DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION TRUSTEES, REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2025 Company No: 00170981 Charity No: 218808 RSL No: LH4783 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) Contents Pages Reference and Administration Infomiation 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 Reserves 22 Statement of Financial Position 23 Statement of Cash Flows 24 Notes to the Financial Statements 25-44 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating 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- Resigned 2nd September 2024 Michael Hew Graham Cadd - Resigned 2nd September 2024 Mark Farmer- Appointed 12th September 2024 Gabriel Imevbore Mark Bruckshaw Frances Steele- Appointed 12th September 2024 Stephen Marchanl- Appointed 12th September 2024 Edward Ansah- Appointed 12th September 2024 Registered Office: Heart of England YMCA 301 Reservoir Road Erdington Birmingham England B23 6DF Auditors: Cooper Parry Group Limited Cubo Birmingham 4th Floor Two Chamberfain Square Birmingham B3 3AX DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) The Board of Trustees is pleased to present its report and audited financial statements for the year ended 31 March 2025. 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 it may be amended from lime to lime. Consequently. the Association is part of the Worldwide YMCA, a Christian Movement which seeks lo 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 to associate their efforts for the extension of His Kingdom. Any drfference 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 transformation 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 leaching 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 Mlsslon 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,, Iruslees 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. DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) Achievements. performance and future developments The principal acb'vities in furtherance of the Association's ch8ri18ble objectives are= The provision of supported accommodation with associated support ServI￿S The provision of social housing at below-markel 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 lo setvice users, the local communities that we serve, and our staff and volunteers The provision of youth clubs and assorted informal 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 fomierly 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 schemes165 /ol and general needs135 /ol. 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 and 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 faTrd by the Association as il responds lo some financial challenges created through loss of income and the focus on recovery lo sustain key services. Chair's Statement I wanted to start my statement this year by reminding us all of our MISSION and VISION. Our MissiTon ig tr) '. Inspire young people to discover their potential so that they can live life in 811 ils fulness. Our Wision is of a robust, high profile and credible Christian charity that, through ils programmes and facilities, intervenes lo slop young people being excluded and helps them to truly belong, contribute and thrive within their community. The Board of trustees and l are delighted that through the excellent leadership of the CEO and the Executive Leadership 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 purpose} and the majority of our 10-poinl strategic plan. 11 has been a great honour and a privilege lo work alongside Ihe Iruslees, CEO and senior team of our wonderful Charity, lo realise these achievements. The Board of trustees extend their hearlfell thanks to all the staff, volunteers and stakeholders that have made this year a resounding success. DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) As with many charities we have had lo comply with recent regulatory standards, changes in govemmenl policy and have adapted services regardless of the economic challenges and cost of living implications. We have stayed focused and intentional in our steps lo ¢onlinue to achieve and support those most in need. This year we have seen The successful conclusion of our 10-poinl Strategic Plan and the introduction of our 5 year strategy for the organisalion. This has been informed by stsff, residents and our stakeholders. The purchase of 83 units of supported housing in Erdinglon, Birmingham which has brought them into YMCA'S ownership after previously managing these on behalf of Clarion Housing. The redevelopment of our Coppice Building which was repurposed into a new modem head office facility. The Creation of 3 new spaces for hire in The Coppice and by moving staff across to our new offices we have freed up an additional 5 spaces lo hire which means we now have 8 new spaces available lo hire, to help generate valuable revenue for the young people we serve. The achievement of IIP Silver a significant focus l upgrade from Bronze. The achievement of the Matrix Standard, a nationally recognised qualification that endorses how well we provide advice and guidance. Stakeholder engagement has increased by 50 /0. The completion of 100'/0 of planned works from our Stock Investment Programme, ensuring that our homes continue to remain safe and compliant. 87,10 of residents reporting satisfaction with the repairs Servi￿ they receive 98°/o of all repairs raised completed within the required timescale. The delivery of 201 Community Engagement initiatives l events with a total of 2747 people attending these events throughout the year demonslraling very positive engagement and allendance. 970/0 of young people who have accessed our Youth Services demonstrated an improved attitude, behaviour, response orother positive outcome following their attendance on one of our youth programmes showing the positive impact our services have on young people. The occupancy rale across our housing schemes maintained al 980/0 throughout the year, minimising void loss and maximising our revenue from our housing schemes. We have remained 1000/9 compliant in regards lo Health and Safety and regulatory requirements. Our Tenant Satisfaction rating improve by 80/0 Wlth 860/0 of residents slating that they are satisfied with YMCA Heart of England as their Landlord. We have.. Welcomed two new tTUStees onto the board and have co- opted three. Successfully delivered against our Operations Service Improvement Plan Continued to respond positively to our Staff Survey. Completed our Finance Audit signed off and agreed our Accounts for the Year to March 2024 which reported a surplus of £1,070,994. Been able lo offer a 3Q/. Pay Increase for our valued staff which has been very much welcomed, given the economic challenges and cost of living rises. Completed our internal audit and positively responding lo the recommendations required. Successfully recruited lo our role of Head of Housing and Chaplaincy Support DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) 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 testimony lo Iruslees 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 organisalion continues to build on the legacy of George Williams by ensuring that we place God at the ￿ntre of all we do. The Board of Trustees are looking forward lo seeing what next year brings and the impact we will continue to have on our service users, our stakeholders and the communities we serve. Thank you to everyone who has made this year's annual report one that speaks volumes about the worf( we continue to do and the individual lives we continue to impact on for the better. Statement of Public Benefit The Trustees consider they have complied with the 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 service areas which provided benefit not only lo our service users but also lo the wider community. We work 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 350 bed spaces of supported accommodation each night. These properties provide supported housing lo vulnerable and disadvantaged groups. We work with people lo provide skills and confidence lo move towards independent living and lo begin contributing lo the wider community. In addition, we provided 66 bed spaces of move-on general needs for people who no longer require support. These 8re let al below market rents. Flnanclal Revlew Statement of Comprehenslve Income Overall income increased this year by 5 /0. The variance is due lo a combination of factors, including a 7,/0 rent increase, as well as increases in our Service Charges. Alongside that, we also had the first year of full use of our new development of 27 units al Northfield, Mary Court. We have also been awarded two Lead Worker contracts from Birmingham City Council, which began in November. Operating costs increased by 7°/0 compared to the previous year. This was mainly due lo a combination of increased repairs and maintenance, as well as service chargeable costs within the housing schemes, with added inflationary costs due to the general rise in prices. The repair costs were particularly significant within the Housing sector, as there were a number of properties which needed bathroom facilities updating, and Void periods were used as an opportunity to get a lot of this work completed. The year saw the purchase of The Orchard, our 83 property housing scheme in Erdinglon. We had previously been managing this as a part of a management agreement with Clarion Housing, bul from September 2024, now own the building outright. We have also completed the refurbishment of our Central Service office space in the Coppice building in Erdington. This has allowed us lo open up previous space that was being used by staff in the Chris Bryant Centre, lo offer more facilities for room hire and help develop our community work, looking lo bring financial retums lo support other areas of the organisation. The Youth and Communities section of the organisation have all been facing financial Challenges through the year. The current economic situation makes il difficult to obtain the extemal funding which is needed in this area. bul a number of initiatives are being looked al to turn this around in the coming year. DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) Included in this is a partnership which has been running with 2MuchPassion. From March 2024, Eden Café has been run in partnership with 2MuchPassion, which generates a guaranteed rental revenue scheme for YMCA Heart of England. This partnership is planned lo continue throughout the next year. Interest costs have increased by 55.10 compared lo last year due to the drawdown of the new loan facility with Charity Bank, which was required for the Completion of the purchase of The Orchard. Statgmgnt of Financial Position Growth In asset base Intangible Assets have reduced due lo the continued depreciation of the assets held. Included in the asset base is the cost of the CRM software. This was fully implemented in June 2024 The total value of housing assets increased by 23 /0 compared lo the previous year and other assets went down by 2Q/o. The purchase of The Orchard building has led to the increased value of our housing assets. which was previously leased from Clarion, and is expected to help produce a strong relum on the investment. We continue lo deliver an ambitious development programme while maintaining a resilient balance sheet. Liquidity Creditors within one year has increased by 18 /0, this is mainly due to an increase in accruals, which includes a large backdated accrual for the rental lease at Hary Watton House. The notice for this was received during the year, dating back lo June 2020, with an agreement over the amount reached with Birmingham City Council at the end of the financial year. Our debt held has increased by 48 /0 due lo the drawdown of the new loan with Charity Bank, needed to fund the Orchard purchase. The loan debt at year end stood £9.614m. Total Reserves It was another strong performance in regards to our Income and Expenditure this year. A focus on the organisation's core services has helped to improve ils financial performance. The areas of concern have been highlighted and measures taken to improve the financial performance in these sections going forward. The board recognises that the economic situation is difficult. The board is aware of the challenges that these factors are creating for charities, particulady in regards lo obtaining external funding and il is committed lo managing the organisalions finances. The board are working lo build ils organisation's cash reserves and currently working to build its cash reserve to 3 to 6 months. The purchase of The Orchard was a key priority for the organisalion when it became available. The scheme has been the largest and strongest performer financially, therefore il made sense lo ensure the work could continue at this scheme, with a long-term return expected on the investment. The purchase required using £700k worth of the company's cash reserves. 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 to 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. DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) YMCA Heart of England deficit d8cr8as8d to £74,456 from £103,041 last year. Bank Bank balan￿S at the year-end stood at £1.15m12024 £2.2ml with the primary source of the decrease due to the substantial payment from reserves towards the acquisition of The Orchard property. Immediatg Operating Environment From April 2025, 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 external economic situation alongside the financial issues al Birmingham City Council and inflation have made the operating environment more difficult, particularly for charities, and pla￿$ more stress on external funding, especially in regard lo youth services. Our Boards focus has been on Liquidity and sustainability during this reporting year and they will continue lo 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 adivities 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 our resources need to be managed efficiently so we can support as many people as possible. Our annual budget planning prO￿8S 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 subcommillee 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 Fundl our spending plans are subject to 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 performance against our own value for money targets and against a series of common metrics with which lo measure economy, efficiency and effectiveness. The purpose of the Value for Money approach is to.. 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 sel out below a comparison bebmeen this year and last on our performance. Additionally, we have compared our perf0mlan￿ lo the National Housing Federation Sector Scorecard using the median. DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) Regulatory Metrics RSH Motric 2024125 2023124 Sector Scorecard National Federation Median Reinvestment % 17.8 12.5 New supply delivered 27 3. Gearlng % 29.8 18.2 35.8 4. EBITDA MRI Interest cover % 313.6 460.0 181.9 5. S￿101 housing cost per unit £ 14,260 12,672 4,230 6A. Operating margin (social housing) /. 21.7 23.2 22.2 6B. Operatlng Margln (overall) IIA 11.2 15.0 20.2 Return on Capltal Employed Q/0 1. Relnvestment Yo We recognise there is a backlog of unmel 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 pe￿entage of the value of total properties held. This year after drawing down our loan with Charity Bank we were able lo complete the pU￿hase of The Orchard. 2. New supply delivered /. The focus for the future is reinvestment in existing housing stock lo ensure it is fit 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. 3. Gearing °/0 This represents our net debt lo lenders as a percentage of the total cost of our housing properties. We have been successful in working wtth Homes England and other partners to keep borrowing as low as possible. Whilst this ratio did increase, due lo the additional loan required lo purchase The Orchard, we understand to deliver social value we need lo be financially sound and make the most of our resources to deliver the services that our customers need. We also need to provide assurance to our lenders and funders. 4. EBITDA MRI Interest Cover • This represents the level of surplus compared to the interest payable. The decrease this year was due to the new loan being ulilised, leading lo increased Interest payments. DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) 5. Headline 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 lime analysing our Cost per unit. Our Strat￿1¢ aim is for our headline social cost per unit to reduce each year. We recognise there is more lo do, and our aim is lo 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) % This represents operating surplus from social housing lettings divided by turnover from social housing lettings. The Operating margin for social housing lellings decreased from 23.2 to 21.7 from 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 lo improve ils cost management, including tracking spend closely, standardising its procurement processes, negotiating better prices with contractors. 6B. Operating margin (overall) ' Overall operating Margin decreased lo 11.2 from 15.0 largely lo do with reduced revenues from the Youth & Community departments. 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 capltal employed il This compares the overall operating surplus to lolal assets less current liabilities. The level of return is lower compared lo the previous year,. this is due lo reduced returns within the Community departments. 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 il 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 lo achieve our strategic objectives. Performance against this is being worked, facilitated through the use of metrics lo enable the Board and commillees to assess whether performance remains within the risk appetite parameters. The Chief Executive reports lo the Board on the effectiveness of the inlemal 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 lo ensure that the risks arising are managed appropriately and activities remain within the agreed risk appelile. 10 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) Rfjs*s Rl8k responses Actions duriny thÈ ytarto 4trÈngthÈn tontrols *ks Exafftpleg of corttroI4 in place Flnancl81 capaclty and income ￿lleCtIOn perfomance limits the delivery of growth and business transformation. Increase bank interest rates and liquidlly risk. Treasury managememslraiegy monllorlng Establishtnenl ot sustainabl&finance frammrk Key Ferfotmanoe Indi￿19r$ reported lo the ENerutivo Team rnonlhty and Board ￿ monthly. Buslness Plan Ènd stress-testing whlch dÈmon$tr2te eCDnomiC Stres8es together wllh sn increased develo eni ramme. Monitor and se&k professional adwc9. Regular Rryul¥r stress testing Monitoringthe mètriesthatartused Iorlin8nthal risk. Income ccAlecbon and Brrears perfomiance Reputationaldamage dueto bad puNiciiy Independent Inl&rnal reVI￿of all Incidents Changes environtnenl e.g. Lw81 Aulhonty Cotntnissioning coming und8r tougher budgéts. scrutiny and10rd8￿y8. on becoming Environmental and sustainably Employer and Neellhe Government Enwronmenlal Monitoring rOll￿ver time. Build gDOd r￿at￿ft8 with commissioners. Bé proacbve but maintain Keep up tD date with turrtnt aff£its, feedbatkon local. re9￿al. and national guidancé around Housiry key prioribes. Belter InlonnÈtlon man emeni8nd irsckln Promote responsithlity forlhe enyironfflent and mmunicale arhd implement policy lo workforce Llinitnis8 waste by r9dud￿n, re-usp and recycling tnethods Implementalionoftraining programTnelo all staff. Comply rylh rglevanl nvironrngntsl legK4ationlregulabon advlee and Inftsrmatlon for Stsff 8nd enc￿￿rage Ihem to develo Independeni benchmarking of executive a senior marbagers salaries. Gender pays gap data. exlemal benthmaTking, tnoniloring ol changes lo staff establishment and iumover Review currént and lutur developm8nt P￿leciS wlh a vi8w to only sp8nd titne On dpvEIo ents that are most likel to c Stallise. sp￿la11$1 team in plac& wilh subject experts embedded across ihe business KPI Tnonitored by th* Bowrd ?nd wmtnittees C￿m￿lanCe issues rnonitored by the Board Ove￿Oh1 ol at￿vIlY by Direc￿￿ ol Operabons Management Plans in placE for key risk areas fi￿, asbestos elc. Treasury tnanagemenl slralegy monitoring Llonilor on weekly bosis, work with tenants and the lo￿1 ?uthorily. Recyultment & Reieniion ol st2ff. attract 8nd retaln people with ihe sk1115 and experlence r¥uired to dellver strBtegic plan. Avoiding the cosi ol not getting 11 Develop of employer brand. Develop of resource straiegy. Devekbprnem of hybrid woiking rn￿81. management development and coathing, Devel(pment Risk I le￿1h of time to devebp schetnes Focus on Tha Orchard and sw8abng the assets YMCA Heart ol Eng18nd does not meet Ils He8llh and Safety obli98iions as a landlord. employer, developer, and Implemenlalionofcompliancemodules acrossall Futlherdevelopmenl ol $ui1g ol KPIS Rdlout digitalisation of compliancp procegs. ourcinga npwCRM software io capture thedata for improved and rapid de￿￿10￿ tnaking and improve productivity. Improve relatsonshipwilh Housing Benelilsleam. ￿￿￿￿￿ cash payments and encourage standing orders orre-o¢curnng paymgnts bycard. Intgmal A￿ltI0¢￿s￿d on this arg?. Mapping prtsCufEmeni melhoddtsgy. liming tsl delivery ar￿ Ittsiion ol nèw hts￿e$ in ihe perith 2022-2025. Maini8inin9 and understsnding01 the markei lor Land and S106 ILeg81 agreements between local 8ulhoribes and dev￿Oper5) and invesimeni straie Implement addiiional securiiy syslems and security. Implefflenl regular assessment of internal coDlrols indepeTK1enl trom the rr an Business DevelopmeDI. Audits on Data by Risk Evolves. Internal Audit on IT eDvironmert. ServicE re-structurp around cusiotner joumpy. NÈW cornplaints procESS arhd increased locu$ on earfy and lè£rning. Customer satssfattion btsÈrd lev￿ KPI IrKrease In housingarfears due lo costof living and increase in energy pri￿$ Inv8stm8nt decisions dD apprDpriaieweighttOcotnpeb￿ strat4ic agendas. Environmpnt, Safety. grow￿ d￿lialiSa￿D￿. sir$leg￿ plan mtsnitthng, Gi￿h Strattyy Regular Strè55 TeS￿rn9, Environmentsi sir8ie9y. Value for Money sir8ie9y 10 Resilienceof ITSysLems ￿ cyber81tscks Operational govemanc£ oversight ol IT gained, Modem security ap￿lanCeS and sysletns lo proted ￿ainSt cyber-attack. Customer insight is not embgdded in business d&sign and s8rvic8 revi8w pro¢ess Voice ol the Custompr Strategy being worked on, Independ¢ni methodology for cu¥ttyner satisfaction DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating 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 lo 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 years without 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 performed 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 govemment to secure funding lo support residents and reducing the essential development work and capital repairs. The Board are satisfied the business model and str8tegy is adaptable 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 social 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 importance of supporting young people in the wider community. We firmly believe that by empowering and nurturing the next generation, we can ¢reale a positive impact and shape a brighter future. To achieve this. we are committed and will be investing in Youth next year. ResolVo$ 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, expendtture 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 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) We monitor managed cash which includes all amounts available lo finance th8 general activi118s 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 oufflow. 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 Wort(ing capital reserve to provide working capital if expenditure is needed ahead of income being received Designated reseNes sel aside to 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 uncertainly and reserves utilised lo facilitate the purchase of The Orchard, our target hasn't yet been met. Our Cash Reserves measured as at 31 March 2025 2024 £1,150M Cash Balance as at 315t March 2025 Managed Cash outflow based on 12 months forecast to the period ending March 2026 £7,665M Divide by 121£7,665M divide by 12) £638k Months of annualised forecast of ca5h1£1,150M divide b £638K 1.8 months CORPORATE GOVERNANCE We are committed lo the principles of Good Govemance. The trustees adopt the National Housing Federation's INHFI 2020 code of governance lo measure good governance practices as well as the Charity Governance Code. Dele alion and control The Board regularly reviews which matters are reserved to the board and which can be delegated. It collectively exercises the powers of delegation lo senior managers, committees or individual trustees, stsff or volunteers. The board has not reTrntly 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 sutvey.) We are currenuy working with YMCA colleagues across the region to produce comparative data for operational performance. 13 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) 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 spectfic and combined risks. The Board regulady reviews the Association's specific signfficant risks and the cumulative effect of these risks.11 makes plans lo mitigate and manage these risks appropriately. The Association considers using a Governance Committee lo lead the Board appointment process and lo make recommendations to the Board. This will include a policy for training and inducting new trustees. The Board reviews ils own performance and that of individual trustees, including the Chair. Such evaluation typically considers the Board's balance of skills, experience and knowledge, its diversity in the widest sense, how the Board works together and other factors relevant lo its effectiveness. The Board reviews ils collective effectiveness al an annual board away day. However, we have not previously reviewed the performance of trustees 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. Notwithstsnding this, the Association considers itself to have high standards of governance. The policies of the Association are determined by the Board of Trustees, which meets bi-monthly. The Association's operations are managed by the Chief Executive, who reports to the Board of Trustees. The Association 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, limitation on the spending power of individuals and control over the Association's assets. The Internal controls are subject lo regular review and are updated lo lake account of organisalional and operational changes. This included the appointment of Intemal auditors during the financial year. They have made recommendations regarding certain areas, that were focussed on, which will be taken forward and worked towards implementing where possible. 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 performance reporting to trustees through the Association's operational commillees. In the current year it will also lead to the overhauling of the Key Performance Indicators against which officers, performance is assessed. Key Management and Remuneration There were three Executive Directors and one Chief Executive of the Association during the year under review. They were= Pauline Tomlinson- Chief Executive James Bemand - Director of Finance and ICT Tom Jackson- Director of Operations The Association's policy is to review salaries annually as part of the budget setting process. This may result in a cost of living pay increase being awarded to all employees. The Association's policy is that any amendment lo the salary level of an individual employee or group of employees beyond the annual cost of living increase must be recommended by the appropriate departmental director and authorised by the Director of Finance and Chief Executive. 14 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) 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 must be recommended by the Chief Executive and authorised by the Treasurer and the Chair. The remuneration of the Chief Executive is set 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 Association. All staff and trustees are required to dedare any conflict of interest that may exist lor be perceived to 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 forthe purposes of company lawl are responsible for preparing the Report of the Trustees lincluding the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. Company law requires the trustees lo prepare financial statements for each financial year, which give a ITue and fair view of the stale of affairs of the Association and of its income and expenditure for that period. In preparing these financial slalements, the Trustees are required lo.. select suitable accounting policies and then apply them consistendy- observe the methods and principles in the Statement of Recommended Practice for Social Housing Providers (Housing SORP 20181- make judgements and estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial statements., 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 infomialion of which the Association's auditor is unaware., and the trustees have tsken 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. 15 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 Docusign Envelope ID.. 23CCBB51-E17242A8-608B-2CCFAAB92E5B HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION REPORT OF THE TRUSTEES {incorporating the Strategic Report) The Trustees are responsible for th8 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 slalements may differ from legislation in other jurisdictions. AUDITORS Under section 487 of the Companies Act 2006, Cooper Parry Group Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent lo members or 28 days after the latest dale p￿sCrIbed for filing the accounts with the registrar, whichever is the eadier. By order of the Board by. 8ABFD4357C)345& Dawn Ward Chalr and Trustee 1 September 2025 16 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 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 2025 which comprise the Statement of Total Comprehensive Income, the Statement of Changes in ReseTves, 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 statements.. give a true and fair view of the stsle of the Association's affairs as at 31 March 2025, and of the Association's incoming resources and application of resources, including its 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 Registered Providers of Social Housing in England 2022. Basis for opinion We conduded our audit in 8Cwrdan￿ 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 concern for a peritxj of at 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 Infom)atlon The other infom)alion 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 statements does not cover the other information and, except lo the extent otherwise explicitly slated in our report, we do not express any fomi of assurance conclusion thereon. 17 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 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 kno￿edge obtained in the course of the audit, or otherwise appears lo be materially misstated. If we identify such materi81 inconsistencies or apparent material misstatements, we are required lo determine whether this gives rise to a materi81 misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is 8 material misststemenl of this other infomalion, we are required to report that fact. We have nothing lo report in this regard. Oplnlons on other matters prescrlbed by the Companles 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 stffitegic report) for the financial year for which the financial statements are prepared is consistent with the financial stslemenls., and the Report of the Trustees (incorporating the strategic report) has been prepared in accordance 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 misstalemenls 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 statements 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 infomiation and explanations we require for our audit In addition, we have nothing lo report in respert of the following matter where the Housing and Regeneration Act 2008 requires us lo report to you if, in our opinion.. a satisfactory system of control over transactions has not been maintained. R8sponsibilities of tha Board As explained more fully in the Statement of Trustees, responsibilities set out on page 15, 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 inlemal control as the board determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financi81 statements, the Board is responsible for assessing the Association's ability to continue as a going concern, disclosing, as applicable, mallers 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 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 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 ststemenls as a whole are free from material misststemenl, whether due to fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is 8 high level of 8ssur8nce, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstalemenl when it exists. Misstatements can 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 taken on the basis of these financial stslemenls. 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 exlent 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 susceptible lo misslatemenl. 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) Act 2016, Companies Act 2006, Charities Act 2011, taxation legislation, dats protection, 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 performing 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 govemance throughout the year- and perfomiing audit lesling to address the risk of management override of controls, including testing 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 misststemenl in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial ststements, as we will be less likely to 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.uklaudilorsresponsibililies. This description fomis part of our auditor's report. 19 DoGusign Envelope ID.. 2FOD1EOc-72cA404￿B5A-6sEE6623FE29 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. Swdtsy.. AgA4E405295D4(É. Nichola Venables Senior Statutory Audltor For and on behalf of Cooper Parry Group Limited Slalulory Auditors Cubo Birmingham 4th Floor Two Chamberlain Square 83 3AX Dat8.. 23 September 2025 20 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Statement of Total Comprehensive Income for the year ended 31 March 2025 Note 2025 2025 Total 2024 Total Continuing Activitie5 Tumover Underfying Operations Oth81 Incom8 7,527,113 7,527,113 7,141,191 40,053 7,527,113 7,527,113 7,181,244 Operating costs 6,127,731 6,127,731 5,717,333 Operating Surplus 1,399,382 1,399.382 1,463.911 hterest & financing costs 6&7 559.789 559.789 392 917 Surpluslldeficitl for the year before tax 839,593 839,593 1,070,994 Taxation Surplusl IDeflcltl for the year 839,593 839,593 1,070,994 Total comprehenslve Income for the year 839,593 839,593 1,070,994 The accompanying notes on page 25 10 44 form part of these Financial Slalements. 21 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Statement of Changes in Reserves for the year ended 31 March 2025 Income and 8xp8ndlturo r8s8rv8 Re8trlcted Re88rv6 Revaluatlon reserve Totsl Ba18nce as at 1 April 2023 5,132.044 412,418 5.544.462 Surplus I IdefiGiII from slalement of Gomprehensive incotne 1.030.942 40.053 1.070.994 Movement in Rev8lualion Reserye 14.2WI 4,2 Mov&m&nt In Restricted R&8&rv8 40,053 140,0531 Balanco at 31 March 2024 6,198,838 416,618 6,615,456 Surplus I IdefiGill from slalement of Gomprehensive inGotne Mov&m&nt In Revaluation R888rv8 839.593 839.593 210 Balance at 31 March 2025 7,038,221 416,828 7,455.049 The accompanying notes on page 25 to 44 form part of these Financial Statements. 22 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Statement of Financial Position At 31 March 2025 Company No. 00170981 Note 2025 2024 Flxed A$$et$ Intangible assèts and gcodwill Tangible fixed assets- Housing Properties Tangible fixed assets- Other Fixed Assets 10 58,887 24,794.758 1.604.808 26,458,453 118,950 20,125.352 1.642.404 21,886,706 c￿r￿nt Assets Trade and other debtors Cash 3nd cash equivalents 13 796,700 1.150.820 1,947,520 392,467 2.233.805 2,626,272 ¢redltC+rs.' Amounts falllng du* wlthln one year 1.531,843 1,299.480 N8t current assets 415,677 1,326,792 Totsl assets less current Ilabllltles 26,874,130 23,213,498 Creditors.. Amounts falling duo after mor8 than one year 15 119,298,793) 116,466,033) Provisions for liabilities other provi5i0ns 18 1120.2881 1132.0091 Total net assets 7 455 049 6615456 Reselves Incorne and expenditure reserve Revaluation reserve Restricted r8s8Ne Totsl Re$erve$ 7,038.221 416.828 6,198.838 416.618 7 455 Q49 6615456 The Financial Statements were approved by the Board on 1$t September 2025 and signed on their behalf by.. s￿Jn*j by.. Slgned by.. 8ABFD4351C93458 TE1D765A53E040E. Dawn Ward CBE Chair and Trustee Everton Burke Esq., OBE Vice Chair and Trustee The accompanying notes on page 25 10 44 form part of these Financial Slalements. 23 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Statement of Cash Flows 2025 2024 Noto Net cash generated from operating activities 1,548,689 1,432,769 Cash flow from investing activities Nel purchase of tangible fixed assets Purchase of intsngible fixed assets Grants re￿1ved 11 &12 10 15,202,697) 12,959,921) 371,250 Interest re￿IVed 4,732 304 15.202.236) 12.599.581) Ca8hflow from flnanclng actlvltles Interest P3id New Secured Bonds and Loans Repayrfftnts of borrowings 1560.7211 3,300,000 168.717 2.570,562 1390.5201 2,722,500 111.843 2,220,137 Net change in cash and cash equivalents Cash and cash equlvalents at beglnnlng of the year 11,082,985) 2,233,805 1,053,325 1,180,480 Cash and cash oquivalonts at ond of the yoar 1 150820 2 233 805 The accompanying notes on page 25 to 44 form part of these Financial Statements. 24 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 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 stslemenls. 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 Practi 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 at fair value. The financial statements are prepared in steding, which is the functional currency of Heart of England YMCA, and rounded to 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 finance committed 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 al least twelve monlhs after the dale on which Ihe report and Financial Slatemenls are signed. For this reason, il continues lo adopt the going concern basis in the Financial Stalemenls. Turnover Turnover represents rental and Servi￿ charges income receivable, net 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 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 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 mel 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. Govemment 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-related conditions on the Company is recognised only when these conditions are mel. A grant received before the revenue recognition criteria are satisfied is recognised as a liability. Taxatlon Heart of England YMCA is a registered Charity and is therefore exempt from paying 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 it 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 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) Employee benefits The costs of short-lerm 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 entitlement 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 termination benefits is recognised immediately as an expense when Heart of England YMCA is demonstrably commilled to terminate the employment of the employee or lo provide termination benefrts. Retirement Benefits Defined Contribution Plan Heart of England YMCA offers two pension schemes lo all of its employees. The People's Pension which is our default scheme on Aulo-Enrolment offering contributions made on a salary sacrtfiee basis. This scheme auto-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 30A and 80/0 which is also matched by Heart of England YMCA on a salary sacrifice basis. Deflned Beneflt 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 to 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 202712024.. £37,085 pa to April 20271, accordingly this is shown as a liability in these accounts. In addition, Heart of England YMCA is required to contribute £11,60412024'. £11,820) 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 settled 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 future payments discounted at a market rale of interest for a similar debt instrument. A provision for impaiment 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 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 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 settled. Where the arrangement with a trade creditor constitutes a financing transaction, the creditor is initially and subsequently measured at the present value of futLJre payments discounted at a market rate of interest for a similar instrument. Borrowings Borrowings are inttially 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. Provisions 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 estimated 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. Intanglble Flxed 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 cost of intangible fixed assets lo write them down to their eslimaled 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 expenditLJre 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 with those works th8t enhance the economic benefits of the asset, are capitalised 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 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 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 its housing properties and charges depreciation so as lo write down the cost of each component to ils eslimaled ￿sIdUal value, on 8 slraight-line basis over its estimated useful economic life. No depreciation charge is applied in the year of addition. The Association depreciates the major components of its housing properties based on the following.. Bulldlng Components Years Bulldlng Components Years Structure 501100 Central Heating 30 Windows 30 Boilers 15 Kitchen 20 Roof 60 Bathroom 30 Environmental Works 30 Electrical and Mechani¢al 10140 Impairments of Fixed A$$et$ An assessment is made al each reporting dale of whether there are indications that a fixed asset {including 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 carying 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 rf, 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, nel 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 to ils eslimaled residual value on a straighl-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 wsls 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 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) Reserves Income and Expenditure Reserve Income and Expenditure Reserves are unrestricted reserves and represent surpluses generated from operating activities. Deslgnated 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. Restrlcted 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. Revaluatlon Reserve 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. Criti￿1 area$ of judgement and accounting estimates In preparing these financial statements, the key judgements 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 estimation of uncertainty against future recognition of certain accounts receivable as being uncollected. Leas9$ 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 certain sofbNare and IT equipment and changes to decent homes standards which may require more frequent replacement of key ¢omponenls. 30 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) 3a. Particulars of turnover, cost of sales, operating costs and operating surplus 2025 Tumover Operatlng expendlture Operating Surplus IIDeficiti Soclal houslng lettlngs 6,891,640 5,397,514 1,494,126 Other soclal houslng actlvltles Charges for support servic8S Other Social housing 162,611 32,946 195,557 112,2811 5,488 17,769 150,330 27,458 177,788 Activities other than Social Housing ttised govemnknt grants Childrens services Conferencing s8rvices,Youth and caf8 Other non soaal housing 31,088 269.390 118,945 20,493 439.916 31,088 154.1691 1269,9441 20,493 272.532 1323.5591 1388,8891 712.448 7527.113 6.127,731 1,399.382 2024 Turnover Operating expenditure Operating Surplus IIDeficitl So¢ial housing lettings 6.381,770 4,899,435 1.482,335 Other social housing a￿1vItIeS Chaiges for support services Other social housing 99,422 73.512 172,934 115,1341 14,029 29,163 84,288 59.483 143,771 Actlvltles other than Soclal Houslng knrtised govemTrEnt grant5 Childrens servi￿$ Training and conferencing seNices and calé Other non social housing 2,813 271,967 300,551 11.156 586,487 2,813 158,5841 1157,6331 11.156 202,248 1330,5511 1458,1841 788,735 7,141,191 5,717,333 1,423,858 31 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) 3b. Particular5 of incom8 and 8XP8nditure from social housing lettings 2025 2024 Gengral n88d5 housing Total Total Rent re￿1vable net ol identifiable seNice charges knrtIS8d gov8rnm8nt grants Turnover from social houslng lettlngs 6,657,806 233,834 6,891,640 6,657,806 233,834 6,891,640 6,162,786 218,984 6,381,770 Management Service chaige costs Routine maintenance Major repairs expenditure Bad debts Depreciabon of housing properties Operating expenditure on social houslng lettlngs 1,831,680 2,400,223 757,862 1,156 3,548 403,045 5,397,514 1,831,680 2,400,223 757,862 1,156 3,548 403,045 5,397,514 1,837,293 2,025,113 543,016 29,799 97,337 366,877 4,899,435 Operating $urplu$ on social housing 18ttings 1,494,126 1,494,126 1,482,335 Vold losses 163,142 163,142 86,629 4. Accommodation in management and development At the end of the year accommodation in management for each class of accommodation was as follows.. 2025 Number 2024 Number Social Housing neral Housing Social Rent Total Owned 317 317 234 234 Units managed on beha￿ of other organisations General needs Total Managed 33 350 116 350 Accorrthation in development at year end 32 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 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.. 2025 2024 Release of deferred capital grant 1264,9221 1250,0721 Provision of Bad Debts 118,0751 31,747 AtrK)rtisation of intangible fixed assets (per note 101 60,221 60,222 Depreciation of housing properties 403,548 367,257 Depreciation of other tangible fixed assets 167,340 167,340 Operating lease rental5". extemal rnanagerrEnt charges 386,672 444.510 vehicles and equiptrEnt Auditors, retnuneration Fees payable to the Corrpany'5 auditors for the audit of the Financial Statetnents 29,100 23.000 Total audit seNi¢es 29,100 23.000 Tax COrry)lian￿ services Total non-audit services 33 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued 6. Interest receivable and similar income 2025 2024 Interest receivable and similar incorr 4,732 304 4.732 304 7. Interest and financing costs 2025 2024 Net interest payable YMCA Pension Fund Bank interest rtisation of issue costs 560,721 3,800 564,521 390,520 2,700 393,220 559,789 392,916 8. Employees Average monthly number of employees employed in the year were.. 2025 No. 61 2024 Fbusing and support actimlies Jrseries intenance Learning & Comnwnities nagemenl and administration 60 10 12 92 11 91 The number of staff who were paid more than £60,000 in the year lincluding Executive Directors) were.. 2025 No. 2024 £60,001- £70,000 £70,001- £80,000 £80,001- £90,000 The £70,000 - £80,000 includes a selllemenl paymenl made in 2025 that was accrued from the previous financial year and excluded from the higher paid slaff disclosure. DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) Employee costs during the year were as follows.. 2025 2024 Empbyee Costs: Wages and salaries Swial security costs Pension costs Life assurance costs 2,589,475 231,408 54,948 18,018 2,893,849 2,493,583 199,640 49,476 14,693 2,757,392 Included in Wages and Salaries are staff redundancy and selllemenl costs of £nil {2024.' £132,8021- 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 latter 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.. 2025 2024 Wages & S81aries Benefits in kind Employers NIC Pension contributions Setuements 214,926 10,419 25,777 6,760 255,563 10,956 27,699 9,094 108,355 257,882 411,667 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 any further contribution lo 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 12024.. 11. None of the Board Members received emoluments. The emoluments of the highest paid Executive Director, the Chief Executive, are shown below= 2025 2024 Hlghest Pald Dlrector Remuneration Benefits in kind Pension contributions 83,640 4,500 2,644 90,784 76,319 4,500 2,425 83,244 35 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) 10. Intangible Fixed Assets IT Software Total Cost Al 1 April 2024 Additions At 31 March 2025 349,746 158 349,904 349,746 158 349,904 Amortisation At 1 April 2024 Charged in the year At 31 March 2025 230,796 60,221 291,017 230,796 60,221 291,017 Net book value Al 31 March 2025 Al 31 March 2024 118,950 118,950 36 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) 11. Fixed Assets- housing properties Soclal houslng Soclal houslng propErties held Properties hold for for l•tting 1Ottith9 Houslng propertles for letting under ¢on¥tru¢tion Total houslng propertYè8 Freehold Lottg Leasehald Co¥t At 1 ￿pri1 2024 dditions Tr8nsfers DisrK>sals Al 31 Ma￿h 2025 21.549.411 4.767.772 348.168 636,917 1.101.376 30S.181 1348,1681 23,287,71 5,072,953 26 665 351 636.917 10S8.389 ZB.36Q.6S7 Dèpr•tiatitsn and impairmènt At 1 Ppril 2024 Depreciation charged In At 31 M?￿h 202$ 2,933.704 389.073 3.322,777 228,647 14.475 243,122 3,162,351 403,548 3,561899 Net bookvaluo At31 March 2025 23 342 574 1 058 389 At 31 March 2024 18.615.707 408,270 1.101,376 20,125,353 The existing charges held with Charity Bank are on freehold properties, 301 Resetvoir Road, 109 Grosvenor Road and 43 Henrielts Street. The Association also has acquired a further loan with Charity Bank for a loan value of £3.3M, which has now been fully drawn down. The loans with Unity Trust Bank is secured against 200 Bunbury Road and Endeavour ci. Heart of England Community Foundation also hold charges against 200 Bunbury Road. Housing properties book value net of depreciation comprises 2025 2024 Freehold land and buildings Long Leasehold land and buildings 24,400,963 393,795 24.794.758 19,717,082 408,270 20.125.352 Expenditure on works to existing properties 2025 649,618 649,618 2024 397,550 397,550 An￿Unts charged lo income and expenditure 37 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) Note 11. Fixed Assets - housing properties (continued) Social housing assistance 2025 2024 Total accumulated social housing grant received or receivable at 31 March.. 7,465,820 7,465,820 Total accumulated other grant received or receivable at 31 March.. 1,709,761 1,709,761 Recognised in the Statement of Comprehensive Income 1.584,925 1,320,003 Held as deferred Income 7.590.656 7,855,578 Finance costs 2025 2024 Aggregate amount of finance costs included in the cost of housing properties 49,454 49.454 49,454 Impairment The Association considers individual schemes to be separate Cash Generating Units ICGUI when assessed for impairment, in accordan￿ 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 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) 12. Tangible Fixed Assets- Other Freehold Pr¥ml$o8 Flxtures and ieT Flttlng$ H•rdw8ro Motor Vohi¢1o$ Totsl Cost At 1 Npril 2024 Addl￿OnS 1.eA2.842 1.461,891 66,772 350,913 62,972 24.$02 3.480.148 129.744 Transfers At 31 Mar¢h 2025 1,642.842 1.528,663 413,885 24,502 3,609,892 Deprecialion At 1 *pril 2024 Charged in ihe year At 31 March 2025 259.641 1.246,1Y 307,447 24.502 1.837.744 167 340 2 005 084 1 317,838 362,058 N¥t book valuo At 31 March 2025 210.825 51.827 31 March 2024 1.383.201 215,737 43,466 1.&$2.404 13. Debtors 2025 2024 Due wlthln one year Rent and service charges receivable PrepaytTEnts and accrued Inco￿ 729,615 599,366 428,773 80,131 1,158,388 679,497 Other debtors Less.. provision for bad and doubtful debts 7,705 30,528 369,393 317,558 {361,688) {287,030) 796.700 392.467 39 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) 14. Creditors: amounts falling due within one year 2025 2024 Bank loans (note 161 Trade creditors Renl and service 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 171,904 75,358 138,614 89,347 309,353 305,240 55,307 11,801 12,977 25,499 869,644 44,453 10,728 94,751 13,391 602,956 1,531,843 1,299,480 15. Creditors: amounts falling due after more than one year 2025 2024 Bank loans (note 161 Deferred grant incom8 9,442,021 9,856,772 6,340,227 10,125,806 19.298,793 16.466 033 16. Debt Analysis Due wilhin one year 2025 2024 Bank loans 171,904 171,904 138,614 138,614 Due after more than one year Bank loans Less.. issue costs 9,510,394 68,373 9,442,021 6,412,400 72,172 6.340.228 Total Loans 9.613,925 6.478.842 40 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) 16. Debt Analysis (continued) The Association has a total loan facility of £7,300,000 with the Charity Bank, which includes an additional £3,300,000 drawn down this year, and also a £3,400,000 loan facility with Unity Bank. The Loan with Charity Bank is for 25 years from the date of the final drawdown and carries an interest rate of 1.80 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 and all assets and undertakings ofthe YMCA. The Loan with Unity Trust is divided into three tranches. Loan 1 Loan 2 Loan 3 Amount £250K, temi 25 years with an interest rate of 2.25 /0 over Bank of England Base Rale Amount £400k term 10 years with an interest rate of 2.250/9 over Bank of England Base Rale Amount £2,750M term 25 years with an interest rate of 30/9 over Bank of England Base Rate The loan with Unity Trust is secured on specific charges on the following properties 1. 200 Bunbury Road, Northfield, 831 2DL 2. Endeavour Court, 20 Chelmarsh Road, Coventry, CV6 3LB The security on St Margaret's and Bishopsgate was released during the year. The loans are repayable as below.. 2025 2024 Within one year or on dernand One year or nK)re bul less than two years Two years or rrK)re bul less than five years Five years or rrK)re 171,904 218,260 851,229 8,440,905 9,682,298 68,373 9,613,925 138,614 165,023 572,085 5,675,292 6,551,014 72,172 6,478,842 Less.. anK)rtised 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 al the year-end these were invested in the Mercer Dynamic De-risking Solution, 65 /0 matching portfolio and 36.￿ 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 4.560/0, the increase in pensions in payment of 3.18010 (for RPI capped at 50/0 p.a.), and the average life expectancy from nomal 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 v81ue of the assets w8s £103.1 m, which represented 920A of the beneftts that had accrued lo members. The Pension Plan was closed to new members and future service 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 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) 17. Pension obligations (continued) The valuation prepared as al 1 May 2023 showed that the YMCA Pension Plan had a deficit of £9.1 million. Heart of England YMCA has been advised that it will need lo make monthly contributions of £4,057 12024= £4,057) from 1 May 2025, being £3,090 for the deficit contribution payments and £967 12024.. £9851 for the contributions lo the plan expenses. This amount is based on the current actuarial assumptions las outlined 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 5.250/y12024.' 5.25'/01 The current recovery period is 3 years commencing 1 May 2024. Wf(hin one year Repayable Two to After five After mre or* lo two five years than one years years year Total Total 2025 2024 As at 31st March 2025 33,177 34,919 6,360 41,279 74,456 103,041 As al 31st March 2024 33 339 38 026 103 041 201920 In addition, Heart of England YMCA may have over time liabilities in the event of the non-payment by other participating YMCAS of their share of the YMCA Pension Plan's deficit. It is not possible currently lo 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 Obligation Leave Pay Total At 1 April 2024 Ulilised I Provided At 31 March 2025 103,041 28,585 74,456 28,969 16,863 45.832 132,010 11,722 120.288 The YMCA Pension obligation is referred to in note 17. The provision is based on the nel present value of payments agreed at the year end. The provision will be adjusted following 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 seNices 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 absence. 19. Share Capital Heart of England YMCA Limited is a Company Limited by Guarantee. No shares have been issued. 42 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 HEART OF ENGLAND YOUNG MEN'S CHRISTIAN ASSOCIATION Notes to the Financial Statements (continued) 20. Cash Flow from Operating Activities 2025 2024 Surplusl Deficit for the year (net of transfer to restricted reserves) Adjustments for non-cash items.. Depreciation of tangible fixed assets Amortisation of intangible assets Decreasel Ilncreasel in stock Decreasel Ilncreasel in Irade and other debtors (Decreasev Increase in Irade and other creditors Decrease in provisions Gain on disposal of property, plant & eqLJipment Govemment grants amortised in the year Interest payable Interest re￿1vable Net cash generated from operatlng a¢tlvltles 839,593 1,070,994 570,888 60,222 534,597 60,222 1404,2331 199,073 111,7221 1121,4481 1142,9411 1111.5001 1264,9221 564,521 4,732 1 548 688 1250,0711 393,220 304 1 432 769 21. Capitsl Commitments 2025 2024 Expenditure contracted for but not provided for Expenditure authorised by the board, but not contracted 757,717 757 717 4,294,044 4 294,044 The above commitments will be fInan￿d primarily through reserves. 22. Contingent assets I liabilities The Association had no contingent assets at 31 March 202512024.. nill. The Association receives capital grant funding from the Homes and Communities Agenry which is used lo fund the acquisition and development of housing properties and their components. In certain circumstances upon disposal of grant funded properties, the Association is required to 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 Statements. 43 DoGusign Envelope ID.. 2FOD1EOC-72CA-404>8B5A-65EE6623FE29 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 Offi￿ equipment. 2025 2024 Within one year Betr￿en and five years 163.000 488,250 651.250 38,000 152,000 190.000 This includes ￿ase at Harry Watton (£125,000 pa).This commitnEnt has increased in line wth th8 5 year r8nt reM8w and break claus8 oullined in the agre8rr18nt 24. Analysis of Debt 2024 Cash Flows 2025 £ OOOS 6,340 138 £ OOOS 3,102 £ OOOS 9,442 172 Lontrtem) borrowings Short4erm borrowings Lease Liabilities Total Liabilities 6,478 3,136 9,614 Cash and Cash Equivalents Total Net Debt 12,2331 4,245 1,083 4,219 11,1501 25. Related parties Disclosures in relation to key management personnel are included in note 9. Insumnce has been purchased to indemnify the trustees against any neglect or default on their part. Trustees received no remuneration. Trustees were however reimbursed for travel expenses during the year to a value of £81212024.. £5561. One trustee also made unrestricted donations to the Association amounting lo £100 in the year12024.' £7081 There was one transaction with Inspire Property Management, a company owned by Mark Bruckshaw, a Trustee. for Surveying work at a cost of £2,400. 26. Other Income 2025 2024 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.