2021-03-31-accounts

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

Our vision is of transforming communities so that all young people truly belong, contribute and thrive

Worcestershire YMCA Limited Company No: 01944516 Charity No: 516872 RSL No: LH3687

WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

CONTENTS
	Page
Report of the Board	1
Report of the Auditor	16
Consolidated Statement of Comprehensive Income	20
Company Statement of Comprehensive Income	21
Consolidated Statement of Changes in Reserves	22
Company Statement of Changes in Reserves	24
Consolidated Statement of Financial Activities	26
Consolidated Statement of Financial Position	27
Consolidated Statement of Cash Flows	28
Notes to the Financial Statements	29

WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

The Board is pleased to present its report (incorporating the strategic report) and audited financial statements for the year ended 31 March 2021.

Reference and administration information

Charity Name Worcestershire YMCA Limited Charity Registration Number 516872 Company Registration Number 01944516 Registered Social Landlord Number LH3687

Key Management Personnel

Chief Executive

Chief Executive Dr Annette Daly (from 14 December 2020) Duncan Berry (until 30 September 2020) Company Secretary Wendy Poole Head of Children and Families and Youth Lisa Carroll Head of Adults and Communities Alan Moorhouse Head of Human Resources Alison Dunsmore Head of Finance Jo Watkin Development Manager Charlotte Steventon

Board

The Board is composed of the following individuals:

Phillip Simpson (Chair) Simon Hill Jacintha Hodgson Resigned 21 December 2020 Dr Juliet Horne Mike Higley Diana Drew

Members of the Board are directors of the association for the purposes of company law and trustees of the charity for the purposes of charity law.

The president of the association is the Right Reverend the Bishop of Worcester, John Inge.

Registered Office Auditors Bankers Solicitors Gordon Anstis House Cooper Parry Unity Trust Bank plc mfg Solicitors LLP Loxley Close Group Limited Nine Brindleyplace Adam House Redditch Park View Birmingham Birmingham Road Worcestershire One Central B1 2HB Kidderminster B98 9JS Boulevard Worcestershire Blythe Valley DY10 2SH Business Park Solihull B90 8BG

Page 1

WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

Constitution

The Association is a charitable company registered under section 2 of the Housing Act 1996 (number LH3687) and continues to be a registered charity. The Association is established as a registered social landlord with no share capital. The Association is a company limited by guarantee with members required to contribute up to a maximum of £1 each, should there be a deficiency on winding up. The Association is governed by its Articles of Association, which were reviewed by the Board in 2013.

Organisational structure

The Association is governed by its board of volunteer trustee directors, responsible for overseeing strategy and policy, approving annual budgets and accounts, and who work in conjunction with the senior executive staff who recommend strategy, policy and exercise operational management. They hold five meetings per annum to consider business and progress against agreed plans plus hold strategic discussions to consider future work and direction. On appointment, trustees receive induction including Charities Commission information. Attendance at meetings, interests and skills is monitored and reviewed annually. The YMCA movement offers support, development and benchmarking information. Codes of Governance and Conduct have been adopted.

The Association is part of the worldwide YMCA movement and is affiliated to the National Council of YMCAs in England and through them to the World Council of YMCAs. It receives no funds from either the National Council or the World Council, but pays an affiliation fee to the National Council of YMCAs in England.

The Association is the sole member of Worcester YMCA a charitable company limited by guarantee. As sole member the Association is required to contribute up to a maximum of £1, should there be a deficiency on winding up Worcester YMCA. Worcester YMCA is not regulated by the The Regulator of Social Housing (RSH).

The Board oversees and endorses or challenges the short and medium term strategies recommended by the senior executive staff. The Board aims to ensure the long term interests of the Association are not adversely affected by decisions taken in the medium term and ensures the ethos and values of the Association are maintained.

The day-to-day control of the Association’s operations is exercised by the senior management team made up of the Chief Executive, Head of Children and Families and Youth, Head of Adult and Communities, Head of Finance, Head of HR and Development Manager. The Chief Executive attends Board meetings and members of the senior management team are invited where appropriate to encourage wider contact between directors and staff. In setting the salaries of the senior management team the Board considers benchmark information from other appropriate organisations in the YMCA movement.

The Association is organised so that those for whom activities are provided and key stakeholders are involved in the design, monitoring and evaluation of that provision; clear access to senior management and the volunteer Board is integral to the structure and is part of our engagement process.

Recruitment and appointment to the Board

The Board consists of up to fifteen elected members who are appointed for a three-year term, but who may stand for re-election at the end thereof. Members who are co-opted during the year are appointed up until the next Annual General Meeting when they are eligible for election. Board members are elected from the Members of the Association at the Annual General Meeting. Membership of Worcestershire YMCA Limited is open to men and women.

All Board members acknowledge their Christian faith, no other person or body external to the Association is entitled to appoint board members.

Board members give their time voluntarily and receive no benefits from the charity in respect of this commitment. Any expenses reclaimed from the charity or payments made to them are set out in the notes to the accounts.

Page 2

WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

It is the aim of the board members to have the Board made up of individuals from the community it serves and simultaneously achieve a rich diversity of perspectives and experience, competent to oversee the operations of the Association. The Board seeks to recruit new members accordingly. Potential board members are made aware of the aims and purposes of the YMCA Movement and must indicate their desire to join the Movement and accept the responsibilities involved. The perspectives, experience and skills of individual board members are considered to ensure a balance across the Board. Board members are initially co-opted to the Board until the following Annual General Meeting.

Board member induction and training

As part of their induction programme, new Board members are provided with a welcome pack including copies of literature produced by the Charity Commission and the YMCA Movement: YMCA Code of Governance. Background information relating to the Association including copies of the articles of association, latest financial information, copies of minutes and policies are included in the welcome pack. The Board schedule five meetings per annum for ordinary business plus meetings to consider the work of the association and future direction; it also participates in periodic “away days”.

As part of the YMCA Movement, Board members have access to its board development programme and training, support and benchmarking information. The Board undertakes periodic background and skills audits and as a result identifies certain characteristics it will require of future members. Attendance at Board meetings is monitored.

The Association works in partnership with other organisations, funders and commissioners that are compatible with its ethos and values

Code of Governance

The Association’s Board has adopted the National YMCA Code of Governance based on the National Housing Federation Code of Governance. During the year the Board has made reference to the Governance and Financial Viability Standard.

Statement of Board responsibilities

The Board is responsible for preparing the Report of the Board, including the strategic report, and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the RSL SORP and the Charities SORP 2019 (FRS 102);

• make judgements and estimates that are reasonable and prudent;

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

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Association will continue in business.

The Board is responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Association and enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008, and the Accounting Direction for private registered providers of social housing in England 2019. They are also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Board are responsible for the maintenance and integrity of the corporate and financial information included on the Association’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

Provision of information to the auditor

We, the board members of the Association who held office at the date of approval of these financial statements as set out above each confirm, so far as we are aware, that:

• there is no relevant audit information of which the Association’s auditor is unaware; and

• we have taken all the steps that we ought to have taken as board members to make ourselves aware of any relevant audit information and to establish that the Association’s auditor is aware of that information.

Corporate Governance – internal financial control

The Board acknowledges its ultimate responsibility for ensuring that the Association has in place a system of controls that is appropriate to the various business environments in which it operates. These controls are designed to give reasonable assurance with respect to the:

• reliability of financial information used within the Association or for publication;

• maintenance of proper accounting records; and

• safeguarding of assets against unauthorised use or disposal.

It is the Board’s responsibility to establish and maintain systems of internal financial control. Such systems can only provide reasonable and not absolute assurance against financial misstatement or loss. Key elements include ensuring that:

• formal policies and procedures are in place, including the documentation of key systems and rules relating to the delegation of authorities, which allow the monitoring of controls and restrict the unauthorised use of the Association’s assets;

• experienced and suitably qualified staff take responsibility for important business functions; annual appraisal procedures have been established to maintain standards of performance;

• forecasts and budgets are prepared which allow the Board and management to monitor the key business risks and financial objectives, and progress towards financial plans set for the year and the medium term; regular management accounts are prepared promptly, providing relevant, reliable and up to date financial and other information and significant variances from budgets are investigated as appropriate; and

• all significant new initiatives, major commitments and investment projects are subject to formal authorisation procedures, through the Board members and others.

The Board receives and reviews regular reports from management, internal audit and from the external auditor to provide reasonable assurance that control procedures are in place and are being followed.

Formal procedures have been established for instituting the appropriate action to correct weaknesses identified from the above reports.

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WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

Strategic Report

Risk management

The Association maintains a risk register covering governance, operational, financial, external and compliance risks. The Board receives and reviews regular reports from management including major risks facing the Association and action taken to reduce or mitigate the effects of those risks.

The board categorises risk into five main headings: Governance, Operational, Financial, Environmental or external and Compliance. The key risk in each heading is identified below:

Risk	Mitigation and further action to be taken
Governance - loss of key staff	Trustees continue to act as champions for each area of policy, policies are reviewed regularly, skills and role descriptions are identified, a training matrix identifies skills gaps, training is budgeted and undertaken, the strategic plan is approved by the Board, appraisals are conducted regularly.
Operational - project / service development	The organisation has adopted models to demonstrate how and why new and existing projects are in line with charitable objects and to better define and communicate our activities.To continue to enhance development of new plans in line with objects.Further action:review operational strategy and accelerate implementation. Develop future plans for childcare provision in Worcestershire.
Financial - dependency on limited income sources	Strategic plans aim to change the mix of income and the provision of services that are less dependent on Government policy. Specific opportunities identified. Acquisition of a trading subsidiary has diversified income. Further action: Review strategic plan in line with income dependancies. Realise opportunities identified and monitor success of diversification plans and organisational capability to ensure they match future requirements
Environmental or external factors - changing government policy	Networking and lobbying to minimize adverse policy changes and their effects. Regular market scanning. Members of YMCA policy groups and relevant local groups. Further action: Engage a wider audience particularly potential service users in the provision of data and case studies for influencing policy and ensure other initiatives in diversification are coordinated.Conduct research with target audiences.
Compliance - diversification of activities	Systems to ensure compliance with legislation, regulation and reporting are robust. Further action: identify and monitor the effect on existing compliance of diversifying activity and consider any new compliance such diversification will introduce.

COVID19

Throughout the year, the Covid19 pandemic created practical difficulties in delivering some of our services.

The organisation continued to work remotely and invested in the IT infrastructure to ensure that homeworking could be facilitated.

The most impacted areas were the community centre, youth work and early years and childcare; however, we have been able to utilise the Coronavirus Job Retention Scheme and Business Interruption grants to secure over £200,000 in grant income.

The organisation developed a Covid Taskforce and Covid Coordinator to monitor the changing landscape and put in place coherent risk assessments. This has enabled the organisation to continue to deliver its services throughout the pandemic and protect its income streams.

Due to the level of reserves and cash balances held and the security of some of our income streams, we are well placed to continue operating. See accounting policy titled Going Concern for further details.

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WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

Financial Review

Reserves

The Board considered there are sufficient assets to meet obligations as they arise. Net current assets are £1,740,232 (2020: £1,399,504). The overall funds of the Group have increased as a consequence of a surplus arising from an increase in income and reduction in operational costs.

The Association does not trade for profit, but plans for income to exceed expenditure each year, ensuring a margin of safety to manage the unexpected, its Articles prevent the distribution of reserves, which are instead applied to further the aims and objectives including the provision of social housing.

The Association has an asset management plan anticipating major maintenance to buildings and likely costs over the next 25 years. Long term maintenance and improvements needed in the housing stock under that plan are reviewed by the Board. Cyclical maintenance and improvements to maintain the standards of our own accommodation stock of 193 properties was carried out in accordance with our asset management plan.

The Board has reviewed its reserves policy and the designation of reserves. The policy is to aim to maintain funds in reserves at least sufficient to fund 2 months total expenditure (£697,591) to cover the eventuality of a material decline in incoming resources and to hold at least half of that amount in cash at bank. It will regularly review this policy having regard to the changing financial, regulatory and competitive environment in which the charity operates.

Free reserves are traditionally calculated as Net Assets (£4,335,439) less Restricted funds (£nil), less fixed assets (£4,372,789), which amount to a deficit of (£37,350). However, the nature of the Association as a Registered Provider means adjustment should be made for long term liabilities which are secured against the housing properties in fixed assets (£1,335,187). By that calculation, the adjusted free reserves are £1,297,837.

Worcestershire YMCA Limited and Worcester YMCA participated in a contributory pension plan providing defined benefits based on final pensionable pay for employees of YMCAs in England, Scotland and Wales. The assets of the YMCA Pension Plan are held separately from those of Worcestershire YMCA Limited and Worcester YMCA.

The valuation prepared as at 1 May 2020 showed that the YMCA Pension Plan had a deficit of £36 million. Worcestershire YMCA has been advised that it will need to make monthly contributions of £3,160.65 from 1 May 2021. This amount is based on the current actuarial assumptions (as outlined above) and may vary in the future as a result of actual performance of the Pension Plan. The current recovery period is 8 years commencing 1st May 2021.

Principal sources of income include housing income, income derived from the operation of early years nurseries, NCS and work undertaken through the HMP Hewell Rainbow Project

The Trustees also note that a high proportion of staff costs are directly attributable to specific contracts and are therefore variable in nature.

Employment of disabled persons

The Association operates an equal opportunities employment policy and is committed to be Disability Confident. Employers will be positive about their abilities. Employers who use the symbol make five commitments to action, relating to recruitment, communication of vacancies, offering interviews, anticipating reasonable adjustments and supporting people who become disabled.

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WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

Objects and activities

As a Christian charity committed to helping people, especially the young, particularly at times of need, without discrimination, our faith calls us to stand alongside people on their personal journey, and help them develop in body, mind and spirit.

Accordingly, demonstrating our Christian faith and sharing it through social action we are active in working towards our vision of transforming communities so that all young people truly belong, contribute and thrive. We aim to be recognised as the leading provider of activities which inspire transformation.

The Association’s objects and principal activities are to:

• relieve or assist in the relief of persons of all ages who are in conditions of need, hardship or distress by reason of their social, physical or economic circumstances;

• to provide or assist in the provision of education for persons of all ages with the object of developing their physical, mental or spiritual capacities;

• provide or assist in the provision in the interests of social welfare of facilities for recreation and other leisure time occupation for men and women with the object of improving their conditions of life;

• lead young people to the Lord Jesus Christ and to fullness of life in Him;

• provide residential accommodation for persons of all ages who are in need, hardship or distress by reason of their social physical or economic circumstances; and

• unite those who, regarding Jesus Christ as their God and Saviour according to the Holy Scriptures, desire to be His disciples in their faith and in their life, and to associate their efforts for the extension of His Kingdom.

Our aims mean we work with others to deliver activities through which all young people can be offered the opportunity to develop in body, mind and spirit so they have hope of experiencing life in all its fullness.

Strategy

The key elements of our medium to long-term strategy were:

Build on the strength of our Early Years and families presence across the County; experience with children’s centres; existing provision and partnership working. We will work in partnership with others to improve health of mothers, their babies and families, make them better informed and benefit from their knowledge to improve their lives. We envisage opportunities for job creation, volunteering and delivery of some services that will no longer be provided by the state and to help the organisation move its funding mix from a reliance on the public sector to self-generated income.

Provide opportunities that prepare young people, including the marginalised, for adult life and the world of work through positive activities, supported accommodation, alternative curriculum, employability skills, health and wellbeing, volunteering, community and family engagement, and targeted mentoring support. In addition, we will work with churches and other Christian organisations to deliver high quality youth work and opportunities for religious education. With the global YMCA movement we will provide wider opportunities for young people, to improve outcomes.

The strategic plan for the medium and short term ensures that the objects of the Association are pursued and thereby its purpose fulfilled, within the framework established by the Board. The Board retain the right of veto, offer an additional perspective as non-executives and provide a check and balance for the plan before its approval by them. The strategic framework and these plans together form the business plan.

As indicated last year, a broader spread of income generation is a priority for long term sustainability whilst remaining responsive to commissioning opportunities that arise from social policy as the public sector remains a large market. In addition, the plan is customer focused taking account of current capacity and capability rather than putting our capabilities first. The major change for the organisation, clarifying the markets in which we operate and our delivery has begun, coinciding with cuts to public spending. This continues to require flexibility in our response.

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WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

We measure the success of the strategy:

Annually, prior to the commencement of the financial year, when plans are produced as part of our budgetary cycle. These are submitted to the Board for approval by the beginning of the year. During the year, the senior management meet regularly to monitor performance in both financial and non-financial terms. We are organised into three areas of work.

Progress is reported and variances explained to Board throughout the year. An annual review is conducted by the board and senior management and an Annual General Meeting is also held and a report presented by the board and senior management to members.

During the year there are periodic reviews conducted with partner organisations including commissioning bodies.

Review of activities

Working from our own accommodation units, community centres, schools and prison, we provide preschool nurseries, play workers in prison, schools work, youth work including the support of young people towards independent living, ‘move on’ accommodation and support for vulnerable adults.

The three most significant charitable activities contributing to the achievement of our objectives in the year were:

• Residential Accommodation & Facilities Management

• Children and Youth services

• Family Services

During the year, income from the Association’s own activities increased to £3,126,113 (2020: £2,902,254) and the effect of the addition of Worcester YMCA generated a consolidated income of £4,339,238 (2020: £4,182,102) for the year. The additional income from Worcester YMCA was from non-regulated housing and housing related support and income from two trading subsidiaries operating in the nursery sector.

The main trends underlying performance and development and affecting the future are continued public sector funding pressure, rent reduction, uncertainty over any future supported housing model and the need to ensure a more commercial approach to some areas of delivery.

Further analysis of the income and expenditure on operations can be found in notes 3 to 9 to the financial statements.

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WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

Strategy: Build on the strength of our Early Years and families presence across the County, existing work with older children and partnership working. We will work in partnership with others to improve health of parents and their babies and work with older children and their families to make them better informed and benefit from their knowledge to improve their lives. We envisage opportunities for job creation, volunteering and delivery of some services that will no longer be provided by the state and to help the organisation move its funding mix from a reliance on the public sector to self-generated income.

Nurseries

We have five nursery settings within Worcestershire; these are situated in Redditch, Kidderminster and Malvern. All five nursery settings maintain an OFSTED rating of 'Good'. The acquisition of First Class Nursery (January 2020) has enabled us to grow our childcare offer within Kidderminster.

Little Treasures has continued to enhance our provision across the group and contributed to the diversification of income sources. Throughout the pandemic, we have adapted the delivery of childcare to create childcare bubbles; this enabled us to continue delivery with minimal interruption to service. For part of the year, during the initial lockdown, childcare was only provided to key worker children; this saw an increase in home learning for children during this time. And ensuring the children's development was monitored whilst they were not in the settings.

A curriculum statement of intent provides a framework for setting out the aims of a programme of education, including the knowledge and skills gained at each stage, developing a framework over time into a structure and narrative. In line with the organisation's objectives, our statement enables children to live life to its fullest by offering stimulating learning experiences with Christian values at its heart. Our nurseries develops children's spiritual, social, moral and cultural understanding. They provide a holistic curriculum that fosters lifelong learning. The nurseries have created learning environments that build upon children, prior learning experiences and are tailormade for the families we support. From September 2021, a new curriculum will be published and adopted by each nursery setting in line with Government guidance for the education sector.

Out-of-school Clubs

The YPLAY childcare provision based in Redditch and Malvern offers children aged 3-12 an out-of-school and holiday club. This has seen the most significant interruption throughout the pandemic, and the before and after school club has not returned due to the mix of school and groups. However, the holiday club was able to continue from the Summer Term with limited numbers.

Throughout the school holidays, YMCA played a crucial role in the County's response to holiday hunger by securing £80,000 funding to support local organisations. This enabled YMCA to continue its school holiday offering by providing hampers reaching over 4,000 families in Worcestershire. This project was awarded a High Sheriff of Worcestershire Award for its contribution to the community. The hampers combined food parcels and activities for local families. This enabled us to ensure we continued to engage with the children and families that previously attended the out of school clubs.

HMP Hewell Rainbow Project

The Hewell Rainbow project, which the National Lottery funds, has been successful in its new bid and has secured funding until 2023. The project offers a range of parenting courses designed to improve the parentchild relationship and support children with prison parents. The scheme delayed its start date until May 2020 due to the pandemic where visits were not permitted in prison. This was replaced with 'purple virtual visits' and support for families virtually. This year has provided many challenges, and the team have had to adapt and create new ways of supporting the families with a parent in prison. The team has also increased social media presence to increase awareness of parents' challenges in prison.

Youth Work

YMCA Worcestershire continues to deliver the positive activities contract for youth clubs within Bromsgrove. The existing contract has been extended until September 2021. From March 2020, the youth clubs have been delivered virtually. This has provided the opportunity to engage with young people each week throughout the national lockdowns. The detached youth work offer has increased throughout the year, giving outdoor sessions in Redditch and Rubery. It has been challenging to restart sessions in all areas due to the restrictions and the clubs taking place in external venues. The sports camp delivery has been paused due to the social distancing guidelines in place for the National Youth Agency. The young people who attended the sports clubs have been encouraged to attend the YPLAY programme as an alternative.

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WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

Within the year, the Bromsgrove Youth and Community Hub has become an independent Charitable Incorporated Organisation (CIO) and will partner with YMCA to deliver youth work in Bromsgrove. Current partnership works include virtual youth groups and 1-1 mentoring that has been delivered from SeptemberDecember 2020. Key themes within the 1-1 sessions have been an increase in mental health concerns and loneliness. Each mentor provided the young people with an opportunity to meet and talk with a youth worker in a safe environment. In addition to the face to face delivery YMCA Worcestershire provided mentoring support to Tenbury High School as part of the Youth Scape project. This provided support to young people struggling to transition back into school after the long break. Adapting our youth services enabled us to remain present for young people providing more intentional support throughout the past year.

Mental Health Counselling

Mental Health Counselling has continued during the year with funding from YMCA Changing Futures and Children in Need. The counselling service has delivered 225 sessions to 51 young people since the service recommenced in September 2020.

National Citizen Service (NCS)

The National Citizen Service (NCS) programme has seen significant disruption during the year due to the scale and timing of the programme and the increased risk of taking 500 young people on a residential programme. Instead, the NCS Trust launched a virtual programme, and YMCA delivered a two-week programme in July and August for young people across Worcestershire aged 15 to 19 to take part in. 'The 'Keep Doing Good' programme is intended to help local communities and support them as we move forward out of the current pandemic.

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WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

Strategy: Provide opportunities that prepare young adults, including the marginalised, for adult life and the world of work through positive activities, supported accommodation, employability skills, health and wellbeing, volunteering, community and family engagement, and targeted mentoring support. In addition, we will work with churches and other Christian organisations to deliver high quality youth work and opportunities for religious education. With the global YMCA movement we will provide wider opportunities for young people, to improve outcomes.

Building Better Opportunities (BBO )

BBO is funded by the European Social Fund and The National Lottery Community Fund. From 2014 – 2020, £11m of European Social Funding (ESF) became available to invest in ''Social and Economic Inclusion, tackling the root causes of poverty, promoting social inclusion and driving local jobs and growth. According to local priorities, the Worcestershire programmes developed to invest this money have been shaped by the Worcestershire Local Enterprise Partnership (LEP).

BBO has five Job Coaches increasing by one in the previous year. Focusing on Redditch and Bromsgrove, the support is designed to move people closer to employment. The project has remained active in the current year by supporting people through online meetings and phone calls. A decrease in referrals occurred due to the temporary closure of the Job Centre and partner organisations. This did create some challenges for the coaches to achieve targets throughout the year. However, the coaches adapted and changed their recruitment methods to further support existing YMCA clients within the housing department further.

Community Centres

The community centres in Redditch, Malvern and Upton were instructed to close throughout the national lockdowns. With the increased rates of Covid19 transmission, the centres had to close for eight months of the year. The organisation has received Business Interruption grants for the community centres and utilised the Coronavirus Job Retention Scheme for the community centre assistants. The additional funding has supported the centres' sustainability, ensuring that they did not suffer financially throughout the pandemic. Nevertheless, the community centres continue to provide additional internal space to ensure we could operate safely throughout the year.

Housing and Support

The housing and support service continued to be an integral part of the work we deliver throughout the county; the accommodation currently provides 241 units and provides 85 supported accommodation units. During the year, we have been successful in the re-commissioning by Worcestershire County Council for the housing and support contract, which was renewed in February 2021. This is a significant contract over the next three years valued at £480,000.

It has been a critical priority to develop strategic partners to support young people in our accommodation; this has included working with:

• St Basils, a Housing Charity based in Birmingham, delivered an open network accredited course managing your tenancy. St Basils trained support staff to provide the course to residents. This certificate is recognised by local housing providers, such as Platform Housing Group, and provides strong evidence that those participants are ready for independent living.

• Redditch Churches have worked closely within the housing scheme to help build relationships and meet the spiritual needs of the young people at Redditch.

• Moat House Care Farm provided volunteering opportunities for young people, which has resulted in improved emotional awareness, assertiveness, social skills, confidence, trust in self and others, empathy, impulse control, problem-solving skills.

Further partnerships have been developed throughout the year, including engaging with an onsite drug and alcohol worker, employability and life skills, onsite counselling and working closely with the local policing and neighbourhood team. These partnerships have played a key role in developing transformational communities for young people.

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WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

Strategy: Sustain service. Continuous improvement in quality and value for money; increase unrestricted funding and social enterprise; Diversify and maintain a balance between housing and other provision; Increase appropriate use of volunteers; Increase the number of partners, including faith communities and the wider YMCA movement, with whom we unite; Diversify across each district; Increase participation.

International Partnerships

Throughout the year, we have developed international partnerships with YMCA France in providing opportunities for young people to live and volunteer within YMCA Worcestershire. Over the past 12 months, four volunteers joined our housing, nursery and youth teams to support the delivery of our services. The programme has been successful in providing opportunities for young people. Due to the project's success next year, we will look to expand the international volunteering opportunities.

Communication

The online and digital presence has been a critical part of our communication strategy throughout the year due to limitations in face-to-face delivery. The digital presence enabled us to communicate quickly in the rapidly evolving situation. The Covid Community Page promoted the organisation’s risk assessment and demonstrated the measures that have been put in place to operate safely, giving confidence to the communities.

Black Lives Matter Response

YMCA Worcestershire has been part of the regional response to the Black Lives Matter movement (BLM). The group represents the region on its commitment to have a clear position on BLM by carrying out a diversity audit and making appropriate recommendations, assessing and reporting on equality data across the region annually, supporting YMCAs to engage with Black, Asian and Minority Ethnics (BAME) encouraging young people and staff to share their stories and experiences.

Christian Spiritual Development

The Christian Spiritual Development Coordinator left the organisation in September 2020, and plans are in place to recruit for this position next year. It is our aim to develop an internal chaplaincy group that will support the organisation in developing its Christian mission. In addition, we have hosted a daily online prayer meeting for YMCAs globally throughout the year, which has been well-received globally.

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WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

Value for Money

On 1 April 2018, the Regulator of Social Housing (RSH) has revised the regulatory approach to VFM with the objectives of:

• Continuing to drive improvements in VFM within the social housing sector.

• Ensuring a strategic approach to delivering VFM is embedded within the business.

• Encouraging investing in existing homes and new housing supply.

• Enhancing the consistency, comparability and transparency of VFM reporting.

Regulatory Metrics

RegulatoryMetrics
RSH Metric	2021	2020
1. Reinvestment %	-	-
2. New supply delivered %	-	-
3. Gearing%	-10.8%	-4.1%
4. EBITDA MRI interest cover%	314.2%	14.3%
5. Headline social housing cost per unit	£2,431	£3,254
6A. Operating margin (social housing lettings only)	46.0%	36.9%
6B. Operating Margin (overall)	3.1%	-2.1%
7. Return on Capital Employed	3.1%	-1.1%

Commentary

As a YMCA, we are a small specialist housing association with a diverse range of activities and the consolidated results include both regulated and non-regulated housing activities. As such, comparisons with other housing associations and benchmarking are difficult. We will aim in the third year of this regulation to develop benchmarking with similar providers.

In respect of our indicators our comments are as follows:

1. Reinvestment % - During the year there have been no additions to social housing fixed assets. We have continued with a programme of ongoing repair and upkeep which has been expensed during the year.

2. New supply delivered % - During the year there have been no additions to social housing delivery.

3. Gearing % - This represents our net debt to lenders as percentage of the total value of our housing properties. The current level of gearing is low and we have capacity within that to borrow more and plan to utilise some of that capacity in future development plans.

4. EBITDA MRI Interest Cover % - This represents the level of surplus/ deficit compared to the interest payable. This ratio is higher this year specifically arising from the lower voids experienced in the year due, in part, to covid enforced higher occupancy levels.

5. Headline social cost per unit - This represents social housing costs divided by total units owned and managed. The costs reflect the more intensive nature of some of our housing services. Our result would be above the average for general housing providers reflecting the more intensive nature of support services offered. The costs are lower in the year under review as there were no major movements in housing stock.

6. 6A Operating margin (social housing lettings only) % - This represents operating surplus from social housing lettings divided by turnover from social housing lettings.

Page 13

WORCESTERSHIRE YMCA LIMITED

REPORT OF THE BOARD

6B Operating margin (overall) % - The increase this year reflects the above commentary regarding the broad changes in income and expenditure. This is as a result of the net overall surplus in the year

7. Return on capital employed % - This compares the overall operating surplus/ deficit to total assets less current liabilities. The level of return is higher this year reflecting the increase in operating surplus commented on above.

Public Benefit

The board has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charitable company’s aims and objectives and in planning future activities. In particular, the trustees have considered how planned activities will contribute to the aims and objectives set.

Communities, particularly young people within the County of Worcestershire benefit from our work.

We work with parents of children and young people, and the children and young people themselves. Our activities include affordable flexible childcare; work with school age children at school and outside school throughout the year; work with young people and adults in formal and informal education, leisure activities including health and well-being and in support towards independent living. We engage in preventative work and work within the prison system to help offenders and their families. We are a registered provider of social housing offering affordable residential accommodation and we manage a number of community buildings across the County.

We recognise the importance of responding to the needs of the community and allowing them to influence the charitable company's developments.

We consult with participants in our activities, potential participants and partner organisations. Consultation takes place through a variety of routes including formal surveys, one to one sessions and informal meetings. We aim to continuously improve our services, responding to comments and complaints made by people who participate in our activities. Informal comments are dealt with by the management of the particular delivery arm of the Association. Formal issues may be raised in accordance with our service delivery policies and procedures and will be reported to the Board. Services are regularly reviewed against current developments in recommended practice and guidelines issued by regulatory and similar bodies.

Plans for future periods

The overall performance last year affects our medium to long term strategy:

Our assessment of performance in the year is used to inform our strategy. We have reviewed our strategies and focus delivery on children and their families and young adults. Our objects remain relevant and appropriate. We have engaged with staff more widely to assist in the short to medium term plans for the organisation in the face of reduced public spending. The organisation will further strengthen its offer to ensure it is comprehensive and cohesive and can be made to more potential beneficiaries throughout the County. The disposal of the property in Worcester lends itself to a new development in Worcester and the diversification of activities.

Page 14

WORCESTERSHIRE YMCA LIMITED REPORT OF THE BOARO Our maln oblecuvas lor next year.. Ewly Years and Chlldion.. S61 up an Early Year8 Centr8 ol Excellence pA8sSng Ihg learning to other siles Includinu extended hours wrap around care, so more children bgn61it from bettor outcorngs at the Early Years Foundatlon Stage. Early Years and Children.- Develop plans for the axpansion of early years provision. Ywng Adulls.. Idttnlify addllional development opportunities. Young Adults-. Incrga8e engagernenl with a WKler spgclwm ol young people and d6v81op enterprise initiatives so rnore young pèoplè ara benefiting from broader opportuni1185 towards raising aspiralv)ns and efflployment eio oard Gordon Anstis House Loxley Close Rèddiich Worcestershlre 898 9JS on Chair 27 S8Pt8mber 2021 T81.. 01527 61643 Page15

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

WORCESTERSHIRE YMCA LIMITED

Opinion

We have audited the financial statements of Worcestershire YMCA Limited (the “parent Association”) and its subsidiaries (“the group”) for the year ended 31 March 2021 which comprise the Consolidated Statement of Total Comprehensive Income, the company Statement of Total Comprehensive Income, the Consolidated Statement of Changes in Reserves, the Company Statement of Changes in Reserves, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and parent Association’s affairs as at 31 March 2021, and of the group’s incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019.

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 Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Report of the Board, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Report of the Board. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to 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.

Page 16

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

WORCESTERSHIRE YMCA LIMITED

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 Report of the Board (incorporating the strategic report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Report of the Board (incorporating the strategic report) has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent Association and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Board (incorporating the strategic report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept by the parent Association or returns adequate for our audit have not been received from branches not visited by us; or

• the parent Association’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.

In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion:

• a satisfactory system of control over transactions has not been maintained.

Responsibilities of the Trustees

As explained more fully in the Statement of Board responsibilities set out on page 3, the trustees (who are also the directors of the Association 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 Association’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 Association 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 these Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Page 17

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

WORCESTERSHIRE YMCA LIMITED

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

Our assessment focussed on key laws and regulations the group and parent Association has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Housing and Regeneration Act 2008, Companies Act 2006, Charities Act 2011, the Childcare Act 2006, taxation legislation, data protection and employment legislation.

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

• obtaining an understanding of the legal and regulatory framework applicable to the group and parent Association and how the group and parent Association are complying with that framework, including agreement of financial statement disclosures to underlying documentation and other evidence;

• obtaining an understanding of the group and parent Association control environment and how the group and parent Association have applied relevant control procedures, through discussions with the Board and other management and by performing walkthrough testing over key areas;

• obtaining an understanding of the group and parent Association risk assessment process, including the risk of fraud;

• reviewing meeting minutes of those charged with governance throughout the year; and

• performing audit testing to address the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Page 18

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

WORCESTERSHIRE YMCA LIMITED

Use of our report

This report is made solely to the Association’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the Association’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Association and the Association’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Atkins FCA Senior Statutory Auditor

for and on behalf of

Cooper Parry Group Limited

Statutory Auditors

One Central Boulevard Blythe Valley Business Park Solihull West Midlands B90 8BG

Date: 27 September 2021

Page 19

WORCESTERSHIRE YMCA LIMITED CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2021 rotsl 2W21 Totsl 2020 Turnovèr Op@raling expenditura Gains on dlspo$al ol housing properties 4,339,207 14,217,930) 97,084 4.182,094 14,260,109) Operatlny Surplus l {deflelti Interest receivable and other income Interest and flnancing costs 218,361 31 184,6991 178,0151 184,1981 Total comprghonslve Income lor th? year 153,693 1162.2051 Th8 conso nan¢ial statements were approved by Iho Board on 27 S6ptambor 2021. P Slrnpson Trustee J Home Trust9è Thg consolldat8d results relate wholly to continuing opgrab'ons. The accornpanylng not98 form part ol thes9 I￿ancIal slatèmants Po99 20

WORCESTERSHIRE YMCA LIMITED COMPANY STATEMENT OF TOTAL COMPREHENSIVE INCOME FOR THE YEAR ENOED 31 MARCH 2021 Total 2021 Total 2020 Turnovar Operating expondllure Gains on disposal of housing propertl&$ 3,126.113 13.048,8401 97,084 2.902,254 12,954,808) Operatlng surplus I Ideflcltl Intere81 receivablB and other incom8 Inlgrest and financing costs 174,357 152,5541 146,0021 161,1921 Totol ¢ornprehen$lve Incom• lor the yaor 128,355 1113,7461 Tha ¢onsoll anclal statements wero approvgd by the Board on 27 September 2021. P SSmpso Truslee J Horn8 Truslee Th6 company's rosults relate wholly to contlnuing operations. The accompanying notès ftsrm part ol Ihgse financial statemènts Page 21

WORCESTERSHIRE YMCA LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted

	General	Designated		Restricted	Total
	Funds	Funds		Funds
	£	£		£	£
Balance at 31 March 2017	1,413,404	1,969,911		244,299	3,627,614
Surplus from statement of
comprehensive income	86,841	-		69,018	155,859
Transfer between funds	210,481	(25,032)		(185,449)	-
Balance at 31 March 2018	1,710,726	1,944,879		127,868	3,783,473
Surplus from statement of
comprehensive income	688,346		-	(127,868)	560,478
Transfer between funds	32,571	(32,571)		-	-
Balance at 31 March 2019	2,431,643	1,912,308		-	4,343,951
Deficit from statement of
comprehensive income	(162,205)	-		-	(162,205)
Transfer between funds	(499,339)	499,339		-	-
Balance at 31 March 2020	1,770,099	2,411,647		-	4,181,746

Page 22

WORCESTERSHIRE YMCA LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN RESERVES FOR THE

YEAR ENDED 31 MARCH 2021

Unrestricted

	General	Designated	Restricted	Total
	Funds	Funds	Funds
	£	£	£	£
Balance at 31 March 2020	1,770,099	2,411,647	-	4,181,746
Surplus from statement of
comprehensive income	153,693	-	-	153,693
Transfer between funds	20,408	(20,408)	-	-
Balance at 31 March 2021	1,944,200	2,391,239	-	4,335,439

Page 23

WORCESTERSHIRE YMCA LIMITED

COMPANY STATEMENT OF CHANGES IN RESERVES FOR THE

YEAR ENDED 31 MARCH 2021

	Unrestricted	Unrestricted
	General	Designated			Restricted	Total
	Funds	Funds			Funds
	£	£			£	£
Balance at 31 March 2017	46,405	1,969,911			58,850	2,075,166
Surplus from statement of
comprehensive income	(97,538)		-		69,018	(28,520)
Transfer between funds	25,032	(25,032)			-	-
Balance at 31 March 2018	(26,101)	1,944,879			127,868	2,046,646
Surplus from statement of
comprehensive income	33,631			-	(127,868)	(94,237)
Transfer between funds	32,571	(32,571)			-	-
Balance at 31 March 2019	40,101	1,912,308			-	1,952,409
Deficit from statement of
comprehensive income	(113,746)	-				(113,746)
Transfer between funds	(6,411)	6,411			-	-
Balance at 31 March 2020	(80,056)	1,918,719			-	1,838,663

Page 24

WORCESTERSHIRE YMCA LIMITED

COMPANY STATEMENT OF CHANGES IN RESERVES FOR THE

YEAR ENDED 31 MARCH 2021

Unrestricted

Balance as at 31 March 2020 Surplus from statement of comprehensive income Transfer between funds Balance at 31 March 2021	General Funds £ Designated Funds £ Restricted Funds £ Total £ (80,056) 1,918,719 - 1,838,663 128,355 - - 128,355 18,078 (18,078) - - 66,377 1,900,641 - 1,967,018

Page 25

WORCESTERSHIRE YMCA LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2021

		Unrestricted	Unrestricted
			Designated	Restricted	Total	Total
		General Fund	Funds	Funds	2021	2020
		2021	2021	2021
	Note	£	£	£	£	£
Income from:
Donations and grants		576,800	-	430,439	1,007,239	304,723
Other trading activities		808,562	-	-	808,562	966,640
Investment income	5	31	-	-	31	8
Charitable activities	3	2,047,640	-	475,766	2,523,406	2,910,731
Other income	3	97,084	-	-	97,084	-
Total income		3,530,117	-	906,205	4,436,322	4,182,102
Expenditure on:
Raising funds – trading
activities		833,243	-	-	833,243	633,948
Charitable activities		2,543,181	-	906,205	3,449,386	3,710,359
Total expenditure	6	3,376,424	-	906,205	4,282,629	4,344,307
Net income for the
year before other
recognised gains
and losses		153,693	-	-	153,693	(162,205)
Transfer between
funds	17	20,408	(20,408)	-	-	-
Net movement in
funds		174,101	(20,408)	-	153,693	(162,205)
Reconciliation of
funds
Fund balance at 1
April 2020		1,770,099	2,411,647	-	4,181,746	4,343,951
Fund balance at 31
March 2021	18	1,944,200	2,391,239	-	4,335,439	4,181,746

The accompanying notes form part of these financial statements.

All activities derive from continuing operations.

Page 26

WORCESTERSHIFIE YMCA LIMITED STATEMENT OF FINANCIAL POSITION 31 m?￿h 2021 Reglstered company number,. 01944516 Group 2021 Nolgs Assoclatlon 2Q21 2020 2020 Flxed a958ts Land and buildings 4,331,293 4.453,882 3.017,505 3,108,816 Olh8r tangiblo Ilxed assets Investments Goodwlll 12 13a 13b 41,498 58,736 690 493,373 17.578 22,205 428,741 470,927 552,799 17,578 22,205 Current •J¥o19 Debtors Cash at bank and In hand 14 225.223 2,064.890 265,837 1,795,961 226,209 1,116,062 250,748 683,975 2,290,113 2,061,798 1,342,271 934,723 Credltors: amounts falling duè wlthln one year 15 1549,8811 1662,2941 1,082,392) 1897,8931 Net curronl a$$èt8 1,740,232 1,399,504 259,879 36,830 Total assets less currgnl 6,542,452 6,406,185 3.294,962 3,167.851 Credltor8'. arnounts lalling due aftei more than on year 16 11,814,489) 11,888,988) 11,024.5201 11,071.4251 Provision lor liabilities and Charges 21 1392.5241 1335,4511 1303,4241 1257,7631 Net assets 4,335,439 4.181,746 1,967,018 1,838,663 Rgpre88nted by Unr¥strlcted tunds General funds 06lgnated funds Pension reserve Revaluatlon reserve 17 17 17 17 2,￿6,724 2,103,553 2,391,239 2,411,647 1892,5241 1333.4541 389.801 1,900,641 I3￿,424) 177,707 1.918,719 1257,7631 4,335,439 4,181,746 1,967,016 1,838,863 Restrleted funds 17 Total 4,335,439 4,181.746 1,987,018 1.838,663 Approved by t oar n 27 S8ptemb6r 2021 P SlmF60n J Horn8 The accompanylng these Ilnanckil stat8menis Page 27

WORCESTERSHIRE YMCA LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31 March 2021

Note Net cash generated from operating activities 19 Returns on investment and servicing of finance Interest paid Interest received Net cash outflow from returns on investments and servicing of finance Capital expenditure Payments to acquire tangible fixed assets Proceeds from sale of fixed assets Acquisition of subsidiary Net cash inflow / (outflow) from capital expenditure Financing Net movement in short term borrowings Net movement in long term borrowings Net cash (outflow)/inflow from financing Net change in cash and cash equivalents 20	2021 £ 282,944 (57,105) 31 (57,074) (9,105) 126,116 - 117,011 547 (74,499) (73,952) 268,929	2020 £ 25,349 (84,198) 8 (84,190) (38,300) - (91,094)
		(129,394) 1,757 (77,058)
		(75,301)
		(263,536)

The accompanying notes form part of these financial statements.

Page 28

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

1 Legal status

Worcestershire YMCA is a company limited by guarantee, registered under the Companies Act 2006, an English registered social housing provider and a charity.

The address of the registered office is given on page 1 of these financial statements.

The principal activities of Worcestershire YMCA are outlined on page 8 to the financial statements.

Worcestershire YMCA is a public benefit entity as defined by FRS 102.

2 Accounting policies

The principal accounting policies of the company are as follows:

Basis of accounting

The financial statements have been prepared in accordance with UK applicable accounting standards (UK GAAP) including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice for Social Housing Providers 2018, and with the Accounting Direction for private registered providers of social housing in England 2019. The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008 and the Companies Act 2006.

The financial statements are prepared in sterling which is the functional currency of Worcestershire YMCA and rounded to the nearest £1.

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

Going Concern

At the time of signing the accounts, the Trustees have considered the effect of the Coronavirus on the going concern position, and consider that this does indicate that the group will continue to operate for a period of at least 12 months from the date of signing these accounts due to the level of funding already secured with its key partners

At the balance sheet date the group held significant cash balances. The group has significant reserves, the majority of which are unrestricted and is sufficient to absorb short-term in-period deficits if required. Government support is utilised, where it is appropriate to do so, and since the year end the Furlough scheme and other government grants have been accessed.

The financial forecasts prepared by the executive team show that the group will be able to operate within the facilities available to it.

On that basis the Trustees have prepared these financial statements on a going concern basis.

Consolidated accounts

The group is required by the Companies Act to prepare consolidated accounts. These consolidated accounts therefore comprise the financial statements of Worcestershire YMCA Limited, and of its subsidiary Worcester YMCA (including Worcester YMCA subsidiaries: Little Treasures Limited and First Class Nursery (Kidderminster) Limited).

All intra-group transactions and balances between Group companies are eliminated on consolidation.

Page 29

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

Business Combinations

The cost of a business combination is the fair value at the acquisition date, of the consideration paid and liabilities incurred or assumed, plus costs directly attributable to the business combination.

The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straightline basis over its useful life. The period chosen for writing off goodwill is nine years representing the remaining life of the lease acquired on the business premises of the subsidiary acquired.

Incoming resources

Incoming resources represent the amounts receivable in respect of operational activities, grants receivable and fundraising activities, excluding value added tax.

Grants received for housing properties are recognised at the fair value of the asset received or receivable. Where the assets are accounted for using the cost model then the government grant is accounted for using the accruals model. The difference between the fair value of the asset and the consideration is recognised as a liability and amortised over the useful economic life of the asset. This amortisation is recognised within turnover. Where the assets are accounted for using the valuation model then the government grant is accounted for using the performance model so that turnover is taken once the performance conditions have been met.

Where disposal of government donated assets are required to be recycled, a liability is included to recognise this obligation.

Government grants received as a contribution to revenue expenditure are recognised in the statement of comprehensive income on a systematic basis over the period in which the landlord recognises the related costs for which the grant is intended to compensate. The related expenditure is included under administrative expenses. Grants are recognised in the same period as the related expenditure provided the conditions for receipt have been satisfied and there is reasonable assurance that the grant will be received.

Rents and service charges are accounted for when receivable in the year net of service charge losses and voids.

Supporting People Grant

Supporting People Grants (SPGs) are made by Worcestershire County Council and are utilised to provide affordable support to young people at risk in the community, whilst with the aim to develop skills that will make them independent of the Association. The grants are made directly to the Association and are recognised as income when the payment has been received.

SPG would become repayable if the availability of the support was not maintained during the period of the individual claim.

Page 30

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. The charitable company is partially exempt from VAT and irrecoverable VAT is included within the relevant category of expenditure.

Charitable expenditure comprises those costs incurred by the charitable company in the delivery of its activities and services for its beneficiaries.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charitable company and include audit fees and costs linked to the strategic management of the charitable company.

All costs are allocated between the expenditure categories on a basis designed to reflect the use of the resource. Costs relating to a particular activity comprise both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Rentals on operating leases are charged in the revenue account as incurred.

Tangible fixed assets – housing properties

Housing properties, which are social housing grant assisted, are stated at valuation less depreciation.

Depreciation is provided at rates calculated to write off the cost of housing properties net of social housing grant, over their estimated useful lives using the straight-line method at the following rates:

Land	Not depreciated
Main fabric	100 years
Roof structure and covering	35 years
Windows and external doors	20 years
Mechanical	30 years
Electrical	30 years

Other tangible fixed assets

Fixed assets other than housing properties are stated at cost less accumulated depreciation. With the exception of computing equipment, the costs of minor additions or those costing below £500 are not capitalised. Depreciation is provided to write off the cost of such fixed assets over their estimated economic lives at the following rates:

Freehold buildings	over 10 or 32 years on a straight line basis
Fixtures	15% straight line
Motor van	25% straight line
Computer equipment	20% straight line
Other equipment	10% straight line

Restricted reserves

These reserves are subject to restrictions on their expenditure imposed by their donor or through the terms of appeal, the policy for the Supporting People Grant is set out above.

Designated reserves

Worcestershire YMCA Limited set aside designated reserves for funds for reinvestment in properties.

Page 31

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

Housing Properties

Housing properties are principally properties available for rent and are stated at valuation less any provision for impairment (representing a diminution in the recoverable service potential of the asset below its carrying value in the balance sheet) less depreciation.

Works to existing properties which result in an increase in the net rental income, including a reduction in maintenance costs or result in a significant extension of the useful economic life of the property are capitalised.

Major components of housing properties, such as roofs, windows and external doors, mechanical and electrical equipment, have been accounted for and depreciated separately from the connected housing property, over their expected useful economic lives.

Investments

Investments are included at closing mid-market value at the balance sheet date. Any gain or loss of revaluation is taken to the statement of comprehensive income.

Pensions

Worcestershire YMCA Limited and Worcester YMCA participated in a multi-employer defined benefit pension plan for employees of YMCAs in England, Scotland and Wales, which was closed to new members and accruals on 30 April 2007. The plan’s actuary has advised that it is not possible to separately identify the assets and liabilities relating to Worcestershire YMCA Limited and Worcester YMCA; therefore the scheme is accounted for as a defined contribution scheme.

As described in note 21 Worcestershire YMCA Limited and Worcester YMCA have contractual obligations to make pension deficit payments of £49,065 pa over the period to April 2029, accordingly this is shown as a liability in these accounts. In addition, Worcestershire YMCA Limited and Worcester YMCA are required to contribute £11,611 pa to the operating expenses of the Pension Plan and these costs are charged to the Statement of Comprehensive Income as made.

The employer contributions in relation to the pension plan are determined by the Trustee based on advice from a qualified actuary and charged as they are incurred.

In addition, all staff are eligible for employer’s pension contributions to be paid to a stakeholder or equivalent contributory personal pension scheme, with the level of contribution depending on their own level of contribution. The Association has no liability beyond the payment of its agreed monthly contributions. The contributions are charged to the Statement of Financial Activities as incurred.

Taxation

Worcestershire YMCA and Worcester are registered Charities and are therefore exempt from paying corporation tax on charitable activities.

Little Treasures Limited and First Class Nursery (Kidderminster) Limited are not registered as charities and therefore corporation tax would be payable on tax surpluses should they arise.

Page 32

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

Value Added Tax (VAT)

The majority of the Group expenditure is subject to VAT which cannot be reclaimed. Expenditure is therefore shown inclusive of VAT.

Although a large proportion of the Group's income is exempt from VAT, the Group charges VAT on some of its income and is able to recover VAT on directly attributable costs. The Group is also able to recover part of the VAT it incurs on overhead expenditure in line with a partial exemption method agreed with HM Revenue and Customs.

The Financial Statements include VAT to the extent that it is suffered by the Group and not recoverable from HMRC. The balance of VAT payable or recoverable at the year end is included as a current liability or asset.

Operating leases

Rentals under operating leases are charged to the statement of financial activities on a straight line basis over the term of the lease.

Loan Interest Costs

The full costs of deferred interest rate and indexation loans are shown in the Income and Expenditure Account.

Borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Provisions

Provisions are recognised when the group has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Critical areas of judgement

Leases

In determining whether leases are finance or operating leases, management judges as to whether (or not) the significant risks and rewards of ownership have transferred to Worcestershire YMCA.

Useful lives of depreciable assets

Management reviews the useful lives of assets at each reporting date.

Multi period income agreements

In determining the revenue to be recognised on grants, or contract income whose project spans more than one period of account; Management recognise income where the Association has entitlement to the income, it is probable the economic benefit will flow to the Association and the revenue can be reliably measured under the terms of the agreement.

Page 33

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

3 Incoming resources

Income was generated entirely within the UK and comprised:

Unrestricted/ Designated 2021 £ Restricted 2021 £ Residential accommodation Gross income before voids 1,695,238 - less: voids (72,629) - Other accommodation related non-regulated housing activity 62,603 - Gains on disposal of housing properties 97,084 - Income from residential accommodation 1,782,296 - Community activities Children and youth services 219,358 445,516 Family services 143,070 30,250 Income from community activities 362,428 475,766 Total income from activities 2,144,724 475,766	Total 2021 £ 1,695,238 (72,629) 62,603 97,084 1,782,296 664,874 173,320 838,194 2,620,490	Total 2020 £ 1,508,868 (231,835) 428,677 - 1,705,710 849,936 355,085	Total 2020 £ 1,508,868 (231,835) 428,677 - 1,705,710 849,936 355,085
			849,936 355,085
		1,205,021
		2,910,731

Of the income received in 2020 in respect of charitable activities, £2,173,803 was attributable to unrestricted funds and £736,928 was attributable to restricted funds.

Page 34

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

3 Incoming resources from housing activities (continued)

Social housing income and expenditure

Rent receivable excluding service charges Service charges receivable Gross rent receivable net of void losses Social housing operating costs Operating surplus from housing activities Void losses are detailed above. Units under management The units in management at the year-end were as follows: Accommodation – units owned The nature of the owned units was as follows: General needs – Knowle Close, Bengrove Close and Frederick Eary House Supported accommodation - Gordon Anstis House	_	2021 £ 788,729 822,344 __ 1,611,073 (842,005) 769,068 2021 No. 164 112 52 164	_	2020 £ 619,165 645,554 __ 1,264,719 (639,839)
				624,880
				2020 No. 166 114 52
				166

The above figures exclude 14 units respect of Worcester YMCA that are not regulated by the Homes and Communities Agency. The above figures also exclude an additional 33 units of rented accommodation managed by Worcestershire YMCA during the year under review which were not regulated by the Homes and Communities Agency.

Page 35

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

4 Operating surplus

The operating surplus is arrived at after charging / (crediting)

	Group		Association
	2021	2020	2021	2020
	£	£	£	£
Depreciation of housing
properties	93,557	71,442	62,279	39,962
Depreciation of other tangible
fixed assets	26,345	39,473	11,082	27,949
Auditor’s remuneration – audit of
financial statements	26,460	26,460	10,800	10,800
Auditor’s remuneration – other
services	-	1,800	-	1,800
5 Interest receivable and similar income
	Group		Association
	2021	2020	2021	2020
	£	£	£	£
Interest receivable and similar income	31	8	-	-

Page 36

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

6 Resources expended

a) Property management, maintenance and service costs

			Children	Adult and
	Residential	Accommodation	and Youth	Community	Corporate	Trading Costs	2021	2020
	regulated	non-regulated	services	Services	Services		Total	Total
	£	£	£	£	£	£	£	£
Directly incurred
People related	206,447	188,548	860,636	120,334	427,867	665,533	2,469,365	2,653,183
Premises related	651,765	41,479	127,962	-	-	64,297	885,503	728,513
Vehicle related	-	448	5,951	-	-	-	6,399	11,533
Office costs	24,413	3,725	32,085	511	54,922	8,751	124,407	137,541
Other direct expenses	272	-	93,500	8,284	-	42,206	144,262	218,336
Overheads	49,237	207	255,385	4,200	83,126	12,371	404,526	280,438
Other costs	37,332	9,351	(1,541)	-	14,571	(1,795)	57,918	204,201
Depreciation	73,361	19,376	-	-	55,632	36,167	184,536	119,243
Taxation	-	-	-	-	-	5,713	5,713	(8,681)
Direct charitable
expenditure	1,042,827	263,134	1,373,978	133,329	636,118	833,243	4,282,629	4,344,307

Of the expenditure incurred £3,376,424 relates to unrestricted funds (2020: £3,298,747) and £906,205 relates to restricted funds (2020: £1,045,560).

Indirect resources expended are allocated on a staff time basis.

Page 37

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

7 Employee costs

ployee costs
Salaries and wages Social security costs Pension and other costs The average monthly number of persons employed during the year were as follows: Housing activities Non-housing activities	2021 £ 1,966,012 119,539 152,331 2,267,882 2021 No. 8 135 143	2020 £ 2,040,646 119,472 163,284
		2,323,402
			2020 No. 8 157
			165

No fees or remuneration in respect of housing management services have been paid to any member or board member of the Association during the year. Trustee expenses of £210 were repaid during the year.

In calculating any surplus no account is taken of any amount which would recognise the extensive skilled management services provided free of charge by the Association members.

Accordingly, the board wishes to express its gratitude for both the time and energy of its volunteer members during the year.

Page 38

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

8 Employee costs – senior leadership team & key management personnel

The aggregate remuneration of the senior leadership team (who are also key management personnel) during the year was as follows: Salaries Social security costs Pension The remuneration of the highest paid member of the senior leadership team during the year was as follows: - Salary - Pension		2021 £ 202,175 21,414 23,942 247,531 2021 £ 41,345 2,925 44,270		2020 £ 224,451 23,671 31,186
				279,308
				2020 £ 66,199 9,297
				75,496

No employee is paid in excess of £60,000 during the year (2020: one employee).

9 Interest payable and similar charges

Interest payable and similar charges comprised mortgage interest.

10 Taxation

Worcestershire YMCA is considered to pass the tests set out in Sch. 6 para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Association is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11. Ch.3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 39

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

11 Land and buildings – Group

With the exception of Bengrove Close, Stanley Road, Little Treasures (non-housing) and First Class (non-housing) all properties owned by the Group were social housing grant assisted schemes. The movement on these accounts during the year is as follows:

Cost At 1 April 2020 Additions Disposals At 31 March 2021 Accumulated depreciation At 1 April 2020 Charge for year Disposals At 31 March 2021 Net book value At 31 March 2021 At 1 April 2020	Knowle Close £ 1,301,169 - - 1,301,169 118,835 31,269 - 150,104 1,151,065 1,182,334	Gordon Anstis House £ 1,570,000 - - 1,570,000 168,427 24,026 - 192,453 1,377,547 1,401,573	Bengrove Close £ 97,000 - (31,524) 65,476 11,831 (958) (2,492) 8,381 57,095 85,169	Frederick Eary House £ 534,384 - - 534,384 94,644 7,942 102,586 431,798 439,740		Stanley Road £ 585,000 - - 585,000 32,906 16,453 49,359 535,641 552,094	Little Treasures £ 815,000 - - 815,000 23,228 14,670 37,898 777,102 791,772	First Class £ 1,557 - - 1,557 357 155 512 1,045 1,200	Total £ 4,904,110 - (31,524)
									4,872,586
									450,228 93,557 (2,492)
									541,293
									4,331,293 4,453,882

The land and buildings of the Group at Knowle Close have a value for insurance purposes of £5,745,000 (2020: £5,745,000), at Gordon Anstis House of £2,600,000 (2020: £2,600,000), at Bengrove Close of £735,000 (2020: £735,000), Fredrick Eary House of £2,300,000 (2020: £2,300,000) Little Treasures £931,915 (2020; £931,915) and at Stanley Road £585,000 (2020: £585,000) In the view of the Board, this is a fair statement of the current value of the Group’s land and buildings.

All of the land and buildings are held on a freehold basis including land that is not depreciated.

Page 40

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

Land and buildings – Association

Cost At 1 April 2020 Additions Disposals At 31 March 2021 Accumulated depreciation At 1 April 2020 Charge for year Disposals At 31 March 2021 Net book value At 31 March 2021 At 1 April 2020	Knowle Close £ 1,301,169 - - 1,301,169 118,835 31,269 - 150,104 1,151,065 1,182,334	Gordan Anstis House £ B 1,570,000 - - 1,570,000 168,427 24,026 192,453 1,377,547 1,401,573	engrove Close £ 97,000 - (31,524) 65,476 11,831 (958) (2,492) 8,381 57,095 85,169		Fredrick Eary House £ 534,384 - - 534,384 94,644 7,942 - 102,586 431,798 439,740	Total £ 3,502,553 - (31,524)
						3,471,029
						393,737 62,279 (2,492)
						453,524
						3,017,505 3,108,816

12 Other tangible fixed assets - Group

Cost At 1 April 2020 Additions Disposal At 31 March 2021 Accumulated depreciation At 1 April 2020 Charge for year Eliminated on disposal At 31 March 2021 At 31 March 2021 At 1 April 2020	Motor van £ Computer equipment £ Other equipment £ 48,590 160,761 90,831 - 8,059 1,046 - - - 48,590 168,820 91,877 40,499 131,070 82,899 2,697 16,726 2,548 - - - 43,196 147,796 85,447 5,394 21,024 6,430 8,091 29,691 7,932		Fixtures £ 127,372 - - 127,372 114,350 4,374 - 118,724 8,648 13,022		Total £ 427,554 9,105 -
					436,659
					368,818 26,345 -
					395,163
					41,496
					58,736

Page 41

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

Other tangible fixed assets – Association

Motor van £ Computer equipment £ Other equipment £ Cost At 1 April 2020 37,802 128,713 88,718 Additions - 5,409 1,046 At 31 March 2021 37,802 134,122 89,764 Accumulated depreciation At 1 April 2020 37,802 117,197 82,899 Charge for year - 4,160 2,548 At 31 March 2021 37,802 121,357 85,447 Net book value At 31 March 2021 - 12,765 4,317 At 1 April 2020 - 11,516 5,819		Fixtures £ 117,793 - 117,793 112,923 4,374 117,297 496 4,870		Total £ 373,026 6,455
				379,481
				350,821 11,082
				361,903
				17,578
				22,205

13a Investments

COIF Charities Investment Market value at 1 April 2020 Market value at 31 March 2021	Group 2021 £ 690 690	2020 £ 690 690	Association 2021 £ 2020 £ - - - -	Association 2021 £ 2020 £ - - - -
				-

Page 42

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

13b Goodwill

Cost Brought forward at 1 April 2020 Additions At 31 March 2021 Amortisation Brought forward at 1 April 2020 Amortisation in year At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020	Group 2021 £ 595,320 - 595,320 101,947 64,632 166,579 428,741 -		2020 £ 440,652 154,668 595,320 44,065 57,882 101,947 - 493,373		Association 2021 £ 2020 £ - - - - - - - - - - - - - - - -	Association 2021 £ 2020 £ - - - - - - - - - - - - - - - -	Association 2021 £ 2020 £ - - - - - - - - - - - - - - - -
							-
							- -
							-
							- -

Page 43

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

13c Investments: wholly controlled subsidiary undertakings

The parent charitable company wholly controls the following charitable company:

	Country of registration or
Charitable company	incorporation
Worcester YMCA	England and Wales	Limited by guarantee

Worcester YMCA wholly controls Little Treasures Limited and First Class Nursery (Kidderminster) Limited which are both incorporated in England and Wales and Limited by guarantee.

Statement of total comprehensive income Worcester YMCA (group)

	2021	2020
	£	£
Turnover	1,213,095	1,279,840
Operating expenditure	(1,169,091)	(1,305,302)
Operating surplus	44,004	25,462
Interest receivable and other
income	31	8
Interest and financing costs	(18,696)	(23,006)
Surplus / (deficit) for the year	25,339	(48,460)

Page 44

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

13c Investments: wholly controlled subsidiary undertakings (continued)

Statement of financial position

Fixed assets Intangible assets Tangible fixed asset Investments Current assets Debtors Cash at bank and in hand Creditors: amounts falling due within one year Net current assets Total assets less current liabilities Amounts falling due in more than one year Creditors: amounts falling due after more than one year Provisions for liabilities and charges Net assets	£ 656,805 948,822		2021 £ 428,741 1,337,710 690 1,767,141 1,480,347 3,247,488 (789,967) (89,100) 2,368,421	£ 384,898 1,111,980		2020 £ 493,372 1,381,604 690
						1,875,666 1,362,667
	1,605,627 (125,280)			1,496,878 (134,211)
						3,238,333 (817,563) (77,688)
						2,343,082

Page 45

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

14 Debtors

Group 2021 £ Rent arrears 527,896 Provision against rent arrears (432,238) 95,658 Other debtors 43,278 Prepayments and accrued income 86,287 225,223	2020 £ 563,886 (473,515) 90,371 70,100 105,366 265,837	Association 2021 £ 2020 £ 454,808 453,009 (359,131) (362,820) 95,677 90,189 44,246 66,156 86,286 94,403 226,209 250,748	Association 2021 £ 2020 £ 454,808 453,009 (359,131) (362,820) 95,677 90,189 44,246 66,156 86,286 94,403 226,209 250,748
			90,189 66,156 94,403
			250,748

15 Creditors: amounts falling due within one year

Bank loans and overdrafts Deposits held for residents Social security and other taxes Trade creditors Other creditors Accruals and deferred income Owed to group undertakings Corporation tax	Group 2021 £ 67,425 8,666 35,284 194,040 11,446 225,309 - 7,711 549,881	Association 2020 £ 2021 £ 66,878 35,249 8,666 8,666 37,245 24,164 236,680 177,262 13,234 6,242 297,226 188,451 - 642,358 2,365 - 662,294 1,082,392	2020 £ 33,503 8,666 26,394 182,161 8,923 272,319 365,927 -
			897,893

Page 46

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

15 Creditors: amounts falling due within one year (continued)

The average number of days between receipt and payment of purchase invoices was 30 (2020: 30).

Deferred income primarily relates to funding billed in advance of the undertaking of the projects to which it relates where the funding is based on performance deliverables.

Included in accruals and deferred income above is deferred income of £182,185 (2020: £235,537) and this is analysed below:

s is analysed below:
Deferred income brought forward Movement during the year Deferred income carried forward	£ 253,537 (71,352)
	182,185

16 Creditors: amounts falling due after more than one year

Bank loans Loan maturity analysis Within one year Within one to two years Within two to five years In more than 5 years	Group 2021 £ 1,814,489 67,425 68,837 215,664 1,529,988 1,881,914	2020 £ 1,888,988 66,878 68,214 213,296 1,607,478 1,955,866	Association 2021 £ 2020 £ 1,024,520 1,071,425 35,249 33,503 36,661 34,839 119,135 113,171 868,726 923,415 1,059,771 1,104,928	Association 2021 £ 2020 £ 1,024,520 1,071,425 35,249 33,503 36,661 34,839 119,135 113,171 868,726 923,415 1,059,771 1,104,928
				33,503 34,839 113,171 923,415 1,104,928

Interest is payable on the loans at normal commercial rates.

Loans are secured by a legal charge over the properties concerned.

Page 47

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

17 Movement in funds - Group

	Balance at				Balance at
	1 April				31 March
	2020	Incoming	Outgoing	Transfers	2021
	£	£	£	£	£
Designated funds
Financed fixed assets	2,411,647	-	-	(20,408)	2,391,239
General fund	2,103,553	3,530,117	(3,317,354)	20,408	2,336,724
Pension reserve	(333,454)	-	(59,070)	-	(392,524)
	__	__	__	__	__
Total unrestricted funds	4,181,746	3,530,117	(3,376,424)	-	4,435,439
Restricted funds
Supporting People	-	128,363	(128,363)	-	-
U Can Educational Project	-	4,639	(4,639)	-	-
Redditch Youth	-	130,294	(130,294)	-	-
Prison contract – HMP Hewell	-	173,320	(173,320)	-	-
National Citizen Service	-	265,810	(265,810)	-	-
BBO Job Coach	-	140,720	(140,720)	-	-
CCG	-	6,563	(6,563)	-	-
Positive Activities	-	56,496	(56,496)	-	-
	__	__	__	__	__
Total restricted funds	-	906,205	(906,205)	-	-
	__	__	__	__	__
Total funds	4,181,746	4,436,322	(4,282,629)	-	4,435,439

Designated

Financed fixed assets

These are funds set aside by the Board to represent loan finance commitments together with the associated net book value of fixed assets that are mortgaged.

Restricted

Supporting People U Can Educational project

Community Capacity Redditch Youth Prison Contract – HMP Hewell

National Citizen Service

BBO Job Coach

CCG

Positive Activities

Provision of support for vulnerable homeless young people

Pathway to employment for unemployed people furthest away from the job market

Provision of information and guidance on community provision

Provision of positive activities for young people

Providing childcare and family support to prisoners and their families encouraging sustained involvement whilst fathers are in prison.

Provision of social action training for young people aged 16 and 17 years old

Provision of support for economically inactive and unemployed person aged 16+

Provision of mental health counselling for children aged 11 to 18 years

Provision of positive activities in Bromsgrove

Page 48

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

17 Movement in funds – Group – prior year

	Balance at				Balance at
	1 April				31 March
	2019	Incoming	Outgoing	Transfers	2020
	£	£	£	£	£
Designated funds
Financed fixed assets	1,912,308	-	-	499,339	2,411,647
General fund	2,790,857	3,136,542	(3,324,507)	(499,339)	2,103,553
Pension reserve	(359,214)	-	25,760	-	(333,454)
	__	__	__	__	__
Total unrestricted funds	4,343,951	3,136,542	(3,298,747)	-	4,181,746
Restricted funds
Supporting People	-	140,038	(140,038)	-	-
Community Capacity	-	58,139	(58,139)	-	-
Redditch Youth	-	72,363	(72,363)	-	-
Big Lottery Fund	-	190,052	(190,052)	-	-
National Citizen Service	-	395,016	(395,016)	-	-
BBO Job Coach	-	104,903	(104,903)	-	-
CCG	-	11,088	(11,088)	-	-
Positive Activities	-	42,682	(42,682)	-	-
Bromsgrove Hub	-	26,304	(26,304)
U Can Educational Project	-	4,975	(4,975)	-	-
	__	__	__	__	__
Total restricted funds	-	1,045,560	(1,045,560)	-	-
	__	__	__	__	__
Total funds	4,343,951	4,182,102	(4,344,307)	-	4,181,746

18 Analysis of net assets between funds

Unrestricted funds General Designated Pension Reserve Revaluation Reserve Restricted funds Net assets at 31 March 2021	Fixed assets £ Goowill & Invest- ments £ 99,636 429,431 4,273,153 - - - - - - - _____ 4,372,789 429,431	Current assets £ 2,290,113 - - - - 2,290,113	Creditors falling due within one year £ Creditors falling due after more than one year £ Provisions for liabilities and charges £ (482,456) - - (67,425) (1,814,489) - - - (392,524) - - - - - - (549,881) (1,814,489) (392,524)	Total £ 2,336,724 2,391,239 (392,524) - -
				4,335,439

Page 49

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

Analysis of net assets between funds – Prior year

Unrestricted funds General Designated Pension Reserve Revaluation Reserve Restricted funds Net assets at 31 March 2020	Fixed assets £ Goowill & Invest- ments £ 145,105 494,063 4,367,513 - - - - - - - _____ 4,512,618 494,063	Current assets £ 2,061,798 - - - - 2,061,798	Creditors falling due within one year £ Creditors falling due after more than one year £ Provisions for liabilities and charges £ (595,416) - (1,997) (66,878) (1,888,988) - - - (333,454) - - - - - - (662,294) (1,888,988) (335,451)	Total £ 2,103,553 2,411,647 (333,454) - -
				4,181,746

19 Cash outflow from operating activities

Net movement in funds Interest paid Interest received Profit / (loss) on disposal Depreciation of tangible fixed assets Amortisation Decrease / (increase) in debtors Decrease in stock (Decrease) / increase in creditors Increase / (decrease) in provisions	2021 £ 153,693 57,105 (31) (97,084) 119,902 64,632 40,614 - (112,960) 57,073 282,944	2020 £ (162,205) 84,198 (8) 259 110,915 57,882 (58,715) 704 16,082 (23,763)
		25,349

20 Analysis of cash and cash equivalents

Cash at bank and in hand Loans falling due within one year Loans falling due after one year Total	At 1 April 2020 £ Cash Flow £ 1,795,961 268,929 (66,878) (547) (1,888,988) 74,499 (159,905) 342,881	Non-cash Changes £ At 31 March 2021 £ - 2,064,890 - (67,425) - (1,814,489) - 182,976	Non-cash Changes £ At 31 March 2021 £ - 2,064,890 - (67,425) - (1,814,489) - 182,976
			182,976

Page 50

WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

21 Pension commitment

Worcestershire YMCA Limited and Worcester YMCA participated in a contributory pension plan providing defined benefits based on final pensionable pay for employees of YMCAs in England, Scotland and Wales. The assets of the YMCA Pension Plan are held separately from those of Worcestershire YMCA Limited and Worcester YMCA and at the year-end these were invested in the Mercer Dynamic De-risking Solution, 40% matching portfolio and 60% in the growth portfolio and Schroder (property units only).

The most recent completed three year valuation was as at 1 May 2020. The assumptions used which have the most significant effect on the results of the valuation are those relating to the assumed rates of return on assets held before and after retirement of 2.59% and 1.09% respectively, the increase in pensions in payment of 2.99% (for RPI capped at 5% p.a.), and the average life expectancy from normal retirement age (of 65) for a current male pensioner of 22.0 years, female 24.4 years, and 23.7 years for a male pensioner, female 26.1 years, retiring in 20 years time. The result of the valuation showed that the actuarial value of the assets was £146.1m. This represented 79% of the benefits that had accrued to members.

The Pension Plan was closed to new members and future service accrual with effect from 30 April 2007. With the removal of the salary linkage for benefits all employed deferred members became deferred members as from 1 May 2011.

The valuation prepared as at 1 May 2020 showed that the YMCA Pension Plan had a deficit of £36 million. Worcestershire YMCA has been advised that it will need to make monthly contributions of £3,160.65 from 1 May 2021. This amount is based on the current actuarial assumptions (as outlined above) and may vary in the future as a result of actual performance of the Pension Plan. The current recovery period is 8 years commencing 1st May 2021.

As at 31 March 2021 As at 31 March 2020	Within 1 year One to two years Two to five years £ £ £ 49,065 49,065 147,196 47,636 47,636 142,909	After five years After more than one year £ £ 147,198 343,459 95,272 285,818	Total 2021 £ 392,524	Total 2020 £ - 333,454

In addition, Worcestershire YMCA Limited and Worcester YMCA may have over time liabilities in the event of the non-payment by other participating YMCAs of their share of the YMCA Pension Plan’s deficit. It is not possible currently to quantify the potential amount that Worcestershire YMCA Limited and Worcester YMCA may be called upon to pay in the future.

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WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

YMCA contributory pension scheme

All staff are eligible for employers’ pension contributions to be paid to a stakeholder or equivalent contributory personal pension scheme, with the level of contribution depending on their own level of contribution. The Association has no liability beyond the payment of its agreed monthly contributions.

The chief executive participates in the YMCA contributory pension scheme with an agreed level of contribution being paid by the Association. The Association has no liability beyond the payment of its agreed monthly contributions.

The total pension charge for the year is shown in note 7. The amount outstanding at the year-end was £7,534 (2020: £9,749).

22 Contingent liabilities

The Social Housing Grants are repayable under certain circumstances (for example the sale of properties).

As detailed in note 21 above, Worcestershire YMCA Limited and Worcester YMCA may incur liabilities in the event of the non-payment by other participating YMCA’s of their share of the YMCA Pension Plan’s current deficit. The method of allocation of the deficit has not yet been finalised and the future ability of other participating YMCA employers to meet their obligations cannot presently be determined. No provision for any liability that may arise has been made in these financial statements.

23 Capital commitments

There were no capital commitments at the balance sheet date (2020: £nil).

24 Financial commitments

Financial commitments under non-cancellable operating leases will result in the following payments falling due:

Contracts expiring Within one year Within two to five years Over five years	2021 £ 2020 £ 133,724 28,837 79,644 63,337 225,600 239,700
	438,968 331,874

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WORCESTERSHIRE YMCA LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

25 Related Party Transactions

During the year Worcester YMCA made loans and recharged expenses to Worcestershire YMCA Limited amounting to £277,021 (2020: £148,727). Worcestershire YMCA owed Worcester YMCA £613,376 (2020: £336,355) at the year end.

Little Treasurers Limited, subsidiary of Worcester YMCA repaid loans amounting to £590 (2020: made loans and recharged expenses of £217,200) to Worcestershire YMCA Limited. Worcestershire YMCA owed Little Treasures Limited £28,982 at the year end (2020: £29,572).

Little Treasurers Limited, subsidiary of Worcester YMCA repaid loans and covenanted income amounting to £125,000 to Worcester YMCA. (2020: £245,104) during the year. £366,455 (2020: £491,455) was owed by Little Treasures Limited at the year end.

Worcester YMCA made loans, recharged expenses and received covenanted income to/from First Class Nursery (Kidderminster) Limited, subsidiary of Worcester YMCA, amounting to £156,895 during the year (2020: £106,143). £263,038 was owed to Worcester YMCA at the year end (2020: £106,143).

During the year First Class Nursery (Kidderminster) Limited loaned £100,000 to Little Treasures Limited – this amount was outstanding at the year end (2020: £nil).

During the year Worcestershire YMCA Limited made loans of £11,552 (2020: £3,883) to First Class Nursery (Kidderminster) Limited. At the year end Worcestershire YMCA Limited was owed £15,435 (2020: £3,883) by First Class Nursery (Kidderminster) Limited.

The movements relate to net cash movements during the year and the recharges etc. noted above.

26 Legal status of the charitable company

The company is registered under section 2 of the Housing Act 1996 (number LH3687) and continues to be a registered charity. The company is established as a registered social landlord with no share capital. The Association is limited by guarantee with members required to contribute up to a maximum of £1 each, should there be a deficiency on winding up. The charitable company is governed by its articles of association.

27 Ultimate controlling party

Worcestershire YMCA Limited is controlled by its Board of Trustees.

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