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2023-03-31-accounts

REGISTERED COMPANY NUMBER: 11953689 (England and Wales) REGISTERED CHARITY NUMBER: 1186059

Report of the Trustees and Financial Statements for the Year Ended 31 March 2023

for Youth Connect South West

Sumer Audit Statutory Auditors Hermes House Fire Fly Avenue Swindon Wiltshire SN2 2GA

Youth Connect South West

Contents of the Financial Statements for the Year Ended 31 March 2023

Page
Report of the Trustees 1 to 7
Report of the Independent Auditors 8 to 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Cash Flow Statement 14
Notes to the Financial Statements 15 to 26

Youth Connect South West (Registered number: 11953689)

Report of the Trustees for the Year Ended 31 March 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

To act as a resource for young people up to the age of 25 living in the United Kingdom by providing advice and assistance and organising programmes of physical, educational and other activities as a means of: (a) advancing in life and helping young people by developing their skills, capacities and capabilities to enable them to participate in society as independent, mature and responsible individuals; (b) advancing education; (c) relieving unemployment; (d) providing recreational and leisure activities in the interests of social welfare for people living in the area of benefit who have need by reason of their youth, age, infirmity or disability, poverty or social and economic circumstances with a view to improving the conditions of life of such persons.

The promotion of social inclusion for the public benefit by preventing young people from becoming socially excluded, relieving the needs of those young people who are socially excluded and assisting them to integrate into society.

Page 1

Youth Connect South West (Registered number: 11953689)

Report of the Trustees for the Year Ended 31 March 2023

OBJECTIVES AND ACTIVITIES

Significant activities

The charity aims to support young people in Bath and North East Somerset (B&NES) and the South West by providing high quality, excellent programmes for young people, we believe by developing and growing the organisation we can reach more young people and their families/carers to enable them to grow to be the best they can be. Our Vision and Mission are:

o Vision - Delivering inspiring youth services that young people want to be part of

o Mission - Supporting young people to enjoy today, prepare for tomorrow and become the people they want to be. o Values:

Keeping young people safe - working in the best interests of young people and putting them at the centre of everything we do

Collaboration - working with families, communities, and other stakeholders to make things better for young people. Meeting expectations - going "the extra mile" to support young people. Inclusion - being there for all of those who need us.

Determination and creativity - modelling the importance of trying new things, continually learning, and never giving up.

The organisation works with young people through a range of different programmes:

Through the activities of the charity, we were honoured to be named Bath and North East Somerset Charity of the year.

The range of issues have similar to the last few years but have intensified, the ongoing impact of the pandemic 12 months on we are now seeing how the isolation and lack of education during this period has impacted on young people, many with delayed educational attainment and increased mental health issues.

Other ongoing issues include:

In their 2022 Strategic Evidence Base for Bath and North East Somerset report, B&NES Council estimates across the region there are 4,000 people who will fall into absolute poverty in 2022/23, of whom 1,500 are children". Two areas of B&NES are in the top 10% of most deprived areas Twerton and Whiteway.

-Rates of hospitalisation are and comparatively high for:

o Under 18 mental health

o Under 18 alcohol conditions

o Eating disorders o Self-harm Particularly for girls and young women"

The Training and Induction policies have been reviewed and updated, we are making better use of the staff intranet (staff portal) to ensure staff have good access to policies and procedures. The training plan sets out the organisations intentions to develop and train staff, with core training and development opportunities.

Equality, diversity, and inclusion policy has been reviewed and became a core part of the strategic plan. Trustees and staff have received development and training from the Belonging network, which has helped us ensure this theme is embedded throughout the organisation.

All programmes are monitored and evaluated through a quality assurance system, with annual reviews. Teams and staff are set targets which are monitored by line managers in team meeting, supervision, and quarterly reporting.

All young people interventions are recorded on a core database and reports are produced on a quarterly basis.

Quarterly reports include evidence of meeting numerical targets as well as case studies hi lighting good practise. Newsletters are produced by all programmes internally and externally, these are aimed at staff, young people, funders, and the public.

Staff performance and sickness are discussed at management meetings and reported to Trustees quarterly meeting via the Human Resources (HR) subgroup.

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Youth Connect South West (Registered number: 11953689)

Report of the Trustees for the Year Ended 31 March 2023

OBJECTIVES AND ACTIVITIES

Staff are also supported by an employee assistance and wellbeing programme.

Staff welfare has become particularly important and now some staff receive facilitated group supervision, which staff find very useful.

This year the Peoples Pension employee contribution remained the same at 6%.

Public benefit

The Trustees have paid due regard to the Charity Commission's Guidance on Public Benefit in deciding what activities the charity should undertake. The Trustees consider that they have acted in the public benefit.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Charity has met its charitable objects through the activities of the organisation. The organisation restructured to be able to support organisational growth, this enabled YCSW to grow by 20% in this financial year.

FINANCIAL REVIEW

Financial position

The organisation has had a successful third year and accumulated a surplus, this has meant the organisation has been able to place significant funds in reserves ensuring the future sustainability of the organisation. This has led to further development in the infrastructure to meet the demands of a growing organisation.

The core contract currently underpins the financial stability, but the financial risk has been spread across all programmes, as we head in to the last year of the core contract before commissioning.

Restricted funds in relation to grants and government restricted funding are £88,444 as at 31 March 2023.

The key significant event this year re financial was the departure of the financial manager and the move to digitalise all finances using XERO software. This has been problematic at times. The organisation has now appointed a new financial manager who started in August.

Page 3

Youth Connect South West (Registered number: 11953689)

Report of the Trustees for the Year Ended 31 March 2023

FINANCIAL REVIEW

Principal funding sources

Reserves policy

At 31 March 2023, total funds held were £657,833 of which £88,444 are held in restricted funds and £125,000 in designated funds. Funds of £71,728 are held as fixed assets. Free reserves are £372,661. The reserve policy was reviewed and updated by Trustees.

The charity will continue to work towards developing the reserve to ensure long term sustainability.

Separate from the Reserve we have created a designated fund for transition which aligns with the end of the B&NES contract (taken from Reserve Policy):

"YCSW was established as a Public Service Mutual and its first 5 years of operation is supported by a significant contract by Bath and North East Somerset and supported through a transition agreement. At the end of the 5-year contract YCSW will need to ensure it has a lasting infrastructure and this period will be a significant transition with associated costs".

This designated fund for the transition will incorporate:

The target for the designated fund for transition is £125,000 by 2024, this target has been achieved and has been set aside for any transition in 2023-24, when this fund will begin to be utilised.

This figure will be reviewed annually to ensure it meets the potential costs of transition.

Further designated budgets maybe assigned within the YSCW strategic plan."

Going concern

As noted under 'Principal risks and uncertainties', the original early help commission and licences, associated with the formation of YCSW, comes to an end on 4 November 2024. This contract has an annual value of £517k and was originally the only source of income; total turnover has since grown to £1.8m through the development of wider services. There is some uncertainty about what the recommissioning of this core contract will result in, but YCSW is in an excellent position to be successful in this future tender. Whatever the outcome, reliance on this income has been significantly reduced. Key contracts for services provided by BANES have already been extended beyond this transition point and reserves have been built to manage the transition of other key resources such as property leases. Whilst this upcoming transition will be significant for YCSW, the Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.

Principal risks and uncertainties

YCSW has a five year strategy and business plan, updated quarterly, each program area has an operational plan. A financial risk assessment is updated and reviewed quarterly. YCSW is 4's years old and therefore coming to the 5th year of operation, most of the leases, original spinout early help commission and licenses end after 5 years on 4 November 2024. The coming year will be a focus on ensuring our leases and licenses are renewed and/or extended, the core contract will be re tendered for and we are confident that we are in an excellent position to be successful. The back room services agreement which supplies IT, CCTV, telephone services will be extended to Nov 2027.

Factors likely to affect future financial performance or position

The chief factor effecting financial position in the coming 18 months is the recommission of the spin out Early help contract, although this will not affect the coming financial year. The organisation is clearly in a strong financial position with or without this contract and we will be testing our financial stability over the coming 6 months .

Page 4

Youth Connect South West (Registered number: 11953689)

Report of the Trustees for the Year Ended 31 March 2023

PLANS FOR FUTURE PERIODS

The organisation is undertaking a strategic review of its management and business infrastructure and has restructured to meet the needs of the organisation.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

The constitution was amended to increase from 8 to 10 Trustees to cope with the growing needs of the organisation, one new Trustee were recruited leaving a vacancy. The chair of Trustees also changed this year, but no Trustees left ensuring stability of the organisation.

Organisational structure

The organisation is a registered charity and company limited by Guarantee. It has a Trustee who is the CEO, and one is a staff representee in line with the organisation being a Public Service Mutual.

Trustees were increased from 8 to 10 this year to meet the growing demand and one new Trustees were recruited.

Trustees meet quarterly where they receive reports from the CEO and sub committees, at these meeting Trustees will review the organisation development, receive the subcommittee minutes, requests, and act accordingly.

Policies and procedures are approved by the Board of Trustees, day to day decisions making is delegated to the CEO and the senior management team.

Induction and training of new trustees

All Trustees receive an induction pack which contains the constitution, roles and responsibilities, key policies and expected knowledge and information they need to possess to be an effective trustee. They are also sent regular updates from the charity commission, and these are discussed at the Trustee meeting. Trustee are expected to attend training provided by the local voluntary sector networks which we are members of. Trustee will be expected to undertake equalities and diversity training, safeguarding and child protection and develop knowledge and leadership in fundraising.

The organisation also joined the funding regulator and has developed a Fundraising Policy.

Key management remuneration

Trustees receive regular updates regarding any pay and terms of condition of employment changes, The senior management team developed a matrix approved by Trustees for assessing staff pay and remuneration, this is reviewed on an annual basis and referred to when creating new roles and reviewing pay.

Page 5

Youth Connect South West (Registered number: 11953689)

Report of the Trustees for the Year Ended 31 March 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Relationships with related parties and any other charities and organisations

The organisation is a member of the following networks and organisations: - 3SG - Fundraising regulator - VOSCUR - Disability Confident employer - Good employment charter - Children's and young people network - SW regional youth work - Somerset Youth Work Alliance - Twerton and Whiteway Network - Learning Partnership BANES - Business West - West of England Combine Authority (WECA) Other charities and organisations we are in partnership with - Bath City Farm - Creativity works - Creative Twerton - Little lost Robot/Emerge - The Naturals theatre company - Off the Record - City of Bath College - Project 28 - Avon and Somerset police - Bath and North East Somerset Council - Serious Youth Violence unit and Safer Cities - Bath Bid - Avon and Somerset Police - Radstock Town Council - Mid Somer Norton Town Council - Timsbury Parish Council - Paulton Parish Council - Westfield Parish Council - Chilcompton Parish Council - Henstridge Parish Council

The organisation works with other network members to deliver its charitable aims and draws up terms of reference and partnership agreements to help ensure the work is delivered successfully. If there is a lead partner, and financial involvement a contract will be drawn up.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Fund-raising Standards Information

The charity does not carry out significant fundraising activities and does not undertake direct marketing. All fundraising activities are monitored by the CEO and the Trustees and a Fundraising Policy is in place. The charity does not use a professional fund-raiser or commercial participator. The charity has not received any complaints about its fundraising.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

11953689 (England and Wales)

Registered Charity number

1186059

Registered office

Southside Youth Hub Kelson View Whiteway Bath BA2 1NR

Page 6

Youth Connect South West (Registered number: 11953689)

Report of the Trustees for the Year Ended 31 March 2023

Trustees

Ms J Fielder C D Gerrish R F Hopkins Ms G Millar Ms T L Pike Rev A S Pitt Ms S Reynolds (resigned 6.7.22) Ms R E Walker Miss S A May (appointed 15.5.23) Mrs D Chadda (appointed 15.5.23) M A Bandalli (appointed 12.12.22)

Senior management personnel

Chief Executive Officer - Ms T L Pike Senior Operational Lead - Mr S Plummer

Auditors

Sumer Audit Statutory Auditors Hermes House Fire Fly Avenue Swindon Wiltshire SN2 2GA

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Youth Connect South West for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

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

In so far as the trustees are aware:

AUDITORS

The auditors, Sumer Audit, will be proposed for re-appointment at the forthcoming Annual General Meeting.

4 December 2023 Approved by order of the board of trustees on ............................................. and signed on its behalf by:

........................................................................ Rev A S Pitt - Trustee

Page 7

Report of the Independent Auditors to the Members of Youth Connect South West

Opinion

We have audited the financial statements of Youth Connect South West (the 'charitable company') for the year 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 (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

Page 8

Report of the Independent Auditors to the Members of Youth Connect South West

Responsibilities of trustees

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

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

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity and the provision of youth services, we identified that the principal risks of non-compliance with laws and regulations related to safeguarding, health and safety, employment law, Companies Act 2006 and Charity Law, and we considered the extent to which non-compliance might have a material effect on the financial statements of the charity. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Statement of Recommended Practice.

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 revenue recognition, management override, and potential lack of segregation of duties. Audit procedures performed by the audit engagement team included: - discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and the transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 Report of the Independent Auditors.

Page 9

Report of the Independent Auditors to the Members of Youth Connect South West

Use of our report

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

James Gare FCA DChA (Senior Statutory Auditor) for and on behalf of Sumer Audit Statutory Auditors Hermes House Fire Fly Avenue Swindon Wiltshire SN2 2GA

Date: ............................................. 6 December 2023

Page 10

Youth Connect South West

Statement of Financial Activities for the Year Ended 31 March 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Charitable activities
6
Youth and Community Services
Social enterprise - Cafe
Other trading activities
4
Investment income
5
Total
EXPENDITURE ON
Charitable activities
7
Youth and Community Services
Social enterprise - Cafe
Total
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
Unrestricted
funds
£
17,307
1,596,655
37,621
2,775
295
1,654,653
1,586,723
17,964
1,604,687
49,966
519,423
569,389
Restricted
funds
£
169,390
-
-
-
-
169,390
253,503
-
253,503
(84,113)
172,557
88,444
2023
Total
funds
£
186,697
1,596,655
37,621
2,775
295
1,824,043
1,840,226
17,964
1,858,190
(34,147)
691,980
657,833
2022
Total
funds
£
314,311
1,165,226
34,573
2,827
-
1,516,937
1,294,174
17,619
1,311,793
205,144
486,836
691,980

The notes form part of these financial statements

Page 11

Youth Connect South West (Registered number: 11953689)

Balance Sheet 31 March 2023

Notes
FIXED ASSETS
Tangible assets
15
CURRENT ASSETS
Debtors: amounts falling due within one year
16
Debtors: amounts falling due after more than one
year
16
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
20
Unrestricted funds:
General fund
Designated fund - transition costs
Restricted funds
TOTAL FUNDS
2023
£
71,728
476,605
-
492,159
968,764
(382,659)
586,105
657,833
657,833
444,389
125,000
569,389
88,444
657,833
2022
£
53,356
663,824
2,407
586,599
1,252,830
(614,206)
638,624
691,980
691,980
394,423
125,000
519,423
172,557
691,980

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

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 4 December 2023

............................................. C D Gerrish - Trustee

The notes form part of these financial statements

Page 12

Youth Connect South West

Cash Flow Statement for the Year Ended 31 March 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period
2023
£
(56,088)
(56,088)
(47,691)
9,044
295
(38,352)
(94,440)
586,599
492,159
2022
£
286,909
286,909
(62,225)
-
-
(62,225)
224,684
361,915
586,599

The notes form part of these financial statements

Page 13

Youth Connect South West

Notes to the Cash Flow Statement for the Year Ended 31 March 2023

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest received
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash (used in)/provided by operations
2023
£
(34,147)
20,275
(295)
189,626
(231,547)
(56,088)
2022
£
205,144
12,367
-
(410,182)
479,580
286,909

2.

ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22 Cash flow At 31.3.23
£ £ £
Net cash
Cash at bank and in hand 586,599 (94,440) 492,159
586,599 (94,440) 492,159
Total 586,599 (94,440) 492,159

The notes form part of these financial statements

Page 14

Youth Connect South West

Notes to the Financial Statements for the Year Ended 31 March 2023

1. STATUTORY INFORMATION

Youth Connect South West is a charitable company limited by guarantee, without share capital, incorporated in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The registered office address and principle activities of the charity can be found in the Trustees' Report.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest pound.

There are no significant areas of judgements or key sources of estimation uncertainty.

Going concern

As noted within Trustees Report under 'Principal risks and uncertainties', the original early help commission and licences, associated with the formation of YCSW, comes to an end on 4 November 2024. This contract has an annual value of £517k and was originally the only source of income; total turnover has since grown to £1.8m through the development of wider services. There is some uncertainty about what the recommissioning of this core contract will result in, but YCSW is in an excellent position to be successful in this future tender. Whatever the outcome, reliance on this income has been significantly reduced. Key contracts for services provided by BANES have already been extended beyond this transition point and reserves have been built to manage the transition of other key resources such as property leases. Whilst this upcoming transition will be significant for YCSW, the Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of:

Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Expenditure

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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Page 15

continued...

Youth Connect South West

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

2. ACCOUNTING POLICIES - continued

Allocation and apportionment of costs

All costs are allocated between the expenditure categories in the Statement of financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particulate activity are allocated directly. Support costs, including governance costs, are apportioned on the basis of estimated aggregate time expended on each activity.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 25% on straight line basis Motor vehicles - 20% on straight line basis Computer equipment - 25% on straight line basis

Financial instruments

The charity has minimal exposure to customer credit risk, liquidity risk and market risk. Please refer to the risk section of the trustees annual report for information on how risks are managed. The charity does not have any non basic financial instruments.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

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

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Retirement benefits to employees are also provided by the Local Government Pension Scheme ('LGPS'). This is a defined benefit scheme.The LGPS is a funded multi-employer scheme and the assets are held separately in separate trustee administered funds. The LGPS is managed by Avon Pension Fund. On termination all the assets and liabilities of the charity will be subsumed by the Council into its pot within the Pension Fund, and the Pension Fund will not request a termination payment from the charity. Therefore Bath and North East Somerset Council are liable for the LGPS deficit and as such any deficit on the scheme is not recognised in these accounts. The LGPS is treated as a defined contribution scheme in these accounts.

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Youth Connect South West

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

3.
DONATIONS AND LEGACIES
Donations and grants
4.
OTHER TRADING ACTIVITIES
Other income
5.
INVESTMENT INCOME
Deposit account interest
6.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Grants
Youth and Community Services
Youth work contract sessions
and other support
Youth and Community Services
Souths Youth Hub lettings
Youth and Community Services
Cafe sales
Social enterprise - Cafe
Grants received, included in the above, are as follows:
Kickstart
7.
CHARITABLE ACTIVITIES COSTS
Youth and Community Services
Social enterprise - Cafe
8.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Activities and session delivery costs
Premises
Travel
Sundries
Cafe purchases and repairs
Depreciation
Direct
Costs (see
note 8)
£
1,427,767
17,964
1,445,731
2023
£
186,697
2023
£
2,775
2023
£
295
2023
£
10,500
1,569,454
16,701
37,621
1,634,276
2023
£
10,500
Support
costs (see
note 9)
£
412,459
-
412,459
2023
£
1,187,053
102,985
101,850
8,090
4,172
21,306
20,275
1,445,731
2022
£
314,311
2022
£
2,827
2022
£
-
2022
£
30,105
1,120,848
14,273
34,573
2022
£
314,311
2022
£
314,311
1,199,799
2022
£
30,105
Totals
£
1,840,226
17,964
2022
£
30,105
1,858,190
2022
£
832,857
114,284
22,776
12,050
1,017
17,619
12,367
1,012,970

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Youth Connect South West

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

9. SUPPORT COSTS

10.

SUPPORT COSTS
Governance
Management costs Totals
£ £ £
Youth and Community Services 375,484 36,975 412,459
Support costs, included in the above, are as follows:
2023 2022
Youth and
Community Total
Services activities
£ £
Wages 225,303 200,051
Social security 15,761 16,620
Pensions 29,671 26,068
Insurance 11,809 9,185
Postage, IT and stationery 20,819 8,544
Advertising 2,108 2,147
HR, wellbeing and training 29,651 21,690
Irrecoverable VAT 40,362 -
Auditor's remuneration 29,898 14,518
Legal fees 7,077 -
412,459 298,823
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2023 2022
£ £
Auditor's remuneration - Auditing of the accounts 10,530 8,965
Auditor's remuneration - Other non-audit services 19,368 5,553
Depreciation - owned assets 20,275 12,367
Operating lease - rent 5,500 -

11. TRUSTEES' REMUNERATION AND BENEFITS

The Trustee, T Pike, is employed by the Charity, as per the Charity's constitution, as Chief Executive Officer, and earned gross salary of £48,784 (2022: £47,944) and employers pension contribution of £11,318 (2022: £11,123).

The Trustee, R Walker, is employed by the Charity as a youth worker and is the staff representative on the board from 6 July 2021, and earned gross salary of £23,213 (2022: £15,455) and employers pension contribution of £995 (2022: £1,004).

The Trustee, S Reynolds, was employed by the Charity as a youth worker and was the staff representative on the board until 6 July 2021, and earned gross salary of £6,395 and employers pension contribution of £1,484.

The above only receive remuneration in respect of staff members under their contracts of employment, and not in respect of their role as trustees.

There were no other trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

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Youth Connect South West

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
2023
£
1,261,853
97,532
98,403
1,457,788
2022
£
924,134
65,748
85,714
1,075,596

The average monthly number of employees during the year was as follows:

Management
Business team
Targeted
Youth Work
Learning for Work
Southside
Partnership for Learning
Education Support Services
2023
3
6
17
16
10
7
4
2
65
2022
4
5
16
13
7
7
-
-
52

No employees received emoluments in excess of £60,000.

Key management personnel for the charity comprises the Trustees, the Chief Executive Officer, the operational manager and the business manager. The total employee benefits for key management personnel of the charity were £178,897 (2022: £165,610).

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Youth and Community Services
Social enterprise - Cafe
Other trading activities
Total
EXPENDITURE ON
Charitable activities
Youth and Community Services
Social enterprise - Cafe
Total
NET INCOME
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
Unrestricted
funds
£
110,961
1,165,226
34,573
2,827
1,313,587
1,121,478
14,236
1,135,714
177,873
49,863
227,736
291,687
519,423
Restricted
funds
£
203,350
-
-
-
203,350
172,696
3,383
176,079
27,271
(49,863)
(22,592)
195,149
172,557
Total
funds
£
314,311
1,165,226
34,573
2,827
1,516,937
1,294,174
17,619
1,311,793
205,144
-
205,144
486,836
691,980

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Youth Connect South West

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

14. GOVERNMENT GRANT INCOME

2023 2022
£ £
Bath and North East Somerset Council - grants 8,000 120,830
H M Revenue and Customs - kickstart funding 10,500 30,105
Home Office 67,454 -

There were no unfulfilled conditions or other contingencies attached to these grants. The charity has not directly benefited from any other forms of government assistance.

15. TANGIBLE FIXED ASSETS

16.

Fixtures
and
Motor
fittings
vehicles
£
£
COST
At 1 April 2022
29,145
33,865
Additions
10,497
-
Disposals
(9,044)
-
At 31 March 2023
30,598
33,865
DEPRECIATION
At 1 April 2022
4,888
7,906
Charge for year
6,558
6,773
At 31 March 2023
11,446
14,679
NET BOOK VALUE
At 31 March 2023
19,152
19,186
At 31 March 2022
24,257
25,959
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income
DEBTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Computer
equipment
£
4,186
37,194
-
41,380
1,046
6,944
7,990
33,390
3,140
2023
£
320,524
14,312
141,769
476,605
Totals
£
67,196
47,691
(9,044)
105,843
13,840
20,275
34,115
71,728
53,356
2022
£
491,045
-
172,779
663,824
2023 2022
£ £
Accrued income - 2,407

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Youth Connect South West

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income
2023
£
3,282
50,921
633
327,823
382,659
2022
£
23,076
68,825
18,106
504,199
614,206

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years
2023
£
22,000
51,333
73,333
2022
£
-
-
-

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets
Current assets
Current liabilities
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Designated fund - transition costs
Restricted funds
Southside Community Library
Grow it, Cook it
Quartet Community Grant
Wesport - Outreach
MSN rotary
Wellbeing
Section 106 and Community Infrastructure
Levy funding
Wesport - Crime reduction through Sport
Bath Rotary club - Hair and beauty course
Bath Rotary club
School for Social Enterprise
Effective Transitions
TOTAL FUNDS
Unrestricted
funds
£
71,728
880,320
(382,659)
569,389
Restricted
funds
£
-
88,444
-
88,444
At 1.4.22
£
394,423
125,000
519,423
1,535
300
1,005
1,135
935
-
91,671
3,378
384
1,500
119
70,595
172,557
691,980
2023
Total
funds
£
71,728
968,764
(382,659)
657,833
Net
movement
in funds
£
49,966
-
49,966
(1,535)
(300)
(1,005)
(1,135)
(935)
20,000
(43,745)
(3,378)
(384)
(1,500)
(119)
(50,077)
(84,113)
(34,147)
2022
Total
funds
£
53,356
1,252,830
(614,206
2022
Total
funds
£
53,356
1,252,830
(614,206
691,980
At
31.3.23
£
444,389
125,000
569,389
-
-
-
-
-
20,000
47,926
-
-
-
-
20,518
88,444
657,833

20. MOVEMENT IN FUNDS

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Youth Connect South West

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

20. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Southside Community Library
Youth work
Grow it, Cook it
Quartet Community Grant
Wesport - Outreach
COVID inequalities
MSN rotary
Wellbeing
Section 106 and Community Infrastructure
Levy funding
Wesport - Crime reduction through Sport
Bath Rotary club - Hair and beauty course
Bath Rotary club
School for Social Enterprise
Placement funding
Effective Transitions
Music
Safer streets
Warm spaces
Young People's Specific Trips Funding
Cost of living crisis
Bath City Centre Building Fund
Other small restricted funds
TOTAL FUNDS
Incoming
resources
£
1,654,653
-
20,380
-
14,130
-
4,000
-
20,000
-
4,934
-
-
7,500
16,820
-
5,000
67,454
250
600
1,400
4,762
2,160
169,390
1,824,043
Resources
expended
£
(1,604,687)
(1,535)
(20,380)
(300)
(15,135)
(1,135)
(4,000)
(935)
-
(43,745)
(8,312)
(384)
(1,500)
(7,619)
(16,820)
(50,077)
(5,000)
(67,454)
(250)
(600)
(1,400)
(4,762)
(2,160)
(253,503)
(1,858,190)
Movement
in funds
£
49,966
(1,535)
-
(300)
(1,005)
(1,135)
-
(935)
20,000
(43,745)
(3,378)
(384)
(1,500)
(119)
-
(50,077)
-
-
-
-
-
-
-
(84,113)
(34,147)

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continued...

Youth Connect South West

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

20. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Designated fund - transition costs
Restricted funds
Southside Community Library
Mobile Bus start up costs
Youth work
Grow it, Cook it
Quartet Community Grant
Wesport - Outreach
Affordable food projects
Police Community Trust Action fund
MSN rotary
Wellbeing
Annett Trust
Section 106 and Community Infrastructure
Levy funding
Wesport - Crime reduction through Sport
Bath Rotary club - Hair and beauty course
Bath Rotary club
Children In need - Electric minibus & extras
Serious Youth violence -"Tarmac" Grant
School for Social Enterprise
Effective Transitions
TOTAL FUNDS
At 1.4.21
£
166,687
125,000
291,687
2,000
5,647
5,750
4,976
-
2,710
2,852
2,000
1,535
1,000
500
166,179
-
-
-
-
-
-
-
195,149
486,836
Net
movement
in funds
£
177,873
-
177,873
(465)
(5,647)
(5,750)
(4,676)
1,005
(1,575)
(2,852)
(2,000)
(600)
(1,000)
(500)
(74,508)
3,378
384
1,500
40,819
9,044
119
70,595
27,271
205,144
Transfers
between
funds
£
49,863
-
49,863
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(40,819)
(9,044)
-
-
(49,863)
-
At
31.3.22
£
394,423
125,000
519,423
1,535
-
-
300
1,005
1,135
-
-
935
-
-
91,671
3,378
384
1,500
-
-
119
70,595
172,557
691,980

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continued...

Youth Connect South West

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

20. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 1,313,587 (1,135,714) 177,873
Restricted funds
Southside Community Library - (465) (465)
Mobile Bus start up costs - (5,647) (5,647)
Youth work - (5,750) (5,750)
Grow it, Cook it - (4,676) (4,676)
Quartet Community Grant 2,000 (995) 1,005
Palace of Wonder 4,770 (4,770) -
DHI 4,958 (4,958) -
Wesport - Outreach - (1,575) (1,575)
Affordable food projects - (2,852) (2,852)
Police Community Trust Action fund - (2,000) (2,000)
MSN rotary - (600) (600)
Wellbeing - (1,000) (1,000)
Annett Trust - (500) (500)
Section 106 and Community Infrastructure
Levy funding - (74,508) (74,508)
WECA - CEC transition funding 9,934 (9,934) -
Bath Rotary club - halloween event 300 (300) -
Wesport - Crime reduction through Sport 5,104 (1,726) 3,378
High Sherriff event 1,500 (1,500) -
Bath Rotary club - Hair and beauty course 1,000 (616) 384
Bath Rotary Club - Shed 1,000 (1,000) -
Bath Rotary club 1,500 - 1,500
Children In need - Electric minibus & extras 41,221 (402) 40,819
BANES - Healthwatch 4,741 (4,741) -
Serious Youth violence -"Tarmac" Grant 9,044 - 9,044
School for Social Enterprise 7,500 (7,381) 119
Café Salaries 1,000 (1,000) -
Placement funding 10,667 (10,667) -
Effective Transitions 97,111 (26,516) 70,595
203,350 (176,079) 27,271
TOTAL FUNDS 1,516,937 (1,311,793) 205,144

Restricted funds

Southside Community Library - funding from BANES for Southside community library including IT equipment, storage, furniture and event costs.

Mobile Bus start up costs - funding from BANES for the start up costs for the mobile bus

Youth Work - donations from various organisations for the provision of youth work.

Palace of wonder - support the provision of early mental health support for anxious children and young people

Wesport- Outreach - Funding to deliver an outreach programme and online support to young people in hard to reach communities

Affordable food projects - to contribute towards supporting families and individuals in Whiteway and Twerton.

COVID inequalities - BANES funding for inequalities

Police Community Trust action fund - funding to tackle issues in their local area relating to the priorities set out in the Police Crime Plan.

Serious Youth Violence - Music project - funding to help prevent serious youth violence through music

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Youth Connect South West

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

20. MOVEMENT IN FUNDS - continued

Serious Youth Violence - Graffiti project - funding to help prevent serious youth violence through graffiti art project

MSN Rotary Club - funding to support the young people in BANES through the purchase of laptops, assistance technology, short college courses and driving lessons

Section 106 and Community Infrastructure Levy funding - funding for Bath youth work

WECA - CEC transition funding - funding for garden project

Bath rotary club - funding for various events and courses.

Wesport - funding for crime reduction through sport

Children in need - funding received for a minibus and other items

BANES healthwatch - funding for healthwatch project

Serious Youth Violence - Tarmac project - funding to help prevent serious youth violence through the improvements to the skatepark

Café salaries - to fund the kitchen manager salary

School for social enterprise - funding for the café

Placement funding - funding for community events coordinator (in 2022) and for a Café intern (in 2023).

Effective Transitions - funding to deliver targeted transition support to enable disadvantaged young people in Key Stage 4 to achieve sustained engagement in high-quality post-16 destinations.

Cost of living - funding from WPD

Wellbeing - funding for a wellbeing worker.

Quartet community grant - various grants from Quartet including for kayaking courses, skate parks and training, the Arts and lunchclubs

Music - funding for music tutors and funding from the Violence Reduction unit for a music worker.

Safer streets - funding from the Home Office for safer streets

Warm spaces - funding to provide a warm space

Young peoples specific trips funding - funding trip costs

Bath City centre building fund - funding for the bath centre building

Designated funds

This designated fund is for:

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continued...

Youth Connect South West

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

21. EMPLOYEE BENEFIT OBLIGATIONS

The charity is a member of the Avon Pension Fund, a Local Government Pension Scheme, which is a defined benefit scheme. In these accounts it is treated as a defined contribution scheme as Bath and North East Somerset Council are liable for the deficit. The cost for the period was £68,769 (2022: £75,438).

The charity also makes payments to The People's Pension, a defined contribution scheme. The cost for the period was £29,634 (2022: £10,878).

At the balance sheet date contributions of £nil (2022: £9,265) were payable to the schemes.

22. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2023.

Page 26