank interest	42,987	5,081	48,068	10,985
	══════	══════	══════	══════

• 3 Investment income

Page 15

HAMMERSMITH & FULHAM YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2024 (continued)

4 Expenditure on charitable activities

xpenditure on charitable activities
	Unrestricted	Restricted	Total	Total
			2024	2023
	£	£	£	£
Bank charges	126	-	126	13
Catering Costs	3,682	-	3,682	-
Consumables	381	-	381	-
Computer and website expenses	9,851	-	9,851	448
DBS checks	-	-	-	45
Depreciation	4,492	-	4,492	-
Events	1,231	-	1,231	-
Insurance	4,674	-	4,674	379
Marketing	1,205	-	1,205	-
Premises and office costs	4,143	-	4,143	-
Printing, postage and stationery	970	-	970	-
Recruitment	31,479	-	31,479	-
Staff costs (note 5)	224,745	100,000	324,745	-
Staff expenses	14,757	-	14,757	449
Sundry expenditure	264	-	264	35
Telephone	4,021	-	4,021	-
Training & consultancy	2,724	-	2,724	-
Trips and residentials	2,460	-	2,460	1,504
Volunteer expenses	1,462	-	1,462	-
Governance costs
Audit fee	6,000	-	6,000	4,800
Accountancy	1,260	-	1,260	1,200
	──────	──────	──────	──────
	319,927	100,000	419,927	8,873
	══════	══════	══════	══════

The auditor’s remuneration amounts to a fee (excluding VAT) of £5,000 for the audit and £1,100 for accounts preparation (2023: £4,000 audit, £1,000 accounts).

5 Staff costs

taff costs
	2024	2023
	£	£
Wages and salaries	297,379	-
Social security costs	21,857	-
Pension costs	5,509	-
	──────	──────
	324,745	-
	══════	══════

The average number of employees during the year was 15 (2023: nil).

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

Page 16

HAMMERSMITH & FULHAM YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2024 (continued)

6 Tangible fixed assets

6	Tangible fixed assets
		Assets under	Fixtures &	Equipment
		construction	fittings		TOTAL
		£	£	£	£
	Cost or valuation
	At 1 April 2023	3,554,917	-	-	3,554,917
	Additions	36,600	172,675	141,524	350,799
		──────	──────	──────	──────
	At 31 March 2024	3,591,517	172,675	141,524	3,905,716
		──────	──────	──────	──────
	Depreciation
	At 1 April 2023	-	-	-	-
	Charge for the year	-	-	4,492	4,492
		──────	──────	──────	──────
	At 31 March 2024	-	-	4,492	4,492
		──────	──────	──────	──────
	Net Book Value
	At 31 March 2024	3,591,517	172,675	137,032	3,901,224
		══════	══════	══════	══════
	At 31 March 2023	3,554,917	-	-	3,554,917
		══════	══════	══════	══════
7	Debtors
				2024	2023
				£	£
	Accrued interest			-	7,272
	Prepayments			7,219	1,572
	Gift aid and Founder Patron donations receivable			100,142	57,500
	Other debtors			25,000	100,000
				──────	──────
				132,361	166,344
				══════	══════
8	Creditors: Amounts falling due	within one year
				2024	2023
				£	£
	Trade creditors			92,910	5,492
	Tax and social security			22,499	-
	Other creditors			48,814	-
	Accruals and deferred income			161,556	6,000
				──────	──────
				325,779	11,492
				══════	══════

Page 17

HAMMERSMITH & FULHAM YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2024 (continued)

9	Funds
		Balance at 1	Income	Expenditure		Balance at 31
		April 2023				March 2024
	Unrestricted funds
	General funds	1,991,012	784,721	(325,954)		2,449,779
		──────	──────		──────	──────
	Restricted funds
	Capital Funds	3,825,616	300,081	(100,000)		4,025,697
		──────	──────		──────	──────
	Total funds	5,816,628	1,084,802	(425,954)		6,475,476
		══════	══════		══════	══════
		Balance at 1	Income	Expenditure		Balance at 31
		April 2022				March 2023
	Unrestricted funds
	General funds	641,264	1,358,621		(8,873)	1,991,012
		──────	──────		──────	──────
	Restricted funds
	Capital Funds	975,201	2,850,415		-	3,825,616
		──────	──────		──────	──────
	Total funds	1,616,465	4,209,036		(8,873)	5,816,628
		══════	══════		══════	══════
	Capital Funds – these are monies received towards the		building of the	Youth Zone facility.
10	Analysis of net assets between funds
			Unrestricted		Restricted	Total
			£		£	£
	Fund balances at 31 March 2024 are	represented by:
	Tangible fixed assets			-	3,901,224	3,901,224
	Current assets		2,775,558		124,473	2,900,031
	Creditors due within one year		(325,779)		-	(325,779)
			──────		──────	──────
	Total net assets at 31 March 2024		2,449,779		4,025,697	6,475,476
			══════		══════	══════
			Unrestricted		Restricted	Total
			£		£	£
	Fund balances at 31 March 2023 are	represented by:
	Tangible fixed assets			-	3,554,917	3,554,917
	Current assets		2,002,504		270,699	2,273,203
	Creditors due within one year		(11,492)		-	(11,492)
			──────		──────	──────
	Total net assets at 31 March 2023		1,991,012		3,825,616	5,816,628
			══════		══════	══════

Page 18

HAMMERSMITH & FULHAM YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2024 (continued)

11 Trustees’ remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2023: £nil).

No Trustees were reimbursed expenses in the year (2023: £nil).

12 Related party transactions

During the year, Trustees donated a total of £20,000 to the charity (2023: £128,000).

Key Management Personnel remuneration was £155,357 (2023: £nil).

There were no other related party transactions during the year.

Page 19