Porthcawl Young Men's Christian Assoc. - Charities report - 21.2

REGISTERED COMPANY NUMBER: 08156824 (England and Wales)

REGISTERED CHARITY NUMBER: 1149008

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

FOR

PORTHCAWL YOUNG MEN'S CHRISTIAN

ASSOCIATION

Page

Reference and Administrative Details

1

Report of the Trustees

2

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

20

TRUSTEES

A Edwards

A J Hornsby - Chairman

Mrs J Parkinson

F J Perren

A C M Phillips - Treasurer

L A W Tallon-Morris

Mrs S M Warlow

Dr J L Withecomb

F T Roberts

J Berry BEM - President

COMPANY SECRETARY

Mrs P J Fielding

REGISTERED OFFICE

25 John Street

Porthcawl

Bridgend

CF36 3AP

REGISTERED COMPANY NUMBER

08156824 (England and Wales)

REGISTERED CHARITY NUMBER

1149008

INDEPENDENT EXAMINER

Baker Knoyle Chartered Accountants

Orbit Business Centre

Merthyr Tydfil

CF48 1DL

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The Trustee Report includes the Report of the Directors' as required by company law.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Y.M.C.A, stands for:

(i) A world-wide fellowship based on the equal values of all persons.

(ii) Respect and freedom of all, tolerance and understanding between people of different opinions.

(iii) Active concern for the needs of the community.

(iv) United efforts by Christians of different traditions.

The Y.M.C.A aims to

Provide a welcome to members for themselves, in a meeting place which is theirs to share, where friendships can be made and counsel sought.

Develop activities which stimulate and challenge its members in an environment that enables them to take responsibility and find a sense of achievement.

Involve all members in care and work for others.

Create opportunities for exchanging views, so that its members can improve their understanding of the world, of themselves, of one another and of the unique relevance of the Christian Faith to their lives.

The charity has served the town of Porthcawl for over one hundred years as a social and ecumenical arm of the Christian Church. We seek to contribute to the life of the community of Porthcawl, primarily, but not exclusively, in terms of providing services for children and young people. Many activities we run ourselves, with a variety of paid and voluntary help, but we also make the building available to other organisations that want a town centre venue for one-off or regular activities.

Public benefit

The Trustees are aware that the Charity has a responsibility under the Charities Act to demonstrate that it has charitable aims that meet the public benefit requirement and are therefore charitable. The Trustees confirm that they have had regard to the Charity Commission's guidance on public benefit and comply with S17 Charities Act 2011 when considering, planning and implementing the activities of the charity. As Trustees, we believe that the aims of our organisation are charitable and for the public benefit. Furthermore, in our view, no detriment or harm arises from our Charity carrying out its work and we are not aware of any widespread views among others that such detriment or harm might arise.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

I think I can safely say that this has been a year like no other in the 112 year history of Porthcawl YMCA.

Towards the end of March 2020 the Covid-19 pandemic was spreading rapidly throughout the world and the UK government initiated lockdown measures. As a result, the YMCA was forced to close its doors, the only continuing activity being the local foodbank. All the staff apart from the Centre Manager were immediately furloughed (with the Centre Manager following in June).

In the autumn there was a gradual easing of lockdown restrictions and we were able to reopen our After School Club. The second lockdown just before Christmas stopped this again, but with Covid numbers in Wales falling gradually, we hope to be able to restart it once again soon after Easter.

Most of the other 30 or so different groups that normally use the building for a variety of purposes were forced to close throughout the pandemic. The ones that work with children are likely to be the first to return, whereas groups that tend to cater for an older clientele, such as those organised by the U3A, may well be slower to restart.

FINANCIAL REVIEW

Financial position

The Board of Directors are the financial trustees of the YMCA. The finance sub-committee prepares the annual budget for the Board's approval. The Board then monitors income and expenditure against that budget, aiming to ensure that income from activities in the building more or less matches day to day expenditure. The interest on our long-term loan and other overheads such as insurance are covered by the rent received from the ground floor shop, which changed hands during the year, with Sarah's Snakk's taking on a fifteen year lease.

When the YMCA was forced to close its doors because of the UK government's lockdown measures, our attention turned to applying for grants to cover our loss of income, and eventually grants totalling approximately £36,000 were obtained from Bridgend County Borough Council, our parent body the YMCA's of England and Wales, the Moondance Foundation and the Waterloo Foundation. Together with furlough payments which during the year totalled over £25,000, the YMCA somewhat ironically finds itself in better shape financially than at the start of the pandemic.

During 2020/21, total incoming resources were £91,093 (2019/20 £94,030) and total resources expended were £87,411 (2019/20 £103,598). Net assets were £496,792 (2019/20 £493,110) and net current assets £32,579 (2019/20 £19,317).

Current liabilities stand at £15,483 (2019/20 £10,888). Our only borrowing is a long-term commercial loan from Unity Trust Bank, which at the year end stood at £61,715, repayable over a flexible term of 10 to 15 years and at a current interest rate of just 4%.

We believe that the building is adequately insured against all likely risks.

Investment policy and objectives

The trustees have the power to invest in such assets as they see fit. Our long term assets were largely used during the major building project in 2012, but the £3,000 or so that remains is held in a deposit account with Barclays and in an investment account run by the Charities Aid Foundation (CAF), who offer a pooled facility for charitable deposit accounts.

Reserves policy

The trustees have examined the requirement for free reserves, which are those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise committed. The trustees consider this ideally should be not less than three months of running costs, i.e. around £25,000. During the year our free reserves were £Nil (2019/20 £Nil), as reserves have been set aside to cover future depreciation charges on the property, realistically, the trustees aim to retain approximately £25,000 in cash, which would be sufficient to cover any short term cashflow problems.

EVENTS SINCE THE END OF MARCH 2021

All of the staff have now started back on a part-time basis, and we have cautiously reopened our After School Club and Holiday Club, although numbers to date are lower than pre-pandemic. It is almost impossible to predict how things will unfold over the next few months - the optimistic view is that there will be a gradual return to normality, while the pessimistic view is that there will be a further spike of Covid-19 and lockdown measures will have to be reintroduced. A second grant from the Moondance Foundation, of £7,000, received in March 2021, is intended to keep us going through our projected cash flow deficit during the first half of the year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

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

The Porthcawl YMCA is a Company Limited by Guarantee with Charitable Status, registered in England & Wales.

Recruitment and appointment of new trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the Board of Trustees.

The trustees in office as at March 2021 are set out on page 1. All of these were trustees throughout the year. Trustees are elected for a period of three years, after which they are eligible for re-election.

We are always looking for anyone with relevant skills who might be prepared to serve the community of Porthcawl in this way.

Induction and training of new trustees

New Trustees must be interviewed and take part in an orientation session to brief them on their legal obligations under charity law, the committee and decision making processes, the Business Plan and recent financial performance of the charity. During the induction they meet key employees and other trustees.

INDEPENDENT EXAMINERS

A resolution to re appoint the independent examiners, Baker Knoyle Chartered Accountants, will be proposed at the Annual General Meeting.

This report has been prepared in accordance with the small company reporting regime S419(2) of the Companies Act 2006, and with the Charities SORP (FRS102) ' Accounting and Reporting by Charities'.

Approved by order of the board of trustees on 30 September 2021 and signed on its behalf by:

A J Hornsby - Trustee

Independent examiner's report to the trustees of Porthcawl Young Men's Christian Association ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Richard Knoyle ACA

Baker Knoyle Chartered Accountants

Orbit Business Centre

Merthyr Tydfil

CF48 1DL

30 September 2021

2021

2020

Unrestricted

Restricted

Total

Total

funds

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

37,589

25,983

63,572

7,008

Charitable activities

YCare

-

-

-

135

After School Club and Holiday Club

5,668

-

5,668

34,817

Youth Club

-

-

-

1,799

Room Hire

3,099

-

3,099

30,078

Coffee Bar Sales

-

-

-

4,695

Members Fees

97

-

97

153

Other trading activities

3

18,637

-

18,637

15,214

Investment income

4

20

-

20

131

Total

65,110

25,983

91,093

94,030

EXPENDITURE ON

Charitable activities

YMCA Activites

50,153

37,258

87,411

103,598

NET INCOME/(EXPENDITURE)

14,957

(11,275

)

3,682

(9,568

)

RECONCILIATION OF FUNDS

Total funds brought forward

40,151

452,959

493,110

502,678

TOTAL FUNDS CARRIED FORWARD

55,108

441,684

496,792

493,110

2021

2020

Notes

£

£

FIXED ASSETS

Tangible assets

10

520,623

533,916

CURRENT ASSETS

Stocks

11

-

132

Debtors

12

13,040

19,533

Cash at bank and in hand

35,022

10,540

48,062

30,205

CREDITORS

Amounts falling due within one year

13

(15,483

)

(10,888

)

NET CURRENT ASSETS

32,579

19,317

TOTAL ASSETS LESS CURRENT LIABILITIES

553,202

553,233

CREDITORS

Amounts falling due after more than one year

14

(56,410

)

(60,123

)

NET ASSETS

496,792

493,110

FUNDS

19

Unrestricted funds

55,108

40,151

Restricted funds

441,684

452,959

TOTAL FUNDS

496,792

493,110

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 30 September 2021 and were signed on its behalf by:

A J Hornsby - Trustee

A C M Phillips - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

The following specific policies are applied:

Voluntary income

Income received by way of grants, gifts or donation is included in full on receipt unless it is subject to a condition when it is treated as deferred income.

Deferred income

Income or grants received in advance are held as deferred income and carried forward to future accounting periods to be released when the defined purposes of the work or project have been completed, approved or certified.

Gifts in kind

Gifts in kind are included in the income and expenditure account where they are applied in carrying out charitable activities, where the company would otherwise have to purchase the donated facility and the benefit is both quantifiable and material. The quantifiable benefit is shown as both incoming and expended resources within the appropriate funds. Where the gift is an asset it is treated as income and taken to stock or fixed assets as appropriate.

The value of services provided by volunteers is not quantified.

Investment income

Investment income is included when receivable.

Trading income

Trading income is recognised when earned.

Government Grant Income comprises specific project related direct support. Please refer to 'Incoming Resources' note, for amounts.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Expenditure includes any VAT which cannot be fully recovered.

Costs of generating funds

Costs of generating funds include the costs associated with attracting voluntary income and the costs of trading for fundraising purposes.

Charitable expenditure

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes the costs that can be attributed directly to those activities and those costs of an indirect nature necessary to support them.

All expenditure

All expenditure is allocated between the categories of the SoFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned between categories on a basis that fairly reflects their usage.

Pension costs

Contributions are made to the employees own personal pension schemes. The pension cost charge represents those contributions payable to individual schemes.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

25% on cost

Stocks

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

Taxation

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

Fund accounting

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

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

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Organisational status

The organisation is a company limited by guarantee and a registered charity. The directors are the trustees and they form a Board of Trustees which is the executive body of the charity. The aims and objectives and rules for governance are set out in the charitable company's Memorandum and Articles of Association.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist.

2.	DONATIONS AND LEGACIES

2021

2020

£

£

Donations

1,978

1,137

Gift aid

262

818

Grants

61,332

5,053

63,572

7,008

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

2021

2020

£

£

Bridgend County Borough Council

10,000

4,100

HMRC Furlough Grant

25,350

953

Waterloo Foundation

5,000

-

National Council of YMCA's Covid Emergency Fund

7,500

-

Moondance Foundation

5,400

-

Welsh Church Acts Fund

5,082

-

Bridgend CBC

3,000

-

61,332

5,053

3.	OTHER TRADING ACTIVITIES

2021

2020

£

£

Fundraising events

-

1,547

Rent Received

18,637

13,667

18,637

15,214

4.	INVESTMENT INCOME

2021

2020

£

£

Deposit account interest

20

131

5.	SUPPORT COSTS

Governance

costs

£

YMCA Activites

12,538

Accountancy Fees include:

2021

2020

£

£

Fees payable to the charity's Independent examiners for the independent examination of the charity's financial statements

900

1,111

Support costs, included in the above, are as follows:

2021

2020

YMCA

Total

Activites

activities

£

£

Wages

9,856

-

Accountancy fees

900

1,111

Legal fees

1,782

1,821

12,538

2,932

6.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2021

2020

£

£

Depreciation - owned assets

13,293

12,877

7.	TRUSTEES' REMUNERATION AND BENEFITS

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

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

8.	STAFF COSTS

2021

2020

£

£

Wages and salaries

49,059

63,023

Other pension costs

878

991

49,937

64,014

The average monthly number of employees during the year was as follows:

2021

2020

YMCA activities

6

9

No employees received emoluments in excess of £60,000.

Included in the above is employers national insurance contributions amounting to £Nil (2020: £Nil).

The key management of the charity comprises the Directors/Trustees. The total benefits of the the key management personnel of the charity was £Nil.

Pension Costs

The Charity contributes to employee's government work place pension scheme. The pension cost charge represents contributions paid by the Charity to the individual schemes.

9.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

funds

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

7,008

-

7,008

Charitable activities

YCare

135

-

135

After School Club and Holiday Club

34,817

-

34,817

Youth Club

1,799

-

1,799

Room Hire

30,078

-

30,078

Coffee Bar Sales

4,695

-

4,695

Members Fees

153

-

153

Other trading activities

15,214

-

15,214

Investment income

131

-

131

Total

94,030

-

94,030

EXPENDITURE ON

Charitable activities

YMCA Activites

103,598

-

103,598

NET INCOME/(EXPENDITURE)

(9,568

)

-

(9,568

)

Transfers between funds

19,859

(19,859

)

-

Net movement in funds

10,291

(19,859

)

(9,568

)

RECONCILIATION OF FUNDS

Total funds brought forward

29,860

472,818

502,678

TOTAL FUNDS CARRIED FORWARD

40,151

452,959

493,110

10.	TANGIBLE FIXED ASSETS

Freehold

Plant and

property

machinery

Totals

£

£

£

COST

At 1 April 2020 and 31 March 2021

638,346

15,389

653,735

DEPRECIATION

At 1 April 2020

105,412

14,407

119,819

Charge for year

12,767

526

13,293

At 31 March 2021

118,179

14,933

133,112

NET BOOK VALUE

At 31 March 2021

520,167

456

520,623

At 31 March 2020

532,934

982

533,916

11.

STOCKS

2021

2020

£

£

Stocks

-

132

12.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

13,040

14,754

Other debtors

-

4,779

13,040

19,533

13.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts (see note 15)

5,305

4,935

Social security and other taxes

283

404

VAT

1,869

3,777

Pension creditor

177

372

Accruals and deferred income

7,000

-

Accrued expenses

849

1,400

15,483

10,888

Deferred Income

Deferred income represents income received from contributing agencies where the contribution was restricted to a fixed time period project which extends beyond the current financial year. Income is deferred on the basis that the contribution was to the project as a whole, the time period of the project was fully disclosed to the contributing agencies and that time period is certain.

The deferred income carried forward is analysed as follows:

2021

2020

£

£

Opening balance

-

-

Movement in the year

7,000

-

Deferred income carried forward

7,000

-

Deferred income analysed by project:

2021

2020

£

£

Restricted - Moondance Foundation

7,000

-

14.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans (see note 15)

56,410

60,123

15.

LOANS

An analysis of the maturity of loans is given below:

2021

2020

£

£

Amounts falling due within one year on demand:

Bank loans

5,305

4,935

Amounts falling due between two and five years:

Bank loans - 2-5 years

21,222

17,050

Amounts falling due in more than five years:

Repayable by instalments:

Bank loans more 5 yr by instal

35,188

43,073

16.	LEASING AGREEMENTS

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

2021

2020

£

£

Within one year

691

691