# **The Youth Endowment Fund Charitable Trust Annual Report and Financial Statements**
**For the 15 month period ending 31 March 2023**
**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 Trustees of Impetus are:
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Hanneke Smits
Bill Benjamin
Lisa Stone
Simon Turner Resigned 27 Sept 2022
Shani Zindel
Charlie Edwards
Filipo Cardini
Natasha Porter
Robert Ramsauer Resigned 23 May 2023
Rohan Haldea
Vanessa Maydon Resigned 13 Jan 2023
Joe Schull
Sat Singh Appointed 10 Oct 2022
Andy Toms Appointed 10 Oct 2022
Alex Walsh Appointed 23 May 2023
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The Senior Leadership team of the Youth Endowment Charitable Trust is:
|Jon Yates|Executive Director|
|---|---|
|Andrea Ramsay|Chief OperatingOfficer|
|Emma Jenkins|Director of Change|
|Matt van Poortvliet|Director of Evidence and
Understanding|
|Louise Schmidt|Interim Director of
Evidence and
Understanding|
|Dr Daniel Acquah|Assistant Director of
Evaluation|
|Peter Babudu|Assistant Director of
Research and Youth
Understanding|
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Registered office: 1st Floor, 64 Great Eastern Street London, EC2A 3QR Auditor: Haysmacintyre LLP 10 Queen Street Place London, EC4R 1AG Banker: NatWest 127-128 High Holborn London, WC1V 6PQ Russell-Cooke Solicitors: 2 Putney Hill London, SW15 6AB Investment Goldman Sachs International managers: Plumtree Court 25 Shoe Lane London, EC4A 4AU
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## **Contents**
|Trustees Report||
|---|---|
|Objectives and Activities|5|
|Plans for Future Periods|6|
|Financial Review|7|
|Structure, Governance and Management|9|
|Statement of Responsibilities of the Trustee|13|
|Independent Auditor’s Report|14|
|Financial Statements|18|
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The trustees are pleased to present their annual report on the work of The Youth Endowment Fund (YEF) in the 15 months ended 31 March 2023 and its plans for the year ending 31 March 2024, together with the financial statements for the 15 months to 31 March 2023.
## **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 primarily across eight areas of focus: fund good work (in order to) find what works (in order to) work for change.
In 2022/23, we made progress across all these focus areas by funding – or preparing to fund – projects aimed at building evidence of what works. In total we set ourselves four core objectives:
- Be the lead expert on violence reduction
- Hold significant influence across key stakeholders who can push for change in policy or practice
- Deliver across our eight focus areas
- Be who we need to be by continuing to build strong organisational foundations
In our efforts to **be the lead expert on violence reduction** , we grew our online Toolkit, which is the most comprehensive overview of existing research on approaches to prevent serious youth violence in England and Wales, to 26 topics, adding six new topics in the period, completing five new systematic reviews of existing evidence and reaching more than 3,500 people online. In addition, we produced, launched and promoted the Children, Violence and Vulnerability Report, an annual authoritative report that surveyed more than 2,000 children and young people and combined that with national statistics to explore ways in which violence is shaping children’s lives. Finally, we’ve
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started to explore the underlying causes and correlations that exist in youth violence, through commissioning research reports on the role of poverty and racial disproportionality.
In our efforts to **hold significant influence** , we developed our first coalition for change around one of our eight focus areas: Diversion from the criminal justice system. Diversion refers to efforts to divert children, who come into contact with the police, away from the court and formal proceedings. The coalition includes key people and organisations that we need to work with to help us make sense of emerging research and find the right opportunities that can lead to actionable, lasting change. We have also deepened relationships with government departments, other policy makers and key stakeholders and maintained regular coverage of issues of youth violence in national and regional media outlets.
In our efforts to **deliver across our focus areas** , we have built upon prior year progress of regularly funding and evaluating projects that work to prevent young people from becoming involved in violence. One of the primary ways we do this is through identifying evidence gaps within one of our focus areas where, if filled, we could push for change in policy or practice. We then solicit proposals from organisations delivering promising activity in those gaps and pair them with an independent evaluator to conduct a rigorous evaluation of their work. By the end of 2022/23, we had launched eleven funding rounds to conduct these evaluations (funding more than 60 evaluations, 30 of which are impact trials), in addition to funding other types of research (data analysis and youth understanding) and committed more than £80m to building evidence of what works.
In our efforts to **build strong organisational foundations** , we grew our staff size from 44 to 51, while continuing to prioritise internal activity to embed our values of being transparent, brave, questioning, collaborative, responsible and empathetic across all we do. Our performance in bringing further investment into our mission remains strong, and by the end of 2022/23, we had secured more than £80m of supplementary funding for projects to prevent young people becoming involved in violence. We also launched our first annual Race Equity Action Plan, making commitments across five core areas of our work: funding, team, leadership, evidence and change, and partnerships.
## **Plans for Future Periods**
We will build on the significant delivery achieved in 2022/23 in the year ahead by making sure that all our work is hyper focused in the areas where we believe we have the greatest opportunity for learning and change. Our work will therefore build on these existing four core objectives, ensuring we make more progress
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within them to best support the children and young people who need it.
Across these four objectives, in 2023/24 we will:
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Core objectives Core activities for 2023/24
Be the lead expert on
We will strengthen and deepen our knowledge
violence reduction
on violence reduction including through
expanding and segmenting the Toolkit. This will
include expanding to 30 topics, publishing six
new systematic reviews and driving greater
engagement on evidence with our key
audiences. We will also publish at least three
authoritative research reports on levels of
violence and causes of violence.
Hold significant influence We will maintain our close relationships across
government, influence the main party manifestos
in advance of upcoming elections and build
strong engagement with much wider audiences
for our focus areas.
Deliver across our focus We will continue to deliver our strategy across the
areas eight focus areas by funding more research
(evaluations, data analysis and youth
understanding) and launching our first Guidance
Report on Diversion from the criminal justice
system. Guidance Reports will summarise
evidence, practitioner experience and children’s
experience, alongside setting out a series of
recommendations to improve diversion for children
and families. We will have 50 impact evaluations
under way, committing £125m of funds in total by
the end of the year.
Continue to build strong We will maintain strong foundations and deliver
organisational foundations increased efficiency with excellent financial
performance, high standards of risk management,
high staff morale, a rigorous approach to race
equity and long-term planning.
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## **Financial Review**
## _Financial results_
YEF was established in April 2019 through a £200m grant from the Home Office, to be spent over a ten-year period of time. The full £200m grant value was included within income in 2019. Investments from the fund returned a net loss of £13.0m (Investment income less market value losses) in the 15 months to 31 March 2023.
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Additional grant income received during the period totaled £9.6m.
Expenditure in the 15 months to 31 March 2023 totaled £30.7m, of which £25.3m was on grants to interventions with a further £5.4m spend on activities we undertook directly.
Of the grant, £155m 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 £161m (£157m for the Home Office grant, £3m for the Centre of Excellence grant and £1.6M from other grants received).
## **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 performance**
The grant from the Home Office has been invested and is managed by Goldman Sachs, with oversight from the Endowment Investment Committee, a subcommittee of the Impetus Board. 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 spend to projects and the costs of managing the YEF, the equivalent of three to 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.
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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 March 2023, of the total portfolio of £154.6m, £89.1m was invested in fixed income bonds and £53m in equities. The value of the portfolio stood at £154.6m after withdrawing £54.4m from the portfolio to meet our working capital requirements since the inception of the fund. The trustee considers that the portfolio performed well, taking advantage of the equities markets during the period with a well-defined glide path to reduce equity risk post year-end, and the portfolio is on track to meet its investment objective.
## **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.
On 1 April 2021, YEF transitioned from a partnership between Impetus and two Delivery Partners, the Early Intervention Foundation and the Social Investment Business Foundation, to a subsidiary of Impetus with all staff working within a single organisation. Social Investment Business remained a Delivery Partner with representation on the YEF Committee, a subcommittee of the Impetus Board with oversight responsibility of YEF activity, but no longer employed staff to work full time on the fund.
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,
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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.
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 and evaluating activity, building the conditions for change and striving to achieve our core objectives for the year.
- **The benefits generated relate to the objectives of the charity.** All activities undertaken are intended to further YEF’s charitable objectives, as noted above.
- **The people who receive support are entitled to do so according to criteria set out in the charities objectives** . The YEF exists to prevent children and young people from becoming involved in violence by finding what works and building a movement to put that into practice. This report sets out ways in which YEF is working to ensure that the beneficiaries are supported to achieve that aim.
## **Governance and management**
Impetus acts as the sole corporate trustee through its board of trustees. Impetus established The Youth Endowment Fund Charitable Trust Committee (YEF Committee) as a committee of its board. The YEF Committee has delegated responsibility for the management of the Youth Endowment Fund in compliance with, and in implementation of, the Home Office Grant Agreement.
Impetus has the following matters reserved to it, receiving recommendations from the YEF 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
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Executive Director;
- individual grants or material changes to existing grants with a value in excess of £10 million, including those made from Supplementary Funding;
- 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 YEF 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. Areas of organizational performance, risk and resourcing are also reported to Impetus’s Resources and Audit Committee.
The trustees consider the YEF Committee 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 trustees are 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 YEF 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’ Resource and Audit Committee.
Significant risks identified and steps taken to mitigate them are set out in the table below.
|**Risk **|**Rationale for rating **|**Mitigation/Update **|
|---|---|---|
|Staff within organisation are
overburdened/overstretched|While we have had success in
recruitment in the evaluation
team, the pace of work continues
to be high, with capacity a
constraint for the Comms,
Change and Evidence teams in|We are watching the impact
of new hires into the
evaluation team. We
proposed new staff
investments in the 2023/24
budgetproposal for our|
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particular. Comms, Change and
Evidence teams, which were
approved by the trustees.
Difficulty in achieving High market volatility has The Investment Committee
investment income target impacted returns. Despite this meets quarterly to review
volatility, the Investment performance of the portfolio
Committee believes the portfolio and balance of investments.
as a whole as performed well It will continue to review the
since the inception of the fund, strategy to ensure we
taking advantage of strong equity remain confident in meeting
performance during the our original expenditure
pandemic. assumptions.
Smaller Black, Asian or We have successfully funded a We have commissioned
Minority Ethnic-led Black, Asian or Minority Ethnic -led ongoing support from
organisations are accessing organisation in each funding Impetus to build capacity.
themed grant round funds in round. The challenge that We are also considering new
each round but it remains remains is that – as Black, Asian approaches including multi-
challenging to prepare them or Minority Ethnic -led site trials.
for an intensive ongoing organisations tend to be smaller
evaluation. – they have less resource to
engage in robust evaluations.
Unable to conduct impact This evaluation is complex – We have appointed high
evaluation across all five requiring a very specific set of quality evaluation partners
Focused Deterrence sites. conditions for rigorous and are close to finalising an
evaluation. The programme also evaluation design to detect
needs to be set up excellently. impact.
Unable to develop the type or The evaluators have identified a We will focus effort to
strength of evidence we need number of options for support timely data access
to drive change in hyper local Neighbourhood Fund impact with expectations around
spaces evaluation. These options are this built into performance
reliant on timely access to milestones.
administrative data.
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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 inappropriateto 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 they are themselves aware of all relevant audit information and that this information has been communicated to the auditors. The Trustee’s Report was approved by the Trustee on 28 September 2023 and signed on their behalf by the Chair of the Impetus Board as representative of the Trustee.
Hanneke Smits
Chair of the Impetus Board
Representative of the Trustee
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## **Independent auditor’s report to the trustee of The Youth Endowment Fund Charitable Trust**
## **Opinion**
We have audited the financial statements of The Youth Endowment Fund Charitable Trust for the period ended 31 March 2023 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 March 2023 and of the charity’s net movement in funds for the period 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 charity 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 trustee 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
14
cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **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
15
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 charity law, and we considered the extent to which non-compliance 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;
- Evaluating management’s controls designed to prevent and detect irregularities; and
- Identifying and testing journals, in particular journal entries posted with unusual descriptions and entries posted at unusual times.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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## **Use of our report**
This report is made solely to the charity’s trustee, 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 trustee 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 trustee as a body for our audit work, for this report, or for the opinions we have formed.
Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London EC4R 1AG 22 December 2023
Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
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## **The Youth Endowment Fund Charitable Trust**
## **Statement of financial activities**
## **For the 15 months to 31 March 2023**
|Note
**Income:**
Donations and grants
2a
Investments
2b
**Total income**
**Expenditure:**
Charitable activities
3a
**Total expenditure**
Net (losses)/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**
**£**
8,630,722
5,688,699|**Unrestricted**
**Other**
**£**
944,155
-|
**15 months to**
**31 March**
**2023**
**Total**
**£**
**9,574,877**
**5,688,699**|Restricted
grants
£
5,878,500
4,940,903|Unrestricted
Other
Year to
31 December
2023
Total
£
£
-
5,878,500
-
4,940,903|
|---|---|---|---|---|---|
||14,319,422|944,155|**15,263,577**|10,819,403|-
10,819,403|
||29,814,522|931,680|**30,746,202**|20,189,083|-
20,189,083|
||29,814,522|931,680|**30,746,202**|20,189,083|-
20,189,083|
||(18,641,701)|-|**(18,641,701)**|9,190,475|-
9,190,475|
||(34,136,801)|12,475|**(34,124,326)**|(179,205)|-
(179,205)|
||195,574,901|(12,475)|**195,562,426**|195,754,106|(12,475)
195,741,631|
||161,438,100|-|**161,438,100**|195,574,901|(12,475)
195,562,426|
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 12 to the financial statements.
The notes that follow form an integral part of these financial statements.
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## **The Youth Endowment Fund Charitable Trust**
## **Balance sheet**
## **As at 31 March 2023**
|||**As at**|As at|
|---|---|---|---|
|||**31 March**|31 December|
|||**2023**|2021|
||Note|**£**|£|
|**Fixed assets**||||
|Intangible assets|8a|**130,080**|142,393|
|Investments|8b|**154,643,332**|192,170,308|
|||**154,773,412**|192,312,701|
|**Current assets**||||
|Debtors|9|**1,109,582**|51,161|
|Cash at bank and in hand||**6,601,432**|3,739,941|
|||**7,711,014**|3,791,102|
|**Creditors: amounts due within one year**|10|**(1,046,327)**|(541,377)|
|**Net current assets**||**6,664,687**|3,249,725|
|**Net assets**|11|**161,438,100**|195,562,426|
|**Funds**||||
|Restricted funds|12|**161,438,100**|195,574,901|
|Unrestricted funds|12|**-**|(12,475)|
|**Total funds**||**161,438,100**|195,562,426|
The financial statements for The Youth Endowment Fund Charitable Trust, (charity registration number 1185413), for the period ended 31 March 2023 were approved and authorised for issue by the Trustee on 28 September 2023.
The notes that follow form an integral part of these financial statements.
Hanneke Smits Representative of the Trustee
Lisa Stone Representative of the Trustee
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## **The Youth Endowment Fund Charitable Trust**
## **Cash flow statement**
## **For the 15 months to 31 March 2023**
|||**15 months to**|Year to|
|---|---|---|---|
|||**31 March**|31 December|
|||**2023**|2021|
||Note|**£**|£|
|**Net cash used in operating activities**|(a)|**(21,704,471)**|(13,540,369)|
|**Cash flows from investing activities:**||||
|Purchase of intangible assets||**(8,012)**|(152,581)|
|Dividends and interest from investments||**5,688,699**|4,940,903|
|Proceeds from sale of investments||**24,556,611**|16,181,529|
|Purchase of investments||**(5,671,337)**|(4,940,659)|
|**Net cash provided by investing activities**||**24,565,962**|16,029,192|
|**Change in cash and cash equivalents in the year**||**2,861,491**|2,488,823|
|**Cash and cash equivalents at the beginning of the year**||**3,739,941**|1,251,118|
|**Cash and cash equivalents at the end of the year**||**6,601,432**|3,739,941|
|**(a) Reconciliation of net expenditure to net cash flow from**||||
|||**15 months to**|Year to|
|||**31 March**|31 December|
|**operating activities**||**2023**|2021|
|||**£**|£|
|Net movement in funds||**(34,124,326)**|(179,205)|
|Depreciation and amortisation charges||**20,325**|10,188|
|Net losses/(gains) on investments||**18,641,701**|(9,190,475)|
|Dividends and interest from investments||**(5,688,699)**|(4,940,903)|
|(Increase)/decrease in debtors||**(1,058,421)**|910,191|
|Increase/(decrease) in creditors||**504,950**|(150,165)|
|Net cash (outflow) from operating activities||**(21,704,471)**|(13,540,369)|
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.
20
## **The Youth Endowment Fund Charitable Trust**
## **Notes to the financial statements**
## **For the 15 months to 31 March 2023**
**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.
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.
- v. Intangible assets are capitalised at costs and amortised accordingly
21
## **1. Accounting policies (continued)**
- g) Amortisation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The amortisation rates in use are as follows:
Computer software - Ten years
h) Short term deposits represent cash on deposit.
- i) Unrestricted funds are donations and other income receivable or generated for the objects of the charity.
- j) 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.
- k) 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.
- l) Transactions in foreign currencies are translated into sterling at the rates of exchange current at the date of the transaction. Foreign currency monetary assets and liabilities in the balance sheet are translated into sterling at the rates of exchange ruling at the end of the year. Resulting exchange gains and losses are taken to the Statement of Financial Activities.
- m) 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.
22
## **2. Income**
## **2 (a) Donations and grants**
|Grants
Donated services
Donations and grants|**15 months**
**to 31 Mar'23**
**£**
**8,630,722**
**-**
**8,630,722**
**Restricted**|**Unrestricted**
**Total**
**15 months**
**15 months**
**to 31 Mar'23**
**to 31 Mar'23**
**£**
**£**
**12,475**
**8,643,197**
**931,680**
**931,680**
**944,155**
**9,574,877**|Total
Year to
Year to
31 Dec'21
31 Dec'21
£
£
5,422,500
5,422,500
456,000
456,000
5,878,500
5,878,500
Restricted|
|---|---|---|---|
Donated services represent pro bono services received by the Charity.
## **2 (b) Investment**
|Bank interest receivable
Fixed income bonds
Global equities|**15 months**
**to 31 Mar'23**
**£**
**17,363**
**4,873,555**
**797,782**
**5,688,699**
**Restricted**|**Unrestricted**
**15 months**
**to 31 Mar'23**
**£**
**-**
**-**
**-**
**-**|**Total**
**15 months**
**to 31 Mar'23**
**£**
**17,363**
**4,873,555**
**797,782**
**5,688,699**|Total
Year to
Year to
31 Dec'21
31 Dec'21
£
£
244
244
4,326,504
4,326,504
614,155
614,155
4,940,903
4,940,903
Restricted|
|---|---|---|---|---|
23
## **The Youth Endowment Fund Charitable Trust**
## **Notes to the financial statements**
## **For the 15 months to 31 March 2023**
## **3. Expenditure**
## **3 (a). Total expenditure**
|**Note for the current Period**
**Charitable activities**
Supporting charities
Evaluation and research
Grants payable (Note 4)
Donated services
**Total charitable activities**
**Total expenditure**
**Note for the prior year**
**Charitable activities**
Supporting charities
Evaluation and research
Grants payable (note 4)
Donated services
**Total charitable activities**
**Total expenditure**|**Funding for**
**Projects**
**Activities**
**undertaken**
**directly**
**Support costs**
**15 months to**
**31 Mar'23**
**Total**
**£**
**£**
**£**
**£**
**Note 3b**
**Note 3c**
-
3,216,697
2,199,325
**5,416,023**
5,897,952
-
-
**5,897,952**
18,500,547
-
-
**18,500,547**
931,680
-
-
**931,680**
25,330,179
3,216,697
2,199,325
**30,746,202**
**25,330,179**
**3,216,697**
**2,199,325**
**30,746,202**
**Funding for**
**Projects**
**Activities**
**undertaken**
**directly**
**Support costs**
**Year to**
**31 Dec'21**
**Total**
**£**
**£**
**£**
**£**
-
2,176,842
1,709,668
**3,886,510**
1,895,581
-
-
**1,895,581**
13,950,992
-
-
**13,950,992**
456,000
-
-
**456,000**
16,302,573
2,176,842
1,709,668
**20,189,083**
**16,302,573**
**2,176,842**
**1,709,668**
**20,189,083**|
|---|---|
## **3 (b). Activities undertaken directly**
|Staff costs
Programme costs incurred in partners
Consultancy costs
**3 (c). Support costs**
Staff costs
Office costs
Investment management fees
Other costs|**15 months to**
**31 Mar'23**
Year to
31 Dec'21
**£**
£
**2,790,059**
1,885,476
**-**
18,994
**426,639**
272,372
**3,216,697**
2,176,842
**15 months to**
**31 Mar'23**
Year to
31 Dec'21
**£**
£
**639,854**
377,814
**312,904**
63,921
**576,148**
594,134
**670,419**
673,799
**2,199,325**
1,709,668|
|---|---|
24
## **The Youth Endowment Fund Charitable Trust**
## **Notes to the financial statements**
## **For the 15 months to 31 March 2023**
## **4. Grants payable**
Grants paid to interventions in the year were as follows:
|The Global Fund for Children UK Trust
London VRU
South London and Maudsley NHS Foundation Trust (SLaM)
Centre for Youth Impact (Part of YMCA-WC)
Mental Health Foundation
Lives Not Knives
The Nottinghamshire Office of the Police and Crime
Violence Reduction Network for Leicester (OPCC)
West Midlands Police and Crime Commissioner
Achieving for Children
Redthread Youth Limited
Family Psychology Mutual
REMEDI- Restorative Services
Wakefield Council Youth Work Team
The Tavistock and Portman NHS Foundation Trust
Imperial College London
Empire Fighting Chance
High Trees Community Development Trust
London Borough of Lambeth
ASSIST Trauma Care
Media Academy Cymru
Blackburn with Darwen Borough Council
United Borders
The Rugby Football League Limited
LifeLine Community Projects
WE ARE WITH YOU
Artswork Ltd.
StreetGames UK
Life Skills Education Charity
Youth Focus North East
The Titan Partnership
Birmingham City Council
Young Devon
Family Psychology Mutual CIC
Volunteering Matters
YES Outdoors
Young Persons Advisory Service
St Christopher's Fellowship
Lancashire & South Cumbria NHS FT
The English Football League Trust (FL Community Ltd)
Salford Foundation Ltd
Behavioural Insights Ltd.
South Wales VRU
Other grants paid below £200,000
**Total**|**15 months to**
**31 Mar'23**
Year to
31 Dec'21
**£**
£
3,762,140
-
2,332,153
-
359,942
1,908,482
1,064,723
-
622,553
539,809
27,088
575,000
519,820
-
498,541
-
476,506
-
464,609
220,835
454,547
-
-
440,585
432,109
-
50,078
418,158
(49,493)
383,156
367,658
287,772
152,780
355,264
319,305
102,653
125,198
318,962
70,431
318,089
313,519
159,749
69,013
301,238
299,438
-
-
294,395
108,066
294,160
292,200
59,360
278,473
127,422
273,821
179,151
-
271,650
270,664
122,634
262,247
268,635
262,202
72,209
252,309
131,934
121,257
251,336
250,090
92,760
248,058
34,966
244,090
159,377
(62,000)
230,000
227,734
-
224,466
-
222,793
26,505
213,784
-
206,288
-
1,871,347
5,004,747
**18,500,547**
13,950,992|
|---|---|
25
## **4. Grants payable (continued)**
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.
The total amount of grants authorised but not accrued as expenditure at 31 March 2023 was £33,031,000 (2021: £27,917,000). This amount relates to the organisations listed above. If all current interventions progress as envisaged, the phasing of future commitments is estimated as follows:
|2023
2024
2025
2026|**Year to**
**31 March**
Year to
31 December
**£**
£
**-**
12,376,000
**17,447,000**
10,188,000
**11,926,000**
5,353,000
**3,658,000**
-
**33,031,000**
27,917,000|
|---|---|
## **5. Net expenditure for the period**
This is stated after charging:
|**5. Net expenditure for the period**
This is stated after charging:|||
|---|---|---|
||**15 months**|Year to|
||**to 31 Mar'23**|31 Dec'21|
||**£**|£|
|Trustee remuneration|-|-|
|Trustee expenses|-|-|
|Amortisation|20,325|10,188|
|Auditors' remuneration for audit services|18,000|17,448|
26
## **6. Staff costs**
|Staff costs were as follows:
Salaries and wages
Social security costs
Pension contributions|**15 months**
Year to
**to 31 Mar'23**
31 Dec'21
**£**
£
2,936,457
1,944,104
343,553
219,211
149,903
99,976
3,429,913
2,263,290|
|---|---|
The salary breakdown by employee is shown in the table below (where applicable).
||**Number of employees**|**Number of employees**||
|---|---|---|---|
||**15 months**||Year to|
|**Salary band**|**to 31 Mar'23**|31|Dec'21|
|£60,000 - £70,000|4||4|
|£70,000 - £80,000|6||-|
|£80,000 - £90,000|5||3|
|£90,000 - £100,000|2||-|
|£100,000 - £110,000|1||-|
|£110,000 - £120,000|1||1|
|£150,000 - £160,000|1||-|
The employer's pension contributions for staff earning more than £60,000 per annum amounted to £62,659 (2021: £30,792).
Remuneration and benefits (salary, bonus, employer NI and employer pension contributions), paid for key management personnel totalled £1,025,709 for the 15 month period (year to 31 Dec'21: £615,848).
## **Staff numbers**
The average weekly number of employees is shown below on a full-time equivalent and headcount basis:
||**15 months**|Year to|
|---|---|---|
||**to 31 Mar'23**|31 Dec'21|
|Full-time equivalents|48.3|37.8|
|Headcount|51|38|
## **7. Taxation**
There are no taxable profits arising within the charity for the 15 months to 31 March 2023. Consequently the charity has no liability to tax and no deferred tax.
## **8. Fixed assets**
## **8 (a). Intangible assets**
|**Cost**
At the start of the period
Additions in period
At the end of the period
**Amortisation**
At the start of the period
Charge for the period
At the end of the period
**Net book value**
**At the end of the period**
At the start of the year|**As of**
**31 Mar'23**
**£**
152,581
8,012|
|---|---|
||**160,593**|
||10,188
20,325|
||**30,513**|
||**130,080**|
||142,393|
27
## **8(b). Investments**
|Market value at at 1 January 2021
Disposals in period
Investment management fees (cash basis)
Dividends and interest reinvested
Realised (losses)
Net (losses)/gains on revaluation
**Market value as at 31 March 2023**
Cash and cash equivalents
Fixed income bonds
Global equities|**As of**
**31 Mar'23**
As of
31 Dec'21
**£**
£
192,170,308
194,220,703
(23,946,419)
(15,579,512)
(610,192)
(602,017)
5,671,337
4,940,659
(9,533,746)
(1,858,965)
(9,107,955)
11,049,440
**154,643,332**
192,170,308
**£**
£
12,537,093
6,325,207
89,100,396
118,717,262
53,005,843
67,127,840
**154,643,332**
192,170,308|
|---|---|
## **9. Debtors**
|Grants Receivable
Prepayments
**10. Creditors: amounts due within one year**
Trade creditors
Other creditors
Amount due to parent charity
Accruals
**11. Analysis of net assets between funds**
Fixed assets
Investments
Net current assets
**Note for the prior year**
Fixed assets
Investments
Net current assets|Restricted
£
130,080
154,643,332
6,664,687
**161,438,100**
Restricted
£
142,393
192,170,308
3,262,200
195,574,901|**As of**
**31 Mar'23**
As of
31 Dec'21
**£**
£
1,036,682
-
72,900
51,161
1,109,582
51,161
**As of**
**31 Mar'23**
As of
31 Dec'21
**£**
£
579,919
107,607
2,631
-
253,442
249,858
210,335
183,912
1,046,327
541,377
Unrestricted
**Total Mar'23**
£
**£**
-
**130,080**
-
**154,643,332**
-
**6,664,687**
-
**161,438,100**
Unrestricted
Total 2021
£
£
-
142,393
-
192,170,308
(12,475)
3,249,725
(12,475)
195,562,426|
|---|---|---|
28
## **12. Movements in funds**
|**Restricted Funds**
Endowed Funds: Home Office
Centre of Excellence
#iwill
Co-operative
Comic Relief
Focused Deterrence
Trauma Informed
Violence Against Women and Girls
Department for Culture, Media and Sports
National Police Chiefs' Council
Arts Council England
Youth Futures Foundation
**Total restricted funds**
**Unrestricted Funds**
Supplementary funding
**Total unrestricted funds**
**Total funds**
**Note for the prior year**
**Restricted Funds**
Home Office
Centre of Excellence
#iwill
Co-operative
**Total restricted funds**
**Unrestricted Funds**
Supplementary funding
**Total unrestricted funds**
**Total funds**|**At the start**
**of the**
**period**
**£**
191,086,915
4,041,098
248,371
198,517
-
-
-
-
-
-
-
-|**Income**
**£**
5,688,699
-
722,500
940,000
5,687,525
500,000
139,590
407,446
161,493
10,008
37,500
24,660|**Expenditure**
**£**
(21,194,557)
(1,140,009)
(970,871)
(1,076,168)
(4,214,380)
(500,000)
(139,590)
(407,446)
(161,493)
(10,008)
-
-|**Net losses**
**on**
**investments**
**At the end**
**of the**
**period**
**£**
**£**
(18,641,701)
156,939,356
-
2,901,090
-
-
-
62,349
-
1,473,145
-
-
-
-
-
-
-
-
-
-
-
37,500
-
24,660
(18,641,701)
161,438,100
-
-
-
-
**(18,641,701)**
**161,438,100**
Net gains on
investments
At the end of
the period
£
£
9,190,475
191,086,915
-
4,041,098
-
248,371
-
198,517
9,190,475
195,574,901
-
(12,475)
-
(12,475)
**9,190,475**
**195,562,426**|
|---|---|---|---|---|
||195,574,901|14,319,422|(29,814,522)||
||(12,475)|944,155|(931,680)||
||(12,475)|944,155|(931,680)||
||**195,562,426**|**15,263,577**|**(30,746,202)**||
||At the start
of the period
£
194,942,330
811,776
-
-|Income
£
5,396,903
4,000,000
777,500
645,000|Expenditure
£
(18,442,793)
(770,678)
(529,129)
(446,483)||
||195,754,106|10,819,403|(20,189,083)||
||(12,475)|-|-||
||(12,475)|-|-||
||**195,741,631**|**10,819,403**|**(20,189,083)**||
29
## **12. Movements in funds (continued)**
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 (CoE) grant was additional funding received 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.
Along with the Endowed Funds and CoE grants, the Home Office has funded three additional programmes. The first is a grant to evaluate the tried-and-tested approach known as ‘Focused Deterrence’. The second is a new programme of activities to find out whether 'Trauma-Informed' practice is effective at keeping children safe from violence. The third is a grant which aims at reducing 'Violence Against Women and Girls' by undertaking well developed projects targeted to breaking cycles of violence.
Supplementing grant income from the Home Office, are two significant partnerships, and several smaller grants. The Peer Action Collective is a joint partnership with #iwill and Co-op funds. Together, the partners are investing £5.2 million to build a network of peer researchers to study the experience of youth violence. YEF has also partnered with Comic Relief to launch a new £6m joint funding programme to support organizations working to prevent youth offending. The Department for Culture, Media and Sports fund is part of the Reach Schools Project offering mentoring and group support to young people at risk of school suspension with the aim to prevent future offending. The National Police Chiefs' Council, Arts Council England, and Youth Futures Foundation grants are aimed at providing systematic reviews and advice on specific interventions.
## **13. Operating lease commitments**
At 31 March 2023, the charity had commitments under operating leases of:
|Due within one year
Two to five years|**Buildings**
**£**
171,000
-|**Mar'23**
Dec'21
**Total**
Total
**£**
£
171,000
228,000
-
228,000
171,000
456,000|
|---|---|---|
||171,000||
## **14. 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 £3,457,931 (Year to 31 December, 2021: £2,399,948) were recharged by Impetus to the Youth Endowment Fund during the 15 months to 31 March 2023. As of 31 March 2023 the Youth Endowment Fund owed amounts totalling £253,442 (31 December 2021: £249,858) to Impetus.
30