2021-03-31-accounts

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REGISTERED COMPANY NUMBER: 00263310 (England and Wales) REGISTERED CHARITY NUMBER: 524481

Report of the Trustees and Audited Financial Statements for the Year Ended 31 March 2021 for Cwmni Urdd Gobaith Cymru (A Company Limited by Guarantee)

Cwmni Urdd Gobaith Cymru

Contents of the Financial Statements for the year ended 31 March 2021

	Page
Report of the Trustees	3 – 14
Report of the Independent Auditors	15 – 16
Statement of Financial Activities	17
Balance Sheet	18
Cash Flow Statement	19
Notes to the Cash Flow Statement	20
Notes to the Financial Statements	21 - 38

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Cwmni Urdd Gobaith Cymru is a registered charity and company limited by guarantee. The first branch of the movement was opened in 1922 and the Urdd was then incorporated on 8 March 1932 and registered as a charity on the same date. It was set up under the Memorandum which states the aims and powers of the company governed by the Articles of Association. Should the company be wound up in future, the liability would be no more than £0.25 payable by the trustees.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The main aims of the charity are to ensure that all the young people of Wales have the opportunity, through the medium of Welsh, to develop as complete individuals, and enable them to play a constructive role in society, by nurturing personal and social skills.

The charity fulfils its aims in four main ways, namely by offering to young people experience of residential centres, local and national eisteddfodau to promote the arts, a service of sports provision, and a network of national activities. It also offers wider opportunities by arranging occasional trips. A detailed review of achievements and performances is available in a separate annual report to be presented at the Annual Meeting (see www.urdd.cymru).

The charity is grateful for the efforts of its volunteers who help fulfil its service with fundraising and giving their time to assist in the charity's activities. Since the charity is principally a voluntary company, the results of its local area and branches are not included in the accounts. It was estimated prior to the Covid-19 pandemic that up to 10,000 volunteers contribute towards Urdd activities annually – in the main these contributions consist of volunteering for the numerous Eisteddfodau which take place on a local and regional level prior to qualification for the National Eisteddfod; assisting with numerous sports and social clubs which operate year round; helping with the organising and stewardship of regional and national competitions as well as our Trustees and other volunteers who sit on and attend our boards and panels for Business, Eisteddfod, Sport, Youth and Community. During the reporting period, no Eisteddfodau at local, regional nor national level were held due to the Covid-19 pandemic,

Achievements and Performance:

During the year, despite the restrictions of the COVID 19 pandemic, the Urdd achieved the following:

The provision of Health and Wellbeing outreach activities to children and young people at the Llangrannog and Glan Llyn residential centre.
£9.3million investment programme continued in the Urdd centres at Llangrannog and Glan-llyn, with the completion of a significant refurbishment of Glan Llyn Isa in March 2021, providing self-catering accommodation for up to 40 people in a stoned house 200 metres away from the main Glan Llyn residential centre.
Eisteddfod T, a digital festival, was held during the week that would have been the Urdd National Eisteddfod, attracting over 6,000 competitors in over 80 competitions.
ActifAdref, a series of virtual sport workshops were held as live events on a weekly basis to over 4,000 primary school aged children.
Face to face community sport in line with Government COVID restrictions was provided across the country with collaboration with over 80 schools throughout the pandemic for over 9,000 children and through 130 clubs to more than 2,000 children and young people on a weekly basis.
104 learners enrolled on the Urdd Apprenticeship scheme, a 48% increased on March 2020.
A series of digital workshops were held on a weekly basis throughout the year by the Youth and Community department, to help boost confidence for Welsh learners as well as providing a variety of activities for primary school children.
In May 2020 the Urdd’s Peace and Goodwill Message “Stop the Clock and Start Again” was translated to over 57 languages and reached over 37 million people in over 40 countries across the Word.
A virtual gospel choir was formed of students from the University of Alabama, USA and members of Urdd choirs, with the release of a video production of the song “Evert Praise” was released in November 2020 which has reached over 238,000 viewers.
In partnership with TG Lurgan form Ireland, a recording of the popular song “Golau’n Dallu / Dallta ag na Solise” was made by 28 young people across both countries, which has since reached over 110,000 viewers.

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

STRATEGIC REPORT

The trustees, who are also directors of the Charity for the purpose of company legislation, present their annual report and the audited financial statements for the year ended 31 March 2021. The accounts have adopted the provisions of the 'Statement of Recommended Practice for Charities' in preparing the annual report and the financial statements.

Significant Events and Future Developments

During the reporting period the Covid-19 global pandemic had a direct impact on the Urdd’s activities. A number of schools cancelled their visits to the Residential Centres in Llangrannog, Cardiff and Glan-Llyn which closed to all courses on 20[th] March 2020 and throughout the current financial reporting period. This resulted in a drop in revenue of over £5.6m for the reporting period.

The trustees identified that the continued effect of Covid on activities, especially on those of the residential centres, was the principal and over-riding risk and uncertainty facing the charity. A number of steps were taken by the Trustees to manage this risk. An Emergency Executive Committee was established to monitor the situation and maintain close contact with the Charity’s Senior Management Team. This Committee initially met weekly and continued at least monthly from July 2020 to May 2021; with monthly Trustees’ meetings continuing with the monitoring thereafter. The Emergency Executive Team:

i. Supported the Senior Management Team in ensuring that the Charity benefitted from the UK Government’s assistance to businesses, such as the Job Retention Scheme. As a result, almost 250 of the Urdd staff and seasonal workers were placed on Furlough from 1[st] April 2020;
ii. Supported the Senior Management Team in working to secure Welsh Government resilient grant funding to support the Urdd through the lockdown period;
iii. Agreed an emergency budget for the following 24 months;
iv. Overseen a review of the Charity’s staffing requirements and subsequent staff consultation which resulted in significant redundancies in October 2020.

Throughout the Pandemic, the Urdd has remained committed to continuing to deliver its charitable objectives as well as being focussed on ensuring the safety and well-being of its staff and members. The Urdd has successfully adapted its services and delivery during the lockdown periods – providing increasing services on-line.

In response to the postponement of the Urdd Eisteddfod in May 2020, the charity took the innovative step to stage a ‘virtual’ Eisteddfod T. In partnership with key stakeholders, S4C and Avanti, this resulted in a hugely popular and successful week of on-line competition broadcast from the Urdd Centre in Cardiff Bay.

The Urdd’s highly successful apprenticeship programme was maintained at full capacity during the pandemic, ensuring that all the charity’s apprentices were able to complete their training. As restrictions were eased, the Sport department were also able to reestablish face to face Community Sport services between September and November 2020.

The Urdd also re-configured its International partnership strategy and held successful virtual projects in November 2020 with partners in Alabama, USA and in January 2021 between the Urdd and TG Lurgan in Ireland.

The charity’s residential centres have also diversified, offering greater ‘out-reach’ services from its outdoor centres in Llangrannog and Glan-llyn, which have been able to operate residential courses for only very limited periods since March 2020.

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

STRATEGIC REPORT Financial Review

Financial Position

The Charity's results are reported in the Statement of Financial Activities on page 17.

As a result of the Covid-19 pandemic, the Urdd took necessary actions to manage the financial position of the Charity, including accessing the Coronavirus Job Retention Scheme and undertaking a review of staffing requirements resulting in significant redundancies.

The Charity has been fortunate to have benefited from contributions, legacies and donations during the period, and has also been able to access financial support, particularly from the Welsh Government, who have provided financial support to enable the Urdd to continue with construction projects and to help rebuild the Urdd after the pandemic.

Whilst the net income from all funds shows a surplus of £3,492,040 (2020: surplus of £219,628), this can be further analysed as follows:

Underlying Net Expenditure Net Gain/(Losses) on Investments (Note 1) Recognition of Capital Grants (Note 2) Welsh Government Additional Revenue Grant 2021/22 Expenditure (Note 3) Reported Net Income	2021 £ (452,871) 783,021 1,861,890 1,300,000	2020 £ (188,339) (417,987) 825,954 - 219,628
	3,492,040

Note 1 - After the pandemic affected the stock market from mid-February 2021 onwards in the previous reporting period, the recovery of the markets in 2020/21 saw the Urdd investments regain £0.78M in value (2020 reduction of £0.42m in value). The increase in value during the year is reflected in the Statement of Financial Activities.

Note 2 - The reported Net income for the year included £1,561,890 (£825,954). of capital grants from the Welsh Government and £300,000 (£nil) of capital grants from the National Lottery Community fund which was used to fund the capital expenditure at the Glan Llyn and Llangrannog residential centres. The spend of these grants have been capitalised, and therefore are not recognised in the Statement of Financial Activities.

Note 3 - A £1,300,000 additional revenue grant from the Welsh Government, including a £142,250 cultural resilience grant, is included in the reported Net Income for the year . This grant will be used to secure 60 additional staff and fund the Eisteddfod T in the 2021/22 financial year.

Each year, the Urdd’s internal management accounts show that the Llangrannog, Glan-Llyn and Cardiff residential centres, as well as the Magazine Department and the Eisteddfod and Arts Department, contribute a surplus towards development and regional activities. In accordance with accounting policies, in the statutory accounts the costs of supporting the charitable activities are apportioned on the basis of the percentage of income received by each department. In addition, grant funding is noted separately in the Statement of Financial Activities. As a result, the financial endowment of the individual departments can appear to be less than reported in the management accounts.

Fixed Assets

Changes in fixed assets are shown in the notes to the financial statements. During the year £2,128,928 was spent on various fixed assets, most notably the major re-development of Glan-llyn Isaf, and on the Llangrannog ‘Calon y Gwersyll’ development, as well as an upgrade to the communications systems at the Llangrannog centre. In November 2019 the charity secured Welsh Government funding to contribute towards its capital projects programme between 2019 – 2022.

Investment policy and objectives

The trustees' investment powers are governed by the Memorandum and Articles of Association. The trustees have decided upon a policy of investing money in a combination of government stock, listed shares and specialised investment units for charities, in order to meet their requirements for income generation and capital growth as well as ethical investment. The Trustees continue to monitor performance closely, with the Emergency Executive Committee also reviewing the performance of investments after the end of the reporting period in order to closely monitor any impact of the pandemic on the Charity’s investments.

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

Financial Review - continued

Reserves policy

As is required by the Charities commission, the charity is required to have a reserves policy to safeguard the organisation for the unexpected. The trustees have established a policy whereby general funds should represent approximately 6 months' worth of general expenditure (c£5.5 million prior to the Covid 19 pandemic). At this level, the trustees felt that the Charity would be able to continue to operate in case of any significant income shortfall. It would be necessary to consider how to change the activities or increase income in such a case.

As at 31[st] March 2021, free funds were £6,743,566 (2020: £5,201,830). However, this does not take account of:

the fact that the Urdd had previously set aside £1m of reserves towards significant capital costs of re-development of its Llangrannog and Glan Llyn centres
the inclusion of the Welsh Government Additional Revenue Grant of £1,300,000, part of which was a cultural resilience grant of £142,250, within free funds which will be used to fund 60 additional staff and Eisteddfod T in 2021/22

Whilst the long-term strategy remains to continue to increase free funds in the future by creating an annual surplus on activities, the Covid-19 pandemic is expected to have a significant effect on the Charity’s reserve position in the short term. The Trustees will continue to review the level of free funds held compared to the policy as the Charity continues to recover from the impact of the pandemic.

Restricted funds at the year-end were £2,709,884 (2020: £930,994). The majority of the balance at the year-end is made up of Restricted donations of £22,040 and Capital Grant Funding of £2,687,844 received in support of the developments at Llangrannog and Glan-llyn.

Endowment funds were £267,474 (2020: £221,249).

Financial and risk management objectives and policies

The board of trustees has reviewed those significant risks to which the Charity is exposed and set up systems to alleviate such risks. Regular reports have been prepared to ensure that appropriate measures exist to reduce risks. Internal risks have been reduced by implementing arrangements to authorise financial transactions and projects, and in order to ensure consistent quality for all the charity's activities. These arrangements have been periodically reviewed to ensure that they continue to meet charity requirements.

Going Concern

The Trustees have assessed the appropriateness of the going concern basis through updated budget and financial models for the period to March 2023 and are satisfied that it remains appropriate to use the going concern basis of preparation of the financial statements for the year ended 31 March 2021. See Accounting Policies, Note 1 to the Financial Statements.

Future plans

The Urdd's schemes are outlined in its Corporate Plan. The present Plan is in place for the period 2019-2022. The main priorities set out in the plan are:

to ENSURE that all the young people of Wales are given the opportunity, through the medium of Welsh, to develop into rounded individuals, and enable them to play a constructive role in the community, by developing personal and social skills.
to ENCOURAGE - to use the Welsh language
to be part of the Urdd’s activities
to CELEBRATE - the success of children and young people
the unique nature of the Urdd
to INNOVATE - to create new opportunities for our members
to be the best in the field

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

Future plans - continued

Priorities 2019-22:

To open our doors for more children and young people to gain access to quality provision and to use the Welsh language in a positive and social environment.
To develop the appeal of Eisteddfod yr Urdd to our members and our visitors.
To extend the provision and reach of the Urdd’s national sports competitions.
To establish a national Welsh-medium youth work model across Wales.
To invest in the 3 residential centres to offer the best experiences.
To extend the reach of our outdoor pursuits’ services across Wales.
To provide Welsh-medium apprenticeships for young people across Wales.
To aim for a worldwide reach for the Urdd’s Peace and Goodwill Message.
To offer international opportunities and experiences for Urdd members.
To establish a data system that strengthens how we communicate with our members and partners.
To create art and cultural activities for our members within their communities.
To celebrate the Urdd’s Centenary in 2022 by celebrating the past and innovating for the future.
Develop Pentre Ifan, Pembrokeshire as the fourth Urdd Camp.

The Urdd will also be taking advantage of opportunities arising to develop projects which accord with its aim and objectives, and to try to increase the budget available to operate them.

Major re-development of both the Glan Llyn and Llangrannog centres began during 2019/20 and are scheduled to continue until late 2022. Whilst the Urdd had initially set aside £3m of capital reserves towards the projects’ costs, the level of grant funding secured has since increased, which will reduce the allocation of the Urdd’s own funds. It is still envisaged that the funding model will include a commercial loan.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a Memorandum and Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Charity constitution

The charity is a company limited by guarantee without shares. It was incorporated on 8 March 1932. It is governed by a Memorandum and Articles of Association.

The trustees believe that the Urdd is a Public Benefit Entity and meets the requirements laid down in Section 4 of the Charities Act 2011.

Organisational structure

Cwmni Urdd Gobaith Cymru

Report of the Trustees for the year ended 31 March 2021

Organisational structure - continued

During the reporting period, the Urdd was managed day-to-day by a Chief Executive with the support of nine departmental heads. During the reporting period the South and North Youth and Community Regions have merged for management purposes, resulting in eight departmental heads reporting to the Chief Executive.

Meetings of the council are held twice a year in addition to the meetings of the trustees’ boards, committees and panels. As an organisation the Urdd is extremely grateful to the large number of individuals who volunteer to support this entire network.

The members of the board of trustees (who are also directors of the charity for the purposes of company legislation) who served during the year and at the date of this report are listed on page 13.

During the reporting period the following served as Honorary Presidents of the Charity:

Mr R Roberts
Mr W Melville Jones
Mr S ab Edwards
Ms R Lewis

It is with great sadness that the Trustees report the Bob Roberts in April 2020. Bob served as both the Urdd’s Treasurer and Chairman prior to becoming a Trustee in 1997 and then an honorary President in 2018. The Board of Trustees would like to acknowledge the dedication of Bob as well as his life-long loyalty to the Urdd.

During the reporting period, the Urdd President was Ethan Williams from Pontypridd until January 2021, when Ethan was succeeded by Mared Edwards from Anglesey.

Delegation

The trustees delegate day-to-day management of the charity to the Chief Executive, and the Senior Management Team, which during the reporting period consisted of:

Sian Lewis Chief Executive
Hywel Williams Director of Finance and Information Technology
Lowri Jones Director Llangrannog Centre
Huw Antur Director Glan—Llyn Centre
Gary Lewis Director Sport and Apprenticeships
Sian Eirian Director Eisteddfod and the Arts
Mali Thomas Director Communication and Development
Sian Rogers Director Youth and Communities, North
David Bryer Director Youth and Communities, South
Ceren Roberts Head of Cardiff Centre

Recruitment and Appointment of New Trustees

The Trustees receive advice from Charity’s Legal Advisers and Auditors as well as from the Human Resources Panel which consists of industry specialists and practitioners.

Induction and Training of New Trustees

When new trustees are appointed, they are offered information on their duties and responsibilities and the Urdd adopts its normal induction procedure for appointing new members of staff. This includes training in Urdd procedures and policies. An assessment is made of training needs with specific training being offered to new trustees on their role and responsibilities.

Recruitment and Appointment of New Trustees

Urdd Gobaith Cymru recruits and appoints new Trustees in accordance with its Articles of Association, which states that by a resolution at the Annual General Meeting the Charity will:

Appoint a person who has agreed to be nominated as a Trustee
Re-appoint an existing Trustee once their three-year term is complete

Cwmni Urdd Gobaith Cymru

Report of the Trustees for the year ended 31 March 2021

Recruitment and Appointment of New Trustees - continued

New Trustees are appointed for an initial term of 3 years, with the option to extend their term, upon re-election, for a further 3 years.

In this process the Board takes advice from a range of the Charity’s stakeholders, following which individuals are approached and invited to apply for vacancies on the Board of Trustees. In addition, in order to ensure transparency, prior to the Annual General Meeting, notice is given that members may nominate individuals to be considered as Trustees. In the event that there are a greater number of applicants than there are vacancies on the board, a voting procedure is adopted.

Report on Pay and Remuneration

In line with our commitment to ensure fair and competitive rates of pay, a full pay and grading review was undertaken across the Urdd during the financial year 2020/21, with a new structure introduced with effect from the 1[st] April 2021. Ensuring we are able to attract and retain candidates of the necessary calibre for our job vacancies is critical to our success.

Every job description across the organisation was reviewed, updated, assessed, scored and benchmarked. Recognising the responsibilities and duties of each role ensures a fair, appropriate and competitive salary can be aligned. The benchmarking exercise conducted as part of this process allowed the comparison of similar roles within other organisations of a similar nature and size to identify an appropriate and consistent salary level.

The Urdd’s re-grading process remains active and available to staff should there be significant change within the scope of the job role duties and responsibilities. An updated job description reflecting the changes will be considered by the HR department, who will conduct 2 independent assessments of the role using the Urdd’s chosen job evaluation tool (currently HR Inform).

Annually, the Board of Trustees assess the economic situation to determine if, and what cost of living increase should be applied to salaries for the following financial year. This is done alongside a forecasts of the organisation's financial situation, forthcoming budgets and in consultation with the HR Panel and the Staff Forum. In formulating its advice to the Trustees, the HR Panel will make use of benchmarking evidence of similar roles in comparable third sector as well as other public sector organisations, as well being advised of economic measures such as RPI and pay awards in comparable organisations.

The Urdd is committed to being a Real Living Wage employer, ensuring our starting salaries are in line with the Living Wage Foundation’s recommended rate of pay (this currently excludes apprentices).

Diversity and Staff Involvement

Urdd Gobaith Cymru has a range of policies which reflect current legislation and aim to secure retention and motivation of its staff. These policies are reviewed regularly and are equality checked before implementation. The Charity is committed to equality of opportunity in our employment practices. In particular, the Urdd aims to ensure that no potential or actual employee receives more or less favourable treatment on the grounds of age, disability, ethnic or national origin, gender, marital or parental status, nationality, political belief, race, religion, or sexual orientation. This is reflected in our equality and diversity policy.

Our HR system, CIPHR , is a safe place for staff to share personal details in relation to equal opportunity data. A campaign was launched requesting staff log in and ensure their details are up to date, accurate and as complete as possible to assist us in ensuring we have a better understanding of our workforce’s data. We cannot insist staff complete this information, however by encouraging them to do so we can ensure we are providing the best support possible to each and every employee and we will be able to more accurately report on our staff diversity. We are fully aware that we could have a much more diverse and representative workforce. We have signed up to be a Disability Confident Committed Employer and have received our level 1 certificate, which we will use as part of our recruitment campaigns to aim to recruit and attract a more diverse network of candidates. We will remain vigilant in this area.

Communication is key in all of our activities and ensuring staff are updated and aware of developments across the organisation is imperative. We use a number of resources to ensure this is effective such as departmental platforms on our Teams network and our HR system where announcements can be posted and new policies and documents shared. It is also crucial for staff to receive regular updates from the Chief Executive, which has been a much-needed resource during the reporting period given the challenges that the Urdd and wider society has faced. The communication chain within the Urdd enables information to be disseminated down from the top throughout the staffing structure – from Trustee Board Meetings, to the Senior Management Team, to departmental Managers and Staff. The Senior Management Team meet regularly to discuss any changes, developments and issues faced by the organisation and staff are kept informed of any major factors effecting the Charity as a whole and their departments and roles in particular.

Cwmni Urdd Gobaith Cymru

Report of the Trustees for the year ended 31 March 2021

Diversity and Staff Involvement – continued

A Staff Representation group, selected by the workforce, was formed during the significant consultation process as part of the necessary restructuring in 2020 due to Covid-19. This group proved to be a beneficial resource for both the management team and staff and assisted in ensuring a difficult change process was managed sensitively with full cooperation, communication, and input from all parties. The Urdd’s Staff Forum which aimed to bring together voices from across the organisation to help develop and promote staff engagement and to educate, inform and implement initiatives benefiting both employees and the organisation unfortunately dissolved following the restructuring in 2020. However, one of our main priorities for 2022 is to resurrect the Staff Forum/Representation Group, ensuring staff views are listened to as we begin to build our brand once again.

Human Resources Panel

Amongst the specialist panels to which the Trustees delegate some degree of responsibility is the Human Resources Panel which consists of an experienced HR practitioner and a law specialist, ensuring that advice is provided and decisions are made with the benefit of their experience, direction and guidance.

The Environment

Cwmni Urdd Gobaith Cymru is committed to securing continuous improvements to its procedures and use of resources, in order to reduce its carbon footprint. The Urdd recognises the Climate Emergency and aims to set a target to become a carbon neutral organisation.

Sustainable development is the essence of the Future Generations Act and the Urdd aims to improve the environmental well-being of Wales through the application and implementation of its environmental policy.

Streamlined Energy and Carbon Report (SECR)

Under the SECR regulations Urdd Gobaith Cymru is classed as a 'large unquoted' organisation and so is required to report annually on greenhouse gas emissions from Scope 1 and 2 Electricity, Gas and Transport.

Methodology

The reporting period is the most recent financial year 1 April 2020 to 31 March 2021. This report has been compiled in line with the March 2019 BEIS 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance', and the EMA methodology for SECR Reporting. All measured emissions from activities which the organisation has financial control over are included as required under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, unless otherwise stated. The carbon figures have been calculated using the BEIS 2020 carbon conversion factors for all fuels.

UK Carbon Footprint Data

----- Start of picture text -----
Scope Description 2021 2020
Scope 1 Combustion of fuel on site and 332 tCO2e 587 tCO2e
transportation
Scope 2 Purchased energy – location 103 tCO2e 207 tCO2e
based
Purchased energy – market 93 tCO2e 231 tCO2e
based
Intensity Ratio Location Based 45.95 tCO2e/£1m turnover 65.1 tCO2e/£1m turnover
Market Based 44.93 tCO2e/£1m turnover 67.2 tCO2e/£1m turnover
----- End of picture text -----

No energy efficiency actions were recorded during the reporting period due to the covid-19 pandemic.

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

TRUSTEES SECTION 172 STATEMENT

The Directors understand their responsibilities to promote the success of the Company and are aware of their duty under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, having regard to (amongst other matters):

The likely consequences of any decision in the long term
The interests of the Company’s employees
The need to foster the Company’s business relationships with suppliers, customers and others
The impact of the Company’s operations on the community and the environment
The desirability of the Company maintaining a reputation for high standards of business conduct
The need to act fairly as between members of the Company, (the “s.172(1) Matters”).

The Likely Consequences of any Decisions in the Long Term

The Board remains mindful that its strategic decisions can have long term implications for the business and its stakeholders, and these implications are carefully assessed.

During the year, in approving the Urdd’s budget the Board of Trustees addressed the following:

Established an Emergency Executive Committee, to provide leadership and support the Senior Management team during the COVID pandemic
Reviewed and restructured the workforce in response to the loss of income from the pandemic, safeguarding core staff to ensuring the Urdd can re-build in the future
Safeguarded the reserves of the Company in response to the financial hit of COVID on the Urdd’s income
Investment in a management information system for secure and robust membership registration and activity data

The Interests of the Company’s Employees

Enhancing employee engagement is an integral part of the culture of the Urdd. Senior management are actively involved in engagement with staff through, weekly face to face and electronic communications. These meetings provide updates to staff on business developments and provide an opportunity to raise questions and to answer questions directly.

The Trustees receive regular updates on employee matters from the Chief Executive, who attends Trustee Board meetings. The Urdd’s Human Resource Panel, provides support, advice and expertise to the Human Resources Department and makes recommendations on matters affecting staff, including remuneration, to the Board of Trustees. Membership of the Human Resource Panel includes independent professional human resources practitioners. The chair of the Human Resources Panel provides the Board with oversight and advice on employee engagement and attends the Board Meetings as well as meetings of the Emergency Executive Committee established in response to the Covid-19 pandemic.

This includes:

Communicating clearly with all staff and volunteers of the Urdd to explain the impact of the pandemic on the Company and plans to protect the Urdd’s workforce.
Sharing a 6 monthly electronic newsletter with all staff to update on progress and strategic development within the organisation.

Engagement with Stakeholders

The Trustees remain committed to effective engagement of all stakeholders and are mindful that the Urdd’s success depends on its ability to engage effectively, work together constructively and to take stakeholder views into account. The Trustees consider and discuss information from across the organisation to understand the impact of the Urdd operations and the interests and views of our key stakeholders. The Trustees also review financial and operational performance, as well as information covering areas such as key risks, legal and regulatory compliance.

This information is provided to the Trustees through routine reports circulated in advance of each Board of Trustees meeting and via in person presentations by senior management and other staff when appropriate.

The Urdd’s Governance structure is key to engaging with stakeholder. Regional Committees and Boards sit at regular intervals during the year. These consist of volunteers, members and other stakeholders and partners as well as a delegation of Trustees and staff and provide opinion, feedback and guidance to the Trustees providing opportunities for Trustees to engage directly with members and volunteers. To ensure an effective engagement through board, committees and sub-committees, a sub-group of Trustees was formed to review and revise the Governance of the Urdd.

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

Engagement with Stakeholders - continued

The current Boards have been established to consider matters affecting:

Business
Youth and Communities
Sport
Eisteddfod and the Arts

Stakeholders receive a regularly newsletter update from the Chief Executive.

The Company is promoted to all stakeholders through media and public engagements by the Chair of Trustees, Urdd President and the Chief Executive.

In efforts to help ensure that the voice and interests of the Urdd’s stakeholders are given due consideration and that Trustees are given the best possible opportunity to actively and positively engaging with the full range of its stakeholders, a number of practical steps have been taken, including:

Appointment of 2 young Trustees under 25 years of age
Development and active input into the 2019-2022 Corporate Plan
Commencing a review of the charity’s current governance structures with a view to modernising and better reflecting the needs of its members
Establishing a new Sport and Apprenticeship Board
Review of the structure to incorporate the views of young people in the Urdd’s strategic discussions

The Impact of the Company’s Operations on the Community and the Environment

The Trustees are committed to supporting the communities throughout Wales but give particular consideration to those regions where the Urdd’s principal residential centres are located, and the Charity’s responsibility as a local employer, a customer to local businesses as well as its environmental impact in those areas.

The Urdd is committed through its environmental policy to minimise its environmental impact by reducing both the carbon footprint of its activities and the natural resources it utilises. This is to be achieved through the development and operation of good business practices to manage resources more efficiently through their lifecycle.

The Urdd supports communities, through local employment and the local supply chain. The Urdd contributes particularly to community cohesion by delivery a range of opportunities for young people and volunteers from the local communities in and around the Charity’s main employment hubs.

Maintaining a Reputation for High Standards of Business Conduct.

The Board prides itself on its long history of honesty and integrity in its business dealings. It recognises the importance of operating a robust corporate governance framework. The Board of Trustees are actively reviewing its governance structures and intend adopting a modernised, robust governance structure that better reflects the scale of provision, turnover and staffing levels of the Charity.

The Need to Act Fairly Between Members

All Board members have completed a declaration of interest and a skills audit. This ensures that their skills knowledge and experiences are aligned to the Charity’s objectives.

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number 00263310 (England and Wales)

Registered Charity number

524481

Registered office

Adran Ariannol Gwersyll Yr Urdd Glan Llyn Llanuwchllyn, Y Bala Gwynedd LL23 7ST

Trustees

Ms E C Davies Mr D Davies, Chairman Mr T D Jones Mr G Morris Mrs M Parry Ms A Parry Mr D Price Mr R Tomos, Deputy Chairman Mr I A Walters Miss N Haf Miss S Ff Dafydd Mr G S Parry (appointed 27 March 2021) Mrs N Bennett (appointed 27 March 2021) Ms G Davies (appointed 27 March 2021)

Abigail Williams ACA is the Charity's treasurer, but has not been appointed as either a Trustee nor Director.

Company Secretary Ms A Parry

Auditors

Ashmole & Co. Chartered Certified Accountants & Registered Auditors 18 High Street Llanymddyfri Sir Gaerfyrddin SA20 0PU

Bankers

HSBC plc 19 Y Stryd Fawr Aberystwyth Ceredigion SY23 1DE

Investment Managers

Canaccord Genuity Wealth Management Anson House 1 Cae'r Llynen Llandudno Junction Conwy LL31 9LS

Principal Legal Advisors

Hugh James Two Central Square Caerdydd CF10 1FS

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also the directors of Cwmni Urdd Gobaith Cymru for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

In so far as the trustees are aware:

there is no relevant audit information of which the charitable company's auditors are unaware; and
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charitable Company's website.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 13 December 2021 and signed on the board's behalf by:

Mr Dyfrig Davies – Chairman, Board of Trustees

Report of the Independent Auditors to the Members of Cwmni Urdd Gobaith Cymru

Opinion

We have audited the financial statements of Cwmni Urdd Gobaith Cymru (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its 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.

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Report of the Trustees including 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 the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of Cwmni Urdd Gobaith Cymru

Responsibilities of trustees

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

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

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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.

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 Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

C H Llwyd FCA FCCA (Senior Statutory Auditor) for and on behalf of Ashmole & Co Chartered Certified Accountants & Registered Auditors 18 High Street Llandovery Carmarthenshire SA20 0PU

Date: 19 December 2021

Note:

The maintenance and integrity of the Cwmni Urdd Gobaith Cymru website is the responsibility of the trustees; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements as presented on the website.

Cwmni Urdd Gobaith Cymru

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 March 2021

Note INCOME AND ENDOWMENTS FROM Donations and legacies 2 Charitable activities 5 Grants - Supporting charitable activities Llangrannog and Pentre Ifan residential centre Glan Llyn residential centre Cardiff residential centre Sports department Apprentices department Eisteddfod festival and department Magazines Youth and Community department Subscriptions and membership Other trading activities 3 Investment income 4 Total EXPENDITURE ON Raising funds 6 Charitable activities 7 Llangrannog and Pentre Ifan residential centre Glan Llyn residential centre Cardiff residential centre Sports department Apprentices department Eisteddfod festival and department Magazines Youth and community costs Total Net gains/(losses) on investments NET INCOME Transfers between funds 22 Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted funds £ 614,497 1,663,000 126,469 142,957 3,146 72,600 299,254 143,000 4,743 1,679 67,932 166,022 28,828 3,334,127 48,137 854,445 614,749 194,304 21,490 332,637 39,766 26,215 280,982 2,412,725 736,849 1,658,251 8,674 1,666,925 19,915,565 21,582,490	Restricted funds £ 1,910,817 4,297,281 - - - - 10,000 - - - - - 6,218,098 - 695,234 487,729 86,038 809,429 280,686 712,974 68,085 1,299,033 4,439,208 - 1,778,890 - 1,778,890 930,994 2,709,884	Endowment funds £ - - - - - - - - - - - - 8,727 8,727 - - - - - - - - - 46,172 54,899 (8,674) 46,225 221,249 267,474	2021 Total funds £ 2,525,314 5,960,281 126,469 142,957 3,146 72,600 299,254 153,000 4,743 1,679 67,932 166,022 37,555 9,560,952 48,137 1,549,679 1,102,478 280,342 830,919 613,323 752,740 94,300 1,580,015 6,851,933 783,021 3,492,040 - 3,492,040 21,067,808 24,559,848	2020 Total funds £ 549,934 3,279,735 3,076,969 1,898,807 965,318 349,201 221,857 914,368 71,644 - 448,188 96,682 77,843 11,950,546 44,243 2,919,766 2,045,720 935,425 1,112,880 415,850 1,760,935 138,906 1,939,206 11,312,931 (417,987) 219,628 - 219,628 20,848,180 21,067,808

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities

Cwmni Urdd Gobaith Cymru (Registered number: 00263310)

Note FIXED ASSETS Intangible assets 13 Tangible assets 14 Investments 15 CURRENT ASSETS Stocks 16 Debtors 17 Investments 18 Cash at bank CREDITORS Amounts falling due within one year 19 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 22 Unrestricted funds Restricted funds: John and Rhys James Fund John and Ceridwen Medal Grants Capital Fund Endowment funds TOTAL FUNDS	Balance Sheet At 31 March 2021 Unrestricted funds Restricted funds £ £ 32,049 - 14,838,924 2,687,844 3,596,351 - 18,467,324 2,687,844 23,483 - 513,005 - - - 4,014,457 22,040 4,550,945 22,040 (1,435,779) - 3,115,166 22,040 21,582,490 2,709,884 21,582,490 2,709,884	Endowment funds £ - - 267,474 267,474 - - - - - - - 267,474 267,474	2021 Total funds £ 32,049 17,526,768 3,863,825 21,422,642 23,483 513,005 - 4,036,497 4,572,985 (1,435,779) 3,137,206 24,559,848 24,559,848 21,582,490 16,800 5,240 - 2,687,844 2,709,884 267,474 24,559,848	2020 Total funds £ - 15,539,689 3,084,596 18,624,285 30,641 778,859 896,943 2,079,944 3,786,387 (1,342,864) 2,443,523 21,067,808 21,067,808 19,915,565 6,800 5,240 93,000 825,954 930,994 221,249 21,067,808

The financial statements were approved by the Board of Trustees on 13 December 2021 and were signed on its behalf by:

Mr Rheon Tomos - Deputy Chairman, Board of Trustees

Cwmni Urdd Gobaith Cymru

Cash Flow Statement for the year ended 31 March 2021

Notes Cash flows from operating activities: Cash generated from operations 1 Cash flows from investing activities: Purchase of intangible assets Purchase of tangible fixed assets Purchase of fixed asset investments Sale of tangible fixed assets Sale of fixed asset investments Interest received Net cash used in investing activities Cash flows from financing activities: Income attributable to endowment Expenditure attributable to endowment Net cash provided by financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 2 Cash and cash equivalents at the end of the reporting period 2	2021 £ 4,104,475 (32,213) (2,128,928) (239,800) - 243,592 700 (2,156,649) 8,727 - 8,727 1,956,553 2,079,944 4,036,497	2020 £ 666,692 - (1,173,752) (457,374) 450 458,858 29,736 (1,142,082) 10,771 (3,950) 6,821 (468,569) 2,548,513 2,079,944

Cwmni Urdd Gobaith Cymru

Notes to the Cash Flow Statement for the year ended 31 March 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the statement of financial activities) Adjustments for: Amortisation charges Depreciation charges (Gain)/losses on investments Loss on disposal of fixed assets Donation of investment property Interest received Income attributable to endowment Expenditure attributable to endowment Decrease/(increase) in current investments Decrease/(increase) in stocks Decrease in debtors Increase/(decrease) in creditors Net cash provided by operating activities 2. ANALYSIS OF CASH AND CASH EQUIVALENTS Notice deposits (less than 3 months) Overdrafts included in bank loans and overdrafts falling due within one year Total cash and cash equivalents	2021 £ 3,492,040 164 136,689 (783,021) 5,160 - (700) (8,727) - 896,943 7,158 265,854 92,915 4,104,475 2021 £ 4,036,497 - 4,036,497	2020 £ 219,628 - 121,989 417,987 6,695 (350,000) (29,736) (10,771) 3,950 (21,533) 27,819 390,921 (110,257) 666,692 2020 £ 2,079,944 - 2,079,944

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements for the year ended 31 March 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Going Concern

The Urdd’s activities and future plans are set out in the Trustees Report. In their assessment of the appropriateness of the going concern basis, the Trustees have taken into account a range of factors including cash reserves, liquidity and anticipated demand for services in light of the effects of the Covid-19 pandemic.

As a result of Covid-19, income from the Urdd’s traditional activities, especially the operation of the 3 residential centres, has been significantly lower than the levels prior to the pandemic for 2021/22. However, a significant proportion of the reduction in income was offset by a combination of reduced expenditure as well as increased grant funding from other sources – principally Welsh Government and the Coronavirus Job Retention Scheme. In addition, the organisation has considerable financial resources which have been released from capital commitments following the doubling of capital investment by the Welsh Government’s 21[st] Century Schools department in the Urdd’s developments in Llangrannog and Glan-llyn.

As a consequence, the Trustees believe that the Charity is well-placed to manage its business risks through this current period of economic uncertainty and that there is a reasonable expectation that the Urdd has adequate resources to continue operating successfully for the foreseeable future. For these reasons they continue to adopt the going concern basis of accounts preparation.

Income

Income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Deferred income represents monies received for periods in the future and consequently released to income during the relevant period.

For legacies, entitlement is taken at the earlier of the date on which either, the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition has not been met, then the legacy is treated as a contingent asset and disclosed if material.

Donations are accounted when received by the charity. Tax reclaimed in respect of Gift aid is accounted for on an accrual basis. Tangible asset donations are included in the accounts at their market value. The charity also receives the benefit of work carried out by volunteers, the value of which cannot be quantified and therefore not recognised financially in the accounts.

Grant and service level agreement income are only recognised in the SOFA when the general income recognition criteria are met. In the case of performance related grants, income is only recognised to the extent that the charity has provided the specified goods and services. Capital grants are recorded in the Statement of Financial Activities in the year of receipt.

Membership subscriptions are treated as income for the provision of Charitable activities.

Investment income is recognised at the time the investment income is receivable. Investment return of Fixed Asset Investment Bond Accumulation Funds is not shown as investment income but is reflected in the price of each unit, and therefore reflected in the market value of the units at the year-end date.

Turnover is recorded net of any applicable VAT.

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements

for the year ended 31 March 2021

1. ACCOUNTING POLICIES – continued

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and includes non-recoverable VAT.

Allocation and apportionment of costs

Expenditure has been classified under headings that aggregate all cost related to the category. Where it is not possible to allocate them on this basis, i.e. the organisation's central costs, they have been allocated to charitable activities on the basis on income received by each cost centre. It is felt that this policy gives a fair reflection of the time spent centrally. Governance costs represent the cost of administering the charity and meeting constitutional and statutory requirements. The fund-raising cost represents the cost of running the sponsorship department. The costs of operating leases are acknowledged annually in equal annual instalments over the period of the lease.

Intangible assets and amortisation

Intangible assets are stated at cost, net of amortisation and any provision for impairments.

Amortisation is provided at the following rates in order to write off the cost, less estimated residual value, of each asset on a straight-line bases over its estimated useful life as follows:

Software 4 years

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long Leasehold Property Straight line over the term of the lease Plant and machinery 4% - 25% on cost and 25% on reducing balance Motor vehicles 25% on reducing balance Buildings Straight line over 50 years on the difference between cost / valuation and the expected realisable value after 50 years

Further details on the policy not to depreciate freehold buildings is given in note 13.

Land is not subject to depreciation.

Cash at Bank an in hand

Cash at bank and in hand included cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of a deposit or similar account.

Current asset investments

Current asset investments represent funds invested in a term investment for a period of less than 12 months to maturity.

Financial instruments

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

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements for the year ended 31 March 2021

1. ACCOUNTING POLICIES – continued

General Funds

General funds comprise donations and income which is receivable or generated for charity objectives with no other specific purpose and therefore available as general funds. No external conditions are imposed on general funds and they are available for expenditure by the Charity in accordance with its objectives/intentions or to set aside for appropriate internal purposes.

Designated Funds

Designated funds are general funds earmarked by the trustees for special purposes.

Restricted Funds

Restricted funds represent monies received towards special purposes where conditions are attached to their expenditure. Expenditure relating to this objective has been charged to the fund, together with a fair proportion of administration and management costs.

Endowment Funds

Endowment funds represent contributions and bequests where the contributor has noted that the monies should be kept as capital. The income has been used in accordance with the terms of the endowments and included in the statement of financial activities.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company runs three pension schemes for eligible staff.

Some of the organisation's staff are members of the Teachers' Pension Scheme, which is a national statutory contributable, defined-benefits, unfunded scheme. It is administered by the Teachers' Pension Agency, an executive agency of the Department for Education and Employment. Pension costs have been assessed by the Government Actuary. The Charity contributed 23.68% (2020: 20.68%) of pensionable pay to the scheme for the year ended 31 March 2021, that is £27,286 (2020: £23,174). The cost has been recognised in the financial statements as and when due. This scheme has been closed to new members of staff since 2000.
For members who are not eligible to join the Teachers' Scheme, the Charity has arranged a defined-contribution pension scheme. The scheme is managed independently and the charity contributes 6% of pensionable pay.
A further scheme is in place that complies with the requirements of auto enrolment for members of staff who are not contributing into the above schemes.

All schemes are held separately from charity assets and the costs have been recognised in the Statement of Financial Activities in the period to which they relate. The cost for the year of schemes 2 and 3 was £223,141 (2020: £274,365).

Branches

Not all investment or deposit accounts of the regional committees or branches have been included in the accounts, as they are not under the Charity's control. At 31 March 2021, these committees held an estimated £11,120 (2020: £683,497) by way of cash in hand.

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements for the year ended 31 March 2021

2. DONATIONS AND LEGACIES

General Grants Donations Legacies	2021 £ 1,910,817 566,470 48,027 2,525,314	2020 £ - 136,349 413,585 549,934

Voluntary income has been received in the form of general grants, donations, bequests and gifts and has been fully included in the financial statements as and when due. The value of service rendered by volunteers has not been included in the accounts.

The general grants income represents UK Government Job Retention Scheme funding in respect of furloughed employees. Donations includes £518,702 of monies received from regional committees, comprising of money raised by the committees to be used on activities for young people within each region.

3. OTHER TRADING ACTIVITIES

Miscellaneous income	2021 £ 166,022 166,022	2020 £ 96,682 96,682

Miscellaneous income relates to various incidental sundry incomes arising from the charity's activities that are not directly related to the main activity headings, e.g. rent, sponsorship, sale of promotional goods.

4. INVESTMENT INCOME

Investment portfolio income Deposit account interest	2021 £ 36,855 700 37,555	2020 £ 48,107 29,736 77,843

Investment income has been recognised when received.

5. INCOME FROM CHARITABLE ACTIVITIES

Activity Grants Grants - Supporting charitable activities Charitable activities Llangrannog and Pentre Ifan residential centre Charitable activities Glan Llyn residential centre Charitable activities Cardiff residential centre Charitable activities Sports department Charitable activities Apprentices department Charitable activities Eisteddfod festival and department Charitable activities Magazines Charitable activities Youth and Community department Charitable activities Subscriptions and membership	2021 £ 5,960,281 126,469 142,957 3,146 72,600 299,254 153,000 4,743 1,679 67,932 6,832,061	2020 £ 3,279,735 3,076,969 1,898,807 965,318 349,201 221,857 914,368 71,644 - 448,188 11,226,087

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

5. INCOME FROM CHARITABLE ACTIVITIES – continued

Grants received, included in the above, are as follows:

Welsh Government - Eisteddfod Grants Welsh Local Government Association - Eisteddfod Grants Local and Community Councils - Eisteddfod Grants Welsh Government - Supporting Employment in the Community/Sports/Eisteddfod/Communications and Central Departments Welsh Government - Grant Scheme for National Voluntary Youth Organisations Welsh Government - Cymraeg Pob Dydd Project Welsh Books Council Local Organisations and Authorities Sports Grants Arts Council of Wales Youth Theatre - Eisteddfod Welsh Government – Other Projects Promoting Apprenticeships Scheme Welsh Government – Additional Revenue and Resilience Grants Welsh Government – International Welsh Government - Capital Grants Joseph Rowntree Grant	2021 £ 150,000 139,400 - 702,184 132,101 138,200 40,200 359,099 413,934 - 7,000 157,500 1,810,123 15,000 1,861,890 33,650	2020 £ 156,000 135,300 2,970 762,985 127,353 168,275 28,990 310,300 532,373 3,091 - 178,144 - 48,000 825,954 - 3,279,735
	5,960,281

Grants, including those for the purchase of fixed assets, have been fully acknowledged in the Statement of Financial Activities as and when due.

RAISING FUNDS

Raising donations and legacies

Staff costs Sundry costs	2021 £ 13,851 34,286	2020 £ 25,937 18,306 44,243
	48,137

7. CHARITABLE ACTIVITIES COSTS

Llangrannog and Pentre Ifan residential centre Glan Llyn residential centre Cardiff residential centre Sports department Apprentices department Eisteddfod festival and department Magazines Youth and community costs	Direct costs Support costs (See note 8) £ £ 1,507,105 42,574 1,050,200 52,278 261,470 18,872 645,687 185,232 558,568 54,755 564,650 188,090 80,717 13,583 1,236,116 343,899 5,904,513 899,283	Totals £ 1,549,679 1,102,478 280,342 830,919 613,323 752,740 94,300 1,580,015 6,803,796

The central costs of the Urdd have been allocated to the charitable activities on the basis of a percentage of income.

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

8. SUPPORT COSTS

Management £ Wages 653,128 Social security 77,429 Pensions 37,803 Repairs and renewals 7,471 Professional fees - Auditors' remuneration - Bank charges - 775,831	Finance Governance costs £ £ - 34,086 - 4,119 - 2,045 - - - 65,384 - 8,000 9,818 - 9,818 113,634	Totals £ 687,214 81,548 39,848 7,471 65,384 8,000 9,818 899,283

9. NET INCOME

Net income) is stated after charging:

Net income) is stated after charging:
	2021	2020
	£	£
Auditors' remuneration	8,000	16,500
Amortisation	164	-
Depreciation - owned assets	139,689	121,989
Rent	73,605	101,994
Loss on disposal of fixed asset	5,160	6,695

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

The charity reimbursed various trustees for general expenses (e.g. travel to meetings etc) totalling £nil during the year (2020: £615).

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

11. STAFF COSTS

Wages and salaries Social security costs Other pension costs	2021 £ 4,696,236 332,247 223,141 5,251,624	2020 £ 5,569,464 433,228 274,365 6,277,057

The average monthly number of employees during the year was as follows: Charitable activities Cost of generating funds Administration and management	2021 237 1 10 248	2020 311 1 13 325

During the year, one member of staff earned between £60,000 and £70,000 (2020: one), and one employee earned between £70,000 and £80,000 (2020: one). These figures are based on gross salary.

During the year redundancy costs of £354,869 were incurred (2020: £18,396).

Cost of Key Staff

Together with the Chief Executive the Urdd has nine heads of department who form the Senior Management Team which is responsible for managing the day-to-day activities of the charity. Total payments made to the Senior Management Team are shown below:

Gross salary Employer's national insurance	2021 £ 510,772 57,690 568,462	2020 £ 547,867 63,316 611,183

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

12. PRIOR YEAR FINANCIAL STATEMENTS

Note INCOME AND ENDOWMENTS FROM Donations and legacies 2 Charitable activities 5 Grants - Supporting charitable activities Llangrannog and Pentre Ifan residential centre Glan Llyn residential centre Cardiff residential centre Sports department Apprentices department Eisteddfod festival and department Magazines Subscriptions and membership Other trading activities 3 Investment income 4 Total EXPENDITURE ON Raising funds 6 Charitable activities Llangrannog and Pentre Ifan residential centre Glan Llyn residential centre Cardiff residential centre Sports department Apprentices department Eisteddfod festival and department Magazines Youth and community costs Total Net gains/(losses) on investments NET INCOME / (EXPENDITURE) Transfers between funds 21 Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted funds £ 549,934 24,568 3,076,969 1,898,807 965,318 349,201 221,857 914,368 71,644 448,188 82,882 67,072 8,670,808 44,243 2,919,766 2,045,720 935,425 451,940 282,706 1,308,544 109,916 860,708 8,958,968 (370,313) (658,473) 1,939,162 1,280,689 18,634,876 19,915,565	Restricted funds £ - 3,255,167 - - - - - - - 13,800 - 3,268,967 - - - - 660,940 133,144 448,441 28,990 1,078,498 2,350,013 - 918,954 (1,932,394) (1,013,440) 1,944,434 930,994	Endowment funds £ - - - - - - - - - - - 10,771 10,771 - - - - - 3,950 - - 3,950 (47,674) (40,853) (6,768) (47,621) 268,870 221,249	2020 Total funds £ 549,934 3,279,735 3,076,969 1,898,807 965,318 349,201 221,857 914,368 71,644 448,188 96,682 77,843 11,950,546 44,243 2,919,766 2,045,720 935,425 1,112,880 415,850 1,760,935 138,906 1,939,206 11,312,931 (417,987) 219,628 - 219,628 20,848,180 21,067,808

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

13. INTANGIBLE ASSETS

COST Additions At 31 March 2021 ACCUMULATED AMORTISATION Charge for the year At 31 March 2021 NET BOOK VALUE At 31 March 2021 At 31 March 2020	Computer Software £ 32,213 32,212 164 164 32,049 -	Totals £ 32,213 32,212 164 164 32,049 -

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

14. TANGIBLE FIXED ASSETS

COST OR VALUATION At 1 April 2020 Additions Disposals At 31 March 2021 DEPRECIATION At 1 April 2020 Charge for year Eliminated on disposal At 31 March 2021 NET BOOK VALUE At 31 March 2021 At 31 March 2020	Freehold property Long leasehold £ £ 14,345,018 300,000 2,016,662 - - - 16,361,680 300,000 - 22,800 - 1,500 - - - 24,300 16,361,680 275,700 14,345,018 277,200	Plant and machinery Motor vehicles £ £ 2,963,000 129,588 112,266 - (1,567,520) - 1,507,746 129,588 2,089,430 85,687 124,214 10,975 (1,562,360) - 651,284 96,662 856,462 32,926 873,570 43,901	Totals £ 17,737,606 2,128,928 (1,567,520) 18,299,014 2,197,917 136,689 (1,562,360) 772,246 17,526,768 15,539,689

The freehold property (Land and buildings) of the Urdd were professionally re-valued in 2016 at £12,733,800 by Rhys Davies MRICS, FAAV, N.Sch of R G Jones, Farmers Marts, Dolgellau. Additions subsequent to the revaluation date are included at cost. Rhys Davies MRICS, FAAX, N.Sch has confirmed that the carrying value of the assets is still in line with the previous valuation, and a full professional re-valuation will take place in the next financial year.

The cost of freehold property that would be recognised in the financial statements had they not been revalued would be £16,488,313 (2020: £14,471,651).

Leasehold buildings are included at their original cost and depreciated over the period of the lease.

The Trustees are of the opinion that depreciating the freehold property (land and buildings) would not result in an accurate representation of the said properties, this being due to the continuous investment, by way of repairs and maintenance. The Trustees acknowledge that an accounting policy not to depreciate the freehold property is a departure from the Companies Act 2006, and hence have adopted the alternative provisions therein to state assets held as freehold property on a revaluation basis. Under this basis, the Trustees are committed to ensuring that revaluations should be made with sufficient regularity to ensure that the carrying amount of the revalued fixed assets do not differ materially from that which would be determined using a ‘value in use’ basis for the residential centres and ‘fair value’ for other properties, at the balance sheet date. In addition, the carrying value of freehold properties are reviewed at each reporting period date to determine whether there is any indication of impairment. If such an indication exists, the asset recoverable amount is estimated. The recoverable amount of an asset is the greater of its net selling price and its value in use. At 31st March 2021, the Trustees are of the opinion that the Fair value of freehold buildings is currently reported value.

Detailed plans are in place for major redevelopment works at Glan Llyn and Llangrannog, such that the value of properties will warrant a further revaluation on completion of the works to ensure the accuracy of the financial statements. It is not considered practical to carry out property valuations on an annual basis due to the costs involved, but any major changes to general market values or the condition of the properties will warrant another valuation. The Trustees have not identified any indicators of impairment to the properties since the last valuation.

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

15. FIXED ASSET INVESTMENTS

MARKET VALUE At 1 April 2020 Additions Disposals Net movement of cash holding within investment Revaluations At 31 March 2021 NET BOOK VALUE At 31 March 2021 At 31 March 2020	Listed investments £ 2,734,596 239,800 (236,029) (7,563) 783,021 3,513,825 3,513,825 2,734,596	Investment Property £ 350,000 - - - - 350,000 350,000 350,000	Totals £ 3,084,596 239,800 (236,029) (7,563) 783,021 3,863,825 3,863,825 3,084,596

The majority of investments are in the UK. Any foreign investments are generally low value and held within the Canaccord Genuity investment portfolio.

The charity has investments in M&G Charifund and Blackrock Charishare representing 44.6% (2020: 49.6%) and 7.4% (2020: 7.4%) respectively of the total investment portfolio.

The market value of investments held in the Canaccord Genuity portfolio was £1,421,152 (2020: £1,092,183).

Fixed asset investments have been recognised at their market value as at balance sheet date. The investments have been revalued and any gain or loss in their value has been recognised in the Statement of Financial Activities.

Analysis of investments: Cash or cash equivalents Listed investments The cost of the investments is as follows: Historical cost of investments as at 31 March 16. STOCKS Stocks	2021 £ 53,809 3,460,016 3,513,825 2021 £ 1,326,799 2021 £ 23,483	2020 £ 61,948 2,672,648 2,734,596 2020 £ 1,464,501 2020 £ 30,641

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors Other debtors Accrued income VAT Prepayments 18. CURRENT ASSET INVESTMENTS Cash invested in bonds	2021 £ 142,391 107,683 - - 262,931 513,005 2021 £ -	2020 £ 427,970 70,520 13,394 2,482 264,493 778,859 2020 £ 896,943

Current asset investments, representing cash invested in short-term bonds, are stated at their commercial value as at the balance-sheet date.

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other loans (see note 20) Trade creditors Social security and other taxes Other creditors Deferred income Accrued expenses Payments in advance LOANS An analysis of the maturity of loans is given below: Amounts falling due within one year on demand: Other loans	2021 £ 20,020 216,252 129,071 63,418 789,639 110,848 106,531 1,435,779 2021 £ 20,020 20,020	2020 £ 74,588 177,904 106,138 131,253 439,236 193,228 220,517 1,342,864 2020 £ 74,588 74,588

20. LOANS

Other loans relate to loans to the Charity from various of the regional groups on which interest is paid at a rate of 0.5% above base rate.

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

21. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year Between one and five years	2021 £ 6,394 9,759 16,153	2020 £ 12,616 4,465 17,081

The future operating lease commitments are not included in the financial statements.

22. MOVEMENT IN FUNDS

Unrestricted funds General fund Restricted funds John and Rhys James Fund John and Ceridwen Medal Apprentices Projects Welsh Government Capital Fund Endowment funds County Cup Fund Corwen Home Fund Art and Craft Fund Glesni Evans Fund Olwen Griffiths Fund Ethleen Thomas Fund Olwen Phillips / Pam Weaver Fund Sim Davies Fund Rhian Criddle Fund Sharon Bonds Fund Pendyrus Fund Dr D Davies Fund TOTAL FUNDS	At 1/4/20 Net movement in funds Transfers between funds £ £ £ 19,915,565 1,658,251 8,674 6,800 10,000 - 5,240 - - 45,000 (45,000) - 48,000 (48,000) - 825,954 1,861,890 - 930,994 1,778,890 - 109,841 31,787 (4,041) 3,635 1,038 (196) 2,426 694 (131) 2,773 793 (150) 11,036 2,643 (389) 1,591 259 (54) 3,999 993 (176) 15,481 2,495 (531) 2,056 - 53 1,076 (18) - 13,652 2,905 (549) 53,683 11,310 (2,510) 221,249 54,899 (8,674) 21,067,808 3,492,040 -	At 31/3/21 £ 21,582,490 16,800 5,240 - - 2,687,844 2,709,884 137,587 4,477 2,989 3,416 13,290 1,796 4,816 17,445 2,109 1,058 16,008 62,483 267,474 24,559,848

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

22. MOVEMENT IN FUNDS – continued

Net movement in funds, included in the above are as follows:

Unrestricted funds General fund Restricted funds John and Rhys James Fund Sports Projects Apprentices Projects Local Councils / Institutions Grants Welsh Government Welsh Books Council Other Grants UK Government Job Retention Scheme Capital Fund Endowment funds County Cup Fund Corwen Home Fund Art and Craft Fund Glesni Evans Fund Olwen Griffiths Fund Ethleen Thomas Fund Olwen Phillips / Pam Weaver Fund Sim Davies Fund Rhian Criddle Fund Sharon Bonds Fund Pendyrus Fund Dr D Davies Fund TOTAL FUNDS	Incoming resources £ 3,334,127 10,000 413,934 157,500 498,499 1,291,608 40,200 33,650 1,910,817 1,861,890 6,218,098 4,041 196 131 150 389 54 176 531 - - 549 2,510 8,727 9,560,952	Resources expended £ (2,412,725) - (413,934) (202,500) (498,499) (1,339,608) (40,200) (33,650) (1,910,817) - (4,439,208) - - - - - - - - - - - - - (6,851,933)	Gains and losses Movement in funds £ £ 736,849 1,658,251 - 10,000 - - - (45,000) - (48,000) - - - - - - - 1,861,890 - 1,778,890 27,746 31,787 842 1,038 563 694 643 793 2,254 2,643 205 259 817 993 1,964 2,495 - - (18) (18) 2,356 2,905 8,800 11,310 46,172 54,899 783,021 3,492,040

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

22. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds (i.e. for the prior year ended 31 March 2020)

Unrestricted funds General fund Revaluation of property fund Revaluation of investments fund Restricted funds John and Rhys James Fund John and Ceridwen Medal Apprentices Projects Welsh Government Capital Fund Buildings and Equipment Fund Endowment funds County Cup Fund Corwen Home Fund Art and Craft Fund Glesni Evans Fund Olwen Griffiths Fund Ethleen Thomas Fund Olwen Phillips / Pam Weaver Fund Sim Davies Fund Rhian Criddle Fund Sharon Bonds Fund Pendyrus Fund Dr D Davies Fund TOTAL FUNDS	At 1/4/19 Net movement in funds Transfers between funds £ £ £ 16,933,679 (658,473) 3,640,359 (126,633) - 126,633 1,827,830 - (1,827,830) 18,634,876 (658,473) 1,939,162 7,662 - (862) 5,240 - - - 45,000 - - 48,000 - - 825,954 - 1,931,532 - (1,931,532) 1,944,434 918,954 (1,932,394) 139,095 (24,022) (5,232) 4,679 (790) (254) 3,124 (528) (170) 4,909 (2,092) (44) 11,369 48 (381) 1,619 26 (54) 4,120 (98) (23) 15,751 (247) (23) 2,003 - 53 1,069 (143) 150 16,575 (2,612) (311) 64,557 (10,395) (479) 268,870 (40,853) (6,768)	At 1/4/19 Net movement in funds Transfers between funds £ £ £ 16,933,679 (658,473) 3,640,359 (126,633) - 126,633 1,827,830 - (1,827,830) 18,634,876 (658,473) 1,939,162 7,662 - (862) 5,240 - - - 45,000 - - 48,000 - - 825,954 - 1,931,532 - (1,931,532) 1,944,434 918,954 (1,932,394) 139,095 (24,022) (5,232) 4,679 (790) (254) 3,124 (528) (170) 4,909 (2,092) (44) 11,369 48 (381) 1,619 26 (54) 4,120 (98) (23) 15,751 (247) (23) 2,003 - 53 1,069 (143) 150 16,575 (2,612) (311) 64,557 (10,395) (479) 268,870 (40,853) (6,768)	At 1/4/19 Net movement in funds Transfers between funds £ £ £ 16,933,679 (658,473) 3,640,359 (126,633) - 126,633 1,827,830 - (1,827,830) 18,634,876 (658,473) 1,939,162 7,662 - (862) 5,240 - - - 45,000 - - 48,000 - - 825,954 - 1,931,532 - (1,931,532) 1,944,434 918,954 (1,932,394) 139,095 (24,022) (5,232) 4,679 (790) (254) 3,124 (528) (170) 4,909 (2,092) (44) 11,369 48 (381) 1,619 26 (54) 4,120 (98) (23) 15,751 (247) (23) 2,003 - 53 1,069 (143) 150 16,575 (2,612) (311) 64,557 (10,395) (479) 268,870 (40,853) (6,768)	At 31/3/20 £ 19,915,565 - - 19,915,565 6,800 5,240 45,000 48,000 825,954 - 930,994 109,841 3,635 2,426 2,773 11,036 1,591 3,999 15,481 2,056 1,076 13,652 53,683 221,249 21,067,808
	20,848,180	219,628	-

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

22. MOVEMENT IN FUNDS - continued

Comparative net movement in funds (i.e. for the prior year ended 31 March 2020), included in the above are as follows:

Unrestricted funds General fund Restricted funds John and Rhys James Fund John and Ceridwen Medal Sports Projects Apprentices Projects Arts Council of Wales Youth Theatre Youth Officers Local Councils / Institutions Grants Welsh Government Welsh Books Council Capital Fund Endowment funds County Cup Fund Corwen Home Fund Art and Craft Fund Glesni Evans Fund Olwen Griffiths Fund Ethleen Thomas Fund Olwen Phillips / Pam Weaver Fund Sim Davies Fund Rhian Criddle Fund Sharon Bonds Fund Pendyrus Fund Dr D Davies Fund TOTAL FUNDS	Incoming resources £ 8,670,808 13,200 600 532,373 178,144 3,091 155,618 268,384 1,262,613 28,990 825,954 3,268,967 5,232 254 169 194 381 54 173 524 - - 711 3,079 10,771 11,950,546	Resources expended £ (8,958,968) (13,200) (600) (532,373) (133,144) (3,091) (155,618) (268,384) (1,214,613) (28,990) - (2,350,013) - - - (150) - - (150) (500) - (150) (400) (2,600) (3,950) (11,312,931)	Gains and losses Movement in funds £ £ (370,313) (658,473) - - - - - - - 45,000 - - - - - - - 48,000 - - - 825,954 - 918,954 (29,254) (24,022) (1,044) (790) (697) (528) (2,136) (2,092) (333) 48 (28) 26 (121) (98) (271) (247) - - 7 (143) (2,923) (2,612) (10,874) (10,395) (47,674) (40,853) (417,987) 219,628

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

22. MOVEMENT IN FUNDS - continued

Purpose of restricted funds

The endowment funds represent contributions and bequests where the contributor has noted that the money should be retained as capital. The income has been used in accordance with the terms of the endowments and included in the Statement of Financial Activities.

Buildings & equipment fund This fund represents capital grants received towards charity premises and equipment. Each year, the grants are released to the general fund, by way of a transfer, in equal annual instalments according to the rate of depreciation where appropriate. This fund was transferred to General Unrestricted funds at 31st March 2021 as it was considered that restrictions no longer apply in respect of these reserves. John & Ceridwen Hughes Medal A gift was received to be used to create and present a special annual award for the outstanding work in the youth work sector. Sports Projects These projects have been financed by Sport Wales and the Welsh Government. The money has been used to purchase equipment and appoint sports officers, including staging Gemau Cymru annually. John & Rhys James Fund An annual gift is received from the Pantyfedwen Trust and allocated to County Committees and to the Surrounding Areas to promote local Urdd Eisteddfodau. Cymraeg Pob Dydd Project A project which extends the use of Welsh as a second language outside the classroom in English-medium schools. Youth Officers Various projects which focus on informal learning/extracurricular interests outside school hours, to ensure the social use of Welsh. Youth Theatre The company offers opportunities to the youth of Wales, between 14 and 20 years of age, to perform in a musical production, partly funded by the Arts Council of Wales. Local Councils/Institutions Grants Support in funding core regional work and joint projects with other institutions. Welsh Government The main grant in supporting the core work of the Urdd, to enable us to fulfil targets in strategic areas promoting Welsh to children and young people. UK Government Job Retention Support in funding for the costs of furloughed employees. Scheme Capital Fund This represents grant funding for capital projects which remain under restriction as at the balance sheet date.

23. CAPITAL COMMITMENTS

	2021	2020
	£	£
Contracted but not provided for in the financial statements	2,929,657	416,127

At the year end, a total of £2,929,657 had been contracted to be spent on capital works and repairs (2020: £416,127).

24. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2021, nor for the preceding year.

Cwmni Urdd Gobaith Cymru

Notes to the Financial Statements - continued for the year ended 31 March 2021

25. FINANCIAL INSTRUMENTS

The carrying value of the financial assets and liabilities include:

	2021	2020
	£	£
Financial assets that are debt instruments measured at amortised cost
Fixed asset investments	3,863,825	3,084,596
Trade debtors	142,391	427,970
Other debtors	107,683	70,520
Short term investments	-	896,943
Cash at bank	4,036,497	2,079,944
Financial assets that are debt instruments measured at amortised cost
Other loans	(20,020)	(74,588)
Trade creditors	(216,252)	(177,904)
Other creditors	(63,418)	(131,253)
Deferred income	(789,639)	(439,236)
Accrued expenses	(110,848)	(193,228)
Payments in advance	(106,531)	(220,517)

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

OBJECTIVES AND ACTIVITIES

Objectives and aims

Achievements and Performance:

ActifAdref, a series of virtual sport workshops were held as live events on a weekly basis to over 4,000 primary school aged children.

Cwmni Urdd Gobaith Cymru

Report of the Trustees

STRATEGIC REPORT

Significant Events and Future Developments

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

STRATEGIC REPORT Financial Review

Financial Position

Fixed Assets

Investment policy and objectives

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

Financial Review - continued

Reserves policy

Financial and risk management objectives and policies

Going Concern

Future plans

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

Future plans - continued

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Charity constitution

Organisational structure

Report of the Trustees for the year ended 31 March 2021

Organisational structure - continued

Delegation

Recruitment and Appointment of New Trustees

Induction and Training of New Trustees

Recruitment and Appointment of New Trustees

Cwmni Urdd Gobaith Cymru

Report of the Trustees for the year ended 31 March 2021

Recruitment and Appointment of New Trustees - continued

Report on Pay and Remuneration

Diversity and Staff Involvement

Cwmni Urdd Gobaith Cymru

Report of the Trustees for the year ended 31 March 2021

Diversity and Staff Involvement – continued

Human Resources Panel

The Environment

Streamlined Energy and Carbon Report (SECR)

Methodology

UK Carbon Footprint Data

Cwmni Urdd Gobaith Cymru

Report of the Trustees

for the year ended 31 March 2021

TRUSTEES SECTION 172 STATEMENT

The Likely Consequences of any Decisions in the Long Term

The Interests of the Company’s Employees

Engagement with Stakeholders

Report of the Trustees

Engagement with Stakeholders - continued

The Impact of the Company’s Operations on the Community and the Environment

Maintaining a Reputation for High Standards of Business Conduct.

The Need to Act Fairly Between Members

Report of the Trustees

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number

Registered office

Trustees

Auditors

Bankers

Investment Managers

Cwmni Urdd Gobaith Cymru

Report of the Trustees

STATEMENT OF TRUSTEES RESPONSIBILITIES

Report of the Independent Auditors to the Members of Cwmni Urdd Gobaith Cymru

Opinion

Basis for opinion