Company registration number 14606941 (England and Wal￿> PRESTON YOUTH ZONE LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 PRESTON YOUTH ZONE LTD LEGAL AND ADMINISTRATIVE INFORMATION Trustoès MrMJGwory Mr A S Phillips Mr J G Chesworth Mrs F L Norcross Mr G Topping Mrv D Kovvuri (Appointed 4 Septèmber 20241 IAppointed 4 September 20241 (Appointed 18 February 20251 (Appointed 10 Oe¢ember 20241 (Appointed 10 December 20241 M5SLPage MrANCox MrPJM3￿h Mr S R Nixon S•nlor managémènt Tim Jacques Chief executive Company numb•r 14806941 Prlnclpal addres• Onside Youth Zone8 Atria Spa Road Bomon BL1 4AG R•gl8t•r•d offl¢• Onside Youlh Zones Aln'a Spa Road Bomon BL14AG Audltor DonneltyBentley Ltd Hazlemere 70 Chorfey New Road Bohon L8n¢gshi BL14B Y Bankers Handelsbanken plc Unil 7B Edward Vll Quay Navigabon Way Preston PR2 2YF PRESTON YOUTH ZONE LTD CONTENTS Page Trustee's report Independent auditorfs report Statement ol financial activiti'es 10 Balance sheet Slalemenl ol ¢ash flo 12 Nol¥$ lo th¥ finan¢ial stalemenl$ 13-23 PRESTON YOUTH ZONE LTD TRUSTEE'S REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2025 The trustees present their annual report and finanaal statements for the year ended 31 March 2025. The financial statements have been prepared in accordanc£ with the accountsng poliaes set out in note 1 to the financial slalements and compty with the chanty's goveming dcKument. Ihe Cornpanie5 Act 2006. FRS 102 "The Financial Reporting Standard applicable in the UK and Republic ol Ireland. and the Charities SORP 'Accounling and Reporting by Charities. Statement of Recommended Piacbce applicable to charthes preparing their accounts in accordance with the Financial Reporting Standard appI￿able in the UK and Republic ol Ireland IFRS 1021.. The Trustees, who are also Directors ol the company. present their Directors. report for the purposes ol section 415 of the Companies Act 2006 and Trustees. Annual Report for the purposes of section 162 of the Char￿.e$ Act 2011 together with the Financial Statements of the Charity for the year lo 31 M8rch 2025. Prèston Youth Zone Ltd was incofporated on 20 January 2023 (Company registration number". 146069411 as 8 company limited by guarantee and re9lStered a$ a Charity on 19 June 2023 {Charity ￿gIstra￿.￿n number". 12036331. Oblectlves and actlvltS88 Public benefit The Iruslees have paid due regard to guidanrk issued by ihe Charity Commission in deciding what activrties the charity should undertake. Preston Youth Zone, recenlty named by young people as Vault., will be a pury)ose-buitt f8¢ility for the ¢ity's young p¥ople aged 8 - 19, and up lo 25 for those wrth phys￿1 disabilitie$ of impaiments and those with nour0d￿er$• charactèri$tts which would have the potential to impacl their opportunity at social enga9ement. The Youth Zone wll be in the city centr6. on the corner of Tithebarn Street and Crijoked Lane, and is expected to be completed in 2025. It is a core component of a wder development fijnded by Preslon Towns Fund which sees the development of several srtes within the Harris Qvarter. Together, these will c￿ate an entertainrnent, cuttural and community hub in the heart of the CTty - bringing social and educational benefit5 to the local community. AS well as the Yovlh Zone, once finishtrd Ihe Ha￿1$ Quarttsr programme will in￿U￿8 8 ¢inem8 and $nlertainmenl complex and lh& ￿lurbi$hM￿n1 of lh¢ Grade I li$l¢d Harri$ Mu$&um, Art Gallery and Library. Preston Youth Zone will join a network of similar Indèpendènt youth organisations that all sharè thè sam& principles, developed by the Charity OnS￿e Youth Zones. which is building 21st century youth facilities across the UK. Youth Zones are based upon a proven model. which has been established in several other towns and cities across the country. and young people from Preslon will have access to a variety of fantastic activities for C05t of onty £5 for an annual membership and 50p per visil. The Youth Zone will provide a safe environment. where youn9 people can spend their leisure lime. helping each young person to r8ise their aspir81ion5. as well 8$ irnprove their physical and rnental heaAh. Vp to 20 dffterent 8divities will take place each night, such 8$ football, boxing, danang, dimbing, ueatwe arts, music, drama and employabilty trainlng all lor just 50p per The Onside Youth Zone model uses a unique partnership approath. drawng together the Local Authority, private sector businesses, young people and the wider local communty. This partnership approach aims to establish the Youth Zone right in the heart of Ihe community for Ihe long term. whilsl rneeling the needs of young people today. Preparation ft)r Preston Youth Zone has been taking p18ce for Several ye8rs. with all the c8PIt81 funding in place to develop this amazing new facilrty, and with an acitve revenue fundiaising campaign underway this will provide the necessary funds required to operate Ihe Youth Zone for the first three years. The contractor (Triton Construction) offiaalty commenced their works on 06 Jul 2024 and this was a significant milestone in the Youth Zone's development history. We look lorward lo conslruction works progressing at pace and the opening ol the building in late 2025 when Preston's young people can begin to benefit from their amazing new Youth Zone. Preston Youth Zone's objecls are lo help and eflucate children and young people resident in Preston and surrounding areas through their leisure time activth.es by promots.ng their full physical and spirrtual potential in order that they may grow to full maturty as individuals and members of souety and their conditions of life rnay irnprove. PRESTON YOUTH ZONE LTD TRUSTEE'S REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Achlevom•nts and p•rfomianeè Significant activities and achi8V8ffl8nts againsl ob￿ctiV*S We are indebted to the caprtal funders who have commiNed to support the Youth Zone. Preston Towns Fund and the Govemrnenl's Youth Investment Fund have committed their support lo the capitsl project along with strategic funders BAE Systems and the Eric Wright Charitable Trust.. together these ftjnders have provided all of the finances needed for the construction and rrt out ol the facility provide 311 the remaining capital funding required and have been instrumental in dnvin9 the project lotwaid. Preston Crty Counol, Preston Towns Fund, the Youth Investment Fund have also ple¢Jged revenue support during the pre-opening phase and earty years of the Youth Zone's operation. The Founder Patron campaign. which provides a Sign￿￿nt proporbon of the operating revenue for the Youth Zone. aims to secure a tol81 of £3.4m to support the first four years of running costs of the Youth Zone.. thi5 wll come from 8 combination of supporters at Founder Patron1£100k over fouf yèars) and Cornerstone Patron levels1£400k over four years). We are pleased lo report that we have already confimied pledges of support trom BAE Systems, the Eric Wright Charitable Trust, Bespoke Heatthcare. Pringle Homes, James Hall & Co and other anonymous patrons committed to our work with young people. Thankfulty. we reach the end of the current financial year in a positive position. able to report a stsrt to construction and just a short period remaining befo￿ we are able to bring this incredible facilty to life. Preslon Youth Zone enjoys the support of Onside Youth Zones l¢haiity number 11258931 in ils development and wlll become a member of the growing Onside network of Youth Zones. Publlc beneflt All the activities of the Chanty las summarisèd above) werè undertaken to further ils charitable purposès for public benefit. The provision of a high-quality cty centre faality for young people responds to a clear, ongoing demand from young people. parents and wder communities for more and better pla￿S for young people to go. Preston Youth Zone will focus on attendance and participation by young members from across the entire community who will be able to enjoy affordable ac￿$$ to all the opportvnilies that the f8cAlities will provide. This will lead lo irnproved aGhievernenls and enhanced aspirations 8mongst young rnember5 of the local community. They will be happier, healthier and make more ¢onsirU￿lvtr u$& of th¥ii leisure lime which will ¢on$equenlly ènable longer tèrm public bsnèfits including improved heamh, ènhancèd lèamin9 and employability, rèducèd crime and greater communty cohesion. The Trustees of Preston Youth Zone believe they have complied vthh Ihe duty in section 17 of the Charities Act 2011 to have due regard to the public benefil guidance published by the Charity Comrnission. Volunleers, Contrlbullon Throughout the period all members of the Board of Trustees made invaluable voluntary contributions to the Charty's work in temis of governance, professional and business experience. finanaal planning, fundraising and leading initiatives across the project. Such contnbutsons we￿, on average, equivalent to Iwo full days each calendar month. but occasionalty were signffjcantty more. Investment perforrnance Under the memorandum and articles of assouation, the charttable company has the power to make any investment which the Trustees see fit. Investmenls are made where required (o further the aims and objects of the Charity. Currently, the Charity does not currentty hold any inveslments other than cash on deposit with Handelsbanken plc. PRESTON YOUTH ZONE LTD TRUSTEE'S REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Flnanelal re¥l•w Tot81 reserve$ al 31 March 2025 wèr8 £6.511.861. The charty is still in its earfy life with grants and donations being receiveil to fund the design and construction of the Youth Zone. The charity continues to cuttivate further donations to support future revenue expenses from a variety of sources as outlined above Isee"achievements in the periodl. The board have considered the principal risks tsryng the Charty which include.. shortage of revenue fvnding to 8chieve the goal of se¢urin9 lunding for 4 years operatK)ns during the e8rty opening phase and the irnp8d of de18yS to the opening ol the Youth Zone. A nsk fegisler Is established wilh speafic mitigating actions, this register is reviewed by the Senior Management Team and reviewed by the board at each meeting. The board also consider the relative impact ol the mrtigaling actions and look lo St￿n91hen these where required. Reserye8 poIIcy The Charity has secured the funding to complele the construth.on of Ihe Youlh Zone and the Founder Patron Irevenuel campaign is well underway. The Truslees have prepared projects'ons of the operating costs once completed. The Board of Trustees ol P￿StOn Youth Zone has estsblished a reserves poliry which appropriately reflects the risks lo which the Charty is exposed. Once Ihe Youth Zone is operating and in cornpliance with such policy, it will review regulaty bo¢h Ihe sum it wishes to hold in reserve5 in the unreslricted budget and the basis for that figure, The reserves policy doe$ not ¢onsi¢Jer expendrture which is linked lo restricted prtsjects and therefore ¢ovtrred by reslri¢ted funds. In reviewing the potential costs thal could arise should a significant reduction in income be incurred, the Trustees have determined that unrestricted. 'free', reserves should be maintained at approximately 3 months running costs. This is based on the running costs when the Youth Zone is fulty operational and is not therefore based on the expenditure in these accounts. The Trustee5 manage Preston Youlh Zone's finances so that an adequate level of reserves can be rnaintsined in cornpliance with Ihe reserves policy. Al 31 March 2025 unrestricted reserves were £420,611, this amount$ io approximatgty 3.5 monlh$' ¢ov&r ol operational ¢o$¢s on¢& w¢ ar& fully op¥rational. Total reserves at 31 March 2025 were £6.511.861 of which £6,091.250 are restricied reserves and £420,611 are unrestricted reserves. £5,989,107 01 lolal reserves can onty be ￿alISed by disposing ol fixed assets. Total reserves at 31 M8r¢h 2025 after deducling both re5trided ftjnds and lunds th8t can onty be rewnisèd on Ihtt dispos81 of assets lolals £416,757. Prlnelpal lundlng •ourc•• The Directors wish to record their Ihanks lo all Ihose individuals and companies who have made donations or pledged their support to the work of the Charty.. this indvdes all Ih05e lisled above plus o¢her anonymou5 donors. Vve cannot overstate the importance of the Founder Patrons who have committed their support to Preston Youth Zone so far. BAE systems, the Enc Vvright Charitable Trust. Bespoke Healthcare. Pnngle Homes, James Hall & Co and other anonymous patrons have shown inuedible enthusiasm and generosity toward the project, and their involvement will only add to the credibility of our work. helping to draw further support from the local business and philanthropic community. PRESTON YOUTH ZONE LTD TRUSTEE'S REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Plans lor luttsr• p•dods With all p8rti8s fulty comrnitted to thè cornpletion ol Preston Youth Zone. work is continuing to execute th8 construction of an incredible fa(ilty, with plans to elevate in the interior to provide a welcomin9, high spec and attractive impression to all visiting young people. As construction progresses, the Youth Zone will look to significantly increase the $￿e of the team employed. the Chief Executive will lead on this exerase. creating a large delivery and support team lo include both paid staff and volunteers. who will be recnjited and inducted ready for opening. Al the same lime. the campargn will ¢ontinue to grow the Youlh Zone'$ tsmity of Founder Patrons with a target of ensuring that the Youth Zone's preopening and first four years ol running costs are fully funded. Preston Youth Zone alreaty benefits from a Board of experienced and committed Trustees. To build on this. and in preparation for full operation. the organisation wll conlinue lo expand the Board of Directors l Trustees induding portfoli03 for finance, legal, safeguarding, People. elc. who wll provide effeclive govemance. oversight and support across the full spectrum ol Youth Zone operations and aclNil*S. Stru¢tur•. gov*m•n¢• and mano9*m•nt Govgrnlng Document Preston Youth Zone is a company limited by guarantee w[th0￿ share Capital and re91Stered under th& Companies Act 2006, registration numb¥r 14606941. Th& ¢ompany 1$ gov¥mea by it$ M¥mofandum and Arti¢l¥$ of Asso¢i8tion dated 20 January 2023. Management ol the company's affairs Is vested In the co-Directors. It is a Charity registered with the Charity Commission on 19 June 2023. In the event of a winding up. the present members and Ihose who have ceased to be a mernber wlhin one year of suctt an event have guaranteed the liabilities of Ihe company to the sum not e￿￿edIng len pounds eath. The trustees, who ar8 also the Ilirectors lor the purpose of ￿MpanY law, and who setvèd durin9 th8 year and up to the date ol signature of the financial statements were.. Mr M J Grègory MrA S Phillips MrJ G Chesworth Mrs F L Norcross Mr G Topping Mr V D Kovvuri MsSLPage MrAN Cox Mr P J Marsh Mr S R Nixon (Appointed 4 September 20241 (Appointed 4 September 20241 (Appointed 18 February 20251 (Appointed 10 December 20241 (Appointed 10 December 20241 PRESTON YOUTH ZONE LTD TRUSTEE'S REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 R•crultm•nt and appolntm•nt ol truste•s The first Directors w8r8 the subscribers to the memorandum as notified to Cornpanies House as the first Directors of the Chaity. A person appointed as a Diredor thereupon becomes a Member of the Charty and a Directors who ceases to hold office for any reason thereupon ceases to be a Member of the Charity. Directors have the power to appoint, by ordinary resolution. any person to be a Director who is willing to act as such. New Directors will be recruited according to the needs ol the Charty and the suiiability ol possible candidates. A unanimous approval of existing Directors would lead to their appointment. The Memgr8ndum and Articles of Associabon states that the number of rnembeTS (Direotorsl $h811 have no maximum and shall not be less than three. Al Ihe first Annual General Meeling all Directors must retire and seek re- election. At each subsequent Annual General Meeting one third of the Oirectots are required to retsre by rotation and seek re-appointment if they wish lo continue. The Members of the Charty are its Director5 for the lime being and the onty persons eligible to be Members ol the Charity are its Directors. Full details of the rules arts Containeil in the ¢ompany'$ Memorandum and Articltrs of Association, dated on Incorporation on 20 January 2023, which may be inspected at the Preston Youth Zone registered office. A pay review will be conducted annualty by the Chief Execulwe each JanuarylFebruary with a proposal being brought to the Nomination & Remuneralion Committee. The CEO remains responsible for the proposal of the Organisation's employees remuneralion with oversight from the Commiltee. The Comrnittee shall be consulted on the CEO'S proposed lolal planned aggregale ernployee costs lor the next finanri81 year. including the proposed slan¢J8rd annual $alary uplift, prior to thè $8tting of Ihe annual budgèt. A numbèr of $¢enario$ may be presented to the Committe& which con$i¢Jer economt ￿ndItiOnS. int1ividual perfoman¢¢ and th* finandal s8curity ol the Organisation. Once agreed, this will be Presented for disOJss￿n and endorsement by the Directors with any applicable changes irnplemented from the 1 April. There 1$ no ¢ommltm8nl lo a perpetual annual in¢reaso. hOw•￿r due ¢on$ideration will b• taken each y&ar. Any consideration around re-grading jobs wll invofve a ￿vIeW of the pay Structu￿ lo ensure decisions are being made fairly across the Organisation's staff team. The CEO ￿11 seek approval ol the Chair in response to mid-year regrading or salary uplfft requests. The Nomination & Remuneration Committee in collaboratKJn with the Chair of the board is responsible for selting Ihe salary and remunerauon ol the Chief Executive. The company's current policy conceming the payment ol Irade credilors is to follow the CBI'S Prompt Payer3 Code Icopie$ are 8vai18ble trom th8 CBI, Cenlfe Point, 103 Nèw Oxford Stwl. London WCIA 1 DUI. The company's current policy conceming Ihe payment of trade creditors is to.. settle the terms of payment wth suppliers when ag￿eIng the temis of each transaction., ensure thal suppliers are made aware ol the tem)s ol payment by indusion of Ihe ￿levant temis in contracts,. and pay in accord8nce with the companys conlractu818nd other leg81 oblig8tions. Trade c￿dItorS of the company at the year end were equNalent to 12 dals purchases, based on the average dai amount invoiced by suppliers during the year. Organlsatlonal structure Preston Youth Zone is govemed by rts Trnstee Board which is responsible for seth.ng the strategic direction of the organisation and the policy of the Charity. The Trustees carry the uth.mate ￿SpOnsIbl11ty for the conduct of Preston Youth Zone and lor ensuring that Ihe Charity satisfies its legal and contractual obligations. Trustees meet approximatety S times a year and may delegate the implemenlalion of their deasions or day-to-day operation ol the organisation to senior managernent. any employee of the Charity. person or comrnittee as they see fit. Any cornrnittee must include 8t least one Trustee. The Trustee Board 15 independent frorn management. Decisions are determined by a simple majonty of votes. In Ihe case of an equality of votes the Chairman of the meeting has the castsng vote. PRESTON YOUTH ZONE LTD TRUSTEE'S REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Risk management The Trustees have Considered the m8jor risks lo which the Ch8rity is exposed 8nd have e5t8blished suitsble risk manAgement and control pro¢edure$. Statement ol Trustee's responslbllltles The trustees. who are also the directors of Preston Youth Zone Ltd for Ihe purpose of company law. are responsible for pr8P8ring the Trustee'5 Report and the finaniial staternents in accoidanc2 wth 8pplicable law 8nd United Kingdom Accounting Standards (Unrted Kingdom Generalty Accepted Accounting Practice). Company law requires the truslees to prepare finanual statements for each finanaal year which give a true and lair view of the state of affairs of the chanty and of the incoming resources and application of resources, induding the incorne and expenditure, of the tharitable company for Ihat year. In preparin9 these financial sl8lernenls, the trustees 8re required to.. sèlect suitable accounting policies and then app￿ them con$i$t&ntty". observe the methods and principles in the Charrties SORP, make judgements and estimates that are reasonable and prudent". state whether applicable UK Accounting Standards have been followed, subj'ect to any material departures disclosed and explained in the financial statements.. and prepare the financial statements on the going ¢on¢em basis unless it is inappropriale to presume that the charity will continue in operation. The trustees are responsible for keeping adequate a¢¢ounling r¥¢ord$ Ihat dis¢lo$e with reasonable a¢¢urA¢y at any time the financial posrtion ol the charity and enable them to ensure that the financial slalements compty wrth the Companies Act 2006. They are also responsible lor safeguarding the assets of Ihe charity and hence for taking reasonable steps for Ihe prevention and deteclion ol fraud and other i￿egUlaritIes. Audltor In accordance with the company's articles, a resolution proposing that Donnel￿BenUeY Ltd be reappointed as auditor of the company will be pul at a General Meeting. Related party transacllons Ar8 discloseil in Note 20 to the ffinancial ststements. Small company exemptlon In prepanng this report the directors have taken advantage of the speaal provisions of Part 15 of the Companies Act 2006 relating to small companies. Olsclosuro of Inforniatlon to audltor Each of the trustees has confimed that there is no infomiab.on of which they are aware which is relevant to the audit, but of which the auditor is unawa￿. They have further confimied that they have taken appropriate steps to identify such relevant infornithon and to establish that the audrtor is aware of such infomation. The Trustee's report was approved by the Board of Trustees. 6Ky Tgppii16 Mr G Topping 30 October 2025 PRESTON YOUTH ZONE LTD INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PRESTON YOUTH ZONE LTD Oplnlon We have audit&d the financial stat8rnents of Preston Youth Zone Ltd (the 'charity'l for the year ended 31 March 2025 which comprise the Statement of finanual aCb¥ities, the balance sheet, the statement of cash flows and notes to the financial statements. including signthcant accounting poliues. The finanual feporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. incjuding Finanaal Reporting Standard 102 The Financial Reporting Standaro applicable in the UK and Republic of I￿18￿￿ (United Kingdom Generally Accepted Accounting PTactKel. In our opinion, the financial staternents.. give a true and fair view ol the state of Ihe charitable companvs affairs as at 31 March 2025 and of its incoming resources and application of resources. induding its income and expenditu￿. for the year then ended.. have been properfy prepared in accordance wrth United Kingdom Generalty Accepted Accounting Practice,. and have boen preparetj in a¢¢ord8nce wrfh the requirtrments of the Companies Ad 2006. Ba818 for oplnlon We conducted our au¢Jit in ac￿rdanc? wrth Intem8bonal siandards on Auditing IVKI IISAS IUKII 8nd 8ppli¢able law. Our responsibilities under those standards ar& fvrther (Je￿ribed in lh& Audiloffs fyspon$ibilili&s for tha 8udil of the financial stètem8nÈs section of our report. We are independent of the charity In accordance wrth the ethlcal requirements that are relevant to our audit of the finanual statements in the UK, including the FRC'S Ethical Standard, and we have fU￿illed our other ethical responsibilil*s in accordance wrth these requirements. We believe that the audit evidence we have oblained is sufficAent and appropriate to provide a basi5 for our opinion. ConcluJlon• relatlnq to golng concern In auditing the financial statements. we have concluded that the Truslee's use of the going concem basis of accounting in the preparation of the financial slatemenis is appropriate. Based on the work we have perforned. we have not identified any m8leri81 vncertsintTes relating lo evenl$ or conditions that. individually or ¢olle¢tivety, may ¢a$t $ignifi¢ani doubt on the ¢h8rity'$ ability to continue as a going Concern for a period of 8t least Iwelve month$ Irom wh&n the fin¥noal $tslem¥nt$ aro gu¢hori$e4 for issue. Our responsibilities and the responsibilities of the trustees wth respect to going concern a￿ described in the relevant sections of this report. other InforrnatSon The other infomiation comprises the infomialion induded in the annual ￿pOrt other than the fjnanaal statements and our auditors report thereon. The trustees are responsible for Ihe other inforniation contained within the annual report. Our opinion on the financial statements does nol cover Ihe other infomiation and. except to the extent otherwise explicitly stated in our report. we do not express any form ol assurance conclusion thereon. Our responsibility is lo read the other inforrnabon and. in doing so. consider whether the other inforrn8tion is material inconsistent wrth the Iinancial statements 01 our knO￿edge obtained in the course of the audrt, or otherwise appears to be materialty misstated. If we Identrfy such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise lo a material misstatement in (he financial statements themselves. If. based on the work we have performed, we condude thal there is a mateiial misststement ol Ihis oiher infomiation, we are required to report thal fact. We h8ve nothing to report in this re9ard. Oplnlons on other matters prescrlbed by the Companles Act 2006 In our opinion. based on the work undertaken in the course of our audrt- the information given in the Trustee's report for the finanual year for which the financial statements are prepared, which includes the direciors, report prepared for the pu￿)seS ol company law, is consistent with the rinancial ststements.. and the directors, report induded wthin Ihe Truslee's report has been prepared in accordance with applicable legal requirements. PRESTON YOUTH ZONE LTD INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF PRESTON YOUTH ZONE LTD Mattèrs on whlch w• ar• requlred to r•port by eX￿pIlon In the light of th8 knovAedge and understanding of the tharity and its environment obtained in the cours8 of the audit, we have not identified material misstatements in the directors. report induded within the Ttustee's report. We have nothing to report in ￿spect of the follthwng mattets in relab.on to which the Companies Act 2006 requires us to report lo you rf, in our opinion.. 8dequ8te accountlng rectsrds havè not bèèn kept. or rètums 8dèquatè for our audit havè not bèèn rèceivèd from branches not visrted by us, or the financial statements are not in agreement wrth the accounbng records and retums.. or certain disclosures ol trustees. remuneration speufied by law are not made., or we have not received all the information and expl8n8tion5 we require for our 8udil.' or the trustees We￿ not entitled to p￿pa￿ the financial statements in accordance with the small companies gime and take advantage of the small companies, exemptions in preparing the Trustee's ￿port and from the requirement to Prepa￿ a strategic report. R•$pon$lbllltl•$ of tru$t••• As explained more fijlty in the statement of Trustee's responsibilities. the trustees. who are also the directors ol the charity for the purpose of company law. 8Te responsible for the prepara1￿n of Ihe financial statements and for being satisfied that they give a true and fair view. and for such internal Control as the truslees delemiine is necessary 10 enable th& preparation of financial statÈmenis that are free from matèri81 misstatement, whether dye to fraud oi error. In praparing thè financial stalemènts. thè trusleès ar¢ resptsnsib￿ for assessing th$ charity's ability to continue as a going concern, disdosing. as applicable. matters relaled to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate Ihe charitable company or to cease operations, or have no realistic allematNe but to do so. Audltorf$ rgJpon¥lbllllle8 lor Ihe audlt of the financlal 8tstements Our objectives are to obtain reasonable assurance aboul whether the financial sialements as a whole are free from material misslalement, whether due lo fraud or error. and lo issue an audilorfs report that includes our opinion. Reasonable assurance is a high level of assuran￿ but is not a guaranlee thal an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exisls. Misstatements can arise frorn fraud or èrror and are considered m8tèrial if, individualty or in the aggrègatè. they Could feasonabty be expe¢l¥d lo influ&n¢& the economic d¢¢i$ions ol us¢rs taken on Ihè basis of thesè financial statemènts. Irregularities, including fraud, are instances of non-compliance wilh laws an¢J regulations. We design procedures in line with our responsibilrties, outlined above. to delect material misstatements in respect ol irregularities. induding fraud. The extent to which our procedures are capable of detecting irregularitses, including fraud, is detailed below.. We obtained an understandin9 of Ihe le981 and regulatory framework applicable lo the comp8ny and the sector in which it operates and considered the wisk ol non- ¢ompli4n¢e wilh applieAble laws or fegulation$. Vve detemined that the following laws and regulations were most signfficant". the Companies Act 2006, the Charities Act 2011, Accounting and Reportsng by Chanties. Statement of Recommended Practice applicable to charities p￿paring their accounts in accordance vnth the Finanaal and Reporting Standard applicable to the United Kingdom and Republic of Ireland IFRS1021, those thal relate to safeguarding and child protection and those that relate to employment law. We designed audrt procedures to respond to Ihe risk. recJ)gnising that the risk of not detecting a material mi5Statement due to Iraud is higher than the risk of not detecting one resulting from error. as fraud may involve deliberate conc88lment, for example, forgery or intenbonal rnisrepresentations, or through collusion. We obtained an understanding of how the company is comptying with those legal and iegulatory frameworks by making enquiries of the management. Vve corroborated our enquiries through our ￿vieW of board minutes. Our tests also included agreeing the finanual statements disclosures to undertying supporting documentation. There are inherent limitations in the audit procedures described above and, the further removed non Net cash generated from flnanclng actly1￿e8 Net Incrnase Sn cash and cash equlvalents 1.707.112 963,781 Cash and ¢8$h equivalents at beginning of year 963.781 Cash and ¢o$h ¢qulv•l•nts •t •nd of y•or 2,670.893 963,781 12_ PRESTON YOUTH ZONE LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Aecountlng pollel•s Charfty Snforniatlon Preston Youth Zone Ltd is a private company limited by guarantee incorpofated in England and Wales. The registered office is Onside Youth Zones, Aln"a, Spa Road. Bomon, BL14AG. 1.1 Basis of preparation The financial statements havè beèn prepared in accordance with thè charity's goveming document, the Companies Act 2006, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recomrnended Practice applicable to charities preparing their accounls in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. The charity is a Public Benefit Entrty as defined ty FRS 102. The financial $tatemenl$ a￿ p￿pared in slewling, whicj) is the lunth'onal curnency of th¥ ¢harty. Monetsry amounts in these financial statements are rounded to the nearest £. The financial statements have been prePa￿d under the hISt￿lCa1 cost convention. The principal accounting policies adopted a￿ set out below. 1.2 Golng concern At the time of approving the financial slalements. the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the loreseeable lulure. Thus the trustees continue to adopt the going concem basis of accounbng in preparing the financsal staternents. 1.3 Charttabl• funds Unrtrstri¢led lun¢y8 ar& availablo fcrf use at the dis¢r&tion of Ihe Iwsl¢e$ in lurtheran¢e of their ¢harit8ble objectives. Reslrieled lunds a￿ subject lo spe¢ffi¢ ￿nd1110ft$ by donors or grantors as lo how they May be used. Th& purposes and u$e$ of the restricted lund$ arts set out in the note$ l(tr the financial statements. Endowment fvnds are subject lo specific condition8 by donors that the capital musl be maintained by the ¢h8rity. 1.4 Income Income is recognised when the charity is legalty enlrtled to it after any perfomance conditions have been met, the amounts can be measuied reliabty, and rt bs probable thal income will be received. C8sh donations are recognised on receipt. othei donats.ons are recognised once the charty h8s been nots'fied of the donation, unless perfonnance condth.ons require deferral of the amount. Income tax recoverable in lation to donations re￿Ned vnder GfftAid or deeds ol covenant is recognised at the time of the donation. Legacios are recognised on recèipt or olherwse rf the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. 13- PRESTON YOUTH ZONE LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continuedl 1.5 Exp•ndltur• Eypenditure is recognised once Ihere is a legal or constructive obligation to Iransfer economic benefit to a third paty. r( is probable that a transfer of e￿nOMiC benefits will be iequired in settlement, and the amount of the obligation can be rneasured reli8bty. Expenditure is dassified by athvty. The costs of each adivrty are made up of the total of direct costs and shared costs. including support costs involved in undertaking each acbvity. Direcl costs attributable to a single activity are allocated directy to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned befvleen those activitie5 on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent. and depreciation charges are alk)raleiJ on the portion of the assel's us&. 1.6 Tanglble Ilxed asJet• Tangible fixed assets are inrtialty measured at cost and subsequenty measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to vnile off th& ¢ost or valuation of assets less their re$ldual value$ over thelr useful lives on the following bases.. Computer equipment 33% $lraighl lin¢ The propety is currenlty under ¢on8lructKin 8nd will not be deprtiualed until ¢on$tru¢titsn has been Completed. The gain or loss arising on the disposal of an asset is determined as the difference be￿een the sale proceeds and the carrying value of the as5el. ancl is recognised in the slalement of financial activrties. 1.7 Impalrnient of Ilxed assets At each reporting end date, the chanty reviews the carrying amounts of rts tan9ible assets to detem)ine whether there is any indication that those assets have suffered an impaimient loss. If any such indication exists, the recoverable amount of the asset Is esbmated in order to detemine the extent ol the impaimient loss lif any). 1.8 Cash and cash equlval•nts C8sh and cash equivalents include cash in hand. dep95rt5 held at call wi¢h banks. Other short-terrn liguid investrnenls wth ori9inal malurtties of IhTee monlhs or less. and bank overdiafts. Bank overdr8fts 8re shown wrthin borro¥wngs in current liabilrties. 1.9 Flnanclal Instrum•nts Financial instrurnenls are rewgnised in Ihe th8nty'$ balance Sheet when Ihe becomes party lo the contractual provisions of the instrument. Financial assets and liabilities a￿ offset. wilh the net amounts p￿sented in the financial statements, when there is 8 legalty enforceable right lo set off the recognised amounts and there is an intention to settle on a net basis or to realise Ihe asset and seiye Ihe liability simuttaneousty. Basic financiTal èssets Basic finanrial assets. whtch indude debtors and cash and bank balances. are initialty measured at tr8ns8clion price including transaction costs and are subsequentty carried 81 amortised cost using the effective interest method unless the arrangement constrtutes a ffinanang transaction. where the transaction is measured at the present value tsf the firture receipt5 discounted at a market rate of interest. Finanaal assets classified as receivable wrthin one year a￿ not am0￿"sed. 14_ PRESTON YOUTH ZONE LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continuedl Basle finanelal Ilabilltiès Basic finanrial liabilities. induding credrtors and bank loans are inrtially recognised at transaction price unless the arrangement constrtutes a financing transaction. where the debt instwment is measured at the present V81ue of the future payment5 discounted at a market rate of inlere51. Fin8nryal li8bilities classified 85 Payable wrthin one year are not amortised. Debt instruments are subsequentty carried at amortised cosl, using the effective interest rate method. Trade creditors are obligations to pay lor goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable 8re dassified as current liabilities if payment is due wlhin one year or le$5. If not. they are presented a5 non-current liabilities. Trade creditor5 are recogni$ed inth'ally 81 transactKJn price and subsequentty measure(1 at amortised cost usin9 the effectsve interest method. D•rncognitlon of financlal liabiliti•s Financial liabilities are derecogni5ed whtrn thtr Charty's ¢ontr8dual oblig81ion$ expire or a￿ discharged or ¢8ncelled. 1.10 Employe• b•n•fit8 The cost of any unused holiday trnlrflemenl is recooni8ed in thtr period in vthi¢h the employee's se￿￿8 arts received. Termination beneffts are recognlsed immediately as an expense when the charity Is demonstrably cornm￿ted to temiinate the employment of an employee or to provide terniinalion beneffts. 1.11 Retlrem•nt benefits Payments to defined contribulK)n retirement benefft schemes ara charged as an expense as they fall due. crttlcal accoUn￿n9 estlmates and judgements In the application of the charity'5 accounling policie5. the truslee5 are reqvired to make judgements. eslirnales and assumptions about the carrying arnovnt of a55els and liabilrties thal are not readily 8pp8renl from other sourc8$. Thè estimates and a$sociatÈd assumptions are based on historical ¢xp¢rien¢4 and oth¥r fa¢tor$ that are considered to be rèlevant. Actual resuns may drffer from Ihese estimates. The estimates and undertying assumptions a￿ reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the eslimale is revised where Ihe revision affects only that period. or in the period ol the revision and ftjture peiiod5 where the revision affects bolh current and future peri¢xls. Ineomè from donations and l•gael•8 Unrestrlcted Restrlcted funds fund¥ 2025 2025 Total Unrestrlcted Restrlcted fund8 fund¥ 2024 2024 Total 2025 2024 Donations and grfts Gr8nts 72,309 77,309 5,75B,997 5.758.997 347,69S 347,695 1.179,500 1,179,500 72,309 5,763,997 5,836,306 347,695 1,179,500 1,527,195 15- PRESTON YOUTH ZONE LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Ineom• from othèrtradlng actlvltl•$ Unrestricted Unrestrlcted funds funds 2025 2024 Fundraising events 230 1,779 Incom• from Invegtment• Unre8tricted Unre8trlcted fund• fund8 2025 2024 Interest receivable 932 2,192 Exp•ndltur• on rnlslng lund• R••trtct•d fund• 2025 Rostrlctod fund8 2024 Fundralslng and publlclty Staging fundraising events 348 16- PRESTON YOUTH ZONE LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Exp•ndltur• on charltsbl• aetlvltl•s Charltable Activities o$t 2025 Charftable Activities o$t 2024 Support Costs Staff costs Depreciation and irnpainnent Office costs Insurance Other staff costs Audit lees Accountanry costs Mad(eting Onside management charges Young People Developm8nt Group activty costs Bank charges Prernises costs Con$utt8n¢y ¢o$l$ 163,320 1.709 28,941 2,634 18,387 5,950 3,430 14,264 407.444 2,694 177 28,490 10,277 18,996 254 13,582 620 1,916 4,250 2.450 8,643 120.462 1,326 209 683,717 172,708 Analy•l8 by fund unres1ri￿ed luntl$ Restricted funds 4,526 168,182 683,717 683,717 172,708 Included withln support costs are £15,630 of govemance costs12024.' £7.284}. Net movement In funds 202S 2024 The nel movement in fvnd$ is slated after ¢har9ingllcre(Iiting1= Fees payable for the audrt of the charty's ffinancial statements Depreriation of owned tangible fixed assets 5,950 1.709 4,250 254 17_ PRESTON YOUTH ZONE LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Employ••s The average monthty number of employees during the yearwas: 2025 Number 2024 Number Adrninistration Delivery Totsl Employment costs 2025 2024 Wages and salaries Swal security costs Other pension costs 151,499 10,556 1,265 18,669 327 163,320 18,996 Key management personnel are consitJered lo be the Chief Executive. The lolal amount of employee benefits paid to the key managemenl personnel for the period was £62.5￿. The number of ernployees whose annual reffluneral￿n was more than £60.IXJO is as follows.. 2025 Numb•r 2024 Numb&r £80,000- £70,000 18- PRESTON YOUTH ZONE LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 10 Tanglblè (lx￿ ass•ts Pr•ston Youth Zonfr Buildlng undor ¢or8tnJ¢Uon Computfrr equlpment Totsl C￿t At 1 April 2024 Additions 1.008.021 4,977,232 4.282 1.012,303 1,535 4,978,767 At 31 March 2025 5,985.253 S,817 S,991,070 OepreclatSon and Impalrnient At 1 April 2024 Depreciabon charged in the year 254 1.709 254 1,709 At 31 March 2025 1.963 1.963 Carrylng amount At 31 March 2025 S.985.253 3.854 5.989,107 At 31 March 2024 1.008.021 4.028 1.012,049 Preston Youth Zone has entered into a 125 year lease wth Preston Cty Council to lease the land on which the building is being constructed. 11 Debtors 2025 2024 Amounts f•lllng du• wbthln on• y••r= Othèr dabtors Prepayments and accrued income 97.721 54.310 275,846 196 152.031 276.042 12 Credltors.. amounts falllng due wlthln one year 2025 2024 other t8x8tion 8nd so