ENGLAND
YMCA ENGLAND National Council of Young Men’s Christian Associations (Incorporated)
Annual Report & Accounts 2008/09
Contents
3
What We Do
4
Welcome from the Chair
Board of Trustees’ Report
6
YMCA England in 2008/09
13
Campaigns, Communications and Fundraising Review
14
Looking Ahead
15
Financial Review
19
Our Organisation
25
Trustees and Advisors
Independent Auditors’ Report
29
Report from PKF (UK) LLP, Registered Auditors
Financial Statements
34
Consolidated Statement of Financial Activities
35
Statutory Income and Expenditure Account and Statement of Total Recognised Gains
36
Balance Sheets
37-38
Consolidated Cashflow Statement
39-40
Accounting Policies
41-55
Notes to the Financial Statements
Annual Report & Accounts 2008/09
YMCA England
What We Do YMCA England works to support, represent and empower YMCAs all over England, helping them transform communities so that all young people can truly belong, contribute and thrive. We are part of the world’s largest youth charity, with around 45 million members in 124 countries.
What We Do
By working with YMCAs who understand local issues, the YMCA Movement in England meets the real needs of young people, supporting them in a way which is nationally significant but locally relevant. Together, we’re helping young people build a future. Because at YMCA England, we believe that every young person should have the opportunity to grow and achieve.
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YMCA England
Annual Report & Accounts 2008/09
Welcome from the Chair Welcome to YMCA England’s Annual Report 2008/09. The past year has been exciting and rewarding, yet challenging as well. Exciting and rewarding that we have increasing clarity around our role and function and challenging to enter a year of transition within a climate of economic downturn. Yet I am pleased that we have been able to deliver on many of our promises during the period. Clarity has come from a Movement-wide consultation over the last twelve months, within which we have asked YMCAs what they want from YMCA England and to identify the major issues that we need to address together. The Board of Trustees’ recommendations to this “Movement Conversation” has seen a new strategy for YMCA England being developed during summer 2009. I am thankful to Ian Green for undertaking this consultation and delighted that Ian has subsequently been appointed as YMCA England’s Chief Executive to develop and implement the strategy. I have also been impressed by the way our senior management team, staff and volunteers have risen to the challenges of the year. There have been some difficult circumstances to deal with and hard decisions to make during the period. I applaud the YMCA England team for their tireless endeavours during the year and would like to thank them on behalf of the Board of Trustees for their continued enthusiasm, commitment and dedication. I would like to pay tribute to the support that our president, Dr John Sentamu, Archbishop for York continues to give us, despite his busy schedule, providing a national profile and specifically supporting our fundraising and policy work.
Welcome from the Chair P4
I am hugely grateful for the generosity of supporters who, through a time of global recession, have demonstrated that helping young people build a future is still vitally important. They share our vision that young people can truly belong, contribute and thrive in our communities. I was thrilled to hear about one young person who’s clearly thriving, North Staffordshire’s Toni Cowans, who has experienced the YMCA as a resident,
volunteer, staff member and as a National Assembly committee member. Toni was recognised as “Young Activist of the Year” by the Sheila McKechnie Foundation, after she successfully mobilised YMCAs with her campaign to raise awareness of HIV/Aids. Toni received her welldeserved award from Gordon Brown at a ceremony at 10 Downing Street in July 2008. Another highlight of the year for me, was being able to present the first ever Insync Standards Accreditation to Liverpool YMCA at National Assembly. The Accreditation is a fitting reward for Liverpool’s provision of quality services and their commitment to continuous improvement. I am also proud that we have been able to further demonstrate our commitment to young people’s participation in our work, with young consultants being appointed to the myplace programme, residents elected onto the National Tenant’s Forum and youth editors and contributors developing the new Y-Base Magazine. The past year has provided excellent foundations for all our ambitions. At its heart, the YMCA is a relational organisation and 2008-09 has strengthened those relationships for common purpose. Looking ahead, the ability to reach our potential as a Movement is in our own hands and I am genuinely excited by the increasing cooperation across the YMCA Movement in England which will make a real difference to the lives of young people.
Tim Waldron
Board of Trustees’ Report Review of the Year
YMCA England
Board of Trustees’ Report
Annual Report & Accounts 2008/09
YMCA England in 2008/09 For 165 years the YMCA has adapted to meet the specific needs of young people and their families. From providing emergency support to young men on the front lines of World War One to working with young people caught up in the criminal justice system today, YMCAs offer help when and where young people need it most. Today the need for the YMCA in England is greater than ever:
YMCA England’s work has three objectives
•• The number of young people Not in Employment, Education or Training (NEET) has risen to just under one million;
•• To support YMCAs by promoting high standards of working, sharing best practice and fundraising on their behalf;
•• Every year thousands of young people leave home before they reach 18, many becoming homeless, sleeping rough or moving from one form of temporary accommodation to another. The breakdown of family units has been identified as the main trigger for homelessness among 16–17-year-olds;
•• To represent YMCAs to regional and national government, the media and the public;
•• The number of under-18s in custody stands at over 2,500. Statistics show that 80% of those young people will re-offend within two years; •• In the UK, 27% of children are now overweight and the number of under-18s being prescribed weightloss drugs rose 15-fold between 1999 and 2006. YMCA England supports, represents and empowers around 135 YMCAs in providing professional and relevant services to young people in over 250 communities.
Review of the Year P6
•• To empower YMCAs’ work, partnering with them to pilot new projects, and provide training opportunities for their staff and volunteers.
How YMCA England achieves this Our charitable activities fall under three headings: 1. Work with and for Member YMCAs 2. Housing and Homelessness 3. Work with and for Young People Throughout this report you will find out how we performed against the aims we set ourselves for 2008/09.
Annual Report & Accounts 2008/09
Board of Trustees’ Report
YMCA England
Our Aims and Achievements 1.  Work with and for YMCAs YMCA England exists to support, represent and empower member YMCAs. By doing this, we are making sure young people all over the country receive relevant, meaningful help when and where they need it most.
The YMCA Movement in England consists of around 135 autonomous YMCA charities, which affiliate to YMCA England. In return, we provide these member YMCAs with expert advice and guidance in all areas of their work. We do not dictate to our members how and where they operate, but we do nurture a Movement which flourishes through great relationships, meaningful partnerships and a common vision for young people. We aimed to promote sustainability in member YMCAs through development and fundraising, and monitor progress. YMCA England is committed to building capacity in member YMCAs so they can provide world class services to young people in their communities. This year, we achieved this in a variety of ways, such as providing advice and guidance on strategic planning and delivery, fundraising directly on behalf of member YMCAs and sharing expertise so YMCAs can strengthen their own sustainability.
We aimed to strengthen our links with member YMCAs by offering fundraising advice and services. This year, YMCA England launched a fundraising and marketing forum enabling staff from member YMCAs to share fundraising ideas and engage in joint planning. This forum also gave YMCA England staff the opportunity to respond to the needs of member YMCAs, providing fundraising advice and training where required. By facilitating strong networks between member YMCA staff, we have been able to share knowledge and best practice, and develop a more united approach within the YMCA Movement. Outside fundraising, we also made it a priority to enable member YMCA staff to gain from being part of the YMCA Movement through networking events, regional conferences, meetings of Chief Executives and Chairs, and special interest groups.
Review of the Year
We paid particular attention to improving standards of governance at member YMCAs, providing them with board development tools, trustee recruitment and induction advice, support for Chairs and coordinating vision and strategy events.
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YMCA England
Board of Trustees’ Report
We aimed to increase the size of our supporter base and reach a younger more diverse audience.
We aimed to use our YMCA shops to create a stronger profile within local and regional media.
Only through the generous donations of our supporters are we able to continue supporting the incredible work of the YMCA Movement in England. This year, we aimed to increase the number of individuals donating to our work to enable us to reach more vulnerable young people in need of support.
YMCA England’s national network of shops provides an ideal opportunity to generate vital funds and raise awareness of our work among the general public. This year, we aimed to strengthen this public profile by targeting the local and regional media. We now run over 130 YMCA shops in England and Wales. During the year we successfully increased our media coverage, generating 71 press articles featuring YMCA England and our charity shops.
Our Direct Marketing Team performed well this year, increasing our supporter base by 15.3% during the key fundraising months of November 2008 through to March 2009. Efforts to improve the age diversity of our supporters were also a huge success. In particular, our Roomsponsor scheme encourages supporters to sponsor a young person’s stay in a YMCA hostel for £10 a month. In addition, we launched a new Caring Gifts range in November 2008, enabling supporters to buy a gift for their loved ones while contributing to our work in a creative way. Gifts included a street survival kit worth £15, vocational training for a troubled teenager worth £50 and a share in a minibus with disabled access for £750. These innovative approaches to marketing succeeded in attracting a younger and more varied audience, allowing us to provide direct financial support to ten member YMCAs.
Review of the Year P8
Annual Report & Accounts 2008/09
We aimed to complete a self assessment of YMCA England for all core standards within the Insync framework and develop our action plan to achieve accreditation in 2010. In order to promote excellence within the YMCA Movement, YMCA England developed an accreditation process called Insync Standards in 2004. YMCAs are encouraged to complete a range of core and service standards to ensure the highest quality of service delivery. YMCA England also aspires to achieve accreditation, and made excellent progress in this area during the year. A successful interim assessment on the governance, client focus, catering and working with young people standards was completed. The target date for Insync accreditation has been set for 2011.
Annual Report & Accounts 2008/09
Board of Trustees’ Report
YMCA England
Our Aims and Achievements 2. Housing and Homelessness YMCA England is a registered social landlord, with 30 housing schemes (approximately 1000 bed spaces) around the country. These are managed for us by member YMCAs. In addition, we provide expert guidance to member YMCAs running their own housing schemes, which amount to an additional 6000 bed spaces in England. Providing housing solutions which adequately meet the needs of our residents is our highest priority. We recognise that homeless young people require more than just a bed; they need holistic practical and emotional support in order to get back on their feet. That’s why you’ll find a huge range of services available to YMCA residents. From cooking and budget-management classes to counselling, recreational activities and work experience schemes.
We aimed to work towards ending inappropriate use of Bed & Breakfasts and other unsuitable accommodation for young people.
We aimed to improve performance monitoring and information for residents, and involve residents in management and governance both nationally and in our managed schemes.
The funding was partly used to establish six YMCA action learning centres where YMCA best practice solutions could be trialled and learning shared with other providers. In the 18 months following their launch, the YMCA action learning centres helped 1,396 teenagers, providing advice, education, mediation and housing solutions.
We also launched a National Tenant’s Forum, giving residents in our managed schemes the opportunity to provide feedback and ideas on how our housing services can be improved. We are dedicated to making sure our residents are kept informed about our performance and activities. In March 2009, we launched Y-Base, a magazine for young people living in YMCA England accommodation. Using the strapline ‘created for you, by you’, we are making sure young people take the lead on their magazine, recruiting a youth editorial team and youth editor to manage the magazine’s production, and giving YMCA England residents the opportunity to write articles for each issue. YMCA England’s Movement Communications Team supports the young people throughout this process.
Following months of interviews and research, YMCA England released a report on youth homelessness in December 2008, which was also funded by DCLG. The report, Breaking it Down: Developing Whole-Family Approaches to Youth Homelessness, identifies ways in which services can better support the parents of homeless teenagers. On the back of the report, YMCA England held two national conferences enabling member YMCAs, local authorities and other agencies to explore options for reducing youth homelessness. In close cooperation with DCLG and Centrepoint, YMCA England also established a national youth homelessness website at www.communities.gov.uk/ youthhomelessness, which offers advice, guidance and examples of best practice for member YMCAs and other external organisations.
Review of the Year
The needs of young people are our primary concern, and that’s why we aimed to engage residents more in our housing work. This year, we co-opted two young residents onto our Development and Housing Committee, giving them a say in strategic decision making which affects how they live.
We were successful in obtaining funding from the Department of Communities and Local Government (DCLG) for a joint initiative with Centrepoint to tackle the issue of teen homelessness and the scandal of young people being housed inappropriately in bed & breakfast accommodation.
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YMCA England
Board of Trustees’ Report
We aimed to develop a suitable stock condition database and evaluate the effectiveness of responsive maintenance at our managed schemes. We are committed to making sure our housing facilities are kept in a good state of repair, ensuring our residents enjoy a comfortable stay at the YMCA. We understand that for many young people who have nowhere else to go, having a well-equipped, safe environment is incredibly important. This year, we commissioned a database detailing the conditions of all our managed schemes, and are using this information to create a programme for carrying out repairs over the next 30 years. Review of the Year P10
Our work in evaluating how responsive we are to making repairs is still ongoing, but a resident survey for 2008 indicated that 95% of urgent and routine repairs were completed within target timeframes. In addition, 99% of respondents were satisfied with the quality of our repairs service.
Annual Report & Accounts 2008/09
We aimed to make further bids to the Tenants Services Authority and other funding bodies, and with YMCA England acting as developer, develop and project manage schemes for member YMCAs. We secured Homes and Communities Agency (HCA) grants worth ÂŁ2,431,000 to help remodel housing facilities at Halton and Slough YMCAs. In addition, we secured funding to support new capital developments at Bournemouth, Bridgwater, Crewe, North Staffordshire and Thames Gateway YMCAs. We also continued to refine the way we collect and monitor our performance information and developed an internal benchmarking system across our YMCA managed schemes.
Annual Report & Accounts 2008/09
Board of Trustees’ Report
YMCA England
Our Aims and Achievements 3. Work with and for Young People Young people have been at the heart of the YMCA’s work since our inception 165 years ago. Since then, the YMCA has learnt to adapt in accordance with the specific needs of young people in their local communities. In England, the YMCA’s work covers seven key areas: housing and homelessness; sport, health, exercise and fitness; crime and safety; education and skills; money and work; citizenship and personal development, and parenting and family.
We aimed to increase the capacity of the YMCA Movement in England to work with young people within the justice system. As more and more young people get caught up in the criminal justice system, the YMCA has responded with an innovative approach to tackling youth crime. In addition to working with young people already in custody, the YMCA supports young people on their release, and undertakes preventative work for young people at risk of offending or re-offending. We are also passionate about challenging the perception of young people with the public, media and government, recognising that we aren’t dealing with problem young people, but young people with problems.
This year, our team of advisors provided expert support, guidance and advice to member YMCAs developing work with young people caught up in offending. We also developed new resources to further the work of member YMCAs in this area, which included a new website at www.osu.ymca.org.uk. Following the signing of a Memorandum of Understanding between the YMCA and the Youth Justice Board in 2007, we successfully facilitated the development of closer partnerships between member YMCAs and their local Youth Offending Services.
Review of the Year
Through our Working with Young People and Offender Services Units, YMCA England supports member YMCAs in delivering their work with and for young people.
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YMCA England
Board of Trustees’ Report
We aimed to conclude our extended schools mapping exercise and design plans to take forward its findings. As part of its Every Child Matters (ECM) agenda, the government has set out a core offer of services that all children should be able to access through schools by 2010. With countless projects already in place around the country, we recognised the YMCA’s potential role in helping the government achieve this ambitious agenda. YMCA England’s BEST (Bridging Extended Services Together) project therefore aims to support member YMCAs who are currently delivering or looking to deliver extended services in their area. This year, we successfully concluded a mapping exercise of extended service provision within the YMCA, and subsequently developed a toolkit and website to support YMCAs in developing this area of work. YMCA England also coordinated a series of regional conferences around the country, facilitating networking opportunities and sharing best practice to ensure YMCAs are delivering the highest quality extended services in their communities.
Review of the Year P12
Annual Report & Accounts 2008/09
We aimed to engage with over 40 young people at our ‘Claim Your Voice’ training residentials. We believe that all young people should have the skills and confidence they need to speak up about the things that matter to them. Our Claim Your Voice project encourages young people from around the YMCA Movement to learn how they can engage in political processes. This year, we beat our target by 250%, sending over 145 young people on our Claim Your Voice training courses where they gained valuable skills in public speaking and lobbying. In addition, 30 young people agreed to become democracy champions, leading discussions on topics that matter to young people in their areas. But our youth involvement successes didn’t stop there. The YMCA also took a leading role in myplace, a multi-million pound government programme to deliver world class places for young people. As part of a consortium, YMCA England won a myplace national support contract to assist member YMCAs and other successful myplace projects achieve youth participation. In response to this, YMCA England hired nineteen young consultants, recognising that those best-placed to advise on youth participation are the young people themselves. In total, eight YMCAs were awarded £30 million in funding to develop world class youth facilities around the country.
Annual Report & Accounts 2008/09
Board of Trustees’ Report
YMCA England
Campaigns, Communications and Fundraising Review In name, the YMCA is one of the world’s most recognised not-for-profit brands. At YMCA England, our challenge is to take that recognition further, ensuring the general public are aware of the incredible impact we make on the lives of young people and their communities.
Media Relations This year, over 2,800 articles were published in the media about the YMCA. YMCA England continued to support member YMCAs with their media strategies and regional coverage. YMCA England also provided media training to a number of YMCAs and YMCA staff to better equip them when speaking to the media about the work of the YMCA. At a Fundraising and Communications Conference for YMCA staff, YMCA England also provided essential media training to YMCA communications specialists. Online Communications With a new Communications Team in place, YMCA England worked hard to build our public profile. In particular, we developed a strong presence on various social networking sites, including Facebook and Twitter, in an effort to build more two-way
dialogue around our work and engage with our supporters in a creative, cost-effective way. YMCA England also manages 15 additional websites for YMCA England departments and member YMCAs. Fundraising Along with many other charities, we entered a challenging economic period in 2008, which has made fundraising particularly difficult. However, the rapidly growing number of young people Not in Employment, Education or Training (NEET), which currently stands at around 1 million, demonstrates that the need for our members’ services is greater than ever. Our Fundraising Team worked with 14 YMCAs during the year, providing guidance and advice on the development of their fundraising plans; assisting in the recruitment of fundraising staff and continuing to provide ongoing mentoring support. We also raised money directly for projects in 15 YMCAs across the country, including detached youth work, capital appeals, a project supporting teenage mums, and a project working with young people at risk of offending. Following requests from fundraisers at member YMCAs, YMCA England developed a Fundraisers’ Forum, enabling likeminded colleagues to share ideas and develop new initiatives to raise money for local projects and to increase the profile of the YMCA as a whole. Eight fundraisers met for the first time in September 2008, and the forum has since grown to 18 fundraisers representing 14 YMCAs. In April 2008, 26 runners took to the streets for the Flora London Marathon, raising over £33,000 for the YMCA’s work. In addition, nine additional runners completed the Great North Run in aid of the YMCA, raising almost £2,000.
Review of the Year
Campaigns This year, we continued to grow the YMCA’s profile, particularly around the theme of youth justice. Through YMCA England and Y Care International’s joint campaign, Youth Justice in Action, we accompanied Daniella Abbate, a 20-year-old resident from Kingston & Wimbledon YMCA, to Geneva, for two weeks of intensive lobbying at the United Nations. The team of representatives, which also included young people from Honduras, Ireland, Sierra Leone and South Africa, received training in lobbying techniques, before meeting with their individual country’s delegates to share their personal experiences and to advocate for changes to justice systems around the world. And incredibly, with our help, these five young people from the YMCA were able to successfully change a UN resolution on juvenile justice, which included language on the importance of rehabilitation and reintegration for former child offenders.
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YMCA England
Board of Trustees’ Report
Annual Report & Accounts 2008/09
Looking Ahead Strategic Planning We will complete our consultation with the YMCA Movement to formulate a new strategy for YMCA England to be implemented from April 2010. Our aims for 2009/10: Work with and for YMCAs We will help YMCAs become more sustainable by encouraging wider collaboration, exploring approaches to peer support and developing organisational ‘health monitoring’ tools. We will develop more opportunities for training and networking within the YMCA Movement. We will coordinate and facilitate a national fundraising event on behalf of participating YMCAs. We will transfer the management of YMCA England prison projects to local YMCAs who are best-placed to meet the needs of young offenders and exoffenders in their communities. We will continue to seek funding on behalf of YMCAs to improve the services they offer to young people and their communities. Housing and Homelessness We will host a National Residents’ Conference for young people drawn from our managed schemes, to deliver a blend of consultation, training and development opportunities. We will develop a national training programme to meet the needs of member YMCAs with accommodation. We will continue to seek funding to support the development of new and remodelled YMCA services and accommodation. Review of the Year P14
Work with and for Young People We will promote the development of programmes and services for young people by supporting member YMCAs and YMCA England staff working with young people locally, regionally and nationally. In particular, we aim to successfully deliver our annual targets for the BEST, Still Aiming High, Claim Your Voice and myplace projects.
We will coordinate and train YMCA England’s myplace Young Consultants to successfully support projects around the country. We will develop meaningful youth participation within YMCA England and the Movement, through: •• The completion of a YMCA England Youth Participation Strategy •• Involving young people in high profile external and Movement meetings, conferences and training sessions and developing tools and resources to enable meaningful participation in such events •• Supporting and providing training to 200+ young people, enabling them to engage in decision making in their organisations. To help us achieve these aims: We will continue to invest in the development of our staff, strengthening our ability to attract and retain a committed, diverse and talented team. We will develop our information technology systems to encourage better data exchange. We will manage our finances in order to maximise the effectiveness of our expenditure. We will improve internal and external communications to maximize fundraising opportunities and ensure clarity about our work.
Board of Trustees’ Report Financial Review
YMCA England
Board of Trustees’ Report
Annual Report & Accounts 2008/09
Format of Accounts As a Registered Social Landlord, YMCA England is governed by the regulations of the Housing SORP 2008 (Statement of Recommended Practice) and the Accounting Requirements for Registered Social Landlords (General Determination 2006). As a leading UK charity, our Board of Trustees has chosen to follow the Charities SORP 2005 (Accounting and Reporting by Charities), so long as it does not conflict with the Housing SORP. As a company limited by guarantee, we must follow the Companies Act 1985 and applicable accounting standards. To meet the terms of this act, we have prepared a separate Income and Expenditure account. To comply with the Housing SORP and the Accounting Requirements of Registered Social Landlords, this has been configured to separate the performance of housing and non-housing activities. Consolidation In these accounts we have brought together the results of YMCA England with our four connected subsidiary charities:
•• Trusts that share our aims and objectives, which are added to the YMCA England figures on the financial statements and include the subsidiary charities listed above;
•• Dunford House Trust, which owns Dunford House;
•• Where YMCA England has been appointed to act as sole Trustee of a charity and we look after its assets. These are included in the financial statements as part of the restricted Trust and Association funds in note 14;
•• Douglas Wood Charity, which provides funding for agricultural training activities; •• The YMCA Trust Fund (known as The Movement Trust Fund), which provides grants and loans to YMCAs;
Financial Review P16
•• The Rochester YMCA Trust Fund, the monies (capital and revenue) of which are to be used for altering or extending YMCA functional property in Kent and Sussex.
•• Where we have been appointed to act as Trustee but we have no financial relationship. This is usually because a YMCA cannot hold title deeds itself and YMCA England holds them as trustee. As these are not the equitable property of YMCA England, we do not include them in the financial statements.
Our three subsidiary trading companies are described in note 7 to the accounts.
Funds and Reserves We have various funds available to finance our work:
In order to prevent a tax charge arising in the charity, subsidiary trading companies which Gift Aid their surpluses to YMCA England are required. Their individual performances are considered to be satisfactory, given the operating environment. Over time several trusts and funds have come under the stewardship of YMCA England. Usually these were for buildings or trusts with particular objectives, and most were not significant and have subsequently ceased to exist. However, there are three groups of trusts that we continue to look after:
Unrestricted Funds These are funds that the Board is free to use to support our charitable work. Some of these funds are held in the form of fixed assets (land, buildings and equipment) that we do not currently intend to sell. The market value of these fixed assets is not readily available.
Board of Trustees’ Report
Movement in Unrestricted Funds during the Year Following the receipt of an exceptional legacy of £870,000 in 2007/08, we budgeted for an outflow of resources of £477,000 for 2008/9. The actual performance was an outflow of £1,439,000 including losses on investments of £829,000. The result was disappointing but reflected a slight fall in individual giving as a result of the economic climate. Free Reserves Having identified key areas of risk, YMCA England’s Board of Trustees holds sufficient free reserves accordingly, to provide financial stability if our income levels or financial performance changes. The Board’s target for free reserves is between three and six months of our annual unrestricted income as assessed for risk (the likely variation in the level of our future income). With our current activity, this is equivalent to free reserves of between £1.2 million and £2.5 million. At 31 March 2009 free reserves were just under £1.3 million (2008: £2.1 million).
YMCA England
•• The Rochester YMCA Trust Fund, which must be used to alter or extend YMCA properties in Kent and Sussex; •• Trust and Association funds – these are funds we hold on behalf of YMCAs that have closed or when we hold assets on behalf of a specific Trust. Movement in Restricted Funds During the Year Restricted funds decreased by £326,000 during the year of which £375,000 was due to investment losses. Expenditure on projects completed by our Offender Services Unit during the year has resulted in a reduction in our restricted funds for our prisons work leaving a balance of £289,000 to be carried forward to 2009/2010. Birchwood YMCA closed during the year and £135,000 (net) was transferred to YMCA England as a restricted fund to meet the pension liabilities of past staff members.
We expect this reserves position to be broadly stable in the coming year as we meet the additional payments on the pension scheme, however in light of the national economic uncertainty and the unpredictability of some of our income streams, expenditure is being tightly managed to minimise the impact of any significant income falls.
The Board considers that we have enough assets to meet obligations as they arise, on both the restricted and unrestricted funds.
Restricted Funds While still meeting our wider objectives, we have some funding that has restrictions on how it can be spent.
Financial Review Income and Expenditure for the year are set out in detail in the Statement of Financial Activities (SoFA) on page 34.
Our main restrictions are: •• Dunford House, which has its own Trust. All surpluses generated by the work of Dunford House are added to the Trust; •• Movement Support, which are monies given to us to support specific activities either at local YMCAs or within YMCA England, such as our work in prisons; •• Capital projects, which is made up of assets bought from specific fundraising activities. The majority of these funds have been transferred in prior years; •• The Movement Trust Fund, the Hartwoodside Award and the Douglas Wood Charity, these funds provide grants and loans for specified purposes;
The Movement during the year within each of our restricted funds is described in more detail in note 14 of the accounts on page 53.
Income Over recent years, YMCA England, in consultation with the YMCA Movement, has taken the decision to streamline its operations to ensure our primary focus is to support, represent and develop our member YMCAs and not engage directly in service delivery. For this reason, the buildings and operations of our national centre at Lakeside were sold to Fylde Coast YMCA, resulting in an expected decrease of £1.6million in total income from 2007/8 to £19.5million. This figure was also impacted by a fall in legacy income following the receipt of an exceptional legacy in the prior year. Despite the economic downturn, our charity shops, many of which are operated under profit share arrangements with member YMCAs, flourished, increasing their turnover by nearly 20% on the previous year. Sales in charity shops now account for over 41% of total income for YMCA England.
Financial Review
Annual Report & Accounts 2008/09
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YMCA England
Board of Trustees’ Report
Expenditure Expenditure on charitable activities has, as expected, fallen by £1.2million following the sale of the YMCA national centre at Lakeside, but has risen in terms of housing management, legal support, our prisons work and grants to member YMCAs. In order to scale up our activities in the future, we invested an additional £561,000 in recruiting new donors. In addition, over £200,000 has been invested in information technology, financed from the sale of investments. Despite an increasingly challenging economic environment, we distributed over £500,000 to member YMCAs to support their work with and for young people. This figure was supplemented by the broad range of additional services provided for them by YMCA England departments. Grant Making Policy The Movement Trust Fund administers three funds from which grants are made: •• The YMCA Trust fund provides grants to YMCAs in England or Wales to start new projects; •• The Hartwoodside Award gives grants to YMCAs to help disabled staff or volunteers to take part in activities such as training courses or conferences; •• The Douglas Wood charity gives grants to young people to train in agriculture, horticulture, farming or other similar activities; In addition, the Rochester YMCA Trust Fund gives grants for altering or extending YMCA property in Kent and Sussex. This trust fund is managed by the trustees of the South East Regional Trust Fund. Investment Policy and Performance Under its Memorandum and Articles of Association, YMCA England has the power to make any investment which the Board sees fit. However, the Board of Trustees has stated that our funds should not knowingly be invested in companies that: Financial Review
•• Are major arms producers; or •• Derive significant income from the production or distribution of pornography; or •• Derive more than 10% of their turnover from the production or marketing of tobacco products; or •• Provide loans to the general public at high rates of interest and where repayments are collected weekly.
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Annual Report & Accounts 2008/09
The objective of our investment policy is to achieve a balance between current income and longerterm capital growth. The overall aim is to produce a return over the long term of 4% per annum in real terms. Our unrestricted investments are managed on a discretionary basis by external investment advisors and performance is monitored against a benchmark of charity portfolios. Our investment managers must take social, environmental and ethical considerations into account when deciding to invest our funds and for exercising the rights attached to our investments. We have instructed our investment managers to vote through Research Recommendations Electronic Voting (RREV), on the basis of the fund managers’ corporate governance approach and accepting the recommendations of RREV wherever possible. Our unrestricted funds asset allocation is as follows: Type of asset
Benchmark
At 31 March 2009
Government stocks
30%
31%
Equities (UK)
35%
33.6%
Equities (non UK)
15%
20.4%
Property and others
15%
12.6%
Cash
5%
2.4%
Due to the very poor investment climate, the average total investment return (capital plus income) was - 20.7%. This performance was slightly below the benchmark however the investment managers have performed well in prior years. The restricted investments are held in a portfolio of common investment funds. The average total investment return was -14.2%. The Board considers that the performance of the investment managers was satisfactory in the circumstances.
Public Benefit Statement The Board has considered the general guidance on public benefit issued by the Charity Commission, has taken due regard of that guidance and is satisfied that the charity’s activities do provide wider public benefit.
Board of Trustees Report Our Organisation
YMCA England
Board of Trustees’ Report
Annual Report & Accounts 2008/09
Structure, Staff and Governance The Role of YMCA England The first YMCA was founded by George Williams in 1844. YMCA England was established in 1882 and registered as a charity on 24 September 1962. YMCA England is a company limited by guarantee, a registered social landlord and a registered charity governed by its Memorandum and Articles of Association. A Worldwide Movement of YMCAs Each YMCA is an individual, self-governing charity that affiliates to YMCA England. Through this affiliation, member YMCAs become part of the YMCA Movement in England, and part of the worldwide alliance of YMCAs. Organisation Structure YMCA England has two offices in London where the majority of our staff are based. There are additional offices across England, and a further team working at YMCA Dunford House in West Sussex. A small group work directly with young people and are based in HM Prisons. Over 310 staff plus approximately 800 volunteers also work from our nationwide network of 137 charity shops. Our operations are organised into departments, of which the main ones in place during the year under review were: •• Chief Executive’s Office (including the Company Secretary and Standards Unit) supports the Board and coordinates the activities of YMCA England. The Standards Unit promotes and develops YMCA Insync Standards across the Movement to ensure that the services and support offered by YMCAs is of the highest quality
Our Organisation P20
•• Development and Housing – supports Member YMCAs in the development and management of social housing and homelessness projects •• Finance and Central Services (including Legal and Constitutional Affairs) – provides support for Member YMCAs on all aspects of charity governance as well as providing internal services to ensure that the charity operates efficiently and meets regulatory requirements
•• Fundraising (including Shops) – raises funds for YMCA England and the YMCA Movement as well as providing fundraising advice and support to YMCAs •• Movement Communications - Manages the YMCA brand and develops communications channels including publications and email newsletters for both member YMCAs and YMCA England. The unit manages the YMCA Movement website, develops websites on behalf of member YMCAs and manages social media channels for YMCA England •• National Centre – YMCA Dunford House is a residential centre that offers, training, conference and support facilities, and other programmes. The operations of YMCA Lakeside, a former National Centre, were sold to Fylde Coast YMCA with effect from midnight on 31 March 2008 •• Offender Services Unit – supports YMCAs in delivering their work for young people involved in the criminal justice system •• Policy, Media and Research – raises the public profile of the YMCA, influences decision makers and provides media support to Member YMCAs •• Regions – provides support, advice and guidance to YMCAs in areas such as governance, strategic planning, funding, networking and leadership development •• Working with Young People Unit – builds capacity within YMCAs to deliver services to young people, with particular emphasis on raising their profile, sharing best practice, facilitating networks and encouraging and promoting youth participation and leadership
Board of Trustees’ Report
Staff and Volunteers YMCA England relies on the skills and dedication of our staff in England. We also owe a huge debt of gratitude to the efforts of our volunteers, whose energy and commitment is vital to our work. The average number of staff employed by YMCA England during 2008-09 was 448. This was exactly the same as in 2007/08 (see note 3.5 for more details). Our volunteers make an enormous contribution to our work. The majority are based in YMCA shops around the country, while others are involved in fundraising, raising awareness of our work at public events and contributing to our governance on our Board or committees. In December 2008 we launched a survey to all YMCA England staff members, giving them the opportunity to provide constructive feedback on their working environment. The senior management team and other managers have incorporated actions arising from the results of this survey into the 2009/10 business plan. Equality, Diversity and Inclusion Inclusiveness is fundamental to the ethos of the YMCA Movement. As part of that Movement, we have a wholehearted commitment to welcome people of other faiths and those of none, linked to a confident identity as a Christian faith-based organisation. This includes ensuring that diversity is reflected strongly within our structures and that the services and activities managed by YMCA England are designed to provide equal opportunities. An equality, diversity and inclusion strategy was approved by the Board in September 2008 for implementation from 1 October 2008. This involves the equality impact assessment of our policies and processes, developing training and learning opportunities for our staff and volunteers, and consulting many of our stakeholders on how we are performing. The Trustees appointed a Board diversity champion in April 2009.
YMCA England
Employment of Disabled Persons We operate an equal opportunities employment policy. In particular, we give full and fair consideration to applications for employment made by people who are disabled having regard to their particular aptitudes and abilities. Where possible, we continue the employment of, and arrange appropriate training for, employees who have become disabled during the period they were employed. People who are disabled are treated in the same way as other employees when training, career development and promotion are being considered. Full details of these and our other policies are available on request from: YMCA England 640 Forest Road London E17 3DZ. Risk Management and Internal Controls YMCA England operates a risk management process in order to ensure the appropriate steps are taken to mitigate risk. The Board of Trustees is responsible for safeguarding the assets of the charity and to provide reasonable assurance that: •• The charity is operating efficiently and effectively •• Its assets are safeguarded against unauthorised use or disposition •• Proper records are maintained and financial information used within YMCA England or for publication is reliable •• The charity complies with relevant laws and regulations The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss.
Our Organisation
Annual Report & Accounts 2008/09
P21
YMCA England
Board of Trustees’ Report
They include: •• A strategic plan and budget approved by the Board •• Regular consideration by the Board of financial results, variances from budgets and non financial performance indicators •• Delegation of authority and segregation of duties •• Identification and management of financial risks by the Board and senior management The Finance and Audit Committee is responsible for monitoring the effectiveness of any internal and external audit and for reviewing our risk management processes. The Board operates a formal risk management process to assess business risks and implement risk management strategies. This involves identifying the types of risks we face, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of managing the risks. As part of this process the Board receives regular reports detailing major risks; approves plans for the implementation or enhancement of procedures and policies where these are required; and otherwise ensures that appropriate steps are being taken to manage the key risks. Approved actions are implemented by senior managers who are accountable to the Board. The current most significant risks are: •• Pension scheme liabilities •• The impact of the economic downturn on fundraising and grant income
Our Organisation P22
•• Not completing the change process to align our strategic objectives with the needs of member YMCAs for greater effectiveness.
Annual Report & Accounts 2008/09
Governance In 2008/09, YMCA England’s Board of 20 Trustees guided YMCA England in its work and development. Trustees serve for a four-year term and may be re-elected for another four years. Once a Trustee has served his or her term, they must wait for a year before they can stand for re-election. We hold elections to fill vacancies once a year. In 2008/09, five Trustees were formally appointed to the Board, two of which were appointed after serving as cooptees. In addition, two Trustees resigned and three retired. The Board of Trustees had 7 committees in 2008/09: 1. The Archives Group monitors the management and development of the archives of YMCA England and the YMCA Movement in England, which are housed at the University of Birmingham 2. The Constitution Committee provides advice on the governance of YMCA England and of the Movement 3. The Development & Housing Committee oversees the management and direction of the development work and housing of YMCA England. Following a successful recruitment process during 2008 two YMCA England residents now sit on the committee and input into its decisions 4. The Dunford House Committee monitors the efficient use of financial and human resources, and provides guidance and support to the senior management of the National Centre
Annual Report & Accounts 2008/09
5. The Finance and Audit Committee oversees the management and direction of the finances of YMCA England, monitors the effectiveness of internal and external audit and reviews the charity’s risk management processes. Key financial decisions are submitted to the Finance and Audit Committee for consideration 6. The Human Resources Committee exercises the governance responsibilities of the Board in respect to its role as employer of YMCA England staff 7. The Standards Steering Group directs and oversees the ongoing development of YMCA Insync Standards The Lakeside Committee provides guidance and support to the senior management of the National Centre at Lakeside. From 1 April 2008 this committee reported to Fylde Coast YMCA. All the above committees have terms of reference and meet regularly.
Board of Trustees’ Report
YMCA England
Board members induction and development We hold an induction session for all new members of the Board and arrange for existing trustees to mentor new members, particularly offering help to support them with the papers and process of their first Board meeting. During the last year development sessions were held for all trustees on issues such as governance, our work with offenders and the implementation of YMCA Insync standards. At its Board meeting on 4 July 2009, the Board considered the impact of the Economic Downturn on YMCA England with reference to a Charity Commission checklist issued in June 2009 and identified actions to be taken forward. The Board of Trustees and the Constitution Committee is currently carrying out a comprehensive governance review and will use the results of that review to become more effective and to inform ongoing training and development programmes for Trustees.
Our Organisation
In April 2008, David Bedford stepped down as Chair and Tim Waldron was elected by the Board to succeed him. At the Annual General Meeting in 2008, Linda Sharpe stepped down as Vice-Chair, as did our Honorary Treasurer, Chris Poulard. Juno Hollyhock was elected as Vice-Chair on 26 April 2008. Roger Mills-Hicks was appointed Honorary Treasurer on 28 March 2009.
P23
YMCA England
Board of Trustees’ Report
Statement of the Board of Trustees’ Responsibilities The Board of Trustees is responsible for preparing the report of the Board and the financial statements in accordance with applicable law and regulations. The Board is also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable it to ensure that the financial statements comply with the Charities Acts, the Companies Act 1985 and the Housing Associations Act 1996. Company law requires the Board to prepare financial statements for each financial year. Under that law the Board is required to prepare the financial statements in accordance with UK GAAP (UK accounting standards and applicable law). The financial statements are required to give a true and fair view of the state of affairs of the company and the group and of the incoming resources and application of resources of the group, including its income and expenditure, for that period. In preparing these financial statements, the directors are required to: •• Select suitable accounting policies and then apply them consistently; •• Observe the methods and principles in the Statement of Recommended Practice (SORP), Accounting by Registered Social Landlords issued by the National Housing Federation; •• Make judgments and estimates that are reasonable and prudent;
Our Organisation P24
•• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and •• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
Annual Report & Accounts 2008/09
The Board is responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Board is responsible for the maintenance and integrity of the company and financial information included on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The members of the Board of Trustees who served during the year, together with the Chairman, Vice Chairman, Honorary Treasurer and Senior Management Team are listed on p26. Auditors A resolution for the reappointment of PKF (UK) LLP will be proposed at the forthcoming annual general meeting. Each of the Board members (who are also trustees and directors of YMCA England) has confirmed that so far as they are aware, there is no relevant audit information of which the auditors are unaware, and that they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. Approved by the Board of Trustees on 20 September 2009 and signed on its behalf by
Tim Waldron Chair
Board of Trustees’ Report Trustees and Advisors
YMCA England
Board of Trustees’ Report
Annual Report & Accounts 2008/09
Trustees and Advisors President:
Dr. John Sentamu, Archbishop of York
Vice-presidents:
Colin Williams Professor Clyde Binfield OBE2 Richard Palmer OBE (died August 2008) Chris Poulard (appointed 21 November 2008)1 Val Wallis MBE2
Board Members:
Trustees and Advisors P26
Chairman:
Tim Waldron (elected 26 April 2008)1, 3 David Bedford (resigned 8 April 2008)1
Vice-Chairs:
Juno Hollyhock (elected 26 April 2008) Linda Sharpe (retired 21 November 2008)2
Honorary Treasurer:
Roger Mills-Hicks (appointed 28 March 2009)1 Chris Poulard (retired 21 November 2008)1
Members:
Arkle Bell (appointed 26 April 2008) Delroy Beverley4 Matt Bird (Co-opted – appointed 21 November 2008) Tracy Blandford Diana Bradley (appointed 26 April 2008)2 Charles Chadwick (resigned 5 July 2008) Robert Cox Jennie-Marie Glover (co-opted - retired 21 November 2008) Martyn Haley4 Ajith Lekshmanan (retired 21 November 2008)3 Anne Linsey (appointed 21 November 2008) Simon Marcelli3 Trevor Morgan1 Paul Plumley (resigned 21 November 2008)2 Chris Poulard (co-opted 21 November 2008 and resigned 24 April 2009)1 Steve Clay (appointed 14 June 2008) John Rockliff1 Tim Sweeting4 Michael Talbot2 Harold White (retired 21 November 2008)5
Membership of committees: 1 Finance and Audit 2 HR Committee 3 Constitution Committee 4 Housing and Development Committee 5 Lakeside Committee All members of the Board and its committees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed are set out in note 3.6 to the accounts.
Annual Report & Accounts 2008/09
Board of Trustees’ Report
YMCA England
Advisors: Auditors:
PKF (UK) LLP Farringdon Place 20 Farringdon Road London EC1M 3AP
Bankers:
Barclays Bank plc Charities Team Level 28, 1 Churchill Place London E14 5HP
Solicitors:
Bates, Wells & Braithwaite LLP 2-6 Cannon Street London EC4M 6YH
Investment Managers:
Investec Investment Management Limited 2 Gresham Street London EC2V 7QP
Rensburg Sheppards Quayside House Canal Wharf London LS11 5PU
Senior Staff: Chief Executive (formerly interim National Secretary): Ian Green (interim secondment from Kingston & Wimbledon YMCA from 15 July 2008 and appointed as Chief Executive from 1 August 2009) Angela Sarkis CBE (resigned 4 April 2008) Company Secretary:
Jackie Walker
Registered Office:
640 Forest Road London E17 3DZ
Trustees and Advisors
Senior Management Team: Jane Burns (Director of Fundraising) Lindsay Sartori (Director of Finance and Central Services) Bob Hutchings (Interim Director of Movement Support) to 31 July 2008 Ian Richardson (Consultant – Interim Director of Housing) 17 December 2007 to 30 September 2008 John Brennan (Director of Housing - 15 September 2008 to 20 February 2009) Paul Smillie (Head of Legal and Constitutional Affairs – joined SMT 1 January 2009) Ken Livingstone (Senior Regional Executive Officer – joined SMT 1 January 2009)
P27
Independent auditors’ report
YMCA England
Independent auditors’ report
Annual Report & Accounts 2008/09
Independent auditors’ report To the Members of The National Council of Young Men’s Christian Associations (Incorporated) We have audited the group and parent company financial statements (“the financial statements”) of the National Council of Young Men’s Christian Associations (Incorporated) for the year ended 31 March 2009 which comprise the Consolidated Statement of Financial Activities, the Statutory Income and Expenditure Account, the Statement of Total Recognised Gains and Losses, the Balance Sheets, the Consolidated Cashflow Statement and the related notes. The financial statements have been prepared under the accounting policies set out therein. This report is made solely to the company’s members as a body, in accordance with section 235 of the Companies Act 1985 and schedule 1 to the Housing Act 1996. Our audit work has been undertaken so that we might state to the 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective Responsibilities of Board Members and Auditors The responsibilities of the Members of the Board (who are also the directors of the National Council of Young Men’s Christian Associations (Incorporated)) for preparing the Report of the Board and the financial statements in accordance with applicable law and United Kingdom accounting standards (‘United Kingdom Generally Accepted Accounting Practice’) are set out in the statement of directors’ responsibilities. Auditors’ Report P30
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and have been properly prepared in accordance with the Companies Act 1985, schedule 1 to the Housing Act 1996 and the Accounting Requirements for Registered Social Landlords General Determination 2006. We also report to you whether, in our opinion, the information given in the Board of Trustees’ report is consistent with the financial statements. In addition, we report to you if, in our opinion, the company has not kept proper accounting records, if the company’s financial statements are not in agreement with those accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors’ remuneration and other transactions is not disclosed. We read other information contained in the annual report and consider whether it is consistent with the audited financial statements. The other information comprises only the directors’ report and the chairman’s report. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
Independent auditors’ report
Basis of Audit Opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the group’s and the parent company’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
YMCA England
Opinion In our opinion: •• the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the charitable company’s and the group’s affairs as at 31 March 2009 and of the group’s deficit, incoming resources and application of resources including its income and expenditure, for the year then ended; •• the financial statements have been properly prepared in accordance with the Companies Act 1985, schedule 1 to the Housing Act 1996 and the Accounting Requirements for Registered Social Landlords General Determination 2006; and •• the information given in the Board of Trustees’ report is consistent with the financial statements.
PKF (UK) LLP Registered auditors
20 September 2009
Auditors’ Report
Annual Report & Accounts 2008/09
P31
Financial Statements
YMCA England
Financial Statements
Annual Report & Accounts 2008/09
National Council of Young Men’s Christian Associations (Incorporated)
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES Year ended 31 March 2009 Note
UNRESTRICTED £’000
2009 RESTRICTED £’000
TOTAL £’000
2008 TOTAL £’000
2.1 2.2 2.3 2.4
2,801 593 8,375 247
645 434 121
3,446 593 8,809 368
5,027 561 7,798 402
12,016
1,200
13,216
13,788
4,663 254 1,239 6,156
94 94
4,663 254 1,333 6,250
4,467 1,919 949 7,335
18,172
1,294
19,466
21,123
1,411 7,853 13 9,277
172 172
1,411 8,025 13 9,449
1,330 6,909 17 8,256
4,167 4,816 351 9,334
615 117 341 1,073
4,782 4,933 692 10,407
4,262 4,554 699 2,123 11,638
171
-
171
140
18,782
1,245
20,027
20,034
(610)
49
(561)
1,089
(829)
(375)
(1,204)
(388)
(1,439)
(326)
(1,765)
701
Transfer of restricted fund assets Fund balances at 1 April 2008
6,850
3,238
10,088
(1,397) 10,784
FUND BALANCES AT 31 MARCH 2009
5,411
2,912
8,323
10,088
INCOMING RESOURCES Incoming resources from generated funds: Voluntary income Affiliation fees Activities for generating funds Investments, interest and rental income Incoming resources from charitable activities: Housing and homelessness Work with and for young people Work with and for member YMCAs
2.5
TOTAL INCOMING RESOURCES RESOURCES EXPENDED Costs of generating funds: Costs of generating voluntary income Operating costs of activities for generating funds Investment management costs
3.1
Charitable Activities: Work with and for member YMCAs Housing and homelessness Work with and for young people YMCA National Centre, Lakeside
3.2
Governance costs
3.3
TOTAL RESOURCES EXPENDED NET (EXPENDITURE) INCOME FOR THE YEAR Net losses on investment assets NET MOVEMENT IN FUNDS
Consolidated Statement of Financial Activities P34
10.1
COMMENTARY: Voluntary income has fallen in the year even after allowing for an exceptional legacy of £870k in 2007/8. There has been a significant expansion of the Shops operation to 137 shops at the year end, which has resulted in an increase in the figures for generated income and also the costs of generating funds. The reduction in the income and expenditure on working with young people arises from the sale of the buildings and the operations at YMCA Lakeside to Fylde Coast YMCA. The expenditure total for work with YMCAs includes over £0.5m distributed to local YMCAs, in addition to the services provided to local YMCAs.
Annual Report & Accounts 2008/09
Financial Statements
YMCA England
National Council of Young Men’s Christian Associations (Incorporated)
STATUTORY INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS Year ended 31 March 2009
Note
31 March 2009 Housing Non-housing Operations operations £’000 £’000
Income
4,690
Operating Costs
(4,373)
Operating surplus (deficit) Investment income Interest and rents receivable Interest payable
4. 4. 4.
31 March 2008 Non-housing operations Discontinued £’000 £’000
TOTAL £’000
Housing Operations £’000
19,098
4,379
14,092
(15,282) (19,655)
(4,047)
(13,143)
14,408
2,250
TOTAL £’000 20,721
(2,466) (19,656)
317
(874)
(557)
332
949
(216)
1,065
(330)
265 103 (42)
265 103 (372)
(354)
273 129 (3)
(21)
273 129 (378)
-
(176)
(176)
-
(85)
-
(85)
(13)
(724)
(737)
(22)
1,263
(237)
1,004
(Loss) on sale of investments (DEFICIT) SURPLUS FOR THE YEAR STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 14 Transfer of restricted fund assets Unrealised (losses) on market value of investments
(1,028)
(1,397) (303)
TOTAL RECOGNISED GAINS AND LOSSES SINCE THE LAST ANNUAL REPORT
(1,765)
(696)
(737) 22
1,004 238
(715)
1,242
HISTORICAL COST (DEFICIT) SURPLUS (Deficit) surplus for the year Realised gain on sale of investments HISTORICAL COST (DEFICIT) SURPLUS FOR THE YEAR
These accounts were approved and authorised for issue by the Board on 20 September 2009.
Roger Mills-Hicks Treasurer
COMMENTARY: This page shows the results for YMCA England in the format required by the Companies Act 1985. It also separates the result of housing activities from the result of non-housing activities as required by the Accounting Regulations for Registered Social Landlords. The discontinued activities in the prior year are the sale of the buildings and the operations at YMCA National Centre, Lakeside to Fylde Coast YMCA
Income, Expenditure and Gains Statement
Tim Waldron Chairman
P35
YMCA England
Financial Statements
Annual Report & Accounts 2008/09
National Council of Young Men’s Christian Associations (Incorporated)
BALANCE SHEETS Year ended 31 March 2009
Note FIXED ASSETS Tangible Assets: Housing assets Other tangible assets Fixed asset investments Investments in subsidiaries CURRENT ASSETS Stocks Debtors Investments Short term deposits Cash at bank and in hand CREDITORS: Amounts falling due within one year
Unrestricted Funds £’000
31 March 2008 Restricted GROUP Funds TOTAL PARENT £’000 £’000 £’000
6.1 6.2 10. 7.
6,951 868 7,819
199 2,200 2,399
6,951 1,067 2,200 10,218
6,951 1,067 2,200 3 10,221
7,042 766 7,808
204 2,539 2,743
7,042 970 2,539 10,551
7,042 970 2,539 3 10,554
8. 9. 10.1 10.2
182 3,234 2,984 86 118 6,604
5 25 30
187 3,259 2,984 86 118 6,634
28 3,468 2,984 86 118 6,684
98 2,972 4,089 361 78 7,598
5 17 585 607
103 2,989 4,089 361 663 8,205
15 3,131 4,089 361 480 8,076
11.
(3,920)
483
(3,437)
(3,490)
(3,351)
(112)
(3,463)
(3,337)
2,684
513
3,197
3,194
4,247
495
4,742
4,739
10,503
2,912
13,415
13,415
12,055
3,238
15,293
15,293
(5,092)
-
(5,092)
(5,092)
(5,205)
-
(5,205)
(5,205)
5,411
2,912
8,323
8,323
6,850
3,238
10,088
10,088
NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS: Amounts falling due after one year
31 March 2009 Unrestricted Restricted GROUP Funds Funds TOTAL PARENT £’000 £’000 £’000 £’000
12.
The funds of the charity: Restricted Funds (page 36)
14.
-
2,912
2,912
2,912
-
3,238
3,238
3,238
Unrestricted Funds (page 36)
15.
5,411
-
5,411
5,411
6,850
-
6,850
6,850
5,411
2,912
8,323
8,323
6,850
3,238
10,088
10,088
These accounts were approved and authorised for issue by the Board on 20 September 2009.
Tim Waldron Chairman Balance Sheets P36
Roger Mills-Hicks Treasurer
COMMENTARY: The decrease in investments arises partly from the realisation of funds during the year and partly due to falls in the market value of investments held at the year end. As we receive a proportion of capital development grants in advance of projects commencing and the final percentage on completion, this would normally enable our bank balances to remain in credit as new projects start before earlier ones end. However the delays in the receipt of new grants until early 2009/10 and managed delays in completion, meant that bank balances fell into overdraft.
Annual Report & Accounts 2008/09
Financial Statements
YMCA England
National Council of Young Men’s Christian Associations (Incorporated)
CONSOLIDATED CASH FLOW STATEMENT Year ended 31 March 2009 31 March 2009
NET CASH (OUTFLOW) INFLOW FROM OPERATING ACTIVITIES
1.
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE Investment income Interest received Interest paid Net cash outflow from returns on investments and servicing of finance
31 March 2008
£’000
£’000
(411)
265 48 (372)
On other assets: Fixed assets purchased Bank loan repaid Net cash (outflow) inflow from capital assets MANAGEMENT OF LIQUID RESOURCES Trust & Association and Movement Trust Fund investments: Proceeds from sale of investments Investments purchased Decrease in funds on short term deposit YMCA England investments: Proceeds from sale of investments Investments purchased Funds from (to) short term deposits Net cash inflow (outflow) from management of liquid resources (DECREASE) INCREASE IN CASH BALANCES
2.
£’000 914
273 68 (375) (59)
CAPITAL EXPENDITURE AND FINANCING On housing assets: Housing properties Capital grants received Repayment of housing loans Net cash (outflow) inflow from housing assets
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS (Decrease) increase in cash balances Decrease in loans Decrease in current asset investments Change in net funds Net debt at 1 April Net debt at 31 March
£’000
(34)
(2,077) 902 (84)
(749) 1,566 (80)
(1,259)
737
(462) -
(342) (285) (1,721)
110
(2,191)
990
100 (136)
(7) (21)
1,611 (1,335) 275
1,574 (1,365) (279) 515
(98)
(1,676)
892
(1,676) 84 (1,380)
892 365 (131)
(2,972) (165)
1,126 (1,291)
(3,137)
(165)
COMMENTARY: YMCA England has invested over £2m in its housing properties mainly financed by £902k of new housing grants and a further £564k from grants received in advance in prior years. In addition almost £0.5m has been invested in other fixed assets (including over £200k in IT equipment) financed from the sale of investments. This capital expenditure together with a net operating outflow of funds of £411k and the unrealised reduction of £829k in market value of the investments has resulted in the incease in net debt.
Consolidated Cash Flow Statement
Note
P37
YMCA England
Financial Statements
Annual Report & Accounts 2008/09
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT Year ended 31 March 2009 1.
RECONCILIATION OF NET (EXPENDITURE) FOR THE YEAR TO NET CASH (OUTFLOW) INFLOW FROM OPERATING ACTIVITIES 31 March 2009 Net (outflow) inflow of resources for the year (page 34) Disposal of fixed assets Depreciation charge Return on investments and servicing of finance
2.
31 March 2008
£’000
£’000
(561)
1,089
1
228
488
540
59
34
(Increase) in stocks
(84)
(16)
Decrease (increase) in debtors
308
(1,536)
(Decrease) increase in creditors and deferred creditors
(622)
575
NET CASH (OUTFLOW) INFLOW FROM OPERATING ACTIVITIES
(411)
914
ANALYSIS OF CHANGES IN NET FUNDS Non-cash
Cash at bank and in hand Bank overdraft
31 March 2009
Cashflow
movement
31 March 2008
£’000
£’000
£’000
£’000
118
(545)
-
663
(1,131)
(1,131)
-
-
(1,676)
-
84
(113)
(73)
MOVEMENT IN CASH BALANCES Loans due within one year Loans due after one year Current asset investments and short term deposits NET DEBT
Notes to the Consolidated Cash Flow Statement P38
(102) (5,092)
-
113
(5,205)
3,070
(551)
(829)
4,450
(3,137)
(2,143)
(829)
(165)
Annual Report & Accounts 2008/09
Financial Statements
YMCA England
National Council of Young Men’s Christian Associations (Incorporated)
1.
ACCOUNTING POLICIES The financial statements have been prepared in accordance with applicable accounting standards. The most important accounting policies are:
1.1
BASIS OF ACCOUNTING These financial statements are prepared under the historical cost convention, except for the valuation of investments, and comply with the Accounting Requirements for Registered Social Landlords General Determination 2006, the Statement of Recommended Practice issued by the National Federation of Housing Associations (the Housing SORP 2008) and “Accounting and Reporting by Charities: Statement of Recommended Practice (revised 2005)” issued by the Charity Commission (Charities SORP 2005), where this does not conflict with the Housing SORP, the Charities Act 1993 and the Companies Act 1985. The accounts have been prepared on a Going Concern basis.
1.2
BASIS OF CONSOLIDATION The National Council of YMCAs is required to prepare consolidated financial statements on a line-by-line basis including the results of the company’s trading subsidiaries - Y Trade Limited, Dunford House Limited and YMCA Lakeside (Trading) Limited, and the operations of Dunford Trust, MacAndrew Trust, Douglas Wood Charity and the YMCA Trust Fund. As permitted by Section 230 of the Companies Act 1985, the income and expenditure account of the parent company is not presented as part of these financial statements . Prior to the gift aid payment from the subsidiaries, the gross income of the parent company was £18.7m (2008: £19.8m) and the net movement in funds reported for the year includes a deficit of £2m (2008: surplus of £129k) which is dealt with in the financial statements of the parent company.
1.3
GENERAL The Statement of Financial Activities records the activities of the National Council of YMCAs and its subsidiaries, both as an affiliating body and of operating projects on a national basis and the balance sheet sets out its assets and liabilities. In addition to its own assets, properties and investments are registered in the name of YMCA England as formal trustee for Associations. These assets are excluded from these financial statements. Restricted funds are raised for specific purposes and may only be used for the specified purpose. The movement on these funds are separated from movements in unrestricted funds on the Statement of Financial Activities and the amount at the balance sheet date is shown in note 14. Where funds are in deficit they are charged against the General Fund.
1.4
DUNFORD HOUSE This property is held by YMCA England as trustee, and under the terms of the Trust Deed the surpluses from operations can only be applied for specified purposes. As the property is not beneficially owned by the National Council it is not valued for the purpose of inclusion in fixed assets and the operating results are shown as a restricted fund.
1.5
TURNOVER The total incoming resources represents the amounts receivable exclusive of VAT in respect of operational activities, grants receivable and fundraising activities. All income arose in the United Kingdom. All income from operations, grants and fundraising is recognised in the Statement of Financial Activities when any conditions relating to the income have been satisfied, and any amounts in respect of future periods are carried forward as deferred income. Grants received for housing properties are deducted from the cost of the asset in accordance with the Housing SORP and are not included in the Statement of Financial Activities. Donated assets are included at their market value at the date of donation. Goods donated for sale in the charity shops are only included when sold. Gifts received in kind are included in income at their market value with a corresponding charge included within expenditure.
1.6
LEGACIES Legacies are recognised within income and debtors when probate is granted unless there are specific conditions preventing receipt, eg a life tenant. At the yearend there were 7 legacies subject to life tenants with an estimated value of £160k which are held in property and investments.
1.7
CAPITAL EXPENDITURE AND DEPRECIATION Fixed assets are items costing in excess of £5,000 with a useful life of more than one year and are stated at cost less depreciation. The depreciation charge is calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows: Freehold buildings - 50 years Outdoor activity accommodation - 10 years Leasehold land and buildings - Period of the lease - Period of the lease or ten years whichever is less Shop leases and shop fittings Computers, equipment and motor vehicles - 3 years straight line
1.8
HOUSING PROPERTIES Housing assets are stated at cost less Social Housing Grants (SHG) received and monies raised for these capital projects. Financing costs incurred during construction have not been capitalised but are charged to the Statement of Financial Activites when incurred. In accordance with the Housing SORP depreciation is charged on the construction costs less grants received. The National Council sets aside funds for future major repair expenditure on housing properties as shown in note 15. Any SHG receivable at the year end is shown as a debtor and SHG received in advance of the expenditure is shown as a creditor due within one year.
1.9
STOCKS AND WORK IN PROGRESS Stocks and work in progress are stated at the lower of cost and net realisable value.
Accounting Policies
ACCOUNTING POLICIES Year ended 31 March 2009
P39
YMCA England
Financial Statements
Annual Report & Accounts 2008/09
National Council of Young Men’s Christian Associations (Incorporated)
ACCOUNTING POLICIES Year ended 31 March 2009 1.10 RESOURCES EXPENDED Direct expenses are allocated to the department incurring the expenditure. Expenditure is stated inclusive of irrecoverable VAT. During the year ended 31 March 2009 YMCA England incured VAT of £330,758 (2008: £195,818) which it was unable to recover Costs of generating funds includes all fundraising departments, operating costs for the trading subsidiaries and investment management costs. Charitable activities comprises expenses attributable to the operating departments as detailed in note 3.2. Central services are allocated to activities departments based on the estimated usage of the services on the following basis: Function Allocation basis Office Services Average number of employees Central overheads Average number of employees Personnel and payroll Average number of employees Finance Non-staff expenditure IT Number of PCs Governance costs comprise the costs of governance arrangements that relate to the general running of the core charity and are detailed in note 3.3. 1.11 INVESTMENTS The Charities SORP provides that investments should be shown as fixed assets at their market value. YMCA England has always regarded its General Fund investments as a source of working capital, interchangeable with cash as required, and therefore treated as a current asset. As such they would, under normal accounting treatment, be stated at the lower of cost or net realisable value. In the light of the Charities SORP and the use to which the investments are put, the Board considers that their inclusion as current assets at market value gives a true and fair view of the financial position of the charity. To comply with the Charities SORP investment gains and losses have to be shown on the face of the Statement of Financial Activities. Investments in subsidiary companies are stated at cost plus accumulated surpluses. Investment income is accounted for on a receivable basis. 1.12 OPERATING LEASES Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the term of the lease. 1.13 PENSIONS YMCA England participated in a multi-employer defined benefit pension plan for employees of YMCAs in England, Scotland and Wales, which was closed to new members and accruals on 30 April 2007. The plan’s actuary has advised that it is not possible to separately identify the assets and liabilities relating to YMCA England for the purposes of FRS 17 disclosure. The employer contributions in relation to the pension plan are determined by a qualified actuary and charged to the Statement of Financial Activities as made. As described in note 13 a defined contribution scheme has been set up from 1 October 2006 which all staff are eligible to join. 1.14 LIABILITIES Liabilities are recognised when YMCA England has an absolute obligation to make payment to a third party. 1.15 CASH AT BANK AND IN HAND This includes amounts held on deposit accounts with access within ten days. 1.16 LIQUID RESOURCES Liquid resources for the purposes of the cashflow statement comprise current asset investments that are realisable within three months. It thus includes listed investments and short term deposits as shown in note 10.
Accounting Policies P40
Annual Report & Accounts 2008/09
Financial Statements
YMCA England
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009
2.1
ANALYSIS OF TOTAL INCOMING RESOURCES
INCOMING RESOURCES FROM GENERATED FUNDS VOLUNTARY INCOME Individuals Legacies Corporate and Trusts
Grants and Contracts for services £’000
Other Income £’000
TOTAL 2009 £’000
TOTAL 2008 £’000
-
2,271 882 293
2,271 882 293
2,687 2,068 272
-
3,446
3,446
5,027
2.2
AFFILIATION FEES
-
593
593
561
2.3
ACTIVITIES FOR GENERATING FUNDS Income generated by charity shops Trading activities (note 7)
-
8,056 753
8,056 753
6,494 1,304
-
8,809
8,809
7,798
-
265 48 55
265 48 55
273 68 61
-
368
368
402
-
4,247 416 -
4,247 416 -
3,704 356 407
Work with and for young people Lakeside & Glenridding Prisons Work
254
-
254
1,598 321
Work with and for member YMCAs Regional Executive Officers Organisational Development Funding support Programme Development Communications Legal Support and Trust & Association Funds Dunford House Central Services
272 116 -
59 4 49 181 10 373 94 175
59 4 49 453 126 373 94 175
73 335 136 54 98 253
TOTAL
642
5,608
6,250
7,335
TOTAL INCOMING RESOURCES
642
18,824
19,466
21,123
2.4
2.5
INVESTMENTS, INTEREST AND RENTAL INCOME Investment income Interest receivable Rental Income
INCOMING RESOURCES FROM CHARITABLE ACTIVITIES Housing and homelessness Housing Management Housing Schemes Homelessness Project
The figures shown above for grants include amounts raised by fundraising staff for specific purposes.
Notes to the Financial Statements
2
P41
YMCA England
Financial Statements
Annual Report & Accounts 2008/09
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 3
ANALYSIS OF TOTAL RESOURCES EXPENDED
3.1
COSTS OF GENERATING FUNDS Staff Costs (Note 3.5) £’000
Other Costs £’000
Grants payable £’000
Support Costs £’000
TOTAL 2009 £’000
TOTAL 2008 £’000
372 41
223 454 44 4
-
142 107 13 11
737 561 57 56
1,036 217 37 40
413
725
-
273
1,411
1,330
3,352 91
4,031 301
-
242 8
7,625 400
6,177 732
3,443
4,332
-
250
8,025
6,909
-
13
-
-
13
17
3,856
5,070
-
523
9,449
8,256
CHARITABLE ACTIVITIES Housing and homelessness Housing Management Housing Schemes Homelessness Project
275 90 73
4,036 366 31
-
60 2 -
4,371 458 104
3,810 344 400
Work with and for young people Lakeside & Glenridding Prisons Work
489
(59) 144
-
118
(59) 751
2,123 699
Work with and for member YMCAs Regional and local YMCA support Organisational Development Funding support Programme Development Communications Legal Support and Trust & Association Funds Payments to YMCAs International Work Dunford House Defined benefit pension scheme contributions Central Services (note 3.4)
356 138 144 173 248 103 92 718 597
198 95 23 378 196 224 145 112 953
98 527 -
90 61 41 204 118 59 23 8 (1,340)
644 294 208 755 562 484 527 168 212 718 210
620 259 200 509 719 290 385 139 250 638 253
3,496
6,842
625
(556)
10,407
11,638
GOVERNANCE COSTS Company secretarial Internal audit External audit In-sync implementation costs Board meeting expenses TOTAL
41 -
15 23 30 11 18
-
29 4 -
85 27 30 11 18
93 4 36 7
41
97
-
33
171
140
TOTAL RESOURCES EXPENDED
7,393
12,009
625
-
20,027
20,034
Costs of generating voluntary income: Individuals - existing donors - recruit new donors Legacies Corporate and Trusts Activities for generating funds: Operating costs of charity shops Trading activities (note 7)
Investment Management Costs TOTAL 3.2
TOTAL 3.3
Notes to the Financial Statements P42
Annual Report & Accounts 2008/09
Financial Statements
YMCA England
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 Central Services In accordance with the Charities SORP, central service costs less the associated income (as shown in note 2.5) are allocated across activities on the following basis:
Office Services Central Overheads Personnel and payroll Finance IT TOTAL 2009 TOTAL 2008 3.5
Basis of allocation Average number of employees Average number of employees Average number of employees Non-staff expenditure Number of PCs
Generating Funds £’000 110 55 95 222 41 523 506
EMPLOYEE COSTS (including subsidiaries)
Staff costs comprise: Wages & salaries Social security costs Defined benefit pension scheme contributions Other pension costs
Housing Work with Services Young People £’000 £’000 22 7 26 5 6 28 18 22 46 62 62
448
118 167
604 542
33 41
TOTAL 2009 £’000
TOTAL 2008 £’000
6,057 508 718 110
6,370 546 638 148
7,393
7,702
The average number of employees during the year, including part time and seasonal staff, analysed by function was: Average Full-time Number Equivalent UK - charitable activities 92 82 UK - trading activities 2 2 UK - fundraising 12 12 UK - charity shops 313 235 29 25 UK - other activities TOTAL
Work with TOTAL YMCAs Governance 2009 £’000 £’000 £’000 228 11 371 91 13 192 18 124 162 7 437 105 2 216
Average Number 148 8 11 254 27
Full-time Equivalent 135 6 11 195 25
448
372
356
The number of employees whose emoluments (excluding employer pension contributions) exceeded £60,000 per annum during the year was as follows: Number £60,001 to £70,000 1 £70,001 to £80,000 1 £80,001 to £90,000
1,340 1,318
Number 2 1
2
3
All employees earning over £60,000 are eligible to participate in the defined contribution pension scheme. In addition to the above, the interim Chief Executive was on secondment from Kingston & Wimbledon YMCA for four days per week at a total cost (covering salary, national insurance, pension contributions and irrecoverable VAT) of £55,420, and the interim Director of Housing was a consultant at a total cost of £79,313. The following information is given in respect of those employees defined as “directors” by the Accounting Requirements for registered social landlords General Determination 2006. 2009 Number £’000 Aggregate remuneration (including pension contributions) 8 441 Highest paid (excluding pension contributions)
71
There are no special pension terms applying to the Chief Executive or interim Chief Executive.
2008 Number 6
£’000 359 80
Notes to the Financial Statements
3.4
P43
YMCA England
Financial Statements
Annual Report & Accounts 2008/09
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 3.6
EXPENSES During the year 24 members of the Board were reimbursed £7,130 (2008: 20 members reimbursed £4,194) in respect of their travel expenses in performance of their duties but received no remuneration for their services during the year (2008: £nil). Members of the Senior Management Team (including the Interim Chief Executive) were reimbursed for the following items of expenditure: £’000 Travel costs 15 Subsistence 6 4 Others 25
4.
NET EXPENDITURE FOR THE YEAR The reported net expenditure for the year is after charging: Operating lease rentals payable: Property rentals Motor vehicles Equipment Interest Payable: Bank overdrafts Bank loans
Auditors remuneration: YMCA England’s auditors - audit (parent company £33,075 (2008: £34,770)) and after crediting: Income from UK listed investments Rental income: - External - From Trading companies Bank interest receivable
Notes to the Financial Statements P44
2009 £’000
2008 £’000
912 136 13
884 102 23
1,061
1,009
42 330
3 375
372
378
35
37
265
273
38 17 48
43 18 68
103
129
Annual Report & Accounts 2008/09
Financial Statements
YMCA England
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 5.
REGISTERED SOCIAL LANDLORD ACTIVITIES
5.1
PARTICULARS OF TURNOVER, OPERATING COSTS AND OPERATING SURPLUS
General needs housing (note 5.2) Supported housing (note 5.2) Total for social housing lettings Other activities: Supporting People Admin
31 March 2008 Operating Operating Turnover costs surplus £’000 £’000 £’000 124 (54) 70 4,070 (3,241) 829
4,295
(3,534)
761
4,194
(3,295)
899
395
(839)
(444)
8 177
(752)
8 (575)
4,690
(4,373)
317
4,379
(4,047)
332
PARTICULARS OF INCOME & EXPENDITURE FROM SOCIAL HOUSING LETTINGS During the year YMCA England operated 35 units (2008: 35 units) of housing accommodation and 939 units (2008: 1045 units) of supported housing accommodation using management agents.
NET RENTAL INCOME
31 March 2009 General Needs Supported Housing Housing £’000 £’000 128 4,167
31 March 2008
Total £’000 4,295
Total £’000 4,194
Management Services Routine maintenance Major repairs expenditure Rent losses from bad debts Depreciation of housing properties OPERATING COSTS ON SOCIAL HOUSING LETTINGS
41 7 9 3 4 7
1,267 1,220 618 142 99 117
1,308 1,227 627 145 103 124
1,324 1,033 560 78 194 106
71
3,463
3,534
3,295
OPERATING SURPLUS ON SOCIAL HOUSING LETTINGS
57
704
761
899
Rent losses from voids were £150,041 (2008: £243,535). All repair expenditure is charged in the year, there are no capitalised repair costs.
Notes to the Financial Statements
5.2
31 March 2009 Operating Operating Turnover costs surplus £’000 £’000 £’000 128 (71) 57 4,167 (3,463) 704
P45
YMCA England
Financial Statements
Annual Report & Accounts 2008/09
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 5.3
HOUSING BALANCE SHEET As a Registered Social Landlord, YMCA England is required to present a balance sheet separating the assets and liabilities of the housing activity from the other activities. These balances are included in the consolidated balance sheet.
Note FIXED ASSETS Housing properties: At cost Less Social Housing Grants Less Funds raised for capital projects Less Depreciation CURRENT ASSETS Debtors Cash at bank and in hand CREDITORS: Amounts falling due within one year NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS: Amounts falling due after one year
Represented by: Unrestricted Funds
Notes to the Financial Statements P46
6.1 6.1 6.1 6.1
2009 £’000
2008 £’000
50,854 (35,218) (7,604) (1,081)
48,789 (33,186) (7,604) (957)
6,951
7,042
1,207 275
596 1,778
1,482
2,374
(554)
(1,432)
928
942
7,879
7,984
(5,092)
(5,205)
2,787
2,779
2,787
2,779
5.4
With the exception of Basingtoke (which is under direct management), the housing schemes are operated by Associations as management agents for YMCA England. The gross income and expenditure are included in note 5.1 and 5.2 with amounts due (to)/ from Associations at the year end date included within creditors/debtors as appropriate. At the year end there were rent arrears of £251,041 (2008: £360,862), as these are under the control of the management agents they are not included in the above figures. Bad debts are written off as they occur.
5.5
Other creditors include £406,616 (2008: £970,952) Social Housing Grants received in advance, to be set against housing asset costs in the next financial year.
Annual Report & Accounts 2008/09
Financial Statements
YMCA England
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 6
TANGIBLE FIXED ASSETS
6.1
HOUSING FIXED ASSETS: Assets for charitable use Land & Buildings Freehold Leasehold £’000 £’000
Under Construction £’000
TOTAL £’000
Cost: At 1 April 2008 Reclassification Additions Written off At 31 March 2009
27,280 146 682 -
21,273 3 1,395 -
236 (149) (12)
48,789 2,077 (12)
28,108
22,671
75
50,854
Social Housing Grants: At 1 April 2008 Reclassification Received in the year Written off At 31 March 2009
21,694 143 629 -
11,283 1,394 -
209 (143) 21 (12)
33,186 2,044 (12)
22,466
12,677
75
35,218
Other Capital Grants: At 1 April 2008 and 31 March 2009
2,732
4,872
-
7,604
Total grants received
25,198
17,549
75
42,822
208 37
749 87
-
957 124
245
836
-
1,081
NET COST: 31 March 2009
2,665
4,286
-
6,951
31 March 2008
2,646
4,369
27
7,042
Depreciation: At 1 April 2008 Charge for the year At 31 March 2009
All leasehold properties are held on long leases. The net book value of freehold land and buildings includes land at cost of £2,968,400 which is not depreciated. In the event of a housing property ceasing to be used for housing purposes within 30 years of receipt of the grant, the unexpired proportion of the grant will become repayable in a lump sum.
Notes to the Financial Statements
At the year end there were planned capital commitments authorised and contracted for of £350,000 in respect of one housing scheme (2008: £768,000 in respect of two housing schemes) and authorised but not yet contracted for of £2.7m in respect of three housing schemes (2008: £nil).
P47
YMCA England
Financial Statements
Annual Report & Accounts 2008/09
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 6.2
OTHER TANGIBLE FIXED ASSETS Land & Buildings
Equipment & Vehicles
TOTAL
£’000
£’000
Freehold £’000
Short Leasehold £’000
Cost: At 1 April 2008 Additions Disposals At 31 March 2009
832 -
208 22 (19)
1,077 440 (64)
2,117 462 (83)
832
211
1,453
2,496
Depreciation: At 1 April 2008 Charge for the year Disposals At 31 March 2009
297 12 -
122 46 (18)
728 306 (64)
1,147 364 (82)
309
150
970
1,429
523
61
483
1,067
535
86
349
970
14 47
23 151 309
404 306 357
61
483
1,067
NET BOOK VALUE: 31 March 2009 31 March 2008
The net book value at 31 March 2009 represents fixed assets used for: Charitable Activities 381 Management & administration 141 1 Trading Operations 523
The net book value of freehold land and buildings includes land at cost of £187,154 which is not depreciated. 6.3
Notes to the Financial Statements P48
The majority of properties operated by the YMCA Movement throughout the country are owned by autonomous member YMCAs. Where the YMCA is unable to hold the title deeds itself these are held by the National Council as trustee for the YMCA. As these are not the equitable property of the National Council they are omitted from the above totals.
Annual Report & Accounts 2008/09
Financial Statements
YMCA England
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 7.
INVESTMENT IN SUBSIDIARIES During the year, the company had three trading subsidiaries, all of which are registered in England & Wales: Name: Y Trade Limited Dunford House Limited YMCA Lakeside (Trading) Limited
Nature of business: Shop sales and Design & Print service Conference services Dormant
Type of Share: Ordinary Ordinary Ordinary
Holding: 100% 100% 100%
All profits are Gift Aided to YMCA England and are included in these accounts. A summary of their trading results is shown below:
Turnover Cost of sales GROSS PROFIT Administration costs NET PROFIT Amount Gift Aided to YMCA England Retained in subsidiary Total Shareholders’ Funds
YMCA Lakeside (Trading) 31 March 2009 Limited TOTAL £000 £000
Y Trade Limited £000
Dunford House Limited £000
459 (226)
294 (36)
-
753 (262)
1,304 (605)
233
258
-
491
699
(2)
(136)
-
(138)
(127)
231
122
-
353
572
(231) -
(122) -
-
(353) -
(572)
1
1
1
3
3
31 March 2009 GROUP PARENT £’000 £’000 8.
STOCKS Goods for resale Consumables Work in progress
31 March 2008 TOTAL £000
-
31 March 2008 GROUP PARENT £’000 £’000
162 25 -
3 25 -
87 12 4
3 12 -
187
28
103
15
2,952 307 -
2,908 307 253
2,642 347 -
2,445 347 339
3,259
3,468
2,989
3,131
The replacement cost of the stocks is not materially different to the historical cost. DEBTORS Other debtors Prepayments and accrued income Due from Group Undertakings
Under the terms of the sale of YMCA National Centre, Lakeside on 31 March 2008 consideration of £325,143 for the fixed assets (excluding land) less capital grants received, has been deferred for a period of three years. This is shown within the total for other debtors shown above.
Notes to the Financial Statements
9.
P49
YMCA England
Financial Statements
Annual Report & Accounts 2008/09
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 10.
INVESTMENTS
FIXED ASSETS 10.1 UK Listed Investments: £’000 Market value at 1 April 2008 2,240 Additions at cost Disposal proceeds (100) Realised gains (losses) on sale (page 34) 21 (396) Unrealised losses during the year (page 34) Market value at 31 March 2009 1,765
CURRENT ASSETS £’000 4,089 1,335 (1,611) (197) (632)
1,987
3,253
2,058
3,704
435 435
86 86
299
361
2,200
3,070
2,539
4,450
Cost as at 31 March 2009 Cost as at 31 March 2008 10.2 Short Term Deposits: Unrestricted funds Restricted funds At 31 March 2009 At 31 March 2008 TOTAL INVESTMENTS At 31 March 2009 At 31 March 2008
2,984
The fixed asset funds comprise: - Trust & Association Funds represented mainly by funds from defunct member YMCAs. Income is either remitted to a specific activity or accumulated; - The Movement Trust Fund is established under the trusteeship of the National Council of YMCAs, with the purpose of assisting member YMCAs with grants and loans. It is managed by a separate committee, responsible to the National Board. The current asset investments comprise a portfolio of guilts and equities none of which have a market value over 10% of the total market value. The fixed asset investments comprise of investments in the following unit trusts: March 2009 March 2008 £’000 £’000 Charishare Tobacco Restricted 259 387 COIF Charity Funds - Fixed Interest 863 859 COIF Charity Funds - Property 156 221 M&G Charifund 221 354 Schroder Institutional Overseas Equities 256 409 10 10 Cash funds 1,765
Notes to the Financial Statements P50
2,240
Annual Report & Accounts 2008/09
Financial Statements
YMCA England
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 11.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31 March 2009 GROUP PARENT £’000 £’000 1,131 1,253 102 102 151 143 1,881 1,823 15 172 154
Bank overdrafts (secured) Housing loans due within one year (note 12) Taxes & Social Security Costs Other Creditors Due to Group Undertakings Accruals and deferred income
3,437
3,490
31 March 2008 GROUP PARENT £’000 £’000 73 73 171 143 2,511 2,460 22 708 639 3,463
3,337
Other creditors include £406,616 (2008: £970,952) Social Housing Grants received in advance, to be set against housing asset costs in the next financial year. Deferred income consists of deposits for future events. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Housing loans Bank loans (group and parent): The bank loans are repayable in instalments up to 2035 as follows: Repayable Annual Interest Rate Within One to one year two years £’000 £’000 Housing loan - 7.02% fixed rate 38 40 Housing loan - Variable rate 64 66 Housing loan - Interest free
GROUP £’000 5,092
PARENT £’000 5,092
GROUP £’000 5,205
PARENT £’000 5,205
Two to five years £’000 139 212 -
After five years £’000 2,305 2,230 100
TOTAL 2009 £’000 2,522 2,572 100
TOTAL 2008 £’000 2,559 2,619 100
5,194
As at 31 March 2009
102
106
351
4,635
As at 31 March 2008
73
80
273
4,852
5,278
The amounts falling due within one year are shown in note 11. The Housing loans are secured on certain of the housing properties shown in note 6.1 with a floating charge over current assets.
Notes to the Financial Statements
12.
P51
YMCA England
Financial Statements
Annual Report & Accounts 2008/09
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 13.
PENSION COMMITMENT
13.1 YMCA England participates in a contributory pension plan providing defined benefits based on final pensionable pay for employees of YMCAs in England, Scotland and Wales. The assets of the YMCA Pension Plan are held separately from those of YMCA England and at the yearend these were invested in pooled funds operated by Legal & General (equities and bonds and property units) and Schroder (property units only). The most recent completed three year valuation was as at 1 May 2008. The assumptions used which have the most significant effect on the results of the valuation are those relating to the investment yield of 6.75% per annum, the rate of earnings increase of 5% per annum and the average life expectancy from normal retirement age (of 65) for an Employed Deferred Member of 24.5 years and for a Pensioner of 22.5 years. The result of the valuation showed that the actuarial value of the assets was £49.4m. This represented 62% of the benefits that had accrued to members, after allowing for expected future increases in earnings. The plan’s actuary has advised that it is not possible to separately identify the assets and liabilities relating to YMCA England for the purposes of FRS17 disclosure and accordingly the FRS17 deficit is not shown on the balance sheet. After taking professional advice and having consideration to the various options open to them, YMCA England in its capacity as Principal Employer in the YMCA Pension Plan and in conjunction with the Trustee of the YMCA Pension Plan, made the recommendation that the YMCA Pension Plan should close to new members and future benefit accruals. After consultation with members and participating YMCA employers, the Trustee of the YMCA Pension Plan informed participating YMCA Employers on 8 May 2006 that they would adopt the recommendation and that the YMCA Pension Plan would close with effect from 30 April 2007. The valuation prepared as at 1 May 2008 showed that the YMCA Pension Plan had a deficit of £29.7 million. YMCA England has been advised that it will need to make monthly contributions of £62,938 increasing by 5% per annum until the next actuarial valuation. This amount is based on the current actuarial assumptions (as outlined above) and may vary in the future as a result of actual performance of the Pension Plan. The current recovery period is 10 years. In addition, YMCA England may have over time liabilities in the event of the non-payment by other participating YMCAs of their share of the YMCA Pension Plan’s deficit. It is not possible currently to quantify the potential amount that YMCA England may be called upon to pay in the future. 13.2 YMCA England has opened a new defined contribution group personal pension plan for employees. YMCA England are making employer contributions of 6% of pensionable earnings provided that employees make a contribution of at least 3%.
Notes to the Financial Statements P52
Annual Report & Accounts 2008/09
Financial Statements
YMCA England
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 RESTRICTED FUNDS The income and expenditure of the National Council include items relating to restricted funds comprising the following unexpended balances of donations and trusts held which can only be applied for specified purposes. Balance at 1 April 2008 £’000 Restricted income funds: Amounts raised for local YMCAs Amounts raised for YMCA England activities: - Offender Services Unit - Housing Services - Regional Support - Programme Development
Movement in funds: Incoming Investment Expenditure Resources gains (losses) £’000 £’000 £’000
Balance at 31 March 2009 £’000
69
281
-
(260)
90
420 39
209 117 38 -
-
(340) (117) (38) (21)
289 18
23
-
-
(1)
22
Movement Trust Fund Hartwoodside Award Douglas Wood Charity Rochester YMCA Trust Other Trust & Association Funds NW Region Trust Fund Birchwood YMCA
851 24 767 129 655 68 -
41 1 36 6 30 7 140
(146) (3) (129) (20) (77) -
(22) (1) (47) (26) (2) (5)
724 21 627 115 582 73 135
Dunford House
193
388
-
(365)
216
3,238
1,294
(375)
(1,245)
2,912
Capital Projects Fund: Lakeside Development
Total Restricted Funds
YMCA England raises funds on behalf of member YMCAs and for YMCA England activities which can only be used for that specific purpose. The Lakeside Capital Development fund represents amounts raised to improve Glenridding. The Movement Trust Fund is established under the trusteeship of the National Council of YMCAs, with the purpose of assisting member YMCAs with grants and loans. It is managed by a separate committee, responsible to the National Board. This committee also administers the Hartwoodside Award (which makes annual bursaries to young people in need, particularly disabled persons) and the Douglas Wood charity (which makes grants for the promotion of the education and training of young men in the science and practise on farming, horticulture or any similar profession or trade). The Rochester YMCA Trust Fund is used for altering or extending YMCA functional property in Kent and Sussex as recommended by the trustees of the South East Regional Trust Fund. The North West Region Trust Fund is administered on behalf of this regional trust fund. The Trust & Association Funds represent mainly funds from defunct Associations. Income is either remitted to a specific activity or accumulated. Birchwood YMCA closed during the year and its assets were passed to the National Council of YMCAs. The amount for Dunford House is the accumulated result for this activity.
Notes to the Financial Statements
14.
P53
YMCA England
Financial Statements
Annual Report & Accounts 2008/09
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 15.
UNRESTRICTED FUNDS Balance at 31 March 2009 £’000
Balance at 31 March 2008 £’000
2,625 1,250 34 231
2,530 1,250 105 477
4,140
4,362
‘Free reserves’ Unrealised investment gains
1,271 -
2,103 385
TOTAL UNRESTRICTED FUNDS
5,411
6,850
Allocated to the following purposes: Net investment in fixed assets Housing - Major repairs reserve Housing - Rent review fund Budgeted outflow of funds (see note below)
The allocated balances are amounts: - held in the form of fixed assets and therefore not directly available to support other activities - for anticipated future expenditure on major repairs as determined by a stock condition survey - for the rent review programme - set aside for the budgeted outflow of funds in the following financial year. These amounts are after the additional pension contributions (£718k during 2008/9 and £753k for 2009/10). The remainder of the reserves after allowing for unrealised investment gains, is available to support the activities of YMCA England and is described as ‘free reserves’. 16.
ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS Fund Balances at 31 March 2009 are represented by: UNRESTRICTED £’000
RESTRICTED £’000
TOTAL FUNDS £’000
Tangible Fixed Assets: Housing assets Other fixed assets Total fixed assets
6,951 868
2,399
6,951 3,267
Net Current Assets
2,684
10,218 513
3,197
(5,092)
-
(5,092)
5,411
2,912
8,323
UNRESTRICTED £’000 (1,439)
RESTRICTED £’000 (326)
TOTAL FUNDS £’000 (1,765)
(11)
344
333
(1,450)
18
(1,432)
Long Term Liabilities
17.
CHANGES IN RESOURCES AVAILABLE FOR CHARITY USE
Net movement in funds for the year Net decrease in fixed assets
Notes to the Financial Statements P54
Net movement in funds available for future activities
Annual Report & Accounts 2008/09
Financial Statements
YMCA England
National Council of Young Men’s Christian Associations (Incorporated)
NOTES TO THE FINANCIAL STATEMENTS Year ended 31 March 2009 LEASING COMMITMENTS At the balance sheet date, YMCA England had the following commitments under operating leases payable in the forthcoming year: 31 March 2009 Property Plant leases & machinery Expiring: £’000 £’000 Within 12 months 455 37 1 to 2 years 242 5 2 to 5 years 177 65 33 After 5 years 907
107
31 March 2008 Property Plant leases & machinery £’000 £’000 137 18 168 75 483 21 71 859
114
19.
GRANTS RECEIVED Grants received for the year include £86,908 from the Department for Children, Schools and Families (DCSF) towards a project supporting the development of extended services programmes and £109,968 also from the DCSF for the YMCA’s AIM HIGH Project; £67,538 from the Electoral Commission for work supporting young democracy champions to promote the electoral process to their peers; and £36,936 from Sport England towards the costs of the Activate England programme. In addition £10k was received from Mercers towards the Throughcare pilot project at HMP Downview and £10,000 from The 29th May 1961 Charitable Trust towards the costs of redeveloping Halton YMCA.
20.
CONTINGENT LIABILITIES YMCA England has full repairing interests in properties occupied by member YMCAs. There are potential contingent liabilities arising from these interests, but the amount of any such liabilities cannot currently be quantified.
Notes to the Financial Statements
18.
P55
ENGLAND National Council of Young Men’s Christian Associations (Incorporated). Charity no: 212810 Housing Corporation no: LH2204 A company limited by guarantee, registered in London. Company no: 73749 Registered Office: 640 Forest Road, London, E17 3DZ.