## **THE SALMON YOUTH CENTRE IN BERMONDSEY** ## **Company Limited by Guarantee Registered Charity** ## **TRUSTEES’ ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED** ## **31 MARCH 2022** Company Registration Number 958986 Charity Registration Number 278979 **THE SALMON YOUTH CENTRE IN BERMONDSEY** REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 |**CONTENTS**|**Page**| |---|---| |1. Trustees’ Report|2 - 11| |2. Independent Auditors’ Report|12- 14| |3. Statement of Financial Activities|15| |4. Balance Sheet|16| |5. Cash Flow Statement|17| |6. Notes to the Financial Statements|18 – 27| _“Inspiring all young people to fulfil their potential and contribute to the community within a framework of Christian life and values”_ **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ |**Company registration number:**|958986|| |---|---|---| |**Charity registration number:**|278979|| |**Trustees:**|A.D.C. Greenwood|(Chair)| ||M. Askwith|(Retired 29 January 2022)| ||C. G Bauer|| ||Dr. H.F. Crowe|| ||R. S. Gleaves RICS|| ||K. Kazim|| ||P. Knight FCA
|(Honorary Treasurer)| ||S. Manwell|| ||M. Skelton|| |**Finance Committee:**|P. Knight FCA|(Chair)| ||A.D.C Greenwood|| ||R. S. Gleaves RICS|| ||_In attendance_:|| ||S. Adofo|(Director)| ||C. Bascom|(Finance Director)| |**Company secretary:**|S. Adofo|| |**Principal office and Registered office:**|43 Old Jamaica Road|| ||Bermondsey|| ||London SE16 4TE|| |**Auditors:**|Haysmacintyre LLP|| ||Chartered Accountants|| ||10 Queen Street Place,|| ||London EC4R 1AG|| |**Bankers:**|Unity Trust Bank|| ||Nine Brindleyplace|| ||Birmingham|| ||B1 2HB|| |**Governing deed:**|Articles of Association|| 1 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **1. TRUSTEES’ REPORT** The Trustees, who are also the Directors, present their report and the audited financial statements for the year ended 31 March 2022. The financial statements have been prepared in accordance with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’, applicable law and the Charity’s governing document. Reference and Administrative information is shown on page 1. ## **Public Benefit** The Trustees confirm that they have had regard to the Charity Commission’s guidance on Public Benefit in planning the charity’s aims, activities and future plans. ## _**1.1 OBJECTIVES AND ACTIVITIES**_ ## **Our Vision** At the Salmon Youth Centre in Bermondsey, we aim to inspire all young people to fulfil their potential and contribute to their community within a framework of Christian values. ## **Our Mission** At the Salmon Youth Centre, we: -  Are open to all and welcome all young people and their families; -  Provide open-access, targeted and specialised youth work opportunities, which are safe, enjoyable, challenging and educational; -  Strive to build long-term relationships that inspire young people to develop their ambition for learning and work, relevant skills and healthy lifestyles. ## **Our Activities** The Salmon Youth Centre has over 115 years’ experience of providing a place and purpose for children and young people in the London Borough of Southwark. Our state-of-the-art building, located in the heart of the community in Bermondsey, provides a wide range of activities, including sports, music, visual arts, dance, drama, outdoor climbing, adventure, fitness activities and bike maintenance. We welcome around 500 young people from all backgrounds and between the ages of 6 and 25 through our doors every week. We aim to inspire all young people and their families to develop ambition for learning and work, to reach their full potential and to contribute to their community within the framework of Christian life and values. Our activities are delivered based on our Theory of Change, through which we seek to: 1. **Prepare young people for education and work** with the overall aim of improving their educational attainment, providing access to training and supporting them into meaningful employment; 2. **Improve young people’s health and wellbeing** both mentally and physically and encourage a continuous development of healthy eating habits and lifestyle; 3. **Involve young people in community engagement** through boosting their volunteering activities and political and spiritual awareness, thus increasing their ability to relate to others in the wider society. ## **About the children and young people, we support** Most of the children and young people attending the Salmon Youth Centre are disadvantaged and live on the Council estates surrounding the Centre or in parts of Camberwell or Peckham. These areas are among the 5% to 20% most deprived neighbourhoods in England. Many of these young people are exposed to Adverse Childhood Experiences (ACEs) in their homes. For example, they experience domestic violence, have a parent with a mental health condition, are a victim of abuse (physical, sexual and/or emotional), are the victim of neglect (physical and emotional), or they grow up in a household in which there are adults experiencing alcohol and drug problems. 2 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **In the area where Salmon Youth Centre operates** - Two thirds of children suspended from Southwark schools reside within the top 20 % of deprived areas in the country. - 43.6% of suspensions were of children eligible for free school meals (41.6% in 2018/19). - Before COVID19 almost one-third of young people in the borough do not even achieve five GCSEs. - 50% of young people in Southwark come from single parent, non-working homes. - Youth unemployment has risen from 4.1% to 13.1%. - 1 in 3 under 25s are claiming universal credit. The young people we work with are frequently exposed to violence. Children as young as six have recounted to us instances of knife and gun crime which they have witnessed in their community; telling us that these events have made them feel fearful. Young people of secondary school age tell us about physical and verbal bullying at school and about the added humiliation of attacks being filmed and shared across social media. We recently dealt with an incident where a young person aged 12 was attacked by three other young people just outside the Centre. Our staff were involved in the aftermath of the incident and have followed up by working closely with the young person and his family, as well as other members of the community that were involved. ## _**1.2 ACHIEVEMENTS AND PERFORMANCE**_ ## _**“Addressing young people’s and their family’s health and wellbeing, so they can achieve in education and work and contribute positively in their community.”**_ ## **Overview** We delivered **665 youth work sessions** , reaching **1,847 individual young people** with an average of 500 young people a week attending our Centre. Our activities support young people in the 6-11, 11-16, 14-19 and1925 age groups, including disabled young people, young leaders and apprentices. Our average attendance was 70 young people per session. ## **Our 4pm to 7pm After School Club** We have seen a growth in attendance at Salmon since introducing our new After School Club which runs between 4pm and 7pm on Mondays to Fridays and provides a nutritious hot meal. This new club gives young people a safe space to socialize directly after school and enables them to develop new skills and experiences. Research by the Mayor of London shows that 4pm to 7pm is the period when most violent crime involving young people takes place. It is the most dangerous time for young people to be out on the streets and it is when they are most at risk of becoming involved in knife crime. Grooming by gangs also takes place outside fast-food shops at this time, as young people are hungry leaving school and are drawn to these establishments. We have provided more than **15,000 free healthy meals** to young people in the year. The provision of hot meals not only provides an incentive for young people to come directly to our Centre after school, therefore avoiding getting into trouble on the streets, but also enables young people aged 14+ to remain at our Centre and continue their participation in club activities up to 10pm. The 4pm to 7pm After School Club has helped address the difficulties young people have faced as a result of falling behind with their schoolwork during to the pandemic, which has increased their anxiety. We provide tutoring by trained teachers in STEM subjects and provide support through peer directed learning, alongside mentors who help them with their homework. ## **Enrichment activities and tackling obesity** We deliver targeted provisions to young people aged between 6 and 25 through our open access clubs helping to raise their aspiration and build confidence. Our 6-11s club has an average weekly attendance of over 100 young people, and currently has a waiting list. Young people access all of the enrichment activities available in the Centre across arts, music, sports, leadership training and Christian exploration sessions. There are plenty of fun activities for them to enjoy with their peers. , Our Centre is making a considerable contribution to tackling high levels of obesity in our area by providing up to four hours a night of physical activity, making use of our top-class sports hall, outdoor climbing wall and indoor adventure and multigym. 3 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **Poor mental health** We have funding in place for a pilot programme to integrate two qualified counsellors, with backgrounds in delivering community-based psychotherapy to young people, into our service. One is focused on supporting young people aged 6 to 13 years, and the other is working with older young people aged 14+. This is in response to our identifying increasing numbers of young people attending our Centre who are experiencing four or more Adverse Childhood Experiences (ACEs). We are seeking to find ways to support them in developing coping mechanisms and techniques to manage some of the trauma that they carry with them. ## **Explanation of our mental health pilot programme:** _“The Integrative Psychotherapy practice we are offering takes a trauma-informed approach where holistic view, focus, expression and healing is the scaffolding, including consideration of impacts of neuroscience, biology, embodied memory and release and verbal, physical, cognitive, spiritual, behavioural and emotional expression and history of adjustments…Benefits of engaging with psychotherapy are improving individuals' unique mental, emotional, spiritual and physical health, i.e. their sense of self - how they feel about themselves, those around them, the world and existence and developing clear ideas and practices/ lifestyle surrounding high self-worth, meaning, contribution, fulfilment, creativity and managing healthy relationships. Also, developing a sustainable grounding for self-awareness and self-care as integral parts of life; including gaining/ developing a sense (and tools/strategies) of being able to cope with challenges, manage and maintain wellbeing and be able to seek support from those around them.”_ ## **Mentoring** We provided mentoring to **199 individual young people.** We hope to increase this provision to provide more intensive support for our most at-risk young people. Mentoring helps children and young people develop the tools to learn, grow and evolve in the face of adversity and stress. We take a gendered approach to mentoring, recognising girls’ and young women’s needs are often different to those of boys and young men. ## **Work with disabled young people** Our weekly Centre-based activities for disabled young people include adventure activities, trampoline, bouncy castle, a clay oven project, craft, art, music, cooking, sports (basketball, badminton, tag, catch) and dance. These activities are offered in a semi-structured way – enabling young people to feel safe to use their own initiative and make friends in a way that is natural to them. Young people taking part in these activities form strong friendships and bonds. Parents tell us that the progress their children make as a result of our provisions is evident and report increased social skills and independence. They tell us how pleased they are that their children are not at home on their own engaged with screens, but are instead active and socialising with their peers. They often say that Salmon is the _only_ place they do this apart from school and frequently report difficulties in finding other services that their child can access. _“The Friday club is the only remaining youth centre that can cater for his needs. There are practically no other places available within the vicinity, as they've been shut down or unfunded. It definitely gives him a place to interact, engage with others and express himself.” – Parent of a disabled young person_ ## **Apprenticeships** Our apprenticeship scheme has been effective in developing 15 young people’s personal, social, leadership and employability skills and in enhancing their wellbeing. It has made a significant contribution to them making tangible and permanent steps from being NEET to becoming EET. External evaluation of this programme has shown that this is down to us successfully implementing a policy of ‘sticking with young people’ – by building long-term relationships and providing tailored support every step of the way. Over the past five years the needs of the young people we work with, particularly the apprentices, have increased. They now require longer-term, more intensive support. We often find ourselves acting in the capacity of parents, social workers and counsellors and this requires striking a balance between drawing on our internal expertise and bringing in external resources. Mental health is one of the biggest challenges we face and through bringing in qualified psychotherapists we have assisted young people in this period with issues around anger, low self-esteem, death anxiety, academic anxiety, autism and post-traumatic stress disorder. 4 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ With Salmon’s support the apprentices have achieved Level 2 and Level 3 youth work qualifications and coaching awards. Each apprentice has made significant progress in attendance, punctuality, effort in the workplace, customer service, leadership in youth work sessions and aspirations. _‘Salmon’s impact on the young people is one that is needed everywhere. Not everyone is fortunate to have a community as loving, educational and supportive as Salmon.’ – Apprentice_ _‘I have gained so many skills during my time at Salmon and achieved numerous certificates and qualifications, including FA Level 1 in Tennis Coaching and FA Level 2 in Football Coaching. I also want to say a big thank you to the staff team for all the kindness, patience and understanding when things were hard with my Tourette’s. I am very grateful for all the support.’ – Apprentice_ ## **Young leaders** Young Leaders are young people at Salmon aged between 14 and 18 who receive training and support to develop and lead their own activities and projects for other young people in the community. In the year, a group of nine young leaders from Salmon hosted a Community Day for 30 young refugees who are based in South London. The Young Leaders planned and delivered the event – delivering fun activities such as rock climbing, trampolining and a football tournament. They provided the young refugees with a meal and gave each one a hamper to take home that included beauty products, schooling equipment and toiletries. The event was challenging for the young leaders because of the high level of planning involved, but it resulted in many positive outcomes, including increased confidence and leadership skills and new friendships being built. Other activities that the young leaders have taken part in included attending Career Days hosted by our corporate partners, Gallup and Third Way, which resulted in them learning many new employability skills, practising public speaking and subsequently taking part in work experience placements. _“I would say that leading on a project was a fear I overcame - it’s always scary as you may fail or mess up – and then the whole team is let down. A new skill that I gained was leadership, as I am not the type to take control and make a lot of decisions and I was given the opportunity to grow by learning that it’s alright to mess up, but also I discovered that I can achieve more than I think.” – Young Leader involved in organising the Community Day for 30 young refugees_ ## **Residentials** We took a group of eight young people on a residential trip to the WITH Centre in Norfolk. A flexible and family atmosphere was created on the residential, allowing young people to go with the flow, chill out, play games together and go to the beach. Everything was optional and the participants enjoyed the family feel of the trip – living in a house together, cooking and eating together, getting involved in the vegetable garden and enjoying evenings around a campfire. It was an important experience for them as it enabled them to get away from challenging home situations and reflect on their lives and aspirations for the future. ## **Case Study** S is one of our most at-risk young people. She has been a victim of physical and emotional abuse as a result of her mother suffering from severe mental health issues. When S first joined Salmon two years ago, she had difficulties socializing and her disruptive behaviour isolated her from others. She tended to get into fights with other young people due to her opinionated and blunt nature. This year S took part in the Youth Action programme at Salmon, taking on a supervisor role and improving her communication skills. She helped to deliver the event to address youth homelessness and took a leadership role in managing the team by motivating others, listening and delegating tasks on the day. She took part in the employment sessions over the summer and attended the Career Day run by our corporate partner, Gallup. She was very confident to stand in front of her peers and the Gallup workers to deliver a pitch about how she would design an office space. 5 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ We took S on a residential for a weekend, but it was a little different to our ‘normal’ activity-focused trip. It was more like a family holiday in a large house with eight other young people from two social groups. Young people decided if they wanted to take part in activities such as morning runs, food shops, beach trips, or cooking. S was always taking part in cooking and loved the experience of feeding others. When she got back from the residential our staff supported S to get a job in the local bakery. We’re so proud of S and all her progress. ## **CONCLUSION** The core funding provided by many funders and donors for our work with young people at Salmon has helped us to support the most vulnerable young people across a diverse range of activities, offering support where it is most needed and helping young people through whatever challenges they may be facing in their lives. Our programmes continue to go from strength to strength. To all our funders (listed in Note 3) and donors, who play such an important role in making a positive difference to the lives of so many young people, we should like to convey our heartfelt gratitude for your support. ## _**1.3 FINANCIAL REVIEW**_ ## **Results to 31 March 2022** The results for the year are set out in the attached Financial Statements which have been prepared in accordance with FRS102 and the reporting requirements for charities under the Charities SORP FRS102 (second edition, effective 1 January 2019). Our activities for the year to 31 March 2022 continued to be impacted by the after-effects of the Covid-19 pandemic as we gradually recovered from the closure of our facilities for much of the previous year. In these difficult circumstances, we reported a small surplus on General Funds of £3,289, compared with a deficit of £15,864 in 2020/21. Donations received during the year amounted to £132,680, which was broadly comparable with the £135,244 received in the previous year (excluding legacy income). Grant funding for charitable activities in 2021/22 totalled £542,371 (2020/1: £720,936). Much of the decrease was attributable to the phasing out of the Government’s Job Retention Scheme grant, £97,019 was received in 2021/22 against £203,641 the previous year. This much needed assistance enabled us to retain on furlough highly qualified and experienced staff while our facilities were closed. We are grateful to our many funders for their continuing support in these difficult circumstances. We acknowledge £100,734 from The Big Lottery to fund the Young Leader’s programme, £50,000 from the Jerusalem Trust towards core costs and staff salaries, £54,371 from BBC Children-In-Need and £21,200 from the Jack Petchey Foundation. Southwark Council continued to recognise and value the Salmon Youth Centre as a key strategic partner in the delivery of vital youth services in the Bermondsey area and provided grant funding of £82,687 for the Aiming High project and £38,704 towards other youth work activities. Income from other trading activities, including building lettings, totalled £134,382 compared with £102,148 the previous year as third party lettings of our facilities picked up following the enforced closure of the previous year. Operating costs (excluding depreciation on freehold buildings) totalled £941,174, an increase of £72,944 on the previous year (£868,230). Much of the increase was attributable to the significant increase in insurance premiums as a consequence of the discovery of combustible cladding on part of the site. (See below - Contingent liability regarding Combustible Cladding). Insurance costs rose from under £19,000 in 2020/21 to more than £77,000 in 2021/22. At 31 March 2022, our General Fund reserves stood at £281,771, an increase of £3,289 during the year. 6 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **Designated Funds** Unrestricted Designated Funds comprise the Jim Guild Legacy Fund and the Freehold Land and Buildings Fund. During the year, £22,976 (2020/21: £14,400) was released from the Jim Guild Legacy Fund as described in Note 13 and depreciation of £182,078 (2020/21: £182,078) on freehold buildings was charged to the Freehold Land and Buildings Fund. ## **Cash Balances** Cash balances at the year-end amounted to £500,627 (2020/21: £576,306). Of this total, £117,150 (2020/21: £229,126) was being held to meet our obligations to fulfil the terms of restricted grants in future periods. Net worth decreased to £7,350,969 (2020/21: £7,664,710) mainly as a consequence of the accounting requirement to charge depreciation, which is a non-cash item, on freehold buildings, ## **Extraordinary Item** In connection with the removal of combustible cladding from the Phase 2 building, the Government’s Building Safety Fund (BSF) has provided funding of £243,181 under a Trust Fund arrangement solely for the purpose of defraying eligible pre-tender costs which may be incurred by Salmon. (See below Contingent Liability regarding Combustible Cladding) Salmon has withdrawn £47,100 from the Trust Fund in reimbursement of previously incurred costs. £12,300 was incurred this year and £34,800 in the previous year. These costs have been re-classified as extraordinary item expenditure. The whole of the Trust Fund is held upon bare trust for the Beneficiaries (the leaseholders). Accordingly, the outstanding balance at 31 March 2022 of £196,081 has not been included as part of Salmon’s income for the year nor included in Salmon’s year-end cash balances. ## **Reserves Policy** The Trustees, having considered the financial risks, have set a reserves policy which aims to maintain free reserves at a level sufficient to cover a loss of 50% of grant income for a period of up to 12 months while replacement funding is sourced; this equates to approximately £250,000. The level of free reserves at 31 March 2022 on unrestricted funds of £479,318 (General funds of £281,771 and Legacy fund of £234,240, less other fixed assets of £36,693) is therefore sufficient to comply with this policy. ## **Plans for the Future** We plan to continue to respond to the needs of young people and their families in our community (as highlighted previously). Those needs have been compounded by the Covid-19 pandemic and have become more now urgent in view of the potentially significant, long-term consequences. Our aim is to continue to improve young people's physical and mental health, as well their engagement with education and work, but we are now starting from an adjusted baseline of worse physical and mental health and decreased engagement with education and work that the majority now find themselves at. ## **Contingent Liability regarding Combustible Cladding** The Salmon Youth Centre owns the freehold land at 43 Old Jamaica Road, Bermondsey. As part of the Bermondsey Spa Regeneration Area, the SYC site was redeveloped between 2005 and 2010 in two distinct phases. Phase 1 comprised the new sports hall and accommodation for resident volunteers and was completed in 2008. In 2008, SYC granted a 127- year lease to Hyde Housing Association Limited (Hyde) in consideration of their developing the Phase 2 building, which comprised further space for SYC youthwork on three lower floors above which a block of 26 flats (known as Davoll Court) was built. Hyde procured the design and construction of the Phase 2 building between 2008 and 2010 using ROK Ltd as its contractor. ROK Ltd also built other blocks of flats in the area for Hyde as part of the Bermondsey Spa 7 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ Regeneration Area, for which Hyde had been appointed Lead Developer by Southwark Council. ROK Ltd went into administration in 2010. In summer 2020, Hyde, as head leaseholder, drew our attention to the existence of combustible cladding covering the Phase 2 building. This will have to be removed as it breaches fire safety regulations introduced following the Grenfell Tower fire in 2017. Hyde also pointed out that, since SYC had retained the freehold of the Phase 2 building, it was SYC’s responsibility in law to arrange for the removal and replacement of the combustible cladding. SYC then proceeded, with Hyde’s assistance, to register with the Building Safety Fund (BSF), which the Government had set up to provide funding for remedial cladding costs. After confirming its legal position, SYC appointed building consultants, who commissioned specialist fire engineer reports. In March/April 2021 it was confirmed that the cladding on the Phase 2 building was indeed combustible and would need to be removed and replaced. The fire engineers also identified some combustible material on the Phase 1 building which will also need to be dealt with. SYC immediately supplied these reports to the BSF and applied for funding to cover the costs. In September 2021, the BSF confirmed that the removal and replacement of all the cladding on the Phase 2 building and the combustible material on the Phase 1 building was eligible for funding. The BSF has offered interim funding via a Pre-Tender Support Agreement (PTSA) which should be sufficient cover most of SYC’s consultants’ costs in proceeding to tender stage of awarding a contract. However, there is no assurance from the BSF that all remedial costs will be approved as eligible a grant by the BSF. Before any remedial work can be undertaken, SYC must follow a formal consultation procedure with Hyde and the 26 individual sub-tenants under the provisions of Section 20 of the Landlord & Tenant Act 1985. This process is likely to take several months. It is, therefore, unlikely that SYC will be in a position to enter into any building contract until late 2022. The Trustees will not enter into any building contract for the removal and replacement of the defective cladding unless and until they are irrevocably assured that all necessary funding is fully committed and that the committed funding will be sufficient to cover any cost over-runs and any other remedial work that might be incurred. ## **Going concern** Undoubtedly, the above situation, which is not of our making, is posing a very real threat to the future viability of SYC. There is considerable uncertainty over the timing and the extent, if any, of the liability that may accrue to SYC as a consequence of its obligation as freeholder to replace combustible cladding on Davoll Court, a building which was designed and constructed by the head leaseholder. The Trustees have reviewed the budgets and cash flow forecasts for a least 12 months beyond the date of signing these financial statements. Taking into account the eligibility for funding from the BSF and the potential to recover any costs not funded by the BSF from the head leaseholder, the Trustees consider that it remains appropriate to prepare the financial statements on the basis that SYC continues as a going concern for the foreseeable future. ## **CONCRETE** CONCRETE is a separate youth work project hosted by Salmon and accounted for separately as a restricted fund. CONCRETE works with and supports Christian youth workers nationally through a process of mutual development in the following areas: **Connecting** : Drawing Christian youth workers together to offer each other support and encouragement, whilst strengthening and maintaining good practice. **Thinking** : Encouraging participation in ‘Think Tanks’ which cover a wide range of subjects, exploring the realities of work with young people, sharing good practice, reflecting on difficulties, accessing training and having opportunities to think creatively together. These spaces provide the opportunity and stimulus for the development of new ideas and pushing good practice forward. 8 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ **Amplifying** : Sharing what is learnt through ‘Connecting’ and ‘Thinking’ in order to influence good practice for Christians working with young people throughout the UK and thereby, ultimately, strengthening and improving the way youth work is carried out nationally. CONCRETE has networking relationships with several other charities and organisations, notably 48 parishes within the Diocese of London. Following the Covid-related restrictions of 20/21, activities resumed again in September 2021. The impact of the pandemic has affected young people in many different ways and we are developing strategic priorities in response to this challenging situation. We have begun reconnecting with the network and hosted a number of group discussions. ## _**1.4 STRUCTURE, GOVERNANCE AND MANAGEMENT**_ ## **Objects** The objects for which The Salmon Youth Centre in Bermondsey is established are to benefit the public _by ‘the promotion of the Christian faith and the organisation and support of Christian youth clubs, principally in the London Borough of Southwark, in each case consistent with the evangelical principles of the Church of England, and the advancement of the education, training and development of mission workers and youth leaders’._ ## **Governing Document** The organisation, founded in 1906, is a charitable company limited by guarantee and governed by its Articles of Association. It changed its name in 1995 to The Salmon Youth Centre in Bermondsey, formerly being known as the Cambridge University Mission (CUM Trust Limited). New Articles of Association were adopted in October 2014. In the event of being wound up, members may be required to contribute an amount not exceeding £1 each. ## **Organisational Structure** The Trustees normally meet 6 times a year. There is one formal subcommittee, namely the Finance Committee, which aims to meet three times a year to review the financial position in detail. The Finance Committee is chaired by the Honorary Treasurer. ## **Recruitment, appointment and election of Trustees** Trustees are elected and re-elected at the Annual General Meeting (“AGM”). A third of existing Trustees must retire by rotation at each AGM. New Trustees can be appointed during the year, but they must then be elected at the next AGM. In searching for new Trustees, the Trustees, whilst recognising diversity issues, look for people who are committed to the Christian ethos of the organisation, who have relevant skills and experience as well as the time to fulfil the duties effectively. At present the Trustees are seeking to appoint new trustees with business, commercial and fundraising experience, human resources management experience and connections with the City of London. Induction, training and other forms of support are offered to new and existing Trustees, both specific to the organisation and relating to the general duties of charitable trustees. ## **Council of Reference** This is the informal name given to the members of the charitable company. They are admitted into membership by the Trustees. They have the right to attend and vote at the AGM. There are twelve members of the Council of Reference, in addition to those nine who are Trustees. The Articles of Association restrict the maximum number of members of the company to 30 (or such greater number as the Trustees may resolve). Members of the company must support and continue to support the objects of the company. 9 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **Employee remuneration** The pay of the Charity’s staff including the Director is reviewed annually and linked to National Joint Council (NJC) and Joint Negotiating Committee (JNC) pay scales. All increases are directly linked to the NJC and JNC pay awards. In view of the nature of the Charity, the Trustees consider that this is appropriate. ## **Fundraising** Salmon does not receive a significant proportion of its income from public fundraising. However, the Trustees aim to follow best practice wherever possible. ## **Risk management** In line with best practice, the Trustees review the major risks to which the organisation is exposed at least once a year and keep the risk register under regular review. The major risks facing Salmon that could affect its ability to maintain its operations at the current level are: - Buildings risk – financial loss arising from the obligation to replace combustible cladding (referred to on pages 7 and 8 above) - Financial risk – loss of funding from grants (many of which are of short-term duration) without replacement; - Human Resources risk – shortages of appropriately qualified staff and volunteers; - Reputational risk – failure of child protection and safeguarding policies. We seek to mitigate the financial risk by implementing agreed quality controls with regular reporting to funders. Regular staff appraisals and targeted training mitigate the human resources risk and strict procedures on safeguarding, including DBS checks for all Trustees, staff and volunteers, mitigate the reputational risk. ## **Code of Governance** The Trustees aim to comply, as appropriate, with the principles set out in the Charity Governance Code. A comprehensive set of policies and procedures is maintained and reviewed on a cyclical basis. ## _**1.5 STATEMENT OF TRUSTEES’ RESPONSIBILITIES**_ The Trustees (who are also the Directors of The Salmon Youth Centre for the purposes of company law) are responsible for preparing this report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable activities for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently, - observe the methods and principles of the Charities SORP, make judgements and estimates that are reasonable and prudent, - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements, - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in operation. The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time of the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 10 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ So far as each of the Directors is aware at the time the report is approved: - there is no relevant audit information of which the company's auditors are unaware; and - the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. ## **Small Companies Provisions** In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. ## _**By order of the Board**_ ## Adrian Greenwood A.D.C. Greenwood Chair – on behalf of the Trustees 43 Old Jamaica Road London SE16 4TE 24 August 2022 11 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **2. INDEPENDENT AUDITORS’ REPORT** ## **Opinion** We have audited the financial statements of The Salmon Youth Centre in Bermondsey for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 March 2022 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company'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. ## **Emphasis of matter: contingent liability regarding combustible cladding** We draw attention to the contingent liability regarding combustible cladding, which is described in note 20 (Contingent Liability) on page 27. Our opinion is not modified in respect of this matter. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 12 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees’ Report (which includes the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors’ report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the directors’ report). We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the charitable company; or - the charitable company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. - the directors were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report ## **Responsibilities of trustees for the financial statements** As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to safeguarding regulations, employment law, the use of restricted funds and Charity Law, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Charities Act 2011 and Charities SORP. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of income. Audit procedures performed by the engagement team included: - Inspecting minutes of Trustees’ meetings; 13 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ - Reviewing allocations and disclosures relating to restricted funds; - Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Evaluating management’s controls designed to prevent and detect irregularities; and - Identifying and testing journals. 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 auditor’s report. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Jane Askew (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors 10 Queen Street Place London EC4R 1AG ## 25/08/2022 14 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **STATEMENT OF FINANCIAL ACTIVITIES** |**INCOME AND EXPENDITURE**||**Unrestricted funds**|**Unrestricted funds**|**Restricted**||| |---|---|---|---|---|---|---| |||**General**|**Designated**|**funds**|**2022**|**2021**| ||**Note**|**£**|**£**|**£**|**£**|**£**| |**Income from**||||||| |Donations and legacies|2|132,680|-|-|132,680|151,444| |Charitable activities|3|92,354|-|450,017|542,371|720,936| |Other trading activities|4|134,382|-|-|134,382|102,148| |Other||78|-|-|78|162| |||-------------------|-------------------|---------------------|---------------------|---------------------| |**Total income**||**359,494**|**-**|**450,017**|**809,511**|**974,690**| |||-------------------|-------------------|--------------------|---------------------|---------------------| |**Expenditure on**||||||| |Raising funds||78,477|-|-|78,477|74,880| |Charitable activities||16,198|-|846,499|862,697|793,350| |Building depreciation||-|182,078|-|182,078|182,078| |||-----------------|-------------------|------------------|----------------------|----------------------| |**Total expenditure**|8|**94,675**|**182,078**|**846,499**|**1,123,252**|**1,050,308**| |||-----------------|--------------------|------------------|--------------------|--------------------| |**Net income/(expenditure)**||||||| |**before extraordinary items**||264,819|(182,078)|(396,482)|(313,741)|(75,618)| |**Extraordinary item**|9|||||| |Building Safety Fund:||||||| |Income||-|-|47,100|47,100|-| |Expenditure||-|-|(47,100)|(47,100)|-| |||-----------------|-----------------------|-----------------------|--------------------|--------------------| |**Net income/(expenditure)**||**264,819**|**(182,078)**|**(396,482)**|**(313,741)**|**(75,618)**| |**Transfers between funds**|13|(261,530)|(22,976)|284,506|-|-| |||-----------------|-----------------------|-----------------------|--------------------|--------------------| |**Net movement in funds**||**3,289**|**(205,054)**|**(111,976)**|**(313,741)**|**(75,618)**| |Fund balances brought forward||||||| |at 1 April 2021||278,482|7,157,102|229,126|7,664,710|7,740,328| |||---------------------|------------------------|-----------------------|------------------------|------------------------| |**Fund balances carried**||||||| |**forward at 31 March 2022**||**£281,771**|**£6,952,048**|**£117,150**|**£7,350,969**|**£7,664,710**| |||==========|===========|===========|===========|===========| All transactions are derived from continuing activities. All recognised gains and losses are included in the Statement of Financial Activities. The accompanying notes form part of these financial statements. Full comparative figures for the year ended 31 March 2021 are shown in Note 19. 15 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **BALANCE SHEET AT 31 MARCH 2022** ## Company No: 958986 |||**2022**|**2022**|**2021**|**2021**| |---|---|---|---|---|---| ||**Note**|**£**|**£**|**£**|**£**| |**FIXED ASSETS**|||||| |Freehold land and buildings|10||6,717,808||6,899,886| |Other fixed assets|10||36,963||43,015| ||||----------------------||----------------------| ||||6,754,771||6,942,901| |**CURRENT ASSETS**|||||| |Debtors|11|157,396||220,965|| |Cash at bank and in hand||500,627||576,306|| |||-------------------||-------------------|| |||658,023||797,271|| |**CREDITORS: amounts falling**|||||| |**due within one year**|12|(61,825)||(75,462)|| |||---------------------||---------------------|| |**Net Current Assets**|||596,198||721,809| ||||------------------------||------------------------| |**NET ASSETS**|||£7,350,969||£7,664,710| ||||===========||===========| |**FUNDS**|||||| |Restricted funds|14||117,150||229,126| |Unrestricted funds:|||||| |Land and Buildings fund||6,717,808||6,899,886|| |Jim Guild Legacy fund||234,240||257,216|| |General funds|13|281,771||278,482|| |||---------------------|7,233,819|---------------------|7,435,584| ||||--------------------------||--------------------------| ||||£7,350,969||£7,664,710| ||||============||============| Approved and authorised for issue by the Trustees on 24 August 2022 and signed on its behalf: ## Adrian Greenwood ## Peter Knight A.D.C. Greenwood Peter Knight Chair of Board of Trustees Honorary Treasurer The accompanying notes form part of these financial statements. 16 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **CASH FLOW STATEMENT** |**ASH FLOW STATEMENT**||| |---|---|---| ||**2022**|**2021**| ||**£**|**£**| |**Cash flows from operating activities:**||| |Net cash (used in)/provided by operating activities|(63,774)|120,916| |**Cash flows from investing activities:**||| |Interest income|78|162| |Purchase of fixed assets|(11,983)|(1,141)| ||------------------|------------------| |**Net cash used in investing activities**|(11,905)|(979)| ||------------------|------------------| |Change in cash and cash equivalents in the reporting period|(75,679)|119,937| |Cash and cash equivalents at the beginning of the reporting period|576,306|456,369| ||--------------------|--------------------| |**Cash and cash equivalents at the end of the reporting period**|£500,627|£576,306| ||=========|=========| |**NOTES TO THE CASH FLOW STATEMENT**|**2022**|**2021**| ||**£**|**£**| |**Reconciliation of net income to net cash flow from operating activities**||| |Net expenditure for the reporting period|(313,741)|(75,618)| |Adjustments for:||| |Decrease in debtors|63,569|(39,476)| |Decrease in creditors|(13,637)|35,843| |Interest income|(78)|(162)| |Depreciation charges|200,113|200,329| ||-----------------|-----------------| |**Net cash (used in)/provided by operating activities**|£(63,774)|£120,916| ||========|========| |**Analysis of cash and cash equivalents**||| |Cash at bank and in hand|£500,627|£576,306| ||=========|=========| 17 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **1. NOTES TO THE FINANCIAL STATEMENTS** ## **ACCOUNTING POLICIES** ## **Basis of preparation** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Statement of Recommended Practice for Charities (Second Edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Salmon Youth Centre 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 note(s). ## **Preparation of financial statements on a going concern basis** The Trustees have reviewed the budgets and cash flow forecasts for at least 12 months beyond the date of signing these financial statements. Having reviewed the cash flow forecasts and budgets for the year to 31 March 2024, and for the reasons given in the Trustees’ Report on pages 7 and 8, the Trustees consider it appropriate to prepare these financial statements on the basis that the Charity continues as a going concern for the foreseeable future. ## **Critical accounting judgements and estimates** In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the charity’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. ## **Fund accounting** Unrestricted funds comprise accumulated surpluses and deficits and are available for use at the discretion of the Trustees in furtherance of the general charitable objectives. Restricted funds comprise grants received for, and their use restricted to, specific purposes, as specified by the donor. ## **Income recognition** All income is recognised once the charity has entitlement to income, it is probable that income will be received and the amount of income receivable can be measured reliably. ## **Donations and legacies** Donations and gifts and are recognised in full in the Statement of Financial Activities when there is entitlement, probability of receipt and the amount of income receivable can be measured reliably. ## **Grants** Grants are recognised in full in the Statement of Financial Activities in the year in which the charity has entitlement to the income, the amount of income receivable can be measured reliably and there is probability of receipt. ## **Income from charitable activities** Income from charitable activities is recognised as earned as the related services are provided. Income from other trading activities is recognised as earned as the related goods or services are provided. ## **Expenditure** Expenditure is accounted for on an accruals basis and includes irrecoverable VAT which is reported as part of the expenditure to which it relates. Costs of raising funds are those costs incurred to raise voluntary income and costs of trading activities for the purpose of raising funds. Charitable expenditure relates to costs incurred in delivering the charity’s activities and services to its beneficiaries. Governance costs are costs incurred in meeting the constitutional and statutory requirements of the charity. 18 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **Cash at bank and in hand** Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from inception. ## **Debtors** Short term debtors are measured at transaction price, less any impairment. ## **Depreciation** Depreciation is calculated to write off the cost of fixed assets over their estimated useful lives using the following rates: Freehold buildings - 2% straight line basis Fixtures and fittings - 15% to 33 1/3% straight line basis Motor vehicles - 25% straight line basis Freehold land is not depreciated. ## **Creditors and provisions** Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. ## **Employee benefits:** ##  **Short term benefits** Short term benefits including holiday pay are recognised as an expense in the period in which the service is received. ##  **Employee termination benefits** Termination benefits are accounted for on an accrual basis and in line with FRS 102. ##  **Pensions** The charity operates a defined contribution pension scheme. Contributions are charged to the statement of financial activities as they become payable in accordance with the rules of the scheme. ## **Financial instruments** The charity only has financial assets and financial liabilities that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value. ## **2** |**DONATIONS AND LEGACIES**|**2022**|**2021**| |---|---|---| ||**£**|**£**| |Consists of donations from:||| |Individuals|96,757|97,419| |Churches|8,167|12,826| |Corporate and Events|27,756|24,999| |Legacies|-|16,200| ||-------------------|-------------------| ||£132,680|£151,444| ||=========|=========| 19 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ |**3**|**CHARITABLE ACTIVITIES**|**2022**|**2021**| |---|---|---|---| |||**£**|**£**| ||**Restricted income:**||| ||Big Lottery – Young Leaders Programme||97,576| ||Jack Petchey Foundation|21,200|2,249| ||Jerusalem Trust|50,000|20,000| ||Alan & Babette Sainsbury Trust|18,000|18,000| ||Southwark Council – Young People with Disabilities|82,687|38,686| ||Southwark Council – Youthwork Commissioning|38,704|30,962| ||United St Saviours|-|45,000| ||Bernard Sunley Charitable Trust|-|5,500| ||BBC Children in Need|54,371|18,124| ||Headstart Action|4,278|52,889| ||Mayor of London|2,500|47,500| ||Southwark Community Response Fund|-|21,500| ||The Julia and Hans Rausing Trust|-|75,000| ||Small grants|14,378|20,309| ||Grants for ‘Concrete’ project:||| ||London Diocese|24,000|24,000| ||Jerusalem Trust|10,000|-| ||With Community Ltd|12,000|-| ||HMRC Job Retention Scheme|4,665|19,214| ||Other income|12,500|-| |||---------------------|---------------------| |||450,017|536,509| ||**Unrestricted income:**||| ||HMRC Job Retention Scheme|92,354|184,427| |||---------------------|---------------------| |||£542,371|£720,936| |||==========|==========| The Big Lottery Fund grant funded the ‘Young Leaders’ programme, the Apprentices and the Clubs Development Manager. The Jerusalem Trust grant funded core administration and staff costs. The BBC Children in Need grant funded homework clubs and employability workshops. The Jack Petchey Foundation grant funded programmes for young people aged 16 to 25 years. London Diocese and Jerusalem Trust funded the ‘Concrete’ project supporting youth workers nationally through a process of mutual development. Southwark Council Young People with Disabilities grant funded staff and activity costs for the ‘Young people with mild to moderate disabilities’ programme. Southwark Council Commissioning grant funds the work of a number of youthwork clubs and activities. The Southwark Neighbourhood Fund grant funded various youthwork activities. The Alan & Babette Sainsbury Trust grants funded core administration and staff costs. The HMRC Job Retention Scheme grant contributed towards the cost of retaining staff on furlough. We also acknowledge with grateful thanks grants from the Tom ap Rhys Pryce Memorial Trust and the Bailey Thomas Charitable Fund. 20 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ |**4**|**OTHER TRADING ACTIVITIES**|**2022**|**2021**| |---|---|---|---| |||**£**|**£**| ||Lettings|133,302|69,228| ||Resident volunteers’ accommodation|1,080|32,920| ||Club subscriptions|-|-| |||--------------------|--------------------| |||£134,382|£102,148| |||=========|=========| |**5**|**STAFF COSTS AND NUMBERS**|**2022**|**2021**| |||**Number**|**Number**| ||The weekly average number of employees was:||| ||Full-time|6|8| ||Part-time|9|6| |||---------|---------| |||15|14| |||======|======| ||Staff costs were as follows:|**£**|**£**| ||Wages and salaries|281,453|297,621| ||Social security costs|34,730|33,184| ||Pension|16,439|12,443| |||-------------------|-------------------| |||£332,622|£343,248| |||=========|=========| No employee received emoluments exceeding £60,000 in the year (2021: none). The Charity’s key management are considered to be the Trustees, the Director, the Assistant Director and the Clubs Development Manager. The total employee benefits of the key management personnel of the Charity were £135,392 (2021: £135,417). ## **6 TRUSTEES’ REMUNERATION AND RELATED PARTY TRANSACTIONS** No trustees received any remuneration for their services nor any reimbursed expenses during the year. Trustees donated £26,520 to Salmon during the year (2021: £14,240). The spouse of one Trustee was employed as a cook and earned £13,233 during the year (2021: £nil).. The spouse of another Trustee provided electrical services during the year amounting to £6,145 (2021: £2,060). There were no other related party transactions in either year. |**7**|**ANALYSIS OF EXPENDITURE**|||**2022**| |---|---|---|---|---| |||**Staff costs**|**Other**|**Total**| |||**£**|**£**|**£**| ||Raising funds|42,927|35,550|78,477| ||Charitable activities|289,695|573,002|862,697| ||Building depreciation|-|182,078|182,078| |||-------------|--------------|---------------| |||£332,622|£790,630|£1,123,252| |||=========|==========|==========| ||**Comparative analysis**|||**2021**| |||**Staff costs**|**Other**|**Total**| |||**£**|**£**|**£**| ||Raising funds|40,817|34,063|74,880| ||Charitable activities|302,431|490,919|793,350| ||Building depreciation|-|182,078|182,078| |||-------------|--------------|---------------| |||£343,248|£707,060|£1,050,308| |||=========|==========|==========| 21 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ |**8**|**ANALYSIS OF EXPENDITURE**|**Direct**|**Allocated**|**Total**|| |---|---|---|---|---|---| |||**costs**|**costs**|**2022**|| |||**£**|**£**|**£**|| |**8a**|**Direct and allocated costs**||||| ||Raising funds|55,531|22,946|78,477|| ||Charitable activities|411,545|451,152|862,697|| ||Building depreciation|-|182,078|182,078|| |||-------------------|------------------|-------------------|| |||£467,076|£656,176|£1,123,252|| |||=========|==========|=========|| ||**Comparative analysis**|**Direct**|**Allocated**|**Total**|| |||**costs**|**costs**|**2021**|| |||**£**|**£**|**£**|| ||**Direct and allocated costs**||||| ||Raising funds|55,070|19,810|74,880|| ||Charitable activities|401,437|391,913|793,350|| ||Building depreciation|-|182,078|182,078|| |||-------------------|------------------|-------------------|| |||£456,507|£593,801|£1,050,308|| |||=========|==========|=========|| |**8b**|**Analysis of allocated costs**||||**Total**| |||**Management**|**Governance**|**Premises**|**2022**| |||**£**|**£**|**£**|**£**| ||Raising funds|9,809|1,141|11,996|22,946| ||Charitable activities|210,008|22,439|218,705|451,152| ||Building depreciation|-|-|182,078|182,078| |||-------------------|------------------|-------------------|--------------------| |||£219,817|£23,580|£412,779|£656,176| |||=========|=========|=========|=========| ||**Comparative analysis**||||**Total**| |||**Management**|**Governance**|**Premises**|**2021**| |||**£**|**£**|**£**|**£**| ||Raising funds|11,646|627|7,538|19,811| ||Charitable activities|248,750|12,322|130,840|391,912| ||Building depreciation|-|-|182,078|182,078| |||-------------------|------------------|-------------------|--------------------| |||£260,396|£12,949|£320,456|£593,801| |||=========|=========|=========|=========| |**8c**|**Governance cost**|||**2022**|**2021**| |||||**£**|**£**| ||Governance costs include:||||| ||Staff costs|||5,460|1,429| ||Auditor’s remuneration:||||| ||Audit fee|||18,120|11,520| |||||------------------|------------------| |||||£23,580|£12,949| |||||=========|=========| 22 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **9 EXTRAORDINARY ITEM** . During the year, the Government’s Building Safety Fund (BSF) provided funding of £243,181 under a Trust Fund arrangement solely for the purpose of defraying eligible pre-tender costs which may be incurred by Salmon in connection with the removal of combustible cladding from the Phase 2 building. (See Note 20 Contingent Liability – Combustible Cladding) Salmon has withdrawn £47,100 from the Trust Fund in reimbursement of previously incurred costs, £12,300 of which had been incurred in the year and £34,800 in 2020/21. These costs have been reclassified as extraordinary item expenditure. The whole of the Trust Fund is held upon bare trust for the beneficiaries (the leaseholders). Accordingly, the outstanding balance at 31 March 2022 of £196,081 has not been included as part of Salmon’s income for the year nor has it been included in of Salmon’s year-end cash balance. |**10**|**TANGIBLE ASSETS**|**Freehold**|**Freehold**|**Fixtures &**|| |---|---|---|---|---|---| |||**land**|**Buildings**|**fittings**|**Total**| ||**Cost**|**£**|**£**|**£**|**£**| ||1 April 2021|£119,838|£9,103,894|£231,121|£9,454,853| ||Additions|-|-|11,983|11,983| ||Disposals|-|-|-|-| |||-------------------|-----------------------|----------------|---------------------| ||31 March 2022|£119,838|£9,103,894|£243,104|£9,466,836| |||--------------------|-----------------------|-----------------|---------------------| ||**Depreciation**||||| ||1 April 2021|-|£2,323,846|£188,106|£2,511,952| ||Charge for the year|-|182,078|18,035|200,113| ||Disposals|-|-|-|-| |||----------------|--------------------|----------------|--------------------| ||31 March 2022|-|£2,505,924|£206,141|£2,712,065| |||----------------|--------------------|----------------|--------------------| ||**Net book value**||||| ||31 March 2022|£119,838|£6,597,970|£36,963|£6,754,771| |||=========|===========|========|===========| ||31 March 2021|£119,838|£6,780,048|£43,015|£6,942,901| |||=========|===========|========|===========| Sport England, the Big Lottery Fund and the London Borough of Southwark, hold legal charges over the freehold building at 43 Old Jamaica Road, London SE16 4TE. ## **11 DEBTORS** |**DEBTORS**|**2022**|**2021**| |---|---|---| ||**£**|**£**| |Grants receivable|88,623|173,729| |Gift aid tax recoverable|4,450|2,816| |Accrued income|40,945|37,340| |Sundry debtors and prepayments|23,378|7,080| ||-------------------|-------------------| ||£157,396|£220,965| ||=========|=========| 23 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ |**12**|**CREDITORS: amounts falling due**|**CREDITORS: amounts falling due**|||**2022**|**2021**| |---|---|---|---|---|---|---| ||**within one year**||||**£**|**£**| ||Accrued expenses and other creditors||||51,631|54,073| ||Grants in advance||||-|12,924| ||Tax and social security||||10,194|8,465| ||||||--------------------|--------------------| ||||||£61,825|£75,462| ||||||=========|=========| |**13**|**UNRESTRICTED**|||||| ||**FUNDS**|**Balance at**|||**Transfers**|**Balance at**| |||**1 April**|||**between**|**31 March**| |||**2021**|**Income**|**Expenditure**|**Funds**|**2022**| |||**£**|**£**|**£**|**£**|**£**| ||**Designated funds**|||||| ||Land and Buildings (a)|6,899,886|-|(182,078)|-|6,717,808| ||Jim Guild Legacy (b)|257,216|-|-|(22,976)|234,240| ||**General funds**|278,482|359,494|(94,675)|(261,530)|281,771| |||-------------------------|------------------|-------------------|---------------------|-------------------------| |||£7,435,584|£359,494|£(276,753)|£(284,506)|£7,233,819| |||===========|=========|=========|=========|===========| ||**Comparative**|**Balance at**|||**Transfers**|**Balance at**| ||**movement**|**1 April**|||**between**|**31 March**| |||**2020**|**Income**|**Expenditure**|**Funds**|**2021**| |||**£**|**£**|**£**|**£**|**£**| ||**Designated funds**|||||| ||Land and Buildings (a)|7,081,964|-|(182,078)|-|6,899,886| ||Jim Guild Legacy (b)|271,616|-|-|(14,400)|257,216| ||**General funds**|294,346|438,181|(140,297)|(313,748)|278,482| |||-------------------------|------------------|-------------------|---------------------|-------------------------| |||£7,647,926|£438,181|£(322,375)|£(328,148)|£7,435,584| |||===========|=========|=========|=========|===========| Note (a). Represents the extent to which funds are invested in freehold land and buildings for use by the Charity and therefore are not available for any other purpose. - Note (b). The Jim Guild Legacy Fund is being / will be applied towards: - (i) youth work, by funding a youth worker for the 6-9’s club and providing for the cost of trips and residentials for young people; - (ii) fundraising, by funding additional fundraising support to secure additional sources of grant funding, and - (iii) upgrading the facilities at the Salmon Youth Centre on capital projects that will reduce running costs in future years. The transfer from General Funds to Restricted Funds represents Salmon’s financial contribution to project expenditure to the extent that such expenditure is not covered by restricted grant income. 24 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ |**14**|**RESTRICTED FUNDS**|**Balance at**|||**Transfer**|**Balance at**| |---|---|---|---|---|---|---| |||**1 April**|||**Between**|**31 March**| |||**2021**|**Income**|**Expenditure**|**Funds**|**2022**| |||**£**|**£**|**£**|**£**|**£**| ||Youthwork projects|164,807|386,852|(778,063)|284,506|58,102| ||Concrete’ project|64,319|63,165|(68,436)|-|59,048| |||----------------|------------------|-------------------|-------------------|------------------| ||Restricted Funds|£229,126|£450,017|£(846,499)|£284,506|£117,150| |||========|=========|=========|=========|========| ||**Comparative**|**Balance at**|||**Transfer**|**Balance at**| ||**movement**|**1 April**|||**Between**|**31 March**| |||**2020**|**Income**|**Expenditure**|**Funds**|**2021**| |||**£**|**£**|**£**|**£**|**£**| ||Youthwork projects|34,340|493,295|(690,976)|328,148|164,807| ||‘Concrete’ project|58,062|43,214|(36,957)|-|64,319| |||----------------|------------------|-------------------|-------------------|------------------| ||Restricted Funds|£92,402|£536,509|£(727,933)|£328,148|£229,126| |||========|=========|=========|=========|========| Restricted Funds represent amounts received and expended for various youthwork projects as described in Note 3. The balance carried forward of £117,150 represents funding received before 31 March 2022 but which will be expended in 2022-23 and later years. ## **15 ANALYSIS OF NET ASSETS BETWEEN FUNDS** ||**General**|**Designated**|**Restricted**|**Total**| |---|---|---|---|---| ||**funds**|**funds**|**funds**|**2022**| ||**£**|**£**|**£**|**£**| |Freehold land and buildings|-|6,717,808|-|6,717,808| |Other fixed assets|36,963|-|-|36,963| |Net current assets|244,808|234,240|117,150|596,198| ||-------------------|----------------------|-------------------|----------------------| |Net assets|£281,771|£6,952,048|£117,150|£7,350,969| ||=========|==========|=========|===========| |**Comparative analysis**|**General**|**Designated**|**Restricted**|**Total**| ||**funds**|**funds**|**funds**|**2021**| ||**£**|**£**|**£**|**£**| |Freehold land and buildings|-|6,899,886|-|6,899,886| |Other fixed assets|43,015|-|-|43,015| |Net current assets|235,467|257,216|229,126|721,809| ||-------------------|----------------------|-------------------|----------------------| |Net assets|£278,482|£7,157,102|£229,126|£7,664,710| ||=========|==========|=========|===========| ## **16 TAXATION** The Salmon Youth Centre is a registered charity and therefore is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities. 25 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **17 LIABILITY OF MEMBERS** The Salmon Youth Centre is constituted as a company limited by guarantee and has no share capital. The liability of each member is limited to the sum of £1 per member. |**18**|**OPERATING LEASES**|**2022**|**2021**| |---|---|---|---| |||**£**|**£**| ||Future minimum lease payments commitments under||| ||non-cancellable operating leases:||| ||Operating leases which expire:||| ||Within one year|10,051|10,051| ||Between two to five years|8,068|18,119| |||-----------------|-----------------| |||£18,119|£28,170| |||========|========| ## **19 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 March 2021** |**INCOME AND EXPENDITURE**|**Unrestricted funds**|**Unrestricted funds**|**Restricted**|| |---|---|---|---|---| ||**General**|**Designated**|**funds**|**2021**| ||**£**|**£**|**£**|**£**| |**Income from**||||| |Donations and legacies|151,444|-|-|151,444| |Charitable activities|184,427|-|536,509|720,936| |Other trading activities|102,148|-|-|102,148| |Other|162|-|-|162| ||-------------------|-------------------|---------------------|---------------------| |**Total**|**438,181**|**-**|**536,509**|**974,690**| ||-------------------|-------------------|--------------------|---------------------| |**Expenditure on**||||| |Raising funds|74,880|-|-|74,880| |Charitable activities|65,417|-|727,933|793,350| |Building depreciation|-|182,078|-|182,078| ||-----------------|-------------------|------------------|----------------------| |**Total**|**140,297**|**182,078**|**727,933**|**1,050,308**| ||-----------------|--------------------|------------------|--------------------| |**Net income/(expenditure)**|297,884|(182,078)|(191,424)|(75,618)| |**Transfers between funds**|(313,748)|(14,400)|328,148|-| ||-----------------|-----------------------|-----------------------|--------------------| |**Net movement in funds**|**(15,864)**|**(196,478)**|**136,724**|**(75,618)**| |Fund balances brought forward||||| |at 1 April 2020|294,346|7,353,580|92,402|7,740,328| ||---------------------|------------------------|-----------------------|------------------------| |**Fund balances carried**||||| |**forward at 31 March 2021**|**£278,482**|**£7,157,102**|**£229,126**|**£7,664,710**| ||==========|===========|===========|===========| 26 **THE SALMON YOUTH CENTRE IN BERMONDSEY** _REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022_ ## **20 CONTINGENT LIABILITY – COMBUSTIBLE CLADDING** In 2008, as part of the redevelopment of the SYC freehold site, SYC granted Hyde Housing Association Limited (Hyde) a 127-year lease in consideration for the development of the ‘Phase 2’ building. Hyde procured the design and construction of the ‘Phase 2’ building which comprises three lower floors for SYC’s occupation above which there is a block of 26 flats. In summer 2020, Hyde, as head leaseholder, informed SYC that the ‘Phase 2’ building was covered with combustible cladding and that it was SYC’s legal responsibility, as freeholder, to arrange removal and replacement of the combustible cladding. SYC has applied to the Government’s Building Safety Fund (BSF) for funding to undertake the remedial work to remove and replace the combustible cladding. Whilst the BSF have deemed the application as eligible for funding, no agreement has yet been reached with the BSF on the extent of funding that may eventually be offered. To the extent that the remedial costs are not fully covered by funding from the BSF or other parties, SYC may be required to settle the unfunded obligation. However, the Trustees are unable to measure that obligation with sufficient reliability because: - the total cost of replacing the cladding will not be known until a fully costed tender contract for the work has been obtained (not expected before late 2022), - further building defects may be identified once the cladding has been removed which may need to be remedied under current building regulations, and - the amount of any funding from the BSF or other parties has not yet been established. 27