**Charity number: 250118** 

## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **CONSOLIDATED** 

**TRUSTEES' REPORT AND FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31 DECEMBER 2020** 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **CONTENTS** 

||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and advisers**|1|
|**Trustees' report**|2 - 13|
|**Trustees' responsibilities statement**|14|
|**Independent auditors' report on the financial statements**|15 - 17|
|**Consolidated statement of financial activities**|18|
|**Consolidated balance sheet**|19|
|**Charity balance sheet**|20|
|**Consolidated statement of cash flows**|21|
|**Notes to the financial statements**|22 - 48|





**GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020** 

|**Trustees**|D Losse, Chairman|
|---|---|
||C Halsey|
||P Mallinckrodt|
||N Daur|
||M Tinsley|
||A Fox|
||P Stokes|
||C Daur|
|**Charity registered**<br>**number**<br>250118<br>**Principal office**<br>35 Craven Terrace<br>London<br>W2 3EL<br>**Independent auditors**<br>Haslers<br>Chartered Accountants<br>Old Station Road<br>Loughton<br>Essex<br>IG10 4PL<br>**Bankers**<br>National Westminster Bank plc<br>26 Edgeware Road<br>London<br>W2 2ZW<br>**Solicitors**<br>Radcliffes Le Brasseur<br>85 Fleet Street<br>London<br>EC4Y 1AE||



Page 1 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020** 

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 January 2020 to 31 December 2020 

## **Chairman’s Statement and Trustees Report and Review of Activities** 

The year under review was from the very outset marked by the impact of Covid 19. First rumours of the impending pandemic were beginning to circulate at the end of 2019 and caused us immediately to adopt a cautious approach to our budgets for 2020. Under our historic and successful business model the Association had relied heavily on the donation of profits from its trading subsidiary, the Lancaster Hall Hotel, to fund much of its charitable activity.  Uncertainty surrounding this funding source carried serious implications for our work and so prudence demanded that we planned on the basis that any donation from the hotel for the year 2020 together with our other investment and property income would no more than cover the fixed costs of the Association and support only limited additional charitable activity whilst the crisis persisted. 

In fact, the Government imposed lockdown on the 23rd March 2020 brought the activities of both Hotel and Association to an abrupt halt. Staff were furloughed under the Government scheme whilst our Chief Executive and his senior executives remained in post to oversee the orderly postponement of our programme of activities and the maintenance of some emergency charitable activity where possible. 

The hotel and hostel were obliged to close and the majority of staff were furloughed, leaving the hotel to be mothballed under the care of the Chief Executive and the senior managers. 

At the outset of the emergency the Board decided that it was in the overall interests of the Association to support the Hotel, and a firm commitment was made to do so over the next year to ensure that it remained a “going concern”, and to keep the situation under review thereafter. The Board decision recognised the integral part played by the Lancaster Hall Hotel in the workings of the GYMCA, and in particular that : 

- The Hotel provides the Association with its Headquarters and premises for the Association’s activities. 

- The provision of Hotel and Hostel accommodation accords with the historic purpose of the Association 

- and fulfils a function played by the Association throughout its existence. 

- The Hotel in its own right has actively supported the charitable objects of the Association. 

- Through the donation of its profits, since it was inaugurated in 1972, it has been the lifeblood of the 

- Association. 

Decisions were also immediately taken to secure the Association’s cash liquidity through the realisation of part of the investment reserve. In all, we were able to assemble total cash resources of some £663,000 and still leave ourselves with invested reserves valued at £620,000 on 30/6/2020. It was estimated that the cash would be sufficient to meet standing costs through to the end of the year, with the hotel largely out of action, and would enable us to avoid large scale staff redundancies, thus preserving operational flexibility for the future. 

Limited trading in accordance with Government guidelines resumed in the Hotel through the summer but the period of virtual shutdown was used by the Senior management Team to initiate a number of cost-saving measures along with initiatives to improve the efficiency and quality of the hotel service, 

The Association was obliged to furlough three of its staff, but our Chief Executive reduced his hours and with one full-time staff ensured that some of the basic work of the Association continued. Efforts were made to maintain contact with vulnerable members and some of our volunteering projects, for which external finance had been secured, were able to proceed. At the same time we took the opportunity to begin reviewing the full range of our programmes to ensure that they all remained relevant and fulfilled our objective of maintaining charitable activities that respect our German roots and traditions alongside services more aligned to current YMCA initiatives and which respond to the wider community around us. 

Page 2 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

From the onset of the pandemic we began examining ways in which we might refinance the Association if the crisis conditions were prolonged. Whilst the Association enjoyed a strong asset base through its ownership of the freehold of the Hotel premises and the adjacent properties in Craven Terrace and had investment properties in Craven Road, the cash resources in the absence of positive cash flow from the Hotel were limited to the operating funds in the business and the value of the investment reserve. The timing was not propitious for the negotiation of bank loans, nor for the sale of any of the investment properties but constructive discussions with the Trustees of The St Paul’s German Reformed Church Trust resulted in our being offered a very generous grant of £300,000 in token of the close association that had existed historically between the Church and the GYMCA and our shared ideals. The grant was received in September 2020 and gave us the breathing space and extra liquidity required. The Association is deeply grateful for this support. 

The financial outcome for the year as a whole, as revealed in the Consolidated Statement of Financial Activities, is a deficit of £241.471 Income from the hotel and other trading activities dropped from £2,039,454 in 2019 to £432,637 but the impact of the government’s furlough scheme, coupled with the cost savings which were achieved by our management team and the reduced level of charitable expenditure, resulted in total expenditure dropping from £2,323,818 to £1,566,854. The value of our investment reserve and the associated dividends held up well, although reduced in absolute terms by the need to bolster our cash resources. 

In consequence the Consolidated Balance Sheet shows a fall in Total Net Assets from £4,721,890 to £4,480,419. 

## **Looking Ahead** 

The pandemic has created a very uncertain environment and despite the success of the government’s vaccination programme trading conditions for the hospitality industry remain very difficult. For the year ahead we are unable with any confidence to predict when it will be possible for the hotel to resume the regular flow of grants to the Association and we are meanwhile reliant on income from our investment properties and our invested reserves to sustain a heavily curtailed programme of charitable activity, 

This seems an appropriate moment to reflect on the whole range of our activities and to realign our strategy to the post Brexit, post Covid world. This exercise is being conducted by our Management Team in parallel with the strategic reassessment being undertaken by YMCA England. It is our intention to develop initiatives which reflect our roots in the German expatriate community in London in the 19th Century and the Christian values which inspired our work from the outset, whilst taking into account the change in demographics of our membership and the wider needs of our local communities today. Our aims and objectives have not fundamentally changed but we feel it right that they should be adapted to our vastly changed world. 

The restructuring of the charity to which we alluded in last year’s report was reluctantly put on hold early in 2020, as the complicated processes involved were deemed to be too much of a distraction whilst our Management and Board were directing all their energies to dealing with the pandemic crisis. It is hoped that the changes envisaged will finally be implemented, in their original form, in the final quarter of 2021, when it should again be possible to hold the necessary Extraordinary Meetings in person rather than virtually, which the Board felt was appropriate for important changes of this nature. 

Page 3 



**GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Objectives and activities** 

## **a. Policies and objectives** 

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

In normal times the German YMCA gives material and financial support to a number of related national and international charities with objects similar to its own. Some grants are seen as a continuing commitment in pursuance of the German YMCAs own objects. As mentioned above, all activities and grants not already made were cancelled following the lockdown in March. A very limited programme of our own activities was restarted towards the end of the year via Zoom. 

Emphasis is given to education and recreation, and also Christian teaching, which is normally provided in regular bi monthly publications and through lectures and celebrations at special events in the Christian calendar. These were also suspended for most of the year. We recognise the importance of the churches in their role as providers of spiritual guidance and we intend to resume our support for them as soon as possible. 

## **b. Strategies for achieving objectives** 

The charity shares its freehold property, 31 to 38 Craven Terrace, London W2, with its trading company, Lancaster Hall Hotel Limited. The charity has arranged this use of the property so that the trading company may contribute financially to the charity, and so that it may also provide affordable accommodation to groups of young people on educational visits from abroad, as detailed in the review of activities. 

In the light of the significant changes brought about by the pandemic, including the negative impact on the finances of the charity, a detailed review of all aspects of the operation is to be undertaken. For immediate planning purposes it was deemed prudent to assume that income would be restricted purely to that derived from our rental property. Whilst we remain committed to retaining our staff for the longer term wherever possible, staffing levels have in the short term been adjusted to reflect the necessary reduction in activity, but with minimal redundancy. 

It is proposed to review our overall strategic objectives to ensure that they remain appropriate in the post Brexit, post pandemic world. In the short term we shall determine which of our existing initiatives should be continued and the staffing levels necessary to achieve this. By the latter part of 2021 we hope to have identified and agreed a shortlist of potential new activities and initiatives and commenced planning for their implementation. It is anticipated that it will in due course be necessary to appoint a full-time London-based programme coordinator to oversee the development of these plans and their implementation. 

## **c. Activities undertaken to achieve objectives** 

As mentioned previously, all activities ceased from March and only a limited number gradually resumed towards the end of the year and all financial aid to other organisations providing services to the community which the Association cannot itself deliver had to be suspended. 

Page 4 



**GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Objectives and activities (continued)** 

## **d. Our Work with Volunteers** 

In January 2010 the Association commenced a “Volunteer Placement Service” as a new project, originally intended to place volunteers from Germany into Great Britain and vice versa. However, since its inception the service has expanded internationally. Volunteers from Austria, France, Hungary, Germany, Great Britain and Spain have been placed into various projects in Austria, Italy, Slovakia, Spain, Portugal, Russia, Greece, Belarus, Turkey, Croatia, Malta, Great Britain and Germany. The VPS coordinator also supports other organisations, in particular other YMCAs, in placing volunteers and obtaining grants. 

In 2019 a new volunteering project was established by the Association in partnership with Bournemouth YMCA and YMCA Sutton Coldfield. Our Association is the lead partner. The project is over 2 ½ years (three project cycles) with a total grant of €1,000,000 from the European Union monitored by Ecorys / the British National Agency. 

In total a grant of €202,718 was received for the first year’s project cycle, €412,906 for the second year’s projects and €362,351 for year 3, held on trust by the Association in a ring fenced account until it is drawn down by the individual YMCAs after the projects are completed. 

YMCA Sutton Coldfield withdrew from the project in 2020 and we have the National Agency that funds for the last project cycle will be re-allocated to the German YMCA and Bournemouth YMCA only. 

The volunteering projects vary from supporting schools, disability projects, housing and community projects, holiday schemes and food banks. A number of volunteers also support the host YMCA direct. Placements vary from 2 weeks to up to 12 months, depending on the project. In total 46 volunteers were placed in the first year, 150 were planned for the second year and up to 300 in the 3rd year We have asked the National Agency for extension of year 2 and 3 as both projects cycles were highly impacted by the Covid crisis. In particular, in the second year volunteers were unable to start their projects due to travel restrictions. This year we have encountered the additional problem that volunteers are required to apply for visas to stay in the UK. 

More potential projects are already being planned and the new cycle will start in the autumn of 2021 

The volunteering projects are both long term (up to one year) and short term, sometimes as little as 2 weeks. Some are for individual young volunteers whilst others are group volunteering opportunities. The areas covered by the projects include youth work, work with children, community work with all age groups and the support of young adults with fewer opportunities. 

## **e. Music** 

Traditionally the Association has always endeavoured to support the making of Music. However due to the current circumstances all support for these activities has had to be suspended and will be reviewed under our future strategy project. 

Page 5 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Objectives and activities (continued)** 

## **f. The Association and its Outreach** 

For the better fulfilment of its objects the Association aspires to be inclusive and has an "open house" policy. Our diverse programme of educational or leisure time activities for people of all ages is open to everybody, regardless of gender, ethnic origin, ability or faith. 

The Association has, for a number of years, been building ever closer links with the local community but we are acutely aware of our history as the German YMCA in London, founded to meet the needs of the German speaking community. This is and remains our identity and culture but it does not preclude us also becoming a “local” YMCA for the Bayswater and Paddington area, a YMCA serving the needs of its community and one where all feel welcome and able to take part in the programmes on offer. 

As a further part of this process we are building on our already good relationships with the Paddington C of E Church, St James’s, and the two local primary schools. We perceive there to be a real opportunity to develop an exciting cooperation, with all the organisations working on projects within our local community. 

Many of the young people with whom we come into contact are foreigners who do not remain long enough in England to consider YMCA membership. Our members' are therefore mainly older, permanent residents, around 300 in number, but they are not representative of the considerable actual outreach of the Association itself. Financially too, the income from members' fees is small, reflecting the social background of the people served. The young still in training and the elderly both belong to the lower income groups in our society. 

The Association supports the work of YMCA England but our grant to YCare International had to be suspended this year on account of the financial constraints imposed by the pandemic. We hope this suspension will only be temporary. 

Leadership support is also given by the Association to a variety of other charities, mostly with a German connection. 

The German Welfare Council, which operates the German Advice Centre from the Association’s premises, has been supported by regular annual grants since 2013 .We have made this office space available free of rent, rates, electricity etc. and a member of the Association’s staff supports the work directly during busy periods and/or to provide holiday cover.  The grant, which had totalled £10,000 in 2019 was suspended in 2020 but the provision of office space was maintained. 

## **g. The direct contribution made by Lancaster Hall Hotel to our Charitable Work** 

The sharing of premises at 31-38 Craven Terrace, in Bayswater in London, between the German YMCA and the Lancaster Hall Hotel has the benefit of ensuring the upkeep of several function rooms for both commercial use and a variety of charitable activity within the local community at little or no cost to the user. 

As a result of the serious impact of the pandemic on the trading company it sustained a trading loss of £220,780 in the current year. However the Charity is committed to supporting Lancaster Hall Hotel Ltd through these difficult times and to this end made a grant of £220,000 to the trading company to ensure is cash liquidity. The Board expects to maintain this support for 2021 if required. 

Page 6 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Achievements and performance** 

## **a. Key performance indicators** 

The successful achievement and development of our charitable activities rests on three important financial pillars: 

Our dividend income: 

In normal times the Lancaster Hall Hotel would provide the bulk of funding for the Association. It was forced to cease trading from March until June 2020 and was then only able trade at much reduced levels for the rest of the year, at times for key workers only, and no dividend payment to the parent has been possible in the circumstances. 

Our Investment Portfolio: 

Part of our Reserves are invested in a multi asset fund designed for Charities. In the year under review a total of £399,518 was drawn down from the portfolio to ensure continued liquidity. The value of the portfolio was £677,245 at the end of the current year. 

We remain satisfied that the fund is an appropriate investment vehicle for our reserves, providing stable returns whilst safeguarding the real value of our assets. 

Our Property Portfolio: 

Our property holdings comprise not only the premises of our Association and the Lancaster Hall Hotel in Craven Terrace but also four adjacent Victorian houses in Craven Road. These serve to preserve and grow a further part of our reserves and provide us with useful rental income. This amounted to £ 145,543 in the year under review (2019: £138,136) 

## **b. Investment policy and performance** 

The investments of the charity are managed by Cazenove Capital Management, whose objective is to maximise total return with due regard for risk. 

Apart from limited cash reserves held on a Business Reserve Account, the reserves are invested via Cazenove Capital Management through their Charity Multi Asset Fund. The Charity Multi Asset Fund is a common investment fund designed for charities seeking to maintain the real value of their capital over the medium to long term whilst generating a sustainable and reliable distribution level (from income and capital). The portfolio aims to deliver returns similar to equity markets but with a lower level of volatility and is well diversified across asset classes and incorporates exposure to alternative asset classes such as hedge funds, private equity and commodities. The majority of the portfolio is invested in readily tradeable assets, but there is also likely to be a modest exposure to illiquid assets at any point in time. 

The value of these investments was  £1,076,763 at the 1st January 2020. After realising £399,518 through the sale of part of the portfolio in the first half of the year, the valuation of the residual portfolio at the 31st December 2020 was £677,245. 

Page 7 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Achievements and performance (continued)** 

## **c. Property portfolio** 

The Association owns the freehold of properties 31 to 38 Craven Terrace, (the Lancaster Hall Hotel and 5 Victorian terraced houses) and 39 to 45 Craven Road, (4 Victorian terraced houses). All properties are free of charges. 

In March 2020 a valuation of the properties in Craven Road was undertaken by Sloan Property Services. The value of these properties has been revised to £3,650,000 and this is reflected in the balance sheet, after making an adjustment to take account of the partial occupation of the premises by members of staff. 

## **d. Grant making policies** 

The charity, as part of its budgeting procedure, draws up an annual “Proposed Financial Aid Schedule”. As a result of Brexit and other uncertainties being faced by the trading company in 2019 the amount dispensed by way of grants had already been trimmed back by some 20%, In early 2020 the aid budget was further reduced by over 10% to £57,975. However, once the implications of the pandemic became clear it was agreed that all grants not already made would be cancelled and the applicants informed. In total grants of £13,959 were made. This includes £7,732 for the affiliation fee due to YMCA England and Wales. 

The Grant Application Guidelines are reviewed and updated from time to time. The last review was in 2018 and the Trustees will of necessity revisit the policy post Covid. It is their wish to resume grant-making activity as soon as circumstances permit. 

## **Financial review** 

## **a. Going concern** 

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

## **b. Reserves policy** 

In previous year it has been the policy of the Association to maintain its liquid funds at a level to be able to support future projects and maintain its property portfolio. The wisdom of holding these reserves has enabled the Association to not only survive the pandemic but also support its trading subsidiary, the Lancaster Hall Hotel. 

The reserves of the charity total £4,409,054 (2019: £4,429,745), including £1,356,240 of liquid assets. Whilst the far-reaching impact of the pandemic has underlined the importance of the Association’s reserves, it has also served to emphasise the need for liquidity. The Trustees will thus not only seek over time to increase the absolute level of the reserves against future contingencies but also to ensure that appropriate levels of liquidity are maintained. 

The charity does not rely on any grants from Governments or other sources although certain of our volunteer projects are supported to a modest degree by grants from the British Council and, since 2019, a grant from Ecorys where €1,000,000 has been allocated over a period of 3 years. This grant was made to the German YMCA, Bournemouth YMCA and YMCA Sutton Coldfield. 

Page 8 



**GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **c. Principal funding** 

The Association has three principal sources of funding: 

Donations from its trading subsidiary the Lancaster Hall Hotel Income from investment properties Income from its investment portfolio with Cazenove 

In previous years funding from donations by the Lancaster Hall Hotel have been the major source of income but as detailed elsewhere in this report the pandemic severely restricted its trading, resulting in the hotel making a loss and requiring the support of the Association to maintain cash liquidity. 

## **Structure, governance and management** 

## **a. Constitution** 

As part of our project mentioned last year to put in place an incorporated structure that eliminates the exposure of our Trustees to unlimited liability, we have with our lawyers been revising the Constitution of the German YMCA to reflect modern practice and to update our objects to align them better with our charitable aspirations. The revised Constitution finally received the assent of the Charity Commission in February 2020 and it now awaits formal adoption by the Association. 

In summary the future objects will be: 

-to advance the Christian Faith by encouraging people on the path to a Christian way of life and promoting Christian values 

-to advance religious faith by general support for churches, in particular the German churches in the UK and our local churches in Bayswater. 

-to provide facilities for social welfare, for cultural activity, recreation and leisure, for young and old, and especially those in deprived circumstances. 

-the prevention and relief of poverty 

-to provide educational opportunities, especially for young people 

-to promote racial harmony, especially between Germany and the United Kingdom 

## **b. Methods of appointment or election of Trustees** 

The management of the charity is the responsibility of the Trustees who form the Board of Management and are elected and co-opted under the terms of the Model Constitution YMCA adopted 21 November 1977, amended 8 June 1993 and last amended 24 June 2003. Trustees are elected at the Annual General Meeting of the charity for a term of three years. 

Holding Trustees of the charity, apart from the National Council of YMCAs, are Members of the Board of Management.  These are the continuing trustees appointed in accordance with the Declaration of Trust of 12 May 1969 and Deeds of Appointment dated 9 March 2011 and 15 February 2015: 

C Daur D Losse   Chairman S Haase who replaced P Mallinckrodt The National Council of YMCAs (Incorporated) 

Mr U Maynard is General Secretary and also the Managing Director of Lancaster Hall Hotel Limited. 

Page 9 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Structure, governance and management (continued)** 

## **c. Policies adopted for the induction and training of Trustees** 

Newly appointed trustees are provided with copies of the charity’s constitution, the previous year’s “Trustees Report and Financial Statements” and the previous three year’s “Annual Review”. There is an oral induction dealing with the philosophy, history and objectives of the charity. 

Newly appointed trustees are inducted into their responsibilities and duties under Charity Commission regulations on the basis of Charity Commission publications. 

Ongoing trustee development takes place at each meeting of the Board of Management. 

## **d. Pay policy for senior staff** 

Senior staff are paid with reference to pay scales developed by YMCA England and pay increases are implemented as suggested annually by YMCA England. The YMCA England pay scales and the associated increases are themselves based on those used by local government. There is a Remuneration sub committee consisting of three trustees which reviews the salaries from time to time and makes adjustments as these become necessary to ensure a fair rate of remuneration. 

## **e. Organisational structure and decision making** 

The members of the Board of Management are responsible for the day to day running of the charity and its trading subsidiary, Lancaster Hall Hotel Limited. The Board of Management reports annually to the Annual General Meeting of the charity. 

The day to day management of Lancaster Hall Hotel Limited is the responsibility of its Directors, appointed by the Board of Management. For the current year these were: 

D Losse P Mallinckrodt (until 16th March 2020) U Maynard – Managing Director and Company Secretary R Tinsley 

Page 10 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Structure, governance and management (continued)** 

## **f. Risk management** 

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity and its trading subsidiary, and are satisfied that systems are in place to mitigate our exposure to the major risks. 

## Finances: 

The Association and trading company control procedure: 

There is a strict budgetary and monitoring regime in place which ensures that income and expenditure is reviewed monthly and any necessary action initiated. The accounts are reviewed regularly by the Board of Management and all Board decisions are based on up to date financial information. 

## Investments: 

For short term investments a Business Reserve Accounts is used.  Long term investments with Cazenove Capital Management Limited are divided between equities, fixed interest and cash pool accounts. Investment reports are received quarterly as are cash pool accounts and are submitted to the Board of Management periodically for review. 

## Properties / Liabilities: 

All plant is professionally maintained by outside contractors.  The following insurance covers are in place: 

Property Insurance (Fire and other perils) 

Employer’s liability Public liability Terrorist Three year's loss of income Employer’s legal expenses Directors’ liability 

In house security (the charity's offices): 

Apart from the mandatory fire alarm systems a camera/recording surveillance system is in place, the reception desk is manned 24 hours a day and regular night patrols are effected. 

## Staff security: 

Exposed staff have to follow an established code of practice to minimise risk.  They have a bleep or emergency call button facility to call for assistance. 

## Health and Safety Risk Assessment: 

A comprehensive risk assessment, covering all operational activities of the charity and hotel has been carried out and is regularly reviewed.  All staff are given a risk assessment relevant to their department during induction. 

A Fire Risk Assessment is carried out annually by an independent consultant for the buildings 31 to 38 Craven Terrace. 

Page 11 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **Structure, governance and management (continued)** 

## Staff induction: 

All staff receive a comprehensive induction into all aspects of the charity’s or hotel’s operation, with special emphasis on health and safety issues and fire training. 

The GDPR will be introduced in May 2018 and both the Association and trading company are working towards implementing policies and procedures that will assure compliance by this date. 

## **Plans for future periods** 

## **a. Future developments** 

After extended discussions with the Charity Commission and with the strong support of our lawyers, assent was finally given on the 18th December 2019 for the registration of the German Christian Association (London) CIO., Charity No1187036, with identical objects to those of the German YMCA. The new CIO will ultimately hold some of the Association’s assets in trust and will act as its Corporate Trustee, bringing to an end the era of unlimited liability for our individual trustees. 

An EGM to adopt the revised Constitution of the German YMCA, a necessary step to enable the transfer of assets to the CIO, was due to be held in March 2020. This had to be cancelled due to the pandemic. Consideration was given to holding an EGM via Zoom but this was not followed up as it was felt such a major decision needs to be taken at an in-person meeting. In addition, not all full members have the necessary IT facilities to take part in a Zoom meeting. 

In its efforts to raise governance standards across the federation, YMCA E &W has introduced a new Membership Agreement regulating the terms and conditions of Affiliation, along with a “Health Check” detailing the financial condition of each of the constituent members. The Board signed the Membership Agreement in March 2021. 

## **Disclosure of information to auditors** 

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

- so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and 

- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information. 

Page 12 



GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON
TRUSTEES. REPORT ICONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
Auditors
The auditors. Haslers. *ave Indicated Iheir iyillingness to conlinue in office. The designated Trustees ¥vill propose
molion reappoin11￿ Ihe aud.tors at a moeling ol the Truslees.
Approved t)y order of the members of the tx)ard ol TTusl&S on 17 January 2022 and ￿ne￿ on Iheir benall by.
IIL
D Losse
(Truslee
M Tinsley
(Trusl￿￿
Page 13

GERMAN YOUNG MEN'S CHRISTIAN ASSOGIATION IN LONDON
STATEMENT OF TRUSTEES. RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2020
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ea¢.h IiYanr.ial whic.h gwp Irire and fiiir view ol the <t3-.e of aftciirf of the Grciip anrl Ihe Charity and cf their
inccjmiiq resou", ces and <ipplic.atioTr of re5c>urees. Incj￿dlTrg their Incorne and expenrjiliirp fc.- Ihai pprind. I
prepar4ng these financial statements. the Tnjstees are required lo-
seleLI suilèble accounlina polKies ond Ihen dpply Ihem consisienlly..
observe Ine m&lhodS an¢ prin=Iples of tho Charities SORP IFRS 1021..
make iudgerr,enis anc aCCOlinling E.Stimates ?hal are reason8tye and pwdent-.
stale whetkier applicable UK Accounling Slandaids IFRS 1021 have bp.en followed. su)jpci to any material
departure% disdosed and explained In the financial slalemenls".
?rpr)are the financi31 sl?lempnls on Ihe Going concern unless il Is inappropriate lo presi&rnv. thAt IhR
Group wll conl,n.ie in business.
The Truslees are rosponsible lor keeping ad¢quale accounting records that are sulficienl to show and explain
Ihe Group ayd thc Charity's transactions and disclose wilh reasonable accuracy ai any time the fifidnLidl i)osilion
I the Group and Ihe Charity and enable ihern lo ensure '.hai Ihe finartial slatemer)Is comply with the Charities
-counts ai)d Rep(￿$1 Rooiilations 2008 3n(J the prnvislons ol the Triist depd. Tl?y arp
A￿1 201 l. Ihp Charity (A-
alsa responsible lor saleguarding the assels cl the GroL'p and ltrie C*arily aid he￿￿ lor taking reasonable stops
lor the preven'.K)n anrt detection o. Traud and olher IrregiiLiritieg
Apprc)vpd by order of the membprs of tho tK)ard of Trustees on 17 Jgnciary 2Q22 and signed on ils behalf by..
D Losse
Triistpe
Truqiee
Page 14

## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **Opinion** 

We have audited the financial statements of German Young Men's Christian Association in London (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the Consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn. 

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. 

In our opinion the financial statements: 

- give a true and fair view of the state of the Group's and of the parent charity's affairs as at 31 December 2020 and of the Group'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 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the 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 Group's or the parent 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. 

Page 15 



**GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON (CONTINUED)** 

## **Other information** 

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditors' report thereon. Our opinion on the financial statements does not cover the other information and 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. 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires 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 

- the parent Charity has not kept sufficient accounting records; or 

- the parent Charity 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, the Trustees are responsible for the preparation of the financial statements which 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 Group's and the parent 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 Group or the parent charity or to cease operations, or have no realistic alternative but to do so. 

Page 16 



**GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON (CONTINUED)** 

## **Auditors' responsibilities for the audit of the financial statements** 

We have been appointed as auditor under section 151 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 auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

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

- Scrutinising journals, and other adjustments posted during the year for evidence of unusual entries 

- Carrying out substantive testing to cover authorisation of expenditure in line with the financial processes. 

- Carrying out walkthrough testing to ensure internal controls are in place to prevent errors and fraud. 

- Assessment of appropriateness of accounting estimates. 

- Review of large and unusual bank transactions 

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

## **Use of our report** 

This report is made solely to the 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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed. 


## **Haslers** 

Chartered Accountants Statutory Auditor Old Station Road Loughton Essex IG10 4PL 

17 January 2022 

Haslers are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. 

Page 17 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020** 

|**Note**<br>**Income from:**<br>Donations and legacies<br>3<br>Other trading activities<br>4<br>Investments<br>5<br>Other income<br>6<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>Charitable activities<br>**Total expenditure**<br>**Net (expenditure)/income before net**<br>**(losses)/gains on investments**<br>Net (losses)/gains on investments<br>**Net (expenditure)/income before**<br>**taxation**<br>Taxation<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>Net movement in funds<br>**Total funds carried forward**|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**15,511**<br>**-**<br>**-**<br>**-**<br>**15,511**<br>**-**<br>**49,472**<br>**49,472**<br>**(33,961)**<br>**-**<br>**(33,961)**<br>**-**<br>**(33,961)**<br>**65,364**<br>**(33,961)**<br>**31,403**|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**408,528**<br>**433,058**<br>**176,857**<br>**287,018**<br>**1,305,461**<br>**864,705**<br>**652,677**<br>**1,517,382**<br>**(211,921)**<br>**(46,380)**<br>**(258,301)**<br>**50,791**<br>**(207,510)**<br>**4,656,526**<br>**(207,510)**<br>**4,449,016**|**Total**<br>**funds**<br>**2020**<br>**£**<br>**424,039**<br>**433,058**<br>**176,857**<br>**287,018**<br>**1,320,972**<br>**864,705**<br>**702,149**<br>**1,566,854**<br>**(245,882)**<br>**(46,380)**<br>**(292,262)**<br>**50,791**<br>**(241,471)**<br>**4,721,890**<br>**(241,471)**<br>**4,480,419**|_Total_<br>_funds_<br>_2019_<br>_£_<br>_150,046_<br>_2,051,791_<br>_182,443_<br>_15,516_<br>_2,399,796_<br>_1,277,920_<br>_1,045,898_<br>_2,323,818_<br>_75,978_<br>_79,980_<br>_155,958_<br>_(44,209)_<br>_111,749_<br>_4,610,141_<br>_111,749_<br>_4,721,890_|
|---|---|---|---|---|



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

The notes on pages 22 to 48 form part of these financial statements. 

Page 18 



GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON
CONSOLIDATED BALANCE SHE
AS AT 31 DECEMBER 2020
2020
2019
Note
Fixed assèts
T¢7ngible asseis
Invesiinenls
10
701.890
T1 T.967
1.076.763
2.8t15.000
12
677.245
2,B85.000
Investment prcperty
4,264.135
4.679. 7JO
Current assets
Stock5
13
9,437
47.316
727.617
14.389
190.568
Dpblors
Cash a: bank an¢J In hand
14
784.370
840.07 1
Creditors.. amounts lalliTh3 due within one
ye8r
13Z9.2841
(542.6991
Net current assels
455.086
297, 318
Tolal assets less current liabililies
4.719.221
4,977.048
Creditor5" amounts 4alling due after more
Ihan one year
Prowsions for lifibd11ies
16
1227.7801
111.0221
(242.2651
(12,893}
Net assets excluding pension asset
4,480.419
4. 721.890
Total net assels
4.480.419
4. 721.890
Charity funds
Reslriclcd lunrts
Unrtr.-.Iriclcd fLinds
18
18
31.403
4,449,016
65.364
4 656.526
Total funds
4.480.419
4, 721.890
The financial statements weie approved and authorised lor issue by the Trustees on 17 January 2022 and
sig
d op their behall by.
D L0s5e
Trustee
M Tinsley
Trustee
The nolps on page$ 22 10 48 lorfll PArt of Ihese financk31 sl3temenls_
Page 19

GERMAN YOUNG MEN'S CHRISllAN ASSOCIATION IN LONDON
CHARITY BALANCE SHEET
AS AT 31 DECEMBER 2020
2020
2019
Note
Fixèd assets
T1( ngible assels
Inveslmeiiis
10
47fl.798
470 798
12
678,245
2.885,000
I,OT7. T63
2.885.C>OC>
Investment property
4.034.043
4,433.561
Current assets
Oeblors
Cash al bank and tn hond
14
58,345
677,995
24.979
467.878
736.340
486.857
Creditors arF¥OLbnls lallino due wilhin cffje
year
15
1133.5491
1248.4081
Net currenl 35sels
602.791
2'18.449
Total assets less current liabilities
4.636.834
4.672.010
Lredilors." amou￿1$ falling due aller more
Ilian 0118 y¥ar
16
1227.78Ql
1242 2651
Net assets exeluding pension asset
4.409.054
4.429. T45
Total net assets
4.409.054
4.429.745
Charily funds
Resiricied liirids
18
31.403
4,377.651
Uniestricled lunL15
18
4.364.381
Total fund$
4.409,054
4 4?9. 745
The iinancial slalemenls We￿ appioved and aLSlhorised for issue by the Trusièes on 17 January 2022 and
signed on their behalf by
O Losse
T ruslee
M Tinsley
I ruslee
The nctes on Pdges 22 10 48 Iofni. part of these financial sialetnents.
Page 20

## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020** 

|**Cash flows from operating activities**<br>Net cash used in operating activities<br>**Cash flows from investing activities**<br>Cash pool movements<br>**Net cash provided by investing activities**<br>**Net cash provided by financing activities**<br>**Change in cash and cash equivalents in the year**<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year**<br>The notes on pages 22 to 48 form part of these financial statements|**2020**<br>**£**<br>**(275,431)**<br>**367,988**<br>**367,988**<br>**-**<br>**92,557**<br>**635,060**<br>**727,617**|_2019_<br>_£_<br>_170,691_|
|---|---|---|
|||_99,715_|
|||**99,715**|
|||**-**<br>**270,406**<br>_364,654_|
||||
|||_635,060_|
||||



Page 21 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **1. General information** 

German Young Men's Christian Association in London is a charitable organisation, registered in England and Wales, with a charity number of 250118. The registered address is 34 Craven Terrace, Lancaster Gate, London, W2 3EL. 

## **2. Accounting policies** 

## **2.1 Basis of preparation of financial statements** 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. 

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 the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

German Young Men's Christian Association in London meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 

The financial statements are presented in pound sterling which is the functional currency of the company and rounded to the nearest £. 

The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. 

## **2.2 Going concern** 

The obligation to prepare these statements on a going concern basis has been considered by reference to budgets, forecasts and projected cash flows, as well as grant funding received post-year end. In particular, due consideration has been given to the impact of the Covid-19 pandemic on the operations of both the German YMCA and its subsidiary company, The Lancaster Hall Hotel Limited. 

Given the strength of the property assets and availability and liquidity of cash and unrestricted investments the Trustees consider that there are no material uncertainties that may cast significant doubt about the ability of the group to continue as a going concern for the foreseeable future, defined as a period of 12 months from the date of approving these financial statements. 

Page 22 



**GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **2. Accounting policies (continued)** 

## **2.3 Income** 

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

Grants are included in the consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. 

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. 

## **2.4 Expenditure** 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. 

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

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

## **2.5 Government grants** 

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

## **2.6 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. 

Page 23 



**GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **2. Accounting policies (continued)** 

## **2.7 Tangible fixed assets and depreciation** 

Tangible fixed assets costing £250 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 

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

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. 

Depreciation is provided on the following bases: 

|Freehold property|- 0% straight line|
|---|---|
|Fixtures and fittings|- 15% straight line|
|Computer equipment|- 25% straight line|



## **2.8 Investments** 

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

Investments in subsidiaries are valued at cost less provision for impairment. 

## **2.9 Stocks** 

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. 

## **2.10 Debtors** 

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

## **2.11 Cash at bank and in hand** 

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

Page 24 



**GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **2. Accounting policies (continued)** 

## **2.12 Liabilities** 

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

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

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

## **2.13 Deferred taxation** 

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation. 

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable surpluses from which the future reversal of the underlying timing differences can be deducted. 

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse. 

## **2.14 Financial instruments** 

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

## **2.15 Pensions** 

German Young Men's Christian Association In London 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 and accruals on 30 April 2007. Due to insufficient information, the plan's actuary has advised that it is not possible to seperately identify the assets and liabilities relating to German Young Men's Christian Association In London 

As described in note 20 German Young Men's Christian Association In London has a contractual obligation to make pension deficit payments of £26,841 pa over the period to April 2027, accordingly this is shown as a liability in notes 15 and 16 to these accounts. In addition, German Young Men's Christian Association In London is required to contribute £6,879 pa to the operating expenses of the Pension Plan and these costs are charged to the Statement of Financial Activities as made. 

Page 25 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **2. Accounting policies (continued)** 

## **2.16 Fund accounting** 

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

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

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

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

## **3. Income from donations and legacies** 

|Donations<br>Grants<br>Government grants<br>_Total 2019_|**Restricted**<br>**funds**<br>**2020**<br>**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**£**<br>-<br>345,526<br>15,511<br>-<br>-<br>63,002<br>15,511<br>408,528<br>_85,044_<br>_65,002_|**Total**<br>**funds**<br>**2020**<br>**£**<br>**345,526**<br>**15,511**<br>**63,002**<br>**424,039**<br>_150,046_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_65,002_<br>_85,044_<br>_-_|
|---|---|---|---|
||||_150,046_|
|||||



Page 26 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **4. Income from other trading activities** 

## **Income from fundraising events** 

|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>Income from Christmas Bazaar<br>-<br>Income from Lancaster Hall Hotel Limited<br>432,638<br>Income from Bring and Buy<br>350<br>Income from Voices in Harmony<br>70<br>433,058<br>_Total 2019_<br>_2,051,791_|**Total**<br>**funds**<br>**2020**<br>**£**<br>**-**<br>**432,638**<br>**350**<br>**70**<br>**433,058**<br>_2,051,791_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_10,114_<br>_2,039,454_<br>_1,441_<br>_782_|
|---|---|---|
|||_2,051,791_|
||||



## **5. Investment income** 

|Rental Income<br>Dividends and tax credits<br>Interest on deposits<br>_Total 2019_|**Restricted**<br>**funds**<br>**2020**<br>**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**£**<br>-<br>143,543<br>-<br>32,955<br>-<br>359<br>-<br>176,857<br>_48_<br>_182,395_|**Total**<br>**funds**<br>**2020**<br>**£**<br>**143,543**<br>**32,955**<br>**359**<br>**176,857**<br>_182,443_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_138,136_<br>_43,460_<br>_847_|
|---|---|---|---|
||||_182,443_|
|||||



Page 27 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **6. Other incoming resources** 

|Government grants<br>Membership fees received<br>Income in respect of Au-Pair services<br>_Total 2019_|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>280,696<br>3,575<br>2,747<br>287,018<br>_15,516_|**Total**<br>**funds**<br>**2020**<br>**£**<br>**280,696**<br>**3,575**<br>**2,747**<br>**287,018**<br>_15,516_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_-_<br>_6,619_<br>_8,897_|
|---|---|---|---|
||||_15,516_|
|||||



_Total 2019_ 

## **7. Analysis of expenditure** 

|German YMCA Work and Youth Work<br>British Council Grant<br>National Agency Grant<br>Adult Education<br>Schubertiade Concert<br>Hilda Sloan Legacy<br>Support costs<br>_Total 2019_|**Activities**<br>**undertaken**<br>**directly**<br>**2020**<br>**£**<br>184,677<br>18,350<br>31,030<br>1,513<br>1,970<br>-<br>-<br>237,540<br>_366,106_|**Support**<br>**costs**<br>**2020**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>91<br>464,518<br>464,609<br>_679,793_|**Total**<br>**funds**<br>**2020**<br>**£**<br>**184,677**<br>**18,350**<br>**31,030**<br>**1,513**<br>**1,970**<br>**91**<br>**464,518**<br>**702,149**<br>_1,045,899_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_323,959_<br>_6,448_<br>_23,580_<br>_7,861_<br>_4,258_<br>_-_<br>_679,793_|
|---|---|---|---|---|
|||||_1,045,899_|
||||||



Page 28 



**GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **7. Analysis of expenditure (continued)** 

## **Analysis of direct costs** 

|Staff costs<br>Travel and coach hire<br>Honorariums<br>Youth office costs<br>Postage and Stationery<br>Conference fees<br>Telephone and communications<br>Equipment leasing<br>Sundry expenses<br>Donations<br>Schubertiade concert costs<br>Cost of providing lessons<br>Costs of placements<br>Training<br>Xmas Market Costs<br>_Total 2019_|**German**<br>**YMCA Work**<br>**and Youth**<br>**Work**<br>**2020**<br>**£**<br>156,500<br>331<br>80<br>9,560<br>539<br>28<br>173<br>823<br>3,132<br>13,511<br>-<br>-<br>-<br>-<br>-<br>184,677<br>_323,959_|**British**<br>**Council**<br>**Grant**<br>**2020**<br>**£**<br>-<br>1,709<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>16,876<br>(235)<br>-<br>18,350<br>_6,448_|**National**<br>**Agency**<br>**Grant**<br>**2020**<br>**£**<br>-<br>8,518<br>-<br>1,136<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>21,376<br>-<br>-<br>31,030<br>_23,580_|**Adult**<br>**Education**<br>**2020**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,512<br>-<br>-<br>-|
|---|---|---|---|---|
||||||
|||||1,512|
||||||
|||||_7,861_|



Page 29 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **7. Analysis of expenditure (continued)** 

## **Analysis of direct costs (continued)** 

|Staff costs<br>Travel and coach hire<br>Honorariums<br>Youth office costs<br>Postage and Stationery<br>Conference fees<br>Telephone and communications<br>Equipment leasing<br>Sundry expenses<br>Donations<br>Schubertiade concert costs<br>Cost of providing lessons<br>Costs of placements<br>Training<br>Xmas Market Costs<br>_Total 2019_|**Schubertiade**<br>**Concert**<br>**2020**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,970<br>-<br>-<br>-<br>-<br>1,970<br>_4,258_|**Total**<br>**funds**<br>**2020**<br>**£**<br>**156,500**<br>**10,558**<br>**80**<br>**10,696**<br>**539**<br>**28**<br>**173**<br>**823**<br>**3,132**<br>**13,511**<br>**1,970**<br>**1,512**<br>**38,252**<br>**(235)**<br>**-**<br>**237,539**<br>_366,106_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_231,510_<br>_15,051_<br>_325_<br>_18,936_<br>_3,144_<br>_1,400_<br>_396_<br>_1,078_<br>_5,933_<br>_52,905_<br>_4,258_<br>_7,861_<br>_16,607_<br>_685_<br>_6,017_|
|---|---|---|---|
||||_366,106_|
|||||



Page 30 



**GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **7. Analysis of expenditure (continued)** 

## **Analysis of support costs** 

|Postage and Stationery<br>Depreciation on fixtures and fittings<br>Telephone and communications<br>Sundry expenses<br>Auditors Fees<br>Legal & Professional<br>Pension Expense<br>Insurance<br>Property Expense<br>Bank charges<br>Salaries<br>Accountancy Fees<br>Water Rates<br>Advertising<br>Light and heat<br>Computer costs<br>Subscriptions<br>Property maintenance<br>**Auditors' remuneration**<br>Fees payable to the Charity's auditor for the audit of the Charity's annual<br>accounts<br>Fees payable to the Charity's auditor in respect of:<br>Taxation compliance services|**Total**<br>**funds**<br>**2020**<br>**£**<br>**2,571**<br>**16,077**<br>**16,880**<br>**522**<br>**25,500**<br>**71,732**<br>**6,879**<br>**68,454**<br>**20,697**<br>**8,903**<br>**44,439**<br>**3,504**<br>**8,468**<br>**4,131**<br>**54,740**<br>**28,957**<br>**18,438**<br>**63,716**<br>**464,608**<br>**2020**<br>**£**<br>**24,900**<br>**1,500**|_Total_<br>_funds_<br>_2019_<br>_£_<br>_7,660_<br>_18,164_<br>_16,899_<br>_3,279_<br>_25,400_<br>_45,183_<br>_13,031_<br>_68,239_<br>_99,728_<br>_29,616_<br>_58,141_<br>_1,488_<br>_22,328_<br>_7,754_<br>_68,174_<br>_27,320_<br>_25,855_<br>_141,534_|
|---|---|---|
|||_679,793_|
|||_2019_<br>_£_<br>_25,400_<br>_1,500_|



## **8. Auditors' remuneration** 

Page 31 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **9. Staff costs** 

|**Group**<br>_Group_<br>**2020**<br>_2019_<br>**£**<br>_£_<br>Wages and salaries<br>**883,794**<br>_1,140,099_<br>Other pension costs<br>**26,491**<br>_31,869_<br>**910,285**<br>_1,171,968_<br>The average number of persons employed by the Charity during the year was<br>**Group**<br>_Group_<br>**2020**<br>_2019_<br>**No.**<br>_No._<br>Charity staff<br>**6**<br>_6_<br>Hotel staff<br>**32**<br>_41_<br>**38**<br>_47_|**Charity**<br>**2020**<br>**£**<br>**142,055**<br>**14,445**<br>**156,500**<br>as follows:<br>**Charity**<br>**2020**<br>**No.**<br>**6**<br>**-**<br>**6**|_Charity_<br>_2019_<br>_£_<br>_215,302_<br>_16,208_|
|---|---|---|
|||_231,510_<br>_Charity_<br>_2019_<br>_No._<br>_6_<br>_-_|
||||
|||_6_|



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

Total remuneration paid to key management personnel was £144,443 (2019: £162,924) 

Page 32 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **10. Tangible fixed assets** 

## **Group** 

|**Cost or valuation**<br>At 1 January 2020<br>At 31 December 2020<br>**Depreciation**<br>At 1 January 2020<br>Charge for the year<br>At 31 December 2020<br>**Net book value**<br>At 31 December 2020<br>_At 31 December 2019_|**Freehold**<br>**property**<br>**£**<br>**683,213**<br>**683,213**<br>**44,105**<br>**4,248**<br>**48,353**<br>**634,860**<br>_639,108_|**Fixtures and**<br>**fittings**<br>**£**<br>**392,225**<br>**392,225**<br>**313,366**<br>**11,829**<br>**325,195**<br>**67,030**<br>_78,859_|**Computer**<br>**equipment**<br>**£**<br>**34,612**<br>**34,612**<br>**34,612**<br>**-**<br>**34,612**<br>**-**<br>_-_|**Total**<br>**£**<br>**1,110,050**|
|---|---|---|---|---|
|||||**1,110,050**|
|||||**392,083**<br>**16,077**|
|||||**408,160**|
|||||**701,890**|
|||||_717,967_|



Page 33 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **10. Tangible fixed assets (continued)** 

## **Charity** 

|**Cost or valuation**<br>At 1 January 2020<br>At 31 December 2020<br>**Depreciation**<br>At 1 January 2020<br>At 31 December 2020<br>**Net book value**<br>At 31 December 2020<br>_At 31 December 2019_|**Freehold**<br>**property**<br>**£**<br>**470,798**<br>**470,798**<br>**-**<br>**-**<br>**470,798**<br>_470,798_|**Fixtures and**<br>**fittings**<br>**£**<br>**24,146**<br>**24,146**<br>**24,146**<br>**24,146**<br>**-**<br>_-_|**Total**<br>**£**<br>**494,944**|
|---|---|---|---|
||||**494,944**|
||||**24,146**|
||||**24,146**|
||||**470,798**|
||||_470,798_|



Page 34 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

|**11.**<br>**Investment property**<br>**Group**<br>**Valuation**<br>At 1 January 2019 as restated<br>At 31 December 2020<br>**Charity**<br>**Valuation**<br>At 1 January 2019 as restated<br>At 31 December 2020|**Freehold**<br>**investment**<br>**property**<br>**£**<br>**2,885,000**|
|---|---|
||**2,885,000**|
||**Freehold**<br>**investment**<br>**property**<br>**£**<br>**2,885,000**|
||**2,885,000**|



The investment property shown above includes the properties of 39, 41, 43 and 45 Craven Road. The fair value of these properties as valued by Sloan Property Services is £3,650,000. However because some of these properties are held as staff accomodation and used within the group their fair value is not reflected in the accounts, instead their signficantly lower cost value is shown within the tangible fixed asset note. 

Page 35 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **12. Fixed asset investments** 

|**Group**<br>**Cost or valuation**<br>At 1 January 2020<br>Disposals<br>Revaluations<br>Transfers between classes<br>**At 31 December 2020**<br>**Net book value**<br>**At 31 December 2020**<br>_At 31 December 2019_<br>**Charity**<br>**Cost or valuation**<br>At 1 January 2020<br>Disposals<br>Revaluations<br>Transfers between classes<br>**At 31 December 2020**<br>**Net book value**<br>**At 31 December 2020**<br>_At 31 December 2019_|**Investments**<br>**in**<br>**subsidiary**<br>**companies**<br>**£**<br>**1,000**<br>**-**<br>**-**<br>**-**<br>**1,000**<br>**1,000**<br>_1,000_|**Listed**<br>**investments**<br>**£**<br>**1,076,763**<br>**(358,857)**<br>**(31,528)**<br>**(9,133)**<br>**677,245**<br>**677,245**<br>_1,076,763_|**Listed**<br>**investments**<br>**£**<br>**1,076,763**<br>**(358,857)**<br>**(31,528)**<br>**(9,133)**<br>**677,245**<br>**677,245**<br>_1,076,763_<br>**Total**<br>**£**<br>**1,077,763**<br>**(358,857)**<br>**(31,528)**<br>**(9,133)**<br>**678,245**<br>**678,245**<br>_1,077,763_|
|---|---|---|---|



Page 36 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **12. Fixed asset investments (continued)** 

## **Principal subsidiaries** 

The following was a subsidiary undertaking of the Charity: 

||**Name**|**Registered office or**|**Registered office or**|**principal**|**Holding**<br>**Included in**|**Holding**<br>**Included in**|**Holding**<br>**Included in**|
|---|---|---|---|---|---|---|---|
|||**place of business**||||**consolidation**||
||Lancaster Hall Hotel Limited|England and Wales||||100% Yes||
||The financial results of the subsidiary for the year were:|||||||
||**Name**|**Income**|**Expenditure**||**Profit/(Loss)**||**Net assets**|
|||**£**||**£**||**/ Surplus/**|**£**|
|||||||**(Deficit) for**||
|||||||**the year**||
|||||||**£**||
||Lancaster Hall Hotel Limited|**933,465**|**(1,154,245)**|||**(220,780)**|**72,365**|
|**13.**|**Stocks**|||||||
|||||||**Group**|_Group_|
|||||||**2020**|_2019_|
|||||||**£**|_£_|
||Finished goods and goods for resale|||||**9,437**|_14,389_|
|**14.**|**Debtors**|||||||
|||**Group**||_Group_||**Charity**|_Charity_|
||||**2020**|_2019_||**2020**|_2019_|
||||**£**||_£_|**£**|_£_|
||**Due within one year**|||||||
||Trade debtors|**3,550**||_142,208_||**-**|_17,248_|
||Other debtors|**11,365**|||_-_|**53,084**|_-_|
||Prepayments and accrued income|**32,401**||_48,360_||**5,261**|_7,731_|
|||**47,316**||_190,568_||**58,345**|_24,979_|
|||||||||



Page 37 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **15. Creditors: Amounts falling due within one year** 

|Pension contractual liability<br>Trade creditors<br>Corporation tax<br>Other taxation and social security<br>Other creditors<br>Accruals and deferred income|**Group**<br>**2020**<br>**£**<br>**28,305**<br>**137,260**<br>**-**<br>**10,686**<br>**82,927**<br>**70,106**<br>**329,284**|_Group_<br>_2019_<br>_£_<br>_26,841_<br>_124,733_<br>_46,394_<br>_108,130_<br>_187,672_<br>_48,929_<br>_542,699_|**Charity**<br>**2020**<br>**£**<br>**28,305**<br>**4,616**<br>**-**<br>**1,886**<br>**82,569**<br>**16,173**<br>**133,549**|_Charity_<br>_2019_<br>_£_<br>_26,841_<br>_1,213_<br>_-_<br>_8,118_<br>_186,478_<br>_25,758_|
|---|---|---|---|---|
|||||_248,408_|



## **16. Creditors: Amounts falling due after more than one year** 

|Pension contractual liability<br>Other creditors|**Group**<br>**2020**<br>**£**<br>**144,026**<br>**83,754**<br>**227,780**|_Group_<br>_2019_<br>_£_<br>_165,451_<br>_76,814_<br>_242,265_|**Charity**<br>**2020**<br>**£**<br>**144,026**<br>**83,754**<br>**227,780**|_Charity_<br>_2019_<br>_£_<br>_165,451_<br>_76,814_|
|---|---|---|---|---|
|||||_242,265_|



The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is: 

|Payable or repayable by instalments|**Group**<br>**2020**<br>**£**<br>**111,145**<br>**111,145**|_Group_<br>_2019_<br>_£_<br>_130,688_<br>_130,688_|**Charity**<br>**2020**<br>**£**<br>**111,145**<br>**111,145**|_Charity_<br>_2019_<br>_£_<br>_130,688_|
|---|---|---|---|---|
|||||_130,688_|



Page 38 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **17. Deferred taxation** 

|**Group**<br>At the beginning of the year<br>Other movements|**2020**<br>**£**<br>**12,893**<br>**(1,871)**<br>**11,022**|
|---|---|



The deferred tax balance is made up as follows: 

|Accelerated capital allowances|**Group**<br>**2020**<br>**£**<br>**(11,022)**<br>**(11,022)**|_Group_<br>_2019_<br>_£_<br>_(12,893)_<br>_(12,893)_|
|---|---|---|



Page 39 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

|**18.**<br>**Statement of funds**<br>**Statement of funds - current year**<br>**Unrestricted funds**<br>**Designated funds**<br>Hilda Sloan Legacy<br>Schubertiade Concert<br>**General funds**<br>General Funds<br>Lancaster Hall Hotel Funds<br>Pension<br>Revaluation reserve<br>**Total Unrestricted funds**|**Balance at 1**<br>**January**<br>**2020**<br>**£**<br>**215,939**<br>**1,254**<br>**217,193**<br>**1,658,869**<br>**293,145**<br>**(217,681)**<br>**2,705,000**<br>**4,439,333**<br>**4,656,526**|**Income**<br>**£**<br>**2,048**<br>**411**<br>**2,459**<br>**369,537**<br>**933,465**<br>**-**<br>**-**<br>**1,303,002**<br>**1,305,461**|**Expenditure**<br>**£**<br>**(2,209)**<br>**-**<br>**(2,209)**<br>**(303,258)**<br>**(1,205,036)**<br>**(6,879)**<br>**-**<br>**(1,515,173)**<br>**(1,517,382)**|**Taxation**<br>**£**<br>**-**<br>**-**<br>**-**<br>**-**<br>**50,791**<br>**-**<br>**-**<br>**50,791**<br>**50,791**|**Transfers**<br>**in/out**<br>**£**<br>**(180,341)**<br>**-**<br>**(180,341)**<br>**180,341**<br>**-**<br>**-**<br>**-**<br>**180,341**<br>**-**|**Gains/**<br>**(Losses)**<br>**£**<br>**(35,437)**<br>**-**<br>**(35,437)**<br>**(10,943)**<br>**-**<br>**-**<br>**-**<br>**(10,943)**<br>**(46,380)**|**Balance at**<br>**31**<br>**December**<br>**2020**<br>**£**<br>**-**<br>**1,665**<br>**1,665**<br>**1,894,546**<br>**72,365**<br>**(224,560)**<br>**2,705,000**<br>**4,447,351**<br>**4,449,016**|
|---|---|---|---|---|---|---|---|



Page 40 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **18. Statement of funds (continued)** 

## **Restricted funds** 

|Music Societies Account<br>British Council Grant<br>National Agency Grant<br>**Total of funds**|**92**<br>**9,643**<br>**55,629**<br>**65,364**<br>**4,721,890**|**-**<br>**15,511**<br>**-**<br>**15,511**<br>**1,320,972**|**-**<br>**(18,350)**<br>**(31,122)**<br>**(49,472)**<br>**(1,566,854)**|**-**<br>**-**<br>**-**<br>**-**<br>**50,791**|**-**<br>**-**<br>**-**<br>**-**<br>**-**|**-**<br>**-**<br>**-**<br>**-**<br>**(46,380)**|**92**<br>**6,804**<br>**24,507**|
|---|---|---|---|---|---|---|---|
||||||||**31,403**|
||||||||**4,480,419**|



Unrestricted general - Represents funds for the general use of the Charity towards its charitable objectives on which there is no designation or restriction. 

Schubertiade Concert - Its purpose is to cover the costs of the artists and catering at these concerts which are attended by member of the public. 

Hilda Sloan Legacy - Its purpose is to fund specific projects that are associated with music and is part of the designated general funds. This investment portfolio was disposed during the year, and the cash balance moved to unrestricted general funds. 

Music Societies Account - Its purpose is to fund and facilitate events by various musical societies in Greater London. 

British Council Grant - Its purpose is to provide training and education opportunities for students outside of the UK. 

National Agency Grant - Its purpose is to provide Youth Opportunities. 

Pension Reserve - Its purpose is to disclose separately the pension liability. 

Revaluation Reserve - Its purpose is to disclosure seperately the revaluation on the freehold investment property. 

Page 41 



## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **18. Statement of funds (continued)** 

## **Statement of funds - prior year** 

|**Unrestricted**<br>**funds**<br>**Designated**<br>**funds**<br>Hilda Sloan<br>Legacy<br>Schubertiade<br> Concert<br>**General funds**<br>General Funds<br>Lancaster Hall<br>Hotel Funds<br>Pension<br>Revaluation<br>reserve<br>**Total**<br>**Unrestricted**<br>**funds**|_Balance at_<br>_1 January_<br>_2019_<br>_£_<br>_196,893_<br>_3,580_<br>200,473<br>_1,686,553_<br>_212,467_<br>_(204,651)_<br>_2,705,000_<br>4,399,369<br>4,599,842|_Income_<br>_£_<br>_8,112_<br>_1,229_<br>9,341<br>_265,909_<br>_2,039,454_<br>_-_<br>_-_<br>2,305,363<br>2,314,704|_Expenditure_<br>_£_<br>_(3,994)_<br>_(3,555)_<br>(7,549)<br>_(358,645)_<br>_(1,914,567)_<br>_(13,030)_<br>_-_<br>(2,286,242)<br>(2,293,791)|_Taxation_<br>_£_<br>_-_<br>_-_<br>-<br>_-_<br>_(44,209)_<br>_-_<br>_-_<br>(44,209)<br>(44,209)|_Gains/_<br>_(Losses)_<br>_£_<br>_14,928_<br>_-_<br>_14,928_<br>_65,052_<br>_-_<br>_-_<br>_-_<br>_65,052_<br>_79,980_|_Balance at_<br>_31_<br>_December_<br>_2019_<br>_£_<br>_215,939_<br>_1,254_<br>_217,193_<br>_1,658,869_<br>_293,145_<br>_(217,681)_<br>_2,705,000_<br>_4,439,333_<br>_4,656,526_|
|---|---|---|---|---|---|---|



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## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **18. Statement of funds (continued)** 

|**Restricted**<br>**funds**<br>Music Societies<br>Account<br>British Council<br>Grant<br>National Agency<br>Grant<br>**Total of funds**|_92_<br>_10,208_<br>_-_<br>10,300<br>_4,610,142_|_-_<br>_5,883_<br>_79,209_<br>85,092<br>_2,399,796_|_-_<br>_(6,448)_<br>_(23,580)_<br>(30,028)<br>_(2,323,819)_|_-_<br>_-_<br>_-_<br>-<br>_(44,209)_|_-_<br>_-_<br>_-_<br>_-_<br>_79,980_|_92_<br>_9,643_<br>_55,629_|
|---|---|---|---|---|---|---|
|||||||_65,364_|
|||||||_4,721,890_|



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## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **19. Summary of funds** 

## **Summary of funds - current year** 

|**Balance at 1**|**Balance at 1**||||||||
|---|---|---|---|---|---|---|---|---|
||**January**|||||**Transfers**|**Gains/**|**Decemb**|
||**2020**|**Income**|**Expenditure**||**Taxation**|**in/out**|**(Losses)**|**20**|
||**£**|**£**||**£**|**£**|**£**|**£**||
|Designated|||||||||
|funds|**217,193**|**2,459**||**(2,209)**|**-**|**(180,341)**|**(35,437)**|**1,66**|
|General|||||||||
|funds|**4,439,333**|**1,303,002**|**(1,515,173)**||**50,791**|**180,341**|**(10,943)**|**4,447,35**|
|Restricted|||||||||
|funds|**65,364**|**15,511**||**(49,472)**|**-**|**-**|**-**|**31,40**|
||**4,721,890**|**1,320,972**|**(1,566,854)**||**50,791**|**-**|**(46,380)**|**4,480,41**|
|**Summary of funds - prior year**|||||||||
||||||||_Balance at_||
||_Balance at_||||||_31_||
||_1 January_|||||_Gains/_|_December_||
||_2019_|_Income_||_Expenditure_|_Taxation_|_(Losses)_|_2019_||
||_£_||_£_|_£_|_£_|_£_|_£_||
|Designated|||||||||
|funds|_200,473_|_9,341_||_(7,549)_|_-_|_14,928_|_217,193_||
|General funds|_4,399,369_|_2,305,363_||_(2,286,242)_|_(44,209)_|_65,052_|_4,439,333_||
|Restricted funds|_10,300_|_85,092_||_(30,028)_|_-_|_-_|_65,364_||
||_4,610,142_|_2,399,796_||_(2,323,819)_|_(44,209)_|_79,980_|_4,721,890_||



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## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **20. Analysis of net assets between funds** 

## **Analysis of net assets between funds - current period** 

|Tangible fixed assets<br>Fixed asset investments<br>Investment property<br>Current assets<br>Creditors due within one year<br>Creditors due in more than one year<br>Provisions for liabilities and charges<br>**Total**<br>**Analysis of net assets between funds - prior period**<br>Tangible fixed assets<br>Fixed asset investments<br>Investment property<br>Current assets<br>Creditors due within one year<br>Creditors due in more than one year<br>Provisions for liabilities and charges<br>**Total**|**Restricted**<br>**funds**<br>**2020**<br>**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**£**<br>-<br>701,890<br>-<br>677,245<br>-<br>2,885,000<br>113,972<br>670,398<br>(82,569)<br>(246,715)<br>-<br>(227,780)<br>-<br>(11,022)<br>31,403<br>4,449,016<br>_Restricted_<br>_funds_<br>_2019_<br>_Unrestricted_<br>_funds_<br>_2019_<br>_£_<br>_£_<br>-<br>717,967<br>-<br>1,076,763<br>-<br>2,885,000<br>251,749<br>588,268<br>(186,385)<br>(356,314)<br>-<br>(242,265)<br>-<br>(12,893)<br>65,364<br>4,656,526|**Total**<br>**funds**<br>**2020**<br>**£**<br>**701,890**<br>**677,245**<br>**2,885,000**<br>**784,370**<br>**(329,284)**<br>**(227,780)**<br>**(11,022)**<br>**4,480,419**<br>_Total_<br>_funds_<br>_2019_<br>_£_<br>_717,967_<br>_1,076,763_<br>_2,885,000_<br>_840,017_<br>_(542,699)_<br>_(242,265)_<br>_(12,893)_<br>_4,721,890_|
|---|---|---|



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## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

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

|Net income/expenditure for the period (as per Statement<br>Activities)<br>**Adjustments for:**<br>Depreciation charges<br>Gains/(losses) on investments<br>Decrease in stocks<br>Decrease/(increase) in debtors<br>Increase/(decrease) in creditors<br>Movement in tax<br>**Net cash provided by/(used in) operating activities**<br>**22.**<br>**Analysis of cash and cash equivalents**<br>Cash in hand<br>**Total cash and cash equivalents**<br>**23.**<br>**Analysis of changes in net debt**<br>Cash at bank and in hand<br>Debt due within 1 year<br>Debt due after 1 year|of Financial<br>**At 1**<br>**January**<br>**2020**<br>**£**<br>**635,060**<br>**(26,841)**<br>**(165,451)**<br>**442,768**|**Group**<br>**2020**<br>**£**<br>**(241,471)**<br>**16,077**<br>**31,528**<br>**4,952**<br>**145,780**<br>**(181,505)**<br>**-**<br>**(224,639)**<br>**Group**<br>**2020**<br>**£**<br>**727,617**<br>**727,617**<br>**Cash flows**<br>**£**<br>**92,557**<br>**(1,464)**<br>**21,425**<br>**112,518**|_Group_<br>_2019_<br>_£_<br>_111,749_<br>_18,164_<br>_(79,980)_<br>_782_<br>_(63,123)_<br>_185,284_<br>_(2,185)_<br>_170,691_<br>_Group_<br>_2019_<br>_£_<br>_635,060_<br>_635,060_<br>**At 31**<br>**December**<br>**2020**<br>**£**<br>**727,617**<br>**(28,305)**<br>**(144,026)**<br>**555,286**|
|---|---|---|---|



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**GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **24. Pension commitments** 

German Young Men's Christian Association In London 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 German Young Men's Christian Association In London and at the year end these were invested in the Mercer Dynamic De-risking Solution, 40% matching portfolio and 60% in the growth portfolio and Schroder (property units only). 

The most recent completed three year valuation was as at 1 May 2017. 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 held before and after retirement of 3.75% and 2.25% respectively, the increase in pensions in payment of 3.35% (for RPI capped at 5% p.a.), and the average life expectancy from normal retirement age (of 65) for a current male pensioner of 22.2 years, female 24.1 years, and 24.0 years for a male pensioner, female 26.0 years, retiring in 20 years time.  The result of the valuation showed that the actuarial value of the assets was £141.2m. This represented 81% of the benefits that had accrued to 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. 

The valuation prepared as at 1 May 2017 showed that the YMCA Pension Plan had a deficit of £33.6 million. German Young Men's Christian Association In London has been advised that it will need to make monthly contributions of £2,393 from 1 May 2021.  This amount is based on the current actuarial assumptions (as outlined above) and may vary in the future as a result of actual performance of the Pension Plan.  The current recovery period is 6 years commencing 1st May 2021. 

In addition, German Young Men's Christian Association In London 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 to quantify the potential amount that German Young Men's Christian Association In London may be called upon to pay in the future. 

## **25. Operating lease commitments** 

At 31 December 2020 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows: 

|Not later than 1 year<br>Later than 1 year and not later than 5 years<br>Later than 5 years|**Group**<br>**2020**<br>**£**<br>**8,374**<br>**18,873**<br>**1,140**<br>**28,387**|_Group_<br>_2019_<br>_£_<br>_14,707_<br>_24,968_<br>_3,420_<br>_43,095_|**Charity**<br>**2020**<br>**£**<br>**-**<br>**-**<br>**-**<br>**-**|_Charity_<br>_2019_<br>_£_<br>_1,227_<br>_-_<br>_-_|
|---|---|---|---|---|
||||||
|||||_1,227_|



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## **GERMAN YOUNG MEN'S CHRISTIAN ASSOCIATION IN LONDON** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **26. Related party transactions** 

During the year transactions with the following related parties occured: 

Lancaster Hall Hotel Limited             - Subsidiary Cazenove Capital Management       - P Mallinckrodt is a director of the parent company Schroders PLC. (resigned 30 April 2020) 

The dividend was received from Lancaster Hall Hotel Limited during the year totalling £Nil  (2019: £104,213). 

During the year a grant of £220,000 (2019: £Nil) was paid to Lancaster Hall Hotel Limited. 

At the year end, £53,001 (2019: £Nil) was due from Lancaster Hall Hotel Limited. 

During the year a grant of £300,000 (2019: £Nil) was recieved from St Paul's German Evangelical Reformed Church Trust. 

Cazenove Capital Management manage the investment portfolio held by the Charity. Cazenove Capital Management charged management fees of £2,494 (2019: £3,374) for the year. 

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