2021-07-31-accounts

www.young-enterprise.org.uk

YOUNG ENTERPRISE YOUNG ENTERPRISE ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021

Registered Charity No: 313697. Company Limited by Guarantee No: 712260

CHAIRMAN’S STATEMENT AND CHIEF EXECUTIVE’S REPORT

CONTENTS

YOUNG ENTERPRISE ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021

Chairman’s Statement and Chief Executive’s Report 5 Strategic Report 9 Our vision and mission How we do it No Time Like the Future strategy Our reach in the 2020/21 academic year Looking forward to 2021/22 – what will we do? Review of Fundraising and Finances 18 Structure, Governance and Risk Management 21 Objects and structure Committees Trustees’ responsibilities Management of risk Reserves Independent Auditor’s Report 30 to the members of Young Enterprise Accounts for the Year Ended 31 July 2021 36

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CHAIRMAN’S STATEMENT AND CHIEF EXECUTIVE’S REPORT

OUR KEY SUPPORTERS

EUNETWORKS

We are especially grateful to these supporters who lead the way in empowering young people to learn how to earn and manage their money.

EUROCLEAR

FRANKLIN TEMPLETON

GARFIELD WESTON FOUNDATION HANSA CAPITAL

HERTFORDSHIRE COUNTY COUNCIL

ALLIANZ

ALMACANTAR ARCONIC ARROW GLOBAL AT&T AVANADE AVIVA

HITACHI CAPITAL HONDA MOTOR COMPANY HSBC UK HOWMET AEROSPACE

ICANN

INTERCONTINENTAL HOTELS GROUP

BNY MELLON BECHTEL GROUP FOUNDATION

J.P. MORGAN

JACK PETCHEY FOUNDATION JIGSAW FOUNDATION

BOURNEMOUTH UNIVERSITY

CAPITA

JOHN LAING CHARITABLE TRUST KEN AND DIANA RANDALL

CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT CHRIS SLATER CITI FOUNDATION CIVICA COMMERCIAL EDUCATION TRUST DELTA AIR LINES EAST MIDLANDS RAILWAY EDUCATION ENDOWMENT FUND

LINK GROUP LONDON STOCK EXCHANGE LYRECO

M&G MARKETING TRUST MARTIN LEWIS OBE MASTERCARD

MAYOR OF LONDON ACTIVITY FUNDING RECEIVED THROUGH THE LONDON COMMUNITY RESPONSE FUND

METLIFE

MINTEL

MONEY AND PENSIONS SERVICE

MONEYGRAM FOUNDATION NATIONAL GRID

NOTTINGHAM BUILDING SOCIETY

PRINCIPALITY BUILDING SOCIETY

SABIC

SALOMON OPPENHEIMER PHILANTHROPIC FOUNDATION

SANTANDER

ST JAMES’S PLACE

THE BAND TRUST

THE CAREERS & ENTERPRISE COMPANY

THE COMPANY OF THE MERCHANT ADVENTURERS OF THE CITY OF YORK

THE EDUCATION NETWORK

THE SCHRODER FOUNDATION THE WINDSONG FOUNDATION

UPS

WELSH GOVERNMENT

WESTMINSTER FOUNDATION

YOUNG ENTERPRISE ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021

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YOUNG ENTERPRISE CHAIRMAN’S STATEMENT AND CHIEF EXECUTIVE’S REPORT

Registered Charity No: 313697. Company Limited by Guarantee No: 712260

CHAIRMAN’S STATEMENT AND CHIEF EXECUTIVE’S REPORT

Chairman’s Statement

This is my second report as Chair of Young Enterprise (YE). It has been another challenging year for young people, educators and the charity sector as a whole, as the effects of the pandemic continue to be felt. We remain focused on our No Time Like The Future (NTLTF) strategy, which aims to create a minimum of one million meaningful financial and enterprise opportunities for young people by the end of 2023, mobilising 40,000 volunteers, teachers and YE alumni. As a charity we have continued to respond to the changing needs of young people and educators during this period. In light of this, it’s remarkable that we’ve been able to provide nearly 360,000 financial and enterprise education learning opportunities for young people, which is an increase of over 60% on opportunities provided in 2019/20.

I’m particularly pleased to report that the charity has delivered a financial surplus of £1.15 million. This is a tremendous achievement that will allow us to give a significant boost to our reserves, which has always been our long-term strategy.

I’d like to thank Sharon Davies, who is an outstanding Chief Executive, for leading a dedicated Senior Leadership Group and the whole organisation through such a demanding period. It’s a pleasure to work with Sharon as she continues to drive the organisation forward and raise our profile, making sure our voice is heard on major policy issues. On behalf of all Trustees, I’d like to thank our incredible team of YE staff and volunteers. Their resourcefulness, creativity and ability to keep innovating in response to the changing needs of young people, parents and educators is truly inspiring.

This year, Sharon and I have had a number of high-level policy meetings, including with the CEO of the Financial Conduct Authority. We’ve also hosted a number of thought leadership events, including one with former Prime Minister Gordon Brown.

I’d also like to take this opportunity to thank all YE Trustees for their support and everything they do for the charity. I’m delighted we have recruited two excellent young Trustees to the Board and they’re already making a significant contribution to our discussions. We completed our bi-annual Board effectiveness review earlier this year and I’d like to thank Helen Nixseaman for leading this process. The review confirmed we are focusing on the right issues and we’ll be acting on a number of very helpful proposals emerging from the feedback. As well as the six Board meetings, we have an annual strategy session that enables us to focus on the longer-term priorities for the period ahead.

I’d like to thank our supporters, including trusts, foundations and major donors, who have helped us through this challenging year. One corporate supporter made a very generous one-off financial donation, which made a significant contribution to the financial surplus. In the same spirit, I’d like to thank William Salomon, the President of YE for being a generous benefactor. His father founded the Charity almost 60 years ago and we are already making plans for the anniversary year.

In summary, we are looking ahead to a year where we will continue to work closely with our partners to deliver our No Time Like the Future strategy. This includes our exciting new strategic partnership with Speakers for Schools and UK Youth to deliver the Youth Card, an app for young people aged 11–24. We are committed to ensuring we work in partnership with charities in the same space.

Our mission of promoting financial education has never been more important. There’s still so much to do to address the disproportionate impact of the pandemic on the lives of disadvantaged young people and the whole Board remains committed to delivering on our purpose.

Simon Lewis OBE Chairman

Watch now: Simon describes some of the key achievements from the year.

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CHAIRMAN’S STATEMENT AND CHIEF EXECUTIVE’S REPORT

Chief Executive’s Report

Overview

So much has already been said about the impact of the pandemic on young people. It has been disproportionate, uneven and served to compound barriers to social mobility in the UK, which were already on the increase prior to the pandemic (Social Mobility Commission’s State of the Nation Report 2021). This year, we’ve continued to listen, learn, respond and adapt to the changing needs of young people and those who support them.

Here’s what we’ve learned, the progress we’ve made and our plans for the future…

Programmes and services

Home schooling has impacted young people’s physical access to finance and enterprise education at a time where its role in equipping them to build their futures in an increasingly cashless society is becoming more important. To respond to those changing needs, we created two new e-learning programmes Route to Success and Employable Me, and began building an online financial education programme that digitises the Your Money Matters secondary school textbook. These programmes promote self-led learning in an accessible and relevant format for young people, enabling them to discover, reinforce and apply learning in relation to setting career goals, the recruitment process and managing money. In the last year, the percentage of our programmes that can be accessed digitally has risen from 85% to 89%.

I’d like to pay tribute to all the educators who have displayed immense resilience and creativity in continuing to provide quality education in incredibly difficult and changing circumstances. We recognise that digital disadvantage has grown throughout the pandemic and, in response, have created new programmes, like Innovation Studios and Learn to Earn Flex, which can be delivered in school by educators and don’t require young people to have digital access. Through our Money Heroes programme, developed in partnership with HSBC UK, we have created free hard copy resources, including two Key Stage 1 storybooks, a Key Stage 2 book of short stories and an Orchard Toys board game that encourage engagement and discussion without the need for digital access.

People and partnerships

We’re listening hard as we continue building an organisational culture where young people, staff, volunteers and other key stakeholders feel that they belong and they matter. Young people tell us relatable role models need to be seen through the eyes of those who are seeking them. ‘Relatable’ might mean shared values or aspirational achievements, or someone who looks like or has a shared experience with them. We are increasing our understanding of what it takes to build a truly equal, diverse and inclusive place to work. We are continuing to learn how to improve volunteer opportunities and access support from role models to help enrich enterprise and financial education learning. We recognise this journey has many facets and we may not travel as fast as we’d wish to. It’s a journey that requires the humility to value unlearning as well as learning in our continued development.

I’m proud and grateful to every member of YE staff for the dedication and commitment they have shown this year. In particular, how they found new ways to provide young people and educators with the support and access to opportunity they so desperately need. My heartfelt thanks goes to our incredible Chair of Trustees, Simon Lewis, whose counsel has been invaluable over the last year. Thank you also to our dynamic board of Trustees and inspiring volunteers, educators and partners for their proactive engagement and support. The collective contribution of these people allowed us to respond quickly to the changing needs of young people and educators. We’ve continued to prioritise building strategic partnerships in our efforts to amplify support and opportunities for those young people that would benefit from it most. Examples include new partnerships with the Aldridge Foundation, Bedfordshire VERU, Children in Need (enabled by HSBC UK via the Money Heroes Project) and the Westminster Foundation.

We are pleased to report that at the end of the second academic year of our NTLTF strategy, £5.786 million income was secured to fund 265,581 young people from across England and Wales to engage in 359,813 enterprise and financial education learning opportunities. They were supported by more than 1,000 volunteers from a wide range of industry sectors. We have engaged volunteers in new ways, giving young people taking part in our digital programmes access to a wider variety of volunteer input.

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CHAIRMAN’S STATEMENT AND CHIEF EXECUTIVE’S REPORT

Providing young people with meaningful opportunities

We are deeply grateful for the continued support of funders who have recognised the importance of securing the long-term sustainability of the charity and actively supported us through one of the most challenging periods we’ve ever faced. Thanks in particular to a significant one-off donation from a generous supporter, together with the continued passionate engagement of our President William Salomon, we are able to report a £1.15 million surplus. This will allow us to continue to rebuild our reserves, an important strategic priority to ensure the charity is able to continue to passionately pursue our mission and plan for the long term.

Addressing the decline in social mobility

We believe more than ever that the current generation of young people is far from lost. Throughout the pandemic our first-hand experience is one of young people showing themselves to be resourceful, resilient and creative. But talent alone will not reverse the decline in social mobility that has been compounded by the pandemic. Talent is not the issue here. Inequality of access to opportunity is. We believe prioritising our most underserved communities with access to opportunities, and the support to build an enterprising mindset and skills to earn and look after their money, is key to reversing the decline in social mobility.

Project Inspiring Futures (Project IF) is a multi-programme, experiential learning approach that enables young people to develop and apply key skills and an enterprising mindset. It will support their successful transition from school into the world of work or further education. This academic year-long intervention encourages them to set up and run their own student company with the support of a volunteer mentor, including selling their products to the public. This allows them to develop and apply skills in a real-world context and in real time. As part of Project IF, we encourage young people to join our Young Enterprise Alumni Network. This provides an opportunity to continue supporting them, as well as tracking their progress beyond the project to understand progression routes from education through to employment . Our ambition over the next five years is to offer every state school within the 1-4 lowest deciles of the Indices of Multiple Deprivation access to this project.

The year ahead

As we look ahead to 2022, 60 years on from when Sir Walter Salomon founded YE, the need to provide financial education, work-readiness skills and an enterprising mindset to young people has never been greater. It is vital we continue to provide the support to ensure these opportunities are fully maximised. Together with our partners and supporters, we are working hard to ensure what we do is fit for purpose for the needs of young people for the next 60 years.

In the third year of our NTLTF strategy, we will give young people with the greatest barriers to social mobility more access to the support and opportunities they need to help navigate the changing world of work. We’ll do this through projects like Project IF, the Westminster Foundation Project and Centres of Excellence, among many others. We’ll continue to build our alumni network and wider volunteer base, with the aim of increasing opportunities for young people to access a wide range of relatable role models, as defined by them, within their own communities. We’ll be investing to increase the efficiency and capacity of our programme management systems, which will ensure our resources are used where they’re most needed – to engage and support young people.

We’ll be proactive in seeking to research the contribution that financial and enterprise education can make to increasing social mobility. We’ll also champion the role of applied learning and how it helps young people to build and apply the skills and mindset they need to prepare for the world of work, through real-world experiences.

As ever, collective action is key to all of our futures. We look forward to working collaboratively with our partners to support this brilliant generation of young people to fulfil the potential that they truly deserve, regardless of their starting point.

Watch now: Sharon outlines the No Time Like The Future strategy progress and looks to the future.

Sharon Davies CEO Young Enterprise

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YOUNG ENTERPRISE STRATEGIC REPORT

Registered Charity No: 313697. Company Limited by Guarantee No: 712260

STRATEGIC REPORT

Our vision

We believe no young person should be left behind. Our vision is that every young person is given the opportunity to learn the skills needed to earn and look after their money, to develop an enterprising mindset and make a valuable contribution to their communities and wider society.

Our mission

Empowering young people to discover, develop and celebrate their skills and potential.

How we do it

We believe passionately that education is about preparing young people for their futures. A future that cannot be predicted, will involve challenges and opportunities, and will look very different from one young person to the next. To navigate such a complex and changeable pathway, academic attainment must be complimented with the appropriate skills and mindset to enable successful transition.

We provide programmes and services directly to young people, and the educators that work with them, giving them access to the very best opportunities to apply their learning, hone their skills and develop an enterprising mindset.

The challenges experienced by schools since the beginning of the pandemic have expedited digital development and innovation. At YE, we have created six entirely new programmes and amended many others to provide the blended approach to learning that’s been required and is likely to remain. While digital access of programmes and services has increased significantly it remains crucial that we, and our volunteer community, continue to engage in-person with young people and educators.

Our offer consists of three tiers:

1. Provision of high-quality tools and resources

Accessibility to high-quality tools and resources is the foundation on which educators can begin to develop their own tailored provision for the young people they support. Examples of this range from our 10X and Fiver Challenge programmes, where we provide educators with resources to run the challenges themselves, to our Financial Education Planning Frameworks, which provide a framework of outcomes that educators can use to develop their own programme of provision.

2. Opportunities for professional development

It’s well documented that confidence in delivering financial and enterprise education is often a barrier to educators. Supporting this through professional development is an important way to make sure financial and enterprise education is consistently delivered across educational settings. We provide teacher training for both financial and enterprise education and have set up a Financial Champions Network for those committed to best practice provision.

3. Educational centre support

Our educational centre provision is either directly delivered to young people by our regional teams of area managers or provided to educators and senior leaders in the centre by our team of education consultants. In each case, it’s about working with educators to establish meaningful learning opportunities, based on their individual needs. Examples of this provision are our Company Programme, where we support young people to set up and manage their own student company supported by a volunteer business adviser, and our Centre of Excellence programme, where we work with centres to establish them as examples of best practice and support them to share their learning with other local centres.

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STRATEGIC REPORT

No Time Like the Future strategy

Launched in January 2020, No Time Like The Future is our four-year strategy that runs to the end of 2023. The overall outcomes are:

• Create one million financial and enterprise education opportunities to help young people build their futures

• Mobilise 40,000 volunteers, teachers, and alumni

• Build a committed supporter base. We will work with new and established partners, promoting the importance of our work and securing the investment required to drive change (£16 million target).

Progress against the NTLTF outcomes after year 1

Our NTLTF strategy operates in calendar years so year 1 is reported to the end of 2020:

Metric	Bythe end of 2020	Bythe end of 2023
Learningopportunities	229,412	1,000,000
Mobilised volunteers,teachers and alumni	4,815	40,000
Investment secured	£5,831,000	£16,000,000

There are three key goals that drive the NTLTF strategy:

	Increase access to meaningful opportunities
	Prioritise access and support for young people in underserved communities
	Build YE alumni network and monitor long term impact.

NTLTF progress against the goals

The progress below has been reported against areas highlighted in our 2019/20 annual report that we would be working towards in 2020/21. Achievements have been colour coded to align to the relevant NTLTF goals:

Improving our ability to respond to feedback on our programmes and services

• Net promoter scores have been embedded into all young person and educator evaluations, which are now delivered digitally. This provides instant feedback on how meaningful the programme or service was for the recipient and enables an efficient feedback loop into programme and service development.

• Every new programme or service developed in 2020/21 has been tested by young people and educators before being launched.

• We’ve developed an organisational Theory of Change that clearly defines the outcomes we expect for the young people we reach, and how our support helps achieve these outcomes. This provides us with a foundation to measure the success of every part of our offer.

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STRATEGIC REPORT

Increasing online programme interactivity

• We’ve continued digital development of our programmes and services offer, including two new e-learning programmes – Route to Success and Employable Me. These are available through our dedicated learning management system – YE Learning Zone. These have increased our blended learning offer, enabling 88.5% of YE’s programmes and services to be engaged with remotely, if required.

• Money Heroes launched in November 2020 and provides financial education support to teachers and parents of primary aged young people. It has led to a significant increase in the number of young people (104,946) and educators (873) we’ve supported in primary schools (682). We’ve also developed a wide range of freely available support material, including Key Stage 1 and 2 books, a Key Stage 1 board game, a series of podcasts, and numerous learning activities available on the platform.

• YE Trading Station launched in September 2020 and is an online platform for young people engaged in Company Programme, Team Programme and Start Up. It allows young people to sell their products and services online in a safe, age appropriate environment. Importantly, Trading Station includes key aspects of enterprise learning, including intellectual property, online selling regulations, GDPR regulations, digital marketing and insurance.

• We have developed and piloted Innovation Studios, our first ‘plug and play’ programme for educators to deliver within their settings. Using animation, young people are given a day to solve a challenge set by a local business or their community. Piloting has been extremely successful with educators welcoming the lack of preparation required by them to run an impactful day. The programme will roll-out in 2021/22.

• In February 2020, we successfully re-launched our Tenner Challenge programme as 10X. Six countries in JA Europe are also trialling the programme, with all six continuing into 2021/22. As part of this relaunch, participants can now access elements of the programme at any point in the academic year via the dedicated platform, while the competition element continues to run for one month only.

Increasing our accessibility and inclusivity

• We are pleased to have built important strategic partnerships with Children in Need and the Scouts through our Money Heroes programme. With Children in Need, we are working with 100 groups that support vulnerable young people to help them introduce financial education into their provision. With the Scouts, we have quality assured their financial education activities for use in youth group settings and shared relevant materials via the Money Heroes platform.

• In collaboration with UK Youth and Speakers for Schools, we have launched the Youth Card – an app for young people aged 11–24 that provides developmental opportunities combined with retail discounts. Opportunities on the Youth Card will be targeted to relevant groups of young people using an innovative connection to schools information systems.

• The University of Derby did an evaluation of our Team Programme, which is aimed at young people with special educational needs. Findings highlighted the wealth of skills, including independent living skills, that young people developed on the programme. One of the recommendations from the evaluation was that we increase the level of differentiation across the programme support materials. This has been completed and a new Team Programme pack has been developed, including greater differentiation for the 2021/22 year.

• We hosted over 100 events online in 2020/21. This included over 80 Company Programme finals, the Young Money Challenge final, the 10X and Fiver finals, the Financial Education Forum, our Centre of Excellence Conference and our Building Futures event.

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STRATEGIC REPORT

• In partnership with the National Grid, we’ve started our Grid for Good programme, aimed at young people aged 16–18. It combines workshops focused on the skills required and careers available within the energy sector with opportunities for career coaching, work experience and apprenticeships. Engagement in the programme is targeted at those in the most underserved communities.

• We’ve worked with 35 secondary schools in Index of Multiple Deprivation (IMD) 1-4 communities on our new Project Inspiring Futures (Project IF). This combines an employability focused digital programme for a whole year group, with a smaller contingent engaging in our Company Programme. The young people then take part in a one day follow-up programme that helps them to develop a CV and action plan for the future and get support planning for interviews.

Reimagining YE Company Programme

Company Programme is YE’s longest standing programme, first delivered in 1963. It has evolved significantly over time and must continue to do so to provide a meaningful, relevant experience and appropriate support for the young people and educators involved. We will relaunch Company Programme in 2023. To date, we have:

• Convened a working group with stakeholders from across the UK and have come together on three occasions to agree on the key focus areas for development.

• Conducted surveys with young people, educators, YE staff, volunteers and supporters of the programme to provide a holistic view of where the value of the programme sits, together with areas for future development. These were followed up with focused interviews to expand upon thoughts and ideas.

• Developed a summary report, which highlights that Company Programme continues to provide unique and meaningful opportunities for young people. Looking ahead to 2023 and beyond, we will update the programme’s infrastructure and increase monitoring and evaluation tools to measure the impact the programme has on the young people who take part.

Implementing an equality, diversity and inclusion (EDI) review

• An EDI working group was set up at the start of 2020/21 made up of YE staff from across the organisation. This group has met regularly throughout the year to conduct our EDI review and create an action plan.

• EDI interviews have been offered to all staff, with the views of those who participate further informing the EDI working group and action plan.

• As part of the EDI action plan, we held anti-racism workshops for all staff. This externally delivered training included five hours of learning over two workshops. An evaluation report is being collated which will help us put together an action plan to inform future programmes, our volunteer and staff engagement, and fundraising planning.

Developing resources and a Quality Mark process for enterprise resources

• During 2020/21, we have fully scoped what’s needed to operate a viable Quality Mark for enterprise education resources, acknowledging that there is a need to re-develop our Enterprise Education Planning Framework as a basis for this. A survey was sent to teachers to inform the development of the framework.

Creating more volunteer engagement opportunities

• Our new digital and blended programmes mean volunteers can now support our programmes both digitally and face to face, when appropriate.

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STRATEGIC REPORT

• A dedicated remote engagement platform was set up to allow digital interaction between volunteer business advisors and young people on Company Programme. YE Digital Connect enables fully safeguarded communications in a remote environment.

• Seven new Alumni Hubs have been created, allowing local alumni communities to engage with young people to provide access to meaningful opportunities and drive further recruitment to the Alumni Network.

More achievements we are proud of in 2020/21

• Your Money Matters, our financial education textbook, has been re-purposed for schools in Scotland, Wales and Northern Ireland. The Welsh version of the textbook is available in Welsh language as well as English. Over 350,000 free copies of the textbook have been distributed across every state secondary school in the UK, ensuring it can be accessed by all.

• We hosted two Enterprising Mindsets campaigns, both consisting of a series of podcasts and a remotely delivered event. The first involved a ‘fireside chat’ with former Prime Minister Gordon Brown and focused on the importance to young people’s futures of developing an enterprising mindset. The second, Future Female Founders, focused on helping young women overcome the barriers to entrepreneurship. It featured Dragon’s Den entrepreneur Sara Davies discussing the important role of mentors.

• As secretariate for the All Party Parliamentary Group on Financial Education for Young People, we ran a rapid inquiry into financial education within primary schools. The final report highlights a number of key recommendations for the government and others, including recommending that financial education be made a statutory part of the primary school curriculum.

Our reach in the 2020/21 academic year

2020/21 reach in England and Wales (2019/20 figures for comparison)	2020/21 reach in England and Wales (2019/20 figures for comparison)
265,581(187,479) young people have engaged in 5,288 educatorsengaged with YE across England and
359,813(220,667) learning opportunities Wales, supported bymore than 1,000 volunteers
1,262(732) primary schools, 928(980) secondary schools, which is 24%of all
which is 7%of all primary schools* secondary schools
19 (15) higher education (HE) institutes, which is 15%of all HE institutes 24%of secondary schools in the 40% most deprived areas have engaged with YE
70 (81) further education (FE)	25%(26%) of secondary schools in the 30%* most
colleges, which is 15%of all FE	deprived areas have engaged with YE
Colleges*

• Using the government’s ‘Get Information About Schools’ data. These figures relate to state funded institutions only – they do not include independent schools.

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STRATEGIC REPORT

Across England and Wales, we delivered a total of 359,813 learning opportunities, reaching 265,581 young people and engaging with a total of 5,288 educators. Of these, 351,763 learning opportunities and 4,998 educator engagements were provided across a total of 2,717 educational centres, including independent and special schools, pupil referral units, other centres defined as non-applicable on the Department for Education database, and informal education settings. A further 8,050 learning opportunities and 290 educator engagements were provided in settings not included on the government’s ‘Get Information About Schools’ database, for example parents and their children.

Our reach in secondary schools and FE colleges reduced slightly in 2020/21, although not as significantly as expected, due to the reduction of schools being physically open during the pandemic. The 2020/21 educational environment was an incredibly difficult one for all involved and it is testimony to the adaptability of our programmes and services, and the strong partnerships our regional teams have built with their educational networks, that we have continued to engage with such high numbers of secondary schools and FE colleges.

The significant increase in primary schools engagement and overall learning opportunities for young people is largely attributed to the roll-out of the Money Heroes programme. Not only has it filled a unique gap in bringing parents and teachers together around the financial education of the young people they have in common, but it’s a digital-first offering, which has ensured accessibility over the last year.

Where we didn’t make the progress we hoped to in 2021

• The development of the Quality Mark for enterprise resources highlighted that there was more preparation required, predominantly the re-development of a framework on which to work from. This work will be undertaken next year.

• We haven’t yet implemented a new Programme Management System (PMS). There has been a significant amount of work to advance this project to the point of tender. Development should begin by the end of 2021 with a fully operational PMS available for the 2022/23 academic year.

• While opportunities for volunteer engagement have increased, the actual number of volunteers placed into schools has not matched this. This is because schools and colleges couldn’t permit external visitors on their premises during the pandemic, and because the organisations many of our volunteers work for ceased face-to-face volunteering. Remote opportunities have continued but it’s not often practical to have large numbers of volunteers in one digital environment – smaller numbers tend to work more effectively. We’ll work closely with our partners in 2021/22 to provide the necessary support to increase the number of volunteers working with young people.

• The number of mobilised alumni in our Alumni Network didn’t increase as expected over the course of the year. To report as accurately as possible, a review of the Alumni Network saw inactive members removed during 2020/21, meaning that even with new alumni joining there was not the anticipated increase. This does however mean the network is now far more representative of active alumni and new members will have a net positive impact in 2021/22.

Looking forward to 2021/22 – what will we do?

• Explore the contribution financial education makes to social mobility via research

There is little research available that considers this important link. We’ll be consulting with a range of stakeholders and including this theme in our third Enterprising Mindsets event, Minding Your Money, to advance thinking on this connection.

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STRATEGIC REPORT

• Continue to prioritise access to programmes and services for young people in underserved communities

• Grow Project IF in Index of Multiple Deprivation (IMD) 1-4 areas from 35 schools to over 100.

• Work to make all of our digital and face-to-face programmes free to access for schools in IMD 1-4 areas.

• Fully integrate the Youth Card into our programme offer as a tool that young people can use following our intervention. We can also place relevant YE opportunities onto the Youth Card, prioritising access for those young people in the most underserved communities.

• Release our new My Money Matters financial education e-learning course, which will be freely available to all secondary schools in IMD 1-4 areas.

 Continue re-imagining the Company Programme

In 2021/22, we will conduct a scoping exercise to refine the specifications required to re-develop the existing web platform. This will inform the development phase of the re-imagining process, with an aim to have a prototype of the new Company Programme available to test with young people by the start of the 2022/23 academic year.

 Implement our equity, diversity and inclusion (EDI) review

We’ll compile a report from our anti-racism training and use the learning from this activity to apply more broadly across other areas of EDI. We’ll create a Programmes and Services Charter to make sure new and updated programmes and services consider key areas of inclusivity, accessibility and representation.

 Develop a Quality Mark framework

We’ll work with educators and partners to develop the framework on which we can build the Quality Mark process for enterprise education resources.

 Increase the mobilisation of our volunteers and alumni

With a reduction in Covid restrictions at schools, and more opportunities for our volunteers and alumni to connect remotely, we’ll increase the number of active volunteers and alumni mobilised in support of young people.

 Increase applied learning

All young people should be given opportunities to apply their learning in real and relevant contexts. We’ll be consulting with teachers and other stakeholders on how to enhance applied learning opportunities within secondary schools and create a ‘charter’ that teachers, senior leaders and other stakeholders can align to.

 Increase our engagement of young people directly

We’ll be exploring alternative channels to engage directly with young people to inform our plans to create meaningful opportunities and appropriate support. Social media is integral to this and we’ll be developing a campaign to engage young people using relatable role models.

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STRATEGIC REPORT YOUNG ENTERFIiISE thNL14L REPORT ANDACCOUNTS FOR THEYE4R ENDED 31 JULY2021

YOUNG ENTERPRISE REVIEW OF FUNDRAISING AND FINANCES

Registered Charity No: 313697. Company Limited by Guarantee No: 712260

REVIEW OF FUNDRAISING & FINANCESREVIEW OF FUNDRAISING & FINANCES

The financial objective of YE is to raise sufficient income to cover its operating costs, while generating a surplus to fund future investments and to build reserves.

As outlined in the Chief Executive’s Report, YE reported a surplus of £1.15m for the financial year (2020: surplus £25k).

Income

Income raised in the year increased by £947k (20%) to £5.8m (2020: £4.8m). The main income streams were:

 Voluntary income

YE raises money at both the national and local level. National fundraised income increased by £1.78m to £4.67m (2020: £2.89m), while local fundraised income decreased by £0.44m to £0.36m (2020: £0.8m). One corporate supporter made a very generous one-off unrestricted financial donation, which in large part explains the growth in national fundraised income.

 School contributions

School and college contributions to the programmes that YE delivers was £0.38m (2020: £0.59m). School contributions reduced in the main due to the pandemic, with schools closed for much of the year.

 Government Grants

Grant income in the year amounted to £0.15m (2020: £0.2m).

 Miscellaneous income

Miscellaneous income includes resource development, Quality Mark and subscription fees and income from book sales. Income decreased by £0.08m to £0.144m (2020: £0.225m).

 Gift in kind income

YE receives the benefit of donated services. Income and equivalent costs in the year was £7k (2020: £6k).

----- Start of picture text -----
Miscellaneous income
School contributions
2.5%
6.5%
Grants
Sponsorship 2.5%
Donated services 1.5%
0.1%
Local fundraising
6.2%
Income
£5.8m
National fundraising
80.7%
----- End of picture text -----

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REVIEW OF FUNDRAISING & FINANCESREVIEW OF FUNDRAISING & FINANCES

Expenditure

Our aim as an organisation is to maximise the amount of expenditure on activities that contribute directly to achieving our charitable aims. All of our expenditure ultimately goes towards helping young people, be it direct expenditure on our charitable activities or expenditure to secure future income.

Our operating expenditure was £4.6m in 2021 (2020: £4.8m). We incurred no restructuring costs in the year.

The cost of generating voluntary income was £0.55m and reflects the cost of researching and securing regular donors for the charity (2020: £0.56m).

Expenditure on our charitable activities (educational projects, events and exhibitions) was £4.1m (2020: £4.2m).

Our achievements with this expenditure are set out in this report.

----- Start of picture text -----
Costs of generating voluntary income
11%
Student events and exhibitions
2%
Expenditure
£4.6m
Educational projects
87%
----- End of picture text -----

Key: Total charitable activities represent 89% of total expenditure, 89p in the £1 (educational projects 87% and student events and exhibitions 2%) (2020: 89p)

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YOUNG ENTERPRISE STRUCTURE, GOVERNANCE AND RISK MANAGEMENT

Registered Charity No: 313697. Company Limited by Guarantee No: 712260

STRUCTURE, GOVERNANCE AND RISK MANAGEMENT

YE is a registered national education charity and a company limited by guarantee, governed by its Memorandum and Articles of Association.

The Board of Trustees, members of which are also Directors under company law, has ultimate legal responsibility for our organisation and works to ensure good governance with the help of its committees.

Trustees have experience of the business, education, public and voluntary sectors and include YE alumni and volunteers. Every year, one third of the Directors must retire by rotation, but may then offer themselves for reelection. Trustees can serve a maximum consecutive term in office of seven years and, at the expiry of this term, must take a break from office and may not serve again as a Trustee for a period of one year, unless the Board resolves that they may continue to serve beyond the maximum term.

Trustee appointments are made by the Board. Prospective Trustees meet the Chief Executive and Chairman as part of the recruitment and appointment process and, on appointment, undertake an induction and training process. Newly appointed Trustees are also provided with further information on the governance, activities and operation of YE. They are invited to volunteer in YE programmes to experience first-hand the inspirational work of the Charity.

The Board appoints and delegates responsibility for leadership and the day-to-day management of YE to the Senior Leadership Group. They are responsible to the Board in the execution of their duties. The Senior Leadership Group addresses business planning and performance through a functional approach consisting of Fundraising, Marketing and Communications, Programmes and Services, Operations, Human Resources, Information Technology and Finance.

The objects of the charity are:

• the advancement of education and, in particular, commercial and financial education if and in so far as such purpose shall be charitable; and

• to educate young people in the UK in the organisation, methods and practice of commerce and industry and in all subjects related thereto.

Organisational structure

YE operates in England and Wales, the Channel Islands and through three licensed organisations in Northern Ireland, Scotland and Gibraltar delivering YE-approved programmes. A wholly owned trading subsidiary Young Enterprise Trading Limited donates its profits, generated mainly from sponsorship, to YE.

YE is a member of Junior Achievement Europe (JA Europe), which is Europe’s largest provider of entrepreneurship education programmes, reaching over 3.8 million students in 40 countries. YE is also a member of the JA Worldwide network, reaching over ten million students in over 100 countries.

Committees

The Board has three standing Committees: Risk and Audit, Remuneration, and Nominations Committee, the members of which are appointed from among the Directors. It delegates certain duties to these Committees and receives reports from them.

Risk and Audit Committee, chaired by Helen Nixseaman

On behalf of the Board, this Committee maintains an oversight of the risks faced by YE, the financial reporting process, the audit process (including the appointment of the auditors and agreeing their fees), and the system of internal controls and compliance with laws and regulations. The Committee meets quarterly and reviews YE’s Risk Register, providing challenge to the Executive team and ensuring appropriate actions are planned and executed to mitigate the identified risks and issues. The Committee considers management accounts, three financial re-forecasts throughout the year and the annual budget, prior to recommending them to the Trustee Board.

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Remuneration Committee, chaired by Elizabeth Kitcatt

On behalf of the Board, this Committee makes recommendations to the Board on the Remuneration Policy for the Senior Leadership Group and sets their total remuneration in accordance with such policy. It also reviews their annual performance evaluation. The Committee considers the impact of the remuneration policy set for these individuals on the organisation as a whole, which includes a general oversight of grade salary bands for all staff and a review of awards against annual performance ratings. Pay bands for all grades are externally benchmarked. The Committee also has oversight of the Executive succession planning process, employee benefits, consideration of the pension deficit and determining auto enrolment pension contribution levels.

Nominations Committee, chaired by Helen Nixseaman

The Nominations Committee was established as a formal YE committee in May 2020 and in June 2020 the Board approved the Terms of Reference for the Committee. On behalf of the Board, the Committee will keep under review the structure, size and composition required of the Board. It will also make recommendations to the Board with regard to any desirable changes, consider succession planning for the Board and, where required, advise on and participate in the recruitment and selection process for vacancies in the Senior Leadership Group.

Pay policy for senior staff

The Directors, who are the organisation’s Trustees and the Senior Leadership Group, comprise the key management personnel of the Charity. They are in charge of directing and controlling, running and operating YE on a day-to-day basis. All Directors give their time freely and no Director received remuneration in the year. Details of Directors’ expenses, and related party transactions, are disclosed in notes 3 and 22 of the accounts.

Pay scales are benchmarked for competitiveness against charitable organisations of a similar size, complexity and income. Pay is based on performance and any recommendation to award a pay increase takes account of the financial performance of the Charity and is made by the Remuneration Committee in line with the remuneration policy agreed by the Board.

We are pleased to confirm that there are no discernible pay differences between males and females undertaking similar responsibilities of role within YE.

Public benefit

The Trustees are mindful of their duty under the Charities Act 2011 to ensure that the Charity’s activities exist for the public benefit. They have considered Charity Commission guidance on public benefit and are satisfied that the performance and achievements of the Charity during the year, as summarised in the Chairman’s Statement and Chief Executive’s Report and the Strategic Report, have benefited the public.

Trustees’ responsibility statement

The Trustees (who are also Directors of YE for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with UK Generally Accepted Accounting Practice (UK Accounting Standards and applicable law). Under company law, the Trustees must not approve the financial statements of the charitable group for the period unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group, and of the incoming resources and application of resources, including its income and expenditure.

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 charities' statement of recommended practice (SORP);

• ➔ make judgments and accounting estimates that are reasonable and prudent;

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STRUCTURE, GOVERNANCE AND RISK MANAGEMENT

• ➔ state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• ➔ prepare the financial statements on a going concern basis, unless it is inappropriate to presume that the charitable company and group will continue in business.

The Trustees are responsible for ensuring the maintenance of adequate accounting records that are sufficient to show and explain the charitable company’s transactions. They must also disclose with reasonable accuracy, at any time, the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees confirm that:

• ➔ so far as each Trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and

• ➔ the Trustees have taken all the steps that they ought to have taken as Trustees to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK, governing the preparation and dissemination of financial statements, may differ from legislation in other jurisdictions.

Auditors

Moore Kingston Smith LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006, unless the company receives notice under section 488(1) of the Companies Act 2006.

Management of risk

The Trustees are ultimately responsible for risk management at YE and they are satisfied that appropriate internal control systems and risk management processes are in place. They consider that the following framework provides YE with adequate measures to reduce the impact of identified risks:

• ➔ The Board reviews the full risk register and issues log on an annual basis to satisfy itself that relevant risks are identified and adequately mitigated;

• ➔ The Risk and Audit Committee reviews the risk register and issues log on a quarterly basis and considers the proposed mitigating actions and internal controls to satisfy itself that they are appropriate;

• ➔ The Senior Leadership Group review key strategic and operational risks and issues on a regular basis. They consider progress on mitigating actions, new and emerging risks and opportunities;

• ➔ Management functions help identify, evaluate and manage risks relating to fundraising, business continuity, health and safety, remuneration and operational needs.

As in 2020, our most significant risks and mitigating actions are set out below:

Risk: Lack of reserves (funds and liquidity) to respond to new needs or requirements

Mitigation:

• Reserve levels are kept under regular review by the Risk and Audit Committee and are reviewed monthly by the Executive team against expected needs.

• The Development team are seeking to increase multi-year agreements with existing supporters.

• Income generation focuses on funding core activity with appropriate controls in place to ensure a contribution to YE’s core costs.

• Cash is monitored closely, and a monthly cash flow forecast is prepared and shared with management and Board members.

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Risk: Uncertain economic and political climate impacts on fundraising

Mitigation:

• To ensure the ongoing strength of pipeline, fundraising activity is split between management of existing supporters – to grow those relationships – as well as new business development to identify new supporters.

• Diversification of national fundraising approaches and income streams, with particular focus on unrestricted funds, diversifying industry sectors of support and cultivating multi-year asks.

• Clear communication of YE’s vision and mission in a concise case for support to encourage unrestricted funding.

• Continue to maximise opportunities to secure centre income by adding value to teaching and learning plans.

Risk: Failure to attract and retain the right quality of staff

Mitigation :

• Annual salary survey and pay review undertaken to establish if YE pays sector market rates. In our 2021/22 year we will undertake a comprehensive employee benefits review and benchmarking exercise.

• Training, working conditions, performance development and feedback systems are reviewed on a regular basis.

• Staff turnover is monitored and reported to senior managers on a quarterly basis and benchmarked against the sector. Exit interviews are held to identify any possible trends in leavers’ reasons.

• Succession planning of senior roles undertaken, shared with, and reviewed by YE’s Remuneration Committee.

Risk: Failure to raise national and local income budgets

Mitigation:

• Careful recruitment of the National Fundraising team to ensure every team member has the right level of skills and experience to deliver.

• Regular monitoring and challenge of national and local fundraised income by the CEO and Director of Finance.

• Focus on a reduced portfolio of programmes delivering maximum impact.

• Three-year fundraising strategy developed and reviewed regularly.

Reserves

The Trustees review free reserve levels annually and monitor them throughout the year. Free reserves exclude fixed assets and restricted funds and assist YE in continuing its operations in a changing environment. Management regularly review funds within the scope of the reserves policy to take into account the latest targets and assessment of risks and opportunities.

At 31 July 2021, free reserves were £1.0m, 2.7 months annual expenditure (2020: £0.05m, 0.1 months). Trustees recognise that YE’s restricted funds mostly support core ongoing activity, and if the calculation of free reserves included these, the corresponding figures would be £1.9m – 5.0 months’ annual expenditure (2020: be £0.95m – 2.2 months’ annual expenditure).

The Trustees consider that in the light of the strategic plan to continue to develop charitable activities and to manage risk, YE should target free reserves of four months of annual expenditure. This target was increased during the year following Board approval given the significantly improved reserves position.

The Trustees share management’s commitment to ensuring that the financial performance over the medium term brings the level of reserves in line with the policy.

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STRUCTURE, GOVERNANCE AND RISK MANAGEMENT

Going concern

The Board of Trustees has reviewed YE’s financial position, taking into account: the level of reserves and cash, budgets, financial projections, and systems of financial control and risk management. As a result, the Board believes YE is well placed to manage successfully its operational and financial risks.

The Board therefore considers there is a reasonable expectation that the Charity and group have adequate resources to continue for the foreseeable future. For this reason, the Board continues to adopt the going concern basis of accounting in preparing the accounts.

Approved by the Trustees on 9 December 2021 and signed on their behalf by:

Simon Lewis OBE Chairman

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STRUCTURE, GOVERNANCE AND RISK MANAGEMENT

Name of the charity Young Enterprise Registered charity number 313697 Registered company number 712260 Registered office Coram Campus 41 Brunswick Square London WC1N 1AZ President William Salomon

The Trustees (who are the Directors of the Company) who served during all or part of the reported year, and to the period up to the date of this report, are:

Simon Lewis OBE (Chair) Sabreen Ahsan (from July 2021) Wayne Bulpitt CBE Graham Farhall Sajaad Jetha Mina Karshala (from July 2021) Elizabeth Kitcatt Helen Nixseaman (Vice Chair) Carl Reader (from March 2021) Rajiv Sharma Chris Slater Johaan Wiggins

Company Secretary

Tim Stanbury

Independent member of the Risk and Audit Committee

Andrew Baddeley

The Board Committees are:

Risk and Audit Committee

Helen Nixseaman (Chair) Andrew Baddeley Graham Farhall Carl Reader (from March 2021) Rajiv Sharma

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STRUCTURE, GOVERNANCE AND RISK MANAGEMENT

Remuneration Committee

Elizabeth Kitcatt (Chair) Wayne Bulpitt CBE Simon Lewis OBE Rajiv Sharma

Nominations Committee

Helen Nixseaman (Chair) Sajaad Jetha Simon Lewis OBE Chris Slater Rajiv Sharma Johaan Wiggins

Senior Leadership Group

Sharon Davies Chief Executive Officer Steve Arscott Head of Volunteer and Alumni Support Elizabeth Booth Head of Programmes and Services Claire Dever Operations Director Mike Jones Head of Marketing and Communications Megan Murray-Gray Head of Human Resources Anita O’Hara Director of Corporate Partnerships Tim Stanbury Director of Finance and IT Donna Wells Director of Development Russell Winnard Director of Programmes and Services

Auditors

Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD

Bankers

HSBC Bank Plc Prama House 267 Banbury Road Summertown Oxford OX2 7HY

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STRUCTURE, GOVERNANCE AND RISK MANAGEMENT

Solicitors

Fieldfisher Riverbank House 2 Swan Lane London EC4R 3TT Clifford Chance 10 Upper Bank Street London E14 5JJ

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YOUNG ENTERPRISE INDEPENDENT AUDITOR’S REPORT

Registered Charity No: 313697. Company Limited by Guarantee No: 712260

INDEPENDENT AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF YOUNG ENTERPRISE

Opinion

We have audited the financial statements of Young Enterprise (‘the parent charitable company’) and its subsidiaries (altogether ‘the group’) for the year ended 31 July 2021 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement 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 FRS 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 parent charitable company’s affairs as at 31 July 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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’s and parent charitable company's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

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INDEPENDENT AUDITOR’S REPORT

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• Trustees’ annual report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the Trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:

• the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ Annual Report and from preparing a strategic report.

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

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INDEPENDENT AUDITOR’S REPORT

Auditor’s Responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control;

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees;

• conclude on the appropriateness of the Trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern;

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation;

• obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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INDEPENDENT AUDITOR’S REPORT

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

• we obtained an understanding of the legal and regulatory requirements applicable to the charitable company through the use of permanent audit file information, updated this year for any changes that have been identified by management or by our own investigations and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council;

• we obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance and through reviews of relevant accounting and management records;

• we assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, based on our work as outlined above;

• we enquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations, using associated documentary evidence to better understand items of interest;

• based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. As well as specific audit testing, this included approaching accounting records with an inquisitive and sceptical mindset such that we examined items that were felt to be of interest or of higher risk in this area, and obtaining additional corroborative evidence as required.

To address the risk of fraud through management override of controls, we carried out the following work:

• procedures were undertaken to identify any unusual or unexpected matters, and the rationale behind any such matters was examined;

• journal entries were reviewed to identify unusual transactions;

• judgements and assumptions made in determining the accounting estimates set out in the accounting policies were reviewed.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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INDEPENDENT AUDITOR’S REPORT

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and, in respect of the consolidated financial statements, to the charity’s Trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and Trustees those matters which 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 any party other than the charitable company, the charitable company’s members, as a body, and the charity’s Trustees, as a body, for our audit work, for this report, or for the opinion we have formed.

James Saunders (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

6 January 2022

Devonshire House 60 Goswell Road London EC1M 7AD

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

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YOUNG ENTERPRISE ACCOUNTS

Registered Charity No: 313697. Company Limited by Guarantee No: 712260

ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2021ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2021

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Notes Donations and grants National fundraising Local fundraising Government grant Gifts in kind and donated services Activities for generating funds Sponsorship Investment income Interest receivable Schools contributions Miscellaneous income Costs of generating voluntary income Fundraising costs 5 Educational projects Events and exhibitions Restructuring costs Total funds brought forward Total funds carried forward INCOMING RESOURCES INCOMING RESOURCES FROM GENERATED FUNDS INCOMING RESOURCES FROM CHARITABLE ACTIVITIES TOTAL INCOMING RESOURCES RESOURCES EXPENDED COST OF GENERATING FUNDS CHARITABLE ACTIVITIES OTHER RESOURCES EXPENDED TOTAL RESOURCES EXPENDED NET INCOMING RESOURCES/ MOVEMENT IN FUNDS RECONCILIATION OF FUNDS	Unrestricted Fund Restricted Fund Endowment Fund Total 2021 Total 2020 £’000 £’000 £’000 £’000 £’000 1,269 3,386 - 4,655 2,892 12 361 - 373 795 148 - - 148 205 7 - - 7 6 87 - - 87 126 0 - - 0 3 373 - - 373 587 143 - - 143 225
	2,039 3,747 - 5,786 4,839
	548 - - 548 555 316 3,706 - 4,022 4,173 1 61 62 76 - - - - 10
	865 3,767 - 4,632 4,814
	1,174 (20) - 1,154 25
	269 900 21 1,190 1,165
	1,443 880 21 2,344 1,190

The notes on pages 40 to 54 form part of these financial statements.

Note 7 gives details of the consolidated statement of financial activities for the comparative year ended 31 July 2020.

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ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2021

ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021

CONSOLIDATED AND PARENT COMPANY BALANCE SHEET AT 31 JULY 2021

					Restated
		Group	Group	Charity	Charity
		2021	2020	2021	2020
	Notes	£’000	£’000	£’000	£’000
FIXED ASSETS
Tangible fixed assets	8	-	-	-	-
Intangible assets	9	436	222	436	222
Investments	10	-	-	-	-
TOTAL FIXED ASSETS		436	222	436	222
CURRENT ASSETS
Stocks		25	35	25	35
Debtors	11	360	208	344	197
Cash at bank and in hand		2,709	1,188	2,612	1,041
TOTAL CURRENT ASSETS		3,094	1,431	2,981	1,273
LIABILITIES
Amounts falling due within one year	12	(1,136)	(463)	(1,117)	(441)
NET CURRENT ASSETS		1,958	968	1,864	832
Amounts falling due in more than one year
PENSION LIABILITY	13	50	-	50	-
NET ASSETS		2,344	1,190	2,250	1,054
THE FUNDS OF THE GROUP/CHARITY:
ENDOWMENT FUNDS	14	21	21	21	21
RESTRICTED INCOME FUNDS	15	880	900	880	900
UNRESTRICTED INCOME FUNDS	16	1,443	269	1,349	133
		2,344	1,190	2,250	1,054

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

As permitted by s408 Companies Act 2006, the Charity has not presented its own income statement and related notes. The Charity’s surplus for the year was £1,197,584 (2020: deficit of £111,481)

Approved by the Board, authorised for issue on 9 December and signed on their behalf.

Simon Lewis OBE Chairman

Helen Nixseaman Risk and Audit Committee Chairman

The notes on pages 40 to 54 form part of these financial statements.

Company number: 712260

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ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2021

ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021

CONSOLIDATED CASH FLOW STATEMENT

Notes Net cash generated from operating activities 19 Cash flows from investing activities Purchases of intangible assets 9 Interest received Net cash used in financing activities Net cash increase in cash and cash equivalents 20 Net cash from investing activities Cash flows from financing activities	£’000 £’000 £’000 £’000 1,838 324 (317) (174) - 3 (317) (171) - - - - 1,521 153 2021 2020
	-

The notes on pages 40 to 54 form part of these financial statements

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ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2021ACCOUNTS – NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES

a) Basis of accounting

The accounts are prepared under the historical cost convention, in accordance with applicable accounting standards and Accounting and Reporting by Charities: Statement of Recommended Practice, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2015) and the Companies Act 2006.

YE meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements are prepared in sterling, which is the financial currency of the company. Monetary amounts in these financial statements are rounded to the nearest thousand pounds.

b) Preparation of the accounts on a going concern basis

These financial statements have been prepared on a going concern basis, which assumes the group will continue in operational existence for the foreseeable future. The Trustees have considered whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Group to continue as a going concern. The Trustees have reviewed the forecasts prepared by management for a period of at least 12 months from the date of approval of these financial statements and are satisfied that there are no material uncertainties which might result in the group being unable to meet its liabilities as they fall due during this period. Accordingly they continue to adopt the going concern basis in the preparation of the financial statements

c) Consolidation

The financial statements present the Consolidated Statement of Financial Activities (SOFA), the Consolidated and Parent Charity Balance Sheets and the Consolidated Cash Flow Statement, comprising the consolidation of the Charity and with its wholly owned subsidiary, Young Enterprise Trading Limited. The YE parent charity surplus was £1,198k (2020: deficit £111k). The results of the subsidiary as included in the consolidated income, expenditure and results of the Charity are disclosed in note 10.

d) Capitalisation of fixed assets and depreciation

Fixed assets are capitalised by the Charity when the cost of the asset or the donated value as a gift in kind is over £1,000.

Gift in kind assets capitalised within fixed assets, when receivable, are depreciated in line with the depreciation policy set out below. Gifts in kind are recognised at a reasonable estimate of their gross value, the price the Charity estimates it will have to pay in the open market for an equivalent item.

Depreciation is provided on a straight-line basis over the economic life of the asset estimated at: five years for fixtures, fittings and equipment.

e) Capitalisation of intangible fixed assets and amortisation

Intangible fixed assets are capitalised by the Charity when the cost of the asset is over £1,000. Trade mark and computer software development costs have been capitalised as intangible assets.

Amortisation is provided on a straight-line basis over the economic life of the asset estimated at: five years for computer software development and ten years for trade marks.

f) Investments

Investments in subsidiary undertakings are valued at cost but, where necessary, impairment reviews have been conducted and reflected in the valuation stated.

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g) Stocks

Stocks are stated at the lower of cost and net realisable value. Where necessary, provision is made for obsolete, slow moving and defective stock.

h) Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

i) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term, highly liquid investments with a short maturity of three months or less.

j) Creditors and provisions

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

k) Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

l) Incoming resources

Income is recognised by the Charity when the Charity becomes entitled to it provided that:

• the Charity is the principal object of the funding

• it is probable that the funding will be received

• it can measure the monetary value with sufficient reliability.

The main sources of income are:

• i. Corporate donations and sponsorship

• ii. Trust and Foundation grants

• iii. Major donors

• iv. Public sector funding

• v. School contributions

• vi. Gifts in kind and donated services and facilities

• vii. YE licensees

Income is deferred as a liability when the Charity does not have entitlement or control of the resource in the current accounting period. It is only recognised as income in the accounting period when entitlement arises. Where the Charity is acting as an agent for funding, the funding is not recognised either as income or expenditure.

Grants are recognised in the Statement of Financial Activities in the period to which they relate. Income tax recoverable on gift aid donations is recognised by the Charity in the period within which it is receivable. Donated services and facilities are recognised in the period they are received and recorded at their estimated value to the Charity of the service or facility received. This will be the price the Charity estimates it would pay in the open market for a service or facility of equivalent utility to the Charity.

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m) Resources expended

Expenditure is recognised by the Charity in the period when it is committed and is reported gross. Irrecoverable VAT is recorded as an expense.

Resources expended are analysed on the following basis:

• i. The “Costs of generating funds” reflects all direct salary and operational costs associated with attracting income where fundraising is the primary task of the post holder. Costs also include an apportionment of CEO and Finance departmental salary costs reflecting their contribution to the generation of funds.

• ii. “Charitable activities” cover all direct expenditure incurred for educational projects, events and exhibitions and include an apportionment of salary costs shown under support costs for indirect support providing in the delivery of educational projects, events and exhibitions by staff in central functions.

• iii. “Governance costs” identify the direct costs associated with the constitutional and statutory requirements of the Charity.

n) Leased assets

Rentals payable under operating leases are charged to the statement of financial activities as incurred.

o) Pension schemes

YE pays amounts into an occupational pension scheme, stakeholder and personal pension plans. These contributions are treated as expenditure in the year in which they are payable.

p) Foreign currencies

Transactions in foreign currencies are translated at the rate ruling at the transaction date. Foreign currency balances are translated at the rate of exchange at the balance sheet date. The resulting gains or losses are recognised within the statement of financial activities.

q) Volunteers and interns

YE benefits from volunteers in several ways. Volunteers make up the Local Volunteer Teams across England and Wales, undertaking extensive work to meet the Charity’s objectives in local communities. Volunteers also deliver our programmes by supporting young people with real life entrepreneurship and employment experiences. The value to YE of these volunteers has not been reflected in the financial statements in accordance with the Charities SORP.

r) Fund accounting

The Charity holds the following funds:

Endowment funds

The endowment fund comprises funding for the Sir John Moores’ Memorial Award, which comprises individual awards given to Team Programme students each year.

Restricted funds

Restricted funds are separately accounted for and utilised according to the restrictions that apply. Restricted funds are disclosed by programme in note 15 of the financial statements.

Unrestricted funds

Unrestricted funds are expendable at the discretion of the charity in furtherance of its objectives.

Designated funds

The designated funds are Local Volunteer Team ring-fenced funds for use within the geographic area within which they were raised.

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2. STATUS

The Charity is a company limited by guarantee with no share capital. Each member has undertaken to contribute £1 to the assets of the company to meet its liabilities if called upon to do so. The total amount guaranteed by members at 31 July 2021 is £12 (2020: £9).

3. STAFF COSTS

Average number of people employed by the charity during the year:

	No. of employees	Total	Total
	Full time Part time	2021	2020
Total staff	63 24	87	90

The average full time equivalent staff for the year was 77 (2020:80). The number of staff at year-end was 87 (2020:89) which was 78 (2020:80) full time equivalent.

Total staff costs: Gross wages and salaries Employer’s national insurance costs Employer’s pension costs Occupational pension costs Outstanding contributions at 31 July 2021	2021 2020 £’000 £’000 2,617 2,752 257 268 192 140
	3,066 3,160
	£’000 £’000 175 110 19 16

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4. PUBLIC SECTOR FUNDING

Public sector funding represented 12% of the income resources of the Charity (2020: 11%)

5. BREAKDOWN OF COSTS OF CHARITABLE ACTIVITIES

Activity Educational projects Student events and exhibitions Total Activity Educational projects Student events and exhibitions Total OPERATING CHARGES Operating charges include Auditor's remuneration Depreciation Amortisation Operating lease rentals 6. GOVERNANCE COSTS Audit fee Accountancy and other tax services Legal and other professional fees	Activities undertaken directly Grant funding of activities £’000 £’000 3,759 61	Support costs Total 2021 £’000 £’000 263 4,022 1 62 264 4,084 Support costs Total 2020 £’000 £’000 276 4,173 1 76 277 4,249 2021 2020 £’000 £’000 23 21 1 4 -- 103 27 72112 79108 2021 2020 £’000 £’000 23 21 1 4 28 13
	3,820 -
	Activities undertaken directly Grant funding of activities £’000 £’000 3,847 50 75 -
	3,922 50
	audit other offices other
		52 38

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7. PRIOR YEAR CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

The Consolidated Statement of Financial Activities on page 37 shows only the total for the prior year’s figures. Below are the totals for the year 2019/20, split into Unrestricted, Restricted and Endowment Funds.

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

	**Notes **	Unrestricted	Restricted	Endowment	Total
		Fund	Fund	Fund	2020
		£’000	£’000	£’000	£’000
INCOMING RESOURCES
INCOMING RESOURCES FROM GENERATED FUNDS
Donations and grants
National fundraising		380	2,512	-	2,892
Local fundraising		24	771	-	795
Government grant		205	-	-	205
Gifts in kind and donated services		6	-	-	6
Activities for generating funds
Sponsorship		126	-	-	126
Investment income
Interest receivable		3	-	-	3
INCOMING RESOURCES FROM CHARITABLE ACTIVITIES
Young Enterprise licensees		-	-	-	-
Schools contributions		587	-	-	587
Miscellaneous income		225	-	-	225
TOTAL INCOMING RESOURCES		1,556	3,283	-	4,839
RESOURCES EXPENDED
COST OF GENERATING FUNDS
Costs of generating voluntary income
Fundraising costs		555	-	-	555
CHARITABLE ACTIVITIES	5
Educational projects		956	3,217	-	4,173
Events and exhibitions		25	51		76
OTHER RESOURCES EXPENDED
Restructuring costs		10	-	-	10
TOTAL RESOURCES EXPENDED		1,546	3,268	-	4,814
NET INCOMING RESOURCES/ MOVEMENT IN FUNDS		10	15	-	25
RECONCILIATION OF FUNDS
Total funds brought forward		259	885	21	1,165
Total funds carried forward		269	900	21	1,190

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8. TANGIBLE FIXED ASSETS Group

Cost At 1 August 2020 Additions Disposals At 31 July 2021 Depreciation At 1 August 2020 Charge for the year Disposals At 31 July 2021 Net book value At 31 July 2021 At 31 July 2020	Fixtures, fittings & equipment Equipment gifted in kind Total £’000 £’000 £’000 27 - 27 - - - 27 - 27
	- - -
	27 - 27 - - 27 - 27
	- - -
	- - -
	- - -

Tangible fixed assets are all used for direct charitable purposes.

9. INTANGIBLE FIXED ASSETS

Group

9. INTANGIBLE FIXED ASSETS Group
Cost At 1 August 2020 Additions Transfer Disposals At 31 July 2021 Amortisation At 1 August 2020 Charge for the year Disposals At 31 July 2021 Net book value At 31 July 2021 At 31 July 2020	Intellectual property Computer software development Computer software development Total [Assets under construction] £’000 £’000 £’000 £’000 18 138 138 294 - 317 - 317 - 138 (138) - - 19 - 19
	18 574 - 592
	10 62 - 72 2 101 - 103 - 19 - 19
	12 144 - 156
	6 430 - 436
	8 76 138 222

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10. INVESTMENTS

Shares in subsidiary undertaking:

Young Enterprise Trading Limited

	Shares
	£
Cost of investment
At 1 August 2020 and 31 July 2021	100

The charity holds 100% of the issued ordinary shares and voting rights in Young Enterprise Trading Limited a commercial company which is registered in England with a company number of 7424441 and was incorporated on the 29 October 2010. The results of Young Enterprise Trading Limited and its assets and liabilities at the year end were as follows:

Turnover Expenditure Profit for the year Distribution to parent charity Total assets Total liabilities Net funds	2021 2020 £’000 £’000 102 147 (8) (10)
	94 137
	(137) (169) 123 166 (29) (29)
	94 137

A management charge of £7,129 (2020: £8,115) was incurred from Young Enterprise during the year. An amount of £7,129 (2020: £8,115) was outstanding at the year end, and has been included in creditors in the above figures.

11. DEBTORS

Trade debtors Amounts owed from group undertakings Other debtors Taxation Prepayments and accrued income	Group Group Charity Charity 2021 2020 2021 2020 £’000 £’000 £’000 £’000 251 61 225 53 - - 7 8 55 32 55 32 3 10 6 10 51 105 51 94
	360 208 344 197

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12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors Young Enterprise licensees Taxation and social security costs Accruals and deferred income	Group Group Charity Charity 2021 2020 2021 2020 £’000 £’000 £’000 £’000 269 139 269 138 - 1 - 1 64 93 64 93 803 230 784 209
	1,136 463 1,117 441

13. PENSION SCHEME

The company participates in a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

£11,243,000 per annum From 1 April 2019 to 31 January 2025: (payable monthly and increasing by 3% each on 1 April)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme’s previous valuation was carried out with an effective date of 30 September 2014. This valuation showed assets of £793.4m, liabilities of £969.9m and a deficit of £176.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

£12,945,440 per annum From 1 April 2016 to 30 September 2025: (payable monthly and increasing by 3% each on 1 April) £54,560 per annum From 1 April 2016 to 30 September 2028: (payable monthly and increasing by 3% each on 1 April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

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ACCOUNTS – NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2021

Where the scheme is in deficit, and where the company has agreed to a deficit funding arrangement, the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

PRESENT VALUES OF PROVISION Present value of provision RECONCILIATION OF OPENING AND CLOSING PROVISIONS Provision at start of period Unwinding of the discount factor (interest expense) Deficit contribution paid Remeasurements - impact of any change in assumptions Remeasurements - amendments to the contribution schedule Provision at the end of the period INCOME AND EXPENDITURE IMPACT Interest expense Remeasurements - impact of any change in assumptions Remeasurements - amendments to the contribution schedule Contributions paid in respect of future service* Costs recognised in income and expenditure account	2021 2020 £ £ 49,701 62,760 2021 2020 £ £ 62,760 74,555 333 675 (13,418) (13,027) 26 557 - -
	49,701 62,760
	2021 2020 £ £ 333 675 26 557 - - * * **

*Includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company.

ASSUMPTIONS	2021	2020	2019
	% per annum	% per annum	% per annum
Rate of discount	0.57	0.60	1.00

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

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ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2021ACCOUNTS – NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

DEFICIT CONTRIBUTIONS SCHEDULE	2021	2020	2019
	£	£	£
Year 1	13,820	13,418	13,027
Year 2	14,235	13,820	13,418
Year 3	14,662	14,235	13,820
Year 4	7,476	14,662	14,235
Year 5	-	7,476	14,662
Year 6	-	-	7,476

The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises.

It is these contributions that have been used to derive the company's balance sheet liability.

14. ENDOWMENT FUNDS

At 1 August 2020 Incoming Resources Resources expended At 31 July 2021	2021 2020 £’000 £’000 21 21 - - - -
	21 21

The Endowment Fund comprises funding for the Sir John Moores' Memorial Award, which comprises individual awards given to Team Programme students who have made the most progress and shown the most improvement through their participation in the programme. They each receive a presentation at Regional finals, a certificate and prize of £100.

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15. RESTRICTED INCOME FUNDS

15. RESTRICTED INCOME FUNDS
Company Programme Secondary short programmes Primary programmes Financial education services Financial education programmes Centres of Excellence Other	Balance at 1 August 2020 Incoming Resources Resources Expended Balance at 31 July 2021 £'000 £'000 £'000 £'000 270 867 1,042 95 108 416 524 - - 85 85 - - 69 69 - 424 1,640 1,420 644 98 3 51 50 - 666 576 90
	900 3,747 3,767 880

The following funders require specific disclosure of the income and expenditure for the following grants:

Jack Petchey Foundation Company Programme Secondary short programmes Primary programmes Financial education services Financial education programmes Centres of Excellence Lifesavers project Other	Balance at 1 August 2020 Incoming Resources Resources Expended Balance at 31 July 2021 £'000 £'000 £'000 £'000 40 - 40 -
	40 - 40 -
	Balance at 1 August 2019 Incoming Resources Resources Expended Balance at 31 July 2020 £'000 £'000 £'000 £'000 433 905 1,068 270 9 880 781 108 - - - - 82 66 148 - 49 1,023 648 424 297 1 200 98 15 - 15 - - 408 408 -
	885 3,283 3,268 900

The following funders require specific disclosure of the income and expenditure for the following grants:

Jack Petchey Foundation	Balance at 1 August 2019 Incoming Resources Resources Expended Balance at 31 July 2020 £'000 £'000 £'000 £'000 - 110 70 40
	- 110 70 40

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The purpose of each fund is as follows:

----- Start of picture text -----
Company Programme Students set up and run their own company.
Secondary short programmes One day programmes focused on employability skills.
Primary programmes Students are provided with £5 and have one month to set up and run a
mini business.
Financial education services Services to support those involved in delivering financial education. This
ranges from our teacher training sessions to our Advisory Service.
Financial education programmes High impact programmes that provide an opportunity for schools and
teachers to develop their financial education provision.
Centres of Excellence Providing a whole school improvement framework – a set of national
professional standards through which excellence in financial education is
achievable.
Other Masterclasses tailored to the needs of specific groups and tailored
projects.
----- End of picture text -----

16. UNRESTRICTED INCOME FUNDS

At 1 August 2020 Incoming resources Resources expended Transfer between funds At 31 July 2021	Group Group Group Designated Unrestricted Total £’000 £’000 £’000 18 251 269 5 2,039 2,044 (4) (866) (870) -
	19 1,424 1,443

Our Reserves policy is explained in the Report of the Trustees. The designated funds are made up of the Local Board ring-fenced funds for use within the geographic area within which they were raised. Funds will be expended in the coming year and beyond.

At 1 August 2019 Incoming resources Resources expended Transfer between funds At 31 July 2020	Group Group Group Designated Unrestricted Total £’000 £’000 £’000 19 240 259 2 1,554 1,556 (3) (1,543) (1,546) - - -
	18 251 269

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17. FINANCIAL COMMITMENTS

The annual commitments under operating leases are analysed according to the amounts due in the periods as follows:

Within one year In the second to fifth years inclusive More than five years	Land & Buildings Other Land & Buildings Other £’000 £’000 £’000 £’000 68 33 63 47 17 1 77 22 - - 2021 2020
	85 34 140 69

18. CAPITAL COMMITMENTS

The charity had capital commitments for web development costs of £110k (2020: £233k).

19. NET CASH INFLOW FROM OPERATING ACTIVITIES

19. NET CASH INFLOW FROM OPERATING ACTIVITIES
Net incoming resources Depreciation charges Amortisation charges Decrease/(increase) in stocks Decrease/(increase) in debtors (Decrease)/increase in creditors Interest received Net cash inflow from operating activities	2021 2020 £’000 £’000 1,154 25 - - 103 27 10 (15) (159) 268 730 22 - (3)
	1,838 324

20. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN CASH FUNDS LESS LOANS

Net cash (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at end of year	2021 2020 £’000 £’000 1,521 153 1,188 1,035
	2,709 1,188

21. TAXATION

YE is registered as a charity for taxation purposes and has a group registration for VAT purposes. YE is able to take advantage of the tax exemptions available to charities in respect of income and capital gains received to the extent that such income and gains are applied exclusively for charitable purposes.

No liability to corporation tax will arise in Young Enterprise Trading Limited because the Directors of this company have indicated that they intend to make donations each year to the Charity equal to the taxable profits of the company under the Gift Aid scheme. Accordingly, no provision for taxation has been made in the financial statements.

YOUNG ENTERPRISE ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021

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ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2021

22. RELATED PARTY TRANSACTIONS

Contributions to the value of £2,404 (2020: £17,453) were received as donations from one member of the Board of Trustees. There were no outstanding balances in relation to any of these transactions at the year end.

23. YOUNG ENTERPRISE ACROSS THE UK

The activities of YE in the UK are run through this Charity and three separate autonomous licensee charities which are:

Young Enterprise Northern Ireland

Company Limited by guarantee number NI 32769 Registered Charity number XR 21328 Registered Office address: Grove House 145-149 Donegall Pass Belfast BT7 1DT

Young Enterprise Scotland

Company Limited by guarantee number SC133649 Scottish registered Charity number SC018180 Registered Office address: Rouken Glen Centre Rouken Glen Park Thornliebank Glasgow G46 7UG

Young Enterprise (Gibraltar) Limited

Company registered in Gibraltar Company number 114887 Registered Office address: 124 Irish Town Gibraltar GX11 1AA

YOUNG ENTERPRISE ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021

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ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2021

YOUNG ENTERPRISE ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021

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Young Enterprise is a national charity. We equip young people to grow up with the life skills, knowledge and confidence they need to successfully earn and manage money.

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Young Enterprise Head office: The Coram Campus, 41 Brunswick Square, London WC1N 1AZ

Email: [e-mail] Tel: [phone]

www.y-e.org.uk

Produced and distributed by Young Enterprise. Registered Charity No: 313697