Registered charity number 1124657

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ESSEX YOUTHBUILD LTD Registered charity number 1124657 Registered company number 06608363 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018 ~ ~ Community Accounts Service

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Reference and administrative information
Independent examiner's report 14
Directors: (Charity Trustees)
Ms S Douglas-Davis Mr R Hazelhurst (Treasurer) Ms M R Lewis Mr M D Solder (Chair) Ms J Tarbun (Secretary) Mr C Turner Ms L Turner-Smith Mr G Williams
Management Committee: The Directors Chief Executive
Company Secretary:
Registered Office:
6 Grafton Place Montrose Road Chelm sford Essex CM2 6TG
Registered Numbers: Charity: 1124657 Company: 06606363
Reporting Accountant: Community360 Winsley's House High Street Colch ester Essex C01 1UG
Bankers: CAF Bank 25 Kings Hill Avenue West Mailing
Kent ME19 4JQ
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
Chair's Report
Our Purpose and Activities
Our main purpose is to alleviate poverty and help young people in necessitous circumstances by providing training and education, thereby improving their life chances.
Essex Youthbuild is a registered charity and a company limited by guarantee. We provide accredited vocational training in construction and work-related skills to disadvantaged young people from all over Essex.
We work with young people aged 12-19. Those who are 16+ must be NEET (not in education, employment or training) and those aged 14-16 come to us via an arrangement with their school. These young people may suffer from a range of disadvantages including, but not limited to:
Being NEET (not in education, employment or training) Being looked after or leaving care Living independently at a very young age Being homeless/'sofa-surfing'
Being known to the Youth Offending Service Having no or few formal qualifications or unlikely to gain many at school Being excluded from or struggling at mainstream school Needing a vocational element to their curriculum Unable to gain or maintain a place at a mainstream college Special educational needs or disabilities Various mental health issues including, but not limited to, anxiety and depression
We aim to engage these young people in education and break down barriers to engagement by:
Having no formal interview or skills test to join the course ~ Offering roll-on/roll-off courses that young people can join at any time
Reimbursing travel to and from our workshop (for 16+) ~ Offering breakfast before start of tuition as well as having snacks and drinks available at breaks
Paying small bonuses to 16+ YP for good attendance/achievement
We offer multiple chances to succeed by providing a highly flexible and modular City & Guilds' Level 1
training programme in construction skills, available year around. We complement this vocational training with tuition in numeracy, literacy and employability, leading to Gateway Qualifications' Awards. Other training provided includes first aid, Level 1 Health & Safety in a Construction Environment, working at height awareness and preparation for the CITB Health, Safety & Environment Test.
We pay bonuses of 620 to our 16+ trainees for good attendance and achievement reinforcing the 'realistic work environment' we are trying to emulate and helping to embed a work ethic with the young people.
In addition to these activities, we started Trade Club in 2017, a free, after-school activity for children aged 12-16 to try out different trade activities and build team working skills and confidence.
Achievements and Performance
As can be seen from the attached statistics, we worked with a total of 69 young people during the period under review. More than two thirds of 16+ students achieved some kind of accreditation from City 8 Guilds with half gaining a full-blown qualification. Of our school age students, all of those who left school in the 2018 academic year left with some kind of accreditation.
Financial Review
We have engaged Community360 (formerly Colchester Community Volunteers Service) to support us in
producing our independently verified financial statement as a charity.
We hold two CAF Bank accounts —one current, one interest account.
We also maintain a cost-centre with Essex County Council ('ECC'). This arrangement, explained more fully below under 'Recharge from ECC', remains in place from the period before Essex Youthbuild became a charity in June 2008, as staff had been employed by ECC specifically to work at Essex Youthbuild.
Recharge from ECC
Essex County Council invoices Essex Youthbuild at the end of the financial year - a process known as 'recharge'. The amount of financial support given by ECC is dependent upon their budget constraints each year and so varies, although is on a downward trend.
Recharge for 2017-18
Essex Youthbuild paid an invoice from Essex County Council for F31,000 in February 2018. This amount of recharge covered the payment of rent on the lease for the workshop and related rates and service charge. One instructor's salary was met by Essex County Council during the period.
Investment Powers and Policy
As previously mentioned, Essex Youthbuild maintains two CAF Bank accounts, one current cash account and one interest-paying account. Essex Youthbuild keeps the majority of its funds in the interest-earning account, transferring amounts to the current cash account when necessary. These accounts represent Essex Youthbuild's entire financial holdings and it is the charity's current policy not to invest money elsewhere.
Reserves Policy and Going Concern
Essex Youthbuild's Reserves Policy is to hold funds sufficient to cover a minimum of 9 months' operating costs. Generally, these are allocated to running costs. In addition, a certain amount of capital funds needs to be retained to ensure coverage of dilapidations, maintenance and repairs to our premises.
Plans for Future Periods
Essex Youthbuild is considering its options regarding premises as the current lease comes to an end in December 2018
Pay Policy for Senior Staff
No member of staff is currently paid in excess of f60,000 per annum.
Risk Management
Essex Youthbuild regularly reviews its risk management policies, in particular: operational, governance, financial, environmental and compliance risk. All activities in the workshop are risk assessed and no activities of a high-risk nature are undertaken. In addition, Essex Youthbuild maintains various insurances, including employer's liability, public liability, professional indemnity, and contents insurances to a level the Trustees believe to be adequate.
Trustees' Responsibilities in Relation to the Financial Statements
The charity trustees (who are also directors of Essex Youthbuild Limited for the purposes of company law) are responsible for preparing a trustees' annual report and financial statements in accordance with
applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to;
Select suitable accounting policies and then apply them consistently; Observe the methods and principles in the Charities SORP; Make judgements and estimates that are reasonable and prudent; State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement as to disclosure to our auditors ln so far as the trustees are aware at the time of approving our trustees' annual report: ~ There is no relevant information, being information needed by the auditor in connection with
preparing their report, of which the group's auditor is unaware, and ~ The trustees, having made enquiries of fellow directors and the group's auditor that they ought to
have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
By order of the board of trustees
Essex Youthbuild Statistics 1 April 2017 to 31 March 2018
Already on course at Apr 17 New referrals
Total Young People No shows
Place refused
City gt Guilds' Construction Skills
1 or more City gt Guilds' units
CRG L1 Award
COG L1 Certificate
CtkG L1 Diploma
9 16 25 13 2 15 13 8 21
6 5 11 4 8 12 4 2 6 6 0 6
Notes Unrestricted Restricted Designated 2018 funds funds Funds Funds
F 8 8
Total incoming resources
Total resources expended
149,457 22,081
(94,914) 18,922 (75,992) (43,265)
Transfers between funds
Net outgoing resources before other gains and losses (94,914) 18,922 (75,992) (43,265)
Net movement in funds (94,914) 18,922 (75,992) (43,265)
Reconciliation of funds: As at 1 April 2017 194,486 50,000 244,486 287,751
As at 31 March 2018 99,572 18,922 50,000 168,494 244,486
The notes on pages 9 - 13 form part of these financial statements
6, 174 8,232
162,920 244, 544
Restricted income Funds 13 Designated Income Funds Unrestricted Income Funds
18,922 50,000 99,572
168,494 244,486
For the year ended 31 March 2018 the Company was entitled to exemption from Audit under section 477 of the Companies Act 2006
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 responsibility for complying with the requirements of the Act witn respect to accounting records and for the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicabie to Companies subject to small Companies regime.
The Directors declare that they have approved the accounts above.
Signed Russell elhurst
Accounting policies The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the proceeding year.
Basis of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement on Recommended Practice applicable to charities preparing their accounts in accordance with
the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1
January 2015)- (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Cash Flow
The financial statements do not include a cash flow statement because the charity, as a small reporting entity, is exempt from the requirement to prepare such a statement under
Financial Reporting Standard 1 "Cash flow statements".
1.2 Fund accounting Unrestricted funds are available for use at the discretion of the Directors in furtherance of the general objectives of the Charity.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor, or contained in the terms of a grant.
1.3 Incoming resources All incoming resources are included in the statement of financial activities when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:-
Voluntary income is received by way of grants and donations and is included in full when receivable. Unrestricted grants, where entitlement is not conditional on the delivery of a specific performance by the Charity, are recognised when the Charity becomes unconditionally entitled to the grant. Restricted grants are recognised on receipt. Gift Aid recoveries on donations from individuals are recognised in the same period as the donation.
Any donated services and facilities are included at the value to the Charity where this can be quantified. The value of services provided by volunteers (including the Directors) has not been included in these financial statements.
Client contributions and investment income are included when received.
1.4 Resources expended Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes non-recoverable VAT, and is reported as part of the expenditure to which it relates:
Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them and attract funding to sustain them.
Governance costs include those costs associated with meeting the constitutional and statutory requirement of the Charitable Company. This includes the preparation and examination of this annual report and financial statements, and a small portion of staff time on the strategic focus of the Company and servicing Directors meetings.
1.5 Tangible fixed assets and depreciation Fixed assets are stated at cost less accumulated depreciation. The costs of minor additions are not capitalised. Depreciation is provided by the Company to write off the cost of tangible fixed assets by equal instalments over their expected useful lives, as follows:-
Furniture and fittings 25% Reducing balance Equipment 25% Reducing balance
1.6 Operating lease agreements Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charge against profits on a straight line basis over the period of the lease.
2. Income from investments
3. Incoming resources from charitable activities Unrestricted Restricted
Funds Funds Total Funds 2018
6 89,697
53,694 36,003 89,697 161,864
149,239 149,239
Costs directly allocated to activities Staff costs Premises Materials Office Expenses Travel & subsistence Other staff & training costs Project costs Essex County Council Recharge Depreciation Accountancy
3,318 8,237
6. Related Parties There were no related parties.
7. Net Incoming Resources for the period
This is stated after charging: 2018 Total Funds
2017 Total Funds
Wages and salaries Social security costs Other pension costs
2018 6
98,051 7,241
105,787 111,309
Particulars of employees: The average number of employees during the period, calculated on the basis of full-time equivalents, was as follows:
Support Training
2018 3 3
2017 3 3
No employee received remuneration of more than 560,000 during the period
The company made contributions into a defined benefit pension scheme. However, the scheme is a multiple employer scheme and the company is unable to identify its share of the underlying assets and liabilities.
Contributions to the scheme are accounted for on paid basis.
Equipment Fixtures & Fittings
Cost At 1 April 2017 Additions At 31 March 2018.
Depreciation At 1 April 2017 Charge for the year At 31 March 2018
Net book values At 31 March 2018
42, 721
42, 721
38,517 1,051
8,290 12. Commitment under operating leases
At 31 March 2017 the company had annual as set out below
commitments under non-cancellable operating leases
2018 6
2017 8
Restricted income funds
Fowler Smith and Jones PCFC Jack Petchey Awards Tool Station Essex Community Foundation Chelmsford Round Table Co-Op Local Causes
Balance at 01/04/2017
6 6 (1,922)
Designated Funds Funds have been set aside to take Essex Youthbuild Ltd. Going Concern The charity is operating on a going
into consideration the dilapidations of the rented building that houses
concern basis
16. Previous year SOFA Notes Unrestricted Restricted Designated 2017
funds funds funds Funds 6 K 6 6
Incomin resources Incoming resources
Total incoming resources
Total resources expended
4/5 93,271 114,058
93,271 114,058 207,329
(43,265) (43,265)
Net outgoing resources before other gains and losses (43,265) (43,265)
Net movement in funds (43,265) (43,265)
Reconciliation of funds: As at 1 April 2016 237,751 50,000 287,751
As at 31 March 2017 194,486 50,000 244, 486
I report on the accounts of Essex Youthbuild Ltd for the year ended 31 March 2018 which are set out on pages 7 to 13. Respective responsibilities of trustees and examiner The Charity's Trustees are responsible for the preparation of the accounts. The Charity's Trustees consider that an audit is not required for this year (under section 144 (2) of the Charities Act 2011 (The Act) but that an independent examination is needed.
It is my responsibility to: Examine the accounts under section 145 of the Charities Act,
To follow the procedures laid down in the General Directions given by the Charity Commissioners (under section 145(5)(b) of the Charities Act, and
To state whether particular matters have come to my attention.
Basis of independent examiner's Statement My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes considerations of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the accounts.
Independent examiner's statement In the course of my examination, no material matters have come to my attention which
gives me cause to believe that in, any meterial respect:
the accounting records were not kept in accordance with section 130 of the Charities Act; or
the accounts did not accord with the accounting records; or
the accounts did not comply with the applicable requirements concerning the form and contennt of the accounts set out in the Charities (Accounts and
Reports) Regulations 2008 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.
I have come across no other matters in conncetion 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.
Shelley-Marie Rudling FMAAT MIP f on behalf of: Community360 Winsley's House, High Street, Co chester, ssex Date@ 4 g~/ Xl'II.