THE FEDERATION OF LONDON YOUTH CLUBS

Company limited by guarantee

Company Registration Number:
00258577 (England and Wales)

Unaudited statutory accounts for the year ended 31 August 2023

Period of accounts

Start date: 1 September 2022

End date: 31 August 2023

THE FEDERATION OF LONDON YOUTH CLUBS

Contents of the Financial Statements

for the Period Ended 31 August 2023

Directors report
Balance sheet
Additional notes
Balance sheet notes

THE FEDERATION OF LONDON YOUTH CLUBS

Directors' report period ended 31 August 2023

The directors present their report with the financial statements of the company for the period ended 31 August 2023

Principal activities of the company

1. To assist the development of young people by promoting, improving and assisting the delivery of efficient and high-quality youth work services. 2. To relieve poverty by assisting young people in need and by encouraging young people to make use of educational and recreational facilities so that their lives may be improved. 3. To give young people access to a range of learning opportunities and challenging experiences which promote their personal, social and spiritual development.



Directors

The directors shown below have held office during the whole of the period from
1 September 2022 to 31 August 2023

Morenike Ajayi
David Miller
Kevin Holian
Stephen Moss
Charline King
Stu Thomson
Michael Bishop
Simon Turek
Nimtaz-Tanya Noordin
Julie Milnes
Adem Holness


The director shown below has held office during the period of
1 September 2022 to 26 June 2023

Sharaf Mahmood


The director shown below has held office during the period of
1 September 2022 to 17 April 2023

Guy Davison


Secretary Rosemary Watt-Wyness

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
13 September 2024

And signed on behalf of the board by:
Name: Stephen Moss
Status: Director

THE FEDERATION OF LONDON YOUTH CLUBS

Balance sheet

As at 31 August 2023

Notes 2023 2022


£

£
Fixed assets
Intangible assets:   0 0
Tangible assets: 3 7,086,492 7,324,020
Investments: 4 7,113,134 7,582,956
Total fixed assets: 14,199,626 14,906,976
Current assets
Stocks:   0 0
Debtors: 5 395,809 680,310
Cash at bank and in hand: 665,073 373,340
Investments:   0 0
Total current assets: 1,060,882 1,053,650
Prepayments and accrued income: 0 0
Creditors: amounts falling due within one year: 6 ( 1,527,718 ) ( 947,061 )
Net current assets (liabilities): (466,836) 106,589
Total assets less current liabilities: 13,732,790 15,013,565
Creditors: amounts falling due after more than one year: 7 ( 490,000 ) 0
Provision for liabilities: 0 0
Accruals and deferred income: 0 0
Total net assets (liabilities): 13,242,790 15,013,565
Members' funds
Profit and loss account: 13,242,790 15,013,565
Total members' funds: 13,242,790 15,013,565

The notes form part of these financial statements

THE FEDERATION OF LONDON YOUTH CLUBS

Balance sheet statements

For the year ending 31 August 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors have chosen not to file a copy of the company's profit and loss account.

This report was approved by the board of directors on 13 September 2024
and signed on behalf of the board by:

Name: Stephen Moss
Status: Director

The notes form part of these financial statements

THE FEDERATION OF LONDON YOUTH CLUBS

Notes to the Financial Statements

for the Period Ended 31 August 2023

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 101

    Turnover policy

    Income is credited to the statement of financial activities on an accruals basis. Voluntary income is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. Services are provided at the two outdoor education centres, Hindleap Warren and Woodrow High House, with deposits and course income invoiced in advance and deferred to the month when the course takes place. Income is deferred when it relates to activity in the next accounting year, primarily at the residential centres. Grant Income is recognised in the Statement of Financial Activities when received or when the charity becomes entitled to receipt. Grants that have been received are treated as deferred income where there are specific requirements in the terms of the grant that the income recognition is dependent on certain activities being completed in a future accounting period. The charity received some gifts in kind during the year and the prior year including legal services, provision of meeting rooms, provision of building materials and volunteer time; these gifts are not considered material and have not been recognised in the financial statements (2022: £45,868). Income generated from endowment funds are unrestricted. Where tax is recoverable by the charity in respect of income receivable, it is recognised as part of that income at the time it is receivable.

    Tangible fixed assets depreciation policy

    Land Land is shown in the balance sheet at cost. Land has not been depreciated. Freehold properties Freehold properties are depreciated over their useful economic life, expected to be 50 years for permanent buildings and 20 years for more temporary structures, based on cost. Assets under Construction The value of Assets under Construction as at 31 August 2023, include a Biomass Boiler valued at £403,347 situated at Woodrow High House; as well as CRM development work valued at £200,679 as at the balance sheet date (see also Note 11). No depreciation is applied to Assets under Construction in year. London Youth Annual Report and Financial Statements 2022-23 40 Improvements 2-20% depreciation per annum has been provided against freehold improvements, according to the nature of the improvement and the useful economic life. If no cost is recorded, or if property is not used by the charity for its own activities and is subject to onerous restrictions or held on trust it is considered to have no economic value to the charity, and such properties are held at a valuation of £nil. Where improvements have been made to properties subject to onerous restrictions, the improvements have been capitalised and are depreciated over the expected time period for which the charity will benefit from the use of those properties. Motor vehicles, furniture, fittings, fixtures and equipment Depreciation at 10% to 33% per annum on cost to write down the motor vehicles and furniture and equipment to net realisable value over each asset’s estimated useful life to the charity. Computer equipment Depreciation at 20% to 33.3% per annum on cost to write down the computer equipment to net realisable value over each asset’s estimated useful life to the charity. It is the charity’s policy to capitalise assets of £1,000 and over in value.

    Other accounting policies

    1. Policies and information a) Charity information The charity is an incorporated charity (company number: 00258577 and registered charity number: 303324) domiciled in the UK. The address of the charity is 47-49 Pitfield Street, London, N1 6DA. b) Basis of preparation The financial statements have been prepared in accordance with the Charities SORP (FRS 102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK generally Accepted Practice. In preparing the Financial Statements for the year ended 2021-22, London Youth has availed of the exemption from presenting its unconsolidated Profit and Loss account under Section 408 of the Companies Act, 2006. London Youth meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost (except for revaluation of assets) or transaction value unless otherwise stated in the relevant accounting policy notes. London Youth’s subsidiary, London Youth Trading Company Limited, commenced trading in August 2015, and its accounts are consolidated on a line by line basis into these accounts for the year ended 31 August 2022. c) Preparation of the accounts on a going concern The Trustees at London Youth have adopted the going concern basis in preparing the financial statements for the year ended 31 August 2023, having assessed the principal financial risk facing the charity, which is its overall sustainability. The major uncertainty facing the charity relates to the potential for further disruption as a result of a weak economic outlook for the UK with the energy price costs and cost of living crisis which may effect demand at the charity’s outdoor Centres. The Trustees continue to reprofile the drawdown on Free Reserves to the end of the current financial strategy in 2026 and, based on the Reserves Policy requirement to hold between 3-6 months’ expenditure, and a six-month reserve target of £4M and are carefully monitoring progress against the budget targets set out within that timeframe. The Trustees are confident that investment in outdoor education opportunities, will provide growth supported by investment in fundraising and digital technologies, against a backdrop of a robust programme delivery. Given the current level of Free Reserves at £3.8M which is equivalent to 5 months current expenditure and using the target of between £2M and £4M required by 2026, the Trustees believe there are sufficient resources available to manage the current operational risk, including the risk to the charity’s reserves. The Board therefore considers there is a reasonable expectation that London Youth has adequate resources to continue in operational existence for at least a year from the date of signing this Trustees’ Report and Accounts and for the foreseeable future. For the reasons outlined above, the Board of Trustees continues to adopt the going concern basis of accounting in preparing the accounts. London Youth Annual Report and Financial Statements 2022-23 39 d) Income Income is credited to the statement of financial activities on an accruals basis. Voluntary income is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. Services are provided at the two outdoor education centres, Hindleap Warren and Woodrow High House, with deposits and course income invoiced in advance and deferred to the month when the course takes place. Income is deferred when it relates to activity in the next accounting year, primarily at the residential centres. Grant Income is recognised in the Statement of Financial Activities when received or when the charity becomes entitled to receipt. Grants that have been received are treated as deferred income where there are specific requirements in the terms of the grant that the income recognition is dependent on certain activities being completed in a future accounting period. The charity received some gifts in kind during the year and the prior year including legal services, provision of meeting rooms, provision of building materials and volunteer time; these gifts are not considered material and have not been recognised in the financial statements (2022: £45,868). Income generated from endowment funds are unrestricted. Where tax is recoverable by the charity in respect of income receivable, it is recognised as part of that income at the time it is receivable. e) Expenditure The costs of generating funds include the salaries, direct costs and overheads associated with generating income from fundraising for unrestricted activities and grants for charitable activities. Costs of charitable activities comprise direct expenses incurred on the defined charitable purposes of the charity and include direct staff costs attributable to the activity. Governance costs include expenditure on administration of the charity and compliance with constitutional and statutory requirements. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management, financial management, ICT and HR functions. Support costs are apportioned between charitable activity headings pro-rata with the proportion of full-time equivalent staff. f) Investments Investments are included on the balance sheet at their market value at the end of the financial period. Realised and unrealised gains and losses are credited, or debited, to the statement of financial activities in the year in which they arise. A Total Return approach is adopted for investments. g) Tangible fixed assets Land Land is shown in the balance sheet at cost. Land has not been depreciated. Freehold properties Freehold properties are depreciated over their useful economic life, expected to be 50 years for permanent buildings and 20 years for more temporary structures, based on cost. Assets under Construction The value of Assets under Construction as at 31 August 2023, include a Biomass Boiler valued at £403,347 situated at Woodrow High House; as well as CRM development work valued at £200,679 as at the balance sheet date (see also Note 11). No depreciation is applied to Assets under Construction in year. London Youth Annual Report and Financial Statements 2022-23 40 Improvements 2-20% depreciation per annum has been provided against freehold improvements, according to the nature of the improvement and the useful economic life. If no cost is recorded, or if property is not used by the charity for its own activities and is subject to onerous restrictions or held on trust it is considered to have no economic value to the charity, and such properties are held at a valuation of £nil. Where improvements have been made to properties subject to onerous restrictions, the improvements have been capitalised and are depreciated over the expected time period for which the charity will benefit from the use of those properties. Motor vehicles, furniture, fittings, fixtures and equipment Depreciation at 10% to 33% per annum on cost to write down the motor vehicles and furniture and equipment to net realisable value over each asset’s estimated useful life to the charity. Computer equipment Depreciation at 20% to 33.3% per annum on cost to write down the computer equipment to net realisable value over each asset’s estimated useful life to the charity. It is the charity’s policy to capitalise assets of £1,000 and over in value. h) Fund accounting The general funds comprise those monies which may be used towards meeting the charitable objectives of the charity at the discretion of the Trustees. The designated funds are monies set aside out of general funds and designated for specific purposes by the Trustees. The restricted funds are monies raised for, and their use restricted to, a specific purpose, or are donations subject to donor-imposed conditions. The permanent endowment funds comprise monies which must be held as capital indefinitely; income arising from invested funds is unrestricted and is credited to the general fund in the Statement of Financial Activities. i) Operating leases Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight line basis over the lease term. j) Pension costs The Charity makes payments into an auto-enrolment defined contributions pensions scheme operated by The People’s Pension. k) Grants administered on behalf of clubs Grants and donations received by the charity acting as an agent for individual member organisations are not recorded as incoming or outgoing resources on the statement of financial activities. In 2022-23 these were payments made by City Bridge Trust to organisations achieving a Quality Mark award, totalling £62,000 (2022: £46,000). London Youth Annual Report and Financial Statements 2022-23 41 l) Grant-making London Youth acts as lead partner on several programmes, such as HeadStart Action and Rise Up and is responsible for making grants to its partners, which are paid out as soon as practically possible after receipt of funds; based on budgeted expenditure pre-agreed with the funder and relevant due diligence criteria; the partners then make payments to their sub-partners in the partnership. Grants expenditure is accounted for in full as liabilities, when approved and notified to grantees, as there is a valid expectation that they would receive the grant as offered and accepted. The charity also makes a limited number of grants to other charities with charitable objects similar to its own (or similar non-profit organisations), primarily its member youth organisations as part of programme delivery and member development. m) Financial Instruments London Youth has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash at bank and in hand trade debtors, accrued income and other debtors. Financial liabilities held at amortised cost comprise trade creditors, accruals and other creditors. Investments, including bonds held as part of an investment portfolio, are held at fair value at the Balance Sheet date, with gains and losses being recognised with income and expenditure. n) Key judgements and uncertainties In the application of the charity’s accounting policies, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The key judgements relate to the current value of the property portfolio held as tangible fixed assets. These estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. o) Taxation London Youth is a registered charity and therefore is not liable to corporation tax on income and gains derived from its charitable activities, as it falls within the various exemptions available to registered charities. No Taxation is payable for 2022-23 as London Youth Trading Company Limited donated its profits to London Youth under Gift Aid after the year end. No provision for taxation has therefore been made for 2022-23.3

THE FEDERATION OF LONDON YOUTH CLUBS

Notes to the Financial Statements

for the Period Ended 31 August 2023

  • 2. Employees

    2023 2022
    Average number of employees during the period 134 113

THE FEDERATION OF LONDON YOUTH CLUBS

Notes to the Financial Statements

for the Period Ended 31 August 2023

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 September 2022 10,749,451 0 931,174 416,565 19,977 12,117,167
Additions 0 0 69,443 90,714 8,574 168,731
Disposals 0 0 0 0 ( 6,000 ) ( 6,000 )
Revaluations 0 0 0 0 0 0
Transfers 0 0 0 0 0 0
At 31 August 2023 10,749,451 0 1,000,617 507,279 22,551 12,279,898
Depreciation
At 1 September 2022 3,909,086 0 650,040 225,295 8,726 4,793,147
Charge for year 274,697 0 92,314 32,647 601 400,259
On disposals 0 0 0 0 0 0
Other adjustments 0 0 0 0 0 0
At 31 August 2023 4,183,783 0 742,354 257,942 9,327 5,193,406
Net book value
At 31 August 2023 6,565,668 0 258,263 249,337 13,224 7,086,492
At 31 August 2022 6,840,365 0 281,134 191,270 11,251 7,324,020

THE FEDERATION OF LONDON YOUTH CLUBS

Notes to the Financial Statements

for the Period Ended 31 August 2023

4. Fixed assets investments note

*The value of Assets under Construction as at 31 August 2023, include a Biomass Boiler valued at £403,347 situated at Woodrow High House; as well as CRM development work valued at £200,679 as at the balance sheet date. Freehold property included above at cost or Trustees’ valuation at year end comprises: 47-49 Pitfield Street London London Youth own use Hindleap Warren Sussex London Youth own use Woodrow High House Buckinghamshire London Youth own use The charity also owns freehold properties listed below which are included at a £nil valuation because the properties are held on trust or have restrictive covenants concerning their disposal. These properties have no recorded cost and are not in use by the charity. Freehold properties at £nil value: Reason for non-valuation Insurance Value (£) Westminster House Youth Club, London** Held on Trust 450,000 ** The lease relating to Westminster House Youth Club was transferred to Westminster House Youth Club on 19 January 2023 and the property is no longer held in trust by London Youth

THE FEDERATION OF LONDON YOUTH CLUBS

Notes to the Financial Statements

for the Period Ended 31 August 2023

5. Debtors

2023 2022
£ £
Trade debtors 82,986 457,829
Prepayments and accrued income 311,823 221,481
Other debtors 1,000 1,000
Total 395,809 680,310
Debtors due after more than one year: 0 0

THE FEDERATION OF LONDON YOUTH CLUBS

Notes to the Financial Statements

for the Period Ended 31 August 2023

6. Creditors: amounts falling due within one year note

2023 2022
£ £
Bank loans and overdrafts 0 0
Amounts due under finance leases and hire purchase contracts 0 0
Trade creditors 464,121 274,001
Taxation and social security 173,204 50,300
Accruals and deferred income 848,888 593,003
Other creditors 41,505 29,757
Total 1,527,718 947,061

THE FEDERATION OF LONDON YOUTH CLUBS

Notes to the Financial Statements

for the Period Ended 31 August 2023

7. Creditors: amounts falling due after more than one year note

2023 2022
£ £
Bank loans and overdrafts 0 0
Amounts due under finance leases and hire purchase contracts 0 0
Other creditors 490,000 0
Total 490,000 0