Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION TRUSTEES, REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Company No: 00170981 Charity No: 218808 RSL No: LH4783 Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) Contents Pages Reference and Administration Information Objectives and Principal Activities Strategic Report 3-13 Corporate Governance 14-15 Statement of Trustee's responsibilities 15-16 Independent Auditor's Report to the Members 17-20 Statement of Total Comprehensive Income 21 Statement of Changes in ReseNes 22 Statement of Financial Position 23 Statement of Cash Flows 24 Notes to the Financial Statements 25-45 Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) REFERENCE AND ADMINISTRATION INFORMATION Charity Name Heart of England Young Men's Christian Association Charity Registration Number 218808 Company Registration Number 00170981 Registered Social Landlord Number 4783 Company Secretary and Chief Executive Pauline Tomlinson Board of Trustees The Board of Trustees is composed of the following individuals.. Dawn Ward- Chair Owen Everton Burke - Vice Chair Oenca Rona Fontaine Michael Hew Graham Cadd Arkle Leslie Bell - Resigned 5th March 2024 Gabriel Imevbore Mark Bruckshaw Gareth Clive Bunn- Resigned 281h July 2023 Registered Office: Heart of England YMCA 301 Reservoir Road Erdinglon Birmingham England B23 6DF Auditors: Cooper Parry Group Limited Cubo Birmingham Office 401 Two Chamberfain Square Birmingham B3 3AX Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) The Board of Trustees is pleased lo present its report and audited financial statements for th8 year ended 31 March 2024. The Trustees and Trustees, Report constitute the Directors and Directors, Report for Companies Act purposes. OBJECTIVES AND PRINCIPAL ACTIVITIES The Objects of the Association arise from its acceptance of its founding Christian principle, the Paris Basis of 1855, incorporated into the National Statement of the Aims and Purposes of the YMCA in England & Wales as il may be amended from time to lime. Consequently. the Association is part of the Worldwide YMCA, a Christian Movement which seeks to unite those who, regarding Jesus Christ as their God and Saviour according lo the Holy Scriptures, desire to be His disciples in their faith and in their life, and lo associate their efforts for the extension of His Kingdom. Any difference of opinion on any other matter shall not interfere with the harmonious relations of the YMCA Movement. Accordingly, the Objects of the Association are.. To advance the Christian faith, including by.. (al promoting a Christian environment inspired and motivated by the life. example and leaching of Jesus Christ, where people of faith and people of none can work together for the Iransformalion of communities., and {bl enabling people of all ages and young people, to flourish through experiencing and responding lo the love of God demonstrated by the life, example and teaching of Jesus Christ.. To provide or assist in the provision in the interests of social welfare of facilities for recreation and other leisure time occupation for men and women with the object of improving their conditions of life., To provide or assist in the provision of education for people of all ages and young people, with the object of developing their physical, mental or spiritual capacities., To relieve or assist in the relief of people of all ages and young people, who are in conditions of need. hardship or distress because of their social, physical, emotional, spiritual or economic circumstances., and To provide residential accommodation, induding Social Housing, for people of all ages and young people. who are in need, hardship or distress because of their social, physical, emotional. spiritual or economic circumstances. The Association welcomes. serves and works with persons of all religious faiths and of none. STRATEGIC REPORT Mission Statement To reflect the vision for the YMCA federation nationally lo be 'an inclusive Christian movement, Iransfomiing communities so that all young people can truly belong, contribute and thrive,, trustees have agreed that the mission of YMCA Heart of England is.. To inspire young people lo discover their potential so that they can live life in all ils fullness. Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) Achievgmgnts, pgrformanco and future dovelopments The principal activities in furtherance of the Association's charitable objectives are.. The provision of supported accommodation with associated support services The provision of social housing al below-market rents The provision of childcare The provision of training and support programmes that enable life skills and progression within employment. The provision of facilities for hire by the local community and other groups The provision of a chaplaincy to service users, the local communities that we serve. and our staff and volunteers The provision of youth clubs and assorted in formal education activities for young people, including those identified as being vulnerable andlor at risk In the year under review the Association managed 350 Bed spaces. These units provide much needed accommodation for fomiedy homeless people, many of whom are young and represent a diverse community. This is augmented by the provision of housing related support which we provide directly al our supported housing schemes16001.l and general needs140 /.). Our specialist housing provides support for vulnerable groups within our society, this includes, young people, young families, those with mental health issues and those suffering domestic abuse, drug and alcohol recovery. and ex-offenders. We will continue to deliver ambitions lo build more homes and provide services that meet the needs of our customers. In addition, we operate one children's day nursery across the Borough of Solihull and provide a range of holiday play schemes 8nd out of school clubs. We also operate a youth services team, delivering open access and bespoke youth work programmes, predominantly in Coventry. We are aware of the challenges faced by the Association as il responds lo some financial challenges created through loss of income and the impact from Covid- 19. Chair's Statement I wanted to start my statement this year by reminding us all of our MISSION and VISION. Our MissiTon is to '. Inspire young people to discover their potential so that they can live life in all ils fulness. Our Wision is of a robust, high profile and credible Christian charity that, through its programmes and facilities, intervenes lo slop young people being excluded and helps them lo truly belong, contribute and thrive within their community. The Board of Iruslees and l are delighted that through the excellent leadership of the CEO and senior team coupled with the hard work, dedication and passion of all staff and volunteers we have collectively ensured that YMCA Heart of England has achieved our Mission lour purposel and the majority of our 10 point strategic plan. It has been a great honour and a privilege lo work alongside the trustees, CEO and senior team of our wonderful Charity, to realise these achievements. The Board of trustees extend their heartfelt thanks to all of the stsff, volunteers and stakeholders that have made this year a resounding success. Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) As with many charities we have had to Comply with recent regulatory standards, changes in government policy and have adapted services regardless of the economic challenges, cost of living implications and the section 114 being issued to Bimiingham City Council. We have stayed focused and intentional in our st8ps lo continue lo achieve and support those most in need. Thls year we have seen The review of our current 10 point Plan with steps in place lo cornplete a 5 year strategy for the organisalion. This has been informed by staff, residents and our stakeholders. The completion of our 27 units in Northfield, Birmingham, which has provided transitional homes for those in need. The Development of a Stock Investment Programme for the next 3 years, ensuring that the 350 homes we provide meet the Decent Homes Standards. 469 young people been positively impacted through the work we do, enabling them to feel a sense of purpose and belonging. Our partnership launch with 2 Much Passion to run our Community Coffee shop, a community Pantry Facility, start Stay and Play initiatives and embed free breakfast clubs. 1000/0 compliance in regards to Health and Safely An achievement of 980/, Occupancy across all our housing schemes- an increase of 2019 from previous years. 1000/0 response rale on our Tenancy Satisfaction Survey with 780/D of residents overall staling that they are satisfied with YMCA Heart of England as their Landlord. Our Nursery achieved an occupancy level of 840/y and secured a GOOD Ofsted rating. The launch of our Sanitary Bank- providing free sanitary items for our residents and young people. We have.. Welcomed two co-opted members, and a young person to our board Icurrenl resident) through our'Get on Board, initiative. Successfully delivered against our Operations Service Improvement Plan Completed and responded positively lo our Staff Sutvey. Completed our Finance Audit signed off and agreed our Accounts for the Year to March 2023 which reported a surplus of £660k for the year. Introduced new Healthcare Benefit packages for Employees. Been able to offer a 90/. Average Pay Increase for our valued staff which has been very much welcomed. Successfully recruited lo some of our key roles including the Director of Operations, Head of PR, Comms and Engagement, Health and Safety Manager and our HR Manager as well as many others. Importantly over the last year, despite the challenges the external landscape has brought with it, we have remained focused and driven and this has been a leslimony lo trustees who have led by example, continued to remain professional and governed to ensure we achieve positive outcomes. We have also continued to ensure that the ethos of our organisation continues to build on the legacy of George Williams by ensuring that we place God al the centre of all we do. The Board of Trustees are looking fonNard lo seeing what next year brings and the impact we will continue lo have on our service users, our stakeholders and the communities we setve. Thank you lo everyone who has made this year's annual report one that speaks volumes about the work we continue lo do and the individual lives we continue to impact for the beller. Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) Statgmgnt of Public Benefit The Trustees consider they have complied with th8 duty in Section 17 of the Charities Act 2011 to have due regard lo public benefit guidance published by the Charity Commission. In the year under review the Association worked across three main Servi￿ areas which provided benefit not only lo our Servi￿ users but also lo the wider community. We wort( with people from all social and ethnic backgrounds and provide services in the cities of Birmingham and Coventry and the boroughs of Solihull and Rugby, focussing on inspiring people lo reach their potential. During the year, we provided 264 bed spaces of supported accommodation each night. These properties provide supported housing lo vulnerable and disadvantaged groups. We work with people to provide skills and confidence lo move towards independent living and to begin contributing to the wder community. In addition, we provided 66 bed spaces of move-on general needs for people who no longer require SLJPPOrt. These are let al below market rents. Flnanclal Revlew Statement of Comprehenslve Income Overall income increased this year by 21 Q/0. The variance is due to 8 combination of factors, including a 70/0 rent increase, as well as increases in our Service Charges and the completion of our new development of 27 units at Northfield, Mary Court. Operating costs increased by 120A compared to the previous year. This was mainly due to a combination of increased maintenance and service chargeable costs within the housing schemes, with added inflationary costs due to the general rise in prices, alongside additional selllemenl and recruitment costs due to changes within the organisation. Also, after retaining Billy Bears Nursery and initially receiving an Inadequate Ofsted report, a lot of work was done lo improve this section, resulting in a Good rating al the follow up inspection. The year saw the completion of our new development in Northfield, Mary Court. This includes 27 new units and was opened in January 2024. The increased revenue from this development will start to be fully realised during the next financial year. The Youth and Communities section of the organisation have all been facing financial challenges through the year, which saw some operational changes implemented towards the end of the year. This should bring a turnaround in the performance for this area. Included in this is a partnership which has coMMen￿d with 2MuchPassion. From March 2024, Eden Café will be run in partnership with 2MuchPassion. which will generate a guaranteed rental revenue scheme for YMCA Heart of England. Interest costs has increased by 137'/0 compared to last year due to the increase in Bank of England base rate. alongside the full drawdown of the loans with Unity Bank, which were required for the completion of the development at Northfield. Statement of Flnanclal Posltlon Grovrth in a$sot baso Intangible Assets have reduced due to the continued depreciation of the assets held. Included in the asset base is the cost of the new CRM software. The CRM software is an asset for the organisation because il will help lo streamline activities and improve reporting. Once the software is fully implemented, the organisalion expects to see savings in adminislralive costs and improved reporting. This is expected to be in use across the organisation by June 2024. Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) The total value of housing assets increased by 140/0 compared lo th8 previous year and other assets went down by 40/0. The development of Mary Court in Northfield is now complete and opened in January 2024. The sile provides another 27 units. Due lo the previous contractor going into Liquidation, this development has faced several challenges and delays, but with help from a loan from Unity Bank, the property is now fully operational. We Continue lo deliver an ambitious development programme while maintaining a resilient balance sheet. Liquidity Creditors within one year has decreased by 80/,, this is mainly due to a reduction in the value of trade creditors following the completion of the development of Northfield. which included large valuation payments. Our debt held has increased by 68 /0 due lo the drawdown of the loan with Unity Bank, needed to fund the Northfield development. The loan debt al year end stood £6.478m. Totsl Reserves Income and expendtture have increased due to a good perfomance this year. A focus on the organisation's core services has helped to improve ils financial perfomance. The organisation has been able to increase its revenue reserves and lo improve ils financial stability, and areas of concern have been highlighted and measures taken to improve the financial performance in these sections going forward. The board recognises that the economy is currently difficult. The ongoing war in Ukraine, the cosl-of-living issues, and inflation have all had a negative impact on the economy. The board is aware of the ch8llenges that these factors are creating charities, and il is committed lo managing the organisations fin8nces. The board are working lo build ils organisation's cash reserves and currenuy working to build its cash reseNe lo 3 to 6 months of forecast annual cash flow. The development of Northfield was a major project for the organisation. The project is finally complete, and the board is confident that it will be a success. The project is expected lo generate long-lerm revenue for the organisation. sin￿ the year end, YMCA Heart of England has agreed the purchase of the Orchard building from Clarion Housing for an amount of £4m. The purchase will take place during the 2024125 financial year and will be funded by both reseNes and a bank loan. Agreement has been reached with Charity Bank for the bank loan, with terms lo be signed off by the board in due course. Pension Costs Heart of England YMCA participated in a multi-employer defined benefit pension plan for employees of YMCAS in England, Scotland and Wales, which was closed lo new members and accruals on 30 April 2007. The last triennial valuation of the scheme was performed on 1 May 2023. This has shown that the pension recovery could be reduced by 2 years. YMCA Heart of England deficit decreased to £103,041 from £201.919 last year. Bank Bank balances at the year-end stood al £2.2m {2023 £1.2ml and the cash flow forecasts for 2024125 allow for a potential subslanlial payment from reserves towards the acquisition of The Orchard property. Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) Immediatg Op9rating Environment From April 2024, we continue lo ensure that the Association has strong liquidity and that committed bank facilities will remain available and that the value of Charged security Continues lo meet loan asset cover requirements. We know that the impact COVID-19 coupled with impact of the war in Ukraine, financial issues at Birmingham City Council and inflation have made the operating environment more difficult and places more stress on external funding. Our Boards focus has been on Liquidity during this reporting year and will continue to do so. Value for Money Statement YMCA Heart of England is al the forefront of homeless prevention and alleviation in Birmingham, Coventry and Rugby. These activities have come under increasing pressure through the combination of funding cuts, the social housing rent reduction policy and the inevitable rise in homelessness and rough sleeping. This means OLJr resources need to be managed efficiently so we can support as many people as possible. Our annual budget planning process includes scrutiny of each service, staffing complement and associated costs to ensure that our resources are focused on delivering the highest quality of services to our residents that we can realistically afford. The same level of scrutiny is applied for our other services.. nursery provision, conferencing and our youth work. Each area is monitored regularly at subcommittee level in respect of social and financial outcomes lo ensure that we continue to deliver the highest quality can within the resources available. In addition, where funding is received from grant giving bodies le.g. the Youth Investment Fund) our spending pl8ns are subject lo external scrutiny to ensure that they deliver value for money. We are reporting on the Regulator of Social Housing IRSHI Value for Money standard and accompanying code of practice. The standard requires us to publish perfomance against our own v81ue for money targets and against a series of common metrics with which to measure economy, efficiency and effectiveness. The purpose of the Value for Money approach is lo.. Continue to drive improvements in VFM within the social housing sector Ensure a strategic approach lo delivering VFM is embedded within the business Encourage investing in existing homes and new housing supply Enhance the consistency, comparability and transparency of VFM reporting. We set out below a comparison between this year and last on our performance. Additionally, we have compared our performance lo the National Housing Federation Sector Scorecard using the median. Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) Regulatory Metrics RSH Metric 2023124 2022123 Sector Scorecard National Federation Median Relnvestment O/ 12.5 New supply delivered 27 3. Gearing % 18.2 13.1 35.8 EBITDA MRI intorgst ¢OVgr°/o 460.0 672.5 181.9 5. Social housing cost per unit £ 12,672 12,100 4,230 6A Operatlng marglnlsoclal houslngl OA 23.2 13.1 22.2 6B. Operatlng Margln (overall) 15.0 11.1 20.2 Return on Capital Employed °/0 1. Rginvgstment /0 We recognise there is a backlog of unmet housing need, and our strategy is to increase our stock each year where possible. This metric looks at the investment in properties (existing stock as well as new supply) as a percentage of the value of lolal properties held. This year after drawing down our loan with Unity Trust Bank we were able lo complete our development al Northfield. 2. New Supply delivered % The focus for the future is reinvestment in existing housing stock to ensure it is fil for purpose for the coming decades as well as increasing our housing stock to support individuals and families. We continue lo see unprecedented levels of external change and all political parties believe more homes need to be built in the coming years. This year we successfully increased our stock by 27 extra units after completing the Northfield Development. which opened in January 2024, with additional schemes being actively pursued as we look lo maximise use of our available resources for the benefit of the wider community we serve. 3. Gearing O This represents our net debt lo lenders as a percentage of the total cost of our housing properties. We have been successful in working with Homes England and other partners to keep borrowing as low as possible. Whilst this ratio remains low, we understand to deliver social v8lue we need lo be financi8lly sound and make the most of our resources to deliver the services that our customers need. We also need to provide assurance lo our lenders and funders. The loan with Unity Bank was ulilised this year. 4. EBITDA MRI Interest Cover % This represents the level of surplus compared lo the interest payable. The decrease this year was due to the new loan being ulilised, leading to increased Interest payments. Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) 5. Headling social cost per unit This represents social housing costs divided by lolal units owned and managed. Like other providers we have spent a lot of time analysing our Cost per unil. Our strategic aim is for our headline social cost per unit to reduce each year. We recognise there is more lo do, and our aim is to avoid spending lime and money on undertaking repairs where this could have been avoided. Our Asset Management team are improving their working models lo ensure they analyse and look for properties with signs of neglect and linking this to the planned maintenance schedules. 6A. Operating margin (social housing lettings only) v. This represents operating SLJrplus from social housing lettings divided by turnover from social housing lettings. The Operating margin for social housing lettings increased from 13.1 10 23.2 compared to the previous year. This is largely lo do with Increased revenue generated by rents and service charge as well as maintaining efficient control of cost levels. The organisalion has implemented a number of initiatives to improve its cost management, including tracking spend closely, standardising its procurement processes, negotiating better prices with contractors. 6B. Operatlng maryln {overalll O Overall operating Margin increased from 11.1 10 15.0 largely lo do with increased revenues and overall improvement in cost control and improved management of bad debts. Bad debts, void loss and current tenant arrears are key performance indicators in assessing efficiency and we monitor this monthly. Our aim is lo reduce costs and deliver VFM efficiencies and using all our surplus lo build more homes. 7. Return on capital employed O This compares the overall operating surplus lo total assets less current liabilities. The level of return is higher compared to the previous year., this is due additional units al Northfield which has increased our asset value. Principal risks and uncertainties New, emerging and high scoring risks are monitored through a Strategic and Operational Risk Register. The Executive Directors keep the register under review lo ensure it fully reflects the risks to the delivery of YMCA Heart of England operations and Strategic Plan. Designated Managers are responsible for identified risk area and the Company Secretary oversees the progress against actions lo mitigate risks. The Board has also adopted a risk appetite which sets out the nature of levels of risk YMCA Heart of England are prepared lo lake to achieve our strategic objectives. Performance against this is being worked. facilitated through the use of metrics lo enable the Board and committees to assess whether performance remains within the risk appetite parameters. The Chief Executive reports lo the Board on the effectiveness of the internal control environment. The following are the key strategic risks that the Board considers, and the actions that have been taken to mitigate these and strengthen controls. The Board is continuing to monitor the dynamic post -pandemic operating environment and implement further actions to ensure that the risks arising are managed appropriately and activities remain within the agreed risk appelile. 10 Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) Rl9*8 Rl$k rè*poMég Acllons durlng the yearto strengthen Controls Risks Examples of controls In place Financial capacity and inCLKne O￿lection performance limits th& d￿1Very of grovrth and busin&ss Iransforrnalion. Itbcr&ase Treasury tnanagetnenlslrategytnoniloring Itnplgmenlalion ol In¢oTne mayimisalion strategy Estsblishtnenl ol sustain3blofin?n¢e Iromework Key Perfomantè inditattsrs reptsrtèd io the ExetutivÈ Team monthly and Bo8rd ￿ monthly. Buslness Plan and s￿s$-te5tinQ whlch demonstraie a￿lItY to wlthstsnd economic stresses together with an Increased developmeni programme. Monitor an¢ se&k professional ?¢w¢e. Regular R4ul8r stre$$ Monltorlngthe met￿eStha1areU$ed INlln8ncial Income collection and arrears perfo￿a￿9 Repulalionaldamage duelo bad putrAicity Independent Inl8rnal revi8wol all Inridfrnts Change$ environtnenl e.g. LDcal Authorily Comtnissioning coming undpr iougher budgel5. scrutlny andlordelays. on becoming Environm&nlal and sustainably Employer and rneellhe Govemmgnl Enwronmgnlal Monitorlng rOll￿Ver tlme. Build 9wd rdatsons wlth commissIMer5. Be proatbve bui malntsin Keep up to date wlth Current alf81lS, leedback on 1rt81. regkn81. and ￿tIonal guid£nce around key prloribe5. Better Information man ementaDd Irackin Promgte r9sponsi￿1IlY forth8 envirTrntnent and communicate arhd impl8ment policy to WDdofor¢8 Minitnise Waste by reduetitin, re-use and recycling methods Itnpl8mgnblionoftraining programmelo JI stsff. Comply ilh relevant environmental legi41$tlonlreyulabD advice and Information for staff and encwra9e Ihem to develo Independent benchmarking Df gxeculive athd senior managers salaries. Gend&r pays gap data. and eytemal b&nthmarking, rnoniloring ol changes to staff establi$hmenl and lumover ReVieVI Curfeni and development rojects Mfyih a vlew to only 5pÈnd lime on developments thai sre Most Ilk sp￿lalISt team in pla¢& subject &xpgrts emb9ddgd ocross Ihg business KPI monitored bythe BDard and comtnittEes Comrli8nce Issues monitored by the Board c￿er￿ght ol activity by Director of Asset and Development Management Plans in place for key risk argas fire, asbe$los elc. Tr8asury tnanagétn8nlslrai8gy tnoniloring Monitor Dn weekly basis, WDrk with ￿narnt￿ and Ihe local Èulhorily. sirale9￿ plan moniithing, Growth sir31￿Y Re9ular Stress Tesbng, Environmental sirategy, Value fLY Money Straiegy Recwilmenl & Retention of sl8ff, attr8ct and relain people with the skills and ewerience required lo deliver slralegiG plan. Avoiding th& ￿$1 of not getting it Develop Df eTnployer brand. Develop ol resource stralegy, DeVe￿p￿ent of hybrid wotking mC￿e1. anagem8nl develop￿rnI and coathing, D8v8lopm8nt Risk I I8[￿th Df tim8 to develop schetnes Focu5 on Ntsrthfi￿d Ènd $weatlng the asset5 YMCA Heart of England does not meet Ils Health Satsty obligations as a landlord. employer, develowr, and providerof SO￿01 caro Itnpl8mgntslionot¢omplian¢etnodules acrossall Futlherdevelopment ol Suite ol KPIS R￿1￿1 diyil811Sabon ol compliance pncess. sourcln98 newCRM So[tw8￿ Loeapiure theda lor Improved and rapld detision makin9 and improve produdlvily. ITKrga$e In housingafreats dug to cost of living ?nd incr&ase in en&rgy price$ Itnprov8 rdabonshipwith Housing B8nélitst8am. r8dU￿ cash payments and encourage standing ordéts or r￿[￿U[rIng payments by crédit cards. Mapping procuremeni meihoddogy. liming ol (klivery and ItrAiion ol new h<)mes in ihe period 2022-2025. Main18inino and understsndinooflhe market lor Land and $106 IL4£l agreements between Ioc81 8ulhoribes and developers) and invesimeni strBie 11811Sabon Implemenl addiiiDnal securily sysletns an security. Implefflenl regular assessm&nl ol inlgrnal controls indepe￿ent trotn the IT an Busine$$ Dgvelopmgnl. Audits on Data by Risk Evolves. E*£mal Audit on IT envjrontnenl. ServiCÈ re-structurè Èround cUs￿mer 1￿meY. Newe4Jmplaints process ar￿ increased focus on earfy resdubon and le2rning. Customer atisfa¢tion bDsrd lev￿ KPI Investment decisions dts not give gpprtspna￿welyhtttsc0mpebThg $tr£iègiC agendas. nvironm8nt, saféty. grovAh d￿1￿lisatiOn. 10 Resilienceof trsyslems io cyberaithcks Operational aTK1 govemance oversi9hl ol IT Strategy. Cyb&r ess&nlials accredilalion lo bg goin￿, Modem security ap￿lanCeS and syslgmslo proted against cybgr-atteck. Custotner insight is not embedded in business dpsign and servicp review process Voiee ol the Customèr Sttstegy beino vffjrked on, Independeni methodology for Cu$tiJmer Satisfaction Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) Going Concern and Viability Statements In assessing viability, the Board considered several key factors, including business models, our strategy, and risk appetite. Our assessment of viability therefore continues lo align with a 5-year outlook. The Board has assessed the organisalions viability and have reasonable expectation of being able to continue the operation for the foreseeable future. The Board's focus following Covid-19 is lo place a stronger emphasis on liquidity and solvency and ensuring that the Association has adequate resources to ¢onlinue in operation, meet it liabilities as they fall due, and relain sufficient available cash across all two years wilhoul breaching any loan covenant. The board have considered the number of challenges effected the housing sector and the contributing factors starting with Covid-19 pandemic, the war in Ukraine with rising energy prices and supply chain disruptions coupled with an increase in inflation and interest rates. These challenges are having a significant Impact on our residents, many of whom are struggling with necessities. We are taking a number of steps to address these challenges. Regular stress testing is perfomed on the Association and different scenarios and sensitivities have been reviewed on the Association's projected cashflow position and financial eovenanl. We also Considered increase in rent arrears and bad debt. Should these occur, we have identified the limit for financial viability. We are also working with the government to secure funding to support residents and reducing the essential development work and capital repairs. The Board are satisfied the business model and str8tegy is adaptsble with minimum risk on liquidity and solvency. We have taken a series of steps lo strengthen the Association's liquidity and increase the resilience of the balance sheet. We are also looking lo the future. The provision of social housing has vital part to play in the government's response lo this crisis and they have already announced significant sums of money lo help boost S￿la1 housing supply and end rough sleeping for good. The delivery of more social housing is one of the key strategic objectives in YMCA Heart of England's new strategic plan and we are already in discussions with local councils in our area of benefit with a view lo securing some of the recently annoUn￿d government money for investment in social housing. The Board of Directors has recognised the immense potential and importanTr of supporting young people in the wider community. We firmly believe that by empowering and nurturing the next generation, we can create a positive impact and shape a brighter future. To achieve this, we are committed and will be investing in Youth next year. Reserves Policy The Finance Sub-committee, on behalf of the Board of Trustees, conducts an ongoing review of the level of reserves consislenl with ongoing activities of the Charity. The trustees are taking into consideration the economic environment and risks associated with the various sources of income, expenditure plans and what level of working capital is required to continue core activities. The reserve policy is considered every quarter in line with the quarterly accounts. We use a rolling five-year forecast lo model how we will fund the delivery of our strategy. 12 Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) We monitor managed cash which includes all amounts available lo finance the general activities nel of any financing agreements. The Iruslees have agreed that managed operating cash should exceed a minimum of three months lo six months annualised forecast cash outflow. Financial performance and forecast information is monitored monthly lo assess the cash requirements of the Charity. The reserve policy is considered and monitored every quarter. Our Reserve Policy is set to take into consideration.. Income risk reserve to protect the charity against a fall in income levels Working capital reserve to provide working capital if expenditure is needed ahead of income being received Designated reserves sel aside lo meet essential future spending and unplanned emergency repairs and other expenditure. Level of funding for unexpected opportunities As we are approaching the remainder of the year with caution and with cost of living issues remaining, as well as interest rale movement uncertainty, our target has been met but with room for improvement. Our Cash Reserves measured as at 31 March 2024 2024 £2,234M Cash Balance as at 315l March 2024 Managed Cash outflow based on 12 months forecast to the period ending March 2025 £5,734M Divide by 121£5.734M divide by 12) £477k Months of annualised foreeast of cash1£2,234M divide b £477K 4.68 months 11 is to be noted that the forecast cash outflow for the period ending March 2025 detsiled above does not include the potential outflow for the purchase of The Orchard property. While our cash reserves are al a relatively higher level al March 2024, due lo the expected funding requirements for the purchase of The Orchard property and other infrastructure investments. there is likely to be some dip in this in the near future. 13 Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) CORPORATE GOVERNANCE We are commilled lo the principles of Good Govemance. The Iruslees adopt the National Housing Federation's INHFI 2020 code of governance lo measure good governance practices as well as the Charity Governance Code. Dele ation and control The board regularly reviews which mallers are reserved lo the board and which can be delegated. It collectively exercises the powers of delegation lo senior managers, oommillees or individual Iruslees, stsff or volunteers. The board has not recently reviewed its delegated powers bul intends lo do so in the forthcoming year and is in the process of pulling together a scheme of delegation. The board regularly considers information from other similar organisalions to compare or benchmark the organisation's performance. At the moment salaries are the only area where we benchmark. (We co-ordinate production of a biennial YMCA salary survey.) We are currendy working with YMCA colleagues across the region to produce comparative data for operational perf0mlan￿. Activel mana risks The board retains overall responsibility for risk management and discusses and decides the level of risk il is prepared lo accept for specific and combined risks. The board regularly reviews the charity's specific significant risks and the cumulative effect of these risks. 11 makes plans lo mitigat8 and manage these risks appropriately. The charity considers using a Govemanc8 Committee lo lead the board appointment process and to make recommendations lo the board. This will include a policy for training and inducting new trustees. The board reviews its own performance and that of individual trustees, including the chair. Such evaluation typically considers the board's balance of skills, experien￿ and knowledge, its diversity in the widest sense, how the board works together and other factors relevant lo its effectiveness. The board reviews its collective effectiveness al an annual board away day. This discipline has continued throughout the current pandemic. However, we have not previously reviewed the performance of Iruslees on an individual basis, this has been introduced through a robust skills and competency matrix and will be reviewed by trustees in the current financial year. Notwithstanding this, the Association considers itself to have high standards of governance. The policies of the Charity are determined by the Board of Trustees, which meets bi-monthly. The Charity's operations are managed by the Chief Executive, who reports to the Board of Trustees. The Charity has a system of internal controls designed to provide reasonable, but not absolute, assurance against material misstatement or loss due lo fraud or error. The system includes corporate controls over income and budget comparison, proper supervision and delegation including operational and financial review procedures, limilalion on the spending power of individuals and control over the Charity s assets. The internal controls are subject to regular review and are updated lo take account of organisational and operational changes. There are four sub-committees that meet bi-monthly on matters of housing, finance, development and social enterprise. A review of governance structures was undertaken in the year under review. This has already resulted in improved perfomiance reporting to trustees through the Association's operational committees. In the current year it will also lead to the overhauling of the Key Performance Indicators against which officers, perfomance is assessed. 14 Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) Key Managgmgnt and Remuneration There were five Executive Directors and one Chief Executive of the Association during the year under review. They were.. Pauline Tomlinson- Chief Executive Fawzia Radman - Director of Finance and Corporate SeNices- Left the Business April 2024 Daljeel Malharu - Director of Assets and Development- Left the Business in August 2023 Tom Jackson - Director of Operations Carol Probyn - Director of People and Culture - Left the Business in June 2023 The changes within the Executive team saw the role of Director of Operations introduced to Cover the areas which were previously overseen by the Director of Housing and Director of Assets and Development. The responsibilities of the Director of People and Culture moved into the remit of the Director of Finance and Corporate Services. The Association's policy is to review sa18ries annually as part of the budget selling process. This m8y result in a cost of living pay increase being awarded to all employees. The Association's policy is that any amendment to the salary level of an individual employee or group of employees beyond the annual cost of living increase must be recommended by the appropriate departmentsl director and aulhorised by the Director of Finance and Chief Executive. The remuneration of Executive Directors is sel by the Chief Executive, bearing in mind salaries for similar roles al comparable organisalions, including other YMCAS within the region. Any amendment to the salary of an executive director beyond the annual cost of living increase musl be recommended by the Chief Executive and aulhorised by the Treasurer and the Chair. The remuneration of the Chief Executive is sel by the Board. In considering the appropriate remuneration level they will look al salaries for comparable organisalions, especially other YMCAS within the region. This is considered alongside other factors, such as the size and complexity of the Association's operations, and the affordability of any remuneration package lo the Associats'on. All staff and Iruslees are required to declare any wnflict of interest that may exist lor be perceived lo exist) before recommending or authorising any amendment to an employee's remuneration. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees (who are also directors of Heart of England YMCA for the purposes of company lawl are responsible for preparing the Report of the Trustees (including the Strategic 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 trustees lo prepare financial statements for each financial year, which give a true and fair view of the stale of affairs of the Association and of its income and expenditure for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently- observe the methods and principles in the Statement of Recommended Practice for Social Housing Providers (Housing SORP 20181- make judgements and eslimales that are reasonable and prudent., 15 Docusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961 DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {Incorporatlng the Strategic Report) slate whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial slatemenls., prepare the financial statements on the going concern basis unless it is inappropriate lo presume that the Association will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy al any time the financial position of the Association and enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2022. They are also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. DISCLOSURE OF INFORMATION TO AUDITORS In so far as the trustees are aware.. there is no relevant audit infomiation of which the Association's auditor is unaware,. and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Association's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. AUDITORS Under section 487 of the Companies Act 2006, Cooper Pary Group Limited will be deemed lo have been reappointed as auditors 28 days after these financial statements were sent lo members or 28 days after the latest dale prescribed for filing the accounts with the registrar, whichever is the eadier. By order of the Board DoBuSlqnedtrf. OD Chair and Trustee 2nd September 2024 16 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Independent Auditor's Report to the Members of Heart of England Young Men's Christian Association Opinion We have audited the financial statements of Heart of England Young Men's Christl8n Association for the year ended 31 March 2024 which comprise the Statement of Total Comprehensive Income, the Statement of Changes in Reserves, the Statement of Financial Position, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial slatemenls: give a true and fair view of the slate of the Association's affairs as at 31 March 2024, and of the Association's incoming resources and application of resources, including ils income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private regislered providers of social housing in England 2022. Basis for opinion We wnduded our audit in ac￿rdan￿ with International Standards on Auditing IUK} {ISAs IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRC'S Elhi¢al Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concem 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 lo events or conditions that, individually or collectively, may cast significant doubl on the Association's ability lo continue as a going concem for a period of al least 12 months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concem are described in the relevant sections of this report. Other information The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial slalements does not cover the other infom)ation and, except lo the extent otherwise explicitly slated in our report, we do not express any fom) of assurance conclusion thereon. 17 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Independent Auditor's Report to the Members of Heart of England Young Men's Christian Association (continued) 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 othenmse appears lo be materially misstated. If we identify such material inconsistencies or apparent material misslatemenls. we are required lo determine whether this gives rise to a material misslatemenl in the financial statements themselves. If, based on the work we have performed, we conclude that there is 8 material misstatement of this other infomialion, we are required to report that fact. We have nothing lo report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Report of the Trustees lincorporaling the strategic report) for the financial year for which the financial ststemenls are prepared is consistent with the financial stalemenls., and the Report of the Trustees lincorpofftting the strategic report) has been prepared in accordan￿ with applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In the light of our knowledge and understanding of the Association and ils environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees lincorporaling the strategic report). We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us lo report lo you if, in our opinion.. adequate accounting records have not been kept by the Association or returns adequate for our audit have not been received from branches not visited by us., or the Association's financial stslemenls are not in agreement with the accounting records and returns., or certain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit In addition, we have nothing lo report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion.. a satisfactory system of control over transactions has not been maintained. Responsibilities of the Board As explained more fully in the Statement of Trustees, responsibilities sel out on page 15 and 16. the Trustees 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 board determine is necessary lo enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board is responsible for assessing the Association's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the board either intends lo liquidate the Association or to cease operations, or have no realistic altemative but lo do so. 18 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Independent Auditor's Report to the Members of Heart of England Young Men's Christian Association (continued) Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial ststements as a whole are free from materi81 misstalemenl, whether due to fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is 8 high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misstatement when it exists. Misstatements arise from fraud or errorand are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users tsken on the basis of these financial stslements. Irregularities, including fraud, are instsnces 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 specific procedures for this engagement and the extent lo which these are capable of detecting irregularities, including fraud is detailed below. Our assessment focussed on key laws and regulations the Association has lo comply with and areas of the financial statements we assessed as being more su$￿ptib1e lo misstslemenl. These key laws and regulations included but were not limited to compliance with the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2022, Charities (Protection and Social Investment) A¢t 2016, Companies Act 2006, Charities Act 2011, taxation legislation, data prote¢tion, anli-bribery and employment legislation. We are not responsible for preventing irregularities, including fraud. Our approach to detecting irregularities, including fraud, included, bul was not limited to, the following.. obtaining an understanding of the legal and regulatory framework applicable to the Association and how the association is complying with that framework, including agreement of financial statement disclosures lo underlying documentation and other evidence,. obtaining an understanding of the Association's control environment and how the Association has applied relevant control pro￿dure$, through discussions with Trustees and olher management and by perfomiing walklhrough lesling over key areas., obtaining an understanding of the Association's risk assessment process, including the risk of fraud., reviewing meeting minutes of those charged with governance throughout the year., an perfomiing audit lesling to address the risk of management override of controls, including lesling journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting eslimales for bias. Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection of fraud based on our approach. Irregularities arising from fraud are inherently more difficult to delecl than those arising from error. Because of the inherent limitations of an audit, there is a risk that we will not delect all irregularities, including those leading lo a material misslalemenl in the financial ststemenls or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial ststements, as we will be less likely lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring dLJe lo fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at= www.frc.org.uklauditorsresponsibililies. This description forms part of our auditor's report. 19 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80D-3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Independent Auditor's Report to the Members of Heart of England Young Men's Christian Association (continued) Use of our report This report is made solely to the Association's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might stale to the Association's members those matters we are required lo stste to them in an auditor's report and for no other purpose. To the fullest extent pemitted by law, we do not accept or assume responsibility to anyone other than the Association and the Association's members as a body, for our audit work, for this report, or for the opinions we have formed. l I'rfj T IIY Simon Atkins Senior Slatulory Auditor For and on behalf of Coopar Parry Group Limited Slalulory Auditors Cubo Birmingham Office 401 Two Chamberlain Square B3 3AX 03 September 2024 20 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Statement of Total Comprehensive Income for the year ended 31 March 2024 Note 2024 Total 2023 Total Turnover Underlying Operations 7,141,191 5,923,264 other Incon 26 40,053 7,181,244 5,923,264 Operating costs 5.717.333 5,097,071 Operatlng Surplus 1,463,911 826,193 Interest & financing costs 6&7 392,917 165,954 Surplusl{deficitl for the year before tax 1,070,994 660,239 Taxation Surplusl (Deficit) for the year 1,070,994 660,239 Total comprehensive income for the year 1,070,994 660,239 The Financial Statements were approved by the Board on 2nd September 2024 and signed on their behalf by.. DoBuSlqnedty. Swby.. 3D$133AQDSQ449S 8238ÉFDCeeD34A8 Dawn Ward CBE Chair and Trustee Everton Burke Esq., OBE Vice Chair and Trustee The accompanying notes on page 25 to 45 form part of these Financial Statements. 21 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Statement of Changes in Reserves for the year ended 31 March 2024 Income and ?xpendlturo reserv8 Re8trlcted Re88rv8 Revaluatlon reserve Totsl B818nce 8S 8t 1 April 2022 3.493.242 982,763 408,218 4.884.223 Surplus I IdefiGill from statement of Gomprehensive inGotne 660,239 660,239 Movement in Revaluation ReseNe 14.2WI 4,200 Mow8m8nl In Restricted R&8& 982.763 1982,7631 Balance at 31 March 2023 5,132,044 412,418 5.544,462 Surplus I Ideficill from slalÈmÈnt of COMp￿hen$1Vtr income 1.030.942 40,053 1,070,994 Mov8m8nl In Restricted R88& 40.053 140,0531 Movement In Revaluation R8S8rv8 14.2WI 4,2 Balancè at 31 March 2024 6,198,838 416,618 6,615,456 The accompanying notes on page 25 10 45 form part of these Financial Slalements. 22 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Statement of Financial Position At 31 March 2024 Company No. 00170981 Not8 2024 2023 Fixed As$ets Intangible assets and gcodwill Tangible fixed assets- Housing Properties Tangible fixed assets- Other Fixed A9sets 10 118,950 20,125.352 1.642.404 21,886,706 167,958 17,625.914 1.716.519 19,510,391 Cyr￿nt Assets Trade and other debtors Cash and cash equivalents 13 392,467 2 233.805 2,628,272 271,019 1 180.480 1,451,499 ¢￿dItors.. Amounts fallln9 due wlthln one year 1.299.480 1.406.705 N8t current assets 1,326,792 44,794 Total assets less current Ilabllltles 23,213,498 19,555,185 Creditors.. Amounts falling due after more than one year 15 116,466,033) 113,767,213) Provisions for liabilities other provi5i0ns 18 1132.0091 1243.5101 Total net assets 6615456 5 544 462 Reselves Incorne and expenditure reserve Revaluation reserve R8Stric18d r8s8rw8 Totsl Reserves 6,198.838 416.818 5,132,044 412.418 6615456 The accompanying notes on page 25 10 45 form part of these Financial Slalemenls. 23 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Statement of Cash Flows 2024 2023 Note Net cash generated from operatlng actlvltles 1,432,769 1,396,997 Cash flow from investing activities Nel purchase of tangible fixed assets Purchase of intangible fixed assets Gr8nts rec8iV8d 11 &12 10 12,959,921) 11,935,138) 1180,1551 371,250 304 Int8r88t rec8iV8d 12,599,581) 12,115,293) Ca5hflow from financing activitie5 Interest paid New S&curÈd Bonds and Loans RepaytrEnts of borrowings 1390,5201 2.722,500 111.843 2,220,137 1163,2541 643,500 365 897 114,349 Net change In c88h and cash equlvalents Cash and Gash equivalents at beginning of the year 1,053,325 1.180,480 1603,9481 1,784,428 Cash and cash equlvalents at end of the year 2,233,805 1,180,480 The accompanying notes on page 25 to 45 form part of these Financial Statements. 24 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements 1. Legal Status Heart of England YMCA is a private company limited by guarantee in the UK, registered under the Companies Act 2006. an English registered social housing provider and a registered charity. The address of the registered office is given in the information on page 2 of these financial stslements. The principal activities of Heart of England YMCA are set out in the Report of the Trustees. Heart of England YMCA is a public benefit enlily as defined by FRS 102. 2. Accounting policies Basis of Accounting The financial statements have been prepared in accordance with UK Generally Accepted Accounting Practice standards (UK GAAPI including Financial Reporting Standard 102 IFRS1021 and the Statement of Recommended Practice for Social Housing Providers 2018, and comply with the Accounting Direction for Registered Providers of Social Housing in England 2022. The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008 and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention. modified to include certain items al fair value. The financial statements are prepared in steding, which is the functional currency of Heart of England YMCA, and rounded lo the nearest whole £1. Going Concem The Association's business activities, its current financial posttion and factors likely lo affect its future development are sel out within the Report of the Trustees. The Association has in place long-term debt facilities, which provide adequate resources lo finan￿ commilled reinvestment and development programmes, along with the Association's day lo day operations. The Association also has a long-lerm business plan which shows that il is able to service these debt facilities whilst continuing lo comply with lender's covenants. On this basis, the Board has a reasonable expectation that the Association has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months after the dale on which Ihe report and Financial Statements are signed. For this reason, il continues lo adopt the going concern basis in the Financial Stalemenis. Turnover Turnover represents rental and setvice charges income re￿1Vable, nel of void losses in the year, revenue grants re￿1vable from local authorities and income from social enterprise activities. Other Income Interest receivable and investment income is accrued on a time apportioned basis by reference to the principal outstanding at the effective interest rate. 25 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) Government Grants Government grants include grants receivable from the Homes England, local authorities and other Government bodies. Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. Government grants received for housing properties are recognised in income over the useful life of the housing property structure and, where applicable, ils individual components lexcluding landl under the accruals model. Government grants relating lo revenue are recognised in income over the same period as the expenditure to which they relate once reasonable assurance has been gained that Heart of England YMCA will comply with the conditions and that the funds will be received. Grants due from government organisations or received in advance are included as current assets or liabilities. Government grants received for housing properties are subordinated to the repayment of loans by agreement with the Homes England. Other Grants Grants received from non-Governmenl sources are recognised using the performance model. A grant which does not impose spectfied future performance conditions is recognised as revenue when the grant proceeds are received or receivable. A grant that imposes specified future perforManCe-￿I8ted conditions on the Company is recognised only when these conditions are met. A grant received before the revenue recognition criteria are satisfied is recognised as a liability. Taxation Heart of England YMCA is a registered Charity and is therefore exempl from payng corporation tax on charitable aclivities. Value Added Tax (VAT) The majority of the expenditure is subject to VAT which cannot be reclaimed. Expenditure is therefore shown inclusive of VAT. Although a large proportion of the income is exempl from VAT, the Association charges VAT on some of its income and is able to recover VAT on directly atlribulable costs. The Association is also able lo recover part of the VAT it incurs on overhead expenditure in line with a partial exemption method agreed with HM Revenue and Customs. The Financial Statements include VAT to the extent that it is suffered by the Association and not recoverable from HMRC. The balan￿ of VAT payable or recoverable at the year-end is induded as a Current liability or a urrent asset. Interest Payable Interest is capitalised on borrowings to finance the development of qualifying assets to the extent that il accrues in respect of the period of development if il represents interest on borrowings specifically financing the development programme after deduction of related grants received in advance. Capilalised interest is amortised over the life of the undedying asset. Other interest payable is charged to income and expenditure in the year. Leases All leases are operating leases, and the annual rentals are charged to income and expenditure on a straight-line basis over the lease term. 26 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) Employ99 bgnofits The costs of short-term employee benef1ts are recognised as a liability and an expense. The holiday year for Heart of England YMCA runs from 1 January - 31 De￿Mber. The Cost of any unused entillemenl at 31 March is recognised in the period in which the employee's services are received. The best estimate of the expenditure required lo setue an obligation for lerminalion benefits is recognised immediately as an expense when Heart of England YMCA is demonstrably committed to terminate the employment of the employee or lo provide termination benefits. Retirement Benefits Deflned Contrlbutlon Plan Heart of England YMCA offers two pension schemes to all of its employees. The People's Pension which is our default scheme on Aulo-Enrolment offering contributions made on a salary sacrtfice basis. This scheme aulo-enrols employees on 8 30/0 contribution rate which is matched by Heart of England YMCA. The YMCA Personal pension scheme. This scheme allows contributions between 3Yo and 80/0 which is also matched by Heart of England YMCA on a salary sacrifice basis. Defined Benefit Plan Heart of England YMCA participated in a mulli-employer defined benefit pension plan for employees of YMCAS in England, Scotland and Wales, which was closed to new members and accruals on 30 April 2007. Due to insufficient information, the plan's actuary has advised that it is not possible lo separately identify the assets and liabilities relating lo Heart of England YMCA. As described in note 17, Heart of England YMCA has a conlraclual obligation lo make pension deficit payments of £37,085 per annum over the period lo April 2027 {2023.' £42,830 pa to April 20291, accordingly this is shown as a liability in these acwunts. In addition, Heart of England YMCA is required to contribute £11,82012023'. £11,596) to the operating expenses of the Pension Plan and these costs are charged as paid. Financial Assets Debtors Debtors which are re￿1vable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Trade debtors are subsequently measured al amortised cost. being the transaction price less any amounts setded and any impairment losses. Where the arrangement with a trade debtor constitutes a financing transaction, the debtor is initially and subsequently measured at the present value of futLJre payments discoLJnted at a market rate of interest for a similar debt instrument. A provision for impaimenl of debtors is established when there is objective evidence that the amounts due will not be collected according lo the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in income or expenditure. 27 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) Financial Liabilities Trade creditors Trade creditors payable within one year that do not constitute a financing transaction are initially measured al the transaction Pri￿ and subsequently measured at amortised cost, being the transaction price less any amounts sellled. Where the arrangement with a trade creditor constitutes a financing Iransaclion, the creditor is initially and subsequently measured at the present value of future payTnenls discounted at a market rate of interest for a similar instrument. Borrowings Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured al amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges. Provlslons The Association recognises provisions where il has an obligation at the reporting dale as a result of a past event, which il is probable will result in the transfer of economic benefits and that obligation can be eslimaled reliably. Provisions are measured al the best estimate of the amounts reqUI￿d lo 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 al the pre-tax discount rale that reflects the risks specific lo the liability. The unwinding of the discount is recognised within interest payable and similar charges. Intangible Fixed Assets Intangible fixed assets are staled al cost less accumulated amortisation. Intangible assets acquired on business combinations are capilalised separately from goodwill if the fair value can be measured reliably on initial recognition. Provision is made for any impairment. Depreciation is provided evenly on the wsl of intangible fixed assets lo write them down lo their estimated residual values over their expected useful lives. The principal period used for intangible assets is five years. Tangible Fixed Assets- Housing Properties Housing properties are properties for the provision of social housing and are principally properties available for rent. Completed housing properties are slated al cost less accumulated depreciation and impairment losses. Cost includes the cost of acquiring land and buildings, and expenditure incurred during the development period. Only the direct overhead costs inclLJding interest associated with new developments or improvements are capilalised. Housing properties are transferred al cost lo completed properties when they are ready for letting. Works lo existing properties which replace a component that has been treated sepaffitely for depreciation purposes, along wlh those works that enhance the economic benefits of the asset, are capilalised as improvements. Such enhancements can occur if improvements result in either.. An increase in rental income-, A material reduction in future maintenance costs., A significant extension lo the life of the property. 28 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) Depreciation of Housing Properties Freehold land or assets under construction are not depreciated. The Association separately identifies the major components of ils housing properties and charges depreciation so as lo write down the cost of each component lo its estimated residual value, on a slraight-line basis over its estimated useful economic life. The Association depreciates the major components of its housing properties based on the following.. Building Components Years Building Components Years Structure 501100 Central Heating 30 Windows 30 Boilers 15 Kitchen 20 Roof 60 Bathroom 30 Environmental Worf(s 30 Electrical and Mechani¢al 10140 Impairments of Fixed Assets An assessment is made al each reporting dale of whether there are indications that a fixed asset lincluding housing properties) may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist. the recoverable amount of the asset is estimated. Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs lo sell and value-in-use of the asset based on its service polenlial, are recognised as impairment losses in income and expenditure. Recognised impairment losses are reversed rf, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in the Statement of Comprehensive Income. On reversal of an impaimient loss, the depreciation or amortisation is adjusted lo allocate the asset's revised carrying amount (less any residual value) over its remaining useful life. other Tangible Fixed Assets Other tangible fixed assets are initially measured al cost, net of depreciation and any impairment losses. Dep￿CIall0n is provided on all tangible fixed assets, other than freehold18nd and investment properties, at rates calculated lo write off the cost or valuation of each asset lo its estimaled residual value on a slraight-line basis over its expected useful life, as follows.. Freehold Premises ICT Hardware Fixtures & Fittings 50 10 Residual value is calculated on prices prevailing al the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected al the end of its useful life. 29 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) Reserves Income and Expendlture Reserve Income and Expenditure Reserves are unrestricted reserves and represent surpluses generated from operating activities. Designated Reserve These funds are those unrestricted funds which have been set aside by trustees for an essential spend or future purpose. These funds form part of unrestricted Income and Expenditure reserve. Generally, these funds cover the replacing or improvement of the charity's assets. Restricted Reserve Reslricled Reserves are tied lo a particular purpose. These funds are specified by a third party and impose terms and conditions stipulating the funding must be spent on a particular purpose. Revaluation Re$grv9 A revaluation reserve is a noncash reserve and created to reflect the true value of the asset representing the deemed cost of housing properties on transition to FRS102. Critical areas of judgement and accounting estimates In preparing these financial statements, the keyjudgemenls have been made in respect of the following= Pension Liability The critical underlying assumptions in relation lo the estimate of the pension defined benefit scheme obligation such as rates of inflation, mortality, discount rale and salary increases. These assumptions have the ability to influence the value of the liability. These assumptions are based on the actuarial advice. Bad Debt Provision Assumptions between budgetsry and debt provisions are assumed. These assumptions include eslimalion of uncertainty against future recognition of certain accounts receivable as being uncollected. Leases In categorising leases as finan￿ leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the Heart of England YMCA. Useful lives of depreciable assets Management reviews ils estimate of the useful lives of depreciable assets at each reporting dale, based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of ￿rtain software and IT equipment and changes to decent homes standards which may require more frequent replacement of key ¢omponenls. 30 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) 3a. Partlculars of turnover, cost of sales, operatlng costs and operatlng surplus 2024 Turnover Operatlny expendlture Operallng Surplus IIDefi¢ltl Social housing l•ttings 6,381,770 4,899,435 1,482,335 other Social housing activitigs Charges for support S8rvice5 Other social housing 99,422 73,512 172.934 115,1341 14,029 29,1631 84,288 59,483 143.771 Actlvltles other than Soclal Houslng Amrtised govemrnEnt grants Childrens servi￿5 Conf8r8ncing servic8s,Youth and caf8 Other non social housing 2,813 271,967 300,551 11,156 586.487 2.813 158,5841 1157,6331 11,156 1202.2481 1330,5511 1458,1841 1788,7351 7.141.191 5.717,333 1.423.858 2023 Turnovor Operating expenditure Operating Surplus IIDefi¢ill Soeial housing lettings 5,057,722 4,393,578 664,144 othar soeial housing aetiviti•s Charges for support servi￿$ other social hou51ng 116.945 29,310 146.255 15.0571 1,267 6.324 111.888 28,043 139931 Activitie5 Other than Social Housing ortised govemrrent grants Children5 services Training and conferencing servic8s and cafe Other non social housing 2.813 331,116 332,298 53,060 719,287 2.813 78,439 1112,1941 53,060 22,118 1252,6771 1444,4921 697,169 5,923,264 5,097,071 826,193 31 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) 3b. Particular5 of incom8 and 8XP8nditure from social housing lettings 2024 2023 General n88d5 housing Total Total Rent re￿1vable net ol identifiable seNice charges knrtIS8d gov8rnm8nt grants Turnover frorn social hou51ng lettlngs 6,162,786 218,984 6,381,770 6,162,786 218,984 6,381,770 4,838,738 218,984 5,057,722 Management Service chaige costs Routine maintenance Major repairs exp8nditur8 Bad debts Depreciabon of housing properties Operating 8xpenditur8 on social hou5ing18ttings 1,837,293 2,025,113 543,016 29,799 97,337 366.877 4,899,435 1,837,293 2,025,113 543,016 29,799 97,337 366,877 4.899.435 828,698 2,382,701 854,171 15,0411 333,049 4,393.578 Operating surplus on social housing 18tting5 1,482.335 1.482.335 664.144 Vold losses 86.629 86.629 162.656 4. Accommodation in management and development Al the end of the year accommodation in management for each class of accommodation was as follows- 2024 Number 2023 Number Social Housing neral Housing Social Rent Total Owned 234 234 220 220 Units managed on beha￿ of other organisalions General needs Total Managed 116 350 116 336 Accomodation in developrrÉnl at year end 27 32 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) 5. Operating Surplus The operating surplus is arrived at after charging I Icreditingl.. 2024 2023 Release of deferred capital grant 1250,0721 1250,0721 PIovi5ion of Bad Debts 31,747 140,5641 AtrK)rtisation of intangible fixed assets (per note 101 60,222 55,279 Depreciation of housing properties (per note 111 367,257 333,473 Depreciation of other tangible fixed a5seis (per note 121 167,340 151,239 Operating lease rental5". extemal rnanagerrEnt charges 444,510 460.463 vehicles and equiptrEnt 8,654 Auditors, retnuneration Fees payable to the Corrpany's auditors for the audit of the Financial Staternents 18xcluding VATI 23,000 21,000 Total audit 58riiic8S 23,000 21,000 Tax cotry>liance servic88 Total non-audit 58rvic8S 33 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued 6. Interest receivable and similar income 2024 2023 Interest receivable and similar income 304 304 7. Interest and flnanclng costs 2024 2023 Nel interest payable YMCA Pension Fund Bank interest Amortisation of issue costs 7,350 155,904 2,700 165,954 390,520 2,700 393,220 8. Employees Average monthly number of employees employed in the year were.. 2024 2023 Fk)using and support acti￿tieS rs8ries Ntsintenance Learning & Comnwnities N&nagement and administration 60 10 57 10 13 12 96 91 The number of staff who were paid more than £60,000 in the year lincluding Executive Directors) were.. 2024 2023 £60,001- £70,0(K) £70,001- £80,0(K) £80,001- £￿,0[x) Employee costs during the year were as follows.. Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) 2024 2023 Employee Costs.. Wages and salaries Swial security Costs Pension costs Life assurance Costs 2,493,583 199,640 49,476 14,693 2,757,392 2,205,256 187,599 40,035 12,238 2,445,128 Included within Wages and Salaries are staff redundancy and selllemenl costs of £132,80212023'. £10,352). 9. Key management personnel The key management personnel are defined for the purpose of this note as the Members of the Board and Executive Directors of the Association, the laller having executive responsibility. This satisfies the definition included in the Accounting Direction for Private Registered Providers of Social Housing 2022. The aggregate remuneration for key management personnel Charged in the year is.. 2024 2023 Wages & Salaries Benefits in kind Employers NIC Pension contributions Setdernents 255,563 10,956 27,699 9,094 108,355 292,309 9,000 35,189 12,134 411,667 348,632 Settlement costs include amounts both paid in the year, and those accrued at year end, lo be paid in the following financial year. The Chief Executive is an ordinary member of the Association's pension scheme. No enhanced or special terms apply. The Association does not make anyfurther contribution to an individual pension arrangement for the Chief Executive. The number of Executive Directors lo whom retirement benefits are accruing under defined benefit schemes was 1 12023.. 11. None of the Board Members received emoluments. The emoluments of the highest paid Executive Director, the Chief Executive, are shown below- 2024 2023 Highest Paid Director Remuneration Benefits in kind Pension contributions 76,319 4,500 2,425 83,244 73,840 4,500 2,350 80,690 35 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) 10. Intangible Fixed Assets IT Software Total Cost At 1 April 2023 Addilions At 31 March 2024 338,532 11,214 349,746 338,532 11,214 349.746 Amortisation At 1 April 2023 Charged in the year At 31 March 2024 170,574 60,222 230,796 170,574 60,222 230,796 Net book value At 31 March 2024 118,950 118,950 At 31 March 2023 167,958 167,958 36 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION 11. Fixed Assets- housing properties Soclal houslng Soclal houslng properties held PTopertie6 held for for l•tting 19tting Houslng propertles for letting under onstruction Total houslng propertK•s Freehold Lottg Leasehold C￿1 At 1 Ppril 2023 ditions Tr8nsfers Disr*)sals At 31 Ma￿h 2024 15.640.988 630,406 4.149.613 2.901.722 15,949,9S91 20,421,W7 2,901,722 135,0251 5.908.423 6.511 21549411 636.917 1101376 23.287.704 Dgprg¢i$tion impainngnt At 1 Poril 2023 Deprec181ion eh8roed In yeBr At 31 March 2024 2.580.349 353.355 2 933 704 214,745 13,902 2,795,094 367,257 3.162.351 Net bookvalue At 31 March 2024 18615707 1 101 376 21112S 353 At31 March 2023 13.060.639 415,661 4,149,613 17,625,914 The existing charges held with Charity Bank are on freehold properties, 301 Reservoir Road, 109 Grosvenor Road and 43 Henrietta Street. The Association also has a new loan with Unity Trust Bank for a loan value of £3.4M, which has now been fully drawn down. The loan with Unity Trust Bank is secured against 200 Bunbury Road, Endeavour Ct, St Margaret's and Bishopsgate. Heart of England Community Foundation also hold charges against 200 Bunbury Road. Housing properties book value net of depreciation comprises 2024 2023 Freehold land and buildings Long Leasehold land and buildings 19,717,082 408,270 20,125,3S2 17,210,252 415,661 17,625,913 Expenditure on works to existing properties 2024 397,550 397,550 2023 466,985 466,985 kn)unts charged lo income and expenditure 37 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) Note 11. Fixed Assets - housing properties (continued) Social housing assistance 2024 2023 Total accumulated social housing grant received or receivable at 31 March.. 7,465,820 7,094,570 Total accumulated other grant re￿iVed or re￿1vable at 31 March.. 1,709,761 1,709,761 Recognised in the Statement of Comprehensive Income 1,320,003 1,069,931 Held as deferred Income 7,855,578 7,734,400 Finance costs 2024 2023 Aggregate amount of finance costs included in the cost of housing properties 49,454 49,454 Impairment The Association considers individual schemes lo be separate Cash Generating Units ICGUI when assessed for impairment, in accordance with the requirements of Financial Reporting 102 and SORP 2018. Where this is not possible, individual homes are considered as separate CGUS for the assessment of impairment. 38 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) 12. Tangible Fixed Assets- Other Freehold Pr$ml8o8 Flxtures and leT Flttlng$ rdw8r• Motor Vohi¢1o$ Totsl Cost At 1 *pril 2023 Addl￿OnS 1.619.691 304,615 46,298 24.502 3.388.923 58.200 11,902 11 874 1.461,891 Transfers At 31 Match 2024 1,642.842 350,913 24,502 3,400,148 Depreciation At 1 *pril 2023 Charged in ihe year At 31 March 2024 218.596 1.174,470 252,836 24.502 1.670.404 167 340 1,837 744 259,641 1,246,154 307,447 24,502 N¥t book valutr At 31 March 2024 215,737 43.466 31 March 2023 1.401.095 263,645 51,779 1.716.518 13. Debtors 2024 2023 Due within one year Rent and se￿1￿ charges receivable Prepay￿EntS and accrued inco 599,366 80,131 679,497 283,111 185,123 468,234 Other debtors Less.. provision for bad and doubtful debts 30,528 317,558 {287,030) 31,779 228,994 {197,215) 392,467 271,019 39 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) 14. Creditors: amounts falling due within one year 2024 2023 Bank loans (note 161 Trade creditors Renl and SeN1￿ charges received in advance Deferred grant incon Corporation Tax Other taxation and social security Unpaid contributions for retirement benefits Other creditors Credit balances on Arrears less Bad Debt Provision Accurals and deferred income 138,614 89,347 117,968 191,643 305,240 290,390 44,453 10,728 94,751 13,391 602,956 49,230 11,670 91,538 37,107 617,160 1,299,480 1,406,705 15. Creditors: amounts falling due after more than one year 2024 2023 Bank loans (note 16) Deferred grant income 6.340.227 3,747.735 10.125.806 10.019.478 16.466.033 13.767.213 16. Debt Analysis Due within one year 2024 2023 Bank loans 138,614 138,614 117,968 117,968 Due after more than one year Bank loans Less.. issue costs 6,412,400 72,172 6.340.228 3,795,107 47,371 3.747.736 Total loans 6,478.842 3,865.704 40 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) 16. Debt Analysis (continued) The Association has a loan facility of £4,000,000 wth the Charity Bank and also a £3,400,000 loan facility with Unity Bank, which had the final £2,750,000 drawdown in the year. The Loan with Charity Bank is for 25 years from the date of the final drawdown and Carries an interest rate of 2.25 per¢enl above the Bank of England base rate. The loan is secured on specific charges on freehold properties, 301 Reservoir Road, 109 Grosvenor Road and 43 Henrietta Street. The Loan with Unity Trust is divided into three tranches. Loan 1 Loan 2 Loan 3 AmoLJnt £250K, term 25 years with an interest rate of 2.25 /0 over Bank of England Base Rate Amount £400k term 10 years with an interest rate of 2.25 /0 over Bank of England Base Rate Amount £2,750M term 25 years with an interest rate of 30/0 over Bank of England Base Rale The loan with Unity Trust is secured on specific charges on the following properties 1. 200 Bunbury Road, Northfield, B31 2DL 2. Endeavour Court, 20 Chelmarsh Road, Coventry, CV6 3LB 3. Sl Maryarets Road, Coventry, CV1 2BT 4. Bishopsgate, 20 Aldbourne, Coventry, CV14ER The loans are repayable as below.. 2024 2023 Within one year or on demand One year or rrK)re but less than two years Two years or nK)re but less than five years Five years or more 138,614 165,023 572,085 5,675,292 6,551,014 72.172 6.478,842 117.968 130.176 444.157 3,220.774 3,913,074 47,372 3,865,702 Less" armrtised issue costs 17. Pension obligations Heart of England YMCA participated in a contributory pension plan providing defined benefits based on final pensionable pay for employees of YMCAS in England, Scotland and Wales. The assets of the YMCA Pension Plan are held separately from those of Heart of England YMCA and at the year end these were invested in the Mercer Dynamic De-risking Solution, 650/0 matching portfolio and 350/0 in the growth portfolio and Schroder (property units only). The most recent completed three year valuation was as at 1 May 2023. The assumptions used which have the most significant effect on the results of the valuation are those relating to the assumed rates of return on assets of 4.56Q/., the increase in pensions in payment of 3.180/. (for RPI capped at 50/. p.a.), and the average life expectancy from normal retirement age lof 651 for a current male pensioner of 21.5 years, female 24.0 years. and 23.1 years for a male pensioner, female 25.7 years, retiring in 20 years, lime. The result of the valuation showed that the actuarial value of the assets was £103.1 m, which represented 92Q/ts of the benefits that had accrued lo members. The Pension Plan was closed lo new members and future Servi￿ accrual with effect from 30 April 2007. With the removal of the salary linkage for benefits all employed deferred members became deferred members as from 1 May 2011. 41 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) 17. Pension obligations (continued) The valuation prepared as at 1 May 2023 showed that the YMCA Pension Plan had a deficit of £9.1 million. Heart of England YMCA has been advised that il will need lo make monthly contributions of £4,075 from 1 May 2024, being £3,090 for the deficit contribution payments and £985 for the contributions to the plan expenses. This amount is based on the current actuarial assumptions las oudined above) and may vary in the future as a result of actual performance of the Pension Plan. Agreed future deficit contributions have been discounted using rate of 5.25°/012023.' 3 /0) The current recovery period is 3 years commencing 1 May 2024. Witkin or* year Repayab￿ orÉ Two lo five to two years years After five years After r￿re than 0￿ year Total Total 2024 2023 AS at 31st March 2024 31.676 33,339 38,026 71,365 103,041 201,920 A5 at 31st March 2023 107.108 155 983 201920 245.048 In addition, Heart of England YMCA may have over time liabilities in the event of the non-payTnenl by other participating YMCAS of their share of the YMCA Pension Plan's deficit. It is not possible currently to quantify the potential amount that Heart of England YMCA may be called upon to pay in the future. 18. Provisions for liabilities and charges YMCA Pension Obllgatlon Leave Pay Total At 1 April 2023 Ulilised I Provided At 31 March 2024 201,919 98,878 103,041 41.591 12,622 28.969 243,510 111,500 132.010 The YMCA Pension obligation is referred lo in note 17. The provision is based on the nel present value of payments agreed at the year end. The provision will be adjusted followng the triennial valuations in the pension scheme, either increasing or decreasing the provision with the opposite entry being shown as operating costs within income and expenditure. The unwinding of the discount is shown as a finance cost. The leave pay provision represents holiday balances accrued as a result of services rendered in the current period and which employees are entitled to carry forward. The provision is measured as the salary cost payable for the period of absen￿. 19. Share Capital Heart of England YMCA Limited is a Company Limited by Guarantee. No shares have been issued. 42 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) 20. Cash Flow from Operating Activities 2024 2023 Surplusl Deficit for the year (net of transfer to reslricled reserves) Adjustments for non-cash items.. Depreciation of tangible fixed assets Arnortisalion of intangible assets Decreasel Ilncreasel in stock Decreasel Ilncreasel in trade and other debtors IDecreasell Increase in trade and other creditors Decrease in provisions Gain on disposal of propety, plant & equipment Government grants amrtised in the year Interest payable Interest receivable Not cash gen8rat8d from opèratlng actlvltlos 1,070,994 660,239 534,597 60,222 484,712 55,279 1121,4481 1142,9411 1111,5001 {13,9261 323,222 {28,4111 1250,0711 393,220 304 1 432 769 1250,0721 165,954 1 396 997 21. Capital Commitments 2024 2023 Ewenditure contracted for bul not provided for ExpenditLJre authorised by the board, but not contracted 1,479,986 1,284,101 2.764,087 4,294,044 4.294.044 The above commitrnents will be financed primarily through bank borrowings with some contribution from reserves. 22. Contingent assets I liabilities The Association had no contingent assets at 31 March 202412023.. nill. The Association receives capital grant funding from the Homes and Communities Agency which is used lo fund the acquisition and development of housing properties and their components. In certain circumstan￿$ upon disposal of grant funded properties, the Association is required lo recycle this grant by crediting a Recycled Capital Grant Fund. As the timing of any future disposal is uncertain, no provision has been recognised in these Financial Slatemenls. 43 Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements {continued) 23. Leasing commitments The total future minimum lease payments under nOn-¢an￿lIable operating leases are as sel out below. Leases relate to land and buildings, aerials, vehicles and office equipment. 2024 2023 Within one year Beiwn im) and fi¥e years 38,000 152,000 190,000 6,0(K) 6,000 24. Analysis of Debt 2023 Cash Flows 2024 £ OOOS 3,748 118 £ OOOS 2,592 £ OOOS 6,340 138 Long-term borroknrings Short-term borrowngs Lease Liabilities Total Liabilities 3,866 2,612 6,478 Cash and Cash Equivalènts Total Net Debt (1,1801 2,686 11,0531 1,559 {2.2331 25. Related parties Disclosures in relation to key management personnel are included in note 9. Insurance has been purchased lo indemnify the Iruslees against any neglect or default on their part. The cost to Heart of England YMCA for the year was £2,63412023.' £2,765). Trustees received no remuneration. Trustees were however reimbursed for travel expenses during the year to a value of £55612023.. £9861. One trustee also made unrestricted donations to the Association amounting lo £708 in the year12023.. £ NIL) 26. Other Income 2024 2023 Heart of England Community Foundation restricted grant 40,053 Total Other Income 40,053 This relates to the Heart of England Grant released relating to Northfield Development of £40,053. Dwusign Envelope ID.. ODFDC76F-F71842E8-A80fk3A379961DEB4 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION 27. Post Balance Sheet Events Since the year end, YMCA Heart of England has agreed the purchase ofthe Orchard building from Clarion Housing for an amount of £4m. The purchase will lake place during the 2024125 financial year and will be funded by both reserves and a bank loan. Agreement has been reached wth Charity Bank for the bank loan, with terms lo be signed off by the board in due course. 45