# **The Youth Endowment Fund Charitable Trust Annual report and financial statements**
## **For the period from 01 January to 31 December 2020**
**Charity number: 1185413**
## **Reference and Administrative Details**
The Youth Endowment Fund Charitable Trust is a registered charity (number 1185413). It was established on 10 April 2019 and registered by the Charity Commission on 20 September 2019.
Impetus – The Private Equity Foundation (‘Impetus’) is the sole corporate trustee of the Youth Endowment Fund. Impetus is a company limited by guarantee (number 08460519) and a registered charity (number 1152262).
The directors of Impetus are:
Hanneke Smits, Chair Louis Elson Bill Benjamin Filippo Cardini Charles Edwards Rohan Haldea Vanessa Maydon Natasha Porter Robert Ramsauer Lisa Stone Simon Turner Shani Zindel
Chair of The Youth Endowment Fund Committee: Sir Kevan Collins
YEF Executive Director: Jon Yates
Registered office: 10 Queen Street Place London, EC4R 1AG Auditor: Haysmacintyre LLP 10 Queen Street Place London, EC4R 1AG
Banker: NatWest 127-128 High Holborn London, WC1V 6PQ
Solicitors: Russell-Cooke 2 Putney Hill London, SW15 6AB Investment managers: Goldman Sachs International Plumtree Court 25 Shoe Lane London, EC4A 4AU
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## **Contents**
|Trustees Report||
|---|---|
|Objectives and Activities|4|
|Plans for Future Periods|7|
|Financial Review|7|
|Structure, Governance and Management|9|
|Statement of Responsibilities of the Trustees|13|
|Independent Auditor’s Report|14|
|Financial Statements|17|
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The trustees are pleased to present their annual report on the work of The Youth Endowment Fund (YEF) in 2020 and its plans for 2021, together with the financial statements for the year ended 31 December 2020.
## **Objectives and Activities**
The Youth Endowment Fund exists to prevent children from becoming involved in violence. Our vision is ‘A world where no child or young person becomes involved in violence’. Our mission is ‘To find what works and build a movement to put this knowledge into practice.’ Our strategy commits us to doing this by delivering on three highly interlinked tasks as detailed in our strategy.
Our primary objective in 2020 was to ensure YEF operated as an effective entity to deliver on these three tasks, it supported the youth sector in particular during the COVID pandemic and it readied itself for an uplift in activity in 2021 as the pandemic receded.
In total we set ourselves four objectives:
- Strengthen our Foundations.
- Build our core capabilities.
- Deliver our existing rounds and support the youth sector.
- Build evidence.
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To pursue these objectives, we pursued a number of activities which were designed to deliver on the overall objectives. Our performance has been strong overall in delivering these activities as shown in the below table:
**----- Start of picture text -----**
Objective Activities Performance
Strengthen Strengthen our Diversity We have established an internal Racial Equality,
our and Inclusion Foundation Diversity and Inclusion group which has
Foundations commissioned a number of important reviews of our
work. This has led to a new Theory of Power as well
as revisions to our Evaluation Strategy.
We have conducted a series of roundtables with
leaders of Black led organisations. These have led to
a series of commitments including the establishment
of an Advisory Group and a ring-fenced fund for
minority-led organisations.
We have significantly diversified our team and our
governance structure with approximately 38% of all
staff coming from Black, Asian and Minority Ethnic
backgrounds with 25% of staff identifying as Black.
Strengthen our Funding We have established a clear Supplementary Funding
Foundation strategy which is on track for delivering the £15.5m
of supplementary funding specified in the Grant
Agreement.
Strengthen our Strategy We have established clear strategic plans across our
Foundation work. This includes our capacity building strategy,
our targeted projects strategy, our grant-making and
evaluation strategy, our place-based strategy and
our emerging change and impact strategy.
Strengthen our Capacity We have strengthened our capacity to deliver
Foundation through significant recruitment strengthening
throughout our teams. We have established a strong
process of project management on our core projects.
We have commissioned and on track to complete the
build on a CRM System which will underpin all of our
work.
Strengthen our Culture We have instituted a set of Values and Behaviours
Foundation for all our work. We have made changes in the way
in which we are structured and operate to empower
staff and increase decision making clarity. We have
built a strong induction process. The result has been
a significant and striking increase in staff morale as
seen in staff survey results. We are investing in
management training.
Build our Build our Knowledge We have established the foundations of our
Core capability knowledge work so that we can ensure that we are at
Capabilities the cutting edge of identifying what works in reducing
violence. We have designed a clear Outcomes
Framework which identifies which intermediate
outcomes are predictors and causes of later
reductions in violence. We have produced a rigorous
evaluation strategy. We have commissioned a
systematic review of metrics so that we have the
best quality metrics for measuring the impact of our
work.
**----- End of picture text -----**
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Build our Trust and We have build significant stakeholder relationships
Influence capability during the year. This includes across the youth
sector, education sector, police and social care
sector. We will be looking to strengthen this further.
We have invested significantly in our relationships
across the UK government and with the Welsh
Government. We have also built strong relationships
within the black-led youth charity sector.
Deliver our Deliver our existing We have maintained a strong focus on our existing
Existing Rounds grant rounds. During the Covid pandemic we
Rounds and renegotiated the majority of our Launch Grants and
Support the their evaluations to ensure that we are able to
Youth Sector maximise the learning and impact of this work. We
also continued to support our capacity building
rounds.
Support the Youth Sector We have provided £6.5m of emergency support
funding to the Youth Sector during the pandemic. We
have also reviewed learnings from this work to
provide insights to the Sector including on how best
to support young people during a pandemic.
Build Build the YEF Toolkit We completed the Evidence and Gap Map, which is
Evidence the largest repository of evidence on youth violence
in the world. We are on track to convert this into the
YEF Toolkit, which will be the UK’s first single
website that provides clear guidance of which
interventions are most effective in reducing violence.
Deliver Learning from our The evaluations of the Launch Grant Round have
Funding Rounds been effectively adjusted in the context of the
pandemic to ensure that we are still able to maximise
possible learnings. We have also brought learnings
out of our COVID emergency fund (as noted above).
Produce Research to We have produced our first Grant Round Opportunity
inform our grant rounds Report which summarises the available evidence
and information on the sector that we intend our
Thematic Funding Rounds to focus on. This has
established a new way of working which will benefit
us for all future Thematic Rounds.
**----- End of picture text -----**
## **Our approach to grant making**
Our overall objective is to prevent children and young people from becoming involved in crime and violence by finding what works and building a movement to put this into practice. Our grant making exists to support this objective. We therefore seek to fund activities that we can evaluate and that we can use as a springboard for change. To achieve this we will prioritise our funding to meet these five requirements:
- **Impact:** Is there good reason to suggest that making changes in this area will reduce youth violence?
- **Learning:** Are evaluations likely to yield learning that we can turn into advice for practice or commissioners?
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- **Potential:** Can we generate promising work to fund and evaluate?
- **Fundraising:** Will we be able to raise sufficient supplementary funding for this area of focus?
- **Scope to change practice:** Is it credible that we could deliver change things in this area?
## **Plans for Future Periods**
Due to the successful strengthening of the foundation and capacity of the YEF in 2020, 2021/2 will be a time of significant delivery. We will focus on five main priorities for 2021/22. These are laid out fully in the below table:
**----- Start of picture text -----**
Main priorities Core activities for 2021/22
Deliver two Thematic Grant Deliver our first Thematic Grant Round focused on
Rounds finding the best ways to divert children from the
criminal justice system.
Deliver our second Thematic Grant Round focused on
finding the best ways to support parents and carers of
5-14 year olds at risk of becoming involved in violence.
Launch our Place-based Work Launch our Neighbourhood Fund with five local
partnerships working to identify the most effective ways
to empower local residents and local young people in
reducing violence.
Be ready to launch our first Agency Collaboration
round focused on identifying the most effective ways
that statutory agency collaboration can reduce
violence.
Launch the YEF Toolkit Launch the YEF Toolkit in June with significant interest
and engagement in our key sectors.
Finalise our Change strategy Finalise our change strategy with a clear plan in place
for building the movement we need to deliver on our
mission.
Deliver our Supplementary Deliver our goal of raising £15.8m within the financial
Funding goals year 2021/22.
**----- End of picture text -----**
## **Financial Review**
Financial results
We received a £200m grant from the Home Office in April 2019 which is to be spent over the ten years to 2029. The grant is included in full in the income for 2019 and £4.8m of investment income was derived from it in 2020, in addition to a further £1m of additional income received during the year.
Expenditure in 2020 totalled £17.4m, of which £13.3m was on grants to interventions with a further £2.9m spend on activities we undertook directly.
Of the grant, £194m remained invested with Goldman Sachs and remained the largest component of the balance sheet at the year end. The restricted fund at the year-end amounted to £195.8m (£195m for the Home Office grant and £0.8m for the Centre of
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Excellence grant) with a small deficit of £12,475 on the unrestricted fund. The deficit in unrestricted fund will be met by supplementary income targets set in the next year.
## **Reserves**
The Impetus board, as sole trustee, agreed a policy of holding minimum restricted funds in respect of the Home Office funded work equal to six months operating expenditure. The receipt of the Home Office at the outset of our work means that this policy is comfortably met.
## **Going concern**
We consider that we have adequate financial reserves to continue to deliver our plans and that we have a reasonable expectation that we will have adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that call into doubt the charity’s ability to continue.
## **Investment policy, objectives and perfomance**
The grant from the Home Office has been invested and is managed by Goldman Sachs, with oversight form the Endowment Investment Committee. The investment objective is to achieve an average nominal return of 2%, net of management fees, over the life of the fund. To ensure that there are sufficient funds to cover planned grant giving and the costs of the partners in managing the YEF, the equivalent of six months forecast spending is held in cash and cash equivalents.
The investment portfolio has been divided into three sub-portfolios, each invested in different types of asset:
- Liquidity sub-portfolio cash and cash equivalent investments
- Mid-term sub-portfolio investment grade government and corporate bonds Growth sub-portfolio global equities.
The balance between the three portfolios will vary over time in line with the fund’s planned cash flows and the need to limit the level of capital risk within the portfolio.
To limit currency risk in the portfolio, cash and cash equivalent investments are only invested in sterling instruments. Bond investments are in sterling or hedged back into sterling. Hedging of non-sterling currency exposure arising from overseas equity investments is permitted but not required.
The fund managers are required to integrate consideration of environmental, social and governance (ESG) issues into their investment process in a thoughtful manner and actively engage with companies to improve their ESG practices and policies.
As at 31 December 2020, of the total portfolio of £194.2m, £127.3m was invested in fixed income bonds and £57.8m in equities. The performance of the managed fund against the target is most usefully measured over a longer period than was available in 2020. The value of the portfolio stood at £194.2m (2019: £195.3m) after withdrawing £15m from the portfolio to meet our working capital requirements. The Trustee’s consider that the portfolio performed well, taking advantage of the equities markets during the pandemic with a welldefined glide path to reduce equity risk post year-end, whilst beating the funds benchmarks.
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## **Structure, Governance and Management**
Structure and public benefit
YEF is a charitable trust and registered charity with Impetus as its sole corporate trustee. Impetus is a company limited by guarantee and a registered charity.
Impetus received a £200m grant from the Home Office under a grant agreement dated 21 March 2019. The Youth Endowment Fund Charitable Trust was established on 10 April 2019 and was registered by the Charity Commission on 20 September 2019 (with charity number 1185413). The grant transferred to the Trust on that date. The grant is to be spent over the ten years to March 2029.
During 2020, YEF comprised of a partnership of Impetus and two Delivery Partners, the Early Intervention Foundation and the Social Investment Business Foundation.
Its governing document is a Trust Deed made on 10 April 2019 which was amended and restated on 19 September 2019. The objects of the charity are to:
- promote safe and crime free communities;
- preserve and protect health and save lives including without limitation by providing facilities, counselling, support and advice;
- prevent or relieve poverty and hardship; and
- advance any other complementary charitable purpose the trustees think fit,
in each case with a focus on children and young people who are at risk of offending or who are offenders or ex-offenders, and those who are (or are at risk of) being adversely affected by violence or other harm as a result of crime in England and Wales, including by working together with their respective families, carers and communities; and
- advance in life and relieve the needs of children and young people including but not limited to those:
- who are or who are at risk of offending or who are offenders or ex-offenders; or
- who are or who are at risk of being adversely affected by violence or other harm as a result of crime in England and Wales
through the provision of recreational and leisure time activities provided in the interests of social welfare, which are designed to improve their conditions of life and which develop their skills, capacities and capabilities to enable them to participate in society as mature and responsible individuals;
- to promote social inclusion amongst children and young people who are or who are at risk of being socially excluded as a result of their social and economic circumstances; and
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- who are at risk of offending or who are offenders or ex-offenders, or
- who are or who are at risk of being adversely affected by violence or other harm as a result of crime in England and Wales;
by providing facilities and services that relieve the needs of such children and young people and assist them to integrate into society.
- to advance education and promote research including without limitation into the nature and causes of crime amongst young people and the effectiveness of different forms of intervention which seek to reduce crime and its impact and to disseminate the useful results of such research.
The trustee has had regard to its duties under section 17 of the Charities Act 2011. Charity trustees have a duty to report in the trustees’ annual report on their charity’s public benefit. They should demonstrate that:
- **The benefits generated by the activities of the charity are clear.** This report sets out in the activities which the YEF has carried out in the period supporting interventions and striving to achieve our objects.
- **The benefits generated relate to the objects of the charity.** All activities undertaken are intended to further YEF’s charitable objects, noted above.
- **The people who receive support are entitled to do so according to criteria set out in the charity’s objects.** The YEF exists to prevent children and young people from getting caught up in crime and violence by finding and growing the best possible ways to support those most at risk. This report sets out ways in which it is working to ensure that the beneficiaries are supported.
## **Governance and management**
Impetus acts as the sole corporate trustee through its board of trustees. Impetus established The Youth Endowment Fund Charitable Trust Committee as a committee of its board. The Committee has delegated responsibility for the management of the Youth Endowment Fund and compliance with, and implementation of the Home Office Grant Agreement.
Impetus has the following matters reserved to it, receiving recommendations from the Committee on each matter:
- the overall strategy for the charity and the grants strategy or any material changes thereto;
- a budget and business plan for the charity within the framework set by the Home Office Grant Agreement and Partnership Agreement;
- the appointment or termination of appointment of Committee members and the YEF Executive Director;
- individual grants or material changes to existing grants with a value in excess of £10 million, including those made from Supplementary Funding;
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- the terms of any partnerships with other funders, where their funding is in excess of £10 million;
- the Investment Policy and the appointment of investment managers.
The Committee has two sub-committees. The Grants and Evaluation Committee provides oversight and scrutiny of grants to Project Implementation Partners and agreements with independent evaluators. It makes recommendations in respect of individual grants, monitors grants awarded and produces reports for Impetus and the YEF Committee.
The Endowment Investment Committee has delegated responsibility for the investment management of the Youth Endowment Fund. The Trustee’s consider that the portfolio performed well, taking advantage of the equities markets during the pandemic with a welldefined glide path to reduce equity risk post year-end.
The trustees consider the YEF board and the senior management team to be the key management personnel for reporting purposes. Pay is set by reference to an upper quartile salary benchmark which is established using a salary survey for the sector.
## **Risks**
The Trustee is responsible for ensuring that the charity has an appropriate system of controls, financial and otherwise. It is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention of fraud and other irregularities.
The Youth Endowment Fund Committee regularly reviews and assesses the major risks to which the YEF is exposed. Movements against risks are reviewed at Committee meetings with mitigating actions and controls discussed. The risk register is also reported to Impetus’ Resources and Audit Committee.
Significant risks identified and steps taken to mitigate them are set out in the table below.
**----- Start of picture text -----**
Category Description of Risk Risk Mitigations
Impact on Many organisations working for change The YEF Director of Change is
behaviour struggle to prove that their work has leading the development of the YEF
changed behaviour. We believe there is change and impact strategy to
a risk that we could identify excellent ensure this risk is taken very
programmes and practices to fund and seriously and we are clear on our
evaluate, and generate valuable path to impact. This strategy is due
learning, but we fail to use that learning to be finalized in September 2021.
to affect behaviour change and reduce
young people becoming involved in
violence.
Raising The YEF has a requirement in its Our supplementary funding target
Supplementary agreement with the Home Office to has and will remain a top
Funding to raise £100M in supplementary funding organisational priority and we will
support our work to increase our impact by supporting ensure this area of our work is
and evaluating more programmes and resourced effectively across the
practices to learn what works to reduce fund and we will review and report
youth offending. This is an ambitious on progress very frequently. We are
target that will be a challenge to currently making very strong
achieve. progress toward this target.
Building evidence To build knowledge and understanding We have developed a strategy that
and of what works to prevent young people is based upon funding initiatives
**----- End of picture text -----**
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|understanding of
what works|from becoming involved in violence, we
must work across a number of sectors
such as policing, schools, youth sector,
social services. Due to this broad remit,
we may spread ourselves too thinly and
risk a broad, but not deep,
understanding of the issues.|and building knowledge around a
core set of themes. We have also
secured new investment in staffing
to build an internal Centre of
Expertise to support our work to
build knowledge and understanding
around these core themes.|
|---|---|---|
|Building evidence
and
understanding of
what works|We may find it difficult to compare very
different types of practices that we fund.
This is a common difficulty for What
Works Centres.|We are commissioning a significant
piece of work to identify the most
effective metrics that we can use
consistently. We are also building
an outcomes framework to identify
the links between intermediate
outcomes and violent crime.|
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## **Statement of Trustee’s Responsibilities**
The Trustee is responsible for preparing the Trustee’s Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (‘UK GAAP’).
The law applicable to charities in England & Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustee is required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the Charities SORP;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any one time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustee confirms that to the best of its knowledge there is no information relevant to the audit of which the auditors are unaware. The Trustee also confirms that it has taken all necessary steps to ensure that it itself is aware of all relevant audit information and that this information has been communicated to the auditors. The Trustee report was approved by the Trustee on 25 August 2021 and signed on its behalf by the Chair of the Impetus board as representative of the Trustee.
Hanneke Smits Representative of the Trustees
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## **Independent auditor’s report to the trustees of The Youth Endowment Fund Charitable Trust**
## **Opinion**
We have audited the financial statements of The Youth Endowment Fund Charitable Trust for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of the charity’s net movement in funds 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 Charities Act 2011.
## **Basis for opinion**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 group 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 trustee’s 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 twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees is responsible for the other information. The other information comprises the information included in the Trustee’s 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work
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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.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- adequate accounting records have not been kept by the charity; or
- sufficient accounting records have not been kept; or
- the charity financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of the trustee for the financial statements**
As explained more fully in the trustee’s responsibilities statement set out on page 13, the trustee is 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 trustee determines 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 trustee is 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 trustee either intends to liquidate the charity or to cease operations, or has 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 and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to trust law requirements over the use of restricted funds, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and payroll tax.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of voluntary income. Audit procedures performed by the engagement team included:
- Inspecting correspondence with regulators and tax authorities;
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
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- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual descriptions and entries posted at unusual times; and
- Challenging assumptions and judgements made by management in their critical accounting estimates.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: 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 charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.
Haysmacintyre LLP Statutory Auditors
10 Queen Street Place London EC4R 1AG
Date: 17 September 2021
Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
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## **Statement of Financial Activities – For the year ending 31 December 2020**
|Note
**Income:**
Donations and grants
2a
Investments
2b
**Total income**
**Expenditure:**
Charitable activities
3a
**Total expenditure**
Net gains on investments
**Net movement in funds**
**Reconciliation of funds:**
**Funds at the start of the period**
**Funds at the end of the period**|**Restricted**
**grants**
**£**
1,000,000
4,821,860|**Unrestricted**
**Other**
**£**
-
-|**2020**
**Total**
**£**
**1,000,000**
**4,821,860**|Restricted
grants
£
200,000,000
632,911|Unrestricted
Other
2019
Total
£
£
50,000
200,050,000
-
632,911
50,000
200,682,911
58,875
3,018,199
58,875
3,018,199
-
148,866
(8,875)
197,813,578
-
-
(8,875)
197,813,578|
|---|---|---|---|---|---|
||5,821,860|-|**5,821,860**|200,632,911
2,959,324
2,959,324
148,866
197,822,453
-
197,822,453||
||17,417,689|3,600|**17,421,289**|||
||17,417,689|3,600|**17,421,289**|||
||9,527,482|-|**9,527,482**|||
||(2,068,347)|(3,600)|**(2,071,947)**|||
||197,822,453|(8,875)|**197,813,578**|||
||195,754,106|(12,475)|**195,741,631**|||
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 14 to the financial statements.
The notes that follow form an integral part of these financial statements.
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## **Balance Sheet – For the year ending 31 December 2020**
|Note
**Fixed assets**
Investments
8
**Current assets**
Debtors
9
Cash at bank and in hand
10
**Net current assets**
**Net assets**
11
**Funds**
Restricted funds
12
Unrestricted funds
12
**Total funds**
**Creditors: amounts due within one year**|**2020**
2019
**£**
£
**194,220,703**
195,285,572
**194,220,703**
195,285,572
**961,352**
465,631
**1,251,118**
2,591,003
**2,212,470**
3,056,634
**(691,542)**
(528,628)
**1,520,928**
2,528,006
**195,741,631**
197,813,578
**195,754,106**
197,822,453
**(12,475)**
(8,875)
**195,741,631**
197,813,578|
|---|---|
The financial statements for The Youth Endowment Fund Charitable Trust, (charity registration number 1185413), for the period ended 31 December 2020 were approved and authorised for issue by the Trustee on 25 August 2021.
The notes that follow form an integral part of these financial statements.
**Hanneke Smits** Representative of the Trustee
**Lisa Stone** Representative of the Trustee
18
## **Statement of Cash Flows – For the year ending 31 December 2020**
|||**2020**|2019|
|---|---|---|---|
||Note|**£**|£|
|**Net cash used in operating activities**|(a)|**(16,754,096)**|197,591,023|
|**Cash flows from investing activities:**||||
|Dividends and interest from investments||**4,821,860**|-|
|Sale of investments||**145,890,329**|20,000,000|
|Purchase of investments||**(135,297,978)**|(215,000,020)|
|**Net cash used in investing activities**||**15,414,211**|(195,000,020)|
|**Change in cash and cash equivalents in the year**||**(1,339,885)**|2,951,003|
|**Cash and cash equivalents at the beginning of the year**||**2,591,003**|-|
|**Cash and cash equivalents at the end of the year**||**1,251,118**|2,591,003|
|**(a) Reconciliation of net expenditure to net cash flow from**||||
|**operating activities**||**2020**|2019|
|||**£**|£|
|Net movement in funds||**(2,071,947)**|197,813,578|
|Net gain on investments||**(9,527,482)**|(148,866)|
|Dividends and interest from investments||**(4,821,860)**|(136,686)|
|(Increase) in debtors||**(495,721)**|(465,631)|
|Increase in creditors||**162,914**|528,628|
|Net cash inflow from operating activities||**(16,754,096)**|197,591,023|
|The charity has no debt, so no analysis of net debt is presented.||||
The notes that follow form an integral part of these financial statements.
19
## **Notes to the Financial Statements**
## **1. Accounting policies**
- a) The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (Second Edition, effective 1 January 2019), and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
The charity constitutes a public benefit entity as defined by FRS 102.
## **Going concern**
The accounts are prepared on the going concern basis as the Trustee expects that the activities will continue for the forseeable future and the Charity has healthy reserves and a strong cash position at the balance sheet date. There are no material uncertainties that call into doubt the charity’s ability to continue in operational existence.
- b) Income is included in full in the statement of financial activities 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.
Grants to the charity are recognised in full in the statement of financial activities in the year in which they are receivable, or in the case of grants with associated eligibility criteria, in the year in which those criteria are satisfied.
Where entitlement to grants receivable is dependent upon fulfilment of conditions within the charity's control, the income is recognised when there is sufficient evidence that conditions will be met. Where there is uncertainty as to whether the charity can meet such conditions, recognition of income is deferred.
- c) Donated services and facilities are recognised as income and expenditure in the financial statements when companies or individuals offer their professional expertise on a pro bono basis. The value of these donated services and facilities is an estimated figure based upon the valuation the professional individual or organisation places upon the time, services and facilities they have provided to the charity. Individuals offering their time to work in areas where they are not undertaking their profession are classified as volunteers and their time is not quantified in the accounts, but is disclosed in the Trustee's report. All of these amounts are treated as unrestricted donations.
- d) Expenditure is recognised on an accruals basis, inclusive of any VAT which cannot be recovered. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
20
- ~~**1**~~ **. Accounting policies (continued)** Expenditure is allocated to the particular activity where the cost relates exclusively and directly to that activity. In addition, an allocation of salary and overhead costs of the central function is made and is apportioned based upon staff estimates of time spent on each activity (including the time of the executives who offer their services on a pro bono basis).
- e) Grants payable to interventions by the YEF are charged in the year in which they are disbursed to the intervention. Continued funding is conditional on the interventions meeting specified milestones. Conditional grants are recognised as expenditure when the conditions are fulfilled. If the conditions have not been met at the year end, the grants are disclosed as a future commitment but are not shown as expenditure.
- f) The charity's financial instruments all qualify as basic financial instruments in accordance with section 11 of FRS102 and are recognised on the following bases:
- i. Investments are measured at market value at the balance sheet date.
- ii. Cash and cash equivalents represent bank balances and deposits held in sterling. iii. Debtors are measured at the transaction price less any provision for doubtful debts. iv. Trade creditors are measured at the transaction price.
- g) Short term deposits represent cash on deposit.
- h) Unrestricted funds are donations and other income receivable or generated for the objects of the charity.
- i) Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is matched to the restricted funds, together with a fair allocation of overheads and support costs, if appropriate.
- j) Impetus, the sole corporate trustee of the charity, operates a defined contribution pension scheme which staff employed by Impetus (as sole trustee) to work on the charity's activities are auto-enrolled in. The assets of the scheme are held separately from those of Impetus and the charity in an independently administered fund. The pension cost charge represents contributions payable under the scheme. Impetus (as sole trustee) has no liability under the scheme other than for the payment of those contributions.
- k) The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues, grants payable and expenses during the period. The Trustees consider that there are no key judgements or estimates of estimation uncertainty.
21
## **2. Income 2 (a) Donations and grants**
|**Unrestricted**
**Total**
**2020**
**2020**
**2020**
**£**
**£**
**£**
Grants
**1,000,000**
**-**
**1,000,000**
Donated services
**-**
**-**
**-**
Donations and grants
**1,000,000**
**-**
**1,000,000**
**2 (b) Investment**
Interest receivable
**16,623**
**-**
**16,623**
Fixed income bonds
**4,141,221**
**-**
**4,141,221**
Global equities
**664,016**
**-**
**664,016**
**4,821,860**
**-**
**4,821,860**
Donations received from the Trustee to the charity totalled £nil (2019: £nil).
Donated services represent pro bono services received by the charity.
**Restricted**|Unrestricted
Total
2019
2019
2019
£
£
£
200,000,000
-
200,000,000
-
50,000
50,000
200,000,000
50,000
200,050,000
536,769
-
536,769
61,326
-
61,326
34,816
-
34,816
632,911
-
632,911
Restricted|Unrestricted
Total
2019
2019
2019
£
£
£
200,000,000
-
200,000,000
-
50,000
50,000
200,000,000
50,000
200,050,000
536,769
-
536,769
61,326
-
61,326
34,816
-
34,816
632,911
-
632,911
Restricted|
|---|---|---|
|||50,000
200,050,000
-
536,769
-
61,326
-
34,816
-
632,911|
22
## **3. Expenditure**
**3 (a). Total expenditure**
|**Note for the current year**
**Charitable activities**
Supporting charities
Grants payable to interventions (note 4)
Donated services
**Total charitable activities**
**Total expenditure**
**Note for the prior year**
**Charitable activities**
Supporting charities
Grants payable to interventions (note 4)
Donated services
**Total charitable activities**
**Total expenditure**
**3 (b). Activities undertaken directly**
Staff costs
Evaluator payments
Programme costs incurred in partners
**3 (c). Support costs**
Staff costs
Office costs
Donated services
Other costs|**Grant**
**funding**
**Activities**
**undertaken**
**directly**
**Support costs**
**Total 2020**
**£**
**£**
**£**
**£**
-
2,937,852
1,182,985
**4,120,837**
13,300,452
-
-
**13,300,452**
-
-
-
**-**
13,300,452
2,937,852
1,182,985
**17,421,289**
**13,300,452**
**2,937,852**
**1,182,985**
**17,421,289**
**Grant**
**funding**
**Activities**
**undertaken**
**directly**
**Support costs**
**Total 2019**
**£**
**£**
**£**
**£**
-
1,117,358
468,657
**1,586,015**
1,382,184
-
-
**1,382,184**
-
-
50,000
**50,000**
1,382,184
1,117,358
518,657
**3,018,199**
**1,382,184**
**1,117,358**
**518,657**
**3,018,199**
**Total**
Total
**2020**
2019
**£**
£
**569,165**
94,352
**1,249,464**
-
**1,119,223**
1,023,006
**2,937,852**
1,117,358
**Total**
Total
**2020**
2019
**£**
£
**95,487**
130,663
**168,766**
49,363
**-**
50,000
**918,732**
288,631
**1,182,985**
518,657|
|---|---|
||1,382,184
1,117,358|
||**1,382,184**
**1,117,358**|
|||
23
## **4. Grants payable**
|Grants payable fall in two categories:
- paid to portfolio charities
- paid to research organisations
**Grants paid to interventions in the year were as follows:**
Achieving for Children
ASSIST Trauma Care
Brandon Centre for Counselling and Psychotherapy for Young People
Cleveland Fire Brigade (Authority)
Comic Relief
Empire Fighting Chance
Essex Boys and Girls Clubs
Family Psychology Mutual
Family Support
Fight for Peace International
Imperial College London
Leicestershire County Council
Life Skills Education Charity
LifeLine Community Projects
Lime Social Marketing Media & Communications Ltd
Lives Not Knives
London Borough of Lambeth
Media Academy Cymru
Mental Health Foundation
Nottingham City Council
Office of the Police and Crime Commissioner for Northumbria
Preston North End Community and Education Trust
RISE Mutual CIC
Roots of Empathy
SkyWay Charity
Solihull Metropolitan Borough Council
South London and Maudsley NHS Foundation Trust (SLaM)
South Tyneside Council
St Christopher's Fellowship
StreetGames UK
The Rugby Football League Limited
The Tavistock and Portman NHS Foundation Trust
The Titan Partnership
Wakefield Council Youth Work Team
Other grants paid below £50,000
**Total**
**Grants paid to research organisations in the year were as follows:**
Campbell Collaboration
**Total**|**2020**
**2019**
**£**
**£**
**13,207,731**
1,382,184
**92,721**
-
**13,300,452**
**5,066,291**
**2020**
2019
**£**
£
493,500
144,000
183,124
75,748
224,000
56,000
50,000
-
4,000,000
-
209,766
88,722
87,973
86,358
77,841
57,000
120,000
80,000
50,000
-
212,314
-
116,972
70,930
253,650
128,144
100,000
60,000
50,000
-
344,000
-
238,462
-
50,549
-
116,317
122,817
72,414
-
51,402
-
54,094
-
228,121
54,811
101,907
-
55,464
-
54,000
-
1,174,929
-
57,638
21,465
-
55,000
64,123
-
136,854
76,477
285,000
60,000
240,818
68,263
132,462
37,699
3,520,037
38,750
**13,207,731**
1,382,184
**2020**
2019
**£**
£
**92,721**
-
**92,721**
-|
|---|---|
The Youth Endowment Fund aims to prevent children and young people from getting caught up in crime and violence by making sure that those at most risk get the best possible support, as early as possible, to get on a positive path and succeed. Its grant making exists to support this objective and it seeks to fund activities that YEF can evaluate and grow.
Continued funding of interventions is conditional upon the organisations meeting specified milestones. Conditional grants are recognised as expenditure when the conditions are fulfilled. If the conditions have not been met at the year end, the grants are noted as a future commitment but not shown as expenditure.
24
## **4. Grants payable (continued)**
The total amount of grants authorised but not accrued as expenditure at 31 December 2020 was £18,834,519 (2019: £13,649,734). This amount relates to the organisations listed above. If all current interventions progress as envisaged, the phasing of future commitments is estimated as follows:
|2021
2022
2023|**2020**
2019
**£**
**£**
**16,118,140**
**8,472,746**
**2,256,379**
**5,069,657**
**460,000**
**107,331**
**18,834,519**
**13,649,734**|
|---|---|
The above conditional grant commitments to organisations are underwritten by existing reserves (see note 12).
## **5. Net income/(expenditure) for the period**
This is stated after charging:
|Trustee remuneration
Trustee expenses
Auditors' remuneration for audit services
**6. Staff costs**
Staff costs were as follows:
Salaries and wages
Social security costs
Pension contributions
Agency staff|**2020**
2019
**£**
£
-
-
-
-
12,000
9,600
**2020**
2019
**£**
£
571,988
193,174
66,633
20,414
26,031
7,601
-
3,826
664,652
225,015|
|---|---|
The salary breakdown by employee is shown in the table below (where applicable).
||**Number of**|**employees**|
|---|---|---|
|**Salary band**|**2020**|**2019**|
|£100,000 - £110,000|1|-|
The employer's pension contributions for staff earning more than £60,000 per annum amounted to £5,461 (2019: £nil).
Remuneration and benefits (salary or fee, bonus, employer NI and employer pension contributions), paid for key management personnel totalled £311,963 (2019: £159,527).
## **Staff numbers**
The average weekly number of employees is shown below on a full-time equivalent and headcount basis:
||**2020**|2019|
|---|---|---|
|Full-time equivalents|7.8|3.4|
|Headcount|8|7|
## **7. Taxation**
There are no taxable profits arising within the charity for the year ending 31 December 2020. Consequently the charity has no liability to tax and no deferred tax.
25
## **8. Investments**
|Market value at at 1 January 2020
Additions in period
Disposals in period
Investment management fees deducted from portfolio
Dividends and interest reinvested
Realised gains
Net gains/(losses) on revaluation
**Market value as at 31 December 2020**
Cash and cash equivalents
Fixed income bonds
Global equities
**9. Debtors**
Grants paid in advance to delivery partners
**10. Creditors: amounts due within one year**
Trade creditors
Amount due to parent charity
Accruals|**2020**
2019
**£**
£
195,285,572
-
130,476,118
215,000,020
(145,487,384)
(20,000,000)
(402,945)
-
4,820,594
136,686
281,914
278,784
9,245,568
(129,918)
**194,220,703**
195,285,572
**£**
£
9,303,087
91,521,966
127,322,935
64,555,722
57,594,681
39,207,884
**194,220,703**
195,285,572
**2020**
2019
**£**
£
961,352
465,631
**2020**
2019
**£**
£
129,796
26,351
236,636
472,824
325,110
29,453
691,542
528,628|
|---|---|
## **11. Analysis of net assets between funds**
|Investments
Net current assets
**Note for the prior year**
Investments
Net current assets|Restricted
£
194,220,703
1,533,402
**195,754,105**
Home Office
Grant
£
195,285,572
2,536,881
**197,822,453**|Unrestricted
**Total 2020**
£
**£**
-
**194,220,703**
(12,475)
**1,520,928**
**(12,475)**
**195,741,631**
Other
**Total 2019**
£
**£**
-
195,285,572
(8,875)
2,528,006
**(8,875)**
**197,813,578**|
|---|---|---|
26
## **12. Movements in funds**
|**Restricted Funds**
Home Office grant
Centre of Excellence grant
**Total restricted funds**
**Unrestricted Funds**
Supplementary funding
**Total unrestricted funds**
**Total funds**
**Note for the prior year**
**Restricted Funds**
Home Office grant
**Unrestricted Funds**
Supplementary funding
Total funds|**At the start**
**of the period**
**£**
197,822,453
-|**Income**
**£**
4,821,860
1,000,000
5,821,860
-
-
**5,821,860**
Income
£
200,632,911
50,000
**200,682,911**|**Expenditure**
**£**
(17,229,465)
(188,224)
(17,417,689)
(3,600)
(3,600)
**(17,421,289)**
Expenditure
£
(2,959,324)
(58,875)
**(3,018,199)**|**Net**
**gains/(losses)**
**on**
**investments**
**At the end**
**of the**
**period**
**£**
**£**
9,527,482
194,942,330
-
811,776
9,527,482
195,754,106
-
(12,475)
-
(12,475)
**9,527,482**
**195,741,631**
Net
gains/(losses)
on investments
At the end of
the period
£
£
148,866
197,822,453
-
(8,875)
**148,866**
**197,813,578**|
|---|---|---|---|---|
||197,822,453||||
||(8,875)||||
||(8,875)||||
||**197,813,578**||||
||At the start of
the period
£
-
-||||
||**-**||||
Funds from the Home Office grant and investment income earned from it will be used to fund interventions to prevent children and young people from getting caught up in crime and violence by making sure that those at most risk get the best possible support, as early as possible, to get on a positive path and succeed. Independent evaluations of the interventions, research and the costs of the three partners delivering the Fund's work will also be met from the grant and from supplementary funding which is secured in addition to the grant and investment income. .
The Centre of Excellence grant was additional funding recieved to enable YEF to act as a centre of expertise, generating, disseminating and promoting new knowledge, practice and academic research that will transform local and national responses to tackling serious violence affecting children and young people.
The supplementary funding is accounted for in the 'other' fund
## **13. Related party transactions**
Impetus - The Private Equity Foundation is the sole corporate trustee of The Youth Endowment Fund Charitable Trust which is a restricted fund in Impetus. Impetus pays salary and other costs on behalf of the Youth Endowment Fund which it recharges to the charity. Amounts totalling £708,603 (2019: £523,391) were recharged by Impetus to the Youth Endowment Fund during 2020. As at the 31 December 2020 the Youth Endowment Fund owed amounts totalling £236,636 (2019: £472,824) to Impetus.
27