Charity registration number: 249198
Danish Young Women’s Christian Association in London Annual Report and Financial Statements
for the Year Ended 31 March 2022
## **Contents**
Reference and Administrative Details .............................................................................................................. 1 Trustees’ Report ................................................................................................................................................ 2-6 Independent Auditor’s Report ......................................................................................................................... 7-9 Statement of Financial Activities .................................................................................................................... 10 Balance Sheet ..................................................................................................................................................... 11 Notes to the Financial Statements .............................................................................................................. 12-20
## **Danish Young Women’s Christian Association in London**
## **Reference and Administrative Details**
## **Charity Registration Number: 249198**
**Patron:** Her Royal Highness Princess Benedikte of Denmark **President:** Ambassador Lars Thuesen **Custodian trustee:** The Official Custodian for Charities **Board:** Mrs K Maibom RI (Chair) Mrs A Raill (Vice Chairman and Secretary) Mr F Kloster Poulsen Ms N Bigbie Miss M Møller Mr S Rosenfalck Mrs A Bruun Mr P Ahm (Treasurer) **Warden:** C Y Jantzen **Address:** 43 Maresfield Gardens Hampstead London NW3 5TF **Auditors:** Bourner Bullock Chartered Accountants Sovereign House 212-224 Shaftesbury Avenue London WC2H 8HQ **Website:** www.kfuk.co.uk
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## **Danish Young Women’s Christian Association in London**
## **Trustees’ Report for the Year Ended 31 March 2022**
1. STRUCTURE, GOVERNANCE AND MANAGEMENT
## **Governing Document**
The charity is regulated by the Rules dated 14 March 2007 and Deeds of Trust dated 30 September 1958 and 25 April 1966.
## **Organisational Structure**
The charity is run by a board of between five and nine persons who speak Danish and live in England.
The board elects the Chairman, Vice Chairman and Honorary Treasurer. The offices of Chairman and Honorary treasurer cannot be carried out by the same person.
The Danish YWCA is represented on The Danish Church in London’s Committee and the priest at the same church is on the board of the Danish YWCA.
The Danske Soemands- og Udlandskirker, in conjunction with the board, employs a warden who is in charge of the daily management of the hostel.
Since 2020, the Charity’s properties have been registered in the name of The Official Custodian for Charities. This has two advantages:
- the charity is saved the expense of making the new deeds required when its holding trustees change.
- there is no risk that the charity land will remain vested in people who are no longer involved with the charity and who may be difficult to trace.
The Official Custodian cannot take part in managing land vested in him/her. The charity trustees keep all the powers and duties of management.
## **Decision Making**
The principal procedures of the Charity are set out in the Governing Document. The Warden is in charge of the daily management of the hostel and all other decision making is vested in the board.
## **Recruitment and Appointment of New Trustees**
The identification of potential new Danish speaking trustees is carried out by the board, the aim being to recommend for appointment those with expertise appropriate to carry out the Charity’s work.
## **Risk Assessment**
The major risks to which the Charity is exposed, as identified by the Trustees, have been reviewed and systems have been established to mitigate those risks.
## 2. OBJECTIVES AND ACTIVITIES
## **Object**
The Danish Y.W.C.A. is a branch of the association of “Danske Soemands- og Udlandskirker”.
In conjunction with the Danish National Church and on Evangelical-Lutheran basis, it aims to spread the word of the Gospel and to encourage young Danes to take part in Christian community life among Danes in London.
## **Activities**
This is achieved by creating a Christian home, where young Danes can live and come freely to seek advice and guidance, and by pointing them in the direction of the Danish Church in London.
The Charity holds a primary hostel at Maresfield Gardens providing up to 60 beds, and 10 flats with a view to letting these on a short-let basis to post graduate Danish students.
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## **Danish Young Women’s Christian Association in London**
## **Trustees’ Report for the Year Ended 31 March 2022**
## **Public benefit**
The Trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## 3. ACHIEVEMENTS AND PERFORMANCE
In the recent financial year, the hostel has still been impacted by the pandemic of Covid 19. The occupancy rate increased to 44% in average (2021: 33%) but with large swings in occupation throughout the year. During the second and partial third quarter of 2021 the hostel was still struggling with low occupancy rates from a combination of COVID related travel restrictions and new immigration laws post Brexit. From September, the occupancy rate for ‘over 4 weeks’ occupants went up and from the first quarter of 2022, where Covid 19 travel restrictions were lifted, we were again able to welcome short term visitors at the hostel.
During the year we have had several Covid 19 restrictions in place to secure a healthy and safe environment for the young Danes staying at our hostel and to protect the employees and volunteers. Since the outbreak of the pandemic, we have had more than 25 cases of Covid 19 among our residents and employees. We have therefore had to create isolation facilities as well as supporting those affected by Covid. This has taken up many resources among our employees but being able to offer a safe environment for our residents has been the main priority and is consistent with the charity`s aim to support young Danes in London.
In the summer of 2021, it was decided to let out four dormitory rooms as single/double occupant rooms for Danish students who can commit to a long-let agreement of a year. This new scheme is a trial that has the primary aim of providing more diverse room facilities and thus reduce the risk of low occupancy. This mitigation was implemented after Brexit immigration law has compromised the possibilities for young Danes to work and study in the UK.
When occupancy went down in the first quarter of 2021 the board decided to cut back in number of staff from 7 (2021) to 5 (2022). Furthermore, two employees were on furlough for part of the year. Prior to Brexit the hostel was recruiting mostly young employees from Denmark as short-term workers in the kitchen and office. After Brexit there are restrictions on employing non-skilled workers from outside UK. The trustees are considering new ways to lawfully employ essential Danish senior staff to secure the culture and values of the charity in the future and supplement the staff with local employees and volunteers.
The charity`s aim to be a ‘home from home’, giving young Danes a warm welcome, a pleasant and safe place to stay or visit at competitive prices, is still our overall goal. After the relaxing of restrictions post Covid, the Danish YWCA has again been able to offer activities and events to our own residents and to Danish students and youth living elsewhere in London.
The board has started a consultation process for the Danish YWCA to develop a sustainable business model while maintaining our charitable aims in the future, since Brexit has effectively changed the conditions for youth mobility between Denmark and UK. A new strategy and business plan for the charity is targeted for the coming year.
After the cancellation of the annual Christmas Bazaar in 2020 the Bazaar was back in 2021 with full force. More than 2000 people visited the Bazaar during an extended weekend in November. Precautions were taken to create a safe event in a time still affected by the pandemic. The formal organizer of the bazaar ‘Friends of the Danish YWCA’ managed to donate a net £38,507 to the Danish YWCA.
The link to the Danish Church in London is made clear to all occupants and the opportunity given to jointly take part in the Sunday service and other religious and traditional holidays throughout the year.
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## **Danish Young Women’s Christian Association in London**
## **Trustees’ Report for the Year Ended 31 March 2022**
4. FINANICAL REVIEW
The cost of providing accommodation to young Danes in London is funded for the greater part from the rental income received with any shortfall met by drawing from reserves, provided that the value of the reserves is not diminished unduly thus ensuring the continuance of the charity. The charity aims to have cash reserves of approximately £50,000 after deduction of the property reserve fund.
Due to the uncertainty surrounding BREXIT, as detailed in the risks section below, the Trustees have decided for the short-term foreseeable future to aim to hold more general unrestricted reserves than their policy of £50,000, to ensure that the hostel can still continue to run should the incoming resources decline.
As detailed in note 14 of the financial statements, during the year, the Trustees have reviewed the funds held by the charity. This included a detailed review of restricted funds, and designated funds.
As of 31 March 2022, total unrestricted funds amounted to £3,139,045.
Within unrestricted funds, there are designated funds of £3,006,504, which is made up of £2,701,625 property and £304,879 of funds held to cover future maintenance costs of the building. £132,541 remains in general unrestricted funds. In line with the reserves policy, there were no restricted reserves as at the year end.
The Trustees consider that their free reserves would allow them to continue their activities to meet their charitable objectives for a period of approximately 3 months, should their incoming resources decrease significantly. However, other sources of emergency funding can be considered including donations from companies sympathetic to the objectives of the charity and reallocating the Designated current assets.
## **Financial Summary**
The income during the year amounted to £329,732 (2021: £259,329).
The hostel’s receipts increased to £147,996 (2021: £94,554) reflecting a 44% (2021: 33%) occupancy rate.
Total expenditure amounted to £373,978 (2021: £426,482) with decreases in staff costs being the main reason for these decreases.
## **Risks**
## COVID 19
There remains a risk that the COVID pandemic could again have an impact, especially on the hostel occupancy. The Charity may again be impacted by travel restrictions that could make it difficult and expensive for young Danes to enter the UK for a short or long time stay, and the restrictions on the entertainment industry which makes London less attractive as a tourist destination. A successful vaccination programme in UK and throughout Europe gives a lower risk of new travel restrictions.
## BREXIT
With the UK’s final exit from the European Union on 1[st] January 2021, it is now clear that Brexit has provided a constraint on the ability for young Danes to work in the UK with a consequential likely impact on future occupancy rates and associated income for the charity. With the beneficiaries of the charity being young Danish students and short-term workers, their access to studies and work in the UK has been negatively impacted due to new immigration laws and UK’s withdrawal from the common EU student support program ERASMUS. Since BREXIT is still a recent event, the trustees consider and expect the national governments across UK and EU to find new common ground on how to enable European Youth to study and work abroad and maintain a valuable cultural exchange. The Trustees consider that the UK, even after the exit from the EU, will be an attractive country for young Danes to visit and study.
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## **Danish Young Women’s Christian Association in London**
## **Trustees’ Report for the Year Ended 31 March 2022**
## FOREIGN EXCHANGE
Whilst the visitors to the hostel are from Denmark, as the charity largely operates in Sterling, with all rental income and hostel receipts being in Sterling, the Trustees do not consider the charity to be significantly exposed to the effects of fluctuating exchange rates.
## ENERGY COSTS
While the rise in energy costs provide a future financial risk, since 2021, the Board has locked in gas and electricity rates for a period of 3 years with a major supplier. While not a significant risk in the short term, this will be further evaluated in the coming year when trends will become clearer.
Trustees have decided for the short-term foreseeable future to aim to hold more general unrestricted reserves than their policy of approximately £50,000, to ensure that the hostel can continue to run should the incoming resources decline.
## 5. PLANS FOR FUTURE PERIODS
While the COVID 19 crisis has had severe impact on the Charity`s income and overall finances during FY21/22, the trustees have reviewed the situation throughout the year and taken steps to reduce expenses.
A budget for the FY22/23 was approved by the board in the first quarter of 2022. The trustees expect the occupancy to increase somewhat in the coming year but have still an ongoing focus on controlling operating costs. Building maintenance of the various buildings that has mostly been put on a hold for the last two years, is again prioritized in the budget.
From a one-year perspective, the plan is focused on recruiting more short-term occupants for the hostel who will be the least affected by BREXIT. The trustees have refocused the view of Brexit`s impact on youth mobility to the realistic notion that the current policy in place is not being changed anytime soon. A new strategy and business plan is planned for the FY 2023/24 and will likely be based on how to attract young Danes on a gap year to a short term stay in London and at the hostel by providing alternative ways to engage in society e.g., through voluntarily work in British charities.
The trustees plan to organise the regular Christmas Bazaar again this year in close cooperation with “Friends of the YWCA”.
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## **Danish Young Women’s Christian Association in London**
## **Trustees’ Report for the Year Ended 31 March 2022**
## **Statement of Trustees’ responsibilities**
The trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
The trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.
In preparing these financial statements, the trustees are required to:
- a) select suitable accounting policies and apply them consistently;
- b) observe the methods and principles in the Charities SORP;
- c) make judgments and accounting estimates that are reasonable and prudent;
- d) state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.
- e) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the charity’s auditor is unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
Approved by the Board of Trustees and signed on its behalf by:
…………………………………
K Maibom
Date: ………………………….
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## **Danish Young Women’s Christian Association in London Independent Auditor’s Report to the trustees of Danish Young Women’s Christian Association in London**
## **Opinion**
We have audited the financial statements of Danish Young Women’s Christian Association in London (the ‘charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities and the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2022 and of its incoming resources and application of resources 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 Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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## **Danish Young Women’s Christian Association in London Independent Auditor’s Report to the trustees of Danish Young Women’s Christian Association in London**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion **:**
- the information given in the trustees’ report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 6 the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting regulations and Charities Act.
- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements including health and safety legislation.
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## **Danish Young Women’s Christian Association in London Independent Auditor’s Report to the trustees of Danish Young Women’s Christian Association in London**
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
..................................... Russell Joseph ACA (Senior Statutory Auditor) For and on behalf of Bourner Bullock, Statutory Auditor Chartered Accountants Sovereign House 212-224 Shaftesbury Avenue London WC2H 8HQ
Date:.............................
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## **Danish Young Women’s Christian Association in London**
## **Statement of Financial Activities for the Year Ended 31 March 2022 (including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
**----- Start of picture text -----**
Unrestricted Designated
funds funds Total funds Total funds
2022 2022 2022 2021
£ £ £ £
Note
Income from
Donations 2 104,025 - 104,025 75,877
Charitable activities 3 216,458 - 216,458 159,483
Other trading activities 4 4,021 - 4,021 21,974
Investment Income 5 831 - 831 1,120
Other income 6 4,397 - 4,397 875
-
Total Income 329,732 329,732 259,329
Expenditure on:
Charitable activities 7 293,828 80,150 373,978 426,482
Total Expenditure 293,828 80,150 373,978 426,482
Net income/ (expenditure) 35,904 (80,150) (44,246) (167,153)
Gross transfer between funds - - - -
Net movement in funds 35,904 (80,150) (44,246) (167,153)
Reconciliation of funds
Total funds brought forward 14 96,637 3,086,654 3,183,291 3,350,444
132,541 3,006,504 3,139,045 3,183,291
Total funds carried forward 14
**----- End of picture text -----**
All of the charity’s activities derive from continuing operations during the period.
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## **Danish Young Women’s Christian Association in London**
## **(Charity number: 249198)**
## **Balance Sheet as at 31 March 2022**
||**2022**
**£**
**2021**
**£**|
|---|---|
|||
|**Note**||
|**Fixed assets**
Tangible fixed assets
10||
|||
||2,745,310
2,828,357|
|Investments
11|23
23|
|||
|**Current assets**||
|Debtors
12|10,024
2,077|
|Cash at bank|406,710
393,838|
||416,734
395,915|
|||
|**Creditors: Amounts falling due within one year**
13
**Net current assets**
**Net assets**||
||(23,022)
(41,004)|
|||
||393,712
354,911|
|||
|||
||3,139,045
3,183,291|
|||
|General unrestricted funds
14
Designated unrestricted funds
14
**Total funds**|132,541
96,637|
||3,006,504
3,086,654|
|||
||3,139,045
3,183,291|
The financial statements were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:
........................................ Mrs K Maibom
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## **Danish Young Women’s Christian Association in London**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
## **1 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Basis of preparation**
The financial statements have been prepared in accordance with ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition)’ and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition)’ rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Danish Young Women’s Christian Association in London meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Going concern**
The financial statements have been prepared on a going concern basis. The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.
## **Charitable funds**
Unrestricted funds are general funds that are available for use at the trustees’ discretion in furtherance of the objectives of the Charity.
Designated funds are funds which the trustees have set aside as explained in the notes to the accounts. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.
## **Income**
## _**Trading income**_
Trading income relates to funds received from fundraising events and room hire, accounted for in the period to which they relate.
## _**Intangible income**_
Donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
## _**Charitable activities**_
Charitable activities relate to hostel receipts and rental income and are accounted for in the period which they relate to.
## _**Donations**_
Voluntary income including donations, gifts and grants that provide core funding are recognised when the Charity has entitlement to the income, it is probable that the income will be received, and the amount can be measured with sufficient reliability.
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## **Danish Young Women’s Christian Association in London**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## **Charitable expenditure**
Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Support costs**
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
## **Governance costs**
These include the costs attributable to the Charity’s compliance with constitutional and statutory requirements, including audit, strategic management and Trustees’ meetings and reimbursed expenses.
## **Taxation**
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Tangible fixed assets**
Property, plant and equipment are measured at cost, net of depreciation and any impairment losses. Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Fixtures, fittings and equipment 5 to 10 years straight line Leasehold flats 50 years straight line Freehold property 20 to 50 years straight line
## **Investments**
Fixed asset investments are shown at cost less provision for impairment.
## **Financial instruments**
The Charity only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like other debtors and creditors and loans from related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously .
The charity does not have anything other than basic financial instruments.
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## **Danish Young Women’s Christian Association in London**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
## **Debtors**
Other debtors and cash are initially measured at settlement amount due after any discounts offered. Prepayments are valued at the amount prepaid, net of any discounts.
Financial assets are classified as receivables within one year and are not amortised.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
## **Government grants**
Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.
## **Foreign currency transactions and balances**
Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in net movements in funds.
## **Judgements and key sources of estimation uncertainty**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The trustees consider that depreciation has been a significant judgement and key source of estimation uncertainty in the year.
Depreciation: The company depreciates its assets over their estimated useful economic life. The carrying amount of fixed assets at the year end is £2,745,310 (2021: £2,828,357).
14
## **Danish Young Women’s Christian Association in London**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
## **2 Income from donations**
|Friends of Danish Young Women’s Christian Association in London
Other donations|**Total**
**Unrestricted**
**funds**
**2022**
**£**
**Total**
**2021**
**£**
38,507
-
65,518
75,877
104,025
75,877|
|---|---|
Included within in other donations are general donations, as well as amounts received from Danish Churches Abroad. A corresponding expense has been included within staff costs, in note 7.
## **3 Charitable activities**
|Bed and breakfast
Other meals and laundry
Rental income|**Total**
**Unrestricted**
**funds**
**2022**
**£**
**Total**
**2021**
**£**
130,661
74,026
17,335
20,528
68,462
64,929
216,458
159,483|
|---|---|
## **4 Other trading activities**
|Fundraising event
Sundry income|**Total**
**Unrestricted**
**funds**
**2022**
**£**
**Total**
**2021**
**£**
3,233
18,450
788
3,524
4,021
21,974|
|---|---|
- **5 Investment income**
|Interest receivable on bank deposits|**Total**
**Unrestricted**
**funds**
**2022**
**£**
**Total**
**2021**
**£**
831
1,120
831
1,120|
|---|---|
15
## **Danish Young Women’s Christian Association in London**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
|**7**
**Expenditure on charitable activities**
**6**
**Other income**
Government grants|**Total**
**Unrestricted**
**funds**
**2022**
**£**
**Total**
**2021**
**£**
4,397
875
4,397
875|
|---|---|
|||
|Staff costs
Provisions
Repairs and maintenance for hostel
Repairs and maintenance for flats
Events
Insurance
Water rates and council tax
Cleaning
Window cleaning
Gas and electricity
Equipment and repairs
Other expenses
Linen and laundry
Telephone
Internet
Newspapers
Depreciation of furniture and fittings
Depreciation of building
Depreciation of leasehold flats
Garden maintenance
Allocated support costs (note 7.1)
Allocated governance costs (note 7.1)
Total|**Unrestricted**
**funds**
**2022**
**£**
**Restricted**
**funds**
**2022**
**£**
**Total**
**2022**
**£**
**Total**
**2021**
**£**
132,832
-
132,832
171,485
27,788
-
27,788
20,236
11,829
-
11,829
15,530
22,806
-
22,806
24,362
253
-
253
14,732
7,573
-
7,573
10,579
4,055
-
4,055
10,330
14,588
-
14,588
11,882
-
-
-
-
17,983
-
17,983
15,803
6,545
-
6,545
6,221
7,317
-
7,317
2,970
-
-
-
(6)
2,490
-
2,490
2,306
993
-
993
2,100
317
-
317
880
10,952
-
10,952
19,106
-
28,568
28,568
26,011
-
51,582
51,582
51,582
2,288
-
2,288
1,879
16,844
-
16,844
14,011
6,375
-
6,375
4,483
293,828
80,150
373,978
426,482|
|---|---|
## **7.1 Analysis of governance and support costs**
|Bookkeeping fees
Printing and stationery
Postage and carriage
Marketing and advertising
Audit and accountancy fees
Total bank charges
Professional fees
Total|**Support**
**Costs**
**£**
**Governance**
**costs**
**£**
**Total**
**2022**
**£**
3,530
-
3,530
1,025
-
1,025
438
362
-
-
438
362
-
6,375
6,375
6,100
-
6,100
5,389
-
5,389
16,844
6,375
23,219|
|---|---|
16
## **Danish Young Women’s Christian Association in London**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
## **8 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
## **9 Staff numbers**
The aggregate payroll costs were as follows:
**----- Start of picture text -----**
||||
|---|---|---|
|Total|Total|
|2022|2021|
|£|£|
|Wages and salaries|132,832|171,485|
|The average monthly headcount employed by the charity during the year was as follows:|
|2022|2021|
|No.|No.|
|Support staff|4|6|
|Seconded employees from Danish Churches Abroad|1|1|
|Total|5|7|
**----- End of picture text -----**
One employee is seconded from the Danish Churches Abroad, to assist with running the charity. Included within other donations, and staff costs, are corresponding amounts to record the intangible income and expense for the costs relating to this seconded employee.
There was no one employee that received employee benefits of more than £60,000.
17
## **Danish Young Women’s Christian Association in London**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
## **10 Tangible fixed assets**
|**0**
**Tangible fixed assets**|||
|---|---|---|
|**Cost**
At 1 April 2021
Additions
Disposals
At 31 March 2022
**Depreciation and impairment**
At 1 April 2021
Depreciation charged in the year
Disposals
At 31 March 2022
**Carrying amount**
At 31 March 2022
At 31 March 2021
**11**
**Investments**
**Cost**
At 1 April 2021
At 31 March 2022|**Freehold**
**land and**
**buildings**
**£**
**Leasehold**
**flats**
**£**
**Fixtures,**
**fittings &**
**equipment**
**£**
**Total**
**2022**
**£**
1,172,374
2,579,120
336,760
4,088,254||
||-
-
-
-
8,054
(210,137)
8,054
(210,137)||
||1,172,374
2,579,120
134,677
3,886,171||
||444,718
525,001
290,178
1,259,897
28,568
-
51,582
-
10,951
(210,137)
91,101
(210,137)||
||473,286
576,583
90,992
1,140,861||
||699,088
2,002,537
43,685
2,745,310||
||727,656
2,054,119
46,582
2,828,357||
|||**Total**
**2022**
**£**
**Total**
**2021**
**£**
23
23
23
23|
|**12**
**Debtors**
Sundry debtors and prepayments|**Total**
**2022**
**£**
**Total**
**2021**
**£**
10,024
2,077
10,024
2,077|
|---|---|
18
## **Danish Young Women’s Christian Association in London**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
## **Creditors: amounts falling due within one year**
|Trade creditors
Other creditors
Other taxes and social security
Accruals
Deferred income|**Total**
**2022**
**£**
**Total**
**2021**
**£**
2,592
-
2,034
29,968
2,361
-
5,880
5,600
10,155
5,436
23,022
41,004|
|---|---|
## **14 Funds**
|**Unrestricted funds**
General unrestricted funds
Designated funds
**Total funds**|**Balance at**
**1 April 2021**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Transfers**
**£**
**Balance at**
**31 March**
**2022**
**£**
96,637
329,732
(293,828)
-
132,541
3,086,654
-
(80,150)
-
3,006,504
3,183,291
329,732
(373,978)
-
3,139,045|
|---|---|
The specific purposes for which the funds are to be applied are as follows:
Unrestricted funds: these funds are provided by donors for support of the charity, without restriction on how funds should be deployed.
Designated funds: these funds are chosen by the trustees for the following purposes:
- Building Fund: these funds have been designated for the purposes of covering future maintenance cost of the main building, and the flats held by the charity, to reduce the impact of any unexpected maintenance expenditure on the charity’s available reserves.
- Value of fixed assets: the net book value of the properties held as at the year end has been designated to demonstrate that these are the reserves of the charity which are not freely available to cover the charity’s expenses, as these are the reserves which are tied up in the charity’s fixed assets.
19
## **Danish Young Women’s Christian Association in London**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
## **14.1 Analysis of net assets between funds**
|**4.1**
**Analysis of net assets between funds**||
|---|---|
|Tangible assets
Investments
Net current assets
**Total net assets at 31 March 2022**|**Unrestricted funds**
**Designated**
**£**
**General**
**£**
**Total**
**funds**
**£**
2,701,625
43,685
2,745,310
-
23
23
304,879
88,833
393,712|
||3,006,504
132,541
3,139,045|
20