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2021-03-31-accounts

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

Registered number: 00702712 Charity number: 201653

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED

(A company limited by guarantee)

GOVERNORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Charity, its Governors and advisers 1 - 2
Governors' report 3 - 8
Independent auditors' report on the financial statements 9 - 13
Statement of financial activities 14
Balance sheet 15 - 16
Statement of cash flows 17
Notes to the financial statements 18 - 41

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Governors

Miss C Mortlock, Chair Mr D M Gibson Mrs J Smith Miss V Gray Ms L Hitman Mr D Smith Mr M Armstrong (appointed 18 December 2020) Mr R Darsley (resigned 11 June 2020) Mrs L Adams (resigned 31 July 2020)

Company registered number

00702712

Charity registered number

201653

Registered office

Jesmond House Clayton Road Jesmond Newcastle upon Tyne NE2 1UJ

Company secretary

Mr P Nielsen

Independent auditors

Ryecroft Glenton Chartered Accountants and Statutory Auditors 32 Portland Terrace Newcastle upon Tyne NE2 1QP

Bankers

National Westminster Bank Northumberland Street Newcastle upon Tyne NE2 1QP

Page 1

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS GOVERNORS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Solicitors

DWF LLP Great North House Sandyford Road Newcastle upon Tyne NE1 8ND

Investment Managers

Cazenove 1 London Wall Place London EC2Y 5AU

Page 2

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

GOVERNORS' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Governors present their annual report together with the audited financial statements of the Charity for the year 1 April 2020 to 31 March 2021. The Annual report serves the purposes of both a Governors' report and a directors' report under company law. The Governors confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

Policies and objectives

In setting objectives and planning for activities, the Governors have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

The objectives of the company are the relief of need, hardship and distress by the provision of good, clean, safe and affordable accommodation and other facilities for young people of either sex and the advancement of the Christian religion. The company is a registered social landlord in the management and administration of Clapham House, John Dobson Street, Newcastle upon Tyne, NE1 8YW and Jesmond House, Clayton Road, Newcastle upon Tyne, NE2 1UJ.

Main activities undertaken to further the Charity's purposes for the public benefit

The Governors have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing their objectives and activities and in planning future activities. The Governors are satisfied that the principles of public benefit have been and will continue to be addressed in past and future activities of the company.

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance

Value for money

In accordance with the Value for Money Standard introduced by the Regulator of Social Housing in 2018 we set out below the charitable company's performance by reference to the metrics set by the Regulator which seek to measure and monitor economy, efficiency and effectiveness:

1 - Reinvestment %

Actual Expected Actual 2021 2021 2020 Nil % Nil % Nil %

Commentary - the reinvestment percentage is calculated by reference to works to the existing properties, divided by the net book value of housing properties at deemed cost. No new properties were developed or acquired and there is no capitalised interest.

2 - New supply %

Nil % Nil %

Commentary - The Governors have no plans to increase the number of social or non-social housing units.

3 - Gearing %

-00.0% -00.0% -00.0%

Commentary - The charitable company has no debt and therefore has no gearing. This is derived from its liquid resources divided by the net book value of housing properties at deemed cost. The Governors have no intention to borrow.

4 - Interest cover %

Nil % Nil % Nil %

Commentary - The charitable company has no borrowing and the Governors have no intention to borrow.

5 - Headline social housing cost £3,500 £3,500 £3,500

Commentary - the social housing cost has remained static and is expected to continue to do so. The Governors continue to refurbish the properties on a cyclical basis, with annual spend similar to historic levels.

6 - Operating margin % 28.9% 30.0% 32.0% Commentary - operating margins have been affected by Covid as a result of the decision by Governors not to fill vacated accommodation in an effort to protect remaining residents.

7 - Return on capital employed % 2.0% 3.0% 5.4% Commentary - return on capital has been affected by Covid. The Governors expect this to improve in the coming year.

The Governors consider that the facilities offered by the charitable company to be unique in the North East and there are no meaningful comparisons by way of benchmarking available.

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Review of activities

Clapham House

Clapham House incurred a deficit in the year of £87,000 (2020 - surplus £61,000) before allocation of central overheads. The incidence of voids continues to be of concern to the Governors, though since the year end there are signs that there has been considerable improvement in occupancy rates. Nevertheless the Governors continue to explore options for the future of Clapham House.

Jesmond House

Jesmond House provided a surplus in the year of £129,000 (2020 - surplus £79,000) before allocation of central overheads, despite an increase in the level of voids as a result of the Governors' decision to protect remaining residents from Covid when vacancies arose.

Central Overheads

Net central overhead costs after miscellaneous income (including Covid related support Government grants of £16,777) amounted to £92,198 (2020 - £95,701).

Investment policy and performance

The Governors continue to place surplus funds in an investment portfolio managed by Cazenove Capital to improve on the returns generated for the benefit of the charitable purpose. The portfolio shows an unrealised valuation surplus as at 31 March 2021 of £161,125 (2020 - deficit £48,071) which reflects the performance of stockmarkets over the year. The Governors are pleased to note that the portfolio continues to show surplus on valuations since then.

Financial review

Going concern

After making appropriate enquiries, and considering the funds invested and liquid funds in hand, the Governors have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Reserves policy

The Governors consider the needs of its residents as requiring a long-term commitment from the company. The reserve policy is to hold funds to allow the charitable company to continue for a period of 12 months even if its income decreases. At 31 March 2021, the charitable company had total funds of £6,971,520, of which £1,661,930 was unrestricted and £5,309,590 is restricted (relating to the freehold properties held for the charitable purpose). At the year end, the charitable company had a defined benefit pension deficit liability of £161,000. The free reserves will continue to accumulate expected surpluses in future years for the benefit of the charitable purpose.

Financial risk management objectives and policies

All activities are subjected to budgetary control and monitored regularly by the Governors. Anticipated variances are authorised in advance of expenditure being committed.

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management

Constitution

North Eastern Y.W.C.A. Trustees Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.

The principal object of the charitable company is to provide the relief of need, hardship and distress by the provision of good, clean, safe and affordable accommodation and other facilities for young people of either sex and the advancement of the Christian religion.

Methods of appointment or election of Governors

The management of the Charity is the responsibility of the Governors who are elected and co-opted under the terms of the Memorandum of Association.

The management of the charitable company is the responsibility of the Governors. Any current Governor is entitled to nominate a prospective Governor, appointments being made by a simple majority of current Governors at a Governors' meeting.

Policies adopted for the induction and training of Governors

Governors' attention is brought to support material and guidance provided by Charity Commission, to which they are continuously encouraged to refer.

The Board of Governors

At 31 March 2021, the Board comprised 7 members, led by the Chair, Caroline Mortlock; the Board controls the charitable company’s strategic direction and continuously review its operating and financial position.

The Board of Governors recognises that good governance is integral to the delivery of quality services and considers that the charitable company complies with the National Housing Federation Code of Governance in all material aspects.

Organisational structure and decision-making policies

The Board has an established governance framework, which encourages all members to bring an independent judgement to bear on issues of strategy, performance, resources (including key appointments) and standards of conduct.

The Board is supplied with timely and relevant information to enable it to discharge its duties. Board papers are normally distributed at least a week in advance of the relevant meeting, and the papers are sufficiently detailed to enable the members to obtain a thorough grasp of the company’s management and financial performance. The Board’s terms of reference make provision for it to receive independent professional advice to enable it to carry out its duties.

The Board met 6 times during 2020/21.

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

Risk management

The Governors have reviewed the major risks to which the charity is exposed and continue to monitor the arrangements and systems in place to mitigate those risks.

The termination of contractual relationships with the universities in Newcastle has meant that the charity now has to manage lettings directly with occupants. The market place is very competitive as additional space has become available, which has had an impact on pricing. The Governors manage this by ensuring that their offering is attractive and cost effective to maximise takeup.

The charity is exposed to regulatory risks non-compliance of which may affect its ability to operate. These are mitigated by constant monitoring by the Governors through their regular meetings and reports by the Senior Management Team.

The charity is also exposed to investment risk. This is mitigated by the employment of Cazenove Capital as investment manager on a full discretionary management basis.

Internal controls

The Governors have established internal controls designed to safeguard assets, manage the risk of fraud or misstatement and generally to assist with proper governance. They review these controls on an annual basis to satisfy that they are complete and effective.

Plans for future periods

The Governors continue to monitor the provision of social accommodation at both houses, and in particular Clapham House. At present there are no plans to change any of the services provided for the charitable purpose.

Members' liability

The Members of the Charity (who are the Governors) guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up while he/she is a member or within one year after he/she ceases to be a member for the debts and liabilities contracted before he/she ceases to be a member.

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Statement of Governors' responsibilities

The Governors (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Governors' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare financial statements for each financial year. Under company law, the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Governors at the time when this Governors' report is approved has confirmed that:

Auditors

The auditors, Ryecroft Glenton, have indicated their willingness to continue in office. The designated Governors will propose a motion reappointing the auditors at a meeting of the Governors.

Approved by order of the members of the board of Governors on 28 September 2021 and signed on their behalf by:

Miss C Mortlock (Chair of Trustees)

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED

Opinion

We have audited the financial statements of North Eastern Y.W.C.A. Trustees Limited (the 'charity') for the year ended 31 March 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 United Kingdom, including the Financial Reporting Council'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 Governors' 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 Governors with respect to going concern are described in the relevant sections of this report.

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Governors are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion 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 our 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 Governors' report.

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

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (CONTINUED)

Responsibilities of trustees

As explained more fully in the Governors' responsibilities statement, the Governors (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 Governors 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 Governors 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 Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (CONTINUED)

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the governors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Detlev Anderson (Senior statutory auditor)

for and on behalf of

Ryecroft Glenton

Chartered Accountants and Statutory Auditors 32 Portland Terrace Newcastle upon Tyne NE2 1QP

29 September 2021

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Charitable activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net (expenditure)/income before net
gains/(losses) on investments
Net gains/(losses) on investments
Net income/(expenditure)
Transfers between funds
18
Net movement in funds before other
recognised gains/(losses)
Other recognised gains/(losses):
Actuarial (losses)/gains on defined
benefit pension schemes
25
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2021
£
-
-
-
-
-
-
-
-
-
-
(112,970)
(112,970)
-
(112,970)
5,422,560
(112,970)
5,309,590		 Unrestricted
funds
2021
£
985,434
10,586
68,200
1,064,220
11,015
1,103,252
1,114,267
(50,047)
161,125
111,078
112,970
224,048
(92,000)
132,048
1,529,882
132,048
1,661,930		 Total
funds
2021
£
985,434
10,586
68,200
1,064,220
11,015
1,103,252
1,114,267
(50,047)
161,125
111,078
-
111,078
(92,000)
19,078
6,952,442
19,078
6,971,520		 Total
funds
2020
£
1,177,646
9,342
10,773
1,197,761
6,901
1,146,489
1,153,390
44,371
(48,071)
(3,700)
-
(3,700)
110,000
106,300
6,846,142
106,300
6,952,442

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 18 to 41 form part of these financial statements.

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee) REGISTERED NUMBER: 00702712

BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Net assets excluding pension liability
Defined benefit pension scheme liability
25
Total net assets
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds		 44,267
629,353
673,620
(124,666)		 2021
£
5,461,520
1,122,046
6,583,566
548,954
7,132,520
7,132,520
(161,000)
6,971,520
5,309,590
1,661,930
6,971,520		 61,450
965,874
1,027,324
(132,124)		 2020
£
5,582,154
561,088
6,143,242
895,200
7,038,442
7,038,442
(86,000)
6,952,442
5,422,560
1,529,882
6,952,442

The Governors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Governors on 28 September 2021 and signed on their behalf by:

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee) REGISTERED NUMBER: 00702712

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021

Miss C Mortlock Mr D M Gibson (Chair of Trustees) (Trustee)

The notes on pages 18 to 41 form part of these financial statements.

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Note
Cash flows from operating activities
Net cash used in operating activities
21
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash used in investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
22,23
The notes on pages 18 to 41 form part of these financial statements		 2021
£
69,664
10,586
(16,938)
366,646
(766,479)
(406,185)
-
(336,521)
965,874
629,353		 2020
£
132,055
9,342
(16,250)
71,926
(73,963)
(8,945)
-
123,110
842,764
965,874

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

The company is a company limited by guarantee. The company is registered in England & Wales and its company registration number is 00702712. The charity is registered with the Charity Commission and its registered number is 201653.

It is also registered under the Housing and Regeneration Act 2008 and its registered number is H2168.

Its registered office address is Jesmond House, Clayton Road, Newcastle upon Tyne, NE2 1UJ.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

North Eastern Y.W.C.A. Trustees Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The Governors have considered the potential financial effects of the Covid-19 on the availability of reserves and cash and upon the going concern basis of preparation of the financial statements. Whilst both facilities have suffered higher than normal vacancies during this period, nevertheless the charitable company has sufficient reserves and cash to sustain it through any future periods of control measures imposed by HM Government or local authorities. The Governors are comfortable that the resources available allows them to prepare these financial statements on the basis that the Charitable Company continues to be a going concern.

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity.

Page 18

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.4 Expenditure (continued)

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities incorporating income and expenditure account.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Page 19

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.

2.9 Debtors

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

2.10 Cash at bank and in hand

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

2.11 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.12 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.

2.13 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

Page 20

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.14 Pensions

The Charity operates a defined benefits pension scheme and the pension charge is based on a full actuarial valuation dated 30 September 2017. A valuation at 30 September 2020 has not yet been made available.

2.15 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Governors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

2.16 Works to properties and housing furniture replacement

Costs of works to properties and replacing housing furniture are charged to the statement of financial activities in the year of expenditure unless the expenditure results in an enhancement of the economic benefit in excess of that of the assets improved or replaced.

Page 21

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgment:

Freehold properties valued at deemed cost

The Governors have relied upon the transitional exemption available in Section 35.10 (d) FRS 102 in respect of the use of fair value of freehold properties as deemed cost at the date of transition to FRS 102 from previous generally accepted accounting practice. The fair value has been based on a valuation estimate of the two freehold properties concerned, undertaken by an independent and suitably qualified valuer.

Depreciation

Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as maintenance programmes are taken into account. Residual values consider matters such as future market conditions, the remaining estimated life of the asset and the discount required to apply to cash flows on estimated disposal values to calculate their net present values.

Defined Benefit Pension Scheme

The company has obligations to pay pension benefits to certain employees. The cost of those benefits and the present value of the obligations depend on a number of factors, including life expectancy, salary increases, asset valuations, and the discount rate used on certain investments. Estimates are required in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

4. Income from charitable activities

Unrestricted Total
funds funds
2021 2021
£ £
Rental income and service charges 985,434 985,434

Page 22

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. Income from charitable activities (continued)

Rental income and service charges
Income as reported includes:		 Unrestricted
funds
2020
£
1,177,646
2021		 Total
funds
2020
£
1,177,646
2020
£ £
Maximum rent receivable 1,444,015 1,416,237
Less: Voids (458,581) (238,591)
985,434 1,177,646
The units of accommodation are: 2021 2020
Number Number
Studios 18 18
Cluster flats 124 124
Single rooms 84 84
226 226
Investment income
Unrestricted
funds
2021
£
Income from listed investments
10,535
Investment income - interest received
51
10,586		 Total
funds
2021
£
10,535
51
10,586

5. Investment income

Page 23

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

5. Investment income (continued)

Income from local listed investments
Investment income - interest received		 Unrestricted
funds
2020
£
9,200
142
9,342		 Total
funds
2020
£
9,200
142
9,342

6. Other incoming resources

Unrestricted
funds
2021
£
Rent received from third parties
10,804
Government support through CJRS
16,777
VAT refunds re prior years
40,619
68,200
Unrestricted
funds
2020
£
Rent received from third parties
10,773		 Total
funds
2021
£
10,804
16,777
40,619
68,200
Total
funds
2020
£
10,773

Page 24

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Investment management costs

Unrestricted
funds
2021
£
Investment management fees
11,015
Unrestricted
funds
2020
£
Investment management fees
6,901
Analysis of expenditure on charitable activities
Summary by fund type
Unrestricted
funds
2021
£
Charitable activities
1,103,252
Unrestricted
funds
2020
£
Charitable activities
1,146,489		 Total
funds
2021
£
11,015
Total
funds
2020
£
6,901
Total
funds
2021
£
1,103,252
Total
funds
2020
£
1,146,489

8. Analysis of expenditure on charitable activities Summary by fund type

Page 25

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Analysis of expenditure by activities

Charitable activities
Charitable activities
Analysis of direct costs
Pension finance costs
Staff costs
Depreciation
Catering
Water rates
Utilities
Repairs and maintenance
Insurance
Cleaning and security
Refurbishment and furniture replacement
Other estate costs
Bad debts
Managed internet		 Activities
undertaken
directly
2021
£
757,362
Activities
undertaken
directly
2020
£
798,634		 Support
costs
2021
£
345,890
Support
costs
2020
£
347,855
Charitable
activities
2021
£
2,000
276,440
115,000
49,095
19,487
118,759
71,440
28,854
36,491
24,965
7,703
778
6,350
757,362		 Total
funds
2021
£
1,103,252
Total
funds
2020
£
1,146,489
Total
funds
2021
£
2,000
276,440
115,000
49,095
19,487
118,759
71,440
28,854
36,491
24,965
7,703
778
6,350
757,362

Page 26

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Analysis of expenditure by activities (continued)

Analysis of direct costs (continued)

Pension finance costs
Staff costs
Depreciation
Catering
Water rates
Utilities
Repairs and maintenance
Insurance
Cleaning and security
Refurbishment and furniture replacement
Other estate costs
Bad debts		 Charitable
activities
2020
£
4,000
273,994
115,000
54,877
21,502
111,316
131,034
27,721
27,566
22,097
7,020
2,507
798,634		 Total
funds
2020
£
4,000
273,994
115,000
54,877
21,502
111,316
131,034
27,721
27,566
22,097
7,020
2,507
798,634

Analysis of support costs

Staff costs
Depreciation
Equipment leasing
Telephone and postage
Publicity, printing and stationery
Travel expenses
Office expenses
Auditors remuneration
Legal and professional fees		 Charitable
activities
2021
£
249,868
22,572
1,525
2,019
11,713
995
27,274
9,100
20,824
345,890		 Total
funds
2021
£
249,868
22,572
1,525
2,019
11,713
995
27,274
9,100
20,824
345,890

Page 27

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff costs
Depreciation
Equipment leasing
Telephone and postage
Publicity, printing and stationery
Travel expenses
Office expenses
Auditors remuneration
Legal and professional fees
10.
Auditors' remuneration
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above
11.
Staff costs
Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 Charitable
activities
2020
£
257,536
22,342
5,008
7,268
13,535
955
20,776
8,000
12,435
347,855
2021
£
9,100
5,600
2021
£
482,317
27,075
16,916
526,308		 Total
funds
2020
£
257,536
22,342
5,008
7,268
13,535
955
20,776
8,000
12,435
347,855
2020
£
8,000
9,212
2020
£
482,332
30,681
18,517
531,530

Page 28

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11. Staff costs (continued)

The average number of persons employed by the Charity during the year was as follows:

Management
Maintenance and domestic		 2021
No.
8
19
27		 2020
No.
8
19
27

No employee received remuneration amounting to more than £60,000 in either year.

The total employee benefits of the key management personnel of the Charity was £77,679 (2020: £75,867).

12. Governors' remuneration and expenses

During the year, no Governors received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, expenses totalling £ 88 were reimbursed or paid directly to 1 Governor (2020 - £59 to 1 Governor) . The expenses reimbursed related to travel expenses incurred.

Page 29

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Tangible fixed assets

Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
5,750,000
-
5,750,000
230,000
115,000
345,000
5,405,000
5,520,000		 Plant and
machinery
£
4,320
3,028
7,348
3,960
713
4,673
2,675
360		 Office
equipment
£
198,119
13,910
212,029
136,325
21,859
158,184
53,845
61,794		 Total
£
5,952,439
16,938
5,969,377
370,285
137,572
507,857
5,461,520
5,582,154

The freehold properties were valued in March 2015 as follows: Clapham House was valued at £3,750,000 and Jesmond House at £2,000,000. The valuations were performed by Johnson Tucker, Chartered Surveyors on an existing use open market basis.

Had the properties been accounted for at cost and depreciated, the net book value at 31 March 2021 would have been £2,452,619 (2020: £2,522,747).

Page 30

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Fixed asset investments

Cost or valuation
At 1 April 2020
Additions
Disposals
Revaluations
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Listed
investments
£
544,987
751,089
(366,646)
161,125
1,090,555
1,090,555
544,987		 Other fixed
asset
investments
£
16,101
15,390
-
-
31,491
31,491
16,101
2021		 Other fixed
asset
investments
£
16,101
15,390
-
-
31,491
31,491
16,101
2021		 Total
£
561,088
766,479
(366,646)
161,125
1,122,046
1,122,046
561,088
2020
£ £
0.125% UK Treasury Stock 22.03.2026 - 30,585
Vontobel SICAV 24 Absolute Returns - 28,036
Lyxor US TIPS UCITS D-GBP Distribution - 30,431
Schroder Diversified Alternative assets-S-Distribution 55,383 -
55,383 89,052

Page 31

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Debtors

Due within one year
Arrears of rent and service charges
Other debtors
Prepayments and accrued income		 2021
£
12,288
7,531
24,448
44,267		 2020
£
53,437
67
7,946
61,450

16. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2021
£
38,660
11,597
52,985
21,424
124,666		 2020
£
17,447
24,684
72,148
17,845
132,124

17. Financial instruments

2021 2020
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 1,090,555 544,987

Financial assets measured at fair value through income and expenditure comprise listed investments.

Page 32

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Statement of funds

Statement of funds - current year

Balance at 1
April 2020
£
Unrestricted
funds
General funds
1,442,136
Extraordinary
repairs
173,746
Pension reserve
(86,000)
1,529,882
Restricted
funds
Revaluation
reserve
2,494,919
Housing
association grant
2,927,641
5,422,560
Total of funds
6,952,442		 Income
£
Expenditure
£
1,064,220
(1,061,076)
-
(37,191)
-
(16,000)
1,064,220
(1,114,267)
-
-
-
-
-
-
1,064,220
(1,114,267)		 Transfers
in/out
£
(40,030)
120,000
33,000
112,970
(51,977)
(60,993)
(112,970)
-		 Gains/
(Losses)
£
161,125
-
(92,000)
69,125
-
-
-
69,125		 Balance at
31 March
2021
£
1,566,375
256,555
(161,000)
1,661,930
2,442,942
2,866,648
5,309,590
6,971,520

Page 33

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
General funds
Extraordinary
repairs
Pension reserve
Restricted
funds
Revaluation
reserve
Housing
association grant
Total of funds		 Balance at
1 April 2019
£
1,273,575
143,037
(106,000)
1,310,612
2,546,896
2,988,634
5,535,530
6,846,142		 As restated
Income
£
1,197,761
-
-
1,197,761
-
-
-
-		 As restated
Expenditure
£
(1,044,099)
(89,291)
(20,000)
(1,153,390)
-
-
-
(1,153,390)		 As restated
Transfers
in/out
£
62,970
120,000
(70,000)
112,970
(51,977)
(60,993)
(112,970)
-		 As restated
Gains/
(Losses)
£
(48,071)
-
110,000
61,929
-
-
-
61,929		 Balance at
31 March
2020
£
1,442,136
173,746
(86,000)
1,529,882
2,494,919
2,927,641
5,422,560
6,952,442

Page 34

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Statement of funds (continued)

Unrestricted funds:

Extraordinary repair fund:

These are funds set aside for expenditure on the properties. The Governors have agreed that the reserve may be used for either or both of the properties in relation to future major repairs.

General funds:

These are 'free reserves' after allowing for the extraordinary repair fund and pension reserve.

Restricted funds:

(a) Revaluation reserve - representing the surplus on revaluation of the two properties owned by the Charity as reduced by the revaluation element of the accumulated depreciation charge on the properties.

(b) Housing association grant - this represents monies received in relation to the build and development of Clapham House. Under the revised Housing SORP, such grants under the performance model are recognised as income.

19. Summary of funds

Summary of funds - current year

Balance at 1
April 2020
£
General funds
1,529,882
Restricted funds
5,422,560
6,952,442		 Balance at 1
April 2020
£
General funds
1,529,882
Restricted funds
5,422,560
6,952,442		 Income
£
Expenditure
£
1,064,220
(1,114,267)
-
-
1,064,220
(1,114,267)
As restated
Income
£
As restated
Expenditure
£
1,197,761
(1,153,390)
-
-
1,197,761
(1,153,390)		 Transfers
in/out
£
112,970
(112,970)
-
As restated
Transfers
in/out
£
112,970
(112,970)
-		 Gains/
(Losses)
£
69,125
-
69,125
As restated
Gains/
(Losses)
£
61,929
-
61,929		 Balance at
31 March
2021
£
1,661,930
5,309,590
6,971,520
Balance at
31 March
2020
£
1,529,882
5,422,560
Summary of funds - prior year
General funds
Restricted funds		 Balance at
1 April 2019
£
1,310,612
5,535,530
6,846,142
6,952,442

Page 35

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

20. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Provisions for liabilities and charges
Total
Analysis of net assets between funds - prior year
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Provisions for liabilities and charges
Total		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
5,309,590
151,930
-
1,122,046
-
673,620
-
(124,666)
-
(161,000)
5,309,590
1,661,930
Restricted
funds
2020
Unrestricted
funds
2020
£
£
5,422,560
159,594
-
561,088
-
1,027,324
-
(132,124)
-
(86,000)
5,422,560
1,529,882		 Total
funds
2021
£
5,461,520
1,122,046
673,620
(124,666)
(161,000)
6,971,520
Total
funds
2020
£
5,582,154
561,088
1,027,324
(132,124)
(86,000)
6,952,442

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Dividends, interests and rents from investments
Decrease in debtors
Decrease in creditors
Defined benefit pension scheme finance cost
Defined benefit pension scheme cost less contributions payable
Net cash provided by operating activities
22.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
23.
Analysis of changes in net debt
At 1 April
2020
£
Cash at bank and in hand
965,874
965,874		 2021
£
111,078
137,572
(161,125)
(10,586)
17,183
(7,458)
2,000
(19,000)
69,664
2021
£
629,353
629,353
Cash flows
£
(336,521)
(336,521)		 2020
£
(3,700)
137,342
48,071
(9,342)
2,273
(30,589)
4,000
(16,000)
132,055
2020
£
965,874
965,874
At 31 March
2021
£
629,353
629,353

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

24. Contingent liabilities

There is a contingent liability to repay the Housing Association Grant of £3,049,627 in certain circumstances including the disposal of the properties in respect of which the grant was received.

There were no other material contingent liabilities at 31 March 2021 (2020: £nil).

25. Pension commitments

The Charity operates a defined benefit pension scheme.

The company participates in the Social Housing Pension Scheme (the Scheme), a multi-employer scheme which provides benefits to some 500 non-associated employers. The Scheme is a defined benefit scheme in the UK.

The Scheme is subject to the funding legislation outlined in the Pension Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The last triennial valuation of the Scheme for funding purposes was carried out as at 30 September 2017. This valuation revealed a deficit of £1.522million. A recovery plan has been put in place with the aim of removing this deficit by 30 September 2026. The Scheme's website indicates that the 2020 triennial valuation would have been released in spring 2021, but this has not yet been released.

The Scheme is classified as a "last man standing arrangement". Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the Scheme deficit following withdrawal from the Scheme. Participating employers are legally required to meet their share of the Scheme deficit on an annuity purchase basis on withdrawal from the Scheme.

For financial years ending on or before 28 February 2019, it has not been possible for the company to obtain sufficient information to enable it to account for the Scheme as a defined benefit scheme; therefore the company has accounted for the Scheme as a defined contribution scheme.

For financial years ending on or after 31 March 2019, it is possible to obtain sufficient information to enable the company to account for the Scheme as a defined benefit scheme.

For accounting purposes, two actuarial valuations for the scheme were carried out with effective dates of 31 March 2018 and 30 September 2018. The liability figures from each valuation are rolled forward to the relevant accounting dates, if applicable, and are used in conjunction with the company's fair share of the Scheme's total assets to calculate the company's net deficit or surplus at the accounting period start and end dates.

The following information is provided for a comprehensive understanding of the position of the company with regard to its defined benefit obligations.

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DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

25. Pension commitments (continued)

Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):

At 31 March At 31 March
2021 2020
% %
Discount rate 2.15 2.38
Inflation (RPI) 3.29 2.63
Inflation (CPI) 2.86 1.63
Salary growth 3.86 2.63
At 31 March At 31 March
2021 2020
Years Years
Mortality rates (in years)
- for a male aged 65 now 21.6 21.5
- at 65 for a male aged 45 now 22.9 22.9
- for a female aged 65 now 23.5 23.3
- at 65 for a female aged 45 now 25.1 24.5

The Charity's share of the assets in the scheme was:

Global equity
Absolute return
Distressed opportunities
Credit Relative Value
Alternative Risk Premia
Emerging Markets Debt
Risk Sharing
Insurance-Linked Securities
Property
Infrastructure
Private Debt
Total fair value of assets		 At 31 March
2021
£
109,000
38,000
20,000
21,000
26,000
28,000
25,000
16,000
14,000
46,000
4,000
347,000		 At 31 March
2020
£
96,000
34,000
13,000
18,000
46,000
20,000
22,000
20,000
14,000
49,000
3,000
335,000

The actual return on scheme assets was £98,000 (2020 - £13,000) .

Page 39

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

25. Pension commitments (continued)

The amounts recognised in the Statement of financial activities are as follows:

Current service cost
Interest income
Interest cost
Expenses
Total amount recognised in the Statement of financial activities		 2021
£
12,000
(15,000)
17,000
2,000
16,000		 2020
£
14,000
(15,000)
19,000
2,000
20,000

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation
Interest cost
Member contributions
Actuarial losses/(gains)
Benefits paid
Expenses
Current service costs
Closing defined benefit obligation		 2021
£
742,000
17,000
6,000
175,000
(112,000)
2,000
12,000
842,000

Movements in the fair value of the Charity's share of scheme assets were as follows:

Opening fair value of scheme assets
Expected return on assets
Actuarial gains
Contributions by employer
Contributions by scheme participants
Benefits paid
Closing fair value of scheme assets		 2021
£
656,000
15,000
83,000
33,000
6,000
(112,000)
681,000

Page 40

DocuSign Envelope ID: 1A5B0725-95CD-4894-8EC6-98FC0392E86F

NORTH EASTERN Y.W.C.A. TRUSTEES LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

26. Operating lease commitments

At 31 March 2021 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2021
£
791
1,583
2,374		 2020
£
791
2,374
3,165

The following lease payments have been recognised as an expense in the Statement of financial activities:

2021 2020
£ £
Operating lease rentals 791 791

27. Members' liability

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.

28. Related party transactions

There were no related party transactions during the year.

Page 41