2022-07-31-accounts

YOUNG ENTERPRISE ANNUAL REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

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 2022

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 2021/22 academic year
Looking forward to 2022/23 – 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 2022	35

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CHAIRMAN’S STATEMENT AND CHIEF EXECUTIVE’S REPORT

OUR KEY SUPPORTERS

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

FRANKLIN TEMPLETON

HANSA CAPITAL HARPUR TRUST

HERTFORDSHIRE COUNTY COUNCIL

HONDA MOTOR COMPANY HSBC UK

ALDRIDGE FOUNDATION

ALLIANZ AMAZON ARCONIC ARROW GLOBAL AT&T AVANADE AVIVA BEDFORDSHIRE POLICE BNY MELLON CADOGAN CARGILL CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT CHRIS SLATER CIVICA COLGATE COMMERCIAL EDUCATION TRUST CREDIT SUISSE DELTA AIR LINES DEVON COUNTY COUNCIL DORSET COUNCIL EAST MIDLANDS RAILWAY EUNETWORKS EUROCLEAR FRANCIS C SCOTT CHARITABLE TRUST

HOWMET AEROSPACE

ICANN

INTERCONTINENTAL HOTELS GROUP

JACK PETCHEY FOUNDATION

JIGSAW FOUNDATION

LANCASHIRE COUNTY COUNCIL LINK GROUP

LONDON NORTH EASTERN RAILWAY LSEG LYRECO MANPOWERGROUP M&G MARKETING TRUST MASTERCARD

MAZARS METLIFE MINTEL

MONEY AND PENSIONS SERVICE MONEYGRAM FOUNDATION NATIONAL GRID NOTTINGHAM BUILDING SOCIETY NOVUNA PETER CRUDDAS FOUNDATION

PRINCIPALITY BUILDING SOCIETY

QUILTER SABIC SAGE

SALOMON OPPENHEIMER PHILANTHROPIC FOUNDATION SANTANDER

SEVERN TRENT COMMUNITY FUND SCOR

ST JAMES’S PLACE

THE 29[TH] MAY 1961 CHARITABLE TRUST

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

THE BANHAM CHARITABLE FOUNDATION

THE COMPANY OF THE MERCHANT ADVENTURERS OF THE CITY OF YORK

THE EDUCATION NETWORK

THE ICE

THE ROGER AND INGRID PILKINGTON CHARITABLE TRUST

THE STEEL CHARITABLE TRUST

THE WATERLOO FOUNDATION

THE WORSHIPFUL COMPANY OF WORLD TRADERS

UK COMMUNITY RENEWAL FUND UPS

WELSH GOVERNMENT

WESTMINSTER FOUNDATION

WILLIAM SALOMON

WINDSONG INTERNATIONAL FOUNDATION

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CHAIRMAN’S STATEMENT AND CHIEF EXECUTIVE’S REPORT

CHAIRMAN’S STATEMENT AND CHIEF EXECUTIVE’S REPORT

Chairman’s Statement

This is my third report as Chair of Young Enterprise (YE) and I am pleased to say that the Charity continues to make good progress despite the challenging economic and political environment.

We are giving young people who face the greatest challenges to social mobility more access to opportunities. We are proud to have delivered just under half a million (446,970) learning opportunities for young people across England and Wales during the financial year. We have also delivered a financial surplus of £431,000. This is an impressive achievement given the economic circumstances. We will use the surplus to continue to rebuild our reserves as part of our long-term strategy.

We are targeting a much more modest surplus for the next financial year, and it is a great credit to Chief Executive Sharon Davies and her executive management team that the Charity is so financially robust. There have been a number of significant achievements this year. In particular, the strong appetite for our programme and services within schools, colleges and other educational institutions. We launched My Money Matters, our new digital financial education programme and we continued to make our case to senior policymakers and opinion reformers, including the Secretary of State for Levelling Up, the Secretary of State for Education, the Mayor of Birmingham and policy officials at 10 Downing Street.

We will work hard to build relationships with the new government and will continue to focus on maximising our opportunities to communicate directly with young people – through our new TikTok channel, for example. I am also pleased to report that a YE UK Start-Up winner won the Junior Achievement (JA) Europe Start-Up company of the year.

I would like to take this opportunity to thank the whole YE team who continue to navigate through the post-pandemic world and operate a hybrid working model. They are led by our outstanding Chief Executive, Sharon Davies, who has the gratitude of the whole Board for all she does for the Charity. I would also like to thank the YE Trustees. We have a cohesive and committed Board and I would like to thank, in particular, Vice Chair Helen Nixseaman who left the Board in November, having made a major contribution during her time as a Trustee.

We welcome Andrew Baddeley as a new Trustee and congratulate Raj Sharma who becomes Vice Chair in succession to Helen, and Graham Farhall who becomes Chair of our Risk and Audit Committee. I would also like to thank William Salomon who continues to be a hugely supportive President, and all our volunteer supporters for all they do for YE.

Finally, we are looking forward with great excitement to our 60th anniversary year starting in January 2023. It was William Salomon’s father Sir Walter who founded the Charity, which has gone from strength to strength and plays such an important role in the lives of young people.

We intend to mark this milestone with a number of events and to thank our long-standing corporate supporters; at least one of whom has been involved with YE from our early years. We remain committed to the original purpose of YE to provide young people with opportunities and support to help build their futures.

Simon Lewis OBE Chairman

Watch now: Simon gives his summary of the year and looks ahead to an exciting 2023.

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CHAIRMAN’S STATEMENT AND CHIEF EXECUTIVE’S REPORT

Chief Executive’s Report

It is a privilege to lead YE as we continue to adapt and respond to the changing needs of young people and educators through a time recently described by Andy Burnham, Mayor of Manchester, as one of "growing complexity of the world, that has made it harder than ever to be young".

Over the last 12 months, young people and the educators who support them have not only had to live and learn through a pandemic but do so amidst an escalating cost of living crisis. This is causing young people to worry more and more about finances and its growing impact on their families.

These extraordinary challenges have served only to strengthen our commitment to increasing access to opportunity and support for young people building their futures. Our strong belief is that a young person’s life chances should never be dictated by their starting circumstances, environment or personal networks. This annual report documents our progress in delivering the third year of our No Time Like The Future Strategy and our plans for the future.

The past year has seen an increase in schools, colleges and other educational institutes engaging in YE’s programmes and services. Notably, an 11% increase in primary schools and a 22% increase in secondary schools, which, alongside increases in further and higher education institutes, led to 446,970 financial and educational opportunities being accessed by 403,659 young people.

We are proud to have supported over 9,500 young people learning opportunities at 116 state schools in 2021-22 as part of our Inspiring Futures programme. Initial evaluation insights show the programme to have had a significant impact on increasing the skills, knowledge and confidence of young people experiencing significant barriers to social mobility. We have also piloted YE’s Opportunity Hub, an online platform providing continued access to support and opportunities for YE Alumni, prioritising those who may benefit most from continued support to build their experience, confidence, skills and networks.

Developing the financial capability of our next generation and bridging gaps in young people’s knowledge, skills and mindset is critical. However, the level of financial capability in the UK is falling short of where it should be. In fact, just over one third (38%) of children receive some form of financial education in school and, according to Santander UK, two-thirds of young people believe that a lack of financial education has led them down the path to debt.

Research has found that children begin to form their mindset around money habits between the ages of three and seven, so it’s essential we educate children around money and finances while they are in primary school, despite financial education not being part of the curriculum in England. That’s why the continued development of Money Heroes, a free online financial education programme for children aged 3-11 years, supported by HSBC UK, has been critically important. This programme has engaged over 138,000 young people in the past year.

Making conversations about money and finances more real, relatable and practical helps young people engage more with their learning. In February 2022, we launched My Money Matters, a digital financial education programme designed to help young people learn about topics such as cryptocurrencies, how to avoid becoming a victim of a financial scam, budgeting, and exploring risk and reward in relation to financial investment. The programme aims to help break down financial barriers and support young people to leave school with the knowledge, skills and mindset they need to make positive financial decisions.

People and partnerships

I am indebted to a brilliant group of people whose collective efforts have enabled our continued progress this year. My heartfelt thanks to our Chairman, Simon Lewis, for his vision and leadership and our fantastic board of Trustees for their continued commitment and proactive support of our mission. I’d also like to thank William Salomon and Carolyn Townsend (the son and daughter of YE’s founder) for their passionate support of YE prioritising programmes and services for young people experiencing significant barriers to social mobility. I am in awe of YE’s staff, who never lose sight of the critical contribution our work can make to transform the futures of young people. Also, the incredible volunteers, educators and supporters, who, through challenging and uncertain times, have continued to invest their time in young people’s futures.

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CHAIRMAN’S STATEMENT AND CHIEF EXECUTIVE’S REPORT

Looking forward to the year ahead

A key part of the current strategy is to increase young people’s access to real-world learning opportunities and make them relevant and meaningful to their futures. One way of doing this is to embed applied learning opportunities across the current school curriculum. A high percentage of young people leave school without the skills they need to succeed in the real world. Applied learning can support those most vulnerable with the practical skills they need to enter and succeed in the workforce and work within local communities. This, in turn, can boost a region’s infrastructure. This is a focus area the UK must not lose sight of as a possible recession approaches. Applied learning also has the potential to reduce exclusions and persistent non-attendance by providing young people with the context they desperately need to make sense of their learning and the benefits it might bring.

Experience has taught us that curriculum revision alone, without support, does not bring sustainable change. So, in 2023, at a time when there is already so much pressure on educators, we will continue to be proactive in supporting and championing the powerful impact of applied learning in schools across England and Wales. This includes the launch of a new report featuring YE case studies of applied learning in action.

As secretariat for the All-Party Parliamentary Group for Financial Education for Young People, we look forward to the January 2023 launch of the inquiry report on barriers to delivering financial education identified by educators, which will inform the ways forward to address these barriers.

Next year YE celebrates 60 years of transforming young people’s futures. Plans include campaigns and events to reflect and celebrate the long-term impact of our work, including first-hand stories from YE’s alumni community. In autumn, 60 years on from when the very first programme took place with 12 teenagers in Kent, we launch a reimagined Company Programme. This will seek to provide a more relevant, digital support structure for young people, increased engagement with relatable role models (through video workshops), and more personalised monitoring and assessment of knowledge, skills and mindset.

There has never been a more important time to be in young people’s corner – to champion and invest in them and to work in partnership to create opportunities that build relevant, real-world skills that see them successfully preparing for the changing world of work, regardless of their starting point. As YE enters a seventh decade in service of young people, one thing is for certain, together with our partners we will continue to be relentless in pursuit of that aim.

Sharon Davies CEO Young Enterprise

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

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02 11 STRATEGIC REPORT

STRATEGIC REPORT

Our vision

We believe that no young person should be left behind. Our vision is that every young person is provided with the opportunity to learn the vital 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

All our programmes and services are designed to provide real and relevant learning opportunities to young people. These opportunities focus on developing the skills, competencies and mindset required to successfully navigate complex and changeable future pathways. Academic attainment on its own is not enough for many young people. YE provides the real-life scenarios in which learning can be applied in practical ways and, in doing so, supports the development of crucial skills, competencies and mindsets.

It is critical that such meaningful opportunities for young people are complemented with appropriate support. This can come from a wide variety of sources, including educators, parents, carers, YE volunteers and staff, and many others beyond. This is why we have committed to partnering with all educators to make sure that young people do not just receive meaningful provision but that this is combined with appropriate support. The two combined can change young people’s futures.

Our offer consists of three tiers:

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 the resources to run the challenges themselves, to our Financial Education Planning Frameworks, which provide frameworks of outcomes that educators can use to develop their own coherent programmes of provision.

Opportunities for professional development

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

In-centre support

Our in-centre provision is either directly delivered to young people by our regional teams of educational partnership managers within the centre or provided to the educators and senior leaders by our team of education consultants. In each case, we work together with the educators to establish meaningful learning opportunities. 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, or our Centre of Excellence programme, where we work with centres to embed financial and enterprise education as examples of best practice and support them to share their learnings with other local centres.

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STRATEGIC REPORT

Our No Time Like The Future Strategy

Launched in January 2020, No Time Like The Future (NTLTF) is our organisational strategy which concludes in 2023. The overall outcomes of NTLTF are:

• Create one million opportunities to help young people build their futures

• Mobilise 40,000 volunteers, teachers, and alumni

Progress against the NTLTF outcomes after year 2

The NTLTF strategy operates in calendar years, so is reported to the end of 2021:

	At the end of 2020	At the end of 2021	Forecast as at the end of 2022	Target by the end of 2023
Learning opportunities	229,412	572,525	993,525	1,000,000
Mobilised volunteers, teachers and alumni	4,815	14,816	27,500	40,000

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

Our progress has been reported against key areas in our 2020/21 annual report that we’ve worked towards during 2021/22. Achievements are colour-coded to align to the relevant NTLTF goals.

1. Exploring the contribution financial education makes to social mobility via research

• This was a key theme of our third Enterprising Mindset series: ‘Minding Your Money’. Podcast guests included teachers, young people and business leaders such as Steve Hare, CEO of Sage, Justine Greening, the former Secretary of State for Education, and Michaela Wright, Head of Corporate Sustainability at HSBC UK. Many guests felt strongly that there should be a connection between financial capability and social mobility. The showcase Minding Your Money event in November 2021, featuring a fireside chat with Money Saving Expert Martin Lewis and over 300 guests, found that almost all attendees (93%) felt further research is needed to explore the relationship between financial capability and social mobility.

• YE hosts the Financial Education Forum twice a year for key stakeholders in financial education to share best practice and collaborate. Over four fifths of this audience felt that financial education contributed to social mobility to a large (49%) or moderate (34%) extent.

• YE has commissioned an external evaluator to explore whether key outcomes from YE programmes and services are contributing factors to social mobility. Financial capability is one of these outcomes. The final report is due in early 2023.

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STRATEGIC REPORT

1. Continuing to prioritise access to programmes and services for young people in underserved communities

2. Our Inspiring Futures programme, which works solely with schools in Indices of Multiple Deprivation (IMD) 1-4, providing free access to digital and face-to-face programmes has grown from 35 schools in 2020/21 to 116 schools in 2021/22, providing 9,597 learning opportunities for young people.

3. Evaluation of young people involved in Inspiring Futures highlights that on a self-assessment basis they start the programme behind their peers in relation to key skills, competencies and mindsets associated with being prepared for the future. However, with programme intervention they finish at least five percentage points ahead.

4. Thanks to generous funder support all of our digital programmes are now freely available to all secondary schools in IMD 1-4 in England and Wales.

5. My Money Matters, our new financial education e-learning course, was released in February 2022. This is also free to all secondary schools in IMD1-4 in England and Wales.

3. Continuing to re-imagine the Company Programme (launching in September 2023)

• An external agency was commissioned to conduct a scoping exercise to give us a better understanding of the existing systems, challenges and opportunities to provide a more relevant, digital support structure for young people. The result is a new, engaging environment that guides young people through Company Programme, imparts meaningful learning at relevant points, connects them to other programme tools such as the bank account and trading platform, and personalises the monitoring and assessment of knowledge, skills and mindset as they progress.

• The new Company Programme is currently in development, supported by working groups of key stakeholders including young people, educators, volunteers and YE staff.

• A new YE business bank account accessible to under 18s has been negotiated with a new partner. It will provide young people with online and mobile enabled banking facilities. We are rolling this account out in the 2022/23 academic year and, if successful, it will become an embedded part of the re-imagined Company Programme in 2023.

4. Implementing our Equity, Diversity and Inclusion Review

• A YE Programmes and Services Design and Development Charter has been created to ensure our programmes and services content is consistently inclusive and representative.

• A Teacher Advisory Group has been set up to provide input and feedback on all YE programmes and services on areas such as content, format, accessibility and inclusivity.

• Nation-specific versions of the Your Money Matters textbook have been delivered into state-funded secondary schools in Northern Ireland, Scotland and Wales (bilingual).

• Significant accessibility developments have been made across the Money Heroes programme to support our work with Children in Need groups and other special educational needs and disabilities settings. These include braille books, British Sign Language signed stories, audiobooks, large print books, and large books for use in small group situations.

• Programme registration questions and learner surveys have been updated in 2021/22 to offer improved gender and ethnic group options, in line with best practice and Census 2021 consistent categories, and so that young people are asked for this personal information themselves, rather than being collected via the centre lead. These categories have also been built into the Programme Management System.

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STRATEGIC REPORT

5. Developing resources and a Quality Mark process for enterprise education resources

• Research has been carried out to understand educator needs in relation to enterprise education. This has culminated in the need for a framework to support educators to identify appropriate enterprise-related outcomes, as well as highlighting some of the opportunities to deliver this in meaningful ways. A draft version of the framework will be developed in 2022/23 to test with schools and other stakeholders.

6. Increasing the mobilisation of our volunteers and alumni and extending support and opportunities for young people

• In June 2022 we developed a new Opportunities Hub. This is an online platform that provides young people who have engaged in our programmes access to a range of additional opportunities, many of which are provided by employers, skills providers and other charitable organisations. Young people can access the Opportunities Hub when they become alumni of Young Enterprise. The platform provides personal and professional development opportunities and ongoing support to help young people plan their futures. We will be growing the opportunities available on the Opportunity Hub across 2022/23.

• There has been an 85% increase in volunteers and alumni mobilised in 2021/22 compared to the previous year (1,183 in 20/21, 2,190 in 21/22). With the reduction in Covid restrictions the availability of volunteers to go into schools has increased accordingly.

7. Enhancing applied learning

• In September 2021 we surveyed over 200 teachers. When asked how important they felt it was for young people to be able to apply their learning, most respondents (96%) said they felt it was important. They also said the most important factors in providing applied learning was that the context used is real and relevant to young people and where they have the opportunity to develop their mindsets.

• An external report has been commissioned exploring the practical ways that schools have embedded applied learning into their everyday teaching and learning and the benefits of this. YE has carried out ten case studies with schools that are delivering applied learning in effective ways to understand the themes that exist. We aim to publish this early 2023.

• A new All Party Parliamentary Group on Financial Education for Young People inquiry was conducted looking at the barriers that exist in schools in the delivery of financial education. While the focus is on financial education, the way in which it is delivered often takes an applied learning approach. The inquiry outcomes are due in January 2023 and will provide insight into how schools can best be supported to implement applied learning opportunities (for financial education and beyond).

8. Increasing our engagement with young people directly

• We launched YE on TikTok in spring 2022 to inspire and educate young people by helping them learn to earn and look after their money. We also repositioned the YE Instagram channel to share similar influential content, while continuing to use the channel to provide relevant information for the 2021/22 cohort of Company Programme participants.

• Direct engagement with young people through our day programmes increased by 155% from 2020/21. Nearly 27,000 opportunities were provided to young people through day programmes in 2021/22. Following the pandemic, schools have favoured face-to-face programme engagement opportunities with young people, recognising the importance of this human connection.

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STRATEGIC REPORT

• The Grid for Good programme, which we run in conjunction with National Grid, has moved from a purely digital model to a blended approach. This has allowed face-to-face engagement with young people via YE-delivered workshops, as well as further opportunities available via National Grid. This year also saw a collaboration with the National Citizenship Service (NCS), delivered directly to young people engaged in NCS.

Other achievements we are proud of in 2021/22

• We concluded the third and final series of our Enterprising Mindsets campaign, exploring the role of mindset in helping us to live, learn and ultimately lead in the future. The campaign led to the publication of a number of YE insight reports including Transforming Lives Through Financial Education, Breaking Down the Barriers and Nurturing the Next Generation of Female Entrepreneurs and the final report in the series, Make it Real and Make it Mean Something.

• We launched The Teachable Moment, an online professional learning course for primary and secondary educators in Wales, aligned to the Curriculum for Wales. This is our very first fully bilingual teacher training offer.

• We achieved CPD certified status from the CPD Certification Service across our whole teacher training offer. This helps assure teachers of the quality of the provision and enables them to use the training hours towards their individual CPD hours.

Our reach in the 2021/22 academic year

2021/22 reach in England and Wales (2020/21 figures for comparison)
1,405(1,262) primary schools, 54all-through schools,
which is 8%of all primary schools which is 34%of all all-through schools
1,134(928) secondary schools, 26%(24%) of secondary schools in the 40% most
which is 27%of all secondary schools* deprived areas have engaged with YE
96(70) further education (FE) colleges, which is 29% 446,970(359,813) learning opportunities provided to
of all FE Colleges* young people
20(19) higher education (HE) institutes, which is 12%	15,813(5,288)educatorsengaged with YE across
of all HE institutes	England and Wales

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

Across England and Wales, 403,659 young people participated in almost half a million learning experiences. Of these, 422,458 learning experiences and 7,324 educator engagements were provided across a total of 3,120 educational centres, including independent and special schools, pupil referral units, other types of centres defined as non-applicable on the Department for Education database, and informal education settings. A further 24,512 learning experiences and 8,489 educator engagements were provided in settings not included on the government’s ‘Get Information About Schools’ database, for example, parents and their children who have engaged with Money Heroes.

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STRATEGIC REPORT

In 2021/22 our reach in state secondary schools increased by 22% and in state FE colleges by 37%. We’re really pleased to have rebuilt centre engagement back to near pre-pandemic levels.

What we did not do in 2021/22 that we said we would

• The development of a framework for enterprise-related outcomes, from which enterprise resource development and a Quality Mark process can be driven, has required significant additional research and consultation. For this reason, the framework itself has not yet been developed. However, we do now have a far better understanding of what will make the greatest impact for teachers and will be using this to form a draft framework to pilot in 2022/23.

• While we have seen encouraging growth in volunteer mobilisation, not all the amendments to the Volunteer Journey have been implemented in 2021/22. This is now a priority for 2022/23, including a new volunteer management system which will provide a consistently high-quality experience for our volunteers as well as detailed data insight.

Looking forward to 2022/23 – what we will do

Celebrate 60 years of transforming young people’s futures

YE will celebrate 60 years of supporting young people throughout 2023. We’ll reconnect with alumni from all six of those decades, introduce some new branding for the year as well as enjoy a host of events and celebrations. While reflecting back is important, we’ll also use the year to be proactive, providing even more meaningful opportunities to those for whom it can make the greatest difference through our programmes and services.

Develop and test a re-imagined Company Programme ready to launch in 2023/24

By August 2023 we will have a new online platform to guide, support and monitor young people as they progress through their Company Programme experience. The new platform will provide increased opportunities for them to engage in self-led learning as well as substantially increasing the monitoring and assessment of an individual’s progress and development.

Applied learning manifesto ask

Building on the research conducted in 2021/22, we aim to engage with political parties to secure a commitment to enhancing an applied learning approach within education. This is not an ask for curriculum change, but a recognition of the benefits of applied learning and the sharing of this across the education community.

Grow the alumni network

We aim to grow the alumni network substantially over 2022/23, using the Opportunity Hub as a real and relevant tool for engaging young people. We will continue to grow the number of meaningful opportunities that are accessible on the Opportunity Hub to ensure this remains relevant to those that join.

Build a clear understanding of the contribution YE programmes and services make to social mobility

External research will enable us to understand the extent to which key programme and service outcomes can be attributed as contributors to social mobility. As different programmes and services achieve different outcomes for young people, we will be able to reflect on the social mobility impact of the full programmes and services offer.

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STRATEGIC REPORT

Utilise Programme Management System fully across the organisation

A new Programme Management System was developed in 2021/22. Implementation and training will take place in 2022/23. The new system will allow data to be captured, analysed and reported via one central system, providing greater operational efficiencies across all areas of the Charity.

Enhance our Volunteer Journey, increasing our mobilised volunteers and consistency of volunteer experience

Our Volunteer Journey will be re-developed, ensuring a consistent approach to recruitment, training, deployment and impact of our volunteers. This, along with the development of digital volunteering opportunities, will lead to increased mobilisation of our volunteers in 2022/23.

Prepare our next strategy beyond No Time Like The Future

We will use 2022/23 to develop our new organisational strategy beyond 2023.

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stRATEGIC REPORT y¢XJNGE￿1[ERFRL￿E ANNuALREpoEfNNDA￿CYJN15FoR THEIEAR ENDED31 JULY2022

03 Jp_• REVIEW OF FUNDRAISING AND FINANCES

REVIR E W OF FUNDRAISING ANDVIEW 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 Chairman’s Report, YE reported a surplus of £431k for the financial year (2021: surplus £1,154k).

Income

Income raised in the year decreased by £629k (11%) to £5,157k (2021: £5,786k). The reduction in income is largely explained by a very generous one-off unrestricted financial donation made by a corporate supporter in the previous year.

The main income streams were:

Voluntary income

YE raises money at both the national and local level. National fundraised income decreased by £634k to £4,021k (2021: £4,655k), while local fundraised income decreased by £11k to £362k (2021: £373k).

School and college contributions

School and college contributions to the programmes that YE delivers was £589k (2021: £373k). School contributions were impacted in the prior year by the Covid pandemic, with schools closed for much of the year.

Government grants

Grant income in the year amounted to £0k (2021: £148k).

Miscellaneous income

Miscellaneous income includes resource development, Quality Mark and subscription fees and income from book sales. Income decreased by £97k to £46k (2021: £143k).

Gift in kind income

YE receives the benefit of donated services. Income and equivalent costs in the year was £42k (2021: £7k).

----- Start of picture text -----
Miscellaneous income Interest Receivable
School contributions 0.9% 0.2%
11.4%
Sponsorship
1.7%
Donated services
0.8%
Local fundraising
8%
Income
£5,157k
National fundraising
77%
----- End of picture text -----

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REVIEW OF FUNDRAISING & FINAAND FI N CESANCES

Expenditure

Our aim as an organisation is to maximise the amount of expenditure on activities that contribute directly to achieving our charitable aims. All 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 £4,726k in 2022 (2021: £4,632k). We incurred no restructuring costs in the year.

The cost of generating voluntary income was £562k and reflects the cost of researching and securing regular donors for the Charity (2021: £548k).

Expenditure on our charitable activities (educational projects, events and exhibitions) was £4,058k (2021: £4,022k).

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

----- Start of picture text -----
Costs of generating voluntary income
12%
Student events and exhibitions
2%
Expenditure
£4,726k
Educational projects
86%
----- End of picture text -----

Key: Total charitable activities represent 88% of total expenditure, 88p in the £1 (educational projects 86% and student events and exhibitions 2%) (2021: 89p)

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04 //i,ill,:" STRUCTURE, GOVERNANCE I AND RISK MANAGEMENT

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. Trustees serve a maximum of two consecutive terms of three years in office and exceptionally (but not in the case of the Chair and any Vice Chair) one extra term of two years. At the expiry of this maximum term, Trustees 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 (see also Nominations Committee below).

The Board appoints and delegates responsibility for leadership and the day-to-day management of YE to the Senior Leadership Group (see page 21). 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, Educational Partnerships, 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 (JA) Europe, which is Europe’s largest provider of entrepreneurship education programmes, reaching over four million students in 41 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 the 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 Graham Farhall (Helen Nixseaman until November 2022)

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

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STRUCTURE, GOVERNANCE AND RISK MANAGEMENT

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.

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 Simon Lewis (Helen Nixseaman until November 2022)

On behalf of the Board, the Committee keeps under review the structure, size and composition required of the Board. It also makes recommendations to the Board regarding any desirable changes, considers succession planning for the Board and, where required, advises on and participates 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, are the key management personnel of the Charity. They direct, control, run and operate 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 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, the 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.

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STRUCTURE, GOVERNANCE AND RISK MANAGEMENT

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

• ➔ 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.

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Our most significant risks and mitigating actions are set out below:

Risk: Safeguarding and/or child protection breach

Mitigation:

• All operational staff and key post holders are DBS checked every three years. All new volunteers that have regular contact with children and/or vulnerable adults are DBS checked and are reminded of their responsibilities via the Guide to Volunteering/Local Volunteer Team Member Handbook and YE's safeguarding policy. Further DBS checks are carried out every three years.

• Online child protection (safeguarding) training is carried out for all new operational starters/contractors and existing staff and is renewed every two years.

• All Local Volunteer Teams and Business Advisers must complete safeguarding training and submit evidence to YE for filing. Volunteers are advised that unless safeguarding training has been completed, they will be unable to

• YE’s safeguarding and health and safety policies were updated in August 2022. We are awaiting external SAFEcic re-accreditation of the revised policies.

• Compliance with health and safety legislation.

• New safe recruitment policy prepared to ensure that YE has safeguarding at the centre of our recruitment processes.

Risk: Uncertain economic and political climate impacts on fundraising

Mitigation:

• To ensure the ongoing strength of the funding 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.

• Corporate and philanthropy fundraising strategy regularly reviewed. Key priorities for 2022/23 are to continue to diversify our corporate and philanthropic supporter base, increase the number of multi-year funders and develop new initiatives to maximise leverage of YE's 60th year.

• Continued focus of our CEO towards external stakeholders in 2022/23 to increase the profile of the Charity and

• Continue to maximise opportunities to secure centre income by adding value to teaching and learning plans. This includes mapping curriculum and accrediting contribution to qualifications to access centre income budgets.

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

Mitigation:

• Annual salary survey and pay review undertaken to ensure YE pays sector market rates.

• Net Promoter Score all staff survey undertaken every six months with an action plan reporting back on development areas.

• In the past year, we undertook a comprehensive employee benefits review and benchmarking exercise and have enhanced benefits in several areas.

• 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 is undertaken, shared with, and reviewed by YE’s Remuneration Committee.

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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.

• National fundraising team use industry standard The Raiser’s Edge CRM database to manage the fundraising cycle, giving robust data and analytics.

• 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.

• Use of podcast and thought leadership events to engage new audiences and raise YE’s profile.

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 reviews funds within the scope of the reserves policy to take into account the latest targets and assessment of risks and opportunities.

At 31 July 2022, free reserves were £1.45m, 3.4 months’ annual expenditure (2021: £1.0m, 2.7 months’ annual expenditure). 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 £2.1m – 4.9 months’ annual expenditure (2021: be £1.9m – 5.0 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 4 months of annual expenditure. This target was increased in the 2020/21 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.

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.

The report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

Approved by the Trustees on 8 December 2022 and signed on their behalf by:

Simon Lewis OBE Chairman

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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 Andrew Baddeley (from May 2022) Wayne Bulpitt CBE Graham Farhall Sajaad Jetha Mina Karshala Elizabeth Kitcatt Donna Neely-Hayes MBE (from October 2022) Helen Nixseaman (retired November 2022) Carl Reader Rajiv Sharma (Vice Chair) Chris Slater Johaan Wiggins

Company Secretary Tim Stanbury

The Board Committees are:

Risk and Audit Committee

Graham Farhall (Chair) Andrew Baddeley Helen Nixseaman (retired November 2022) Carl Reader Rajiv Sharma

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Remuneration Committee

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

Nominations Committee

Sajaad Jetha Simon Lewis OBE (Chair) Helen Nixseaman (retired November 2022) 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 Mike Jones Head of Marketing and Communications Megan Murray-Gray Head of Human Resources Anita O’Hara Director of Corporate Partnerships Lee Palmer Director of Educational Partnerships Tim Stanbury Director of Finance and IT Donna Wells Director of Development Russell Winnard Chief Operating Officer

Auditors

Moore Kingston Smith LLP 6[th] Floor 9 Appold Street London EC2A 2AP

Bankers

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

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Solicitors

Fieldfisher Riverbank House 2 Swan Lane London EC4R 3TT Wilson Gunn 5[th] Floor, Blackfriars House The Parsonage Manchester M3 2JA

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05 4,,1. INDEPENDENT AUDITOR'S REPORT

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 2022 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 by 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 2022 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.

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 during 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.

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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 has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and Parent Charitable Company and their environment obtained during 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.

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 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 based on 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.

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• obtain an understanding of internal control relevant to the audit 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 can detect irregularities, including fraud, is detailed below.

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 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 noncompliance 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.

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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.

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.

Date 10 January 2023 James Saunders (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 6[th] Floor 9 Appold Street London EC2A 2AP

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

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06 ACCOUNTS

ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2022

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

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 2022 Total 2021 £’000 £’000 £’000 £’000 £’000 417 3,604 - 4,021 4,655 61 301 - 362 373 - - - - 148 42 - - 42 7 88 - - 88 87 9 - - 9 - 589 - - 589 373 46 - - 46 143
	1,252 3,905 - 5,157 5,786
	562 - - 562 548 20 4,038 - 4,058 4,022 8 98 106 62 - - - - -
	590 4,136 - 4,726 4,632
	662 (231) - 431 1,154
	1,443 880 21 2,344 1,190
	2,105 649 21 2,775 2,344

The notes on pages 39 to 53 form part of these financial statements

The notes on pages 30 to 44 form part of these financial statements.

Note 7 gives details of the consolidated statement of financial activities for the comparative year ended 31 July 2021.

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ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2022

CONSOLIDATED AND PARENT COMPANY BALANCE SHEET AT 31 JULY 2022

Notes FIXED ASSETS Tangible fixed assets 8 Intangible assets 9 Investments 10 TOTAL FIXED ASSETS CURRENT ASSETS Stocks Debtors 11 Current asset investments Cash at bank and in hand TOTAL CURRENT ASSETS LIABILITIES Amounts falling due within one year 12 NET CURRENT ASSETS Amounts falling due in more than one year PENSION LIABILITY 13 NET ASSETS THE FUNDS OF THE GROUP/CHARITY: ENDOWMENT FUNDS 14 RESTRICTED INCOME FUNDS 15 UNRESTRICTED INCOME FUNDS 16	Charity Charity 2022 2021 £’000 £’000 £’000 £’000 - - - - 624 436 624 436 - - - - Group 2022 Group 2021
	624 436 624 436 25 25 25 25 348 360 330 344 2,000 - 2,000 - 844 2,709 750 2,612
	3,217 3,094 3,105 2,981 (1,055) (1,136) (1,029) (1,117)
	2,162 1,958 2,076 1,864
	11 50 11 50
	2,775 2,344 2,689 2,250
	21 21 21 21 649 880 649 880 2,105 1,443 2,019 1,349
	2,775 2,344 2,689 2,250

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 £438,427 (2021: surplus of £1,197,584)

Approved by the Board, authorised for issue on 8 December 2022 and signed on their behalf.

Simon Lewis OBE Graham Farhall Chairman Risk and Audit Committee Chairman

The notes on pages 39 to 53 form part of these financial statementsThe notes on pages 30 to 44 form part of these financial statements.

Company number: 712260

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ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2022

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 £’000 458 1,838 (323) (317) - - (323) (317) - - - - 135 1,521 2022 2021

The notes on pages 30 to 44 form part of these financial statementsThe notes on pages 39 to 53 form part of these financial statements

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ACCOUNTS - FOR THE YEAR ENDED 31 JULY 2022

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 of 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 £438k (2021: surplus £1,198k). 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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ACCOUNTS – NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022- FOR THE YEAR ENDED 31 JULY 2022

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) Current asset investments

Current asset investments includes fixed term deposit accounts with a maturity of three months or more.

j) 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.

k) 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.

l) 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.

m) 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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ACCOUNTS – NOTES TO THE FINANCIAL STATEMENTSACCOUNTS - FOR THE YEAR ENDED 31 JULY 2022

n) 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.

o) Leased assets

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

p) 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.

q) 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.

r) 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.

s) Fund accounting

The Charity holds the following funds:

Endowment funds

The endowment fund comprises funding for the Sir John Moores’ Memorial Award, which are 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 14 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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ACCOUNTS – NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022- FOR THE YEAR ENDED 31 JULY 2022

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 2022 is £13 (2021: £12).

3. STAFF COSTS

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

	No. of employees	Total	Total
	Full time Part time	2022	2021
Total staff	65 21	86	87

The average full time equivalent staff for the year was 78 (2021:77). The number of staff at year-end was 86 (2021:87) which was 77 (2021:78) 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 2022 Higher paid staff Number of employees whose emoluments for the year were in excess of £60,000: £60,001 - £70,000 £70,001 - £80,000 £80,001 - £90,000 £90,001 - £100,000 £100,001 - £110,000 £110,001 - £120,000	2022 2021 £’000 £’000 2,641 2,617 273 257 105 192
	3,019 3,066
	£’000 £’000 90 175 23 19 2022 2021 No. No. 2 2 2 1 1

Pension contributions of £23,353 (2021: £14,976) were paid into a defined contribution scheme for higher paid staff in the year.

The key management personnel of the Charity during the year comprised the Chief Executive Officer and the Senior Leadership Group. The total remuneration of the key management personnel in the year to 31 July 2022 was £746,396 (2021: £672,220).

The total redundancy and termination payments in the year to 31 July 2022 were nil (2021:nil).

Neither the Trustees nor persons connected with them received any remuneration or other benefits from the organisation or any connected organisation.

Two Trustees (2021: none) received reimbursed expenses totalling £1,363 during the year (2021: £0).

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4. PUBLIC SECTOR FUNDING

Public sector funding represented 13% of the income resources of the Charity (2021: 12%)

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 Support costs Total 2022 £’000 £’000 £’000 £’000 3,784 9 265 4,058 105 1 106 3,889 9 266 4,164 Activities undertaken directly Grant funding of activities Support costs Total 2021 £’000 £’000 £’000 £’000 3,759 263 4,022 61 1 62 3,820 - 264 4,084 2022 2021 £’000 £’000 audit 2023 other 7 1 -- 136103 offices 6872 other 3079 2022 2021 £’000 £’000 2023 71 4028 6752
	3,820
	audit other offices other

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ACCOUNTS – NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022- FOR THE YEAR ENDED 31 JULY 2022

7. PRIOR YEAR CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

The Consolidated Statement of Financial Activities on page 36 shows only the total for the prior year’s figures. Below are the totals for the year 2020/21, split into Unrestricted, Restricted and Endowment Funds.

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

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

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ACCOUNTS – NOTES TO THE FINANCIAL STATEMENTSACCOUNTS - FOR THE YEAR ENDED 31 JULY 2022

8. TANGIBLE FIXED ASSETS Group

Cost At 1 August 2021 Additions Disposals At 31 July 2022 Depreciation At 1 August 2021 Charge for the year Disposals At 31 July 2022 Net book value At 31 July 2022 At 31 July 2021 Tangible fixed assets are all used for direct charitable purposes.	Fixtures, fittings and equipment Equipment gifted in kind Total £’000 £’000 £’000 - - - - - - - - -
	- - -
	- - - - - - - -
	- - -
	- - -
	- - -

9. INTANGIBLE FIXED ASSETS

Group

9. INTANGIBLE FIXED ASSETS Group
Cost At 1 August 2021 Additions Transfer Disposals At 31 July 2022 Amortisation At 1 August 2021 Charge for the year Disposals At 31 July 2022 Net book value At 31 July 2022 At 31 July 2021	Intellectual property Computer software development Computer software development Total [Assets under construction] £’000 £’000 £’000 £’000 18 574 - 592 - 226 98 324 - - - - - - - -
	18 800 98 916
	12 144 - 156 2 134 - 136 - - - -
	~~14~~ ~~278~~ ~~-~~ ~~292~~
	4 522 98 624
	6 430 - 436

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ACCOUNTS – NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022- FOR THE YEAR ENDED 31 JULY 2022

10. INVESTMENTS

Shares in subsidiary undertaking:

Young Enterprise Trading Limited

	Shares
	£
Cost of investment
At 1 August 2021 and 31 July 2022	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	2022 2021 £’000 £’000 96 102 (10) (8)
	86 94
	(94) (137) 120 123 (34) (29)
	86 94

A management charge of £8,366 (2021: £7,129) was incurred from YE during the year. An amount of £8,366 (2021: £7,129) 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 2022 2021 2022 2021 £’000 £’000 £’000 £’000 224 251 198 225 - - 8 7 3 55 3 55 - 3 - 6 121 51 121 51
	348 360 330 344

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ACCOUNTS – NOTES TO THE FINANCIAL STATEMENTSACCOUNTS - FOR THE YEAR ENDED 31 JULY 2022

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors Sundry creditors Taxation and social security costs Accruals and deferred income Opening deferred income Released in the year Income deferred in the year	Group Group Charity Charity 2022 2021 2022 2021 £’000 £’000 £’000 £’000 265 237 265 237 39 32 39 32 82 64 79 64 669 803 646 784
	1,055 1,136 1,029 1,117
	674 121 657 101 (579) (88) (562) (68) 464 641 445 624
	559 674 540 657

13. PENSION SCHEME

The Company participates in a multi-employer pension scheme which provides benefits to some 638 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, sets 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 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)

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 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 30 September 2025: (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 2022- FOR THE YEAR ENDED 31 JULY 2022

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	2022 2021 £ £ 11,268 49,701 2022 2021 £ £ 49,701 62,760 253 333 (10,682) (13,418) (347) 26 (27,657) -
	11,268 49,701
	2022 2021 £ £ 253 675 (347) 557 (27,657) - * * **

*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	2022	2021	2020
	% per annum	% per annum	% per annum
Rate of discount	3.15	0.57	0.60

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 – NOTES TO THE FINANCIAL STATEMENTSACCOUNTS - FOR THE YEAR ENDED 31 JULY 2022

DEFICIT CONTRIBUTIONS SCHEDULE	2022	2021	2020
	£	£	£
Year 1	4,678	13,820	13,418
Year 2	4,678	14,235	13,820
Year 3	2,339	14,662	14,235
Year 4	-	7,476	14,662
Year 5	-	-	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 2021 Incoming Resources Resources expended At 31 July 2022	2022 2021 £’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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ACCOUNTS – NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022- FOR THE YEAR ENDED 31 JULY 2022

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 2021 Incoming Resources Resources Expended Balance at 31 July 2022 £'000 £'000 £'000 £'000 95 837 930 2 - 412 412 - - 85 70 15 - 56 56 - 645 1,119 1,480 284 50 236 100 186 90 1,160 1,088 162
	880 3,905 4,136 649

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 Other	Balance at 1 August 2021 Incoming Resources Resources Expended Balance at 31 July 2022 £'000 £'000 £'000 £'000 - 70 70 -
	- 70 70 -
	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 1,420 645 98 3 51 50 - 666 576 90
	900 3,746 3,767 880

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

Jack Petchey Foundation	Balance at 1 August 2020 Incoming Resources Resources Expended Balance at 31 July 2021 £'000 £'000 £'000 £'000 40 - 40 -
	40 - 40 -

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ACCOUNTS – NOTES TO THE FINANCIAL STATEMENTSACCOUNTS - FOR THE YEAR ENDED 31 JULY 2022

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 2021 Incoming resources Resources expended Transfer between funds At 31 July 2022	Group Group Group Designated Unrestricted Total £’000 £’000 £’000 19 1,424 1,443 10 1,242 1,252 (4) (586) (590) -
	25 2,080 2,105

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 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

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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 and Buildings Other Land and Buildings Other £’000 £’000 £’000 £’000 53 3 68 33 73 2 17 1 2022 2021
	126 5 85 34

18. CAPITAL COMMITMENTS

The Charity had capital commitments for web development costs of £101k (2021: £110k).

19. NET CASH INFLOW FROM OPERATING ACTIVITIES

Net incoming resources Amortisation charges Decrease/(increase) in stocks Decrease/(increase) in debtors (Decrease)/increase in creditors Interest received Net cash inflow from operating activities	2022 2021 £’000 £’000 431 1,154 136 103 - 10 12 (159) (121) 730 - -
	458 1,838

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	2022 2021 £’000 £’000 135 1,521 2,709 1,188
	2,844 2,709

21. TAXATION

YE is registered as a charity for taxation purposes and has a group registration for VAT purposes. YE can 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.

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22. RELATED PARTY TRANSACTIONS

Contributions to the value of £14,320 (2021: £2,404) 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 2022

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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.young-enterprise.org.uk

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