OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-08-31-accounts

Annual Report 2020-21

Annual Report and Financial Statements 2020-21 Year ended 31[st] August 2021

The Federation of London Youth Clubs

47-49 Pitfield Street London N1 6DA Charity Registration: 303324 Company Limited by Guarantee. Registration (England and Wales): 258577

Contents Page

Annual Report 2020-21

Introduction 2
Chair’s welcome 2
Chief Executive’s message 3
Young Advisor’s Message 4
2020-21 at a Glance 5
About London Youth 6
Strategic Report 10
Achievements and Performance 10
Financial review 21
Plans for the future 26
Principal risks and uncertainties 27
Trustees’ Report 29
Structure and governance 29
Management and decision-making 31
Statement of Trustees responsibilities 34
Independent Auditor’s Report 35
Financial Statements 39
Statement of Financial Activities 39
Balance Sheet 40
Cash Flow 41
Notes to the Financial Statements 42
Reference Information 64

London Youth Annual Report and Financial Statements 2020-21

1

Introduction

Chair’s welcome

This Annual Report covers the year to end August 2021 at which point I had been in post as Chair of London Youth for 16 months having taken on the role as the first lockdown arose. As you will read, it has been a hugely challenging time for everyone working for this amazing charity and, indeed, for our growing number of over 600 member organisations who, with our support, do all they can for the young Londoners at the heart of our mission. Despite the lockdowns, we have managed to deliver online programmes to almost 8,000 young people but, unfortunately, our two residential centres were unable to welcome the 20,000 or more young people that they would normally look after.

Since the year end, we started to see our member organisations opening up again, offering that valued safe space for our youngsters to gain confidence and new skills from the Youth Workers that they know and trust from within their local communities and participating in the sports, arts, social action, mental health and employability programmes that London Youth are also able to provide.

Our residential centres at Woodrow and Hindleap, under the excellent stewardship of Martin Curtis, Director of Centres and his team, are once again giving young people the opportunity to enjoy a stay away from home and the chance to participate in a range of activities they may never have experienced before. Indeed, many will have never been outside our capital city to appreciate what the countryside has to offer. These residential stays, which come at a cost of only £150 per young person, can be life changing in impact.

During the year we undertook a review of the committee structure, introducing both a Membership Committee and a Fundraising Working Group, and realigning other committee terms of reference. This enabled the trustees to spend more time with the senior team on important areas of detail which is impossible to do within the time constraints of board meetings. I do want to thank our Trustees as the impact of the pandemic upon the charity has led to many more meetings than usual. We have also worked hard on a comprehensive Race Equality Action Plan through a stakeholder group chaired by trustee, Charline King, and through consultation and engagement with all our teams.

I therefore want to thank our Chief Executive, Rosemary Watt-Wyness, our Senior Team and Youth Advisors, along with all our employees for their amazing hard work, focus and commitment. The impact of the pandemic on our finances led to a significance increase in the workload of our Finance Team led by Danyanne Quemper whose hard work and diligence was therefore greatly appreciated. Around the year end, we were pleased to see Pauline Daniyan appointed as Director of Engagement and to welcome back Zoe Mellis as Director of Programmes. We also welcomed both a new Director of Fundraising, Glen Fendley, and a new Head of Corporate Partnerships, Lucy Castle who, along with our Head of Development, Gareth Price, and the rest of the fundraising team, are now broadening the range of sources of funding that the charity needs for its long-term sustainability.

I would like to thank our Patron, HRH The Earl of Wessex, for the great interest he has shown in our work. It is wonderful to have a Patron who so clearly understands the challenges that young people face. I know that he shares the disappointment we had that the lockdown made it impossible for him, as yet, to visit some of our member organisations but this is certainly in our plans for the future. We also greatly appreciate the support of our President, Sir Kenneth Olisa OBE who, having come from a “tough reality background” himself, is so keen to help us enable young Londoners to be the best that they can be.

As we emerge from the worst of the pandemic, the youth sector in London faces some of the biggest challenges in its history and there has never been a more important time for London Youth to support and advocate for our members. We want to ensure that every young Londoner can access opportunities to grow and learn new skills, building their self-belief and resilience and preparing them to take on the future opportunities and challenges they will face.

Stephen Moss CBE Chair of Trustees

London Youth Annual Report and Financial Statements 2020-21

2

Chief Executive’s message

Anyone reading annual reports for 2020 – 2021 will probably be seeing a lot of the word ‘challenging’. But that is the reflection on the year that leaps to mind. The experience of those challenges, however, has been anything but uniform. For London Youth, the picture was very different for our work in London and at our Outdoor Education centres. For our members, the experience has been mediated by the types of activities they normally run, the types of income they rely on and their reserves. For young people we are acutely aware that the pandemic has created soaring levels of isolation, mental distress and increased inactivity across the board. On top of that young people from poorer backgrounds - and young people of colour especially - have been hard hit by higher levels of illness and bereavement in their families and communities.

The response from our membership has been amazing. We know that youth workers have strived to keep contact going – especially for vulnerable young people. They have adapted and changed provision in line with what has been possible within guidance. And they have been creative – delivering sports sessions online, arts workshops and sometimes going doorstep to doorstep just to speak with lonely young people.

I have also been amazed by what our team has done to support them. We moved as much activity as possible online and as quickly as possible. We continued to deliver support to members simply because of the determination of the team to do so. And remarkably, as you will see in the report, we have trained and supported significantly more youth workers over this period than ever before. People needed somewhere to turn to and the opportunity to connect with others facing similar challenges. And that is what London Youth is there for. Our charitable objects include: to assist the development of young people by promoting, improving and assisting the delivery of efficient and high-quality youth work services. The need and demand for us to play that role has never been more clear.

Our centres, however, were unable to open for most of the year because of covid guidance. We believe passionately in the profound impact that outdoor learning and adventure can have for young people. For young Londoners, many of whom will never have left the city, this connection to the wider, natural environment is especially important. In a normal operating year 20,000 young people would attend our centres. Being closed was a big loss. We were forced to make some members of the team redundant, and, though we were able to bring some back others had moved on and I would like to thank them here for their contributions and understanding. It was an important moment for us when we were able to start operating again, albeit in a limited fashion at first.

I want to recognise how important our journey to becoming an actively anti-racist organisation has been over the year. Young people themselves were pivotal in leading the movement that followed the sense of grief and injustice at the murder of George Floyd. Young Londoners are the most culturally diverse group in the country and we know how strongly structural inequalities impact their lives. It is a central part of our role to offer the programmes that can help young people tackle these barriers and to support their voice in demanding change.

Finally, I would like to thank our chair, Stephen Moss and our trustee board for all their work. Stephen’s contribution in such difficult circumstances has been immense. I would also like to thank our youth board, who have also made a fantastic contribution and our staff team, who have been simply outstanding.

Rosemary Watt-Wyness

Chief Executive

London Youth Annual Report and Financial Statements 2020-21

3

Young Advisor’s Message

I am tired of running, I am breathless, so, they offered me a seat.

As the sequel of an unsteady year sets down on us, the rush again has left us breathless, when we wake up to log in to our online classes, breathless to stock up on food, breathless to go back to school and work after so long – breathless to be. As young people in London, especially in the past year, we have had a lot of I-can't-explain thoughts and I-am-fine-but-not-really days, that we find difficult to talk about - things simply feel, out of our control.

With lockdowns, life paused, we realised, more than ever, that the rush outside of our bedroom window, is a marathon that begins from within our minds. This marathon stretches to our schools, families, friends, services - who tell us to keep running. If we are clothed, housed & fed, there is no other good reason for us to stop, and yet, we feel breathless. During the past years, I have learnt that Youth Clubs and Youth workers, parents, carers & friends who are keen to learn and listen have created stops for us, to pat us on the back, and offer us a seat.

When I first joined London Youth, I was well comfortable inside my comfort zone and knew very little about being a young person in London and what that meant for me or other young people. Especially in the past year, I have learnt to listen and understand the ‘adult’ issues young people have to face – poverty, housing, safety, wellbeing, mental health, gender equality, education opportunities, climate change, and needless to say, a pandemic. Being a young advisor, I know now what London Youth means to me, better than before. It no longer is just a safe space where you can openly discuss about issues that concern you, attend different sessions and make use of the enriching opportunities that speaking from experience, have opened so many doors for me, London Youth has also given me a platform to take action on what I believe.

During the pandemic, I planted a seed of hope. As part of the London Youth microgrant project with the support of London Youth and Shpresa Programme I was given the opportunity to create a stop as a response to the endless marathon that young people embark on, and let it grow strong roots, leaves and flowers. We created The Mental Health Alphabet Project, which aims to explore Mental Health amongst young people, especially in minority & marginalised communities. We want to create an open and evergrowing source of information and support for minority communities, and organizations that work with them. London Youth has given us the chance to run the Green Chair Activity as part of the Mental Health Alphabet Project, and as an extension to the Keeping it Wild legacy, continue to advocate for green spaces & wellbeing.

However, I am aware that a lot of young people don’t have an Allia, a Shaz and a Sophie in your lives, to give you a call ‘just to check how you’re feeling’ and tell you that ‘you should be proud of yourself’. Without the support and care of the Youth Action team at London Youth and youth workers from Shpresa, I wouldn’t have my little bubble of safety, where the rush of the world cannot get to me.

The past year has taught us more than ever, how crucial a support system is, for many young people that is, or can become a Youth Club, a caring youth worker. I am very thankful to all youth workers who have dedicated their time, experience and opened their hearts to us, for young Londoners to feel a little safer, a little happier and a lot more inspired.

Amina Meshnuni Young Advisor

London Youth Annual Report and Financial Statements 2020-21

4

2020-21 at a Glance

Driving impact for youth professionals and youth organisations

6061391602,093  Members in Organisations Networking, training Youth professionals our network holding quality marks & information participated in (Last year 637) (Last year 117) sessions networking & training (Last year 139) (Last year 1,482)

Delivering opportunities for young people

8,434  Total young people supported (Last year 13,870)

5,080  Young people on programmes (Last year 4,772)

11,090  Young people visit days at the centres ( Last year 20,777)

294  Members using programmes or centres (Last year 274)

NB: the numbers listed are for the opportunities created, not necessarily the numbers of individual people or members supported. In some cases there could be, and is, duplication where a young person or youth professional might take part in more than one opportunity. As noted within this report, as part of the new strategy for 2020-25, monitoring, evaluation and learning approaches have evolved; where measurement approach or data collection has changed, a like for like figure for the year before has been used.

London Youth Annual Report and Financial Statements 2020-21

5

About London Youth

We are London Youth. A charity on a mission to improve the lives of young people in London, challenging them to become the best they can be. Young people need opportunities outside school to have fun with their friends, to learn new skills, to make a positive change in their communities and to shape the city they live in.

Our vision and mission

Our vision is that all young Londoners live happy, healthy, safe and fulfilled lives.

Our mission is to support and challenge young people to be the best they can be.

What is special about London Youth is that we do this with – and through – our network of community youth organisations in London and at our two residential centres.

We provide opportunities – in sports, arts, youth action, outdoor learning, employability - for all young people. We focus particularly on those who wouldn’t otherwise have access to the kind of opportunities we offer.

We believe these opportunities are best achieved through a network of strong youth organisations embedded in their communities, building lasting local relationships and delivering excellent youth work.

Because good youth work works .

Our principles

We strive to act in line with our four simple principles:

Our story

London Youth was founded in 1887 because the individual youth organisations of the day knew that they were stronger and could achieve more for young people by working together. Since then, much has changed for young Londoners, but the need to work together is more pressing than ever – and especially given the COVID-19 pandemic.

Since 1887, we have worked with our members to offer young people a wide range of highquality opportunities for learning and fun and to build strong trusted relationships with adults and their peers.

We grew from the Ragged Schools movement of the 19th century, inspired by the simple idea that every young person, irrespective of background and circumstance, has something to gain from somewhere to go, something to do and someone to talk to.

We spent the twentieth century as two separate charities, The Federation of Boys’ Clubs and The Union of Youth Clubs, which worked primarily with girls. In 1999, the two charities merged to create The Federation of London Youth Clubs.

London Youth Annual Report and Financial Statements 2020-21

6

That’s still our legal name, though we prefer London Youth.

We’re proud of our history, helping young people become the best they can be for over 130 years.

London Youth continues to provide a united voice and support for community youth organisations and youth workers across the capital.

Our unique position

How we make change happen

By working in and across these three areas we ain to achieve the change needed to achieve our mission.

London Youth Annual Report and Financial Statements 2020-21

7

Our aims and strategic priorities

Our 2020-25 strategy has the central intention to tackle the effects of increasing need and inequality combined with decreasing funding and support. We want young Londoners to grow up in the world’s best city for young people. In summary, our strategy aims to:

1. Deliver Opportunity: we will seek to deliver opportunity at scale and breadth for young people. We will get better at hearing and understanding the needs of young people and members and more adaptive at turning what we hear into practical applications. We will emphasise the distinctive way our programmes also build capacity.

2. Drive Impact: we will improve our responsiveness and customer service, leveraging digital technology. We will better connect members to support within London Youth plus expertise and support beyond. We will increase our understanding of our impact for members and use this to improve our work.

3. Demand Change: we will be a bold advocate for change, amplifying the voices of young people and youth workers. We will be unapologetic about voicing the needs of London and putting the needs of young Londoners first. We will identify points in the system where we can get best leverage for change and put sustained focus there.

We will do this within the context of a sustainable business model with the financial objective of breaking even after capital expenditure by 2025.

Why our work is needed now more than ever

Our capital city offers unrivalled opportunities when compared to many other regions in the UK. Yet London is far from being economically or socially uniform: its structural and racial inequalities mean these opportunities are out of reach for many young Londoners. This is particularly true for those young people of colour and those living in underfunded outer London Borough “cold spots”[1] . The scale and complexity of the financial, employment and mental health challenges facing young people have only deepened and widened postpandemic. Coupled with a decade of cuts to London’s youth services[2] this presents an even greater onus on us all to sustain those smaller community-based organisations at the heart of London Youth membership.[3]

1. Child poverty remains higher in London than the rest of the UK. This is evidenced by a sharp uptake in food package distribution to children in the capital[4] . Prior to Covid-19 London was the most unequal place to live in the UK and its poverty profile risks a further downturn.[5] The combined impact of the withdrawal of the universal credit uplift, increased fuel-poverty and housing costs will inevitably widen the economic gap for our young people and their families in 2022.

2. London suffered the highest mortality rate for Covid-19. Young children in London

1 London Youth’s own evidence suggests £361 spent per young person in Inner London compared to £67 in outer London

2 Sian Berry’s report on London Youth Sector Service Cuts 2011-

2021www.london.gov.uk/sites/default/files/sian_berry_youth_services_2021_blighted_generation_final.pdf

3 London Youth’s September 2021 membership survey shows over 40% fear closure within a year

4 London’s Poverty Profile 2021, Trust for London, shows over 128% increase in food packages being distributed to London’s children in the year to September 2020. https://www.trustforLondon.org.uk/publications/pp2021/

5 London’s Poverty Profile 2020 , Trust for London, 2020. After housing costs, 27% of Londoners were living in poverty, a figure six percentage points higher than the rest of England https://www.trustforlondon.org.uk/publications/lpp2020

London Youth Annual Report and Financial Statements 2020-21

8

face a mental health emergency and an obesity crisis. Over 40% more Londoners died during the pandemic than the national average[6] . As an underlying health factor, obesity in London eclipses other regions in the UK, and doubly so for young people living in poorer areas. Our young people also face an acute mental health emergency postpandemic. Nearly 80% of young Londoners interviewed earlier this year said their mental health had been negatively affected by the pandemic and periods of lockdown[7] .

3. Unemployment is disproportionately affecting young Londoners – particularly young men of colour. During the pandemic, young people from ethnic minority backgrounds fared significantly worse than their white peers. In the first six months of the pandemic the fall in employment was four times higher for young black people and nearly three times higher for young Asian people.[8] Unemployment for black people aged 16 to 24 increased between October to December 2019 and at the same point in 2020 by 17.1 percentage points (24.5% to 41.6%). This compares to an increase of just 2.3 percentage points (10.1% to 12.4%) for young white people.[9] In London, where the concentration of ethnic minorities is most prevalent, that equates to 33% of young black men being unemployed compared to 15% of white men. The position for young Londoners is now likely to be under greater strain with the falling-away of the furlough scheme. Whilst sectors such as retail and hospitality are now slowly reviving, young Londoners are likely to be affected by a shrinkage in entry-level opportunities in the economy.

4. Serious violence in London, which affects young people. Violence involving young people remains an issue of significant and increasing concern in London, particularly in relation to knife-crime. Following a period of lockdown the number of teenage homicides in London has surged: by December 2021 the figure stood at 30 which, alarmingly, exceeds the record level of 29 homicides in 2008. There are increased risks that these figures could be exacerbated further by a deepening lack of economic opportunity.

5. The youth sector organisations supporting young people with these challenges are still facing further threats to their future. London has, shockingly, lost over a third of its local authority youth centres over the last decade[10] . There are now 733 fewer youth workers supporting them, which will have impacted thousands of young people across the capital who have been denied opportunities to learn and build confidence through trusted relationships, and to enjoy activities in a safe place. At least £35.5 million has been removed from council youth services budgets since 2011/12 and a further £3.4 million is currently planned to be removed in the 2021/22 budget year[11] . Further cuts to youth services are a grim reflection of deepening inequalities for young Londoners in greatest need.

6 As per footnote 4.

7 Mapping Young London: A view into Young Londoners after a year of lockdown - https://trustforlondon.fra1.cdn.digitaloceanspaces.com/media/documents/Mapping_Young_London_ _Partnership_for_Young_London_April_2021.pdf

8 See House of Lords Committee Report on Youth Unemployment, November 2021 https://publications.parliament.uk/pa/ld5802/ldselect/ldythunemp/98/98.pdf

9 National Audit Office, Employment Support: Department for Work and Pensions , p 14, Figure 6 (7 June 2021): https://www.nao.org.uk/wp-content/uploads/2021/06/Employment-support.pdf.

10London’s Youth Service Cuts 2011-2021 https://www.london.gov.uk/sites/default/files/sian_berry_youth_services_2021_blighted_generation_final.pdf 11 As in footnote 10 above

London Youth Annual Report and Financial Statements 2020-21

9

Strategic Report

Achievements and Performance

Introduction

2020-21 saw the continuation of the Covid-19 pandemic which included lockdowns, our members’ diminished ability for face-to-face provision due to regulations on limited number of people coming together, self-isolation, and soaring mental health challenges for young people. Spring brought an awakening of race equality and anti-racism feelings and actions following the murder of George Floyd in the USA, highlighting the institutional and individual racism experienced by people of colour in the UK too, including by young people. You can - read more about our own anti racism journey here.

With these challenges and opportunities, at London Youth we continued our mission to support and challenge young people to be the best they can be with, and through our members, a network of community youth organisations in London, and at our two residential centres[12] .

Embarking on a new strategy aiming to deliver opportunity, drive impact and demand change, we continued to be responsive to key trends such as youth violence, provision in outer London and mental health. This section of the report describes what we did and what we achieved according to the aims of our strategy – with and for young people, youth professionals, youth organisations and the youth sector environment.

In short, through our direct work and through our work with members, young people have been doing better physically and emotionally. They have gained skills, knowledge and networks, and have made contributions in their communities. Youth professionals gained new skills, knowledge and confidence which had positive impact on members’ quality of provision, compliance and governance, connections and funding. We amplified the voices of young people and members in local and national policy making and funding circles, as well as through the media.

Our members and the young people they serve

During 2020-21 we had 606 (last year: 637) youth organisations as members. On average, they rated the support we provided at 8 out of 10, with 89% saying they would recommend LY to another organisation[13] .

As part of the membership renewal process conducted in spring, we collected data from members on the organisation, the young people they work with and the work they do. Below are key statistics about our members[14] :

12 We deliver many of our programmes and other services in partnership with other organisations. A full list is available upon request.

13 223 Youth professionals from 212 members completed our impact survey, 35% of our membership 14 478 members completed the data update, 79% of our membership

London Youth Annual Report and Financial Statements 2020-21

10

About our member organisations

About the young people they work with

Deliver Opportunity: at scale for young people through our programmes and at our outdoor centres

What we did

We deliver opportunities for young people through our members in employability, sports, arts, and youth social action programmes and visits to our Outdoor Centres. During 2020-21 we operated 16 programmes with 256 members in which 8,434 (2020: 13,870) young people have taken part[16,17] . We delivered 9,197 young person visit days at our outdoor centres (2020: 7,898). This compares with 51,290 visit days in last full pre-pandemic year, 2018-19.

----- Start of picture text -----
52% boys and young
73% young people from 11% young people with
men, 47% girls and young
Black and Minority mental and/or physical
women, 20 transgender
Ethnic groups disabilities
young people
Our programmes include a structure for activities for young
Age Range of Programmes'
4% people delivered with and through our member youth
Participants
organisations. We also support and build the capacity of
Under 10 youth professionals and facilitate connections and
22%
17%
11 to 13 collaborations across London (see more about this in
14 to 16 strategic aim: Drive Impact). Members rated our
17 to 19 programmes at 7.98 out of 10, and 89% of the young people
22% were satisfied: almost all who answered our surveys said
35% 20+ they enjoyed taking part in the activities (97%).
----- End of picture text -----

Sport

15 We used a median average because of the wide range of responses, with outliers skewing the data. 16 Throughout the report, the numbers of young people and members taking part may not be unique as some of them take part in different opportunities, with different members or on different programmes. 17 72% of young people provided some demographic data. Other totals exist for different outcomes according to the number of young people responding. Icons CC thenounproject.com

London Youth Annual Report and Financial Statements 2020-21

11

Our sports programmes and one-off events help young people, particularly those that don’t feel sport and being physically active is for them, get active in their community in the way that best works for them and their friends.

The Covid-19 pandemic has continued to have an impact on how member youth organisations deliver their services. Many chose a hybrid approach of virtual delivery during lockdowns and then face-to-face delivery when circumstances allowed while some preferred to not start delivering until it was possible to do so in person. This flexible approach was hugely welcomed by our members.

Across the year, 3,565 (2020: 2,332) young people took part in our sport programmes on regular sessions and 2,417 (2020: 1,277) young people took part in our one-off events, where they experienced a range of types of sport and physical activity. We also supported young people with leadership potential to develop their skills through the delivery of events in service of their community and help them achieve qualifications in the sector.

Youth Action

We are passionate about young people taking action on issues that are important to them and shaping decision-making across London. The youth action programmes support members to guide young people in developing skills and creating their own youth-led projects, as well as making a difference in their youth organisations and wider communities – now and into the future. The programmes revolve around social and environmental issues and last year more than ever included race and racism, violence affecting young people, and nature and the environment, fuelled by global events.

In 2020-21, 525 young people from 60 members took part in our youth action programmes and 230 young people from 47 members took part in our one-off events. The social action projects they developed and delivered included an anti-racism campaign of infographics and art on social media; A podcast series about racism and a YouTube series about politics; an educational video about knife crime and racism; mood boxes with wellbeing resources; work with local Conservation Rangers and an artist to produce a Nature Map of Redbridge, their borough. We also provided one-to-one support and seed funding to members to embed their youth involvement approach.

Employability

We know young people feel at home at youth organisations and that is where they turn to for information, advice and guidance. And this is what we give them, through our members as part of our employability programmes: support to explore what is out there, to identify positive career paths, and to provide opportunities to gain direct work experience – so they can increase their future employment prospects. We recognise barriers they face such as longterm youth unemployment and race while building self-confidence and personal development, as well as encouraging educational attainment.

In 2020-21, 805 young people from 28 members took part in our employability programme and 106 young people took part in our one-off events. Summer grants enabled members to run activities through the summer holiday. The flexible Future Talent programme included structured personal development activities such as visits and trips to build confidence and broaden horizons and money management sessions; Inspiration events that introduced young people to workplaces and role models, such as zoom panels with inspirational speakers and a visit to Parliament; Multiple and meaningful work experiences, many of them ‘in-house’ at the member organisation, due to Covid-19 challenges; one-to-one coaching and mentoring; and employer engagements, manging and brokering relationships.

Mental Health and Arts

All our programmes include a mental health element, including our Arts programme. The new

London Youth Annual Report and Financial Statements 2020-21

12

Good for Girls programme is one focused on improving the mental health and wellbeing of young women and was a new approach for London Youth as it incorporated elements of sports, art, mental health and youth action together.

In 2020-21, 600 young people from 29 members took part in our new Good for Girls programme and 8 young people from 4 members took part in the Arts programme. As well as the arts and sports activities, the young people delivered social action projects such as cooking and healthy eating days, self-defence workshops, a body positive campaign. These activities also incorporated talking circles, to facilitate discussions around mental health and wellbeing.

Youth Board

Our youth board support our work as Young Ambassadors and Young Advisors. The Young Ambassadors are regularly involved in our policy, media engagement and events, representing London Youth and their peers. You can read more about their work as part of the Coming of Age programme, below. Some chose to take on additional responsibility to become Young Advisors. They were regularly involved in decision making and development for London Youth, for example sitting on our Board and Committees, on recruitment panels and in consultations on new programmes.

In 2020-21, the Youth Board comprised of 19 young people aged between 16-25 from our member organisations. They represent young people from different backgrounds who live across London.

Outdoor Centres

Many young people in London have not left the city or have limited opportunity to do so and we believe that being out in the countryside can have a profound and positive effect on their personal and social development. At our two outdoor centres, Hindleap Warren and Woodrow High House, young people get the opportunity to learn and have fun outside in informal settings. This is essential in helping young people develop the skills and confidence they need for the rest of their lives.

The pandemic forced the closure of most aspects of operation at the centres from the first lockdown in March 2020 through to mid-April 2021. By that point, both centres were set up to run family activity sessions for the local communities during the two-week school holiday.

Once schools returned in late April, both centres hosted day visits on site and also delivered on other sites where a school or youth group asked us to come to them. We continued this through to the end of the year (August 2021).

In addition, from June 2021, we restarted a limited residential offering at Hindleap Warren. At Woodrow High House, the residential centre remained closed owing to refurbishment works being underway. We plan to reopen at Woodrow for residential groups from January 2022. In total, we delivered 11,090 (2020: 20,777) young person visit days at our centres. Of those, 519 opportunities were for young people from 25 (2020: 46) of our members – some more than once.

What we achieved

Our programmes focus on three key outcomes - changes we are supporting young people to achieve through our programmes, as detailed below. We also aim to support young people from the most disadvantaged groups, and have been able to achieve this across the board:

London Youth Annual Report and Financial Statements 2020-21

13

Delivery during a pandemic continued to be difficult, with motivation for online sessions declining as schools remained closed and once the weather improved. Staff members being ill and isolating resulted in rescheduling, and the inconsistency was difficult for young people and youth professionals alike – it was hard to keep young people engaged in most programmes.

Some young people however felt that online sessions provided them with something to do during lockdowns and with better accessibility, for example eliminating the need to travel and enabling young people with autism to take part in all Keeping it Wild activities which they would have not done in person. Demand for some programmes (such as sport) remained high. Once face-to-face delivery became an option again, some young people found it overwhelming and youth professionals had worked closely with them to identify what would help them feel supported.

70% of the young people were doing better physically and/or emotionally

Young people on London Youth programmes said they improved their physical activity following their participation and reported reduced inactivity as well as increasing their activities to become more active. “These results are particularly encouraging as it demonstrates that participating in a relatively short programme of activity can have a longerterm impact on some young people”[19] .

Almost all young people on our programmes said they improved their mental health and wellbeing (90%). Our programmes worked to improve young people’s awareness of mental health and helped them find ways to discuss and reach out for help when needed.

Young people said they increased their confidence. Increased confidence is a key outcome across all our activities, and the impact can be seen in our employability inspire sessions that helped young people feel comfortable in situations they may encounter in the workplace.

78% of young people have gained skills, knowledge and networks to identify career (and other) goals and work towards them

Young people said they had improved access to opportunities as they were able to explore and take advantage of unique opportunities.

Half of the young people asked said they had increased aspirations after participating in the Future Talent employability programme. 22% had, for the first time, ideas about what type of job they would like to do and gained a better understanding of different career options.

Young people said they had more or better skills and increased their knowledge. Youth professionals and evaluators commented that our programmes are structured in a way that young people are always learning something new. Skills and knowledge gained included how to write a CV, how to conduct yourself in a workplace, how to work as part of a team, how to take feedback on board and much more.

18 Public Health England report: https://www.slideshare.net/PublicHealthEngland/disabilities-in-children-andyoung-people-in-london

19 London Youth Sports Development Annual Evaluation Report, September 2021

London Youth Annual Report and Financial Statements 2020-21

14

Young people gained qualifications and got into work during or following taking part in our programmes. 29 young people got into work through our Future Talent programme while over 172 young people gained qualifications through sport, youth action and employability programmes.

91% of young people were inspired and enabled to make positive contribution to their communities

Young people felt they had greater voice , reporting they felt involved in shaping the project and that their youth workers were supportive. Many were also more empowered to take leadership roles. This came as an effect of the experience of working in teams and learning new skills. For example, over two-thirds of the Getting Active sport programme felt more confident about being a leader in activities.

Young people felt improved connections to others in the community and reduced their isolation . The pandemic lead to increased feelings of isolation and our programmes helped alleviate this, to an extent, as young people have made new friends. Although restrictions meant face-to-face activities couldn’t always take place, participation in our programmes made many young people feel like they belonged to their local community.

Almost all young people asked had increased their participation in their community through our youth action programmes. The projects made them feel they can make a difference as they saw the positive impact on others. It brought a sense of community to many.

Drive Impact: provide a responsive, relevant and consistent offer that fuels the quality, sustainability and impact of our network

What we did

Our offer to youth professionals and youth organisations aims to improve the quality of provision and the resilience of our members, and to create a collective. We do this through training, networks, the Quality Mark, grants, EAP (employee assistance programme), leadership development programmes and direct support. During 2020-21, over 350 members took advantage of our offer. We delivered 149 training sessions, 11 network sessions and supported over 230 members on their Quality Mark journey. Our work had to move to being delivered online during the year, and whilst participants recognised that this had significant benefits such as the ability to access them, many would like to return to face-to-face delivery.

Our training workshops were attended by over 1,000 youth professionals. The sessions aim to support members’ organisational development in topics such as safeguarding, health and safety, fundraising, and strategy planning; and to improve their youth work practice, with session on topics such as youth involvement, targeted work with young people, and mental health training. This year we developed specialised training on sexual violence and evaluation and research as part of funded projects. In addition, specific programme training was delivered to 56 members.

We also delivered the Rise Up leadership programme, providing training, coaching and mentorship to 82 youth professionals with lived experience of violence as part of our strategic focus on tackling youth violence. On average, 89% of participants rated our training highly immediately after the training. Across the membership, training received a rate of 8.46 out of 10.

London Youth Annual Report and Financial Statements 2020-21

15

Our networks were attended by 402 members and others in the youth sector to learn and be supported by peers and 86% rated our networks highly. Across the membership, it received a rate of 7.64 out of 10. Each network focus on a different topic: employability, mental health and wellbeing, impact, creativity and culture, and tackling youth violence. In 2020-21 we conducted a review which led us to redefine the aims of the networks:

Members liked the “drop-in” nature of the networks and how it enables them to offer the authentic voices of the young people they champion and strengthens their voice within the community. Members of our tackling youth violence network wanted to see it change and become more participatory and action-oriented. As a result, we are designing a more holistic and practitioner-led approach.

One of our key hallmarks is the Quality Mark, a quality assurance framework helping members improve their policies, procedures and practice. Across the membership, it received a rate of 7.43 out of 10. Almost a quarter of our membership, 144 members (2020: 117), have been holding or working last year on a Bronze, Silver or Gold Quality Mark (QM). The Bronze QM was reviewed and updated in 2020-21 to become more standardised, streamlined and effective.

The direct support we provide to our members via emails, phone calls and visits is one of the most valued aspect of our provision. Across the membership, direct support received a rate of 8.26 out of 10. Recently members told us that the on demand, bespoke and personalised, responsive and flexible support is key to their work and they appreciate the reciprocal relationship we have with them.

What we achieved

Quality: Improved quality of youth work provision

Two-thirds of our members said that their engagement with London Youth had positively affected their quality of provision (65%).

85% of the youth professionals who have engaged with us agreed that they increased their practice skills and knowledge. 307 youth professionals were qualified as Designated Safeguarding Leads (DSL) or in Mental Health First Aid. Through our training offer, 89% of youth professionals said they gained knowledge, 90% increased their confidence and 84% said they intend to apply what they learned in their job.

London Youth Annual Report and Financial Statements 2020-21

16

The ability to take part in free training had been significant to members who would otherwise not be able to afford it. In addition, members said that our programmes enable them to experience new themes and ways of provision for young people that they would not be able to embark on otherwise. This includes small and larger grants received, which also led to being able to work with more young people – so members can expand their programmes in a sustainable way.

Resilience: Strengthened resilience of youth professionals and sustainability of youth organisations

71% of our members said that their engagement with London Youth had positively affected their compliance and governance. 58% said it did the same for their funding and fundraising. 86% of the youth professionals who have engaged with us agreed they now feel they are equipped to deal with challenges in their work. They reported they have gained a better understanding of the context they are operating in, and/or of the youth sector.

Members said operating according to industry standard through the Quality Mark and other resources, had a big impact on organisational development, led to professionalisation and helped move the organisation forward especially around structures, formalisation of policies and procedures, and governance.

Collective: Enhanced connections and collaboration within the sector

Over half of our members (52%) said their engagement with London Youth had positively affected their organisation’s connection with other youth organisations and youth professionals.

92% of the youth professionals who have engaged with us agreed that they have relevant and useful peer-learning opportunities through London Youth. Our members thought that the connections they make through our networks, with guest speakers and between each other and with the London Youth staff, were most valuable.

Provide relevant high-quality support to youth professionals and members

Members highly valued London Youth’s bespoke, personalised and responsive support – particularly with the challenges posted by Covid-19. 82% thought our offer is relevant to their needs. They felt that the relationship is reciprocal – that we listen to their needs and our offer changes accordingly, and that we function as critical friends to each other. They liked the kudos that being a London Youth member brings, especially around access to funding.

Demand change for young people and a better

environment for youth organisations

With our new strategy we are focussed on being a bold advocate on issues that concern young people and youth provision, with the aim of achieving real change through practical action. We are building on our strong relationships to influence the policy, funding and social environment affecting young people and the youth sector, ensuring we are informed by our members as we do so. In 2020-21, the Covid-19 restrictions and context meant priorities and plans had to change.

London Youth Annual Report and Financial Statements 2020-21

17

Despite this, we were able to transform our flagship event at Youth Work Week to an online extravaganza with over 30 contributions from our members. This was an opportunity to recognise the incredible contribution that community youth organisations continue to make to London. At the event our new Royal Patron HRH The Earl of Wessex presented the Prince Phillip Award to London Funders, for their role in the emergency funding response for the - - - - - sector. (https://londonyouth.org/news and updates/youth work week 2020/)

We launched our Coming of Age Campaign with Young Ambassadors from our Youth Board - - - - (https://londonyouth.org/about us/our people/youth board/young ambassadors). Through a programme of training and youth action they have a chance to share the perspectives, ideas and lived experiences of young people in London. During the year they created a campaign to raise awareness of Covid-19 safety measures amongst young people and helped create a campaign around International Women’s Day with Burberry. They also contributed to London Youth’s activities and various blog series about Mental Health during lockdown, Black History Month and Youth Work Week.

Our public exposure through press coverage diversified and increased as we were mentioned in publications like Vogue and GQ through our partnership with Burberry. As well as coverage on TV (such as BBC London and ITV London News) and in national papers (such as The Guardian, Evening Standard and the Mirror). The death of our former patron, HRH Duke of Edinburgh, also garnered significant media coverage to which we were able to put forward spokespersons including one of our members, Hillingdon Slipstreamers and former youth board members.

On the policy and public affairs front, we cemented collaborations and partnerships to make our voice heard better. Together with Partnership for Young London (PYL) we have been coordinating the Young Londoners Coalition, a network of infrastructure voices in the statutory and voluntary sector across London. Our aim is to work together to ensure the London youth sector can speak with one voice to London and national policy makers and other partners on its capacity, needs and concerns.

We also collaborated with PYL, the Centre for Youth Impact (CYI) and others on the Data Hub, a survey aiming to collect information about youth work organisations and their provisions to support policy demands.

Continuing involvement with policy and decision makers, our Chair and CEO met with Youth Minister Baroness Diana Barran, the Department of Media, Culture and Sport (DMCS) and Department of Work and Pensions. Through our policy briefings to MPs, London Youth was referenced in a House of Commons Westminster Hall debate on knife crime.

We continue to support multiple sector governance and working groups to amplify the voice of our members and of young people in London, such as the Violence Reduction Unit (VRU) Partnership Reference Group, Greater London Authority (GLA) Young Londoners Fund Advisory Group, and NYA Advisory Board.

We responded, either independently or within coalitions, to public consultations such as the Lords Covid Committee’s Life Beyond Covid Inquiry and the DCMS Youth Policy Review, and our CEO gave evidence to the London Assembly’s Health committee on the impact of COVID-19 on young people’s mental health and wellbeing. As a result, we were referenced in three external reports including PYL’s Mapping Young Londoners, Sian Berry’s London’s Lost Youth Services and London Assembly Health Committee.

London Youth Annual Report and Financial Statements 2020-21

18

Best we can be

Anti-racism journey

In July 2020, London Youth committed to becoming an anti-racist organisation and in September 2021 published our principles which underpins our commitment to anti-racism (https://londonyouth.org/about-us/our-commitment-to-anti-racism/).

We know that racism is endemic in our society and this means that we need to identify and be conscious of how we contribute to perpetuating racism and inequality within our own organisation. We also know that many young people face the significant challenge of racism and the direct and indirect negative impact racism has on their opportunities to live happy, healthy, safe and fulfilled lives. This challenge is a key driver of our commitment to antiracism as an organisation and as individuals.

During the year our work on anti-racism focused internally, where discussions and consultations took place across the organisation, including with the Board and our Youth Board. We developed a SWOT analysis and a Theory of Change and established an accountability mechanism - the Race Equality Actions Stakeholder Group, led by our trustee (and member) Charline King.

The key impacts we want to achieve are shared understanding, building trust, human resources processes, proactive engagement and embedding of anti-racism throughout everything we do at London Youth.

In August 2021 the Race Equality Action Plan, developed with the support of an external consultant, was affirmed. It is based on the following pillars:

In the next year, the teams will be embedding race equality and anti-racism into their objectives and work plans. We will also be focused on the external engagement and impact of our work.

Digital

Our ambition is to make more and better use of digital technology and communications in all aspects of our work, in order to be more accessible and responsive to the needs of our members, deliver safely and increase efficiency within existing resources. In 2020-21, we worked on developing a digital strategy with a clear digital vision. Identifying three priority audience groups (members, prospective donors and outdoor centres customers), the strategy rests on better understanding these audiences and being flexible, responsive, and empathetic to their individual needs. Through personalisation, automation, and real-time data, we will create stronger digital relationships with all audiences, grow income and revenue, amplify our impact and support a larger member network without significantly increasing costs.

London Youth Annual Report and Financial Statements 2020-21

19

We also launched multiple website improvements, focussing on usability, accessibility and responsiveness; and developed a prioritised project list with CRM development as key priority.

Monitoring, Evaluation & Learning

In order to monitor and evaluate our progress in achieving the organisational new strategy aims, in 2020-21 we focused on setting up monitoring, evaluation and learning (MEL) frameworks. Theories of Change and Outcomes Frameworks were developed for both Membership and Programme Delivery teams, highlighting the key outcomes detailed in the sections above according to key target audience groups: young people, youth professionals and youth organisations.

Practically, we set up tools and processes that enabled us to:

Setting up these frameworks and tools made it possible to have an overview of the impact our provision is making on young people and youth professionals as well as gain an understanding of the impact our work is making for our members.

London Youth Annual Report and Financial Statements 2020-21

20

Financial review

Financial report

The Financial Strategy agreed by the charity in 2020 sought to achieve a break-even position of income over expenditure (before depreciation) by financial year end 2023, with deficits in the intervening years to be funded from general reserve.

In recognition of the ongoing impact of the pandemic on visitor revenue at London Youth’s two Outdoor Centres based in Buckinghamshire and East Sussex, budget reprofiling agreed in November 2020 reduced the overall income target from £6.578M to £3.634M and overall expenditure target from £7.535M to £6.312M for the financial year 2020-21. The window to achieve the Financial Strategy was extended to financial year end 2025, with close monitoring to ensure that the charity maintained a baseline of free reserves, comprising 3-6 months’ expenditure in line with the Reserves Policy adopted by the Trustees and estimated to be £4M by 31 August 2025.

The Trustees also realised their ambition to invest in key fundraising activities in 2020-21, led by a new Director of Fundraising at the charity and including a new Head of Corporate Partnerships role. This approach was complemented by a renewed focus on digital during the period; both in terms of membership reach and digital fundraising.

This renewed focus paid off in 2020-21, with Donations and legacies Income totalling £0.698M (2020: £0.263M); reflecting the generosity of key individual supporters and exceeding pre-pandemic values of £0.362M (2019).

London Youth continued its strong track record of attracting programme funds in 2020-21 which the charity uses to deliver a range of membership opportunities to help meet the needs of young people in London. Once again, the generosity and timely response of key trust and foundation supporters and corporate partners helped to ensure that London Youth continued to meet these needs which became particularly acute during 2020-21 as a result of the ongoing impact of the pandemic; delivering £4.2M to the charity in year (2020: £4.2M), of which £2.9M (2020: £2.9M) related to programme funding.

Additional grants of £0.289M in 2020-21 related to government CJRS support (2020: £0.320M) as the charity sought to minimise the impact of the pandemic through utilisation of the government’s furlough scheme.

The year 2019-20 saw the value of the charity’s investments plummeting by c.15% as markets reacted negatively to the global pandemic. Continuing the recovery into the financial year 2020-21, London Youth’s investment portfolio realised gains of £1.053M by 31 August 2021 (2020: £0.162M), netting a further £0.165M (2020: £0.2M) in income for the charity.

Following a strong pre-pandemic performance in 2018-19 which took the charity and its trading subsidiary to within £30k of its General Fund break-even target, the financial performance to 31 August 2021 continued to be dominated by the impact of the pandemic – especially in terms of earned income at the charity’s outdoor residential Centres. However, although visitor restrictions continued to impact at the Centres to July 2021, Earned Income at the Centres exceeded the revised budget target of £0.238M at £0.412M (2020: £1.352M).

Trading income was similarly affected; realising only £0.038M (2020: £0.72M) of anticipated income of £0.85M in year.

London Youth Annual Report and Financial Statements 2020-21

21

Overall Income for the period totalled £5.3M (2020: £5.1M: when adjusted to net out profit on sale of assets in year of £1.4M); exceeding the revised budgeted income target of £3.6M; this represented 147% of budgeted income in 2020-21.

On the Expenditure side, £3.5M (2020: £2.4M) was spent on restricted programme delivery in year; notably £0.544M on HeadStart Action (2020: £0.179M); £0.450M on Burberry Foundation support for members (2020: £nil); £0.421M on Getting Active (2020: £0.451M); £0.375M Rise Up (2020: £0.043M) and £0.350M Good for Girls (2020: £nil). Included in this spend was a total of £1.567M in direct grants to members (2020: £0.562M) as London Youth continued to support members and young people during the ongoing effects of the pandemic.

The increased activity at project level was supported by an increase of 5.5% in overall budgeted Expenditure at £6.7M (2020: £6M) and reflected a lower cost base as a result of actions taken to mitigate the estimated £2.5M loss of Earned Income at the Centres; notably in areas such as Staff costs, £3M (2020: £3M) - achieved through a combination of furlough and redundancies – and in other areas such as Catering & Venue costs, £0.068M (2020: £363k).

While the overall surplus for the year to 31 August 2020 was £0.734M; this figure, when adjusted for proceeds of property sale, showed a deficit of £0.686M. The deficit for year ending 2020-21 shows an improvement on this figure; the overall deficit being £0.230M; represented by a deficit of (£1.284M) less investment gains of £1.053M in year, which figure exceeds the pre-pandemic deficit of £0.330M as at 31 August 2019.

Investment performance

London Youth held an investment portfolio valued at £8.393M as at 31 August 2021 (2020: £6.4M), approximately 70% of which is managed by Sarasin & Partners, £5.967M (2020: £5.256M), with the remainder, £2.414M (2020: £1.144M) being managed by CCLA – London Youth having transferred a further £1M to this portfolio in April 2021.

The portfolio managed by Sarasin & Partners includes the sum of £1.635M (2020: £1.463M) which is held as a permanent endowment (the “Girls Fund”). The permanent endowment was acquired on 1st February 1999 following the merger with the London Union of Youth Clubs. The value of these investments - £891,991 – at the fund transfer date was classified as frozen permanent capital; the remaining value of the investments being classified as unapplied total return.

London Youth’s objective is to achieve a level of capital and income growth that over the long term at least maintains the real value of the assets and the Investment Policy is reviewed annually by the Finance Committee of the Board of Trustees. In 2019 the existing portfolios were moved to a total return basis, with the aim of allowing the charity to maximise total returns - at minimum to maintain the real value of the investment assets - while making available an appropriate proportion of the total return for expenditure each year. The distribution level is currently set at 3.5% per annum for each portfolio and has been kept under constant review to ensure no erosion of capital.

Total income from the investment portfolio for the year ending 31 August 2020 was £0.165M (2020: £0.200M), with net gains for the period at £1,053M (2020: £0.162M).

London Youth Annual Report and Financial Statements 2020-21

22

Reserves policy and position

The Trustees seek to retain a prudent level of reserves from unrestricted income.

London Youth holds financial reserves to be applied to future activities in a number of categories:

London Youth is funded in a number of different ways, including significant grants and donations from a variety of sources that support our London programmes, together with earned income from activities and residentials at the charity’s two Outdoor Centres based in Buckinghamshire and East Sussex. These diverse income streams mean we are not reliant on a single source of funding and are unlikely to see all of our income withdrawn at the same time.

Trustees normally base their reserves policy on the identified needs to:

London Youth believes that its unrestricted reserves should be between 3-6 months’ expenditure, excluding capital appeal expenditure. This means that the charity would normally seek to hold unrestricted free reserves of between £1.6M and £3.2M.

The Trustees continue to monitor the ongoing impact of the pandemic in terms of the longerterm depletion of Reserves. Based on longer-term budget forecasts, it is estimated that the equivalent six-month reserve figure will be £4M as at 31 August 2025, which has been adopted by the Trustees as the longer-term Reserve target, pending any significant shifts in expenditure patterns during that time.

The level of ‘free’ reserves as at year end available to fund the Reserves target - that is the total reserve figure less the value of the Permanent Endowment, £1.6M (2020: £1.5M); Restricted Programme funds, £0.603M (2020: £1.129M) and Fixed Asset reserve, £6.6M (2020: £6.9M) - is £7.941M (2020: £7.574M).

This figure is consistent with the longer-term financial strategy to provide support from ‘free’ reserves of £0.800M in the period from 2020-25 to support the development of a fundraising strategy and to continue to support digital adaptation and development.

The Trustees therefore believe that the current level of ‘free’ reserves stand at a satisfactory level in light of the adopted policy and ongoing organisational requirements.

London Youth Annual Report and Financial Statements 2020-21

23

Going concern

Despite the healthy level of free reserves, being £7.941M (2020: £7.574M) as at year end 31 August 2021, the Trustees have recognised the need to provide ongoing support to revenue budgets to mitigate the impact on Earned Income at the Centres as a result of the Covid-19 pandemic. Further, the Trustees recognise that the revenue budget ‘break even’ objective will not now be achieved, as intended, by the financial year ending 31 August 2023 and that it is unlikely that this target will be achieved before 31 August 2025.

During the year, the charity took a number of steps to protect the level of its reserves; utilising government support where at all possible and implementing cost-saving measures which moved beyond prior year mitigating measures, such as the non-filling of vacancies. These measures involved not only extending the scope of the furlough scheme to a wider group of staff, but also implementing a number of outdoor centre staff (10) as well as introducing other staff rationalisation measures, such as shared resourcing.

This involved a number of separate consultations with staff; resulting in agreement that a total of (12) roles were to be made redundant at the Centres; of which (2) were non-fillable vacancies and (1) was achieved on a voluntary basis. In addition, a number of hours reductions were achieved on a voluntary basis to allow a limited operation of the Leisure Centre, based at Woodrow High House in Buckinghamshire where government guidance allowed. The extension of the CJRS until end of March 2021 and subsequently to 30 September 2021 prevented further redundancies being implemented and, as the Centres began to prepare to re-open to visitors in mid-2021, a number of staff who had been made redundant were re-hired.

The Trustees have taken additional steps, post year end, to ensure that the group continues to operate on a going concern basis, including reprofiling of budgets for 2021-22 to take account of emerging challenges and opportunities, as government continues to respond and provide guidance to limit impact of the Covid-19 threat. In particular, the Trustees will review the potential impact of any new government guidance to schools issued by the Department of Education, in an attempt to contain new variants of the virus.

While the Trustees recognise the adverse impact of these challenges, they also recognise the potential for increased demand for outdoor education opportunities and took the decision, in 2021, to refurbish the property at Woodrow High House, to provide an enhanced experience which will compete with best-in-class. London Youth will continue to work with its existing funding partners and develop new partnerships – focusing on corporate partnerships in particular - to continue to provide support for membership networks; including ongoing digital adaptation to support the development of hybrid models for programme delivery.

Having regard to the foregoing and, with ongoing measures in place to assess the emerging Covid-landscape, the Board of Trustees believe there are sufficient resources available to manage the current operational risk, including the risk to the charity’s reserves. The Board therefore considers there is a reasonable expectation that London Youth has adequate resources to continue in operational existence for at least a year from the date of signing this Trustees’ Report and Accounts and for the foreseeable future.

For the reasons outlined above, the Board of Trustees continues to adopt the going concern basis of accounting in preparing the accounts.

London Youth Annual Report and Financial Statements 2020-21

24

Principal funding sources in 2020-21

We thank all our supporters to whom we are deeply grateful. Every donation makes a difference and is sincerely appreciated. Principal sources of funding in 2020-21 were as follows:

Individuals

Eric and Virginia Campus Guy Davison Sir David Knox Roger Merton, MBE Poppy and Charlie Scott-Plummer

Dr David Cox Roger Jefcoate CBE DL Ian Lundberg Stephen Moss, CBE David and Lucy Wernick

Livery Companies

The Chartered Accountants Company The Worshipful Company of Tallow Chandlers

The Girdlers’ Company

Trusts and Foundations

29th May 1961 Charitable Trust Alchemy Foundation Broughton Family Charitable Trust Burberry Foundation Chalk Cliff Trust City Bridge Trust East Grinstead Memorial Estate EF & MG Hall Charitable Trust Ernest Kleinwort Charitable Trust Feathers Association Fisher Charitable Foundation Fonthill Foundation Guild of Freemen City of London Ian Askew Charitable Trust Jack Petchey Foundation Jimmy Dixon Charitable Trust John Lyon's Charity Joseph Levy Endowment Trust

Julia and Hans Rausing Charitable Trust London Marathon Charitable Trust London Wildlife Trust Lynn Foundation Mainhouse Charitable Trust Maurice Marks Charitable Trust Mobbs Memorial Trust Morrison’s Foundation Paul Hamlyn Foundation The Phillips Family Charitable Trust Redfern Charity Trust Rotherwick Foundation Shanly Foundation Sir Jeremiah Coleman Gift Trust Sulgrave Trust Thomas J Horne Memorial Trust Trust for London Tudor Foundation

Companies and organisations

Benevity BNP Paribas British Fencing Burberry Clifford Chance CVC Capital Partners DCMS GLA Heritage Lottery Fund JP Morgan Kinleigh Folkard and Hayward

London Sport MoPAC M&G plc Community Fund National Lottery Community Fund RDAS Sport England UBS Violence Reduction Unit Visa Wernick Group

In-kind support

Jones Lang LaSalle (JLL)

London Youth Annual Report and Financial Statements 2020-21

25

Plans for the future

Priorities for 2021-22

We will continue the implementation of core long-term strategies adapted for the postCovid landscape; including Centres, Finance, Fundraising, Membership and Programmes, as outlined in the 2020-25 Strategy, priorities for the coming year include:

London Youth Annual Report and Financial Statements 2020-21

26

Principal risks and uncertainties

London Youth maintains a risk register to identify the principal risks to which the charity is exposed and confirm that systems are in place to manage and mitigate those risks. The risk register if reviewed on a quarterly basis by the Board and its Committees and by the Senior and Leadership Teams on an ongoing basis to identify new risk and appropriate strategies to manage all relevant risks.

The key risks facing the organisation are:

Safety

London Youth continues to monitor and manage activities that may result in a child, young person or adult being seriously injured or killed whilst taking part in a London Youth activity – especially at the Outdoor Centres, where activities are specifically designed to provide challenges to children and young people in a way that is safe and encourages them to participate.

The culture at London Youth and at the Outdoor Centres in particular, is one of ‘safety first’ which is promoted by senior staff throughout the organisation, with expert input provided by the Head of Safety & Safeguarding. Specifically,

Regular health and safety reviews, coupled with accident and incident reporting - including investigation and review at senior level, as appropriate - enables London Youth to continually improve standards and manage risk.

Safeguarding

London Youth’s staff and volunteers are vetted at recruitment stage, including DBS checks to the level appropriate for their roles, and all staff attend safeguarding training within three months of joining the organisation and then every three years. London Youth has established a cross-organisational Safety and Safeguarding Group who meet regularly to discuss, review and respond to new threats, such as online threats to children and young people as many programmes adapted to virtual environments in 2020-21.

London Youth Annual Report and Financial Statements 2020-21

27

Member engagement

Through a successful engagement strategy, particularly in the post-Covid period from mid-March, London Youth successfully grew its membership network in 2019-20 to over 630 members, which was supported by a policy to waive membership fees in that period. Despite concerns regarding the re-introduction of fees in 2020-21, the attrition rate for membership renewals was 5%, with a total of 606 members re-joining in 2021; down from a total of 637 in 2020. Further, 2020-21 demonstrated that there was a higher membership engagement rate in 2020-21, with 294 (49%) of members actively engaged in London Youth programmes, compared to 274 (43%) in 2019-20. London Youth continues to develop innovative ways to increase its capacity to engage with existing and new members, which will be supported in 2021-22 by digital and CRM infrastructure.

Financial sustainability

The greatest financial risk currently posed to the financial sustainability of the charity is the ongoing existential threat and uncertainty posed by the Covid-19 pandemic and subsequent impact on Earned Income at the Centres; London Youth’s primary source of unrestricted income.

The charity has demonstrated its capacity to be alert to this risk and to act appropriately through a range of risk mitigation measures such as its ability to secure emergency funding, coupled with restructuring of its cost base. Ongoing reviews and budget reprofiling will deliver a range of further mitigating actions, as required, to enable the charity to remain within its 5-year reserves target of between £2M and £4M; representing between three and six months’ of expenditure.

The Trustees are focused on this risk and the need to ensure that successful programme funding doesn’t add additional strain to the ‘ask’ on reserves due to the need to provide additional unfunded overhead capacity to support programme delivery. London Youth continues to focus on the need to budget appropriately for programme delivery in terms of direct and support costs required to successfully deliver a wide range of activities.

Funding risk

Having demonstrated considerable expertise in raising restricted programme funds by developing strong multi-year funding relationships with trusts, foundations and institutional funders, London Youth appointed a new Director of Fundraising in late 2020 to enable the charity to focus on its longer-term sustainability by leveraging new income sources – including corporate, high net worth individuals and unrestricted income. This approach has been complemented by additional investment in digital approaches to improve the charity’s membership reach and online funding capacity.

London Youth has already seen an uplift in Donations and Legacy income in 2020-21, which rose from £0.263M in 2020 to £0.697M in 2021. The charity will continue to focus on diversifying its income streams, with a particular focus on generating new sources of unrestricted income, supported by a fit-for-purpose digital infrastructure to support relationship management and stewardship.

London Youth Annual Report and Financial Statements 2020-21

28

Trustees’ Report

Structure and governance

Governance

Legal structure

The Federation of London Youth Clubs, operating under the name London Youth, is constituted as a company limited by guarantee registered in England and Wales (number 258577) and registered as a charity with the Charity Commission (number 303324).

The charity was founded in 1887 as The London Federation of Boys’ Clubs and incorporated on 22[nd] August 1931 as a charitable company limited by guarantee. It is governed by its Articles of Association which were last amended on 21[st] March 2018.

Subsidiary undertakings

The charity’s wholly owned trading subsidiary, London Youth Company Trading Ltd (company number 2977936, registered address 47-49 Pitfield Street, London N1 6DA), carries out non-charitable trading activities for the charity – primarily swimming lessons and sports hall hire for non-youth groups. Details are included in Note 4 to the accounts.

Charitable objects

The charitable objects are to give young people access to a range of learning opportunities and challenging experiences which promote their personal and social development. “Young people” are defined in the governing documents as aged up to 25 years old.

Our activities to achieve this are:

  1. To assist the development of young people by promoting, improving and assisting the delivery of efficient and high-quality youth work services.

  2. To relieve poverty by assisting young people in need and by encouraging young people to make use of educational and recreational facilities so that their lives may be improved.

  3. To give young people access to a range of learning opportunities and challenging experiences which promote their personal, social and spiritual development.

These are embedded in our vision and reflected in our strategy and activities.

Public Benefit Statement

The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’.

London Youth Annual Report and Financial Statements 2020-21

29

London Youth’s Board of Trustees regularly monitors and reviews the success of the organisation in meeting its key objectives. The Trustees confirm, in the light of the guidance, that these aims fully meet the public benefit test and that all the activities of the charity, described in the Strategic Report, are undertaken in pursuit of these aims.

This report demonstrates how London Youth’s strategy and activities during the year have helped young people through key performance metrics and reported outcomes. London Youth has also reiterated its commitment to continuing to deliver public benefit in the years ahead through its 2020-25 Strategy.

Appointment, induction and training of Trustees and Honorary Officers

The Board of Trustees (who are all also company Directors) comprised 13 at 31[st] August 2021 (2020: 14). Trustees that served during the year are detailed on page 64.

Trustees are elected by Members at the Annual General Meeting following nomination either by the Board of Trustees or by five or more members and retire in accordance with the charity's Articles of Association which allows a maximum service of 9 years. Honorary Officers comprising the Chair, Deputy Chair and Treasurer are elected annually.

At the 2021 AGM, having served a term of 9 years, both the Chair, Keith Ward, Honorary Treasurer stood down, being ineligible for re-election in accordance with the Articles and Morenike Ajayi was elected in this honorary role.

Trustees are provided with a Trustee Handbook and have an induction on first joining London Youth, including meetings with senior staff and training as needed thereafter. The Trustee Board has an annual Away Day with senior staff to consider its strategic plans and improve governance at the beginning of the annual planning process. Both new and existing Trustees are asked to adhere to the Trustee Code of Conduct. All Trustees at London Youth are volunteers and receive no benefits from the charity. Any expenses reclaimed are paid in accordance with our Trustee Expenses Policy.

The Board regularly considers improvements to governance and performance. During the year under review, a small working Group, led by the Chair of the Nominations Committee, Simon Turek, convened to consider a committee structure appropriate to support the charity to deliver upon its 2020-25 Strategy. Following this review, a new committee structure was approved by the Board in November 2020, which included the existing Assurance and Finance Committees; renamed the Nominations Committee to include the title ‘ Governance and People’ ; renamed the DARE Youth Board to London Youth’s Youth Board ; restructured to involve maximum participation of young people in decision-making at London Youth. A new Membership Committee and Fundraising Working Group were also set up as well as a designed Working Group to support the charity’s Race Equality work; chaired by Charline King, Trustee. In February 2021, a Fundraising Working Group was convened to support the new Director of Fundraising in the development of a fundraising strategy for the organisation.

The Trustees have implemented the Charity Governance Code for Large Charities, as appropriate, and will apply the enhancements published in December 2020 to the Code which focus on Principle 3: Integrity ; and Principle 6: Diversity, now called Equality, Diversity and Inclusion as a means to building on past high standards achieved and ongoing commitment to continual improvement in these areas.

London Youth Annual Report and Financial Statements 2020-21

30

Management and decisionmaking

Management

Executive management is delegated to the Chief Executive and Senior Team, comprising departmental executive Directors. Senior staff comprising the Senior and Leadership Teams (‘Heads of’); the latter holding budgetary responsibility across a range of cost centres that sit within relevant departments, including responsibility for monthly management reporting and the annual planning and budgeting cycle.

Trustees meet quarterly at formal Board and sub-committee meetings at which they review management accounts with forecast out-turn, the risk register and progress against planned deliverables. Trustees and staff interact regularly and, specifically: the Chief Executive meets regularly with the Chair; the Director of Finance and Resources with the Honorary Treasurer; and the Head of Safety and Safeguarding with the Chair of the Assurance Committee.

Involving young people in decision-making

London Youth actively provides young Londoners with opportunities to develop their engagement and leadership potential. Following a review of the long-term objectives in context of London Youth’s 2020-25 Strategy, DARE London will now be referred to as the “Youth Board”; with strengthened processes to involve young people in decision-making in three distinct ways:

Grant making policy

London Youth’s policy is to make grants to organisations working with young people in London with similar objects to that of the charity. Before making a grant, London Youth conducts a due diligence review, including an appraisal of the project, governance structures and the grantee’s capacity to deliver; proportionate to the size of the grant. This process ensures that there is a good strategic fit between the objectives of London Youth and the partner organisation, and that the project provides an effective way of bringing about the desired impact. Bigger grants are usually disbursed in instalments to ensure that deliverables are being achieved in line with the relevant grant agreement.

Grants expenditure is accounted for in full as liabilities when approved and notified to grantees, as there is a valid expectation that they would receive the grant as offered and accepted.

London Youth Annual Report and Financial Statements 2020-21

31

Nonetheless, London Youth staff monitor and evaluate progress throughout the period of the grant and provide support, as required, to help project deliverables remain on track. London Youth reserves the right to discontinue grant funding if not satisfied that the grant is being managed according to the grant agreement.

Fundraising

London Youth grew its fundraising team in 2020-21; achieving a long-held ambition to resource the charity to continue to work with existing funders but to take active steps to diversify its unrestricted income streams, especially in light of the financial risk posed by ongoing Covid-uncertainty.

London Youth does not use third party fundraising organisations, nor carry out telephone or direct mail fundraising.

London Youth also enters into a limited number of commercial agreements in order to benefit from product sales. As London Youth does not undertake public fundraising, the charity does not have specific policies in place to protect vulnerable people and members of the public, beyond the organisational safety and safeguarding procedures. However, London Youth adheres to the Code of Fundraising Practice and is registered with the Fundraising Regulator. No complaints have been received by the charity regarding fundraising activities carried out by the charity or someone on behalf of the charity during the period under review.

Our people

Volunteers

The Trustee Board acknowledges and greatly appreciates the contribution that volunteers make to the charity with their enthusiasm and dedication.

Staff

London Youth had, on average, a paid workforce of 84 full time equivalent staff (2020: 97), who are based in London and at our two centres upon whom the charity relies on professionalism and commitment to deliver on its charitable objectives. The charity is strongly committed to supporting diversity and inclusion and, in 2021, provided fresh impetus to its race equality work.

London Youth is committed to the wellbeing of staff and the charity continued to deliver a wide range of wellbeing supports to support to home-working environments but also to staff on furlough and those being made redundant in late 2020. Regular health and wellbeing checks are carried out on a 1:1 basis and the charity implemented a wide range of resources and tools to support employee wellbeing.

London Youth Annual Report and Financial Statements 2020-21

32

Remuneration policy

London Youth takes an approach to pay and reward that enables the charity to recruit and retain the skilled staff required to deliver on its charitable objectives. A performance management culture enables staff and volunteers to understand and deliver our strategy, while being accountable for their role in doing so. London Youth is a diverse organisation that competes in different job markets for varied skills and experience.

The pay policy at London Youth is structured to reflect this and is guided by the following principles:

The pay and conditions of the Chief Executive and Senior team are set in accordance with this approach and agreed by the Board of Trustees. Remuneration of key management personnel is set by the Trustees in line with affordability and the charitable sector to ensure remuneration is fair and not out of line with that generally paid for similar roles.

This practice is in line with the National Council for Voluntary Organisations’ executive pay guidance that, ‘the overall goal of a charity’s pay policy should be to offer fair pay to attract and keep appropriately-qualified staff to lead, manage, support and/or deliver the charity’s aims’.

Key management personnel comprise the Chief Executive, Director of Engagement, Director of Programmes, Director of Residential Centres, Director of Fundraising and Director of Finance & Resources. See note 12 for total remuneration of these roles.

London Youth Annual Report and Financial Statements 2020-21

33

Statement of Trustees responsibilities

The Trustees (who are also Directors of London Youth for the purposes of company law) are responsible for preparing the Trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The Report of the Trustees, which incorporates the requirements of the Strategic Report and the Directors’ Report as set out in the Companies Act 2006 (strategic Report and Directors’ Report) Regulations 2013, was approved by the Board and signed on its behalf by:

Stephen Moss, Chair: 12 April 2022

London Youth Annual Report and Financial Statements 2020-21

34

Independent Auditor’s Report

Independent Auditor’s Report to the Members of The Federation of London Youth Clubs

Opinion

We have audited the financial statements of The Federation of London Youth Clubs (the ‘charitable company’) and its subsidiary (the ‘Group’) for the year ended 31 August 2021 which comprise the Consolidated Statement of Financial Activities, Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Reserves, the Consolidated and Charitable Company Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group or the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

London Youth Annual Report and Financial Statements 2020-21

35

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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 34 the trustees (who are also the directors of The Federation of London Youth Clubs for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

London Youth Annual Report and Financial Statements 2020-21

36

In preparing the financial statements, the trustees are responsible for assessing the group’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 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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the Group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and the Charities SORP. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the Group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the Group for fraud. The laws and regulations we considered in this context for the UK operations were requirements imposed by the Charity Commission, health and safety legislation, data protection legislation and employment law.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management.

London Youth Annual Report and Financial Statements 2020-21

37

Our audit procedures to respond to these risks included enquiries of management and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence, designing audit procedures over the timing of income and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to The Federation of London Youth Clubs’ 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 Federation of London Youth Clubs’ members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Federation of London Youth Clubs and The Federation of London Youth Clubs’ members as a body, for our audit work, for this report, or for the opinions we have formed.

Julia Poulter

Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor 55 Ludgate Hill London EC4M 7JW

Date: 13 April 2022

London Youth Annual Report and Financial Statements 2020-21

38

Financial Statements

Statement of Financial Activities

Consolidated Statement of Financial Activities Including Income and Expenditure year to 31 August 2021

Group
Notes
Income
Donations and legacies
2

Charitable activities
. Development
. Opportunity
. Voice
. Best We Can Be

Other Grant Income
3
Other trading activities
4

Investments
5

Profit on the sale of assets
6

Total income
Expenditure on:
Raising funds
7

Charitable activities
8
. Development
. Opportunity
. Voice
. Best We Can Be

Other
9

Total expenditure
Net gains / (losses) on investments

Net (expenditure) / income

Transfers between funds
Net movement in funds

Reconciliation of funds
Total funds brought forward
Total funds carried forward
17		 Unrestricted
Funds

£		 Restricted
Funds
£		 Permanent
endowment
£
Total

2021
£		 Total
2020
£


339,411
70,691
585,939
924,251
7,555
289,217
43,390
123,744
-


358,141
1,122,443
1,414,231

18,424

-

-

-

-

-

-

-

-

-

-

-
-
44,305
-

697,552
1,193,134
2,000,170
942,675
7,555

289,217
43,390

168,049
-

263,290

490,483
3,697,071

52,271

10,000

320,329

82,374

213,972
1,447,609
2,384,198 2,913,239
44,305		 5,341,742 6,577,399


238,481

12,974
1,963,482
80,677
810,433
9,210


-

970,180
2,496,465

43,424

-

-

-

-

-

-

-

-

238,481
983,154
4,459,947
124,101
810,433
9,210

198,994

581,894
5,029,128

103,042

57,485

34,977
3,115,257 3,510,069
-		 6,625,326 6,005,520


876,934
145,878

(71,192)


-
(596,830)

120,000
176,638

220,943

(48,808)

1,053,573

(230,011)

-

162,028

733,907

-
74,686
14,470,755

 (476,830)
1,129,571
172,135
1,462,671
(230,011)
17,062,997
733,907
16,329,090
14,545,441
652,741		 1,634,806 16,832,986 17,062,997

The above results are from continuing activities and there are no gains and losses except as stated above. Notes 1 to 22 form part of these accounts.

London Youth Annual Report and Financial Statements 2020-21

39

Balance Sheet

Company and Group Balance Sheet as at 31st August 2021 Company Number 0258577

Notes
Fixed assets
Tangible fixed assets
13
Investments
14


Current assets
Debtors
15
Cash at bank and in hand

Creditors:
falling due within one year
16
Net current assets

Total net assets

Represented by:
Funds and reserves
17

Permanent endowment funds
Restricted funds
Unrestricted funds
. General funds
. Designated funds
 Group
2021
£
6,604,666
8,392,965
14,997,631
512,197
2,264,417
2,776,614
(941,259)
1,835,355
16,832,986
1,634,806
652,741
3,250,787
11,294,652
16,832,986		 Charity
2021
£
6,604,666
8,392,967
14,997,633
543,804
2,224,048
2,767,852
(932,499)
1,835,353

16,832,986
1,634,806
652,741
3,250,787
11,294,652
16,832,986		 Group
2020
£
6,896,712
6,411,716
13,308,428
914,221
4,056,843
4,971,064
(1,216,494)
3,754,569
17,062,997
1,462,671
1,129,571
3,500,729
10,970,026
17,062,997		 Charity
2020
£
6,896,712
6,411,718
13,308,430
946,281
4,003,760
4,950,041
(1,195,473)
3,754,567
17,062,997

1,462,671

1,129,571

3,500,729
10,970,026
17,062,997

Total income and gains for the charity was £6,395,315 and total expenditure was £6,625,326, giving a net deficit of (£230,011).

Approved by the Trustees and signed on their behalf by:

Stephen Moss Chair

Morenike Ajayi Treasurer

On 12 April 2022

Notes 1 to 22 form part of these accounts.

London Youth Annual Report and Financial Statements 2020-21

40

Cash Flow

Group Cash Flow Statement for the year ended 31st August 2021

Statement of cash flows
Notes
Cash inflow from operating activities:
Net cash provided by operating activities
A

Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of investments
Purchase of property, plant and equipment
Proceeds from the sale of assets (net of fees)
Net cash (used in) investing activities

Change in cash and cash equivalents in the reporting year

Cash and cash equivalents at the beginning of the reporting year
Cash and cash equivalents at the end of the reporting year
B
Notes to the cash flow statement for the year to 31 August 2021
A - Reconciliation of net movement in funds to net cash flow from
operating activities
Net movement in funds
Adjustments for:
Net (expenditure)/ income for the reporting period
Depreciation charge
Profit from sale of fixed assets
(Gains)/losses on investments
Dividends, interest and rents from investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities
B - Analysis of cash and cash equivalents
Cash at bank and in hand
Cash held by investment manager
Total cash and cash equivalents		 2021
£
(999,696)
165,218
(1,000,000)
(30,272)
80,551
(784,503)
(1,784,198)
4,097,567
2,313,369
2021
£
(230,011)
322,319
-
(1,053,573)
(165,218)
402,023
(275,236)
(999,696)
2021
£
2,264,417
48,952
2,313,369		 2020
£
(1,257,729)
200,544
-
(146,496)
1,753,633
1,807,681
549,952
3,547,615
4,097,567
2020
£
733,907
314,238
(1,447,609)
(162,028)
(200,544)
(296,304)
(199,390)
(1,257,729)
2020
£
4,056,843
40,724
4,097,567

Notes 1 to 22 form part of these accounts

London Youth Annual Report and Financial Statements 2020-21

41

Notes to the Financial Statements

Notes to the Financial Statements as at 31st August 2021

1. Policies and information

a) Charity information

The charity is an incorporated charity (company number: 00258577 and registered charity number: 303324) domiciled in the UK. The address of the charity is 47-49 Pitfield Street, London, N1 6DA.

b) Basis of preparation

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK generally Accepted Practice. In preparing the Financial Statements for the year ended 2020-21, London Youth has availed of the exemption from presenting its unconsolidated Profit and Loss account under Section 408 of the Companies Act, 2006.

London Youth meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

London Youth’s subsidiary, London Youth Trading Company Limited, commenced trading in August 2015, and its accounts are consolidated on a line by line basis into these accounts for the year ended 31 August 2021.

c) Preparation of the accounts on a going concern

The Trustees at London Youth have adopted the going concern basis in preparing the financial statements for the year ended 31 August 2021, having assessed the principal risks facing the charity, including the severity of the financial impact of Covid-19 pandemic. Although revenues at the charity’s Outdoor Residential Centres have recovered well since government restrictions eased in July 2021, the major uncertainty facing the charity relates to the potential for further disruption as a result of pandemic variants – the full extent and impact of which are yet to be fully realised and understood.

The Trustees have considered the impact of the prevailing COVID-19 environment through extensive scenario modelling on these operations and other areas of activity – including programme delivery - for the next 12 months and, specifically, have considered the continued impact on the Centres’ earned income and cash flows. As a result, the 2021-22 budget does not anticipate a full resumption of normal activities at the Centres until the period post-January 2022; with earned income reforecast for 2021-22 forecast at c.70% of the strategic targets set in 2020.

The Trustees acknowledge that the loss of this income will continue to impact on revenues for both London Youth and London Youth Trading Company Ltd (“the group”) but are confident that they now have a range of now tried-and-tested options available to mitigate any unanticipated downturn in revenues in the event that government guidance effectively prevents the Centres from operating as intended in year.

These options include reverting to cost-saving measures, as implemented in 2020-21, as well as the potential to provide additional budget to support any further restructure via the charity’s free reserves of

London Youth Annual Report and Financial Statements 2020-21

42

£7.941M as at 31 August 2021 (2020: £7.574M).

While the Trustees recognise the adverse impact of these challenges, they also recognise that there are opportunities for further strategic partnerships across a range of existing and potential funders to meeting the emerging and acute needs of young people and youth workers in London during this period. As evidenced by additional emergency funding secured of £800k secured on behalf of members in 202021, London Youth will continue to work with its existing funding partners and develop new partnerships to continue to support our membership networks during this period of uncertainty and beyond.

Although there is no assurance currently to be provided regarding the ongoing uncertainties presented by the Covid-19 pandemic, the Board of Trustees at London Youth has a reasonable expectation that the organisation will be able to continue in operation and meets its liabilities as they fall due from the period of assessment to February 2023.

The ongoing impact of the pandemic will continue to be closely monitored and further actions taken to manage/mitigate the risks posed to the organisation as a result and to ensure the longer-term sustainability of London Youth.

Therefore, the Trustees have concluded that there are adequate reserves to continue in operational existence for the foreseeable future and have continued to prepare the financial statements on a going concern basis.

d) Income

Income is credited to the statement of financial activities on an accruals basis. Voluntary income is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. Services are provided at the two outdoor education centres, Hindleap Warren and Woodrow High House, with deposits and course income invoiced in advance and deferred to the month when the course takes place. Income is deferred when it relates to activity in the next accounting year, primarily at the residential centres.

Grant Income is recognised in the Statement of Financial Activities when received or when the charity becomes entitled to receipt. Grants that have been received are treated as deferred income where there are specific requirements in the terms of the grant that the income recognition is dependent on certain activities being completed in a future accounting period.

The charity received some gifts in kind during the year and the prior year including legal services, provision of meeting rooms, provision of building materials and volunteer time; these gifts are not considered material and have not been recognised in the financial statements.

Incoming resources generated from endowment funds are unrestricted.

Where tax is recoverable by the charity in respect of income receivable, it is recognised as part of that income at the time it is receivable.

e) Expenditure

The costs of generating funds include the salaries, direct costs and overheads associated with generating income from fundraising for unrestricted activities and grants for charitable activities.

Costs of charitable activities comprise direct expenses incurred on the defined charitable purposes of the charity and include direct staff costs attributable to the activity.

Governance costs include expenditure on administration of the charity and compliance with constitutional and statutory requirements.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management, financial management, ICT and HR functions. Support costs are apportioned between charitable activity headings pro-rata with the proportion of full-time equivalent staff.

London Youth Annual Report and Financial Statements 2020-21

43

f) Investments

Investments are included on the balance sheet at their market value at the end of the financial period. Realised and unrealised gains and losses are credited, or debited, to the statement of financial activities in the year in which they arise. A Total Return approach was adopted for investments in January 2020.

g) Tangible fixed assets

Land

Land is shown in the balance sheet at cost. Land has not been depreciated.

Freehold properties

Freehold properties are depreciated over their useful economic life, expected to be 50 years for permanent buildings and 20 years for more temporary structures, based on cost.

Improvements

2-20% depreciation per annum has been provided against leasehold improvements, according to the nature of the improvement and the useful economic life.

If no cost is recorded, or if property is not used by the charity for its own activities and is subject to onerous restrictions or held on trust it is considered to have no economic value to the charity, and such properties are held at a valuation of £nil.

Where improvements have been made to properties subject to onerous restrictions, the improvements have been capitalised and are depreciated over the expected time period for which the charity will benefit from the use of those properties.

Motor vehicles, furniture, fittings, fixtures and equipment

Depreciation at 10% to 33% per annum on cost to write down the motor vehicles and furniture and equipment to net realisable value over each asset’s estimated useful life to the charity.

Computer equipment

Depreciation at 25% to 33.3% per annum on cost to write down the computer equipment to net realisable value over each asset’s estimated useful life to the charity.

It is the charity’s policy to capitalise assets of £1,000 and over in value.

h) Fund accounting

The general funds comprise those monies which may be used towards meeting the charitable objectives of the charity at the discretion of the Trustees.

The designated funds are monies set aside out of general funds and designated for specific purposes by the Trustees.

The restricted funds are monies raised for, and their use restricted to, a specific purpose, or are donations subject to donor-imposed conditions.

The permanent endowment funds comprise monies which must be held as capital indefinitely; income arising from invested funds is unrestricted and is credited to the general fund in the Statement of Financial Activities.

i) Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight line basis over the lease term.

London Youth Annual Report and Financial Statements 2020-21

44

j) Pension costs

The Charity makes payments into an auto-enrolment defined contributions pensions scheme operated by The People’s Pension.

k) Grants administered on behalf of clubs

Grants and donations received by the charity acting as an agent for individual member organisations are not recorded as incoming or outgoing resources on the statement of financial activities. In 2020-21 these were payments made by City Bridge Trust to organisations achieving a Quality Mark award, totalling £71,500 (2020: £61,000).

l) Grant-making

London Youth acts as lead partner on several programmes, such as HeadStart Action and Rise Up and is responsible for making grants to its partners, which are paid out as soon as practically possible after receipt of funds; based on budgeted expenditure pre-agreed with the funder and relevant due diligence criteria; the partners then make payments to their sub-partners in the partnership.

Grants expenditure is accounted for in full as liabilities, when approved and notified to grantees, as there is a valid expectation that they would receive the grant as offered and accepted.

The charity also makes a limited number of grants to other charities with charitable objects similar to its own (or similar non-profit organisations), primarily its member youth organisations as part of programme delivery and member development.

m) Financial Instruments

London Youth 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 amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash at bank and in hand trade debtors, accrued income and other debtors. Financial liabilities held at amortised cost comprise trade creditors, accruals and other creditors.

Investments, including bonds held as part of an investment portfolio, are held at fair value at the Balance Sheet date, with gains and losses being recognised with income and expenditure.

n) Key judgements and uncertainties

In the application of the charity’s accounting policies, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The key judgements relate to the current value of the property portfolio held as tangible fixed assets. These estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

o) Taxation

London Youth is a registered charity and therefore is not liable to corporation tax on income and gains derived from its charitable activities, as it falls within the various exemptions available to registered charities. No Taxation is payable for 2020-21 as London Youth Trading Company Limited donated its profits to London Youth under Gift Aid after the year end. No provision for taxation has therefore been made for 2020-21.

London Youth Annual Report and Financial Statements 2020-21

45

2. Donations

2. Donations
Donations & Legacies
3. Other Grant Income
Government CJRS

4. Trading Income
Rental income – Company
London Youth Trading Company income
Group Total
5. Investment Income

Income from listed investments
. Unit trusts and common investment funds

Interest receivable
. Bank interest

Unrestricted Restricted
Funds
funds
£
£
339,411
358,141
339,411
358,141
Unrestricted Restricted
Funds
funds
£
£
289,217
-
298,217
-
Unrestricted
funds
Restricted
funds
£
£
5,856
-
37,534
-
43,390
-
Unrestricted
funds
Endowment
Funds
£
£
120,913
44,305


2,831
-
123,744
44,305		 Restricted
funds
£








Total
2021
£
697,552
697,552

Total
2021
£
289,217
289,217
Total
2021
£
5,856
37,534
43,390
Total
2021
£		 Total
2020
£
358,141 263,290
358,141 263,290
Restricted
funds
£		 Total
2020
£
- 320,329
- 320,329
Restricted
funds
£



Total
2020
£
10,562
71,812
82,374
Total
2020
£
200,544


13,428
213,972
-
-
-



165,218
2,831
168,049

London Youth Annual Report and Financial Statements 2020-21

46

6. Profit on the sale of assets


Proceeds from property sales
Cost of sales		 Unrestricted
funds
Unrestricted
funds
£
£
-
-
-
-
-
-		 Total
2021
£
-
-
**- **		 Total
2020
£
1,800,071
(352,462)
1,447,609

7. Expenditure on raising funds

Fundraising costs
Investment management fees
 Staff
costs
£
221,051
-
221,051		 Other
costs
£
17,431
-
17,431		 Total
2021
£
238,481
-
238,481		 Total
2020
£
170,527
28,467
198,994

8. Expenditure on charitable activities

Development
Opportunity

Voice
Best We Can Be
*see note 9
 Direct

costs
£
873,484
4,099,607
103,211
779,098
5,855,400		 Support
costs*
£
109,670
360,340
20,890
31,335
522,235		 Total
2021
£
983,154
4,459,947
124,101
810,433
6,377,635		 Total
2020
£
581,894
5,029,128
103,042
57,485
5,771,549

London Youth Annual Report and Financial Statements 2020-21

47

Included in expenditure are grants made to partners and members as part of development and programme delivery in the following amounts:

2-3 Degrees Legacy CIC
Alexz Education Ltd
All Changes Art
BIGKID Foundation
Clore Partner
Focus CIC
Goals for girls
Hackney Quest
Indoamerican Refugee (IRMO)
Kentish Town Community Centre
Kids N Action
Knights Youth Centre
Leaders In Community
Leap Confronting Conflict
London Learning Consortium
Lewisham Irish Community
Lewisham Youth
One Miah Group
Paddington Arts
Palace for Life Foundation
Play Place CIC
Reaching Higher
Salaam Peace
Somerville Youth & Play
South Central Youth
Spiral Skills CIC
St. Matthews Project
Sulgrave Youth Club
Tag Youth Club
Teen Action
The Avenues Youth Project
The Salmon Youth Centre
Waltham Forest Community Hub
XLP
Young Urban Arts Foundation
Grants £10k and under for programme delivery
Grants 5k and under for programme delivery
Grants to Institutions		 2021
£
50,549
40,408
30,000
29,200
61,800
11,584
8,141
38,008
27,000
11,160
27,000
27,000
75,258
125,504
-
27,000
27,000
-
44,022
-
55,400
37,008
6,080
37,008
27,000
36,508
28,500
28,500
31,900
27,000
15,980
37,008
36,508
4,500
28,600
225,761
242,672
1,566,567		 2020
£
-
16,342
-
-
-
-
13,500
14,042
-
-
-
-
16,042
-
19,770
-
-
16,000
-
28,730
12,432
14,042
50,000
14,042
-
18,542
-
-
-
-
-
14,042
14,042
15,700
-
284,237
-
561,501

In addition, Microgrants of £3,244 were made to individuals and groups of young people (2020: £10,880)

London Youth Annual Report and Financial Statements 2020-21

48

9. Other Expenditure

9. Other Expenditure
Costs associated with property sale(s)
Other costs (LYTC)
 Total
2021
£
-
9,210
9,210		 Total
2020
£
65,387
7,448
34,977

10. Support costs

Development
£		 Opportunity VoiceBest We
Can Be
Fundraising
Total
2021
Total
2020
£
£
£
£
£
£
Finance
HR
IT
Governance (note 11)
London Office
Safety &
Safeguarding		 25,899
85,096
4,933
2,467
4,933
123,328
151,814
18,017
59,197
3,432
1,716
3,432
85,794
105,610
12,830
42,155
2,444
1,222
2,444
61,095
109,680

20,269
66,597
3,861
1,930
3,861
96,518
118,811
28,151
92,496
5,362
2,681
5,362
134,052
165,016
4,504
14,799
858
429
858
21,448
26,402
109,670
360,340 20,890
10,445
20,890
522,235
677,333

Support costs have been allocated based on full-time equivalent headcount.

11. Governance costs

Auditor’s remuneration
Current year audit fees
Non audit fees
Trustee Indemnity insurance
Salary Costs
Other
Trustee expenses		 Total
2021
£
45,360
6,323
4,950
36,318
3,510
56
96,517		 Total
2020
£
34,233
2,779
4,955
55,593
21,110
142
118,812

London Youth Annual Report and Financial Statements 2020-21

49

12. Staff costs


Group and charity
Staff costs during the year were as follows:
Wages and salaries

Social security costs
Redundancy and termination costs
Pension costs


Temporary and outsourced staff costs

 Total
2021
£
2,669,416
251,897
10,760
116,514
3,048,587
65,137
3,113,724		 Total
2020
£
2,786,444
281,105
-
130,945
3,198,494
229,614
3,428,108

No termination payments were made in 2021 (2020: £nil). However, redundancy costs of £10,760 were incurred in 2021 (2020: £nil).

Group and charity
Staff costs during the year were as follows:
Charitable activities
. Development
. Opportunity

. Voice
. Best We Can Be
Fundraising
Support costs

 Total
2021
£
225,972
2,262,189
100,267
71,405
139,575
314,316
3,113,724		 Total
2020
£
250,098
2,528,384
104,121
74,149
144,939
326,417
3,428,108

The average number of employees calculated on a monthly average head count and on a full-time equivalent (FTE) basis was:

Group and charity

Direct charitable
. Development
. Opportunity
. Voice
. Best We Can Be
Fundraising
Support
Total		 2021
Number
8
74
7
5
5
8
107		 2021
FTE
8
52
7
5
5
7
84		 2020
Number
5
108
3
2
3
6
127		 2020
FTE
5
79
3
1
3
6
97

London Youth Annual Report and Financial Statements 2020-21

50

During the year employees earning in excess of £60,000 per annum, including taxable benefits fell into the following ranges.

the following ranges.
£80,000 - £89,999
£70,000 - £79,999
£60,000 - £69,999		 2021
Number
-
1
3		 2020
Number
-
1
4

The key management personnel of the charity in charge of directing, controlling, running and operating the charity on a day-to-day basis comprise the Chief Executive and a Senior Team, currently comprising the Director of Programmes, Director of Engagement, Director of Centres, Director of Fundraising and Director of Finance & Resources. The total taxable benefits and employers' pension and National Insurance contributions of the key management personnel for the year was £508,030 (2020: £428,576).

No Trustees received remuneration in respect of their services as a Trustee during the period (2020: £nil). One Trustee received reimbursement of £56 for travel expenses during the period (2020: one Trustee £142). The charity has a Trustee indemnity insurance policy in force for which the charge for the period was £4,590 (2020: £4,955).

London Youth Annual Report and Financial Statements 2020-21

51

13. Tangible fixed assets

Cost or valuation
At 1 September 2020
Additions
(Disposals) Marvel’s Lane property
At 31 August 2021
Depreciation
At 1 September 2020
Charge for year
(Disposal)
At 31 August 2021
Net book values
At 31 August 2021
At 31 August 2020		 Land and
Property
£
7,626,469
-
-
7,276,469
2,334,880
110,974
-
2,445,854
4,830,615
4,941,589		 Improvements
£
2,631,366
12,338
-
2,643,704
1,153,597
86,519
-
1,240,116
1,403,588
1,477,769		 Furniture,
fixtures &
equipment
£
883,496
3,902
-
887,398
490,470
81,454
-
571,924
315,474
393,026		 Motor
vehicles
£
22,077
-
-
22,077
6,180
2,323
-
8,503
13,574
15,897		 Computers
£
222,687
14,032
-
236,719
154,256
41,048
-
195,304
41,415
68,431		 Total
£
11,036,093
30,272
-
11,066,366
4,139,382
322,319
-
4,461,701
6,604,666
6,896,712

Freehold property included above at cost or Trustees’ valuation at year end comprises:

47-49 Pitfield Street London
 London Youth own use
Hindleap Warren Sussex
 London Youth own use
Woodrow High House Buckinghamshire London Youth own use

The charity also owns freehold properties listed below which are included at a £nil valuation because the properties are held on trust or have restrictive covenants concerning their disposal. These properties have no recorded cost and are not in use by the charity.

Freehold properties at £nil value: Westminster House Youth Club, London

Reason for non-valuation Insurance Value (£) Held on Trust 450,000

London Youth Annual Report and Financial Statements 2020-21

52

14. Investments

14. Investments
Group
2021
£		 Charity
2021
£
2
8,332,013
48,952
12,000
**8,392,967 **		 Group
2020
£
-
6,358,992

40,724
12,000
6,411,716
 Charity
2020
£
Shares in subsidiary undertaking at cost
Listed investments
Cash held by investment managers for investment
Other investments
 -
8,332,013

48,952
12,000
8,392,965
 2
6,358,992
40,724
12,000
6,411,718

The charity owns the entire issued share capital of London Youth Trading Company Limited, company number 02977936, incorporated in England and Wales. This company traded throughout the year ended 31 August 2021; its balance sheet is consolidated within these accounts. London Youth Trading Company Limited has Shareholder funds of £2.

London Youth Trading Company Limited’s income during the year was £37,534 (2020: £71,812) and its surplus for the year was £14,077 (2020: £35,352). An amount of £14,077 (2020: £35,352) was donated to London Youth under gift aid subsequent to the year end. Net assets of London Youth Trading Company Limited are shareholder funds of £2.

Market value at 1 September 2020
Additions (CCLA)
Withdrawals
Gains /(losses)
Market value at 31 August 2021
Cash held by investment managers
Total investment

Listed investments at cost		 Listed
Investments
£
6,358,992
1,000,000
(80,551)
1,053,573
8,332,013
**48,952 **
8,380,965
6,459,708

Listed investments held at 31 August 2021 comprised the following:

Fixed income
Equities
Property
Alternative assets
Liquid assets		 2021
£
615,939
6,544,438
160,266
739,564
320,758
8,380,965		 2020
£
691,627
4,679,598
89,458
505,333
433,701
6,399,716

Included within listed investments are 58.8 ordinary shares in Royal Bank of Scotland Plc with a market value of £125 (2020: £71) at 31st August 2021 which do not form part of the CCLA or Sarasin & Partners investment portfolios.

London Youth Annual Report and Financial Statements 2020-21

53

Investments include an endowment for the Girls Fund. London Youth adopted total return accounting for the Girls Fund in January 2019. A base date of 1st February 1999, the date of the merger with the London Union of Youth Clubs and transfer of assets when the fund was acquired, was approved for determining the permanent capital value of the endowed fund, based on the market value of £891,991 at the fund transfer date. The value of these investments was frozen and classified as frozen permanent capital, and the remaining value of the investments was classified as unapplied total return.

Trust for
Investment
Unapplied
Total Return
Total
Endowment
At beginning of the reporting period:
Gift component of the permanent endowment
Unapplied total return
Total
Movements in the reporting period:
Gift of endowment funds
Recoupment of trust for investment
Allocation from trust for investment
Investment return: dividends and interest
Investment return: realised and unrealised gains/(losses)
Less: Withdrawals
Total
Unapplied total return allocated to income
Net movements in reporting period
At end of the reporting period:
Gift component of the permanent endowment
Unapplied total return
Total		 891,991
-
891,991
-
555,919
555,919
891,991
555,919
1,447,910
-
-
-
-
-
-
-
-
-
-
44,305
41,075
-
176,638171,719
-(12,652)
(3,230)
- 208,291 209,564
-
(44,305)
(45,578)
- 163,986 163,986
891,991
-
891,991
-
719,905
719,905
891,991
719,905
1,611,896

15. Debtors

15. Debtors
Group
2021
£
179,355
331,842
-
1,000
512,197		 Charity
2021
£
177,840
331,842
33,122
1,000
543,804		 Group
2020
£

297,435
481,047
-
135,739
914,221		 Charity
2020
£
Trade debtors
Prepayments and accrued income
London Youth Trading Company
Other debtors
Total debtors		 296,938
479,988
33,615
135,739
946,280

Amounts totalling £82,809 (2020: £72,354), which were invoiced prior to the year end but which relate to activity in the next accounting year, primarily at the residential centres, have been netted off Trade Debtors and Fees in Advance.

London Youth Annual Report and Financial Statements 2020-21

54

16. Creditors

16. Creditors
Group Charity Group Charity
2021 2021 2020 2020
£ £ £ £
Fees in advance and deferred income 148,073 139,313 269,036 255,716
Trade creditors 298,326 298,326 350,170 350,170
Other creditors 205,539 205,539 214,129 212,668
PAYE and National Insurance 69,936 69,936 63,211 63,211
Pensions Payments 18,941 18,941 17,061 17,061
Accruals 200,444 200,444 302,888 296,648
Total creditors 941,259 932,499 1,216,495 1,195,474

Analysis of movement in fees in advance and deferred income		 Group Charity
Deferred income at 1st September 2020 269,036 255,716
New deferred income in the year 141,673
139,313
Deferred income released **(269,036) **
(255,716)
Deferred income at 31st August 2021 141,673
139,313

London Youth Annual Report and Financial Statements 2020-21

55

17. Funds

17. Funds
1 Sept
2020

£		 Incoming
resources

£		 Expenditure
£		 Transfers
*

£		 Gains &
Losses

£		 31st Aug
2021
£
Restricted Funds
Development
Membership Development
Membership Development/Marketing
Quality Mark (CBT & YLF Training)
CVC Mental Health
Burberry
Good for Girls
Rise Up Leadership Programme
Opportunity
Residential Centres
Woodrow General Restricted
Woodrow Restricted Projects
Hindleap General Restricted
Hindleap Countryside Stewardship
Youth Action
City Leaders - Core programme
City Leaders - Keeping it Wild
Microgrants
Sports Development
Sports Development
ActiveLeads
Young Leaders
JP Events
Young Culture Makers
Employability
JP Morgan
Future Talent
HeadStart Action
CVC Employability
Voice
Youth involvement
Youth Board (formerly DARE London)
Coming of Age
Best We Can Be
Learning
Other
Restricted Funds Total		 31,058
(1,105)
-
-
-
11,433
11,570
-
13,931
10,473
36,324
16,488
6,410
311,477
35,100
66,216
(3,585)
17,935
-
204,606
356,134
-
2,606
-
2,500
182,114
217,500
45,309
485,000
346,837
494,972

28,000
66,500

23,088
11,251

99,500
101,904
8,032
350,370
-
19,941

25,000
15,000
35,000
1,750
197,000
70,347
-
43,424
45,400
(175,966)

(179,249)

(26,701)

(450,012)

(349,921)

(374,903)

(8,639)

(167,461)

(8,100)

(36,000)

(115,890)

(111,151)

(14,442)

(421,335)

(35,100)

(86,157)

(21,415)

(24,152)

(18,600)

(174,503)

(543,759)

(50,777)

(49,057)

(43,424)

(23,354)
-

-

-

-

-

-
(30,252)
100,252
(14,276)

14,276

-

-

-

-

-

-

-

-

-

-

-

-

50,000

-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
37,206

37,146

18,608

34,988

(3,084)

131,502

680

(710)

14,643

-

19,933

7,241

-

240,512

-

-

-

8,784

16,400

31,853

9,375

19,570

3,548

-

24,546
1,129,571 2,913,239 (3,510,069) 120,000 -
652,741

London Youth Annual Report and Financial Statements 2020-21

56

1st Sep
2020

£		 Incoming
resources

£		 Expenditure
£		 Transfers
*

£		 Gains &
Losses

£		 31st Aug
2021
£
6,604,666
4,332,512
162,572
194,902
1,634,806
3,300,787
16,832,986
-

77,320
-
-
44,305
2,306,880
(322,319)

-

(100,428)

(85,436)

-
(2,607,075)		 30,273
117,860
-
-
(48,808)
(169,325)
-

607,356

-

-

176,638
269,578
17,062,997 5,341,744 (6,625,326) - 1,053,572

*Transfers are made to and from the Fixed Assets Designated Fund when assets are capitalised and depreciated respectively.

Restricted Funds

Restricted funds are those funds that must be used in accordance with the donors’ wishes.

Development

Membership Development - Developing, training, connecting and quality assuring our membership network to deliver good youth work, including running networks meetings to develop and share practice and providing specific support for young people. Our membership development work is supported by City Bridge Trust, John Lyon’s Charity, Paul Hamlyn Foundation, the Burberry Foundation, the Greater London Authority (Violence Reduction Unit), the National Lottery Community Fund, the CVC Foundation, the Department for Digital, Culture, Media & Sport and others.

Opportunity

Creating a broad and inclusive range of quality opportunities for young people

Residential Centres – Funds to support our centres and outdoor education. This includes funds donated by Bucks Association for Gardening with disabled people in the Woodrow grounds; Countryside Stewardship supports forestry work at Hindleap Warren; Other funds for the residential centres supported building and refurbishment works, equipment to better support disabled young people, and subsidised visits for your people including trips away from the centre.

Youth Action – A range of youth leadership and social action programmes supported by The City Bridge Trust, The Morrisons Foundation, The Jimmy Dixon Charitable Trust, The National Lottery Community Fund, and National Lottery Heritage Fund.

Sports Development – A range of sports development programmes and events supported by Sport England, London Sport, British Fencing, the Greater London Authority, Tudor

London Youth Annual Report and Financial Statements 2020-21

57

Foundation, Jack Petchey Foundation, John Lyon’s Charity, The National Lottery Community Fund and others.

Employability - Future Talent is supported by JP Morgan Chase Foundation and the Greater London Authority have provided funding for the HeadStart Action programme which commenced in 2020.

Voice

Ensuring that our expertise and the on-the-ground voices of youth workers and young people are reflected in public policy, practice and opinion. While the majority of expenditure in this area was from unrestricted income, a grant was received for support for our youth involvement work and our Youth Advisory board.

Best we can be

City Bridge Trust/Cornerstone continue to support our ongoing learning and evaluation work, which includes innovation and developing practice with our members, supporting learning networks, and supporting organisational development with investment in fundraising development.

Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the Trustees for a specific reason:

Fixed Asset Fund

The fixed asset fund represents the net book value of tangible assets including property (see Note 12 above). These assets include Hindleap Warren and Woodrow High House which are fundamental to the day-to-day work of the charity.

Development Fund

The Development Fund was created to create a legacy from the sale of historic assets. This is a medium to long-term fund to support the development programmes at London Youth. It will be invested as determined by the Board of Trustees, with a particular focus on implementing the changes that will support the charity’s longer-term sustainability.

Fundraising Investment Fund

This fund is for investment in our fundraising capacity and to support diversification of income streams.

Digital Development Fund

This fund is for investment in digital innovation to help us adapt to virtual environments, especially important in the post-Covid period.

Permanent endowment funds

London Youth acts as Trustee for the London Girls Fund. This is a capital restricted fund whereby London Youth is entitled to the income only. The London Union of Youth Clubs was appointed Trustee of the fund by a Charity Commission scheme dated 23 January 1998. Following the amalgamation of the London Union of Youth Clubs and the London Federation of Clubs for Young People on 1 February 1999, London Youth became the Trustee under the scheme.

London Youth Annual Report and Financial Statements 2020-21

58

18. Analysis of net assets between funds

Unrestricted funds

General
funds
Designated
funds

Charity
£
£

Fund balances at 31st August 2021 are represented by:
Tangible fixed assets
- 6,604,666
Investments
2,425,649 4,332,512
Current assets
1,743,559
357,475
Creditors: amounts falling due within
one year
(918,422)
-
Total net assets
3,250,786 11,294,653

Fund balances at 31st August 2020 are represented by:
Tangible fixed assets
- 6,896,712
Investments
1,156,071 3,792,976
Current assets
3,540,131
280,338
Creditors: amounts falling due within
one year
(1,195,473)
-
Total net assets
3,500,729 10,970,026
Unrestricted funds
General
funds
Designated
funds

Group
£
£

Fund balances at 31st August 2021 are represented by:
Tangible fixed assets
- 6,604,666
Investments
2,425,647 4,332,512
Current assets
1,766,398
357,475
Creditors: amounts falling due within
one year
(941,259)
-
Total net assets
3,250,786 11,294,653
Fund balances at 31st August 2020 are represented by:
Tangible fixed assets
- 6,896,712
Investments
1,156,069 3,792,976
Current assets
3,561,154
280,338
Creditors: amounts falling due within
one year
(1,216,494)
-
Total net assets
3,500,729 10,970,026		 Designated
funds

£
 Restricted
funds

£
 Permanent
endowment
funds
£
 Total
2021
£
-
-
652,741
-		 -
1,634,806
-
-		 6,604,666
8,392,967
2,753,775
(918,422)
11,294,653 652,741 1,634,806 16,832,986
-
-
1,129,571
-
 -
1,462,671
-
-
 6,896,712
6,411,718
4,950,040
- (1,195,473)
10,970,026 1,129,571 1,462,671 17,062,997

Restricted
funds

£
 Permanent
endowment
funds
£
 Total
2021
£
Designated
funds

£
-

-
652,741
-		 -

1,634,806
-
-		 6,604,666

8,392,965
2,776,614
(941,259)
11,294,653
652,741
1,634,806		 16,832,986
-
-
1,129,571
 -
1,462,671
-
-
-		 6,896,712
6,411,716
4,971,063
(1,216,494)
10,970,026 1,129,571 1,462,671 17,062,997

London Youth Annual Report and Financial Statements 2020-21

59

19. Operating leases

At 31 August 2021, the charity’s minimum commitments over the life of non-cancellable operating leases on office equipment and motor vehicles were as follows:

Group and charity

Expiring within one year
Expiring within two to five years
Total		 2021
£
5,943
-
**5,943 **		 2020
£
9,381
5,943
15,324

20. Liability of members

The charity is constituted as a company limited by guarantee. In the event of the charity being wound up members are required to contribute an amount not exceeding 25p.

21. Associated charities and related parties

The Joseph Levy Endowment Trust is an associated charity and has three Trustees in common with The Federation of London Youth Club and uses the same principal office. The Trustees in common are Stephen Moss (who replaced A Julian Beare in April 2021), Morenike Ajayi (who replaced Keith Ward in April 2021), and David Miller. The objects of The Joseph Levy Endowment Trust are to promote and support the instruction of young people of all walks of life in the principles of discipline, loyalty and good citizenship in such ways as the Trustees shall from time to time think fit and, in particular, by furtherance of the charitable purposes of London Youth.

During the year, the charity received £30,000 (2020: £40,000) from The Joseph Levy Endowment Trust.

London Youth provided management, support services and facilities to London Youth Trading Company Limited in the amount of £14,246 (2020: £29,014), being primarily staff time and costs of the swimming pool and sports centre. London Youth Trading Company donated £14,077 (2020: £35,352) to London Youth through Gift Aid after the year end. As at 31 August 2021 £33,122 (2020: £33,615) was due to London Youth from London Youth Trading Company Limited.

The Addison Youth Club (T/A "Addison Youth") had three Trustees in common with The Federation of London Youth clubs for the period under review and uses the same principal office. The Trustees in common were A Julian Beare and Keith Ward (both of whom retired from The Federation of London Youth Clubs in April 2021) and David Miller. During the year London Youth invoiced Addison Youth in the sum of £6,000 (2020: £4,500) in respect of a management and administration charge.

London Youth is a corporate Trustee of the Jimmy Dixon Charitable Trust, The Sulgrave Foundation, and Raymond Plummer Settlement. The Federation of London Youth Clubs received £50,000 (2020: £39,311) from the Jimmy Dixon Trust to support the youth action programme and £7,000 (2020: £7,000) from The Sulgrave Foundation to support its sports development work. The Sulgrave Club related to the Foundation is a member of London Youth and paid a membership fee of £125 during the year.

Charline King, a Trustee of London Youth is an employee of Rathbone Society. Rathbone Society is a member club and actively engaged with London Youth. London Youth invoiced Rathbone for a membership fee of £125.

In 2021, two Trustees at London Youth each made a donation to the charity of £10,000 (2020: £nil); one of which comprised a restricted grant to support refurbishment works at Woodrow High House.

There are no other transactions with related parties of which the Trustees are aware.

London Youth Annual Report and Financial Statements 2020-21

60

22. Prior year figures

Consolidated Statement of Financial Activities Including Income and Expenditure year to 31 August 2020

Group
Notes
Income
Donations and legacies
2

Charitable activities
. Development
. Opportunity
. Voice
. Best We Can Be

Other Grant Income
3
Other trading activities
4

Investments
5

Profit on the sale of assets
6

Total income
Expenditure on:
Raising funds
7

Charitable activities
8
. Development
. Opportunity
. Voice
. Best We Can Be

Other
9

Total expenditure
Net gains / (losses) on investments

Net (expenditure) / income

Transfers between funds
Net movement in funds

Reconciliation of funds
Total funds brought forward
Total funds carried forward
17		 Unrestricted
Funds

£		 Restricted
Funds
£		 Permanent
endowment
£
Total

2020
£		 Total
2019
£

257,988
8,708
1,354,986
-
-
320,329
82,374
154,074
1,447,609


5,302

481,775
2,342,085

52,271

10,000

-

-

-

-
-
-
-
-
-

-
-
59,898
-

263,290
490,483
3,697,071
52,271
10,000

320,329
82,374

213,972
1,447,609
362,495
530,607
4,993,017
39,311
97,644

-
157,671
203,361
500
3,626,068 2,891,433 59,898 6,577,399 6,384,606

190,760

64,100
3,214,091
52,728
49,985
34,977


-

517,794
1,815,036

50,314

7,500

-
8,234
-
-
-
-
-

198,994
581,894
5,029,128
103,042
57,485
34,977
297,422
458,398
5,691,319
218,588
216,942
79,547
3,606,641 2,390,644 8,234 6,005,520 6,962,216

148,792
168,218
(13,188)
155,030
14,315,725


-

500,789

47,750

548,539

581,032
13,236
64,900
(34,562)
30,338
1,432,333


162,028

733,907

-

733,907
16,329,090
247,137
(330,472)
-
(330,472)
16,659,572
14,470,755 1,129,571 1,462,671 17,062,997 16,329,090

London Youth Annual Report and Financial Statements 2020-21

61

Prior year funds movements to 31 August 2020

1st Sep
2019
£		 Incoming
resources
£		 Expenditure
£		 Transfers
*
£		 Gains &
Losses
£		 31st Aug
2020
£
Restricted Funds
Development
Membership Development
Membership Development/Marketing
Quality Mark
Networks
Young People's Foundations
Covid-19 Adaptations
Rise Up Leadership Programme
Opportunity
Residential Centres
Woodrow Other
Hindleap Countryside Stewardship
Hindleap Other
Youth Action
City Leaders - Core programme
City Leaders - Keeping it Wild
City Leaders - East London Leaders
Youth Leads
Microgrants
Sports Development
Active Leads
Sports Development
Young Leaders
JP Events
Arts
Young Culture Makers
Employability
Big Lottery Fund Talent Match Croydon
Future Talent
HeadStart Action
Voice
Youth involvement
Dare London
Best We Can Be
Learning
Other
Restricted Funds Total		 53,785
10,500
-
13,120
-
-
13,442
7,232
12,666
11,922
10,658
10,307
5,272
14,546
14,616
20,757
-
13,858
-

135,864
232,487
-
-
-		 39,362
97,500
141,660
-
148,653
54,600
23,306
17,241
68,162

161,499
88,399
82,028

-
32,017
747,831
49,039
114,764
32,572
47,813
(349)
347,881
535,185
52,270
10,000
(130,698)

(109,105)

(135,457)

(13,120)

(86,247)

(43,167)

(2,313)

(14,000)

(62,037)

(140,097)

(82,569)

(92,335)

-

(41,775)

(450,970)
(34,696)

(48,548)

(50,015)

(87,176)

(137,424)

(392,029)

(179,051)

(50,314)

(7,500)		 -
-
-
-

-

-
(22,865)

-

(4,860)

3,000
-
-
(5,272)

1,622

-

-
-
-

57,298
1,910

16,267

-

650
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 (37,551)

(1,105)

6,203

-

62,406

11,433

11,570

10,473

13,931

36,324

16,488

-

-

6,410

311,477

35,100

66,216

(3,585)

17,935

-

204,606

356,134

2,606

2,500
581,032 2,891,432 (2,390,643)
47,750		 - 1,129,571

London Youth Annual Report and Financial Statements 2019-20

62

1st Sep
2019

£		 Incoming
resources

£		 Expenditure
£		 Transfers
*

£		 Gains &
Losses

£		 31st Aug
2020
£
6,896,712
3,792,976
280,338
1,462,671
3,500,729
17,062,997
-
105,477
-
59,898
3,520,590
-

(20,233)

-
(8,234)
(3,586,408)		 (433,413)
(101,976)
(224,246)
(34,562)
746,447
-

112,927

-

13,236

35,865
16,329,090 6,577,398 (6,005,519) - 162,028

22. Post balance sheet events

Non-adjusting event post 31 August 2021

In November 2021, the Trustees were notified of a sewage leak at London Youth’s Hindleap Warren outdoor centre. Two separate surveys have been commissioned and the most recent survey conducted in March 2022 estimates the cost of replacing the plant at between £200k and £300k.

In the meantime, temporary repairs and interim measures have been implemented to enable the plant to continue to function within Environment Agency guidelines, pending full replacement of the unit(s).

London Youth Annual Report and Financial Statements 2020-21

63

Reference Information

Patron HRH Prince Edward, The Earl of Wessex HRH Prince Edward, The Earl of Wessex
President Sir Kenneth Olisa, OBE
Chair Stephen Moss, CBE
Deputy Chair David Miller
Honorary Treasurer Keith Ward (to 26 April 2021)
Morenike Ajayi (from 26 April 2021)
Vice Presidents The Lord Brooke Dr. Terry Powley
Robin Callender Smith John Ratcliff CBE
Jane Earle Marsha Rae Ratcliff OBE
Clive Efford MP G Davide Rodrigues
Robin Gowlland The Rt. Rev. Roger Sainsbury
Peter Hudson John Spencer OBE
Rt. Hon. Sir Simon Hughes Paul Stewart
Peter Hunter Joy Toghill
Sir David Knox Joseph Williams
Roger Merton MBE Carl Wonfor
Trustees Morenike Ajayi (from 26 April 2021)
Sue Asprey-Price David Miller
Guy Davison Stephen Moss, CBE
Edward Hay (to 26 April 2021) Louise Rodgers
Kevin Holian Stu Thomson
Adem Holness Simon Turek
Charline King Keith Ward (to 26 April 2021)
Sharaf Mahmood Mario Washington-Ihieme
Youth Advisors Jo-Ash Brown Amina Meshnuni
Attending Curtis Johnson Veronica Sarmiento
Board meetings Kalliyah Kirlew Elena Vissani
Committee Chairs:
Finance Morenike Ajayi (replacing Keith Ward from 26 April 2021)
Assurance Kevin Holian
Membership Charline King
Governance & Simon Turek
People

London Youth Annual Report and Financial Statements 2020-21

64

Chief Executive and Company Secretary

Senior Team Director for Residential Centres Interim Director of Programmes Interim Director of Engagement Director of Fundraising Director of Finance & Resources

Registered name Registered/principal office

Telephone E-mail Website Company registration number Charity registration number Auditors

Bankers

Investment managers

Lawyers

Rosemary Watt-Wyness

Martin Curtis Pauline Daniyan Gill Goodby Glen Fendley Danyanne Quemper The Federation of London Youth Clubs 47-49 Pitfield Street London N1 6DA 020 7549 8800 hello@londonyouth.org www.londonyouth.org 00258577 (England and Wales)

303324 Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW National Westminster Bank plc 54 Marsh Wall West India Dock London E14 6LJ Sarasin & Partners Juxon House 100 St Paul’s Churchyard London EC4M 8BU

CCLA Senator House 85 Queen Victoria Street London EC4V 4ET Charles Russell Speechlys LLP 5 Fleet Place London EC4M 7RD

London Youth Annual Report and Financial Statements 2020-21

65

47-49 Pitfield Street London N1 6DA

020 7549 8800

londonyouth.org

@LondonYouth

Charity Registration: 303324 Company Limited by Guarantee. Registration (England and Wales): 258577

66