Charity number: 250118
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
CONSOLIDATED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Charity, its Trustees and advisers | 1 |
| Trustees' report | 2 - 12 |
| Trustees' responsibilities statement | 13 |
| Independent auditors' report on the financial statements | 14 - 17 |
| Consolidated statement of financial activities | 18 |
| Consolidated balance sheet | 19 - 20 |
| Charity balance sheet | 21 |
| Consolidated statement of cash flows | 22 |
| Notes to the financial statements | 23 - 48 |
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021
| Trustees | D Losse, Chairman |
|---|---|
| C Halsey | |
| P Mallinckrodt | |
| N Daur | |
| M Tinsley | |
| A Fox | |
| P Stokes | |
| C Daur | |
| Charity registered number 250118 Principal office 35 Craven Terrace London W2 3EL Independent auditors Haslers Chartered Accountants Old Station Road Loughton Essex IG10 4PL Bankers National Westminster Bank plc 26 Edgeware Road London W2 2ZW Solicitors Weightmans 105 Fenchurch Street London EC3M 5JG |
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 January 2021 to 31 December 2021.
Chairman’s Statement
In last year’s report we anticipated continued disruption to our activities in 2021 due to the many uncertainties brought about by the pandemic and the unpredictable economic environment it created. In the event the severity of the consequences of the pandemic and their persistence continued to impact the Association and the operations of the Lancaster Hall Hotel in the year under review and from the outset put an uncomfortable question mark over the level of future funding for our charitable activity, which the surplus funds of the hotel had historically provided.
Whilst it went against the grain to curtail much of our charitable activity the prolonged lockdowns made this inevitable. By eliminating or reducing cost wherever possible, and with gains resulting from a favourable investment climate, we were, however, able to record a substantially improved financial performance in 2021. Overall, our total funds increased by almost £300,000 over the previous year to reach £4,706,616.
Looking back, the government furlough scheme had from the early days of the pandemic provided a vital lifeline in retaining our core staff both in the Association and the Hotel. However, the generous grant from the St Pauls German Reformed Church Trust of £300,000, in September 2020, and the boost it had given to our liquidity, gave us comfort in offering the Lancaster Hall Hotel all the financial support it required to maintain its operations for the foreseeable future, whilst still preserving our reserves in the German YMCA at a level that gave some cushion against further future shocks. At the 31st of December 2021 our investment reserve had a market value of £743,585.
We continue to regard the Hotel as integral to the success of the Association in the long-term and its existence essential to the delivery of our charitable objectives. We are resolved to maintain our support through the current challenges and the signs are there that it will before long be able to resume its pivotal role as the principal source of funds for the Association in the post-pandemic environment.
In the early part of 2021, we decided to utilise the downtime afforded by the lockdown imposed by the government (which remained in force from January to mid-May) to reappraise the scope of our charitable work and align it better to the realities of a changing environment. We recognise that in addition to our long-term membership from among the German community in London, which is inevitably in slow decline through advancing years and, latterly, also as a result of Brexit, there is a local community around us in Bayswater that has many needs which we are also able to serve. In extending our work in this way we remain extremely mindful of our German roots and are determined to remain true to them and to the spirit of our founders, which enabled the charity to survive through the severe challenges of two World Wars
In view of the uncertainty about the ability of the Hotel to generate surplus funds for the Association in the shortterm, we resolved to continue largely suspending our grants to other charities. These had historically been supported when they were able to deliver services within our objectives which we were unable to offer ourselves. It is our intention to resume this “Aid to Others” programme just as soon as we can afford to do so.
The many unprecedented difficulties caused by the pandemic have imposed huge stress on our dedicated and talented senior management team. These ranged from the need to maintain staff morale and motivation through lockdown to the urgent need to eliminate costs and improve efficiency during the prolonged period of constrained corporate revenue. We are indebted to them for their outstanding and unstinting service under considerable duress.
It had been planned that our long-serving Chief Executive, Uwe Maynard, would gradually relinquish some of his responsibilities in the gradual run-up to his retirement and Rebecca Tinsley with over twenty five years’ experience of working in the Lancaster Hall Hotel (latterly as Uwe Maynard’s deputy) was duly appointed Managing Director of the Hotel. Under her leadership a thorough review was conducted of the German YMCA programme and its staffing.
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
It was agreed that our strategic focus should be on developing initiatives that reach out and give educational opportunities to the disadvantaged in society and attract the active participation of young people. The programme has been refreshed and will be expanded as circumstances allow.
An external review was commissioned of our accounting systems to improve efficiency and streamline the development of our management information reporting, and a modest budget was established to allow management to maintain a programme of refurbishment, upgrading facilities where possible, to ensure that the Hotel was able to take full advantage of trading opportunities as and when conditions returned to normal. We have partnered with a yield management company who have implemented variable pricing, enabling us to improve average room rates achieved. The redecorated Hostel has been rebranded as the Kensington Gardens Hostel and we intend to continue updating it as an important resource in our drive to engage with more young people and provide them with life-enhancing opportunities.
Our four investment properties in Craven Road represent an important element of our assets with a valuation at the 31st of December 2021 of £4,950,000. The Balance Sheet value of the investment has, however, been adjusted downwards to £3,485,000 to reflect their partial use as staff accommodation. With rent reviews due next year, we are embarked on a plan to create more apartments for short-term letting wherever possible. This will not only enhance the capital value but also increase the annual rental income, which currently stands at £181,286.
We aim in future to finance the normal direct running costs of the Association from this income source and rely on surpluses from the Hotel, as they re-emerge, to build our reserves, finance special initiatives and major capital expenditure, as well as enable our donations to other charities.
Looking Ahead
Whilst in many respects we seemed to be marking time in 2021, much has been achieved. We have clarified the role we would like to see our Association play in future, and we have begun to put in place the new management team to lead it. And we have taken a great variety of measures to put both the Association and the Hotel in a position to flourish as conditions slowly revert to normal. The time has not been right to implement the planned restructuring of the charity but it remains an important strategic priority. The pandemic shock has underlined the need for us to build a larger contingency reserve than had hitherto been deemed necessary, but we are emerging from the crisis with a valuable, if diminished, reserve still in place. We can face the future with some confidence.
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 last year, all activities and grants not already made were cancelled following the lockdown in March 2020. A very limited programme of our own activities was restarted towards the end of 2020 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 2020 but restarted in a limited form at the end of that 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.
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Objectives and activities (continued)
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 was undertaken. For immediate planning purposes it was deemed prudent to assume that income would be restricted purely to that derived from our rental property..
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 had 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 2020 and only a limited number gradually resumed towards the end of 2020 and all financial aid to other organisations providing services to the community which the Association cannot itself deliver are still suspended.
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 the funds from the National Agency for the last project cycle have been 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, although due to the pandemic numbers for the 3rd year are more likely to be around 150. We approached the National Agency for extension of year 2 and 3, which was granted until 31st January 2023. Projects were highly impacted by the Covid crisis, and in addition with new Brexit legislation requiring visa applications for volunteers to stay in the UK.
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. Concerts were held in our local church, St James’s, and these were self-funding.
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Objectives and activities (continued)
f. The Assoication 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 was suspended since 2020 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 2020, and a further trading loss of £229,223 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 in 2020 and provided further support in the form of loans in 2021 to ensure is cash liquidity.
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Achievements and performance
a. Key performance indiactors
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 due to the UK lockdown 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 before being put into lockdown again in November. A further UK lockdown was imposed from the beginning of January 2021 until the middle of May, during which time the hotel was only permitted to take key workers, of which there were very few. 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 the portfolio increased by £66,340 in value. The value of the portfolio was £743,585 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 £181,286 in the year under review (2020: £143,543).
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 £677,245 at the 1st January 2021. The valuation of the portfolio at the 31st December 2021 was £743,585.
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 was 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. In 2021 the only grant made was the Affiliation Fee.
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 £5,126,588 (2020: £4,480,419), including £1,412,460 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.
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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:
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to advance the Christian Faith by encouraging people on the path to a Christian way of life and promoting Christian values
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to advance religious faith by general support for churches, in particular the German churches in the UK and our local churches in Bayswater.
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to provide facilities for social welfare, for cultural activity, recreation and leisure, for young and old, and especially those in deprived circumstances.
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the prevention and relief of poverty
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to provide educational opportunities, especially for young people
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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 M. Tinsley who replaced S Haase from 10th December 2020
The National Council of YMCAs (Incorporated)
Mr U Maynard is the CEO and also the Managing Director of Lancaster Hall Hotel Limited. From 11th November 2021 R Tinsley became the Managing Director of Lancaster Hall Hotel Limited.
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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
U Maynard – Managing Director and Company Secretary until 11th November 2021 R Tinsley – Managing Director and Company Secretary from 11th November 2021 M Quigley (from 15th October 2021)
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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.
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 Association and trading company are GDPR compliant.
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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. Due to the ongoing pandemic, it was still not possible to hold an EGM in 2021.
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:
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so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
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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.
Auditors
The auditors, Haslers, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees on 9 January 2023 and signed on their behalf by:
D Losse (Trustee)
M Tinsley (Trustee)
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees on 9 January 2023 and signed on its behalf by:
D Losse (Trustee)
M Tinsley (Trustee)
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
Opinion
We have audited the financial statements of German Young Men's Christian Assoication in London (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 December 2021 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 2021 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.
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON (CONTINUED)
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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 15
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION 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:
Based on our understanding of the legal and regulatory frameworks that are applicable to the entity we have considered those that have a direct and indirect material impact on the financial statements and operations of the company. These include but are not limited to the Charities Act 2011, GDPR, and Employment and Health & Safety legislation.
We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making inquiries to the management. We corroborated our inquiries through our review of documentation generated and assessing the extent of compliance with the relevant laws and regulations.
We discussed among the audit engagement team regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for material misstatements due to fraud are in the following areas, and our specific procedures performed to address these are described below:
The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud.
Procedures performed to address these were as follows:
• Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud, including known or suspected instances of non-compliance with laws and regulations, and fraud,
• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,
• Challenging assumptions and judgements made by management in its significant accounting estimates,
• Identifying and testing journal entries, in particular any unusual journal entries posted around the year-end and journal entries posted by infrequent system users,
• Ensuring that restricted and unrestricted reserves have been allocated correctly,
Page 16
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON (CONTINUED)
• Reviewing board minutes for any discussion of events or evidence which will have an impact on the financial statements.
• Reviewing forecasts and budgets to determine if the entity can be deemed a going concern.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.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
9 January 2023
Haslers are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 17
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021
| Note Income from: Donations and legacies 3 Other trading activities 4 Investments 5 Other income 6 Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income/(expenditure) before net gains/(losses) on investments Net gains/(losses) on investments Net income/(expenditure) before taxation Taxation Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Restricted funds 2021 £ 235,264 - - - 235,264 - 29,447 29,447 205,817 - 205,817 - 205,817 31,403 205,817 237,220 |
Unrestricted funds 2021 £ 63,037 667,492 207,893 212,381 1,150,803 741,663 587,090 1,328,753 (177,950) 41,835 (136,115) 5 (136,110) 4,449,016 (136,110) 4,312,906 |
Total funds 2021 £ 298,301 667,492 207,893 212,381 1,386,067 741,663 616,537 1,358,200 27,867 41,835 69,702 5 69,707 4,480,419 69,707 4,550,126 |
Total funds 2020 £ 424,039 433,058 176,857 287,018 1,320,972 864,705 702,149 1,566,854 (245,882) (46,380) (292,262) 50,791 (241,471) 4,721,890 (241,471) 4,480,419 |
|---|---|---|---|---|
The Consolidated statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 23 to 48 form part of these financial statements.
Page 18
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021
| Note Fixed assets Tangible assets 10 Investments 12 Investment property 11 Current assets Stocks 13 Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Provisions for liabilities Net assets excluding pension asset Total net assets |
13,986 53,809 668,875 736,670 (307,843) |
2021 £ 664,048 743,585 3,485,000 4,892,633 428,827 5,321,460 (183,850) (11,022) 5,126,588 5,126,588 |
9,437 47,316 727,617 784,370 (329,284) |
2020 £ 701,890 677,245 2,885,000 4,264,135 455,086 4,719,221 (227,780) (11,022) 4,480,419 4,480,419 |
|---|---|---|---|---|
Page 19
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2021
| Note Charity funds Restricted funds 18 Unrestricted funds Unrestricted funds excluding pension asset 18 Pension reserve 18 Total unrestricted funds 18 Total funds |
5,100,522 (211,154) |
2021 £ 237,220 4,889,368 5,126,588 |
4,673,576 (224,560) |
2020 £ 31,403 4,449,016 |
|---|---|---|---|---|
| 4,480,419 |
The financial statements were approved and authorised for issue by the Trustees on 09 January 2023 and signed on their behalf by:
D Losse M Tinsley Trustee Trustee
The notes on pages 23 to 48 form part of these financial statements.
Page 20
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021
| Note Fixed assets Tangible assets 10 Investments 12 Investment property 11 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Net assets excluding pension asset Total net assets Charity funds Restricted funds 18 Unrestricted funds 18 Total funds |
222,731 613,701 836,432 (46,353) |
2021 £ 447,258 744,585 3,485,000 4,676,843 790,079 5,466,922 (183,850) 5,283,072 5,283,072 237,220 5,045,852 5,283,072 |
58,345 677,995 736,340 (133,549) |
2020 £ 470,798 678,245 2,885,000 4,034,043 602,791 4,636,834 (227,780) 4,409,054 4,409,054 31,403 4,377,651 4,409,054 |
|---|---|---|---|---|
The financial statements were approved and authorised for issue by the Trustees on 09 January 2023 and signed on their behalf by:
D Losse Trustee
M Tinsley Trustee
The notes on pages 23 to 48 form part of these financial statements.
Page 21
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021
| Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Cash pool movements Net cash (used in)/provided by investing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 23 to 48 form part of these financial statements |
2021 £ (16,907) (41,835) (41,835) - (58,742) 727,617 668,875 |
2020 £ (275,431) 367,988 367,988 - 92,557 635,060 727,617 |
|---|---|---|
Page 22
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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 2019), 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 in October 2019 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 Assoication 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 Charity 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. 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 23
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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 investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. 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.
All expenditure is inclusive of irrecoverable VAT.
2.5 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 24
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2. Accounting policies (continued)
2.6 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 |
2.7 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.
2.8 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
2.9 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.
2.10 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 25
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2. Accounting policies (continued)
2.11 Liabilities
Liabilities and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the consolidated statement of financial activities as a finance cost.
2.12 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.
2.13 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.
2.14 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 24 German Young Men's Christian Association In London has a contractual obligation to make pension deficit payments of £28,305 pa over the period to April 2027, accordingly this is shown as a liability in notes 14 and 15 to these accounts. In addition, German Young Men's Christian Association In London is required to contribute £11,051 pa to the operating expenses of the Pension Plan and these costs are charged to the Statement of Financial Activities as made.
Page 26
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
2. Accounting policies (continued)
2.15 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 Grants Government grants Total 2020 |
Restricted funds 2021 Unrestricted funds 2021 £ £ - 7,971 235,264 - - 55,066 235,264 63,037 15,511 408,528 |
Total funds 2021 £ 7,971 235,264 55,066 298,301 424,039 |
Total funds 2020 £ 345,526 15,511 63,002 |
|---|---|---|---|
| 424,039 | |||
Page 27
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
4. Income from other trading activities
Income from fundraising events
| Unrestricted funds 2021 £ Income from Lancaster Hall Hotel Limited 667,312 Income from Bring and Buy 180 Income from Voices in Harmony - 667,492 Total 2020 433,058 |
Total funds 2021 £ 667,312 180 - 667,492 433,058 |
Total funds 2020 £ 432,638 350 70 |
|---|---|---|
| 433,058 | ||
5. Investment income
| Unrestricted funds 2021 £ Rental Income 181,286 Dividends and tax credits 26,569 Interest on deposits 38 207,893 Total 2020 176,857 |
Total funds 2021 £ 181,286 26,569 38 207,893 176,857 |
Total funds 2020 £ 143,543 32,955 359 |
|---|---|---|
| 176,857 | ||
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
6. Other incoming resources
| Government grants Membership fees received Income in respect of Au-Pair services Total 2020 |
Unrestricted funds 2021 £ 205,360 7,021 - 212,381 287,018 |
Total funds 2021 £ 205,360 7,021 - 212,381 287,018 |
Total funds 2020 £ 280,696 3,575 2,747 |
|---|---|---|---|
| 287,018 | |||
Total 2020
7. Analysis of expenditure
| German YMCA Work and Youth Work British Council Grant National Agency Grant Adult Education Schubertiade Concert Hilda Sloan Legacy Support costs Total 2020 |
Activities undertaken directly 2021 £ 121,986 - 29,447 - 14 - - 151,447 237,541 |
Support costs 2021 £ - - - - - - 465,090 465,090 464,608 |
Total funds 2021 £ 121,986 - 29,447 - 14 - 465,090 616,537 702,149 |
Total funds 2020 £ 184,677 18,350 31,030 1,513 1,970 91 464,518 |
|---|---|---|---|---|
| 702,149 | ||||
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
7. Analysis of expenditure (continued)
Analysis of direct costs
| Staff costs Tavel and coach hire Honorariums Youth office costs Postage and Stationery Conference fees Telephone and communications Equipment leasing Sundry expenses Donations Schubertiade concert costs Cost of providing lessons Cost of placements Training Total 2020 |
German YMCA Work and Youth Work 2021 £ 115,701 65 - 971 1,833 - 93 - 2,565 757 - - - - 121,985 184,677 |
British Council Grant 2021 £ - - - - - - - - - - - - - - - 18,350 |
National Agency Grant 2021 £ - 3,137 - 927 - - - - - - - - 25,383 - 29,447 31,030 |
Adult Education 2021 £ - - - - - - - - - - - - - - |
|---|---|---|---|---|
| - | ||||
| 1,512 |
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
7. Analysis of expenditure (continued)
Analysis of direct costs (continued)
| Schubertiade Concert 2021 £ Staff costs - Travel and coach hire - Honorariums - Youth office costs - Postage and Stationery - Conference fees - Telephone and communications - Equipment leasing - Sundry expenses - Donations - Schubertiade concert costs 14 Cost of providing lessons - Cost of placements - Training - 14 Total 2020 1,970 |
Total funds 2021 £ 115,701 3,202 - 1,898 1,833 - 93 - 2,565 757 14 - 25,383 - 151,446 237,541 |
Total funds 2020 £ 156,500 10,558 80 10,696 539 28 173 823 3,132 13,511 1,970 1,512 38,254 (235) 237,541 |
|---|---|---|
Page 31
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
7. Analysis of expenditure (continued)
Analysis of support costs
| German YMCA Work and Youth Work 2021 British Council Grant 2021 £ £ Postage and Stationery - 2,221 Depreciation on fixtures and fittings - 14,303 Telephone and communications - 16,107 Sundry expenses - 962 Auditors Fees - 22,050 Legal and Professional - 69,364 Pension Expense - (11,051) Insurance - 57,137 Property Expense - 23,377 Bank charges - 15,833 Salaries - 73,851 Accountancy Fees - 3,335 Water Rates - 7,575 Advertising - 170 Light and heat - 63,261 Computer costs - 14,688 Subscriptions - 22,293 Property maintenance - 69,614 - 465,090 8. Auditors' remuneration Fees payable to the Charity's auditor for the audit of the Charity's annual accounts Fees payable to the Charity's auditor in respect of: Taxation compliance services |
Total funds 2021 £ 2,221 14,303 16,107 962 22,050 69,364 (11,051) 57,137 23,377 15,833 73,851 3,335 7,575 170 63,261 14,688 22,293 69,614 465,090 2021 £ 22,050 1,500 |
Total funds 2020 £ 2,571 16,077 16,880 523 25,500 71,732 6,879 68,454 20,696 8,903 44,439 3,504 8,468 4,131 54,740 28,957 18,438 63,716 |
|---|---|---|
| 464,608 | ||
| 2020 £ 24,900 1,500 |
Page 32
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
9. Staff costs
| Wages and salaries Contribution to defined contribution pension schemes |
Group 2021 £ 688,631 20,205 708,836 |
Group 2020 £ 883,794 26,491 910,285 |
Charity 2021 £ 105,662 10,040 115,702 |
Charity 2020 £ 142,055 14,445 |
|---|---|---|---|---|
| 156,500 |
The average number of persons employed by the Charity during the year was as follows:
| Charity staff Hotel staff |
Group 2021 No. 5 30 35 |
Group 2020 No. 6 32 38 |
Charity 2021 No. 5 - 5 |
Charity 2020 No. 6 - |
|---|---|---|---|---|
| 6 |
No employee received remuneration amounting to more than £60,000 in either year.
Total remuneration paid to key management personnel was £121,912 (2020: £144,443).
Page 33
GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
10. Tangible fixed assets
Group
| Cost or valuation At 1 January 2021 Transfers between classes At 31 December 2021 Depreciation At 1 January 2021 Charge for the year At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 |
Freehold property £ 683,213 (23,540) 659,673 48,353 4,247 52,600 607,073 634,860 |
Fixtures and fittings £ 392,225 - 392,225 325,195 10,055 335,250 56,975 67,030 |
Computer equipment £ 34,612 - 34,612 34,612 - 34,612 - - |
Total £ 1,110,050 (23,540) 1,086,510 408,160 14,302 422,462 664,048 701,890 |
|---|---|---|---|---|
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
10. Tangible fixed assets (continued)
Charity
| Cost or valuation At 1 January 2021 Transfers between classes At 31 December 2021 Depreciation At 1 January 2021 At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 |
Freehold property £ 470,798 (23,540) 447,258 - - 447,258 470,798 |
Fixtures and fittings £ 24,146 - 24,146 24,146 24,146 - - |
Total £ 494,944 (23,540) 471,404 24,146 24,146 447,258 470,798 |
|---|---|---|---|
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
11. Investment property Group
| Valuation At 1 January 2021 Surplus on revaluation Transfers between classes At 31 December 2021 Charity Valuation At 1 January 2021 Surplus on revaluation Transfers between classes At 31 December 2021 |
Freehold investment property £ 2,885,000 576,460 23,540 |
|---|---|
| 3,485,000 | |
| Freehold investment property £ 2,885,000 576,460 23,540 |
|
| 3,485,000 |
The investment property shown above includes the aspects of certain properties that are let out to 3rd parties and therefore not shown as fixed assets. These properties of 32, 39, 41, 43 and 45 Craven Road have been valued by Sloan Property Services, and their fair value amounts to £4,950,000. 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.
During the year an element of one of the properties has a change of use and changed from staff accomodation to being let and the trustees feel this will continue. As a result there has been a transfer of class between tangible fixed assets and investment property and a subsequent fair value uplift as a result.
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
12. Fixed asset investments
| Group Cost or valuation At 1 January 2021 Revaluations Transfers between classes At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 Charity Cost or valuation At 1 January 2021 Revaluations Transfers between classes At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 |
Investments in subsidiary companies £ 1,000 - - 1,000 1,000 1,000 |
Listed investments £ 677,245 24,505 41,835 743,585 743,585 677,245 |
Listed investments £ 677,245 24,505 41,835 |
|---|---|---|---|
| 743,585 | |||
| 743,585 | |||
| 677,245 | |||
| Total £ 678,245 24,505 41,835 |
|||
| 744,585 | |||
| 744,585 | |||
| 678,245 |
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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 Included in |
Holding Included in |
Holding 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 | 872,691 | (1,100,540) | (227,849) | (155,484) | |||
| 13. | Stocks | ||||||
| Group | Group | ||||||
| 2021 | 2020 | ||||||
| £ | £ | ||||||
| Finished goods and goods for resale | 13,986 | 9,437 | |||||
| 14. | Debtors | ||||||
| Group | Group | Charity | Charity | ||||
| 2021 | 2020 | 2021 | 2020 | ||||
| £ | £ | £ | £ | ||||
| Due within one year | |||||||
| Trade debtors | 9,530 | 3,550 | - | - | |||
| Other debtors | 10,406 | 11,365 | 219,116 | 53,084 | |||
| Prepayments and accrued income | 33,873 | 32,401 | 3,615 | 5,261 | |||
| 53,809 | 47,316 | 222,731 | 58,345 | ||||
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
15. Creditors: Amounts falling due within one year
| Pension contractual liability Trade creditors Other taxation and social security Other creditors Accruals and deferred income |
Group 2021 £ 27,304 172,707 41,324 4,478 62,030 307,843 |
Group 2020 £ 28,305 137,260 10,686 82,927 70,106 329,284 |
Charity 2021 £ 27,304 4,726 353 4,133 9,837 46,353 |
Charity 2020 £ 28,305 4,616 1,886 82,569 16,173 |
|---|---|---|---|---|
| 133,549 |
16. Creditors: Amounts falling due after more than one year
| Pension contractual liability Other creditors |
Group 2021 £ 105,672 78,178 183,850 |
Group 2020 £ 144,026 83,754 227,780 |
Charity 2021 £ 105,672 78,178 183,850 |
Charity 2020 £ 144,026 83,754 |
|---|---|---|---|---|
| 227,780 |
17. Deferred taxation
Group and Charity
| At the beginning of the year Other movements The deferred tax liability is made up as follows: Accelerated capital allowances |
Group 2021 £ (11,022) (11,022) |
2021 £ 11,022 - |
|---|---|---|
| 11,022 | ||
| Group 2020 £ (11,022) |
||
| (11,022) |
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
18. Statement of funds
Statement of funds - current year
| Unrestricted funds Designated funds Schubertiade Concert General funds General Funds Lancaster Hall Hotel Limied Revaluation reserve Pension reserve Total Unrestricted funds |
Balance at 1 January 2021 £ 1,665 1,894,546 72,365 2,705,000 (224,560) 4,447,351 4,449,016 |
Income £ - 264,717 872,681 - 13,406 1,150,804 1,150,804 |
Expenditure £ (14) (228,198) (1,100,540) - - (1,328,738) (1,328,752) |
Taxation £ - - 5 - - 5 5 |
Gains/ (Losses) £ - 41,835 - 576,460 - 618,295 618,295 |
Balance at 31 December 2021 £ 1,651 1,972,900 (155,489) 3,281,460 (211,154) 4,887,717 4,889,368 |
|---|---|---|---|---|---|---|
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
18. Statement of funds (continued)
Restricted funds
| Restricted funds | ||||||
|---|---|---|---|---|---|---|
| Music Societies Account British Council Grant National Agency Grant Total of funds |
92 6,804 24,507 31,403 4,480,419 |
- 18,325 216,939 235,264 1,386,068 |
- - (29,447) (29,447) (1,358,199) |
- - - - 5 |
- - - - 618,295 |
92 25,129 211,999 |
| 237,220 | ||||||
| 5,126,588 |
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.
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.
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.
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
| 18. Statement of funds (continued) Statement of funds - prior year Unrestricted funds Designated funds Hilda Sloan Legacy Schubertiade Concert General funds General Funds Lancaster Hall Hotel Limied Revaluation reserve Pension reserve Total Unrestricted funds |
Balance at 1 January 2020 £ 215,939 1,254 217,193 1,658,869 293,145 2,705,000 (217,681) 4,439,333 4,656,526 |
Income £ 2,048 411 2,459 369,537 933,465 - - 1,303,002 1,305,461 |
Expenditure £ (2,209) - (2,209) (303,258) (1,205,036) - (6,879) (1,515,173) (1,517,382) |
Taxation £ - - - - 50,791 - - 50,791 50,791 |
Transfers in/out £ (180,341) - (180,341) 180,341 - - - 180,341 - |
Gains/ (Losses) £ (35,437) - (35,437) (10,943) - - - (10,943) (46,380) |
Balance at 31 December 2020 £ - 1,665 1,665 1,894,546 72,365 2,705,000 (224,560) 4,447,351 4,449,016 |
|---|---|---|---|---|---|---|---|
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
18. Statement of funds (continued)
Restricted funds
| Music Societies Account British Council Grant National Agency Grant Total of funds |
92 9,643 55,629 65,364 4,721,890 |
- 15,511 - 15,511 1,320,972 |
- (18,350) (31,122) (49,472) (1,566,854) |
- - - - 50,791 |
- - - - - |
- - - - (46,380) |
92 6,804 24,507 |
|---|---|---|---|---|---|---|---|
| 31,403 | |||||||
| 4,480,419 |
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
19. Summary of funds
Summary of funds - current year
| Designated funds General funds Restricted funds Summary of funds - prior year Designated funds General funds Restricted funds |
Balance at 1 January 2020 £ 217,193 4,439,333 65,364 4,721,890 |
Balance at 1 January 2021 £ 1,665 4,447,351 31,403 4,480,419 Income £ 2,459 1,303,002 15,511 1,320,972 |
Income £ - 1,150,804 235,264 1,386,068 Expenditure £ (2,209) (1,515,173) (49,472) (1,566,854) |
Expenditure £ (14) (1,328,738) (29,447) (1,358,199) Taxation £ - 50,791 - 50,791 |
Taxation £ - 5 - 5 Transfers in/out £ (180,341) 180,341 - - |
Gains/ (Losses) £ - 618,295 - 618,295 Gains/ (Losses) £ (35,437) (10,943) - (46,380) |
Balance at 31 December 2021 £ 1,651 4,887,717 237,220 |
|---|---|---|---|---|---|---|---|
| 5,126,588 | |||||||
| Balance at 31 December 2020 £ 1,665 4,447,351 31,403 |
|||||||
| 4,480,419 |
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
20. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges Total Analysis of net assets between funds - prior year Tangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges Total |
Restricted funds 2021 Unrestricted funds 2021 £ £ - 664,048 - 743,585 - 3,485,000 537,245 199,424 (300,025) (7,818) - (183,850) - (11,022) 237,220 4,889,367 Restricted funds 2020 Unrestricted funds 2020 £ £ - 701,890 - 677,245 - 2,885,000 113,972 670,398 (82,569) (246,715) - (227,780) - (11,022) 31,403 4,449,016 |
Total funds 2021 £ 664,048 743,585 3,485,000 736,669 (307,843) (183,850) (11,022) 5,126,587 Total funds 2020 £ 701,890 677,245 2,885,000 784,370 (329,284) (227,780) (11,022) 4,480,419 |
|---|---|---|
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
21. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement Activities) Adjustments for: Depreciation charges Gains/(losses) on investments Decrease/(increase) in stocks Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash provided by/(used in) operating activities 22. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 23. Analysis of changes in net debt Cash at bank and in hand Debt due within 1 year Debt due after 1 year |
of Financial At 1 January 2021 £ 727,617 (28,305) (144,026) 555,286 |
Group 2021 £ 69,707 14,302 (41,835) (4,552) (170,910) 143,032 9,744 Group 2021 £ 668,875 668,875 Cash flows £ (58,742) 1,001 38,354 (19,387) |
Group 2020 £ (241,471) 16,077 31,528 4,952 145,780 (181,505) (224,639) Group 2020 £ 727,617 727,617 At 31 December 2021 £ 668,875 (27,304) (105,672) 535,899 |
|---|---|---|---|
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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 £2,212 from 1 May 2022. 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 2021 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 Later than 1 year and not later than 5 years Later than 5 years |
Group 2021 £ 5,890 14,124 - 20,014 |
Group 2020 £ 8,374 18,873 1,140 |
|---|---|---|
| 28,387 |
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GERMAN YOUNG MEN'S CHRISTIAN ASSOICATION IN LONDON
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
26. Related party transactions
During the year transactions with the following related parties occured:
Lancaster Hall Hotel Limited - Subsidiary
The dividend was received from Lancaster Hall Hotel Limited during the year totalling £Nil (2020: £Nil).
During the year a grant of £Nil (2020: £220,000) was paid to Lancaster Hall Hotel Limited.
At the year end, £208,718 (2020: £53,001) was due from Lancaster Hall Hotel Limited.
During the year a grant of £Nil (2020: £300,000) 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 £Nil (2020: £2,494) for the year.
Page 48