Charity Registration No. 291489 Company Registration No. 1898188 (England and Wales)
## THE YOU TRUST
(A COMPANY LIMITED BY GUARANTEE)
REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
CHARITY NUMBER 291489 COMPANY NUMBER 01898188
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|CONTENTS|PAGE|
|---|---|
|Trustees Report|3 – 28|
|Report of the Independent Auditors|29 - 33|
|Consolidated Statement of Financial Activities|34|
|Consolidated Balance Sheet|35|
|Consolidated Cash Flow Statement|36|
|Notes to the Financial Statements|37 - 63|
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## TRUSTEES REPORT
- 1.0 INTRODUCTION
- 1.1 The Trustees present their annual directors’ report together with the consolidated financial statements of the charity and its subsidiary My Learning Cloud Limited for the year ending 31 March 2022 which are also prepared to meet the requirements for a Directors’ report and accounts for Companies House.
- 1.2 In this document, the legal name of the YOU Trust is shortened to YOU.
- 1.3 The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Articles of Association, and 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).
- 2.0 OBJECTIVES AND ACTIVITIES
- 2.1 The objectives of the charity as set out in the Articles of Association are:
_(i) To promote social inclusion for the public benefit by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society._
_For the purpose of this clause ‘socially excluded’ means being excluded from society, or parts of society, as a result of one or more of the following factors: unemployment; financial hardship; youth or old age; ill health (physical or mental); substance abuse or dependency including alcohol or drugs; poor educational or skills attainment; relationship and family breakdown; poor housing (that is housing that does not meet basic habitable standards); crime (either as a victim of crime or as an offender rehabilitating into society)._
_(ii) The advancement of education for the public benefit._
- 2.2 The mission statement of YOU is:
“YOU: a family creatively empowering people in their communities”
- 2.3 Our culture and behaviours in pursuit of the mission and objectives are defined by our values that are embedded and role modelled throughout the charity:
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- Person Centred
- People are at the centre of all we do. We work in equal partnership, understanding that people are experts in their own experience and have strengths, skills, and life experiences that they bring to their own situation and to others. Everyone is a unique human being to be valued. We design what we do with people based on what matters to them, ensuring they are in control of their daily lives and their future.
- Trustworthy
- We do what we say we will, when we say we will and how we say we will. We do not let people down. We act with integrity, honesty and openness with everyone we meet.
- Excellence
- We strive to be the best we can be in all that we do, recognising that people deserve nothing less from us.
- Can-do
- We ask ourselves how we can achieve things and not whether we can.
- Innovative
- We are creative thinkers. We listen and build on ideas. We do not block, welcoming fresh perspectives and imagining new possibilities
- 2.4 The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In approving the annual business plan Trustees consider how planned activities will contribute to the aims and objectives they have set.
- 2.5 How does our work change lives?
- People with a learning disability live independent lives under their control.
- Women, men and children surviving domestic abuse and hidden violence take back control of their lives, which are safe and free from fear.
- Young vulnerable people develop to become independent citizens
- People with mental ill health develop new meaning and purpose in their life as they grow beyond the impact of their illness
- People live free of debt, maximising their incomes, with the certainty of a roof over their heads
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- People feel good about their lives, free from stress and worry.
- People feel better connected to their communities to support their health and well-being.
- 2.6 YOU’s work is embedded in our communities within our families of expertise:
- Paragon: Domestic Violence and Abuse
- Young Lives: Working with young homeless people
- Care and Support: Learning Disabilities and Mental Health CQC Registered Care
- Community Wellbeing: whole community health and wellbeing: Social Prescribing, Advice Portsmouth, Dorset Integrated Prevention.
- Counselling services.
- 2.7 Publicly funded services are delivered free of charge to beneficiaries, with charges applying in the case of:
- Accommodation charges (rent – includes weekly licence charges)
- Private purchases of domiciliary care – service user choice for additional care over and above items funded by Adult Services
- Means tested counselling services.
In all services where charges applied, the Trustees ensured that these did not discriminate against those who were poorer in society.
Across publicly funded services, YOU was subject to external monitoring inspection and validation against publicly set standards.
## 3.0 ACTIVITIES IN PURSUIT OF THE CHARITY MISSION AND OBJECTIVES
- 3.1 COVID-19
Throughout this year of the pandemic YOU’s work continued unabated, much of it face to face, working to COVID secure standards and safeguarding staff and beneficiaries from transmission of the virus. Where work could not be undertaken face to face, staff creatively moved to other forms of interaction including telephone and on-line support. The Trustees would like to thank the staff for their dedication and resilience throughout yet another unprecedented year.
PARAGON– DOMESTIC VIOLENCE AND ABUSE (DVA)
- 3.2 As well as grants that are already in place and continue over this financial year, OPCC’s, Councils and the Ministry of Justice sought ideas and bids from
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specialist domestic abuse providers and YOU successfully attracted over £1.5m in grant funds to support those living with abuse. These awards remain testament to the progressive work of the Paragon teams across the geographical areas in which we work.
- 3.3 In Somerset YOU was awarded two further grants. The first was for our Health Advocacy Team with funding provided by Somerset CCG and Somerset Council. The second award was for 3 Independent Domestic Violence Advisors specialising in economic abuse, mental health and/or learning disabilities and children.
- 3.4 In Hampshire YOU received grants to continue our Health Advocacy and Target Hardening work, improving the security of a victim’s home.
- 3.5 Funding was also secured on the Isle of Wight to increase the hours Paragon provides for a Children’s IDVA in their work with schools. Paragon’s partnerships with education were strengthened through funding for Paragon’s Mentors in Violence Programme with schools and a grant was also secured to deliver education workshops to professionals.
- 3.6 In partnership with Aurora New Dawn, YOU has continued to support the National Lottery funded DVA Cars work in Basingstoke Hampshire. DVA staff work with the police when a domestic abuse call is made so that support can be provided to the victim at the time of an incident.
- 3.7 Funding for the West Sussex Connect Domestic Abuse Service pilot working with Safe Lives and West Sussex County Council finished at the end of 2021. Paragon’s work in East and West Sussex continues with OPCC funding for an IDVA, a Children’s IDVA and counselling. The OPCC also provided funding for Paragon to work with the police on its investigation team.
- 3.8 In Dorset YOU continued its domestic abuse work and received a further grant from the Safer Dorset IDVA Grant fund for a Health IDVA. Funding was also achieved for a Stalking Advocate, a stalking clinic and for the Up2U Perpetrator Programme.
- 3.9 YOU’s contract with the Isle of Wight Council for the DVA service was extended until the end of March 2023 and further funding was provided for an additional IDVA and Children’s IDVA and a Health Advocate.
- 3.10 Dragonfly trains people living and working in our communities to be Champions so that they are equipped to receive and respond to disclosures of DVA and empowers communities to support and help those who are affected by DVA. This work continued in 2021/22 but funding ceased at the end of
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March 2022 and so we continue to seek funding to continue this important work.
COUNSELLING
- 3.11 In 2020/21 YOU Counselling secured a new grant from the Office of the Police and Crime Commissioner to join with the Hampshire wide network of specialist counsellors to deliver a Sexual Crime Therapeutic Service in the Southampton, Hampshire and Isle of Wight areas. In 2021/22 YOU received further funding to continue to deliver this service.
- 3.12 Funding was also secured in Somerset and Dorset for Paragon Counselling to provide specialist free counselling for the people we work with.
- 3.13 YOU was also successful in obtaining grants from the Male Rape Support fund for our Space 2 Share Programme and to deliver DVA counselling in Portsmouth
YOUNG LIVES
- 3.14 YOU continued to provide support to young homeless people in Weymouth and Dorchester under a contract with Dorset Council after a tender for the same service was withdrawn by the Council.
CARE AND SUPPPORT
- 3.15 During the year YOU continued to provide two registered care homes for people with mental ill health in Gosport and Portsmouth. Both care homes are registered with the Care Quality Commission and rated “Good”.
- 3.16 YOU continued to deliver care for people with a learning disability at Hazelgrove, New Milton Hampshire, registered with the Care Quality Commission and rated “Good”.
- 3.17 YOU continued to provide a wide range of supported living and support at home for people with a learning disability across Hart and Rushmoor, East Hampshire, Winchester, Fareham and Gosport under contracts with Hampshire County Council. YOU also supported people in Basingstoke, Andover and Fareham and Gosport to undertake a wealth of daytime activities of their choosing through Launchpad, a contract with Hampshire County Council. A further contract with Hampshire County Council provided support and advice for independent living for those who fall short of the adult social
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care eligibility criteria. Much of this work is regulated by the Care Quality Commission and all has the rating of “Good”.
- 3.18 Our Hampshire SAIL, some Launchpad and Community Support work for people with a learning disability was retendered at the start of the year by Hampshire County Council with a new specification as an Enablement and Progression service. YOU was successful in being awarded all the contracts for South East and South West of Hampshire which was the maximum number of contracts any bidder could win. The service provided by YOU covering Winchester was transferred to another provider at the end of November 2021.
- 3.19 In April 2021, Hampshire County Council commenced the process to retender its contracts for Learning Disability Supported Living services which included some of YOU’s current contracts. In December 2021 YOU was awarded 7 contracts for a maximum 10 year period. Between January 2022 and March 2022, when the contracts went live, over 240 staff were warmly welcomed to YOU under TUPE transfers together with 191 new people for whom we now provide support. This included work in new locations in Basingstoke and Eastleigh within 51 new properties across Hampshire. The Board would like to thank the team who worked so hard on these tenders during the year and the staff who undertook the huge project to ensure a seamless transfer for hundreds of people to YOU.
- 3.20 During the same tender process YOU’s contract for Winchester Supported Living services was transferred staff to a new provider on 30 March 2022.
- 3.21 In Portsmouth YOU supported people with a learning disability across five supported living houses and in the community through its floating support work. This work is regulated by the Care Quality Commission and is rated “Good”.
- 3.22 During the year YOU also continued to provide it’s Into Work service for people with a learning disability in Portsmouth.
## COMMUNITY WELL-BEING
- 3.23 YOU continued to provide its Social Prescribing service in Portsmouth, Emsworth and Hayling Island, working with local Primary Care Networks that grant fund this work. Social Prescribing empowers people who have become isolated due to ill health or personal circumstances through a range of nonclinical services.
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- 3.24 In November 2021, after COVID rules relaxed, in the presence of the Deputy Lord Mayor, YOU relaunched Cycling Without Age at the Pyramids in Portsmouth, post COVID. Cycling Without Age has the goal of reducing social isolation and loneliness in Portsmouth and Hayling Island, by giving residents living in isolation or suffering with loneliness, an outlet to securely enjoy the outside spaces of Portsmouth, Southsea and Hayling. This occasion enabled us to once again to raise awareness, increase referrals and thank our 60 strong team of volunteers.
- 3.25 Social Prescribing in Portsmouth led a successful partnership bid to the Arts Council Thriving Coastal Communities fund to help people recover from COVID19 and the impact of lockdown through the power of social prescribing. The partners were Pompey in the Community, Portsmouth Autism Community Forum, University of Portsmouth, Portsmouth Creates, Portsmouth Museums and Final Straw Solent. The award for YOU provided a Volunteer Coordinator for Social Prescribing’s Cycling Without Age initiative. The grant finished at the end of March 2022 and was subject to positive external evaluation.
- 3.26 Advice Portsmouth continued to provide debt, welfare benefit, housing, employment, family, and consumer advice to the people of Portsmouth and was able to move back to face to face work as the impact of the pandemic receded.
- 3.27 For the last 5 years YOU has been the lead partner in the National Lottery funded Circle of Support work in Portsmouth in partnership with the Roberts Centre and Hope Portsmouth. Circle of Support meets people using food banks and works with them to resolve their immediate crisis, creating a circle of support that is there for the person should a crisis occur again. In June 2021 the National Lottery made an award of a further 3 years funding. The focus of this new grant will be resilience and recovery from the impacts of COVID, through Community Circles of Support. YOU will be working with volunteers in foodbanks to upskill them on asking the right questions to help or refer people. Digital support will also be offered via the Portsmouth HIVE Digital Lending Library and from access to Digital Champions.
- 3.28 First Point Dorset Intervention and Prevention Service (IPS) continued to support people to have secure housing, independent lives and positive health and well-being.
THE WORK OF OUR VOLUNTEERS
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- 3.29 During the year, the work of YOU was supported by 121 volunteers and the Trustees would like to record their thanks for the time, dedication and skills they have brought to our work.
MY LEARNING CLOUD LIMITED
- 3.30 My Learning Cloud is the brand name of YOU’s subsidiary company My Learning Cloud Limited. My Learning Cloud continued to operate offering a personalised learning management platform and high-quality interactive e- learning for the health, housing and care sectors.
- 4.0 GROUP STRATEGIC REPORT
- ACHIEVEMENTS AND PERFORMANCE
- 4.1 In the year, YOU worked with 24030 people across Somerset, Sussex, Hampshire, Portsmouth, Isle of Wight, Bournemouth Christchurch and Poole and Dorset. This was some 8,000 more than in the previous year.
## COVID-19
- 4.2 During 2021/22 the management of COVID continued with ongoing risk assessments and guidance issued to all staff as the situation changed. During the latter part of the year work returned to face to face. The Trustees would like to acknowledge and thank the staff who worked face to face throughout, for their dedication and excellent safe practice.
- 4.3 The safety and health and well-being of staff and volunteers were of equal importance to the safety and health and well-being of our beneficiaries throughout the year. Daily senior management COVID response meetings monitored staff physical health. Throughout the year mental health and wellbeing were also monitored with encouragement for open and honest communication and mutual support of team members and resources to support well-being.
## WORK WITH PARTNERS AND BENEFICIARIES
- 4.4 Paragon supported 6,093 adults and children through their domestic abuse work and 512 new Dragonfly Champions were trained in the year
- 4.5 In April 2021, Paragon welcomed the Right Honourable Priti Patel MP to one of YOU’s refuges in Dorset, to learn about our work and the impact of COVID-19 on those experiencing domestic abuse.
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- 4.6 In June 2021 Paragon welcomed Donna Jones the new Police and Crime Commissioner for Hampshire and the Isle of Wight to YOU’s Isle of Wight Domestic Abuse Services.
- 4.7 25 November 2021 marked the start of “Orange the World”, 16 Days of Action, a global campaign to end violence against women and girls around the world. The same date was also White Ribbon Day. The White Ribbon Campaign recognises the positive role that men play in preventing violence against women, based on the understanding that most men are not violent. Paragon led a host of activities and events both in communities and on line. My Learning Cloud worked with Paragon to provide their customers with the opportunity to take part in the Dragonfly Champion Domestic Awareness Workshop and promoted the campaign across its social media channels.
- 4.8 YOU’s registered care homes and domiciliary care services, retained CQC “Good” Ratings across the board
- 4.9 In Hampshire and Portsmouth YOU supported 2,199 people with a learning disability to grow in independence, live well and find work.
- 4.10 In September 2022, YOU began working with people with a learning disability in a newly built supported living service in Waterlooville Hampshire. This was owned by New Era Housing Association and was part of an existing contract with Hampshire County Council.
- 4.11 Trustees would like to congratulate Bo Glew, Disability Support Worker for Portsmouth Floating Support who received the Portsmouth Integrated Learning Disability Service Provider Recognition Award from Portsmouth City Council in August 2021 for his outstanding work with people with a learning disability.
- 4.12 Advice Portsmouth provided 9,461 acts of assistance. This number was double that of the previous year but remained much lower than in all previous years due to COVID. Two new members of the team were welcomed through the Universal Credit Kickstart Scheme. The Kickstart Scheme provided funding to create new jobs for 16 to 24-year-old on Universal Credit who are at risk of long-term unemployment. Their roles within the team are Frontline Advisor Assistant and Marketing Assistant. Two students from the Portsmouth University Law Department also joined us as Volunteer Trainee Student Advisors. They helped and supported the Frontline Advisors with research, drafting documentation including letters and emails together with shadowing the Advisors in appointments, telephone and email enquiries. To enhance their learning, we helped and supported the students with client care, interview skills and written/verbal communication.
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- 4.13 In June 2021, Advice Portsmouth volunteer John Harvey reached the magnificent milestone of writing off £5 million of debt since he became a Debt Relief Order Intermediary. His first DRO was approved on the 3rd August 2016. The Trustees would like acknowledge all of his hard work and dedication especially during COVID.
- 4.14 On 21 March 2022, Advice Portsmouth received the Freedom of the City of Portsmouth to thank staff and volunteers for their support and sacrifices made during COVID 19 pandemic.
- 4.15 YOU’s Social Prescribing services supported 1,142 people to make connections with organisations and community groups.
- 4.16 Cycling Without Age, whose activities were curtailed by the pandemic, provided rides for 81 people in the year.
- 4.17 The Thriving Communities fund enabled YOU to support local, voluntary, community, faith and social enterprise (VCSFSE) projects that brought together partnerships to improve and increase the range and reach of available social prescribing community activities for those most impacted by COVID-19 and health inequalities. 40 volunteers were recruited and trained to become Cycling Without Age pilots through this fund. As a result, Social Prescribing Workers are now able to offer an additional service to the Primary Care Network patients. The National Academy for Social Prescribing commissioned a film celebrating the Thriving Communities Fund and the work that is being done around social prescribing. YOU’s Social Prescribing Service and Cycling Without Age were featured in the film.
- 4.18 Dorset Integrated Prevention Service supported 2,843 people to secure their housing and improve their health and well-being.
- 4.19 Across Dorset YOU helped 108 young homeless people work towards independence through our support at Pottery Lane, Weymouth and Wollaston Road, Dorchester.
- 4.20 YOU’s Counselling Centres assisted 1,719 people including many who had experienced domestic abuse. A new hub, funded by the Hampshire Police and Crime Commissioner opened in Fareham, to become the home of the new YOU STAR Counselling Centre, housing the sexual assault and Hampshire Hub and counselling teams.
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## QUALITY
- 4.21 YOU’s work is subject to internal quality standards which are audited throughout the year and improvement plans put in place where required. Trustees undertake visits to the work of the charity every quarter. During this year the Trustees resolved to adopt a new approach to these visits focussing on culture and values and spending time with beneficiaries, volunteers and staff. Reports of these visits are made to the Quality Assurance Committee. During the year fewer face to face visits took place due to COVID. The Committee also received quality reports at every meeting detailing performance and outcomes from audits with anonymised case studies about the work we do.
- 4.22 In April 2021, the Quality Assurance Committee approved the Positive Behaviour Policy setting out YOU’s aims and approach around supporting people who display behaviours that cause distress. In November 2021 the Committee approved the Least Restrictive Practice Policy which worked in conjunction with the Positive Behaviour Policy.
- 4.23 The Quality Assurance Committee receives a safeguarding report at every meeting which provides the assurance required for Trustees as laid down by the Charity Commission. The Board also has a Safeguarding Champion. The Director for Paragon, Young Lives and Counselling is the Children and Young People’s Safeguarding lead and Adult Safeguarding is led by the Director for Partners for Wellbeing and Living Well.
- 4.24 The Quality Assurance Committee receives a Complaints Report at every meeting setting out the nature of formal complaints received, the resolution and learning.
- 4.25 The YOU Board also hears from people we work with whenever possible and in May 2021 young people living in Dorset attended the Committee to talk to them about life at Pottery Lane, Weymouth and Wollaston Road, Dorchester and the impact of COVID.
- 4.26 In July 2021, The YOU Group Board welcomed the Portsmouth Learning Disability Into Work Team to the meeting to hear about their work, successes and some of the barriers faced in securing employment for people.
- 4.27 One of YOU’s five values is to be person-centred and that practice is embedded throughout all our work. During the year the Board resolved to strengthen our approach further by embedding a culture of co-production across the organisation.
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## PEOPLE AND LEARNING
- 4.28 The success of the charity’s work is underpinned by its commitment to learning and development and this investment continued during the year despite COVID. E learning was undertaken through My Learning Cloud and training that was previously face to face was moved on line wherever possible.
- 4.29 30 people were sponsored to complete a qualification of which 13 were apprentices sponsored by the Apprenticeship Levy. Others were qualifications such as a standard Qualifications and Credit Framework, or more specialist qualifications such as Independent Domestic Violence Advisors (IDVA) and Therapeutic Counselling Supervision. The Trustees would like to congratulate Kate Csordas, our Payroll Manager who won the Fareham College award of Intermediate Apprentice of the Year in September 2021.
- 4.30 This year had seen an increase in the National Living Wage, which continues to present a challenge, as Local Authorities are unable to fully support this increase through additional funding. The charity was able to meet this commitment and maintain differentials with a small pay award for all other staff.
- 4.31 During the year the Group Organisational Development Committee reviewed People and Learning Key Performance Indicators at their meetings and approved new and revised policies. In March 2022, the Group Organisational Development Committee approved a new Domestic Violence Policy which had been co-produced with staff reflecting their lived experience and using YOU’s expertise in this area of work.
- 4.32 The results of a Group Learning and Development Survey were presented to the Group Organisational Development Committee in June 2021, noting that much training had been moved on line to webinars and e learning during COVID.
- 4.33 YOU complies with the requirement for Gender Pay Gap reporting and the report was presented to the Organisational Development Committee and published on our website.
## EQUALITY AND DIVERSITY
- 4.34 YOU is committed to diversity and inclusion in recruitment, employment, and in the work that we undertake with beneficiaries
- 4.35 In July 2021 all staff were asked to complete a survey on equality and diversity across the Group. The results of the 195 responses to this survey were combined with those from YOU’s Well-being Survey and a report presented to
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the Board. As a result, in 2022 YOU’s Staff Conferences will be held on the theme of Celebrating YOU to explore our diversity, acknowledge the impact of lived experience and to work with all staff and volunteers on the gaps that came out of both surveys.
AWARENESS RAISING AND THE LOOK OF YOU
- 4.36 At the start of the year YOU had recently welcomed our first Digital Communications Officer with a remit to increase awareness of our work amongst potential beneficiaries, and to provide news and information for people who may be interested in supporting, working or volunteering with YOU. In June 2021 the Organisational Development Committee approved an External Communication Plan with an overhaul of the website as the first priority. In August 2021 the Committee approved a revised Press and Broadcast Media Policy and in March 2022 a new Group Social Media Policy.
- 4.37 The charity became the YOU Trust in 2009 together with new logo and branding. The charity has changed substantially since then which has been reflected in its new mission statement: YOU, a family creatively empowering people to thrive in their communities. This brought an opportunity to ensure that the charity’s branding matched it’s positive goals. The new branding rolled out from July 2021 with a new YOU website and microsites for Advice Portsmouth, STAR Counselling and Paragon.
- 4.38 You First was, for many years, the brand name for our domestic abuse work. A co-produced review with staff and beneficiaries led to a refreshed purpose to YOU’s domestic abuse work of “Together empowering change”. YOU First as a name no longer matched this purpose and so Paragon was born. A paragon is a perfect diamond and everyone in YOU aspires to excellence. The people we work with are whole and perfect just as they are and the work Paragon does helps each person to believe that and to flourish. The new logo is a pear cut diamond with all the facets reflecting the multi-faceted people that make up our communities and families in YOU.
FUND-RAISING
- 4.39 The charity does not at this stage actively fundraise from the public or run legacy campaigns or undertake similar fundraising activities in its own right or via a third party. The Trustees are, though, pleased to receive unsolicited gifts from those who support our work.
- 4.40 To help make the end of the year a little brighter for the people we work with, we once again, for 2021, launched Hampers of Hope to provide 150 hampers filled with both treats and essentials to individuals and families we support.
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Through donations of goods the following services provided hampers to people in need:
-
- Paragon Dorset
- Paragon West Sussex
- Young People Dorset
- Advice Portsmouth
- Social Prescribing Portsmouth and SE Hampshire
- Support & Enablement, Hampshire
- Dorset First Point
- 4.41 The Trustees would also like to thank to all those who chose to donate funds and goods to the charity during the year. These included:
- Home Instead Taunton and West Somerset
- Asda Farnborough
- Morrisons, Victory Park Portsmouth
- Morrisons, Basingstoke
- Waitrose
- Tesco Gosport
- Hayward Baker Solicitors
- Churchers Solicitors
- Zurich Insurance Ltd
- BMW
- Concordia
- Lightning Fire Services
- Si Digital
- Wardrobe Foundation
- Smile Sleigh
- Good Gym
- Fareham Meon Rotary
- Mandy Ledger
- Heidi McLean
## MY LEARNING CLOUD
- 4.42 My Learning Cloud had 438 corporate customers at the end of March 2022. In April 2021 it launched the first phase of its new Learning Management System Lumis Essentials and in 2022/23 it will launch Lumis Pro. Courseware continued to be revised and expanded. In April 2021, My Learning Cloud was
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awarded the status of Disability Confident Committed Employer. They also retained the Skills for Care endorsement and centre of excellence for another year. The My Learning Cloud team were finalists in the Care Sector Supplier Awards for 2021 in two categories: Recruitment and Training and Response to COVID-19. My Learning Cloud was shortlisted in August 2021 for the Contribution to Workforce Development Award at the Dementia Care Awards.
- 5.0 FINANCIAL REVIEW
- 5.1 The final results for the year showed a net deficit on unrestricted funds of £46k which was a decrease of £775k compared to the previous years surplus of £729k. Key contributing factors to this decrease were pressures experienced from increases to national living wage against a backdrop of reduced funding from local government and grant providers, effects from COVID-19 and profit from My Learning Cloud reduced by £279k to £175k from £454k in the previous year as competition increased in the marketplace.
- 5.2 The majority of the income is still derived from care and support with minimal contributions from donations and other sources.
- 5.3 The main streams of income arise from grants/contracts (paid by Hampshire CC/Portsmouth CC/Dorset CC). Other income sources are domiciliary care charges, registered care charges and rent from service users under managing agent’s agreements with Registered Providers.
- 5.4 The YOU Trust funding towards the SHPS pension deficit was £321k (2021 - £317k). Shortfalls on the deficit reduction payments have been secured against property (included within Freehold Land & Buildings) to the value of £562k (2021 - £562k) by way of a fixed and floating charge.
- 5.5 The Group Finance and Commercial Committee met 5 times during the year to review policies, the proposed budget, review management accounts, forecasts and the annual accounts. The Committee also has a remit for Information Technology and approved several policies in this area during the year.
## RESERVES POLICY
- 5.6 The Reserves Policy was reviewed in October 2021 and a target of £1,000,000 free reserves was agreed being the value of unrestricted reserves, before deducting the pension reserve, less fixed assets. Considering its current working capital arrangements, the Board felt that this was an acceptable level to operate within YOU on a day to day level and meet its
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obligations. Any additional free reserves would be used to further the Trust’s aims and objectives. The actual free reserves figure will rise as operating surpluses are made and fall as assets are purchased.
- 5.7 At the year end the free reserves of the charity were £1,467k. In light of the Pension Deficit, the Trustees do not consider the reserves to be excessive.
## INVESTMENT POLICY
- 5.8 The levels of unrestricted reserves are not significant enough to consider a wide range of investments. The bank account is an interest-bearing account and surplus monies to immediate operating needs are placed on the money market to earn additional interest.
## PLANS FOR THE FUTURE
- 5.9 The Trustees have reviewed their strategic goals against the charity’s mission and resolved that for 22/23 these continue to be:
- To address inequalities and hardships we see in society by drawing on our depth of expertise and knowledge, developing centres of excellence.
- To always design what we do with people, listening to what matters to them.
- For our values and culture to be an underpinning strength to our work and achievement of our mission.
- For YOU to become a household name in the communities in which it works so that people know how we can help them and how they can support the work we do.
- To be an employer of choice, rewarding staff with market median terms and conditions with excellent learning opportunities and career development.
- To achieve a portfolio of contracted, community and commercial services through which we build our financial reserves to mitigate risk in the future.
- My Learning Cloud to grow in profit to deliver sufficient gift aid to the charity to support the ongoing work of the charity.
- 5.10 The strategy for the year 2022/23 will be dominated by two factors, both external in their making. The first is the long-term impact of COVID and recovery and the need to still manage the risk this presents for as long as necessary. The second is the implementation of the large number of learning disability supported living contracts, awarded to YOU by Hampshire County
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Council. This involves the TUPE transfer to YOU of hundreds of staff and our priorities will be their welcome, working within our values and culture and ensuring practice works to our value of excellence. During the year we will be faced once again with a number of our current contracts being retendered which will take time to evaluate and respond. As a much larger charity we will also be reviewing our leadership, management and support structures to ensure that we have the roles and teams in place to build on this success for the future.
- 5.11 The charity will also be faced with a number of challenges during the year including the rises in national living wage, low funding settlements by those who commission our work and the ongoing pension deficit which YOU has been successfully managing for several years.
- 5.12 This strategic report was approved by the Board of YOU at its meeting on 12 October 2022.
- 6.0 REFERENCE AND ADMINISTRATIVE INFORMATION
- 6.1 Registered Charity Name: The YOU Trust (known as YOU on an operating basis)
Charity Number: 291489 Company Number: 1898188 Registered Office: South Wing, Admiral House, 43 High Street, Fareham, Hampshire, PO16 7BQ Auditors: Jones Avens, 4 Dukes Court, Bognor Road, Chichester, PO19 8FX Bankers: Lloyds TSB Bank plc. John's Centre, Hedge End, Southampton, Hampshire, SO30 4QU
## TRUSTEES AND DIRECTORS
- 6.2 The Trustees and officers serving during the year and since the year-end are set out below. Steve Pitt was re-elected as Chair and Caroline SharmanMendoza, Vice Chair in January 2022. Penny Rowlinson stood down as Chair of the Quality Assurance Committee in November 2021 and the Board would like to record their thanks to Penny for her excellent Chairing of that Committee over a number of years. Nick Fennemore resigned from the Board at the AGM and the Board would like to record thanks to Nick for his
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outstanding contribution both as the Vice-Chair and the Chair of the Group Organisational Development Committee.
Directors and Trustees:
- Robyn Allen (appointed August 2021)
- Helen Andrews
- Jonathan Crutchfield
- James Fullarton, Honorary Treasurer and Chair of Group Finance and Commercial Committee
- Emma Giles (appointed August 2021)
- Matt Haynes (appointed August 2021)
- Sara Langston, Chair of Organisational Development Committee
- Trudy Mansfield
- Derek Marshall
- Saif Mohammad (appointed August 2021)
- Marcia Nguyen (appointed August 2021)
- Steve Pitt, Chair of the YOU Group Board
- Anne Ridley
- Penny Rowlinson
- Caroline Sharman-Mendoza, Vice Chair, Chair of Quality Assurance Committee
- Claire Hughes (appointed August 2021, resigned May 2022)
- Nicholas Fennemore (resigned October 2021)
- Graeme Quar (resigned December 2021)
- Tessa Short, Life President. (resigned as Member and Trustee May 2021)
- Christopher Wynn (resigned September 2021)
- 6.3 The directors of the company are also charity Trustees for the purposes of charity law and under the Company's Articles are known as Trustees and collectively as 'The YOU Group Board’.
- 6.4 The Board also appointed their first Ambassador. Gloria Eveleigh has joined YOU as a Paragon Ambassador acting as a champion for our work.
## EXECUTIVE LEADERSHIP TEAM
- 6.5 Senior staff to whom leadership of YOU and My Learning Cloud is delegated:
20
- Group Chief Executive Nicola Youern
- Group Director of Finance Paul Taylor-Toms
- Group Director of People, Culture and Organisational Development
- Jane Cracknell
## YOU
- 6.6 Other senior staff to whom the day to day leadership of YOU is delegated:
- Director, Care, Support and Community Wellbeing Alison Cordwell
- Director, Paragon, Counselling and Young Lives Tonia Redvers Group Head of IT Nigel Groves
## MY LEARNING CLOUD
- 6.7 Other senior staff to whom the day to day leadership of My Learning Cloud is delegated:
- Chief Digital Officer Michael Statham
- Chief Commercial Officer Daisy Liss
## 7.0 STRUCTURE GOVERNANCE AND MANAGEMENT
- 7.1 The YOU Trust is a charitable company limited by guarantee, first incorporated on 21 March 1985 (The Portsmouth Housing Trust) and registered as a charity on 10 April 1985. The company was established under its Memorandum and Articles of Association, which were amended in 1998 (becoming The Southern Focus Trust) and further amended in 2001, 2003, and 2008 (becoming The YOU Trust) and in 2010. Amendments approved in 2010 led to The Articles of Association replacing the Memorandum and Articles of Association in accordance with the Companies Act 2006. In the event of the company being wound up members are required to contribute an amount not exceeding £1.
GENERAL MEETINGS OF THE COMPANY
- 7.2 One General Meeting was held during the year. This was the Annual General Meeting (AGM), held on 6 October 2021.
## RECRUITMENT AND APPOINTMENT OF TRUSTEES
- 7.3 Under the requirements of the Articles of Association, the members of the Board of Trustees are elected to serve until required to retire by rotation. Those who retire under rotation are those who have been longest in office since their last appointment or reappointment. At each AGM, one quarter of
21
the Trustees are subject to retirement by rotation or, if their number is not four or a multiple of four, the number nearest to one quarter shall retire from office.
- 7.4 The Board of Trustees may appoint Trustees between General Meetings, pending full appointment at a General Meeting. The Board of Trustees operate an open recruitment and selection procedure when considering new Trustees for appointment in order to ensure a balanced, skilled, committed and representative board. During the year three Trustees resigned: Graeme Quar, Nicholas Fennemore and Christopher Wynn. Six new Trustees were appointed one of whom Claire Hughes resigned in May 2022.
TRUSTEE RECRUITMENT INDUCTION, LEARNING AND DEVELOPMENT
- 7.5 Trustees are recruited upon reviews of numbers, diversity and skills by the Trust Executive Committee for decision by the Board. Successful recruitment takes place by social media, open advertising and by interested parties approaching the charity. All applicants complete a recruitment process, are interviewed and subject to references and DBS clearance. When recruited, all Trustees sign a copy of the Trustee Code of Conduct and the Trustee Role Profile to signify their agreement to follow the terms within both documents.
- 7.6 In October 2020 the Trustees received an internal report on black and ethnic minority inclusion across YOU. Objectives resulting from the report were included in the Business Plan for 2021/22 which included improving the diversity of the Board through any future recruitment. During the year the Board decided to recruit a number of new Trustees to replace those who had retired and did so through open advertising on social media and job boards welcoming applicants from minority communities and those who have lived experience to add breadth and depth to the Board. The Board were pleased to receive a large number of applications and following an interview process, six new Trustees were recruited and inducted during the autumn.
- 7.7 YOU is passionate about development and encourages everyone to be lifelong learners, in order that they continually possess the right skills for their role. It is important that all Trustees have the skills and knowledge to perform their role on the Board. This learning starts with the comprehensive induction for all Trustees that is carried out in the first six months after appointment. After this time it is important that Trustees maintain their learning for good governance and to keep pace with the ever evolving world surrounding our work. This learning starts with a comprehensive, structured induction programme carried out in the first six months after they are appointed. New trustees are supported by an experienced trustee or ‘buddy’ and they also undertake
22
formal training, meetings with key staff and Board members, visits to our work and a planned reading programme.
- 7.8 During the year the Trustees participated in training including Adult and Young People’s safeguarding, how to undertake visits to YOU’s work, Co-Production and Finance.
- 7.9 Every year the Board undertakes an Experience Review to determine whether it has the skills and knowledge as a whole and through its Committees to determine the strategy of the Charity towards its mission. The Review Survey was itself subject to review by the Organisational Development Committee prior to completion in this year.
ORGANISATIONAL STRUCTURE (TRUST BOARD AND EXECUTIVE LEADERSHIP TEAM)
- 7.10 The YOU Group Board had not less than 14 members during the year. There is no prescribed maximum or fixed number of trustee places on the Trust Board. Throughout the year, there were sufficient Trustees to ensure an effective range of strength and functioning in each committee.
- 7.11 The YOU Group Board sets its own Terms of Reference and Delegation Framework and holds overall responsibility for the strategic and business direction of YOU. It is supported by four committees (supported by Group Executive Leadership Team attendance) and sets the Terms of Reference for each. The four Committees are:
- Group Board Executive Committee
- Quality Assurance Committee
- Group Organisational Development Committee
- Group Finance and Commercial Committee
- Remuneration Committee
The YOU Group Board also has the authority to establish a Working Party to focus on particular issues with terms of reference and reporting structure determined by the Board.
- 7.12 The Board has established a Property Working Party to deal with ad hoc property matters. Its minutes are reviewed by the Finance and Commercial Committee and its terms of reference were reviewed and amended by the Board during the year.
- 7.13 The general function and purpose of each committee is to deal with the detail of matters that fall within its delegated remit and review and manage risk
23
associated with their terms of reference. They also produce recommendations for the YOU Group Board, take decisions within delegated limits on behalf of the Board and provide a written minute to the Board on business conducted.
- 7.14 The Quality Assurance Committee focuses on the quality of YOU’s work with its beneficiaries, safeguarding, performance reporting and reviewing the outcome of trustee visits to YOU’s work.
- 7.15 The Group Organisational Development Committee deals with human resource policy; learning, development and workforce skills; employment law, recruitment matters and marketing. It also focuses on organisational culture and values, develops the annual Trustees experience audit and sets the action plan for improvement for approval by the YOU Group Board.
- 7.16 The Group Finance and Commercial Committee reviews information and communications technology, financial policy and performance, decides on the annual budget, annual audited accounts, reviews management accounts and cash flow; financial and legal risk; insurance and capital and asset strategy.
- 7.17 The YOU Group Board Executive Committee comprises the YOU Group Board Chair, Vice Chair and Chairs of each committee. It plans the work of the next cycle of Board and Committee meetings, forms the interview panel for the recruitment of new Trustees and deals with detailed matters of governance review and good practice.
- 7.18 The Remuneration Committee meets on an ad-hoc basis to determine the salary and terms and conditions of the Group Chief Executive, Group Director of Finance and Group Director of People, Culture and Organisational Development. It is the policy of this committee to follow the pay policy for the organisation in terms of annual salary awards. In setting salaries for any new incumbents bench marking against the charity market rate is used.
- 7.19 The Board and its committees meet five times a year, with the Chair and Vice Chair being voting members should they wish at each Committee. The Group Executive Leadership Team do not have voting rights, but some or all attend the meetings.
- 7.20 A Group Chief Executive is appointed by the Trustees to manage the day to day operations of the charity. To facilitate effective operations the Executive Leadership Team have delegated authority, within terms of delegation approved by the Trustees for operational matters including finance, employment, work with beneficiaries and oversight of the subsidiary company.
24
PAY POLICY FOR SENIOR STAFF
- 7.21 The Board of Directors, referred to as the YOU Group Board who are the charity Trustees, and the senior staff, comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All directors give their time freely and no director received remuneration during the year.
The pay of the Group Executive Leadership Team is reviewed annually by the Remuneration Committee within the pay envelope set by the Board. Pay, terms, and conditions of all employees is negotiated with the recognised trade union: UNISON and the negotiated pay settlement was applied to these roles. During the year the Committee met once to agree a small honorarium for the Group Director of Finance and to decide that the full-time hours of the Group CEO should be increased to 40 from 37 in line with other staff.
## RISK MANAGEMENT
- 7.22 The Trustees have a risk management strategy which comprises:
- an annual review of the principal risks and uncertainties that the charity faces. The Board of My Learning Cloud undertakes its own annual review which is reported to the YOU Group Board. During the year the methodology for the identification and assessment of risk was updated to ensure it met the guidance issued by the Charity Commission. The risk register is reviewed at every Board and Committee meeting throughout the year.
- the establishment of policies, systems and procedures to mitigate those risks identified in the annual reviews; and
- the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
- 7.23 The safety of staff and beneficiaries due to COVID became the principal risk faced during 2021/22 which was managed through effective infection control, safe working practices, early vaccination and excellent communication and health and wellbeing support.
- 7.24 The Increasing pension deficit contributions due to an actuarial valuation and the inability of the charity to meet these costs continued to be another major risk. This is managed through gift aid contributions from the trading subsidiary and the ability to secure concessions if required secured against property. The Group Finance and Commercial Committee monitor this through monthly management accounts and forecasts
25
DELEGATION OF AUTHORITY
- 7.25 The YOU Group Board has agreed to delegate their authority through a number of internal mechanisms, including:
- YOU Group Board Terms of Reference that sets out the powers, decisions it retains, and those delegated to Committees, which are reviewed annually.
- The YOU Group Board approves Terms of Reference for Committees which set out their remit and scope, receives minutes; approves decisions reserved for them;
- A scheme of delegation is in place and was reviewed by the Board during the year. This sets out the respective roles and responsibilities of Trustees and paid officers; defines responsibility/accountability points within the structure for decision making and actions to be undertaken.
- YOU Policies (approved at either the YOU Trust Board or Committee level) deal with a wide range of legal compliance / operational matters and set out responsibilities and duties. Where policy revisions are minor they are delegated to the Group Executive Leadership team to decide.
- The Procurement Policy sets out financial authority limits (approvals and expenditure) and is approved by the Group Finance and Commercial Committee.
## RELATED PARTIES AND COOPERATION WITH OTHER ORGANISATIONS
- 7.26 None of our Trustees receive remuneration. Any connection between a trustee or Group Executive Leadership team member with any related third party must be disclosed to the YOU Group Board. In the current year, no such related party transactions were reported.
- 7.27 The charity’s wholly owned subsidiary My Learning Cloud Ltd was established to provide excellence in learning management and e learning across the health, housing and care sectors. Each year My Learning Cloud gift aids the majority of its profits to the charity. The Board of Directors are appointed and removed by the charity Trustees. The charity Board receives performance reports from the subsidiary Board of Directors at each meeting and the Group Organisational Development Committee and the Group Finance and Commercial Committee have widened their terms of reference to include the scrutiny of the subsidiary company performance.
## STAFF AND VOLUNTEERS WITH DISABILITIES
- 7.28 The YOU Trust is an equal opportunities employer, Disability Confident since October 2017. As part of its open and transparent Recruitment Policy and
26
procedure, the charity displays the Disability Confident logo on all job advertisements and references being a Disability Confident Employer on social media pages to actively encourage applications from people with disabilities. All job vacancies are advertised on a number of recruitment sites and are available in a number of formats. In addition, the charity provides a named contact so applicants can call to directly discuss any support they may require throughout the recruitment process. The YOU Trust offers a variety of flexible options to best meet the requirements of the candidate and reasonable adjustments are offered from the point of being invited along to interview, so the candidate can best demonstrate their full ability, and onwards into their employment as required, based on information shared by the applicant or staff member upon joining the organisation and throughout their time with YOU. YOU also engages with its own in-house ‘Into Work’ disability service for guidance and further support of disabled persons as needed and offer assistance with applying to the Access to Work scheme for eligible recruits. 32 staff/workers/volunteers were recorded as disabled.
- 7.29 YOU conducted an Equality and Diversity Survey in July 2021. The results were reviewed by Trustees of the charity and actions agreed as appropriate. One of the headlines that came out from the survey was that almost 68% of survey respondents stated they had lived experience. As an organisation we are continuing to examine the role of lived experience in our work, and this will be explored further in our upcoming staff conferences. YOU provides recruitment training for all managers, which includes training in supporting applicants with disabilities, as well as coaching training and the charity has a comprehensive induction programme in place for all new starters that includes buddying with existing staff. Dedicated Employee Wellbeing Champions offer support, together with a free and confidential EAP service, and YOU accesses the input of Occupational Health providers to seek advice on support the charity can implement for those with a disability or long-term health condition.
- 8.0 TRUSTEES’ RESPONSIBILITY STATEMENT
- 8.1 The Trustees (who are also directors of The YOU Trust for the purposes of company law) are responsible for preparing the Trustees’ annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
27
- 8.2 Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP 2015 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK 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 charitable company will continue in business.
- 8.3 The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time 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.
- 9.0 DISCLOSURE OF INFORMATION TO AUDITORS
- 9.1 In so far as the Trustees are aware:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
By order of the Board of Trustees
S J Pitt (Chair)
12[th] October 2022
28
## Report of the Independent Auditors to the Members of
## The YOU Trust
## Opinion
We have audited the financial statements of The YOU Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the group statement of financial activities, the group and charity balance sheet, the group and charity statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the group and parent charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the 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 accounts section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the accounts 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 group’s or the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
29
## Report of the Independent Auditors to the Members of
## The YOU Trust
## Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
- the information given in the trustees' Report, which includes the directors’ report and strategic 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 and strategic 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 group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees' 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the 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; or
- the trustees 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 trustees' report and from the requirement to prepare a strategic report.
30
## Report of the Independent Auditors to the Members of
## The YOU Trust
## Responsibilities of trustees
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the parent charitable company or the purpose 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 group’s and the parent 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 group or the parent 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.
## Identification and assessment of irregularities including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We designed procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures were capable of detecting irregularities, including fraud is detailed below:
• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group and charity, including The Companies Act 2006 and The Charities Act 2011;
• we obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework by making appropriate enquiries of management as well as considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
- we made enquiries of those charged with governance and management concerning:
- the risks of fraud;
• instances of non-compliance with laws and regulations or knowledge of actual, suspected, or alleged fraud is documented during the period;
31
## Report of the Independent Auditors to the Members of
## The YOU Trust
• we allocated an engagement team that we considered collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.
Audit response to the risk of irregularities including fraud
Based on the results of our risk assessment, our procedures included, but were not limited to:
- performing analytical procedures to identify any unusual or unexpected relationships.
• evaluating whether the selection and application of accounting policies by the entity that may be indicative of fraudulent financial reporting resulting from management’s effort to manage results.
- assessing whether judgements and assumptions made in determining the accounting estimates set out in note 1j were indicative of potential bias.
- agreeing financial statement disclosures to underlying supporting documentation.
- reading the minutes of meetings of those charged with governance.
- reviewing the correspondence with relevant regulatory bodies.
- testing of journal entries to address the risk of fraud through management override.
• incorporating an element of unpredictability in the selection of the nature, timing, and extent of our audit procedures.
Conclusions regarding the risks of irregularities including fraud
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
We considered our audit was capable of detecting irregularities due to:
- the effectiveness of the entity’s internal controls;
- the nature, timing and extent of audit procedures performed; and the absence of contradictory evidence.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at:
http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
32
## Report of the Independent Auditors to the Members of
## The YOU Trust
## 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 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 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.
Claire Norwood BSc FCA ATII (Senior Statutory Auditor)
24/01/2023 for and on behalf of Jones Avens Limited ......................... Chartered Accountants Statutory Auditor Piper House 4 Dukes Court Bognor Road Chichester West Sussex PO19 8FX
Jones Avens Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006
33
## The YOU Trust
## Consolidated Statement of Financial Activities
## (Incorporating an Income and Expenditure Account) For the Year Ended 31 March 2022
|||Unrestricted|Restricted|Total|Total|
|---|---|---|---|---|---|
|||funds|funds|2022|2021|
|||£'000|£'000|£'000|£'000|
||Notes|||||
|Income from||||||
|Donations and legacies|4|-|32|32|60|
|_Charitable activities_||||||
|Care and Support|5|9,521|1,611|11,132|10,986|
|_Other trading activities_||||||
|Commercial trading operations|6|1,396|-|1,396|1,428|
|Investment income|7|-|-|-|13|
|Other income||-|-|-|1|
|Total||10,917|1,643|12,560|12,488|
|Expenditure on||||||
|_Raising funds_||||||
|Commercial trading operations|6|1,221|-|1,221|974|
|Charitable activities||||||
|Care and Support|8|9,742|1,848|11,590|10,615|
|Total||10,963|1,848|12,811|11,589|
|Net (expenditure)/income||(46)|(205)|(251)|899|
|Actuarial gains/(losses) on|20|1,065|-|1,065|(1,827)|
|defined benefit schemes||||||
|Net movement in funds|21|1,019|(205)|814|(928)|
|Reconciliation of funds||||||
|Total funds brought forward||7|1,425|1,432|2,360|
|Total funds carried forward||1,026|1,220|2,246|1,432|
The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended are derived from continuing activities.
The statement of financial activities also complies with the requirements for and income and expenditure account under the Companies Act 2006.
34
## The YOU Trust Balance Sheet
## For the Year Ended 31 March 2022
|Notes
Fixed assets
Tangible assets
16
Investments
17
Current assets
Debtors
18
Cash at bank and in hand
Creditors
Amounts falling due within one
year
19
Net current assets
Total assets less current liabilities
Provisions for liabilities
20
Net assets
Funds
Unrestricted income funds
21
Pension reserve
General unrestricted funds
Restricted income funds
21
Total funds|Group
2022
£'000
1,617
-
1,617
2,695
2,660
5,355
(2,664)
2,691
4,308
(2,062)
2,246
3,088
(2,062)
1,026
1,220
2,246|Group
2021
£'000
1,531
-
1,531
2,993
3,667
6,660
(3,379)
3,281
4,812
(3,380)
1,432
3,387
(3,380)
7
1,425
1,432||Charity
2022
£'000
1,594
10
1,604
2,488
2,056
4,544
(1,840)
2,704
4,308
(2,062)
2,281
3,088
(2,062)
1,026
1,220
2,246|Charity
2021
£'000
1,503
10
1,513|
|---|---|---|---|---|---|
||||||3,056
2,710|
||||||5,766
(2,467)|
||||||3,299|
||||||4,812
(3,380)|
||||||1,432|
||||||3,387
(3,380)
7
1,425|
|||||||
|||||||
|||||||
||||||6
1,432|
The financial statements were approved by the Board of Trustees on 12[th] October 2022 and were signed on its behalf by:
........................................ Trustee – Steve Pitt The You Trust, registered in England no. 1898188
35
## The YOU Trust
## Statement of Cash Flows and Consolidated Cash Flows For the Year Ended 31 March 2022
|Notes
Cash flows from operating activities
Cash generated from operations
24
Pension interest charge
Net cash provided by (used in) operating activities
Cash flows from investing activities
Interest income
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed assets
Cash provided by (used in) investing activities
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at the beginning of the
reporting period
Total cash at the end of the year|Group
2022
£'000
(709)
(70)
(779)
-
(228)
-
(228)
(1,007)
3,667
2,660|Group
2021
£'000
1,317
(39)
1,278
13
(151)
-
(138)
1,140
2,527
3,667|Charity
2022
£'000
(368)
(70)|Charity
2021
£'000
1,029
(39)|
|---|---|---|---|---|
||||(438)|990|
||||-
(216)
-
(216)
(654)
2,710
2,056|13
(126)
-|
|||||(113)|
|||||877
1,833
2,710|
36
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## 1 Accounting Policies
## a) Basis of preparation
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2018) - (Charities SORP (FRS102)), and the Companies Act 2006.
The You Trust meets the definition of a public benefit entity under FRS102. Assets and Liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. These financial statements are presented in Sterling, the currency of the primary economic environment in which the Group operates, in round thousands.
The Trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern.
## b) Group financial statements
The financial statements consolidate the results of the charity and its wholly owned subsidiary My Learning Cloud Limited on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.
## c) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
37
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executors to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Income received in advanced is deferred until the criteria for income recognition are met.
## d) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
## e) Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Trust's work.
## f) Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
Costs of raising funds comprise the costs of commercial trading and their associated support
Expenditure on charitable activities includes activities undertaken to further the purposes of the charity and their associated support costs.
Other expenditure represents those items not falling into any other heading.
## g) Allocation of support costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the
38
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
Trusts programmes and activities. These costs have been allocated across expenditure on charitable activities. The basis on which support costs have been allocated are set out in note 9.
## h) Operating leases
Rental charges are charged on a straight line basis over the term of the lease.
i) Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
In preparing these financial statements, the directors have made the following judgements:
- Determine whether leases entered into by the group either as a lessor or a lessee are operating or lease or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
- Determine whether there are indicators of impairment of the group’s tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
- Pension Scheme deficit payments – The Charity participates in a multiemployer pension scheme which is in deficit. Provision has been made for the deficit contributions payable and the board have relied upon the information received from the Pensions Trust.
Key Sources of Estimation Uncertainty
Multi employer defined benefit pension scheme
See Note 20 for details of estimates and assumptions regarding the pension scheme.
39
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## j) Tangible fixed assets
Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:
Freehold Property Straight line over 50 years and 10 years Long Leasehold property Straight line over 10 years Short Leasehold property Straight line over the life of the lease Fixtures, fittings and equipment Assets held in service properties Straight line over 3 years Assets held in offices Straight line over 5 years Short term improvements to property Straight line over 10 years Motor Vehicles Straight line over 5 years
## k) Goodwill
Purchased goodwill is capitalised at cost and amortised over its estimated useful economic life on a straight line basis over 5 years.
## l) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid.
## m) 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 from the date of opening of the deposit or similar account.
## n) 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 reliably.
## o) Financial instruments
The trust 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.
p) Pensions
40
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
q) Redundancy and termination payments
Redundancy costs arising from project reviews of staff levels are charged in the year in which employees leave the group.
## r) Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Payments are also made to two multi-employer defined benefit schemes.
For the Social Housing Pension Scheme (SHPS) the cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit
41
## The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
For the Social Housing Growth Scheme (GS), due to the nature of the scheme, it is not possible to identify on a reasonable and consistent basis the share of the underlying assets and liabilities. Therefore, the scheme is accounted for as a defined contribution scheme.
- 2 Legal status of the Trust
- The company is limited by guarantee and does not have a share capital and is a private company registered in England and Wales. All Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
- 3 Financial Performance of the charity
- The consolidated statement of financial activities includes the results of the charity's wholly owned subsidiary My Learning Cloud Limited.
The summary financial performance of the charity alone is:
|Income
Gift aid from subsidiary company
Expenditure on charitable activities
Net (expenditure)/income
Actuarial gains/(losses) on defined benefit pension
schemes
Net movement in funds for the year
Total funds brought forward
Total funds carried forward
Represented by:
Restricted income funds
Unrestricted income funds
Pension reserve|2022
£'000
11,164
175
11,339
11,590
(251)
1,065
814
1,432
2,246
1,220
3,088
(2,062)
2,246|2021
£'000
11,060
454
11,514
10,615
899
(1,827)
(928)
2,360|
|---|---|---|
|||1,432|
|||1,425
3,387
(3,380)
1,432|
42
## The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
|4
Donations and legacies
Small gifts and donations
Legacies|2022
£'000
32
-
32|2021
£'000
60
-|
|---|---|---|
|||60|
The trust benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with FRS102 and the Charities SORP (FRS102), the economic contribution of general volunteers is not recognised in the accounts.
## 5 Charitable Activities
|
Charitable Activities|||
|---|---|---|
|Unrestricted
Restricted
funds
funds
2022
2022
£'000
£'000
Grants receivable for charitable
activities
-
1,611
Fees and charges
9,521
-
9,521
1,611|Total
Funds
2022
£'000
1,611
9,521
11,132|Total
Funds
2021
£'000
1,551
9,435|
|||10,986|
## 6 Other trading activities
The wholly owned trading subsidiary My Learning Cloud Limited is incorporated in the United Kingdom (company number 08191627). The summary financial performance of the subsidiary alone is:
|f the subsidiary alone is:|||
|---|---|---|
|Turnover
Cost of sales and administration costs
Corporation tax credit/(charge)
Net profit
Amount gift aided to the charity
Retained in subsidiary
The assets and liabilities of the subsidiary were:
Fixed Assets
Current assets
Current liabilities
Total net assets
Aggregate share capital and reserves|2022
£'000
1,396
(1,221)
-
175
(175)
-
23
990
(1,003)
10
10|2021
£'000
1,428
(974)
-
454
(454)|
|||-|
|||28
1,416
(1,434)|
|||10|
|||10|
43
## The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
|7
Investment income
Interest received|2022
£'000
-
-|2021
£'000
13|
|---|---|---|
|||13|
All investment income is derived from money held in interest bearing deposit accounts
44
## The YOU Trust
## Notes to the Financial Statements For the Year Ended 31 March 2022
## 8 Charitable Activities
|
Charitable Activities||||
|---|---|---|---|
|Advice &
Health
and
Homeless-
Domestic
Counselling
Recovery
ness
Violence
Disabilities
£'000
£'000
£'000
£'000
£'000
Salary and associated costs
728
782
596
2,323
4,052
Rent
22
76
-
111
31
Other property costs
70
64
17
102
192
Depreciation
2
3
-
2
20
Other costs
36
54
12
63
41
Support costs (see note 9)
139
149
114
444
774
Governance costs (see note 9)
1
1
1
4
7
998
1,129
740
3,049
5,117|Young
People
£'000
334
102
56
-
-
64
1|Total
2022
£'000
8,815
342
501
27
206
1,684
15
11,590|Total
2021
£'000
8,014
345
501
27
257
1,459
12
10,615|
||557|||
Expenditure on charitable activities was £11,590,000 (2021: £10,615,000) of which £9,742,000 was unrestricted (2021: £9,174,000) and £1,848,000 was restricted (2021: £1,441,000).
9 Support Costs
|General
Governance
Support
function
£'000
£'000
Salary and associated costs
1,136
-
Rent
60
-
Other property costs
101
-
Depreciation
96
-
Legal and professional fees
43
-
Other costs
248
15
1,684
15|Total
£'000
Basis of apportionment
1,136
Time
60
Time
101
Time
96
Time
43
Time
263
Time
1,699|
|---|---|
45
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
10 Net income/(expenditure) for the year - Group
||2022|2021|
|---|---|---|
|This is stated after charging:|£'000|£'000|
|Operating leases - land and buildings|153|175|
|Operating leases - other and motor vehicles|2|8|
|Depreciation|142|119|
|(Loss)/Profit on disposal of fixed assets|-|(15)|
|Auditors' remuneration - audit services|13|18|
|Auditors' remuneration - non-audit services|2|2|
11 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
|Salaries and wages
Social security costs
Pension costs
Redundancy costs|2022
£'000
8,079
679
346
3
9,107|2021
£'000
7,508
626
323
20|
|---|---|---|
|||8,477|
The number of employees whose annual emoluments were £60,000 or more were:
|ere:||||
|---|---|---|---|
|||2022|2021|
|||Number|Number|
|£60,000|to £69,999|1|1|
|£80,000|to £89,999|1|1|
The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2021: £nil). 3 (2021: Nil) trustees were reimbursed expenses for charitable purposes during the year of £1,944 (2021: £nil). A further £2,223 (2021: £472) was spent on Trustee Meetings during the year. No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).
The key management personnel of the parent charity, the Trust, comprise the trustees, the Group Chief Executive Officer, the Group Director of Finance and the Group Director of People, Culture and Organisational Development. The total
46
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
employee benefits of the key management personnel of the Trust were £227k (2021: £219k)
## 12 Staff Numbers
The average monthly number of full-time equivalent employees (including casual and part-time staff) during the year were as follows:
|Management and administration
Direct and support staff|2022
Number
47
272
319|2021
Number
36
256|
|---|---|---|
|||292|
## 13 Government Grants
Income from government grants during the year was £126k (2021: £446k). See note 5 for more information and to the amount and source of these grants.
## 14 Corporation Tax
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
47
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## 15 Comparatives for the statement of financial activities
|Unrestricted
Restricted
funds
funds
£'000
£'000
Income from
Donations and legacies
-
60
_Charitable activities_
Care and Support
9,435
1,551
_Other trading activities_
Commercial trading operations
1,428
-
Investment income
13
-
Other income
1
-
Total
10,877
1,611
Expenditure on
_Raising funds_
Commercial trading operations
974
-
_Charitable activities_
Care and Support
9,174
1,441
Total
10,148
1,441
Net (expenditure)/income
729
170
Actuarial (losses)/gains on defined benefit
pension schemes
(1,827)
-
Net movement in funds for the year
(1,098)
170
Reconciliation of funds
Total funds brought forward
1,105
1,255
Total funds carried forward
7
1,425|Total
Funds
£'000
60
10,986
1,428
13
1|
|---|---|
||12,488|
||974
10,615|
||11,589|
||899
(1,827)
(928)
2,360|
||1,432|
48
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## 16 Tangible fixed assets – Group
|Land &
buildings
freehold
£’000
Land &
buildings
short
L/hold
£’000
Land &
buildings
long
L/hold
£’000
Fixtures
fittings &
equipment
£’000
Motor
vehicles
£’000
Cost
At 1 April 2021
1,820
186
79
544
22
Additions
-
-
-
228
-
Disposals
~~-~~
~~-~~
~~-~~
-
~~-~~
At 31 March
2022
1,820
186
79
772
22
Depreciation
At 1 April 2021
532
184
24
358
22
Charge for year
42
2
1
97
-
On disposals
-
-
-
-
-
At 31 March
2022
574
186
25
455
22
Net book value
At 31 March
2022
1,246
-
54
317
-
At 31 March
2021
1,288
2
55
186
-|Total
£’000
2,651
228
~~-~~|
|---|---|
||2,879|
||1,120
142
-|
||1,262|
||1,617|
||1,531|
|||
|||
49
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## 16 Tangible fixed assets
## Tangible fixed assets – Charity
|Land &
buildings
freehold
£’000
Land &
buildings
short
L/hold
£’000
Land &
buildings
long
L/hold
£’000
Fixtures
fittings &
equipment
£’000
Motor
vehicles
£’000
Cost
At 1 April 2021
1,820
186
79
502
22
Additions
-
-
-
216
-
Disposals
~~-~~
~~-~~
~~-~~
~~-~~
~~-~~
At 31 March
2022
1,820
186
79
718
22
Depreciation
At 1 April 2021
532
184
24
344
22
Charge for year
42
2
1
80
-
On disposals
-
-
-
-
-
At 31 March
2022
574
186
25
424
22
Net book value
At 31 March
2022
1,246
-
54
294
-
At 31 March
2021
1,288
2
55
158
-|Total
£’000
2,609
216
~~-~~|
|---|---|
||2,825|
||1,106
125
-|
||1,231|
||1,594|
||1,503|
|||
Included within freehold land and buildings is land with a value of £475,660 (2021:£475,660) which is not depreciated.
Included within Fixtures, fittings and equipment are restricted fixed assets with a value of £2,253 (2021: £10,142).
## 17 Investments
The charity holds 10,000 shares of £1 each in its wholly owned trading subsidiary My Learning Cloud Ltd (registered no. 8191627). These are the only shares allotted, called up and fully paid. The activities and results of this company is summarised in note 6.
50
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## 18 Debtors
|8
Debtors|||||
|---|---|---|---|---|
|Trade Debtors
Other Debtors
Prepayments and accrued
income
Amount due from subsidiary
undertaking
9
Creditors
Trade Creditors
Other Creditors and Accruals
Deferred Income
Taxation and social security costs|Group
2022
£’000
Group
2021
£’000
1,443
1,247
14
88
1,238
1,658
-
-
2,695
2,993
Group
2022
£’000
Group
2021
£’000
275
286
376
343
1,751
2,483
262
267
2,664
3,379|Charity
2022
£’000
1,075
14
1,220
179
2,488
Charity
2022
£’000
263
354
1,054
169
1,840|Charity
2021
£’000
830
88
1,617
521
3,056
Charity
2021
£’000
278
332
1,690
167
2,467|Charity
2021
£’000
830
88
1,617
521|
|||||3,056|
||||||
||||||
19 Creditors
## Deferred Income
Deferred income relates to funding received from various funders that are for a future accounting period
|for a future accounting period|||||
|---|---|---|---|---|
||Group|Group|Charity|Charity|
||2022|2021|2022|2021|
||£’000|£’000|£’000|£’000|
|Brought forward|2,483|1,919|1,690|1,268|
|Amount released to incoming|(2,483)|(1,919)|(1,690)|(1,268)|
|resources|||||
|Amount deferred in year|1,751|2,483|1,054|1,690|
|Carried Forward|1,751|2,483|1,054|1,690|
20 Provisions for liabilities
|0
Provisions for liabilities|||
|---|---|---|
|SHPS
Growth Plan|2022
£’000
2,060
2
2,062|2021
£’000
3,372
8|
|||3,380|
51
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
Defined benefit pension schemes The You Trust – SHPS
The charity participates in the Social Housing Pension Scheme (the Scheme), a multi-employer scheme which provides benefits to some 500 non-associated employers. The Scheme is a defined benefit scheme in the UK.
The Scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The last triennial valuation of the scheme for funding purposes was carried out as at 30 September 2020. This valuation revealed a deficit of £1,560m. A Recovery Plan has been put in place with the aim of removing this deficit by 31 March 2028.
The Scheme is classified as a 'last-man standing arrangement'. Therefore, the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the Scheme. Participating employers are legally required to meet their share of the Scheme deficit on an annuity purchase basis on withdrawal from the Scheme. For financial years ending on or before 28 February 2019, it was not possible for the company to obtain sufficient information to enable it to account for the Scheme as a defined benefit scheme, therefore the company has accounted for the Scheme as a defined contribution scheme.
For financial years ending on or after 31 March 2019, it is possible to obtain sufficient information to enable the company to account for the Scheme as a defined benefit scheme.
For accounting purposes, a valuation of the scheme was carried out with an effective date of 30 September each year. The liability figures from this valuation are rolled forward for accounting year-ends from the following 31 March to 28 February inclusive. The latest accounting valuation was carried out with an effective date of 30 September 2021. The liability figures from this valuation were rolled forward for accounting year-ends from the following 31 March 2022 to February 2023 inclusive.
The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was £86,000 (2021 - £55,000).
52
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
The deficit on the scheme, representing the shortfall on the value of the scheme assets below the present value of the scheme liabilities, is recognised as a liability on the balance sheet to the extent that the employer charity has a legal or constructive obligation for the liability. A corresponding pension reserve is included within total unrestricted funds.
The Charity pays a contribution to help support the deficit on the scheme. The total contribution was £321,120 (2021: £314,820) The cash contribution paid was £321,820 (2021: £314,820). Shortfalls on the deficit reduction payments have been secured against property (included within Freehold Land & Buildings) to the value of £562,434 (2021: £562,434) by way of a fixed and floating charge.
Further contributions are scheduled to continue in the subsequent accounting period.
_Reconciliation of scheme assets and liabilities to assets and liabilities recognised_ The amounts recognised in the balance sheet are as follows:
||2022
2021|
|---|---|
||£
£|
|Fair value of plan assets|10,595,000
9,908,000|
|Present value of defined benefit obligation|(12,655,000)
(13,280,000)|
|Defined benefit pension scheme deficit|(2,060,000)
(3,372,000)|
_Defined benefit obligation_ Changes in the defined benefit obligation are as follows:
|_Defined benefit obligation_
Changes in the defined benefit obligation are as follows:||
|---|---|
||2022|
||£|
|Present value at start of year|13,280,000|
|Expenses|16,000|
|Interest expense|287,000|
|Actuarial losses (gains)|(571,000)|
|Benefits paid and expenses|(357,000)|
|Present value at end of year|12,655,000|
## _Fair value of scheme assets_
Changes in the fair value of scheme assets are as follows:
|_Fair value of scheme assets_
Changes in the fair value of scheme assets are as follows:||
|---|---|
||2022|
||£|
|Fair value at start of year|9,908,000|
|Interest income|217,000|
|Return on plan assets, excluding amounts included in interest||
|income/(expense)|490,000|
|Employer contributions|337,000|
53
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
Benefits paid and expenses (357,000) Fair value at end of year 10,595,000
## _Amounts recognised in the Income and Expenditure Account_
||2022
2021
16,000
16,000
70,000
39,000|
|---|---|
|Expenses||
|Net interest expense||
||86,000
55,000|
|||
_Amounts recognised as gains/(losses) in the Statement of Financial Activities_
||2022
2021
490,000
903,000
571,000
(2,730,000)|
|---|---|
|Experience on plan assets (excluding amounts
recognised as interest cost) – gain/(loss)||
|Effects of changes in the financial assumptions –
gain/(loss)||
|1,061,000
(1,827,000)||
|||
_Analysis of assets_
The major categories of scheme assets are as follows:
||
2022
2021|
|---|---|
|Global Equity|2,033,000
1,579,000|
|Absolute Return|425,000
547,000|
|Distressed Opportunities|379,000
286,000|
|Credit Relative Value|352,000
312,000|
|Alternative Risk Premia|349,000
373,000|
|Fund of Hedge Funds|-
1,000|
|Emerging Markets Debt|308,000
400,000|
|Risk Sharing|349,000
361,000|
|Insurance-Linked Securities|247,000
238,000|
|Property|286,000
206,000|
|Infrastructure|755,000
661,000|
|Private Debt|272,000
236,000|
|Opportunistic Illiquid Credit|356,000
252,000|
|High Yield|91,000
297,000|
|Opportunistic Credit|356,000
272,000|
|Corporate Bond Fund|707,000
585,000|
|Liquid Credit|-
118,000|
|Long Lease Property|273,000
194,000|
|Secured Income|395,000
412,000|
|Liability Driven Investment|2,956,000
2,518,000|
|Currency Hedging|(41,000)
-|
|Net current Assets|29,000
60,000|
|Total Assets|10,595,000
9,908,000|
54
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## _Principal actuarial assumptions_
The principal actuarial assumptions at the balance sheet date are as follows:
||2022|2021|
|---|---|---|
||%|%|
|Discount Rate|2.79|2.19|
|Inflation (RPI)|3.51|3.26|
|Inflation (CPI)|3.16|2.87|
|Salary Growth|4.16|3.87|
|Allowance for commutation of pension for cash at|75% of|75% of|
|retirement|maximum|maximum|
||allowance|allowance|
_Post retirement mortality assumptions_
|Salary Growth
4.16
Allowance for commutation of pension for cash at
retirement
75% of
maximum
allowance
_Post retirement mortality assumptions_|3.87
75% of
maximum
allowance|
|---|---|
||Life|
||expectancy at|
||age 65|
||Years|
|Male retiring in 2021|21.1|
|Female retiring in 2021|23.7|
|Male retiring in 2041|22.4|
|Female retiring in 2041|25.2|
## Social Housing Growth Plan Scheme
The charity participates in the scheme, a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the charity to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30[th] December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a ‘last man standing arrangement’. Therefore, the charity is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet
55
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800m, liabilities of £832m and a deficit of £32m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
|Reconciliation of opening and closing provisions|Reconciliation of opening and closing provisions|31 March|31 March|
|---|---|---|---|
|||2022|2021|
|||£’000|£’000|
|Provision at start of period||8|10|
|Unwinding of the discount factor||-|-|
|Deficit contribution paid||(2)|(2)|
|Impact of change in assumptions and contribution||(4)|-|
|schedule||||
|Provisions at end of period||2|8|
|Income and expenditure impact||31 March 2022|31 March|
||||2021|
|||£'000|£'000|
|Interest expense||-|-|
|Impact of change in assumptions and contribution||(4)|-|
|schedule||||
|Assumptions|31 March 2022|31 March 2021|31 March|
||% per annum|% per annum|2020|
||||% per annum|
|Rate of discount|0.66|0.66|2.53|
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
56
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## 21 Analysis of charitable funds
## Analysis of movements in unrestricted funds
||Balance at|||Other|Balance at|
|---|---|---|---|---|---|
||1 April|Incoming|Resources|recognised|31 March|
||2021|resources|expended|gains/losses|2022|
||£’000|£’000|£’000|£’000|£’000|
|General fund|3,387|10,917|(11,216)|-|3,088|
|Pension|(3,380)|-|253|1,065|(2,062)|
|reserve||||||
||7|10,917|(10,963)|1,065|1,026|
|||||||
||Balance at|||||
||1 April|||Other|Balance at|
||2020|Incoming|Resources|recognised|31 March|
||restated|resources|expended|gains/losses|2021|
||£’000|£’000|£’000|£’000|£’000|
|General fund|2,936|10,877|(10,426)|-|3,387|
|Pension
reserve|(1,831)|-|278|(1,827)|(3,380)|
||1,105|10,877|(10,148)|(1,827)|7|
The pension reserve is a reserve designated by the trustees to recognise the pensions deficit liability on defined benefit schemes.
57
## The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## Analysis of movements in restricted fund
|DV Welfare
Big Lottery
Children In Need
PCC
Community
Government
NASP
Health & Wellbeing
MOJ
SRASAC|Balance
at
1 April
2021
£’000
Incoming
resources
£’000
Resources
expended
£’000
Transfer
£’000
Balance
at
31 March
2022
£’000
181
609
(534)
-
256
206
147
(209)
-
144
1
-
(1)
-
-
4
-
-
-
4
324
139
(218)
-
245
46
126
(104)
-
68
42
-
(42)
-
-
589
(351)
(148)
-
90
515
(216)
-
299
32
458
(376)
-
114
1,425
1,643
(1,848)
-
1,220|
|---|---|
Name of restricted Description, nature and purposes of the fund fund DV Welfare To provide support for victims of Domestic Abuse Big Lottery Support and Counselling services Children in Need To support children affected by Domestic Abuse Community Funds to combat loneliness and isolation in communities MOJ Funds from Ministry of Justice Government Funding in response to COVID-19 NASP To provide Social Prescribing services Health & Wellbeing To provide Health and Wellbeing services SRASAC To provide Rape and Counselling services
58
## The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## Analysis of movements in restricted fund
||Balance|||||
|---|---|---|---|---|---|
||at||||Balance at|
||1 April|Incoming|Resources||31 March|
||2020|resources|expended|Transfer|2021|
||£’000|£’000|£’000|£’000|£’000|
|DV Welfare|83|274|176|-|181|
|Big Lottery|388|2|184|-|206|
|Children In Need|17|-|16|-|1|
|PCC|4|-|-|-|4|
|Community|466|14|156|-|324|
|DHSC|245|(176)|69|-|-|
|Access to Justice|52|4|56|-|-|
|Foundation||||||
|Government|-|449|403|-|46|
|NASP|-|50|8|-|42|
|Health & Wellbeing|-|635|46|-|589|
|SRASAC|-|352|320|-|32|
||1,255|1,604|1,434|-|1,425|
59
## The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## 22 Analysis of group net assets between funds
||Unrestricted|Pension|Restricted||
|---|---|---|---|---|
||funds|Reserve|funds|Total funds|
||31 March|31 March|31 March|31 March|
||2022|2022|2022|2022|
||£’000|£’000|£’000|£’000|
|Tangible fixed assets|1,615|-|2|1,617|
|Cash at bank and in
hand|2,153|-|507|2,660|
|Other net current
assets/(liabilities)|(680)|(2,062)|711|(2,031)|
||3,088|(2,062)|1,220|2,246|
|||Pension|||
||Unrestricted|Reserve|Restricted||
||funds|31|funds|Total funds|
||31 March|March|31 March|31 March|
||2021|2021|2021|2021|
||£’000|£’000|£’000|£’000|
|Tangible fixed assets|1,521|-|10|1,531|
|Cash at bank and in|3,321|-|346|3,667|
|hand|||||
|Other net current|(1,455)|(3,380)|1,069|(3,766)|
|assets/(liabilities)|||||
||3,387|(3,380)|1,425|1,432|
## 23 Related party disclosures
There were no related party transactions for the year ended 31 March 2021 (2020: none).
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.
60
## The YOU Trust Notes to the Financial Statements
## For the Year Ended 31 March 2022
## 24 Reconciliation of net income/(expenditure) to net cash flow from operating activities
|Net movement in funds
Depreciation charge
Pension interest charge
(Profit)/loss on the sale of fixed assets
Difference between pension charge and cash
contributions
Interest received
(Increase)/decrease in debtors
Increase/(decrease) in creditors|Group
2022
£’000
(251)
142
70
-
(253)
-
298
(715)|Group
2021
£’000
89
119
39
15
(278)
(13)
(162)
698
1,317|Charity
2022
£’000
(251)
125
70
-
(253)
-
568
(627)|Charity
2021
£’000
89
109
39
15
(278)
(13)
(303)
561|
|---|---|---|---|---|
||(709)||(368)|1,029|
25 Analysis of changes in net funds
The charity had no debt during the year.
## 26 Operating lease commitments
The following operating lease payments are committed to be paid as follows:
||Other|Other|Land and
buildings|Land and
buildings|
|---|---|---|---|---|
||Group|Group|Group|Group|
||2022|2021|2022|2021|
||£’000|£’000|£’000|£’000|
|Expiring:|||||
|Within one year|1|1|95|72|
|Between one and five years|-|-|29|90|
|In more than five years|-|-|-|-|
||1|1|124|162|
61
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## 27 Financial Instruments
Financial instruments are used that are necessary to facilitate the group’s ordinary trade activities, namely cash, trade payables and receivables; the resultant risks are credit risk and interest rate risk. The group does not use financial derivatives in its management of these risks.
|Carrying amount of financial
assets
Debt instruments measured at
amortised cost
Carrying amount of financial
liabilities
Measured at amortised cost|Group
2022
£'000
Group
2021
£'000
1,457
1,336
537
552|Charity
2022
£'000
1,268
432|Charity
2021
£'000
1,440|
|---|---|---|---|
||||444|
## Credit Risk
The group’s policy in respect of credit risk is to require appropriate credit checks on potential customers before sales are made. At the balance sheet date, the group had the following trade receivables:
||Group|Group|Charity|Charity|
|---|---|---|---|---|
||2022|2021|2022|2021|
||£'000|£'000|£'000|£'000|
|Carrying amount of financial|||||
|assets|||||
|Trade Receivables|1,443|1,247|1,075|830|
62
The YOU Trust Notes to the Financial Statements For the Year Ended 31 March 2022
## Interest Rate Risk
Cash balances are held in short-term deposit accounts, repayable on demand: these attract interest rates which fluctuate in relation to movements in bank base rate. This maintains liquidity and does not commit the group to long-term deposits at fixed rates of interest.
|t fixed rates of interest.|||||
|---|---|---|---|---|
||Group|Group|Charity|Charity|
||2022|2021|2022|2021|
||£'000|£'000|£'000|£'000|
|Financial Assets:|||||
|Cash and Cash Equivalents|||||
|Sterling|2,660|3,667|2,056|2,710|
63