## **Annual Report 2021-22** **Annual Report and Financial Statements 2021-22** Year ended 31[st] August 2022 ## **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** |**Contents Page**|| |---|---| |**Annual Report 2021-22**|| |**Introduction**|**2**| |Chair’s welcome|2| |Chief Executive’s message|3| |Young Advisor’s Message|4| |2021-22 at a Glance|5| |About London Youth|6| |**Strategic Report**|**10**| |Achievements and Performance|10| |Financial review|22| |Plans for the future|28| |Principal risks and uncertainties|29| |**Trustees’ Report**|**32**| |Structure and governance|32| |Management and decision-making|34| |Statement of Trustees' responsibilities|37| |**Independent Auditor’s Report**|**38**| |**Financial Statements**|**42**| |Statement of Financial Activities|42| |Balance Sheet|43| |Cash Flow|44| |Notes to the Financial Statements|45| |**Reference Information**|**69**| London Youth Annual Report and Financial Statements 2020-21 1 ## **Introduction** ## **Chair’s welcome** As we conclude and reflect on the year ending August 2022, we must acknowledge that this time last year, and indeed the year before, we were looking back at months of lockdowns, virtual delivery, and fluctuating uncertainty. With great effort and creativity from everyone in the organisation, we managed to navigate our way through the impact of the pandemic and continued to provide the vital support and programming to our member youth organisations. While I am greatly relieved to see London Youth and the wider youth sector return to face-to-face delivery, with the wonders and benefits of that in-person connection, we must also acknowledge the new and emerging challenges this year has thrown at young Londoners. A new crisis – a cost of living crisis – is impacting not just the future viability of our members but the very young Londoners we all work so hard to support. However, London Youth exists to champion the youth sector which, at the best and worst of times, provides young people with somewhere to go, something to do, and someone to trust. The stark clarity of the urgent need for youth work only serves to highlight the incredible work of London Youth’s member organisations. I thank each one of them for what they do. Our mission as London Youth is to support them, and I am proud to say that our team has once again driven tangible impact, delivering 142 networks, training and information sessions benefiting almost 1,700 youth professionals this year. Furthermore, over 8,000 young people have accessed our own programmes this year, and over 28,000 in total were supported by London Youth - a significant and welcome increase on last year. I have been delighted to visit our two outdoor residential centres, Hindleap and Woodrow, several times over the course of the year. They are back up and running after an extremely challenging few years of pandemic-related closures, delivering 42,000 young person visit days this year, over three times as many as last year. We will never stop saying that all young people deserve the opportunity to enjoy a stay away from home, to experience what the countryside has to offer and to enjoy outdoor adventure. None of London Youth’s work would be possible without the strong team of committed staff that make it all happen, led by Rosemary Watt-Wyness, who I take the opportunity to thank here for her leadership, along with the expert senior team she has assembled. This year we were pleased to appoint two new leadership team members, Head of Policy and Communications Natalia Rossetti and Head of Programmes Robbie Cheyne, leading youth action. Youth action and youth voices are indeed at the heart of everything we do, so I am also pleased to be able to thank our brilliant Youth Board and our Young Advisors for their time, commitment, courage, and enthusiasm. I want to extend sincere thanks to Sue Asprey-Price, Louise Rodgers and Mario Washington-Ihieme who stepped down as Trustees during the year. We’ve been successful in recruiting four new Trustees: Julie Milnes, Michael Bishop, and Nimtaz-Tanya Noordin as well as young Trustee Mohammed Abu Nasir Motin, who had previously sat on our Youth Board. A huge thank you to our president Sir Kenneth Olisa for his tireless support of London Youth, and to our patron, the Earl of Wessex, who is such an important advocate for young voices and whose father’s legacy we continue to honour in all we do, especially through the Prince Philip Award. During Youth Work Week 2021 this was awarded to CVC and its foundation. Next year, we will continue to strive to be an anti-racist organisation and do all we can to support our member organisations. There is certainly a huge amount of work to do on behalf of young Londoners. With the help of our funders and supporters - without whom we wouldn’t exist and who I would like to sincerely thank - we will continue to deliver opportunity, drive impact and demand the change young people need to see. ## Stephen Moss CBE ## Chair of Trustees London Youth Annual Report and Financial Statements 2021-22 2 ## **Chief Executive’s message** It is impossible to round off this incredibly full, productive, and impactful year without acknowledging the challenges that Londoners, especially young Londoners from underserved communities, are facing. There is an escalating mental health crisis among the UK’s young people, which half a million of them identified as their single biggest concern in a recent survey. They also reported they consider mental and physical health as, quite rightly, inextricable. Now a cost-of-living crisis described as well beyond the living memory of most people, certainly of young Londoners, is further exacerbating poor mental health, jeopardising physical health, and widening inequalities. It doesn’t feel like a hyperbole to say that young people have never needed us more. ‘Us’ meaning support, meaning safe spaces, meaning trusted adults: meaning youth work. In this light, almost 600 member organisations are doing literally life-saving work, and I take this opportunity to thank and celebrate every single professional, youth worker, volunteer, and staff member whose daily efforts make this work happen. The role you play in young people’s lives is vital, and we exist to support you to deliver it. That’s why we’re so proud that as of this year, 159 of our members hold a London Youth Quality Mark, and that 226 members accessed a London Youth programme or visited our outdoor residential centres this year. Hindleap Warren and Woodrow High House have indeed had an exciting year, in no small part thanks to the Jack Petchey Foundation, which allowed us to welcome to our two centres around 800 young Londoners across 21 boroughs. The Jack Petchey Adventures are a fabulous example of London Youth’s values and unique provision at work, uniting the joys of outdoor education with a focus on those least likely to experience this. 78% of all young people who took part were young people of colour, and 87% of participants felt that being in nature had made a positive difference to their wellbeing. We wouldn’t be able to provide this without our funders, so an enormous thank you to the Jack Petchey Foundation for making this possible. This year we also operated 15 programmes and delivered several events involving over 200 members. Whether the focus is on sport, youth action, employability, mental health or art, our activities help young people do better physically and emotionally, and help them gain skills, knowledge and networks, inspiring them to make a positive contribution to their community. Of course, I’d like to thank the brilliant team at London Youth across all three sites for their energy, enthusiasm and hard work this year. Like every year, we welcomed some new staff members and said goodbye to others who are off on new adventures, but what always remains constant is the passion for our mission and the reciprocal support for colleagues. It’s a pleasure to be on your team. My deepest thanks also to our Board of Trustees; again, we’ve seen some changes and are delighted to welcome new faces, and we’re consistently grateful as a team to have such a supportive and wise group of Trustees, particularly under the chairmanship of Stephen Moss, who I thank for his work this year. Last but certainly not least, our Youth Board is one of the driving forces behind what we do; the voices of our young Board members and Advisors are invaluable to us and we are so grateful for their time, creativity and commitment to London Youth. Our work to become an anti-racist organisation continued this year, and I’m humbled by the hard work, effort, vulnerability, and generosity of all staff in embracing this fully. We’re still learning, and we will never stop learning, and I really want to thank everyone who has used their position and experience to help us be and do better every day. I look forward to continuing this work which will remain at the forefront of our agenda. ## Rosemary Watt-Wyness Chief Executive London Youth Annual Report and Financial Statements 2021-22 3 ## **Young Advisor’s Message** As we place the last pieces of our 2022 stories on the board, we realise that we weren’t completing a puzzle, we were making a collage. The post-pandemic life has settled itself as the ‘new normal’: a digitalised, social media documented, politically confusing, socially ambiguous, debate-sparking, thought-provoking, fast paced way of life has young Londoners shifting from _‘bright future’_ discussions and aspirations to the routine that a ‘will I make it?’ mentality creates. With rising living costs, decreasing access to opportunities and limited funds going to Youth Clubs and young people, painted a world that was not paying much attention to me, which had me wonder: Will I make it? I was given the opportunity to work on HeadStart Action. Being able to reflect on a journey of youth clubs, youth workers and young people; not just as individual valued positions within the greater scheme of youth work, but as a network that was given a platform to enact social action holistically and practically was an inspiring experience. Furthermore, I felt privileged to be interviewed by the BBC, about my journey with London Youth in honour of Duke of Edinburgh’s life. Finally, working on the Mental Health Alphabet Project, ( _which aims to explore Mental Health amongst young people, especially in minority & marginalised communities. Aiming to create an open and ever growing source of information and support for minority communities, and organisations that work with them_ ) through which 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, to continue to advocate for green spaces & wellbeing. As an extension of that, I was invited to the Houses of Parliament to talk about the project as a guest speaker for the Politics School led by Virendra Sharma MP, representing London Youth’s support on young people’s social action projects and initiatives. The list of activities, events, opportunities including being part of discussion forums, research, award ceremonies, events with the GLA, fundraisers and more, is very long. As my CV exceeds its two-page limit, I have organisations like London Youth to thank and attribute a lot of my future success to. The past year with London Youth was also my last year as a Young Ambassador, a 4-year journey that has been a witness of my development as a young leader. Upon looking back, I see my yesterday-self unaware that the support I was receiving was what would help my today-self grow. For me, as for most young people, school, family and the world float like islands on a deep, beautiful and sometimes chaotic sea. Youth clubs build a bridge for us to cross and connect these spheres of life together. Aspiring to bring positive change, in a world that shifts and moves in heavy blocks of stubborn and uncaring decisions, as a young person, you always feel you lack the strength to push and lift enough; to justify your place in the world and make a difference. But youth clubs and youth workers, are career catalysts, springboards to success, welcoming meetings, jokes and pizza after, fun residentials and friends for life. Youth Clubs and youth workers give us multi-career role models, grassroots coaches, level playing fields, platforms for discussions, marathons to run and cheering for us throughout – an inspiring voice that needs to be heard, because so many young people will be silent if they do not hear it. The past year has taught us the importance of our voices, of constructive debate and thought-provoking discussions. The past world changes, political instabilities and international conflicts have taught us a lesson of courage, persistence and resilience. Homes that we have created along the way of becoming the young leaders of today, like London Youth, amplify our voices, and teach us how to translate what we have learnt into action. I am thankful to all youth workers who give us their time, expertise, patience and inspire in us the drive to be and do better. I am grateful for all youth clubs that are part of London’s testimony that change is possible. Finally, I am fulfilled, motivated and most importantly, hopeful, that London Youth, youth workers, and youth clubs will continue to build the new generation of young leaders. In conclusion, we will certainly make it! ## Amina Meshnuni ## Young Advisor London Youth Annual Report and Financial Statements 2021-22 4 At a glance: 2021-22 in numbers Total young people supported 12021,. 17.5001 I,zsi Young people on programmes 12021.. 5.0801 Member youth organisations in our network ¢ZOn6061 Young people visit days at the centres 12021.. 11.0901 1,6 Members holding Quality Mark 12021.. 1391 Networks & training sessions 12021.. 1601 Youth professionals on training & networks 12021.. 2,0931 Members using programmes or centres nunknth5ridth Dr Suppurtvd In 5[mI(a￿S witske pwiin Dnp Lyp¥xtynty A5 Th>tsd th1nth￿ rew. ￿ part& 2O2&2S. and 18aming and ware London Youth Annual Report and Financial Statements 2021-22 ## **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: - **Honesty** – about what works (and what doesn’t) – we learn from our mistakes - **Collaboration** – with each other, young people, our members, and the world beyond - **Improvement** – committed to continual improvement - **Fun** – because we think we achieve and learn the most when we enjoy ourselves ## **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 2021-22 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** - We support community youth organisations: so that youth workers can support young people and we deliver on our mission - We are pan-London: our breadth gives us a view of what needs to happen for young people across the city - Our reach: we have a combination of numbers, spread and relationship with members that is unique in London. The majority of young people our network supports are young people of colour. - Opportunities: we offer more opportunities and a wider range of them than any other organisation in London - Capacity: we are the only youth infrastructure organisation that has significant capacity to deliver in London - History: we have the gravitas of over 130 years of influential history ## **How we make change happen** By working in and across these three areas we aim to achieve the change needed to achieve our mission. London Youth Annual Report and Financial Statements 2021-22 7 ## **Our aims and strategic priorities** The central intention of our 2020-25 strategy is 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** We are entering a period of economic crisis for the youth sector that feels equal in its magnitude as the pandemic period which preceded it. Critically though, there has been no recovery period in between to build back the infrastructure and resources to support young people. This means that reserves are depleted, demands for services are up, and the workforce is stretched to beyond capacity **1. Cost of living impact on the youth sector.** Measures to mitigate the cost of living crisis in the Government’s Autumn statement may offset the closure of some grassroots youth clubs over the winter months. However, a third of statutory youth clubs closed in London over the past decade. For those still operating, they face mounting challenges as we heard from our many of our London Youth members who shared their experiences with us in late 2022 on the cost of living crisis. Pressures on the on-statutory youth sector will be even greater[1] . - Cuts in London Council’s budgets by £700 million in 2023, will undoubtedly impinge on their youth services, and on what Government can achieve in seeking to strengthen their current statutory obligations - City Hall analysis points to inflationary pressures being more acute in London. This will have an impact on the capital’s youth sector infrastructure and its workforce, which is currently overstretched and under-resourced. - Lack of funding for open access youth work in London Boroughs, given core youth funding focused on capital spend for new facilities over existing infrastructure: this is also largely outside of London due to Government’s levelling up criteria. > 1 London Youth’s September 2021 membership survey shows over 40% fear closure within a year London Youth Annual Report and Financial Statements 2021-22 8 **2. Trends in child poverty in London are spiralling upwards.** 37% of London’s children live below the poverty line and 41% are living in poverty and not eligible for free schools meals (Children Poverty Action Group); Children in London are 9% more likely to live in poverty than those in the rest of England (Trust for London); In Tower Hamlets there is a child poverty rate of 51%, and in Hackney it is 45% - these are well above other London and England averages. London Youth played an active role in this year’s London Challenge Poverty week, advocating on behalf of our members. We briefed all London MPs, Assembly Members and other stakeholders, highlighting some of these points. **3. We are in the midst of a mental health emergency.** Over the course of the last year London Youth has been making the case for greater preventative action in support of young Londoners to policy makers – as outlined in our response to the Government’s 10 year plan for mental health and wellbeing for England. We have also worked in partnership with other organisations to spotlight the evidence in support of policy intervention. - Youth Employment UK’s 2022 Youth Voice Census, which outlines the latest feedback from over 4,000 young people, illustrates how acute the mental health emergency is for young people and how it shapes their experience of the job market - the Children’s Commissioner Big Ask Survey, showed that mental health was the single biggest concern for children and young people. Critically, it highlighted that they perceive mental health as being inseparable from their physical health. - Childhood obesity levels have risen sharply in the last 12 months. London is the region with the highest percentage of overweight and obese children in the whole of the country. The percentage of year 6 children who are overweight or obese rose from 38.2% in 2019-20 to 45.2% in 2020-21, 15% rise in the space of 12 months[2] . **4. There are significant structural and racial inequalities whose impact is felt in the** - **areas of the work that we do, and the young people we support.** The majority of our programmes’ beneficiaries are young people of colour. Their outcomes are markedly different from their white counterparts, whether seen through the prism of employment opportunities, physical wellbeing or mental health outcomes. - In London, where the concentration of ethnic minorities is most prevalent young black men in particular face unemployment in far greater numbers than their white counterparts - 24% vs 12% (latest figures here). - Access to formal mental health support is unequal: those least likely to receive mental health treatment are “aged between 16-24, male, and from BAME groups” (‘TIP’ Report, Power the Fight, 2020) - Poorer access to open space: Black children and young people are the least likely to be active (36% vs 48% for white British group) according to Sport England’s latest Active Lives survey - Stop and search is vastly disproportionate in targeting young people from a black Caribbean background: young Black men in particular are 8 times more likely to be stopped and searched by police compared to those from a white background according to latest government data. > 2 https://digital.nhs.uk/data-and-information/publications/statistical/national-child-measurement-programme/2020-21-schoolyear#summary London Youth Annual Report and Financial Statements 2021-22 9 ## **Strategic Report** ## **Achievements and Performance** ## **Introduction** The Covid-19 pandemic and its aftershocks continued to affect London in 2021-22. Our members still faced reduced ability for face-to-face provision due to regulations and lower capacity because of youth workers getting ill. Many young people coming out of lockdowns found social interactions more difficult and combined with additional pressure at school to cover content missed, they continued to experience mental health challenges. Energy prices rose slowly and then sharply in spring 2022, increasing the pressure on low-income families and on our members. Despite these challenges, London Youth 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[3] . Working to our 2020-2025 strategy, aiming to deliver opportunity, drive impact and demand change, we kept our focus on key issues affecting young people in London, especially inequality of support in outer London and mental health. This section of the report describes what we did and what we achieved with and for young people, youth professionals, youth organisations and the youth sector environment. Through our direct work and our work with members, young people have continued to do 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. The voices of young people and members was amplified in local and national policy making and funding circles, as well as through the media. ## **Our members and the young people they serve** During 2021-22 we had 587 youth organisations as members (2021: 606). On average, they rated the support we provided as ‘very good’, with 90% saying they would recommend London Youth to another organisation (2021: 90%)[4] . From our annual membership renewal process conducted in spring, we collected data from members on their organisation, the young people they work with and the work they do. In the second year of collecting more detailed information, 92% of our membership responded (2021: 79%)[5] . The overall results from this data have stayed almost the same, compared with last year. Below are key statistics about our members: > 3 We deliver many of our programmes and other services in partnership with other organisations. A full list is available upon request. > 4 102 Youth professionals from 98 members completed our impact survey, which provides a 9% margin of error 5 540 members completed the data update. Associate members (20) do not complete this survey. London Youth Annual Report and Financial Statements 2021-22 10 ## **About our member organisations** - The majority of members have a turnover of £500k or lower (67%); half have a turnover of less than £250k (51%) - Our members have over 18,000 staff members and over 22,000 volunteers, a third of them youth workers. However, half of our members do not have a single staff member with JNC qualifications (51%) - The majority of our members work across multiple boroughs (60%), and 210 (36%) are based in outer boroughs ## **About the young people they work with** - We heard from members that there was more demand for their services: - Our members worked with over 601,770 young people, 258 per member on median average[6] (2021: 250). - Each week, over 113,500 young people attend members, 210 per member on median average (2021: 174). Half of the members have up to 60 young people attending per week (2021: 50). - On average, 68% of the young people attending are from Black, Asian and minority ethnic groups. 44% are girls and young women, 53% are boys and young men and 3% identify otherwise - 43% of our members exists to primarily serve a specific group, such as young people affected by trauma, abuse or exploitation, or young carers - 49% of our members have a youth board **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, sport, arts, mental health & wellbeing and youth social action programmes and visits to our outdoor centres. During 2021-22 we operated 15 programmes and delivered multiple events with 201 members in which 13,336 young people have taken part[7,8] (2021: 256 members; 8,334 young people). We delivered 42,214 young people visit days at the Outdoor Centres (2021: 11,090; 2019, the last full year pre-pandemic: 51,290). 14,770 young people visited our outdoor centres (2021: 9,197). > 6 We used a median average because we have a large number of smaller organisations, with a smaller number of big organisations > 7 Throughout the report, the numbers of young people may not be unique as some of them take part in different opportunities and with different members. > 8 72% of young people on our programmes 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 2021-22 11 48% boys and young men _(52%),_ 49% girls and young women _(47%),_ 0.3% trans and non-binary young people 70% young people from Black and Minority Ethnic groups (73%) 11% young people with mental and/or physical disabilities (11%) Age range of programmes participants Our programmes include a structure for activities for young people delivered with and through our member youth organisations. We also support and build the capacity of youth professionals and facilitate connections and collaborations across London (see more about this in strategic objective: Drive Impact). Across our membership, the programmes were rated as _‘very good’_ , and yet again, almost all the young people who answered our surveys said they enjoyed taking part in the activities. ## **Sport** Our sport programmes and one-off events help young people, particularly those who don’t feel sport and being physically active is for them, to get active in their community in the way that best works for them and their friends. The sport programmes successfully targeted the most inactive young people and worked with specialist members to break down barriers for them to become more active. Although this year members could come back to full in-person, offline provision, for some groups, hybrid or full remote delivery was still the best way to get young people active. During the year 4,204 young people (2021: 3,565) took part in our sport programmes on regular sessions and 4,834 young people (2021: 2,417) took part in our one-off events, from 169 members. They experienced a range of sports and physical activity, including football, fencing, golf and wellbeing walks. We also supported young people with leadership potential to develop their skills through the delivery of hyper-local events in service of their community and help them achieve qualifications in the sector. ## **Youth Action** Young people taking action on issues that are important to them and shaping decision making across London, is a key area of activity. The youth action programmes support members to create their own youth-led projects, as well as making a difference in their youth organisations and wider communities, both now and into the future. In 2021-22, 609 young people (2021: 525) from 43 members took part in our youth action programmes. The programmes revolve around social issues, focusing in 2021-22 on mental health and wellbeing, food & nutrition – such as a cookbook project, safe space, and fun and creative projects. This included a live-streamed performance exploring what it’s like to be a young refugee or asylum seeker in the UK. ## **Employability** Young people feel at home at youth organisations and that is where they turn to for information, advice and guidance. This is what they are able to access 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 experience – so they can increase their future employment prospects. We recognise barriers they face such as longterm youth unemployment and racial inequality, while building self-confidence and personal London Youth Annual Report and Financial Statements 2021-22 12 development, as well as encouraging educational attainment. In 2021-22, 561 young people (2021: 805) from 28 members took part in our employability programme and 177 young people (2021: 106) took part in our one-off events. Summer grants enabled members to run activities through the summer holiday. Our new Digital Talent programme guides members to provide wrap-around support to young people, focused on the digital and technology sector. This includes personal and professional skills development, inspiration and career-focused workshops, mentoring and traineeships at a range of partnering employers. ## **Mental Health and Arts** With evidenced need for more mental health support, all our programmes include a wellbeing element. The Good for Girls (GfG) programme continued its focus on improving the mental health and wellbeing of girls and young women, incorporating elements of sports, art, mental health and youth action together. In 2021-22, 620 young people (2021: 600) from 30 members took part in the GfG programme and 243 young people (2021: 8) from 12 members took part in the Arts programme. As well as GfG’s arts and sports activities, the young people delivered social action projects such as self-care packages, community meals, LGBTQ+ rights awareness campaign, and performance events that included teaching younger children. These activities were accompanied by talking circles, to facilitate discussions around mental health and wellbeing, which proved to be an essential element of the Good for Girls programme’s success – so good that the young people copied it in some of their social action activities ## **Emergency funding** Responding to our members dire need in the height of the pandemic, in early 2021 we forged a one-off partnership with Burberry to help 15 members to ‘keep the lights on’. Members’ activities focused on providing support on one or more of three themes: education, food, and mental health and wellbeing. The programme reached 3,457 young people in total, 2,063 of them during 2021-22. Members appreciated the flexible funding which enabled them to continue providing their own core delivery. In addition, they were able to respond to needs and requests voiced by the young people, for example going to a residential as soon as Covid-19 measures enabled it: _“It truly was a great experience and one of the most transformative funding packages we’ve received to date” (Burberry programme member)_ . ## **Youth Voice** London Youth’s youth board supports the work of our Young Ambassadors and Young Advisors. The Young Ambassadors are regularly involved in our policy, media engagement and events, representing London Youth and their peers. They contribute to our Demand Change agenda, and you can read below more about their work as part of the Coming of Age programme which provided training and support for them to speak out and campaign. Some chose to take on additional responsibility to become Young Advisors, where they were regularly involved in decision making and development for London Youth. This included sitting on our Board and Committees, on recruitment panels and in consultations on new programmes. In 2020-21, the Youth Board comprised of 25 young people aged between 16-25 from our member organisations (2021: 19). They represent young people from different backgrounds who live across London. A new alumni network was started during the year, aimed at continued engagement with former youth board members to advocate and help fundraise for London Youth. ## **Outdoor Centres** Many young people in London have not left the city or have limited opportunity to do so and London Youth Annual Report and Financial Statements 2021-22 13 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. We were thrilled to host young people in the outdoor centres again during 2021-22, following the pandemic years. In addition to the school day trips that came back the year before, Hindleap Warren also began hosting residentials in June 2021. Woodrow High House had gone through a refurbishment, and residentials started there in January 2022. In total, we delivered 42,214 (2020: 11,090) young person visit days at our centres. Of those, 3,582 opportunities were for young people from 83 of our members (2021: 519; 25) – some more than once. Across our membership, members rated the outdoor centres as ‘very good’. ## 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, who may not have some of these opportunities available to them. We have been able to achieve this across the board: ## Ethnicity groups of programmes participants - 70% of young people engaged in our programmes are from Black, Asian and Minority Ethnic groups (2021: 73%). A detailed breakdown is shown in the diagram above. - We worked with slightly more females (49%) than males (48%) (2021: 48% vs 52%). Our new Sport for Development programme had more boys and young men (66%), while in other sport programmes we continued our efforts to recruit more girls and young women, especially through targeted events such as a summer football tournament. In addition, the Good for Girls programme targets young women and girls, who feel they have less opportunities: _“I feel like there are already lots of clubs for boys, but not much for girls” (young participant of Good for Girls)._ In addition, the sport programme continued to target LGBTQ+ young people in partnership with specialist members. - This year again, 11% of the young people engaging in our programmes have a disability whilst in the UK population 7% of young people have a disability[9] > 9 Public Health England report: https://www.slideshare.net/PublicHealthEngland/disabilities-in-childrenandyoung-people-in-london London Youth Annual Report and Financial Statements 2021-22 14 - 82% of the young people on our programmes are located in the most deprived communities in the country (0-30% IMD)[10] . Members and young people continued seeing the effect of the Covid-19 pandemic in 202122. Although many missed in-person interaction, the accessibility and comfort provided by online training meant getting in person proved a challenge for some programmes. For 15–18year-olds, the increased pressure caused by sitting their first exams also meant any extracurricular activities were difficult to find time for. As a result, many members continued to deliver a hybrid service, offering both online and in-person sessions. _“We are still seeing the impact of the pandemic. We are still seeing an increase in mental health issues and more severe mental health issues affecting young people, which is a barrier to employment. But also, academically wise, they are still disenfranchised when they’ve had exams cancelled in the last couple of years, they’ve been isolated at school and college. We will still see those repercussions for a number of years” (Youth worker, CVC grants)._ Our members provided a safe space for young people, an inclusive environment in which they can take part free of judgement. The fact that the young people aren’t forced to join activities means that youth workers have to keep them interested and motivated. Members talked about how using the ‘five ways to wellbeing’ approach our programmes champion, and having skilled youth workers who were supported to deliver programme activities was essential. ## **81% of the young people were doing better physically and/or emotionally (2021: 70%)** Our Getting Active programme is successfully reaching young people who are generally much less active than the wider population. 87% _have improved physical activity_ (2021: 65%), with inactivity being drastically reduced. Importantly, the programme is having a longterm impact on participants, who are also being more active outside of programme activities – with friends and family members, trying new sports, joining other sport clubs and even encouraging others to be active. In addition, many mentioned how important learning about nutrition was to keep themselves healthy. The majority of young people on our programmes _said they improved their mental health and wellbeing_ . Our programmes also worked to improve young people’s awareness of mental health and helped them find ways to discuss and reach out for help when needed: _“I enjoyed expressing my emotions during our sessions especially with the jackets like just being able to do what I think and everything and having that freedom was a good thing for me” (Young person, Feathers art programmes)._ Young people on the Jack Petchey Adventures programme were funded to go on a residential to one of our outdoor centres. For 26% of them it was the first time to be away from home overnight, with a group of their peers. 87% felt that being in nature has made a positive difference to their wellbeing. Most young people on our programmes _said they increased their confidence_ . This was a result of being able to use their voice more, feel like they’re in a safe place, and access opportunities they wouldn’t usually be able to. Increased confidence is a key outcome across all our activities, with young people connecting it to increased self-esteem and motivation. For example, a 21-year-old on our employability programme (CVC Summer grants) is now > 10 Postcode data includes participants’ home address or the location of where the programme is delivered. IMD: Indices of Multiple Deprivation London Youth Annual Report and Financial Statements 2021-22 15 travelling to different parts of London to access work, which would have been unthinkable for him only a year ago. ## **82% of young people have gained skills, knowledge and networks (2021: 78%)** Removing barriers to access opportunities was a major goal for all of our programmes. _Young people said they had improved access to opportunities_ as they had become aware of different opportunities and were able to explore them. Most of the young people said they aspire to more, after participating in the HeadStart Action employability and youth action programme. 81% of participants on the CVC summer grants employability programme have _said they’re more aware of potential career opportunities_ . In addition, 208 young people gained qualifications through employability and sport programmes. Our programmes are structured to be relevant, engaging and enabling to young people, and as a result they _said they had more or better skills and increased their knowledge_ : “ _I’m now trying to get certified for implementing performance systems and excel. The community is really nice – it’s a good environment, and I think a lot of other courses like this haven’t really implemented a friendly community with learning. It plays to each other. It gives you a reason to come, and it’s not a chore. You have fun” (Young person, Digital Talent)._ ## **75% of young people were inspired and enabled to make positive contribution to their communities (2021: 91%)** Young people improved their connections to others and to their community and reduced their isolation. Following the pandemic, young people still report high levels of isolation, and they sometimes lack the experience of social skills. Our programmes helped alleviate this and young people were able to build better connection with peers. 85% of the young people asked had _increased their participation in their community_ through our youth action programmes, interacting with a range of stakeholders. This led to a sense of community, and young people have felt more responsible. Many were also more empowered to take on leadership roles. Young people across our programmes felt they had greater voice, reporting they felt involved in shaping the project and that their youth workers were supportive. For example, over twothirds of the young people on the Young Creators art programme felt better able to express themselves. In a broader sense, the Coming of Age programme allowed young people to engage in social action projects and learn how to take an idea from conception to campaign roll-out. Our long-running youth involvement programme have been supporting young people and their youth organisations to involve young people in decision-making through training and seed funding. In an impact review we found that Members appreciated a more flexible approach where they were able to work at their own pace without time pressures to set up a formal Youth Board. Instead, the programme allowed for more critical and creative thinking about their youth involvement in general within their organisation. The review found that members embedded approaches to youth involvement and continued to build on seed funding delivered via the programme. The Summer of Sport Festival at the Queen Elizabeth Olympic Park was a highlight for London Youth in 2021-22, bringing together over 600 young people from different youth clubs London Youth Annual Report and Financial Statements 2021-22 16 to try over 25 different sports. Achieving elements of our three overarching outcomes, the young people built up their appetite for being active, experienced team building and competition but also interacted with young people they didn’t know before – and had a great time doing it. **Drive Impact:** provide a responsive, relevant and consistent offer that fuels the quality, sustainability and impact of our network ## What we did Youth professionals and youth organisations accessed our offer which aims to improve the quality of provision and the resilience of our members. We do this through training, networks, our quality assurance programme, grants, EAP (employee assistance programme), leadership development programmes and direct support. During 2021-22, 425 members took advantage of our offer (2021:350). We delivered 133 training sessions (2021: 149), 9 network sessions (2021:11) and supported over 290 members on their Quality Mark journey (2021: 230). Most of our offer remained online which enabled members to access services more easily. Whilst some training, networks and direct support started to be provided in person again. Our training offer is our most in-demand service, and during 2021-22 we conducted a training review. Members thought the training offer is highly relevant to them and liked the wide range of courses. They also felt it being reliable and free are important factors, especially to smaller organisations that wouldn’t have been able to afford training otherwise. Members wanted access and registration to be easier. In addition to digital improvements, following the review we have organised the training into three overarching areas: - Core competencies - Individual development - Organisational development Within them there are eight series, each ranging from intro to expert levels but can be accessed at will. They include: Equality, Diversity and Inclusion, Fundraising, Intro to London Youth, Monitoring, Evaluation and Learning (MEL), Mental Health, Organisational Practice, Safeguarding and Youth Work Practice. Members said this structure is useful to understand which courses are most relevant to them, allowing for a clear progression. Our training supported 924 youth workers (2021: 1,000) from 333 members who attended over 4,000 hours of professional development. In addition, some of our programmes offer specialised training, with 152 youth workers taking part (2021:56). On average, 86% of participants rated our training highly immediately after the training (2021: 89%). Across our membership, our training was rated as ‘very good’. We also continued to deliver the Rise Up leadership programme, providing training, coaching and mentorship to 89 youth professionals with lived experiences (2021:82). 97% of participants rated the training highly and said they would recommend it to peers. Our networks were attended by 224 youth professionals from our membership and other organisations in the youth sector (2021: 402) to learn and be supported by peers and 88% London Youth Annual Report and Financial Statements 2021-22 17 rated our networks highly (2021:86%). Across the membership, it received a rate as ‘very good’. Each network focus on a different topic: employability, mental health and wellbeing, impact, art and creativity, and the new safeguarding and sport networks. Our quality assurance framework, the Quality Mark, is a London Youth flagship, helping members improve their policies, procedures and practice. Across the membership, it received a ‘very good’ rating. Over a quarter of our membership, 159 members (2021: 139), held a Bronze, Silver or Gold Quality Mark (QM) in 2021. The Bronze QM review continued during 2020-21 and the new offer was launched at the end of the year. 100 members applied to our new Bronze Quality Mark programme, but we were only able to start 48 for the first cohort to receive a high level of structured support from the team. The remaining 52 were able to access the new resources and continued to work independently on the indicators in the Bronze QM framework, ahead of starting the programme in the next cohort. 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 was rated as ‘very good’. When asked what was the best thing about being a London Youth member, a member said: _“That we could reach out to our membership officer anytime and always has someone there to answer and support”_ ## What we achieved ## **Provide relevant high-quality support to youth professionals and members** Members highly valued London Youth’s bespoke, personalised and responsive support. 80% thought our offer is relevant to their needs (2021: 82%), and 76% felt they have opportunities to provide feedback, and that it is being heard. All elements of our offer were rated as ‘very good’ by our members, who find our services highly relevant. Members often mention our staff team as professional, knowledgeable, supportive and friendly, and see us as a reliable source of support. ## **Quality: Improved quality of youth work provision** Almost two-thirds (64%) of our members said that their engagement with London Youth had positively affected their quality of provision (2021:65%). 80% of the youth professionals who have engaged with us agreed that they increased their practice skills and knowledge (2021: 85%). 158 youth professionals were qualified as Designated Safeguarding Leads (DSL). Through our training offer, 90% of youth professionals said they gained knowledge (2021:89%), 87% increased their confidence (2021: 90%) and 91% said they intend to apply what they learned in their job (2021: 84%). Having access to training and networks provides members with a way to develop staff skills and implement new organisational approaches, “ _providing a better provision all round” (LY member)._ Members feel their youth workers have gained an understanding of the issues affecting young people through our offer, and the sharing of knowledge from professional trainers and peers is seen as valuable. In addition, our programme grants enable members to expand their provision, working with more young people and offering them a wider range of activities. The funding and support provided enabled members to create and deliver projects they wouldn’t have been able to deliver otherwise, with grants being relatively easily accessible to smaller organisations. London Youth Annual Report and Financial Statements 2021-22 18 ## **Resilience: Strengthened resilience of youth professionals and sustainability of youth organisations** 61% of our members said that their engagement with London Youth had positively affected their compliance and governance (2021: 71%). 53% said it did the same for their funding and fundraising (2021: 58%). Members used the resources and support they receive from our different teams and the Quality Mark process to update and reshape their policies and practice and to raise their standards. The QM specifically helped members to understand what they’re doing well and what needs to change to achieve more. Training and the QM also helped them evidence the quality of their work, which in turn supported their fundraising. On an individual level, 11 youth professionals accessed different types of therapeutic support through the Employment Assistance Programme (EAP) (2021:7). Although a small number, it’s an important element on our offer, with almost all users suffering from stress and anxiety, 55% of them work-related. The benefit of EAP was mentioned by a few youth professionals in our survey, as this support is hard to access otherwise. Youth professionals who have engaged with us agreed they now feel they are equipped to deal with challenges in their work. Almost all the participants and alumni of the Rise Up leadership programme who replied, said they are more confident to confront youth violence or conflict. The programme aims to support youth workers with lived experiences to become leaders in the sector, and alumni said they are now more confident to engage in senior and strategic level conversations. ## **Collective: Enhanced connections and collaboration within the sector** 61% of our members said their engagement with London Youth had positively affected their organisation’s connection with other youth organisations and youth professionals (2021: 52%). Many members are smaller organisations without much recourse to meeting others in the sector. Our collective opportunities can make them feel less isolated: _“… in the face of exceptionally difficult operating environments it's helpful to feel part of something and that we aren't alone” (London Youth member)._ Many would like to see us providing more networking opportunities. Consistently, members expressed the benefit of being able to learn and collaborate with other organisations. This could be through connections with employers, funders or corporates – but they especially appreciated the connections we provide online and in person, and the peer learning and support opportunities with other youth organisations. 92% of the youth professionals who have engaged with us across our offer, agreed that they have relevant and useful peer-learning opportunities through London Youth (2021: 92%). Members on programmes talked about specific support and collaboration opportunities created. And all who joined the networks and replied, agreed that the network gave them an opportunity to talk to peers or hear from them, which was useful. ## **Demand change** for young people and a better environment for youth organisations We continued to bring together the voice of London’s youth sector, advocating for long-term sustainable funding, backed by a long-term youth strategy, to sustain London’s youth sector. Throughout 2021-22, we have done this through a combination of communications, public London Youth Annual Report and Financial Statements 2021-22 19 affairs and coalition activities in which we put our members, and young people, at the forefront. Coming of Age continued to engage our Youth Board with training and workshops to develop campaigns. They developed four campaign ideas, with two going into implementation phase at the end of the year. Another important aspect of Coming of Age was to create opportunities for young people to engage directly with policy makers, and influence agendas. These opportunities included: - Youth Board member Kalliyah Kirlew taking part in the Centre for London Conference 2021, co-chairing a session that included Bell Riberio-Addy (Labour MP for Streatham). - Youth Board member Amina Meshnuni attended Virendra Sharma MP’s summer school at the House of Commons - Nine Youth Board members planned and lead an event called ‘Putting Young People at the centre of their Health Decisions & Choices’, speaking to NHS professionals and managers, other youth organisations and the Mayor of London A Youth Board member also featured on the BBC coverage of the memorial service for the Duke of Edinburgh, our former patron. A communications highlight was a dedicated segment from BBC London TV for the Summer of Sport Festival that included an interview with our CEO (see more about the event above). The event was endorsed by the Sports Minister and the Mayor of London, with senior Greater London Authority (GLA) and Department of Digital, Culture, Media & Sport (DCMS) attending. In the interview, our CEO highlighted the importance of youth work and the need for more funding. This theme was echoed in our advocacy and public affairs work where we engaged policy and funding decision makers. Responding to formal calls, we submitted a comprehensive position to the 10 Year Mental Health Plan and responded to the Government’s response to the Sewell report on race and ethnic disparities, with a strong emphasis on the need for youth workers, not police officers, in schools. We contacted all London MPs regarding the lack of funding for London in the Levelling Up agenda, and met with several London MPs from different parties, as well as London Assembly members. On the parliamentary front, we were able to secure a place for our member Leaders in Community to appear on the All Party Parliamentary Group (APPG) for Youth Affairs panel. We attended Parliamentary receptions, met with the lead minister for Mental Health in the Department of Health and Social Care and other MPs, and briefed the Mental Health minister. All this work was informed by what we hear from our members. During 2021-22 we relaunched our Policy Advisory Group, a productive engagement with youth practitioners from across our network who come together monthly to hear about and discuss policy issues, and feed into our priorities and key messages. We also continued our co-leadership of the Young Londoners Coalition, together with Partnership for Young London. This is 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. London Youth Annual Report and Financial Statements 2021-22 20 ## **Best we can be** ## Anti-racism journey We continued with our commitment to become an anti-racist organisation. We know that racism is endemic in our society and have worked 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 2021-22 we worked on achieving the targets in the Race Equality Action Plan, affirmed in August 2021. This spans six pillars: anti-racist organisation; diversity; Inclusion; education and learning; governance and accountability; and external impact. We continued the focus on embedding anti-racism throughout our organisational processes. This included putting systems in place to monitor and review our staff ethnicity and inclusion data, which received positive feedback from experts Inclusive Employers. We delivered a series of bespoke anti-racism training to the whole organisation including Trustees and launched affinity groups for staff under-represented in the organisation. With our members we sought to obtain a better understanding of the ethnic makeup of their staff and leadership teams and Trustee board. This will help us to identify the impact of our membership reach. ## Digital Worked progressed during the year on implementing the new Salesforce CRM system at London Youth, which is a key enabler to achieving our digital goals. The CRM is a key pillar in embedding digital technology as a part of our organisational approach. Particularly in creating a more consistent experience for our members and stakeholders. The CRM project has been phased, starting with our fundraising team, who completed their design and development stages in 2021/22 and are due to go live imminently. Work is on track with the development of the remaining business areas – centres, membership, programmes, policy and communications – and we hope to fully implement the new Salesforce CRM by end of summer 2023. ## Monitoring, Evaluation & Learning Our monitoring, evaluation and learning (MEL) work looks to monitor progress and evaluate the impact of our offer, proving the difference we are making and improving the way we work. During 2021-22, we created accessible and engaging ways for our team to view the data we are collecting and learn from it. This included completing a pro-bono project with volunteers from Visa Europe, who worked with us to create a dynamic PowerBI report. The report visualises the data collected from our programmes, and it enabled better data analysis. Building on the frameworks and tools established the year before, we were able to show the impact London Youth is making on its different audiences in our first impact report in recent years. In addition, our Sports team championed the development of unique impact reports to the 120 members who took part in the Getting Active programme. They were able to use this for their own learning and fundraising – a leading feature of sharing back evaluation findings with the people who benefitted from the programme. London Youth Annual Report and Financial Statements 2021-22 21 ## **Financial review** ## **Financial report** The Financial Strategy agreed by the charity in 2020 for the period to 2025 sought to achieve a break-even position of income over expenditure (before depreciation), with deficits in the intervening years to be funded from general reserve. Total Reserves held as at 1 September 2020 (the first year of the strategy) were £17.063M (2019: £16.329M), and had been bolstered by the sale of the last remaining property not in use in February 2020, which delivered net sale proceeds of £1.448M. Significantly, the level of Free Reserves held as at 1 September 2020 was £7.574M which, due to the generosity of funders during the intervening pandemic year, reached £7.896M by year end 2021. The opening Free Reserves figure for 2021-22 was therefore considerably in excess of the levels required by the level set by the Trustees within the approved Reserves Policy, comprising 3-6 months’ expenditure and estimated to be between £2M and £4M by 31 August 2025. In recognition of the ongoing impact of the pandemic and the concurrent withdrawal of government support in the form of the CJRS (“furlough”) scheme in year, which had delivered £0.289M in ‘Other Grant Income’ in 2021, the Trustees agreed to continue to fund the 2021-22 budget by £0.955M (2021: £1.496M), including continued support at London Youth’s two Outdoor Centres based in Buckinghamshire and East Sussex as they emerged from the full impact of the pandemic. In addition, the Trustees continued their commitment to building fundraising capacity by £0.178M in 2022 (2021: £0.100M) and invested £0.201M in digital capacity (2021: £0.085M) (see Note 12 re _Assets under Construction_ ); the latter to support future fundraising efforts and to improve the reach and impact of the charity. Total Income in 2022 of £7.008M (2021: £5.341M) met budget expectations within a margin of 5%. Donations and Legacies saw consistent performance at £0.708M (2021: £0.698M), when compared to the prior year figure. London Youth continued its strong track record of attracting programme funds in 2021-22 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 the post-pandemic needs of young people in the capital; delivering £3.767M to the charity in year (2021: £3.672M), to support programme funding across the capital. _Earned Income_ at the Centres performed above pandemic values at £2.275M in 2022 (2021: £0.472M) as both Centres worked towards full operability in the post-pandemic environment and in the face of significant recruitment challenges. Trading income also performed better in 2022; realising almost twice the prior year income at £0.070M (2021: £0.038M). London Youth Annual Report and Financial Statements 2021-22 22 Although a number of key programmes wound down in year, notably those which had provided emergency pandemic relief, restricted programme expenditure remained on a par with prior year at £3.208M (2021: £3.510M). This included expenditure of £0.186M on HeadStart Action (2021: £0.544M); £0.320M on Burberry Foundation support for members (2021: £0.450M); £0.512M on Getting Active (2021: £0.421M); £0.460M on Rise Up (2021: £0.375M; £0.533M on Good for Girls (2021: £0.350M) and £0.176M on JP Morgan Employability (2021: 0.019M). Included in this spend was a total of £1.065M (2021: £1.567M) in direct grants to members, with a notable rise of 25% at £0.624M (2021: £0.468M), comprising grants of under £10k to help build capacity in sector, as London Youth continued to support members and young people during the period of post-pandemic recovery. The ratio of overall expenditure of £8.098M (2021: £6.625M) to Income of £7.008M (2021: £5.052M - excluding CJRS payments received in 2020-21 under _Other Grant Income_ ) in 2022, represents an improvement of over 13% in the prior year outturn as London Youth returns to a ‘break-even’ position, following the impact of the pandemic on _Earned Income_ at the Centres. To make best use of the pandemic ‘downtime’ available, the decision was taken in early 2020 to carry out extensive refurbishment at Woodrow High House in Buckinghamshire at a total cost of £0.704M. Included in this figure were actual refurbishments to Woodrow High House of £0.653M (2021: £0.117M), of which £0.424M has been included within _Land & Property_ additions in the Balance Sheet, together with part-construction costs in respect of the installation of a biomass boiler at the site of which £0.340M (2021: £nil) has also been included as an _‘asset under construction’_ ( _see also Note 12_ ). It was agreed that the most cost-effective way to fund the biomass boiler installation would be by way of application for capital release from the Joseph Levy Endowment Trust (JLET), who had funded a similar project in 2015. The Board of JLET agreed to release £0.560M to fund the project, which comprised £0.490M of repayable investment capital. Formal permission was granted by the Levy Family Representative, in line with the Trust’s governing document, on the last day of the financial year, 31 August 2022 and the cash was released by the Trust in September 2022. Significantly, had the charity’s investments performed to the level seen in 2021 which saw investment gains of £1.053M, these investment decisions would have been fully covered. Although market values dipped in September 2021, they recovered well in the period to end of January 2022. However, what started as a slow decline of investment values in February 2022 showed no sign of reversal as the markets demonstrated increased volatility as a result of economic uncertainly. Against this backdrop, the value of London Youth’s portfolio dropped by £0.810M; taking overall losses to £0.729M. London Youth Annual Report and Financial Statements 2021-22 23 ## **Investment performance** The opening value of London Youth’s investment portfolio was £8.381M as at 1 September 2021 (excluding ‘other investments’ of £0.012M, per Note 13); comprising of two main portfolios; one of which is held at Sarasin & Partners (£5.967M) and the other at CCLA (£2.414M). Included in the opening balance of the Sarasin & Partners portfolio is £1.635M 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 2022 was £0.184M (2021: £0.165M). However, 2022 was notable in terms of ongoing market volatility which saw a reversal of some of the £1.053M gains in prior year; with losses of £0.729M incurred. The closing value of the share investment portfolio was £7.571M as at 31 August 2022. The closing figure for total investments - including ‘other investments’ – was £7.583M as at 31 August 2022. London Youth Annual Report and Financial Statements 2021-22 24 ## **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: - **[Unrestricted:]**[ are available to be applied, at the discretion of the Trustees to any of ] London Youth’s charitable purposes. This includes designated funds which have been put aside by the Trustees for specific future purposes. - **[Restricted:]**[ are to be applied to the specific purpose intended by the donor. ] - **[Endowment:]**[ are restricted funds that are to be retained for the benefit of London Youth ] as a capital fund. Permanent endowments require the capital to be maintained and only the income and capital growth can be utilised. 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: - [Provide sufficient working capital for the following year and to provide against a downturn ] in revenue generation and an uncertain fundraising climate. - [Mitigate the risk of unforeseeable expenditure, with particular regard to ownership of the ] two residential centres which require ongoing capital investment. - [Support innovative programmes where such require a period of development and testing ] prior to proving their case to external funders. - [Invest in organisational development and infrastructure to better support front-line ] delivery and boost long-term stability and sustainability. London Youth believes that its unrestricted (free) 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 £2M and £4M. The Trustees continue to monitor the ongoing impact of the pandemic and ongoing investment decisions in terms of the longer-term depletion of Reserves. Based on longerterm 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 of £15.014M (2021: £16,833M), less the value of the Permanent Endowment, £1.509M (2021: £1.6M); Restricted Programme funds, £0.659M (2021: £0.653M) and Fixed Asset reserve, £7.324M (2021: £6.605M) - is £5.522M (2021: £7.941M). . This figure is consistent with the financial strategy aim to provide support from ‘free’ reserves of £0.800M in the remaining years of the strategy to 2025 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 which is consistent with the adopted policy and ongoing organisational requirements. London Youth Annual Report and Financial Statements 2021-22 25 ## **Going concern** The financial year ending 2021 saw an excess level of free reserves of £7.941M (2020: £7.574M), which had been bolstered by the sale of the last remaining unused property in February 2020; netting £1.448M to the charity. The Trustees recognised, in setting budgets for the period of the Financial Strategy 2020-2025, that ongoing budget support would be required to enable the charity to move to a net surplus in terms of in-year unrestricted income and expenditure; thereby reducing the historical dependency on property sales to bridge successive year deficits. The Trustees also recognised that ongoing investment would be required at the Centres to maintain the properties to optimum aesthetic and health and safety standards as well as investment to building the charity’s fundraising and digital capacity. While the charity netted a saving of £0.330M compared to the budgeted target deficit of £0.955M in 2022 the decision, taken in early 2020, to provide budget support of £0.280M for the refurbishment project costing £0.704M at Woodrow High House (of which £0.424M was capitalised in year), coupled with ongoing revenue support for fundraising and digital capacity of £0.185M in 2022 (2021: £0.185M) led to an overall deficit, before investment gains/losses, of £1.090M (2021: £1.284M), of which £1.093M (2021: £0.731M) related to unrestricted funds (Free Reserves). Investment losses of £0.729M (2021: gain £1.053M), of which £0.617M related to General Fund (2021: gain £0.877M) combined with negative net transfers of £0.664M (2021: £0.101M) and operational losses of £1.093M to take the reduction in Free Reserves from the opening balance of £7.896M to £5.522M by 31 August 2022. The Trustees have reprofiled the drawdown on Free Reserves to the end of the current financial strategy in 2025 and, based on the Reserves Policy requirement to hold between 3- 6 months’ expenditure, have adopted a six-month reserve target of £4M and are carefully monitoring progress against the budget targets set out within that timeframe. The Trustees are confident that investment in outdoor education opportunities, as well as fundraising and digital, will provide further growth impetus demonstrated by the postpandemic results we have already seen at the Centres, where _Earned Income_ grew in year to £2.275M in 2022 (2021: £0.472M) and trading income to £0.070M (2021: £0.038M). Unrestricted Income has seen additional growth in 2022 via _Donations and Legacies_ at £0.698M (2021: £0.339M), supported by investment in fundraising and digital technologies, against a backdrop of robust programme funding which delivered £3.767M in year (2021: £3.672M). Having regard to the foregoing and, given the current level of Free Reserves at £5.522M which is equivalent to >8 months’ expenditure using the target of between £2M and £4M required by 2025, the 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 these reasons, the Board of Trustees continues to adopt the going concern basis of accounting in preparing the accounts. London Youth Annual Report and Financial Statements 2021-22 26 ## **Principal funding sources in 2021-22** 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 2021-22: ## **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 ## **Trusts, Foundations and Statutory organisations** DCMS Tampon Tax Fund Arts Council C A Redfern Charitable Foundation Centre for Youth Impact City Bridge Trust East Grinstead Common Good Trust Garrick Club Gigglemug Charitable Trust (Ludlow Trust) Girdlers' Company Charitable Trust GLA Golden Bottle Trust Golf Foundation Hale Trust Hall Charity TST HS2/Groundwork Islington Council iWill London Sport Jack Petchey Foundation James Wise CT (Marshalls Solicitors) Jimmy Dixon Charitable Trust John Scott Chartiable Trust Lawson Trust Maurice Marks Charitable Trust Morrisons’ Foundation National Lottery Heritage Fund Portal Trust Rockcliffe Charitable Trust Roger & Jean Jefcoate Trust Salters’ Company Sir Jeremiah Colman Trust Sulgrave Foundation Sport England The 29th May 1961 Charity The Clare Foundation The Hobson Charity The Roland Callingham Foundation Trust for London Tudor Foundation Violence Reduction Unit ## **Companies and organisations** Benevity BNP Paribas British Fencing Burberry EE/BT Clifford Chance CVC Capital Partners Gilead JP Morgan Hiscox Foundation Kinleigh Folkard and Hayward Lacoste London & Partners M&G plc Community Fund RDAS Sigma Capital Property Limited UBS VISA Wernick Group **In-kind support** Montagu Evans Jones Lang LaSalle (JLL) Savills JPMC/Good Things Foundation London Youth Annual Report and Financial Statements 2021-22 27 ## **Plans for the future** ## **Priorities for 2022-23** Our priorities for the coming year include: - Ensure the smooth delivery of London Youth’s improved Quality Mark programme which includes the launch of a Quality Mark Resources Library and redesign of the Silver and Gold Quality Mark Frameworks. - As part of the member engagement strategy, ensuring member satisfaction in changes to customer service and delivery of core services. - Enhance outdoor opportunities and learning for young people at the Centres – there are several elements of this work continuing in the year ahead: - A review of the learning and evaluation methodology at the Centres, ensuring that we learn more from our delivery such that it informs us of the ways we can improve in future (this was postponed from 2021-22). - With the support of professional advisors, establish our vision for the Centres for the years ahead, helping to inform where we invest in the maintenance and development of our sites. - Repeat and grow the funding available to our members to support them in being able to attend residential and outdoor adventure experiences. - Continue to collaborate with sector funders and partners, and expand our philanthropic income opportunities, to improve efficiencies and help develop better outcomes for young Londoners. - We will provide opportunities to young people through arts, sports, youth social action and employability – and where possible, we will also provide additional cost of living support to members through food and contributions towards increased utility costs. - Through consultation with young people and our members, we will develop new programmes and areas of support to tackle emerging needs. - We will provide specific tailored support to youth workers to ensure they are equipped to deal with the increasing mental health needs of young people. - Focus on policy and influencing work - which continues to build the case on key structural issues affecting youth provision in London - Complete the design and implementation of the new CRM project in the remaining parts of the organisation, as we work to achieve greater digital efficiencies. - Continue to make further strides on our journey to becoming an anti-racist organisation as we implement our race equality action plan; engage with our members to learn, share and amplify challenges, as well as good practice across our networks. London Youth Annual Report and Financial Statements 2021-22 28 ## **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 monitors and manages activities that may result in a participant or member of staff being seriously injured or killed. This is especially the case 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 & Environment and external technical experts. Specifically; - [adventurous activities are professionally built and inspected regularly. Trees located ] around activity locations are regularly inspected by professional arboriculturists; - [appropriate training is provided to instructors, including supervision of new employees ] until their competence can be validated; - [all activities are risk assessed, and appropriate control measures put in place. Staff ] carry out checks on personal safety equipment and on activity equipment before activities take place; - [Swimming pools are operated by staff with appropriate training and with two lifeguards ] on duty (or holders of an equivalent qualification) at all times; - [Minibuses are driven by staff who hold relevant qualifications and training, and buses ] are inspected regularly to ensure they are roadworthy; and - [Both of our Outdoor Centres hold external accreditations to warrant their fitness to ] operate. Hindleap Warren is also licensed by the Adventurous Activities Licensing Authority in respect of certain activities that we run there. 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. London Youth Annual Report and Financial Statements 2021-22 29 ## **Safeguarding** London Youth’s staff and volunteers are all vetted at recruitment stage. This includes undertaking a DBS check at the level appropriate to each role, providing a declaration of criminal convictions and references from former employers. All staff attend safeguarding training within three months of joining the organisation. This is then refreshed every three years. London Youth has established a cross-organisational Safety and Safeguarding Team which meets regularly to discuss, review and respond to new issues and events. We have a Designated Safeguarding Lead, supported by a group of Designated Safeguarding Officers. These individuals are the route for all reporting of safeguarding concerns across the charity. ## **Member engagement** Following a previous growth in membership across the network, the number of members stood at 587 at year end 2021-22. There was an attrition rate of 3% from the previous year’s total members of 606 in 2020-21. Members remain actively engaged, where there were 425 members (72%) engaged with a part of the London Youth offer. A further 191 members (32%) engaged with more than one aspect of the offer; and 194 members (33%) engaged with our progammes. Between Q1 - Q4, we decreased the number of members not engaged with our offer from 54% to 28% - and overall, our engagement data demonstrates that throughout the year, it’s easier to continue to engage members already interacting with us. Improvements to our digital infrastructure has also enabled our improved member engagement. ## **Financial sustainability** The greatest risk currently posed to the financial sustainability of the charity is the ongoing uncertainty posed by the post-pandemic economic environment and subsequent impact on _Earned Income_ at the Centres; for now, London Youth’s primary source of unrestricted income. The charity has demonstrated its capacity to be alert to such existential 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. The charity has invested in the physical and virtual infrastructure to support growth and has already started to see positive results from this strategy. However, Trustees are focused on the longer-term risk to the financial stability of the charity by placing too great an ‘ask’ on free reserves to support in-year budget deficits and/or ongoing investment. As a result, London Youth will continue to monitor and control budget appropriately in terms of direct and indirect costs required to successfully deliver a wide range of activities at the charity. London Youth Annual Report and Financial Statements 2021-22 30 ## **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. Having seen an uplift in _Donations and Legacy_ income in 2020-21 to £0.697M (2020: £0.263M) London Youth continued to see growth in 2022 to £0.708M, supported by investment in fundraising and digital technologies, against a backdrop of robust programme funding which delivered £3.250M in year, compared to £2.9M 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 2021-22 31 ## **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 2021-22 32 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 10 (2021:13) at 31[st] August 2022. Trustees that served during the year are detailed on page 69 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. Three Trustees resigned before the 2022 AGM, who were Sue Asprey-Price, Louise Rodgers and Mario Washington-Ihieme. London Youth would like to thank all three for their contribution to the charity during their time as Trustees. 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 and, in 2022, commenced the recruitment process for four new Trustees, with a focus on improving the Board’s skillset and diversity profile. The Board co-opted three new Trustees elect at their July 2022 meeting who are Michael Bishop, Julie Milne and Nimtaz Tanya-Noordin. The co-opted Trustees, together with a fourth, Mohammed Motin a former member of London Youth’s Youth Board who was co-opted at the Board’s November meeting, will be proposed by the Trustees for election at the 2023 AGM. Having implemented the Charity Governance Code for Large Charities, including _Principle 6: Equality, Diversity and Inclusion,_ the Board is committed to building on past high standards achieved and ongoing commitment to continual improvement in these areas. The charity continued to focus on its Race Equality work in 2022 and continued to hold quarterly _Race Equality Action Stakeholder Group_ meetings, chaired by Charline King, Trustee. Ongoing _Race Equality Training_ was also provided to new Trustees and staff alike. London Youth Annual Report and Financial Statements 2021-22 33 ## **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, Director of Fundraising and Director of Programmes meet 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 as well as quarterly _Race Equality Action Stakeholder Group_ meetings who are convened by the Director of Engagement and chaired by Charline King, Trustee. ## **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, a new Youth Board was convened and decision-making processes strengthened to involve young people in decision-making fora in three distinct ways: - ➢ **Ambassadors:** young people are visible within the wider sector; their voices heard and positioned to influence change - ➢ **Advisers –** young people are a key part of London Youth organisationally and regularly involved in decision-making and development - ➢ **Alumni –** young people who have been a part of London Youth’s Youth Board can remain connected and contribute to change. ## **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. London Youth Annual Report and Financial Statements 2021-22 34 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. 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 continued to grow its fundraising team in 2022 to 7 staff (2021: 6) in total, including the Director of Fundraising who was appointed in November 2020 to lead the team and realise a long-held ambition to resource the charity to continue to work with existing funders and to take active steps to diversify and increase its unrestricted income. 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 90 (2021: 84) full time equivalent staff, 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 increase in staff numbers marked the removal of pandemic restrictions and return to wider operations. Significant recruitment challenges at the Centres were supported by a commitment, as part of a _Total Reward Framework_ (TRF) review to becoming a Real Living Wage employer in 2022-23, when staff numbers will be set to increase further. London Youth is committed to the wellbeing of staff and the charity continued to deliver a wide range of wellbeing supports to support hybrid working environments as the charity commenced its post-pandemic recovery. Regular health and wellbeing checks are carried out on a 1:1 basis and, in 2022, the charity reviewed its overall benefits package as part of a Total Reward Framework review and added additional benefits – including a Health Care Cash Plan – effective in the 2022-23 financial year. London Youth Annual Report and Financial Statements 2021-22 35 ## 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. In 2022 London Youth ran a competitive tender process to support a review of its pay and conditions to ensure competitiveness within a dynamic post-pandemic labour market. The principles underpinning the _Total Reward Framework_ (TRF) review, supported by AJG Consulting, were: - _Fairness:_ policies and processes should ensure that colleagues feel fairly treated and recognised for their contribution to the organisation. - _Market Alignment_ : pay, benefits and policies should be competitive in the market place, for example, base salary is positioned at the median of the voluntary/not-forprofit sector. - _Flexibility:_ reward programmes should provide sufficient flexibility to attract, recruit and retain outstanding talent, and recognise differing colleague needs throughout the employee life-cycle. - _Cost Efficiency:_ the charity should base its reward policies on affordability as a key consideration and in light of financial sustainability challenges. In determining pay policy, following a rigorous job levelling exercise carried out across the organisation for all roles/grades, the objective is to maintain a fair and equitable approach to rewarding colleagues and balancing their wellbeing needs, while ensuring that the charity is positioned competitively in the sector in order to effectively attract and retain talent. In recognition of escalating cost-of-living pressures, the Trustees awarded a 3% cost-ofliving increase to staff as part of the budget-setting process in July 2022 as well as making a key commitment to be a _Real Living Wage_ employer, effective from 1 September 2022. Where applicable, a number of staff also received a TRF uplift, equivalent to 2% of the total salary budget for 2022-23 of £4,873M, to align their base salary to the median of relevant roles within the voluntary/not-for-profit sector. Future roles will be benchmarked to the TRF scales, and any new roles will be subjected to the job evaluation/levelling tool. Key management personnel currently comprise the Chief Executive, Director for Centres, Director of Engagement, Director of Finance & Resources, Director of Fundraising and Director of Programmes. See note 11 for the total remuneration of these roles. London Youth Annual Report and Financial Statements 2021-22 36 ## **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: - [Select suitable accounting policies and then apply them consistently; ] - [Observe the methods and principles in the Statement of Recommended Practice ] (Accounting and Reporting by Charities) (the Charities’ SORP FRS 102); - [Make judgements and estimates that are reasonable and prudent; ] - [State whether applicable United Kingdom Accounting Standards have been followed, ] subject to any material departures disclosed and explained in the financial statements; - [Prepare the financial statements on the going concern basis unless it is inappropriate ] to presume that the charity will continue in operation. 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: - [So far as the Trustee is aware, there is no relevant audit information of which the ] charity’s auditors are unaware; and - [They have taken all the steps that they ought to have taken as a Trustee in order to ] make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information. 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: 30 March 2023** London Youth Annual Report and Financial Statements 2021-22 37 ## **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 2022 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: - [give a true and fair view of the state of the Group’s and the charitable company’s ] affairs as at 31 August 2022 and of its income and expenditure, for the year then ended; - [have been properly prepared in accordance with United Kingdom Generally ] Accepted Accounting Practice; and - [have been prepared in accordance with the requirements of the Companies Act ] 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 2021-22 38 ## **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 - [the information given in the trustees’ report, which includes the directors’ report ] and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - [the strategic report and the directors’ report included within the trustees’ report ] have been prepared in accordance with applicable legal requirements. ## **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: - [adequate and proper accounting records have not been kept; or ] - [the financial statements are not in agreement with the accounting records and ] returns; or - [certain disclosures of trustees' remuneration specified by law are not made; or ] - [we have not received all the information and explanations we require for our audit. ] ## **Responsibilities of Trustees** As explained more fully in the trustees’ responsibilities statement set out on page 37 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 2021-22 39 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 2021-22 40 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 **London** Date: 3 April 2023 London Youth Annual Report and Financial Statements 2021-22 41 ## **Financial Statements** ## **Statement of Financial Activities** ## Consolidated Statement of Financial Activities Including Income and Expenditure year to 31 August 2022 |
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


**Total income**

**Expenditure on:**
Raising funds
6
Charitable activities
7

. Development
. Opportunity
. Voice
. Best We Can Be
Other
8

**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**
16|Unrestricted
Funds
£|Restricted
Funds

£|Permanent
endowment
£|
**Total**

**2022**
**£**|Total
2021
£| |---|---|---|---|---|---| ||

698,063
81,133
2,795,844
-
6,647
-
73,781
141,524|

10,000
1,170,263
1,935,257
52,899
-

-
-
-|

-
-
-
-
-

-
-
42,847|

**708,063**
**1,251,396**
**4,731,101**
**52,899**
**6,647**

**-**
**73,781**

**184,371**|
697,552
1,193,134
2,879,421
63,424
7,555

289,217
43,390
168,049| ||3,796,992|3,168,419|42,847|**7,008,258**|5,341,742| ||

486,912

80,652
3,229,437
34,564
1,052,308
6,482|

-
1,286,023
1,816,854
105,286
-
-|

-
-
-
-
-
-|

**486,912**
**1,366,675**
**5,046,291**
**139,850**
**1,052,308**
**6,482**|
238,481
983,154
4,459,947
124,101
810,433
9,210| ||4,890,355|3,208,163|-|**8,098,518**|6,625,326| ||

(616,727)
(1,710,090)

55,485|

-

(39,744)

307|

(112,434)
(69,587)
(55,792)|


**(729,161)**
**(1,819,421)**

-|
1,053,573
(230,011)
-| ||(1,654,605)
14,500,201

|
(39,437)

697,979

|
(125,379)

1,634,806

|**(1,819,421)**
**16,832,986**

|(230,011)
17,062,997
| ||12,845,596|658,542|1,509,427|**15,013,565**|16,832,986| 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 2021-22 42 ## **Balance Sheet** ## Company and Group Balance Sheet as at 31st August 2022 Company Number 0258577 |Notes

**Fixed assets**
Tangible fixed assets
12
Investments
13



**Current assets**

Debtors
14
Cash at bank and in hand

**Creditors**:

falling due within one year
15
**Net current assets**


**Total net assets**


**Represented by:**
**Funds and reserves**
16

Permanent endowment funds
Restricted funds
Unrestricted funds
. General funds
. Designated funds
|**Group**
**2022**
**£**
**7,324,020**
**7,582,956**
**14,906,976**


**680,310**
**373,340**
**1,053,650**

**(947,061)**
**106,589**

**15,013,565**

**1,509,427**
**658,542**
**1,558,508**
**11,287,088**
**15,013,565**|**Charity**
**2022**
**£**|Group
2021
£|Charity
2021
£| |---|---|---|---|---| |||

**7,324,020**

**7,582,958**|


6,604,666

8,392,965|

6,604,666

8,392,967| |||
**14,906,978**|14,997,631|
14,997,633| |||

**790,323**

**253,302**|
512,197

2,264,417|
543,804

2,224,048| |||
**1,043,625**|
2,776,614|
2,767,852| |||

**(937,038)**

**106,587**
|
(941,259)

1,835,355|
(932,499)

1,835,353| |||
**15,013,565**|16,832,986|16,832,986| |||
**1,509,427**

**658,542**


**1,558,508**

**11,287,088**
|
1,634,806

652,741

3,250,787
11,294,652|
1,634,806

652,741

3,250,787
11,294,652| |||
**15,013,565**|16,832,986|16,832,986| Total income for the charity was £6,938,226; with total expenditure and losses at £8,821,196 - giving a net deficit of (£1,882,970). Approved by the Trustees and signed on their behalf by: ## **Stephen Moss** Chair **Morenike Ajayi** Treasurer ## On 30 March 2023 Notes 1 to 22 form part of these accounts. London Youth Annual Report and Financial Statements 2021-22 43 ## **Cash Flow** ## Group Cash Flow Statement for the year ended 31st August 2022 |**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 2022**|**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 2022**||**2022**
**£**

**(1,103,079)**
**184,051**
**-**
**(1,052,811)**
**195,849**
**(672,911)**
**(1,775,990)**
**2,313,368**
**537,378**
**2022**

**£**
(1,819,421)
333,544
-
729,161
(184,051)
(168,113)
5,801
**(1,103,079)**
**2022**
**£**
373,340
164,038
**537,378**||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| |**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**|||||| ||||||| ||
|
|||| ||||||| Notes 1 to 22 form part of these accounts London Youth Annual Report and Financial Statements 2021-22 44 ## **Notes to the Financial Statements** Notes to the Financial Statements as at 31st August 2022 ## **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 2021-22, 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 2022. ## 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 2022, having assessed the principal financial risk facing the charity, which is its overall sustainability in the face of exogenous threat. As revenues at the charity’s Outdoor Residential Centres continue to recover in 2021-22, the major uncertainty facing the charity relates to the potential for further disruption as a result of the prevailing weak economic outlook for the UK and, indeed, the threat of pandemic variants which may effect closure and/or staffing levels which may lead to a fall-off in demand at the charity’s outdoor Centres. The Trustees have reprofiled the drawdown on Free Reserves to the end of the current financial strategy in 2025 and, based on the Reserves Policy requirement to hold between 3-6 months’ expenditure, have adopted a six-month reserve target of £4M and are carefully monitoring progress against the budget targets set out within that timeframe. The Trustees are confident that investment in outdoor education opportunities, as well as fundraising and digital, will provide further growth impetus demonstrated by the post-pandemic results we have already seen at the Centres, where _Earned Income_ grew in year to £2.275M in 2022 (2021: £0.472M) and trading income to £0.070M (2021: £0.038M). Unrestricted Income has seen additional growth in 2022 via _Donations and Legacies_ at £0.698M (2021: £0.339M), supported by investment in fundraising and digital technologies, against a backdrop of robust programme funding which delivered £2.381M in year, compared to £1.581M in 2021. Having regard to the foregoing and, given the current level of Free Reserves at £5.543M which is equivalent to >8 months’ expenditure using the target of between £2M and £4M required by 2025, the Trustees believe there are sufficient resources available to manage the current operational risk, London Youth Annual Report and Financial Statements 2021-22 45 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. ## 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 including theatre tickets for young people, provision of meeting rooms, provision of laptops and football boots for member clubs which have been recognised in the financial statements at a combined value of £45,868 (2021: £nil). 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. ## 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. London Youth Annual Report and Financial Statements 2021-22 46 ## **Assets under Construction** The value of Assets under Construction as at 31 August 2022, include a Biomass Boiler valued at £339,485 situated at Woodrow High House; as well as CRM development work valued at £200,679 as at the balance sheet date (see also Note 12). No depreciation is applied to Assets under Construction in year. ## **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 20% 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. ## j) Pension costs The Charity makes payments into an auto-enrolment defined contributions pensions scheme operated by The People’s Pension. London Youth Annual Report and Financial Statements 2021-22 47 ## 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 2021-22 these were payments made by City Bridge Trust to organisations achieving a Quality Mark award, totalling £46,000 (2021: £71,500). ## 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 2021-22 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 2021-22. London Youth Annual Report and Financial Statements 2021-22 48 ## **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
Funds
£
698,063
698,063
Unrestricted
Funds
£
-
-
Unrestricted
funds
£
3,750
70,031
73,781
Unrestricted
funds

£
141,204
320
141,524|Restricted
funds
£|







|
**Total**
**2022**
**£**
**708,063**
**708,063**

**Total**
**2022**
**£**
**-**
**-**
**Total**
**2022**
**£**
**3,750**
**70,031**
**73,781**
**Total**
**2022**
£||Total
2021
£| ||||10,000||||697,552| ||||10,000||||697,552| ||||Restricted
funds
£||||Total
2021
£| ||||-||||**289,217**| ||||-||||**289,217**| ||||Restricted
funds
£|||



|Total
2021
£
5,856
37,534
43,390
Total
2021
£
165,218


2,831
168,049| ||||-
-||||| ||||-||||| ||||Endowment
Funds
£||||| ||||42,847


-|


|**184,051**
**320**||| ||||42,847||**184,371**||| London Youth Annual Report and Financial Statements 2021-22 49 ## **6. Expenditure on raising funds** |
Fundraising costs
|Staff
costs
£
382,567
382,567|Other
costs
£
104,345
104,345|**Total**
**2022**
**£**
**486,912**
**486,912**|Total
2021
£| |---|---|---|---|---| |||||**238,481**| |||||**238,481**| ## **7. Expenditure on charitable activities** |Development

Opportunity

Voice
Best We Can Be
_*see note 8_
|Direct
costs
£
1,153,425
4,345,615
99,230
991,379
6,589,649|Support
costs*
£
213,250
700,676
40,620
60,929
1,015,475|**Total**
**2022**
**£**
**1,366,675**
**5,046,291 **
**139,850**
**1,052,308**
**7,605,124**|Total
2021
£| |---|---|---|---|---| |||||983,154
4,459,947
124,101
810,433| |||||6,377,635| London Youth Annual Report and Financial Statements 2021-22 50 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 Change Arts Ltd
BIGKID Foundation
Clore Partner
Focus CIC
Goals4Girls
Hackney Quest
Indoamerican Refugee and Migrant Organization (IRMO)
Kentish Town Community Centre
Kids N Action
Knights Youth Centre
Leaders in community
Leap Confronting Conflict
Lewisham Irish Community
Lewisham Youth
Paddington Arts
Play Place
Reaching Higher
Salaam Peace
Somerville Youth & Play
South Central Youth Ltd
Spiral Skills CIC
St Matthews Project
Sulgrave Club
TAG Youth Club
Teen Action
The Avenues Youth Project
The Salmon Youth Centre
Trapped in Zone One
Waltham Forest Community Hub
XLP
Young Urban Arts Foundation
Zest of Mind
Grants £10k and under for programme delivery
**Grants to Institutions**|**2022**
**£**
**11,061**
**14,562**
**18,903**
**19,580**
**-**
**9,050**
**800**
**12,962**
**15,000**
**-**
**15,000**
**18,000**
**30,062**
**-**
**15,000**
**15,000**
**15,500**
**19,142**
**14,762**
**5,350**
**14,062**
**15,000**
**21,062**
**16,500**
**21,800**
**16,750**
**15,000**
**5,290**
**7,117**
**10,660**
**11,062**
**4,000**
**22,000**
**10,080**
**624,448**
**1,064,565**|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
-
468,432| |---|---|---| |||**1,566,566**| There were no Microgrants made to individuals and groups of young people (2021: £3,844) London Youth Annual Report and Financial Statements 2021-22 51 ## **8. Other Expenditure** Other costs (LYTC) |**Total**
**2022**
**£**
**6,482**
**6,482**|Total
2021
£| |---|---| ||9,210| ||9,210| ## **9. Support costs** ||Developm
ent
£|Opportunity
Voice
£
£|Best We
Can Be
£|Fund-
raising
£|**Total**
**2022**
**£**|Total
2021
£| |---|---|---|---|---|---|---| |Finance
HR
IT
Governance (note 11)
London Office
Safety & Safeguarding|46,330
152,228
8,825
4,412
8,825
**220,620 **228,289
65,210
214,263
12,421
6,211
12,421
**310,526 **204,258
47,071
154,661
8,966
4,483
8,966
**224,147 **177,795
23,165
76,114
4,412
2,206
4,412
**110,309**
96,518
23,972
78,765
4,566
2,283
4,566
**114,152 **135,893
7,501
24,645
1,429
714
1,429
**35,718**
31,968|||||| ||213,249
700,676
40,619
20,309
40,619**1,015,472** 874,721|||||| Support costs have been allocated based on full-time equivalent headcount. ## **10. Governance costs** |**10. Governance costs**||| |---|---|---| |Auditor’s remuneration
Current year audit fees
Non audit fees
Trustee Indemnity insurance
Salary Costs
Other
Trustee expenses|**Total**
**2022**
**£**
**36,800**
**1,500**
**5,331**
**45,622**
**21,000**
**56**
**110,309**|Total
2021
£| |||45,360
6,323
4,950
36,318
3,511
56| |||96,518| London Youth Annual Report and Financial Statements 2021-22 52 ## **11. 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**
**2022**
£
**3,084,266**
**288,190**
**14,924**
**139,975**
**3,527,355**
**318,605**
**3,845,960**|Total
2021
£| |---|---|---| |||2,669,416
251,897
10,760
116,514| |||3,048,587| |||65,137| |||3,113,724| No termination payments were made in 2022 (2021: £nil). However, redundancy costs of £14,924 (2021: £10,760 were incurred in 2022. |

**Group and charity**


Staff costs during the year were as follows:

Charitable activities

. Development

. Opportunity


. Voice

. Best We Can Be

Fundraising


|**Total**
**2022**
**£**
**370,005**
**2,367,927**
**222,566**
**551,220**
**334,242**
**3,845,960**|Total
2021
£| |---|---|---| |||225,972
2,262,189
100,267
385,721
139,575| |||3,113,724| 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/Resourcing
Fundraising
**Total**|**2022**
**Number**
**8**
**79**
**7**
**13**
**6**
**113**|**2022**
**FTE**
**8**
**58**
**7**
**11**
**6**
**90**|2021
Number
8
74
7
13
5
107|2021
FTE| |---|---|---|---|---| |||||8
52
7
12
5| |||||84| London Youth Annual Report and Financial Statements 2021-22 53 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|**2022**
**Number**
1
-
5|2021| |||Number
-
1
3| 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 for Centres, Director of Engagement, Director of Finance & Resources, Director of Fundraising and Director of Programmes. The total taxable benefits and employers' pension and National Insurance contributions of the key management personnel for the year was £504,272 (2021: £508,030). No Trustees received remuneration in respect of their services as a Trustee during the period (2021: £nil). Similarly, no Trustee received travel expenses reimbursement during the period (2021: one Trustee £56). The charity has a Trustee indemnity insurance policy in force for which the charge for the period was £5,331 (2021: £4,590). London Youth Annual Report and Financial Statements 2021-22 54 ## **12. Tangible fixed assets** |**Cost or valuation**
At 1 September 2021
Additions
(Disposals)
At 31 August 2021
**Depreciation**
At 1 September 2021
Charge for year
(Disposal)
At 31 August 2021
**Net book values**
At 31 August 2022
At 31 August 2021|**Land and**
**Property**
**£**
9,920,261
425,841
-
10,346,102
3,685,970
223,114
-
3,909,084
**6,437,018**
6,234,203|**Assets Under**
**Construction***
**£**
-
540,164
-
540,164
-
-
-
-
**540,164**
-|**Furniture,**
**fixtures &**
**equipment**
**£**
887,398
43,777
-
931,175
571,924
78,116
-
650,040
**281,135**
315,474|**Motor**
**vehicles**
**£**
22,077
-
(2,100)
19,977
8,503
2,323
(2,100)
8,726
**11,251**
13,574|**Computers**
**£**
236,719
43,029
-
279,748
195,305
29,991
-
225,296
**54,452**
41,414|**Total**
**£**| |---|---|---|---|---|---|---| |||||||11,066,455
1,052,811
(2,100)| |||||||12,117,166| |||||||4,461,702
333,544
(2,100)| |||||||4,793,146| |||||||| |||||||**7,324,020**| |||||||6,604,666| The value of Assets under Construction as at 31 August 2022, include a Biomass Boiler valued at £339,485 situated at Woodrow High House; as well as CRM development work valued at £200,679 as at the balance sheet date. 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: Reason for non-valuation Insurance Value (£) Westminster House Youth Club, London** Held on Trust 450,000 _** The lease relating to Westminster House Youth Club was transferred to Westminster House Youth Club on 19 January 2023 and the property is no longer held in trust by London Youth (see also Note 22)._ London Youth Annual Report and Financial Statements 2021-22 55 ## **13. Investments** |**13. Investments**||||| |---|---|---|---|---| ||**Group**
**2022**
**£**|**Charity**
**2022**
**£**
**2**
**7,406,918 **
**164,038**
**12,000**
**7,582,958 **|Group
2021
£
-
8,332,013

48,952
12,000
8,392,965
|Charity
2021
£| |Shares in subsidiary undertaking at cost
Listed investments
Cash held by investment managers for investment
Other investments
|**-**
**7,406,918**

**164,038**
**12,000**
**7,582,956**
|||2
8,332,013
48,952
12,000| |||||8,392,967| 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 2022; 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 £70,032 (2021: £37,534) and its surplus for the year was £40,070 (2021: £14,077). An amount of £40,070 (2021: £14,077) 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 2021
Additions
Withdrawals
Gains /(losses)
Market value at 31 August 2022
Cash held by investment managers
Total investment

Listed investments at cost|**Listed**
**Investments**
**£**| |---|---| ||**8,332,013**
**7,337**
**(203,271)**
**(729,161)**
**7,406,918**
**164,038**| ||**7,570,956**| ||| ||**6,459,708**| Listed investments held at 31 August 2022 comprised the following: |Fixed income
Equities
Property
Alternative assets
Liquid assets|**2022**
**£**
**513,347**
**5,430,698**
**181,602**
**907,095**
**538,214**
**7,570,956**|2021
£
615,939
6,544,438
160,266
739,564
320,758| |---|---|---| |||8,380,965| Included within listed investments are 58.8 ordinary shares in Royal Bank of Scotland Plc with a market value of £145 (2021: £125) at 31st August 2022 which do not form part of the CCLA or Sarasin & Partners investment portfolios. London Youth Annual Report and Financial Statements 2021-22 56 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**
-
742,815
**742,815**| ||**891,991**
**742,815**
**1,634,806**| ||-
-
**-**
-
-
**-**
-
-
**-**
-
42,847
42,847
-
(112,434)
(112,434)
-
-
-| ||**-**
**(69,587)**
**(69,587)**| ||-
(55,792)
**(55,792)**| ||**- (125,379) (125,379)**| ||| ||891,991
-
**891,991**
-
617,436
**617,436**| ||**891,991**
**617,436**
**1,509,427**| ## **14. Debtors** |**14. Debtors**||||| |---|---|---|---|---| ||**Group**
**2022**
**£**
**457,829**
**221,481**
**-**
**1,000**
**680,310**|**Charity**
**2022**
**£**
**456,916**
**221,481**
**110,926**
**1,000**
**790,323**|Group
2021
£

179,355
331,842
-
1,000
512,197|Charity
2021
£| |Trade debtors
Prepayments and accrued income
London Youth Trading Company
Other debtors
**Total debtors**||||177,840
331,842
33,122
1,000| |||||543,804| Amounts totalling £179,776 (2021: £82,809), 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 2021-22 57 ## **15. Creditors** |**15. Creditors**||||| |---|---|---|---|---| ||**Group**|**Charity**|Group|Charity| ||**2022**|**2022**|2021|2021| ||**£**|**£**|£|£| |Fees in advance and deferred income|**358,903**|**355,280**|148,073|139,313| |Trade creditors|**274,001**|**274,001**|298,326|298,326| |Other creditors|**8,050**|**8,050**|205,539|205,539| |PAYE and National Insurance|**50,300**|**50,300**|69,936|69,936| |Pensions Payments|**21,707**|**21,707**|18,941|18,941| |Accruals|**234,100**|**227,700**|200,444|200,444| |**Total creditors**|**947,061**|**937,038**|941,259|932,499| |
Analysis of movement in fees in advance and deferred income|||**Group**|**Charity**| |Deferred income at 1st September 2021|||**148,073**|**139,313**| |New deferred income in the year|||**358,903**|
**355,280**| |Deferred income released|||**(148,073) **|
**(139,313)**| |Deferred income at 31st August 2022|||**358,903**|
**355,280**| London Youth Annual Report and Financial Statements 2021-22 58 ## **16. Funds** |**16. Funds**||||||| |---|---|---|---|---|---|---| ||1 Sept
2021
£|Income
£|Expenditure
£|Transfers
*
£|Gains &
Losses
£|**31st Aug**
**2022**
**£**

**503**

**16,800**

**2,405**
**111,195**

**30,560**

**40,930**

**53,874**

**-**

**-**

**-**

**107,420**

**-**

**41,727**

**-**

**205,179**

**-**

**30,237**

**16,550**

**1,162**

**-**

**658,542**| |Restricted Funds
**Development**
**Membership Development**
Membership Development/Marketing
Mental Health
Good for Girls
Rise Up Leadership Programme
Sector Development (Islington)
**Opportunity**
**Residential Centres**
Woodrow General Restricted
Hindleap General Restricted
Hindleap Countryside Stewardship
**Youth Action**
City Leaders - Core programme
City Leaders - Keeping it Wild
**Sport & Culture**
Sports Development – Getting Active
Jack Petchey Programme & Events
Young Creators
Young Culture Makers
**Employability**
JP Morgan
Future Talent
CVC Employability
HeadStart Action
**Voice**
**Youth Involvement**
Youth Board/Coming of Age
**Best We Can Be**
**Learning**
Esmée Fairbairn/Other
**Restricted Funds Total**|(5,101)
126,435
(3,084)
131,502
-
30,932
28,919
-
19,933
7,241
240,512
31,613
-
8,784
16,400
31,853
19,570
9,375
3,549
(454)|
226,844

424,547

538,820

439,668

112,500

28,200

41,822

-

74,763

3,661

378,826

61,034

115,457

2,400

317,000

-

100,000

193,178

102,899
6,800|
(269,275)

(486,367)

(533,331)

(459,975)

(81,940)

(18,200)

(16,867)

-

(94,749)

(10,902)

(511,918)

(92,647)

(73,730)

(11,220)

(176,074)

-

(73,333)

(186,003)

(105,286)

(6,346)|
48,035
(47,815)

-

-

-

(2)

-

-

53

-

-

-

-

36

47,853
(31,853)
(16,000)

-

-
-|
-

-

-

-

-

-

-

-

-

-

-

-

-

-
-

-

-

-

-
-|| ||697,979|
3,168,419|(3,208,163)|
307|
-|| London Youth Annual Report and Financial Statements 2021-22 59 ||1st Sep
2021
£|Income
£|Expenditure
£|Transfers
*
£|Gains &
Losses
£|**31st Aug**
**2022**
**£**| |---|---|---|---|---|---|---| |||
-

74,771

-
-

42,847
3,722,221|
-

-

(177,939)

(7,290)

-
(4,705,126)|
719,354

(142,674)

16,598
-

(55,792)

(537,793)|
-
(490,384)

-

-
(112,434)
(126,343)|**7,324,020**
**3,774,225**

**1,231**
**187,612**
**1,509,427**
**1,558,508**| ||16,832,986|7,008,258|(8,098,518)|
-|(729,161)|**15,013,565**| *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 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 2021-22 60 Foundation, Jack Petchey Foundation, John Lyon’s Charity, The National Lottery Community Fund and others. Employability – A range of employability programmes supported by JP Morgan Chase Foundation and CVC Capital Partners. 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 2021-22 61 ## Transfers between funds in year A number of transfers have been made between funds which net to £nil and which comprise the following: - Transfer of £0.056M from the Permanent Endowment Fund to General Fund; representing the return paid out as cash by the Investment Managers of the fund (Sarasin & Partners, LLP). - Transfer of £0.143M from the Development Fund to General Fund; representing the return paid out as cash by the Investment Managers of the fund (Sarasin & Partners, LLP). - Transfer of £0.066M from the General Investment Fund to General Fund; representing the return paid out as cash by the Investment Managers of the fund (CCLA). - Transfer of £0.719M from General Fund to Fixed Asset Reserve; representing the net increase in Fixed Assets in year. - Transfer of £0.017M from General Fund to Designated Fund (Digital investment) - Transfer of £0.0003M from General Fund to eliminate minor negative balances on various (historical) Restricted Funds In relation to Note 17 of the 2020-21 Trustees’ Annual Report & Accounts, an adjustment has been made which effectively reallocates £0.045M of expenditure from Restricted Funds to General Fund in respect of in-year expenditure at the Centres. The adjusted balances in respect of the financial year ending 31 August 2021 are shown in the Prior Year Funds movement on pages 63 and 64 of this report and reflected in the opening balances shown in Note 16. London Youth Annual Report and Financial Statements 2021-22 62 ## **17. Analysis of net assets between funds** _Unrestricted funds_ |General
funds
Designated
funds
**Charity**
£
£

**Fund balances at 31st August 2022 are represented by:**
Tangible fixed assets
- 7,324,020
Investments
2,299,306 3,774,225
Current assets
196,240
188,843
Creditors: amounts falling due within
one year
(937,038)
-
Total net assets
1,558,508 11,287,088

**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
_Unrestricted funds_
General
funds
Designated
funds
**Group**
**£**
**£**

**Fund balances at 31st August 2022 are represented by:**
Tangible fixed assets
- 7,324,020
Investments
2,299,304 3,774,225
Current assets
206,265
188,843
Creditors: amounts falling due within
one year
(947,061)
-
Total net assets
1,558,508 11,287,088
**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|Designated
funds
£
|Restricted
funds

£
|Permanent
endowment
funds
£
|**Total**
**2022**
£| |---|---|---|---|---| |||-
-
658,542
-|-
1,509,427
-
-|7,324,020
7,582,958
1,043,625
(937,038)| ||11,287,088|658,542|1,509,427|15,013,565| |||-
-
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| |||
Restricted
funds
**£**
|Permanent
endowment
funds
**£**
|**Total**
**2022**
**£**| ||Designated
funds
**£**
|||| |||-

-
658,542
-|-

1,509,427
-
-|7,324,020

7,582,956
1,053,650
(947,061)| ||11,287,088|
658,542|
1,509,427|15,013,565| |||-
-
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| London Youth Annual Report and Financial Statements 2021-22 63 ## **18. Operating leases** At 31 August 2022, 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|**2022**
£
**-**
**5,607**
**5,607**|2021
£| |---|---|---| |||5,943
-| |||5,943| ## **19. 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. ## **20. 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, Morenike Ajayi 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, including by furtherance of the charitable purposes of London Youth. During the year, the charity received £40,000 (2021: £30,000) from The Joseph Levy Endowment Trust and in July 2022, the Trustees of Trust resolved to provide capital release to London Youth to enable the latter to install a biomass boiler at this Woodrow High House outdoor learning Centre; replicating a similar project delivered at Hindleap Warren with support from the Trust in 2015. The sum of £490,000 was subsequently released post year-end by way of capital withdrawal from the Trust’s investment portfolio, which will be repayable within a 10-year period, by agreement. London Youth provided management, support services and facilities to London Youth Trading Company Limited in the amount of £23,477 (2021: £14,426), being primarily staff time and costs of the swimming pool and sports centre. London Youth Trading Company donated £40,070 (2021: £14,077) to London Youth through Gift Aid after the year end. As at 31 August 2021 £110,926 (2020: £33,122) was due to London Youth from London Youth Trading Company Limited. The Addison Youth Club (T/A "Addison Youth") had one Trustee in common with The Federation of London Youth clubs for the period under review and uses the same principal office. The Trustee in common was David Miller, Vice-Chair at London Youth. During the year London Youth invoiced Addison Youth in the sum of £6,000 (2021: £6,000) 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 (2021: £50,000) from the Jimmy Dixon Trust to support the youth action programme and £7,000 (2021: £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. The Rathbone Society received a total of £7,100 in year for participation in London Youth’s _Good for Girls_ programme. In 2021, two Trustees at London Youth made donations to the charity totalling £44,000 (2021: £10,000); 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 2021-22 64 ## **21. Prior year figures** ## 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**
**£**


**697,552**
**1,193,134**
**2,879,421**
**63,424**
**7,555**

**289,217**
**43,390**
**168,049**
**-**
**5,341,742**


**238,481**
**983,154**
**4,459,947**
**124,101**
**810,433**
**9,210**
**6,625,326**


**1,053,573**
**(230,011)**
-
**(230,011)**
**17,062,997**


**16,832,986**|Total
2020
£| |---|---|---|---|---|---| ||

339,411
70,691
1,465,190
45,000
7,555
289,217
43,390
123,744
-|

358,141
1,122,443
1,414,231
18,424
-

-
-
-
-|


-

-

-

-

-

-
-
44,305
-||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||6,577,399| ||

238,481

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

-
970,180
2,496,465
43,424
-
-|


-

-

-

-

-

-||198,994
581,894
5,029,128
103,042
57,485
34,977| ||3,115,257|3,510,069|
-||6,005,520| ||

876,934
145,878
(71,192)
74,686
14,470,755

|

-
(596,830)
120,000
(476,830)
1,129,571

|

176,638

220,943

(48,808)

172,135
1,462,671

||162,028
733,907
-
733,907
16,329,090| ||14,545,441|652,741|1,634,806||17,062,997| London Youth Annual Report and Financial Statements 2021-22 65 ## Prior year funds movements to 31 August 2021 ||1st Sep
2020
£|Incoming
resources
£|Expenditure
£|Transfers
*
£|Gains &
Losses
£|31st Aug
2021
£
**49,705**
**24,646**
**18,608**
**34,988**
**(3,084)**
**131,502**
**30,932**
**-**
**28,919**
**-**
**19,933**
**7,241**
**-**
**240,512**
**-**
**-**
**-**
**8,784**
**16,400**
**31,853**
**9,375**
**19,570**
**3,549**
-
**24,546**
**697,979**| |---|---|---|---|---|---|---| |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
**Arts**
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
11,571
-
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|
194,614

205,000

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|(175,967)
(179,249)
(26,701)
(450,012)
(349,921)
(374,903)
(8,639)
(136,500)
(8,100)
(21,724)
(115,891)
(111,151)
(14,442)
(421,335)
(35,100)
(86,157)
(21,415)
(24,151)
(18,600)
(174,503)
(543,759)
(50,777)
(49,057)
(43,424)
(23,354)|
-

-

-

-

-

-

-

70,000


-

-

-

-

-

-

-

-
-

-

-

-

50,000

-
-|
-

-

-

-

-

-

-

-
-
-

-

-

-

-

-

-

-

-
-

-

-

-

-

-
-|| ||1,129,571|2,913,239|(3,464,831)|120,000|
-|| London Youth Annual Report and Financial Statements 2021-22 66 ||1st Sep
2020
£|Incoming
resources
£|Expenditure
£|Transfers
*
£|Gains &
Losses
£|**31st Aug**
**2021**
**£**| |---|---|---|---|---|---|---| |||-

77,320

-
-

44,305
2,306,880|
(322,318)

-

(100,428)

(85,436)

-
(2,652,314)|
30,272

117,860
-
-

(48,808)

(219,324)|
-

607,356

-
-

176,638
269,578|**6,604,666**
**4,332,512**
**162,572**
**194,902**
**1,634,806**
**3,205,549**| ||**17,062,997**|5,341,744|(6,625,326)|
-|1,053,572|**16,832,986**| ## **22. Post balance sheet events** ## Non-adjusting events post 31 August 2022 ## **Hindleap Warren Outdoor Centre – Sewage Treatment provision** 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 one conducted in March 2022 estimates the cost of replacing the plant at between £0.200M and £0.300M. The charity has appointed a consultant to take the project through design and planning permission stages before going out to tender. 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) and provision continues to be made in the reserves of £0.350M to meet the associated costs. ## **Assets Under Construction** **1. Woodrow High House – biomass boiler** Installation of a biomass boiler installation commenced in April 2022; currently itemised as an _‘asset under construction’_ ( _see Note 12_ ) at the Centre in respect of which £0.340M has been capitalised (2021: £nil). Outstanding capital commitments in respect of this AUC is £0.088M (2021: £nil). It was agreed that the most cost-effective way to fund the biomass boiler installation would be by way of application for capital release from the Joseph Levy Endowment Trust (JLET), who had funded a similar project in 2015. The Board of JLET agreed to release £0.560M to fund the project, which comprised £0.490M of repayable investment capital. London Youth Annual Report and Financial Statements 2021-22 67 Formal permission was granted by the Levy Family Representative, in line with the Trust’s governing document, on the last day of the financial year, 31 August 2022 and the cash was released by the Trust in September 2022. **2. CRM – systems investment** To support its engagement with members and funders, London Youth realised the decision made in 2019 to invest in its CRM capacity. A number of proposals and approaches were considered and London Youth decided to develop its existing Salesforce capabilities to build better relationships across its membership base and to more effectively steward funder relationships. A total of £200,679 had been spent on installing/developing the software by year end 31 August 2022. The system became ‘live’ in February 2023. Outstanding capital commitments in respect of this AUC is £0.081M (2021: £nil) as at year end 31 August 2022. ## **Transfer of lease previously held in trust** ## _**Westminster House Youth Club**_ Historically, London Youth held leases in trust for many of its unincorporated members. Following development of the site at 29 Nunhead Grove, Peckham, SE15 3LZ and incorporation of Westminster House Youth Club in 2022, London Youth officially transferred the lease to their member on 19 January 2023. As a result, the property is no longer held in trust by London Youth. London Youth Annual Report and Financial Statements 2021-22 68 ## **Reference Information** **Patron** HRH Prince Edward, The Earl of Wessex **President** Sir Kenneth Olisa, OBE **Chair** Stephen Moss, CBE **Deputy Chair** David Miller **Honorary Treasurer** Morenike Ajayi **Vice Presidents** Julian Beare Roger Merton MBE 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 Paul Stewart Rt. Hon. Sir Simon Hughes Joy Toghill Peter Hunter Joseph Williams Sir David Knox Carl Wonfor **Trustees** Morenike Ajayi David Miller Sue Asprey-Price (to 28 April 2022) Stephen Moss, CBE Guy Davison Louise Rodgers (to 28 April 2022) Kevin Holian Stu Thomson Adem Holness Simon Turek Charline King Mario Washington-Ihieme Sharaf Mahmood (to 28 April 2022) **Youth Advisors** Rowan FitzMaurice Mohammed Meshnumi **Attending** Curtis Johnson Dylan Quilligan **Board meetings** Kalliyah Kirlew Veronica Sarmiento Mohammed Motin Elena Vissani Amina Meshnuni **Committee Chairs: Assurance Finance Governance and People Membership** **Kevin Holian Morenike Ajayi Simon Turek Charline King** London Youth Annual Report and Financial Statements 2021-22 69 ## **Chief Executive and Company Secretary** **Senior Team Director of Engagement Director of Finance & Resources Director of Fundraising Director of Programmes Director for Residential Centres** **Registered name Registered/principal office** **Telephone E-mail Website Company registration number Charity registration number Auditors** **Bankers** **Investment managers** ## **Lawyers** Rosemary Watt-Wyness Pauline Daniyan Danyanne Quemper Glen Fendley Zoe Mellis Martin Curtis 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 2021-22 70 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 71