2022-03-31-accounts

COMPANY REGISTRATION NUMBER 3344871 CHARITY REGISTRATION NUMBER 1062281

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE FINANCIAL STATEMENTS

31 MARCH 2022

CHALMERS & CO (SW) LIMITED

Chartered accountants & statutory auditor Trading as Chalmers & Co.

6 The Linen Yard South Street Crewkerne Somerset TA18 8AB

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

CONTENTS	PAGES
Legal and administrative details	1
Trustees annual report	2 to 5
Independent auditor's report to the members	6 to 9
Statement of Financial Activities	10
Statement of Financial Position	11
Statement of Cash Flows	12
Notes to the financial statements	13 to 21
The following pages do not form part of the financial statements
Detailed income and expenditure account	23 to 24

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

LEGAL AND ADMINISTRATIVE DETAILS

Charity number	1062281
Company registration number	3344871
The board of management
and trustees	A Singleton
	C Saxby
	S Jackson
	M Best
	A Cooper – Appointment ceased 29thMarch 2022
	D Pittard
	T Farrington – Resigned 9thAugust 2021
	Nicholas Sale – Appointed 1stOctober 2021
Company secretary	S Frackiewicz
Registered office	Henhayes
	South Street
	Crewkerne
	Somerset
	TA18 7LZ
Auditor	Chalmers & Co (SW) Limited
	Chartered Accountants
	& Statutory Auditor
	Trading as Chalmers & Co.
	6 The Linen Yard
	South Street
	Crewkerne
	Somerset
	TA18 8AB
Bankers	Lloyds Bank PLC
	37 Market Square
	Crewkerne
	Somerset
Solicitors	BPL Solicitors Ltd
	1st Floor
	Mansion House
	Princes Street
	Yeovil
	Somerset
	BA20 1EP

- 1 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT

YEAR ENDED 31 MARCH 2022

The trustees, who are also directors for the purposes of company law, have pleasure in presenting their report and the financial statements of the charity for the year ended 31 March 2022.

REFERENCE AND ADMINISTRATIVE DETAILS

Reference and administrative details are shown on page 1 of the financial statements. The company trades under the name of Crewkerne Aqua Centre.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The company was formed on 3 April 1997 and is governed by its Memorandum and Articles of Association. Registration as a charity was obtained on 9 May 1997. There are no subsidiary undertakings.

The financial statements have been prepared in accordance with the accounting policies set out in note 3 to the financial statements and comply with the charity’s memorandum and articles of association, the Charities Act 2011, the Companies Act 2006 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (Charities SORP (FRS102)).

The trustees who served the charity during the year were as follows: Claire Saxby Angela Singleton Mike Best Anthony Cooper – Appointment ceased 29[th] March 2022 Sandra Jackson David Pittard Nicholas Sale – Appointed 1[st] October 2021

In accordance with clause 47 of the Articles of Association, David Pittard and Claire Saxby are due to retire by rotation and offer themselves for re-election at the AGM.

The following organisations can appoint a representative to the board of management: Crewkerne Town Council. The board of management may also appoint any member of the company as a general member of the board and their appointment is then voted on at the AGM. The minimum and maximum number of trustees (and directors) is 5 and 12 respectively of whom no more than 10 may be general members and no more than 2 may be nominated members. Trustee training is provided on an ad-hoc basis as required.

Day to day management tasks are delegated to the centre manager and overseen by the trustees, however all decisions affecting the charity are ultimately decided by the members of the board.

No trustee has or had during the year or at the end of the year any beneficial interest in any material contract with the company, which was or is significant in relation to the company's business. There is an insurance policy providing liability cover for the trustees and officers of the company. The cost of this policy for the year is £445 (2021 £445). This amount is included with other insurance costs shown on page 21.

- 2 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT

YEAR ENDED 31 MARCH 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

The company has no issued share capital and is limited by guarantee of its members, each member guarantees £1 on the winding up of the company. Each trustee is also a member of the company. In accordance with the provisions of the Health and Safety at Work Act 1974 the company has issued a written statement of its general policy with regard to health and safety at work of its employees and the organisational arrangements for carrying out that policy. The statement has been brought to the attention of the company's staff.

OBJECTIVES AND ACTIVITIES

The main objective and principal activity of the charity is the management of the Crewkerne Aqua Centre operating from Henhayes, South Street, Crewkerne, Somerset. The Crewkerne Aqua Centre includes a swimming pool, healthy lifestyle centre and fitness studio. There have been no significant changes in the objectives or activities of the charity.

When planning the activities for the year, the trustees have considered the Charity Commission’s general guidance on public benefit and, in particular, the specific guidance for charities for the advancement of health and education. The trustees believe the activities carried out in the facilities clearly demonstrate the charity’s commitment to providing an identifiable public benefit and that access to this benefit is not restricted in any way.

The trustees have reviewed the company’s current trading position and believe that it has sufficient resources and is well placed to manage its business risks successfully. After making enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The trustees have also considered the effects of the Covid-19 pandemic on the company’s operations, in particular the loss of revenue from the closure of the entire Centre. Steps have been taken to limit the impact on profitability and cash flow. Furthermore, forecasts have been prepared which factor in these impacts and demonstrate that the company is well placed to continue trading for more than 12 months from the date of approval of these accounts, subject to any unforeseen Covid restrictions set down by the Government. Accordingly, the trustees continue to adopt the going concern basis in preparing the accounts.

The trustees are very grateful and extend their thanks to the volunteers who give freely of their time to assist the running of the Centre. During the year volunteers gave approximately 1,100 hours of time free of charge to the charity. The value of this time is not reflected in the Statement of Financial Activities but goes a long way to ensuring that the charity is able to run the Centre at a surplus and to securing the future of the Centre for the community.

ACHIEVEMENTS AND PERFORMANCE

The Aqua Centre continues to be successful and has remained price competitive in the local leisure provision.

- 3 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT

YEAR ENDED 31 MARCH 2022

FUTURE DEVELOPMENTS

The company remains committed to providing a first-class community leisure and health facilities in Crewkerne for the benefit of the town and district. The company will continue to monitor, assess and seek other opportunities which may present themselves, subject to these being commercially viable and in the interests of the community. From its opening in 1997 the company continues in its program of refurbishments and renewals at the Centre.

FINANCIAL REVIEW

Total incoming resources were £645,553 (2021 £296,880), with the majority of income arising from the fitness centre and swimming admission fees as disclosed further in note 15. Total resources expended were £587,658 (2021 £476,875), the major categories of expenditure being staff costs and premises running costs, as disclosed further in note 16.

Net funds therefore increased by £57,895 (2021 decreased by £179,995). Cash at bank and in hand at the year-end was £328,018 (2021 £214,575) as disclosed in note 8 on page 18.

The grant paid of £19,906 (2021 £19,906) as shown in note 4 is being funded out of operations. It is payable to Crewkerne Town Council in lieu of additional rent on the property from which the Crewkerne Aqua Centre is operated.

The reserves at the year end stand at £598,565 all of which are unrestricted reserves.

The committee's policy on reserves is to maintain sufficient reserves for the charity to continue to meet its ongoing commitments and to provide financial stability and the means for the development of the principal activity. The charity does not aim to hold substantial reserves. The trustees consider the level of reserves shown on page 11 to be sufficient to meet the periodic maintenance of the pool, fitness centre and building and also the replacement and maintenance of machinery.

INVESTMENT POLICY

It is the trustees' policy to invest surplus cash funds in a high interest account whilst allowing access to those funds as necessary to meet expenditure as it arises.

TAXATION STATUS

The charity is a registered charity and the results of its normal activities are not liable to corporation tax.

RISK MANAGEMENT

The trustees have considered the major risks to which the charity is exposed. They have reviewed those risks and established systems and procedures to minimise those risks and manage them appropriately.

INDEPENDENT AUDITORS

A resolution to reappoint Chalmers and Co (SW) Limited as auditors for the ensuing year and to authorise the trustees to fix their remuneration will be proposed at the annual general meeting.

- 4 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

TRUSTEES ANNUAL REPORT

YEAR ENDED 31 MARCH 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees, who are also trustees of Crewkerne Leisure Management Limited for the purposes of company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

• 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 charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

• there is no relevant audit information of which the charitable company's auditors are unaware; and

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

SMALL COMPANY PROVISIONS

This report has been prepared in accordance with the special provisions applicable to companies entitled to the small companies’ exemptions.

Registered office: Signed by order of the trustees Henhayes South Street Crewkerne Somerset TA18 7LZ A SINGLETON Trustee

Approved by the trustees on 6 September 2022.

- 5 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITORS REPORT OF THE TRUSTEES OF

CREWKERNE LEISURE MANAGEMENT LIMITED

Opinion

We have audited the financial statements of Crewkerne Leisure Management Limited (the charity) for the year ended 31 March 2022 which comprise the Statement of Financial Activity (including the Income and Expenditure Account), Statement of Financial Position, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements;

• give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources, application of resources, including its income and expenditure, profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

• the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

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

Other information

The other information comprises the information in the Annual Report other than the financial statements and our Auditors’ Report thereon. The trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

- 6 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITORS REPORT OF THE TRUSTEES OF

CREWKERNE LEISURE MANAGEMENT LIMITED

If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• the information given in the trustees’ report is inconsistent in any material respect with eth financial statements: or

• sufficient accounting records have not been maintained; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on pages 4 and 5, the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

The trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather than the Companies Act 2006. Accordingly, we have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

- 7 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITORS REPORT OF THE TRUSTEES OF

CREWKERNE LEISURE MANAGEMENT LIMITED

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have considered the following:

• The nature of the industry and the sector, control environment and business performance

• Results of our enquiries of management and directors in relation to their own identification and assessment of the risks of irregularities within the company: and

• Any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures relating to identifying, evaluation and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the interna controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the areas of high risk to be in relation to revenue recognition. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.

We have also obtained an understanding of the legal and regulatory frameworks that eh company operates in, focussing on provisions of those laws and regulations that had a direct on the determination of material amounts and disclosures within the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Financial Reporting Standard 102 and UK Tax Legislation. In addition, we considered the provision of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental for the Group’s ability to operate or avoid a material penalty. The included health and safety regulations; employment legislation; and data protection laws.

Our audit procedures performed to respond to the risks identified included, but were not limited to:

• Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;

• Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

• Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;

• Review of board minutes;

• Identifying and testing journal entries, evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud; and

• Challenging assumptions and judgements made by management in their significant accounting estimates.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

- 8 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITORS REPORT OF THE TRUSTEES OF

CREWKERNE LEISURE MANAGEMENT LIMITED

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for instance, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at

https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-thefi/description-of-the-auditor%E2%80%99s-responsibilities-for

This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor’s Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

CHALMERS & CO (SW) LIMITED

Chartered Accountants & Statutory Auditors

Trading as Chalmers & Co 6 The Linen Yard South Street Crewkerne Somerset TA18 8AB

6 September 2022.

- 9 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

STATEMENT OF FINANCIAL ACTIVITES INCLUDING THE INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 31 MARCH 2022

				Total
		Unrestricted	Restricted	Funds	Total Funds
		Funds	Funds	2022	2021
	Note	£	£	£	£
INCOMING RESOURCES
Incoming resources from generated
funds
Trading Activities	15	555,854	-	555,854	150,018
Investment income	15	28	-	28	68
Other incoming resources	15	89,671	-	89,671	146,794
		------------------------------------	------------------------------------	------------------------------------	------------------------------------
TOTAL INCOMING RESOURCES		645,553	-	645,553	296,880
		------------------------------------	------------------------------------	------------------------------------	-----------------------------------
RESOURCES EXPENDED
Cost of Trading Activities	16	543,017	-	543,017	436,944
Other resources expended	16	36,039	-	36,039	32,955
Governance costs	16	8,602	-	8,602	6,976
		------------------------------------	------------------------------------	------------------------------------	------------------------------------
TOTAL RESOURCES EXPENDED		587,658	-	587,658	476,875
		------------------------------------	------------------------------------	------------------------------------	-----------------------------------
NET INCOMING RESOURCES
Reconciliation of funds		57,895	-	57,895	(179,995)
Balance brought forward at 1 April 2021		540,670	-	540,670	720,665
		-----------------------------------	-----------------------------------	-----------------------------------	-----------------------------------
Balance carried forward at 31 March 2022		598,565	-	598,565	540,670
		==============	==============	==============	==============

The results for the year derive from continuing activities and there are no gains or losses other than those shown above.

The notes on pages 13 - 21 form part of these financial statements.

- 10 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

STATEMENT OF FINANCIAL POSITION

YEAR ENDED 31 MARCH 2022

		2022		2021
	Note	£	£	£
FIXED ASSETS
Tangible assets	6		100,492	116,211
			-------------------------------	-------------------------------
CURRENT ASSETS
Stocks		14,612		14,035
Debtors	7	202,774		224,493
Cash at bank and in hand	8	328,018		214,575
		------------------------------------		------------------------------------
		545,404		453,103
CREDITORS: Amounts falling due within one
year	9	47,331		28,644
		------------------------------------		-----------------------------------
NET CURRENT ASSETS			498,073	424,459
			------------------------------------	------------------------ -----------
TOTAL ASSETS LESS CURRENT LIABILITIES			598,565	540,670
			====================================	====================================
FUNDS	11
Restricted			-	-
Unrestricted			598,565	540,670
			------------------------------------	------------------------------------
MEMBERS' FUNDS			598,565	540,670
			====================================	====================================

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

These financial statements were approved by the trustees and authorised for issue on 6 September 2022 and are signed on their behalf by:

C SAXBY M BEST Trustee Trustee

Company Registration Number: 3344871 Charity Registration Number: 1062281

The notes on pages 13 - 21 form part of these financial statements.

- 11 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

STATEMENT OF CASH FLOWS

YEAR ENDED 31 MARCH 2022

			2022	2021
	Note		£	£
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			57,895	(179,995)
Adjustments for:
Depreciation of tangible fixed assets			21,346	22,548
Net losses on fixed assets			1,477	1,085
Accrued expenses			-	-
Changes in:
Stocks			(577)	614
Trade and other debtors			21,719	10,220
Trade and other creditors			18,687	(39,194)
			----------	-------------
Cash generated from operations			120,547	(184,722)
			----------	-------------
Net cash from operating activities			120,547	(184,722)
			=======	========
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible assets			(7,104)	(1,509)
Disposal of tangible assets			-	-
			----------	----------
Net cash used in investing activities			(7,104)	(1,509)
			======	======
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings			–	-
			---------	------------
Net cash used in financing activities			–	-
			=====	========
Net increase in cash and cash equivalents			113,443	(186,231)
Cash and cash equivalents at beginning of year			214,575	400,806
			-------------	-------------
Cash and cash equivalents at end of year		8	328,018	214,575
			========	========

The notes on pages 13 - 21 form part of these financial statements.

- 12 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

1. General Information

The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office and principal place of business is Henhayes, South Street, Crewkerne, Somerset, TA18 7LZ.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102 ‘The Financial Reporting Standard applicable in the UK and the Republic of Ireland’, the 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) (Charities SORP (FRS 102)), the Companies Act 2006 and the Charities Act 2011.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on the historical cost basis.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity’s ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal.

Designated funds are unrestricted funds earmarked by the trustees for particular future projects or commitments.

Income tax

The company is a registered charity. As such the company has obtained confirmation from HM Revenue and Customs that corporation tax is not payable on the profits generated.

- 13 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

3. ACCOUNTING POLICIES (continued)

Incoming resources

The incoming resources shown in the Statement of Financial Activities represents amounts derived from ordinary activities receivable during the year. The charity is not registered for VAT.

Incoming resources are included gross and are accounted for once the charity has entitlement to the resources, it is certain that the resources will be received, and the monetary value of the incoming resources can be measured with sufficient reliability. Incoming resources received in respect of future periods are deferred to that period.

Activities income from trading include all monies received for swimming and fitness centre admission fees and membership and other sundry sales relating to the principal activities of the charity, for instance the sale of swimming accessories. Monies are included in full in the Statement of Financial Activities when receivable.

Investment income includes bank interest and is included when receivable.

Other incoming resources include all income which cannot be allocated directly to the other income categories.

Grants receivable

All grants receivable are credited to the income and expenditure account as incoming resources. Where a restriction is placed on the use of the grant, the amount of the grant is included in restricted funds.

Resources expended

Resources expended are shown gross and are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and costs are allocated directly to the category to which they relate. Where this allocation is not possible costs are allocated within "other resources expended ".

Costs of trading activities include all costs directly relating to the principal activities of the charity including the running costs of the building from which the charity operates and the direct wages costs needed to enable the charity to operate.

Other resources expended comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include the preparation and examination of statutory accounts and legal advice to trustees on governance or constitutional matters.

Also included are all costs which cannot be allocated directly to the other expense categories. All support costs are included within ‘other resources expended’.

- 14 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

3. ACCOUNTING POLICIES (continued)

Pension Costs

The company operates a defined contribution pension scheme for certain employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Pension costs are charged to the Statement of Financial Activities as incurred and represent contributions payable by the company.

Grants paid

Grants paid of a revenue nature are charged in the period of expenditure. Grants paid of a capital nature, to obtain future benefit for the company, are treated as prepaid expenditure and released to expenditure over the expected benefit period. The grant disclosed in note 16 is in lieu of additional rent for the use of the premises.

Volunteer costs

The charity keeps its wages costs to a minimum by using volunteers for some reception and administrative duties. The deemed cost of the volunteers’ services has not been calculated and included in the accounts as this would be very time consuming and not considered by the trustees to be cost effective or beneficial to the charity.

Value Added Tax

The charitable company is not registered for VAT. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Fund Accounting

Restricted funds are where grants or donations are received by the charity which must be used for a specific purpose, this income is shown as restricted funds and only the expenditure which is in accordance with the purpose of the grant is allocated against these funds.

Unrestricted funds are general accumulated funds of the charity that are not subject to any restrictions regarding their use and are available for application on the general purposes of the charity. These funds are used in achieving any of the objectives of the charity as decided by the trustees.

Fixed assets

All fixed assets are initially recorded at cost and subsequently stated at cost less any accumulated depreciation and impairment losses. Expenditure under £250 is charged to the Statement of Financial Activities in the year of purchase.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Leasehold Property Improvements - straight line over the remaining period of the lease

Plant & Machinery- 25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist.

- 15 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

3. ACCOUNTING POLICIES (continued)

Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or group of assets

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. Cost includes all costs of purchase and other costs incurred bringing the total to its present location and condition.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against income on a straight-line basis over the period of the lease.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Cash and Cash equivalents

Cash and cash equivalents comprise bank balances including cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less which are available on demand. These are carried in the Balance Sheet at face value.

4. GRANTS PAID

During the year a grant totalling £19,906 (2021 £19,906) was released to the Statement of Financial Activities. A grant, totalling £572,298, was originally paid to the Crewkerne Town Council in the 2005 and 2006 accounting years. A proportion is released annually to this company’s accounts over the lease term of the property.

5. OPERATING SURPLUS

Operating surplus is stated after charging:

	2022	2021
	£	£
Depreciation of owned fixed assets	21,346	22,548
Loss on disposal of fixed assets	1,477	1,085
Auditor’s fees – audit	4,100	4,330
Auditor's fees – other services	870	1,274
	==========================	==========================

- 16 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

6. TANGIBLE ASSETS

TANGIBLE ASSETS
	Leasehold	Plant &
	Property	Machinery	Total
	£	£	£
COST
At 1 April 2021	115,615	131,751	247,366
Additions	-	7,104	7,104
Disposals	-	(9,587)	(9,587)
	-----------------------------	------------------------------------	------------------------------------
At 31 March 2022	115,615	129,268	244,883
	===========================	====================================	====================================
DEPRECIATION
At 1 April 2021	30,662	100,493	131,155
Charge for the year	12,119	9,227	21,346
On disposals	-	(8,110)	(8,110)
	-----------------------------	-------------------------------	-------------------------------
At 31 March 2022	42,781	101,610	144,391
	===============================	===============================	===============================
NET BOOK VALUE
At 31 March 2022	72,834	27,658	100,492
	===============================	===============================	===============================
At 31 March 2021	84,953	31,258	116,211
	===============================	===============================	===============================

No property is shown in the Fixed Assets of the Company, as the property from which the Company operates is owned by Crewkerne Town Council. Rent is paid at the agreed rate of £1,200 per annum. This was not paid this year due to a Covid-19 rent holiday.

7. DEBTORS

	2022	2021
	£	£
Trade debtors	4,750	14,027
Prepayments and accrued income	198,024	210,466
	------------------------------------	------------------------------------
	202,774	224,493
	====================================	====================================

The debtors above include the following amounts falling due after more than one year:

	2022	2021
	£	£
Prepayments and accrued income	159,248	179,154
	====================================	====================================

- 17 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

8 . Cash equivalents

Cash equivalents comprise the following:

	2022	2021
	£	£
Cash at bank and in hand	328,018	214,575
	====================================	====================================
CREDITORS: Amounts falling due within one year
	2022	2021
	£	£
Trade creditors	10,832	6,888
PAYE & NIC	5,150	2,521
Accruals and deferred income	31,349	19,235
	-------------------------------------	-------------------------------------
	47,331	28,644
	====================================	====================================

9 . CREDITORS: Amounts falling due within one year

10 . COMMITMENTS UNDER OPERATING LEASES

At 31 March 2022 the charity had aggregate commitments under non-cancellable operating leases as set out below.

ut below.
	2022	2021
	£	£
Operating leases which expire:
After 5 years	9,600	10,800
	===============================	===============================

No rent was paid this year due to a Covid-19 rent holiday.

11 . ANALYSIS OF NET ASSETS (between restricted and unrestricted funds)

	Tangible
	fixed assets Other net assets		Total
	£	£	£
Unrestricted Funds	100,492	498,073	598,565
Restricted funds	-	-	-
	-----------------------------	------------------------------------	------------------------------------
	100,492	498,073	598,565
	=============================	====================================	====================================

- 18 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

12 . RELATED PARTY TRANSACTIONS

During the year the company paid £1,468 to Paperchase Recycling for collection of waste materials to be recycled. Paperchase Recycling is a business of which the son of Mrs A Singleton, a trustee of this charity, is the proprietor. The transactions were undertaken at arm's length and are considered by the trustees to represent best value.

Indemnity insurance is held by the charity in respect of, and on behalf of, the trustees. Premiums paid in the year amount to £445.

No remuneration or expenses have been paid to the trustees during the year.

13 . COMPANY LIMITED BY GUARANTEE

The company was incorporated as a company limited by guarantee and has no share capital. The guarantee to the company is £1 per member on the winding up of the company. At 31 March 2022 the company had 30 members and the total amount guaranteed is therefore £30.

14 . STAFF COSTS

STAFF COSTS
	2022	2021
	£	£
Wages and salaries	306,039	282,926
Social security costs	17,945	13,866
Pension costs	4,686	3,710
	-----------------------------------	-----------------------------------
	328,670	300,502
	================	===============

The average number of employees in the year, many of whom are part time, was 23 (2021 - 26). No employees earned in excess of £60,000.

None of the trustees received any remuneration in the year for their work as a trustee.

- 19 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

15 . INCOMING RESOURCES

INCOMING RESOURCES
	Unrestricted	Restricted	Total	Total
	Funds	Funds	2022	2021
			£	£
Income from Trading Activities
Admission fees and sundry sales	362,736	-	362,736	75,558
Direct debit membership fees	193,118	-	193,118	74,460
	--------------------------------------	-----------	--------------------------------------	--------------------------------------
	558,854	-	558,854	150,018
	--------------------------------------	-----------	--------------------------------------	--------------------------------------
Investment income
Bank interest receivable	28	-	28	68
	-----------------------------------	-----------	-----------------------------------	-----------------------------------
Other incoming resources
Membership fees	504	-	504	148
Grants receivable	89,167	-	89,167	146,646
	-----------------------------------	---------------------------	-----------------------------------	-----------------------------------
	89,671	-	89,671	146,794
	-----------------------------------	--------------------------	-----------------------------------	-----------------------------------
	645,553	-	645,553	296,880
	================	===========	================	===============

Incoming resources of £17,944 have been deferred in the year (2021 £9,818). This represents the amount of swim card income and junior swim lesson income received in advance. £9,818 has been released into the income and expenditure account this year from previous years deferred income (2021 £24,738)

Grants receivable consists of Government grant income of £65,432 and Coronavirus Job Retention Scheme income of £21,800. £1,935 was received from SASP, Somerset Activity and Sports Partnership.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

- 20 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

16 . RESOURCES EXPENDED

RESOURCES EXPENDED
	Unrestricted	Restricted	Total	Total
	Funds	Funds	2022	2021
			£	£
Cost of trading activities
Purchases	28,434	-	28,434	13,128
Studio classes	22,931	-	22,931	7,452
Grants paid to Crewkerne Town Council	19,906	-	19,906	19,906
Light, heat and power	54,390	-	54,390	41,568
Water rates	14,064	-	14,064	6,621
Rent	-	-	-	-
Direct wages and NIC	323,984	-	323,984	296,792
Pension Contributions	4,686	-	4,686	3,710
Hire of plant and machinery	1,720	-	1,720	10,020
Insurance	7,067	-	7,067	7,391
Repairs and maintenance	34,756	-	34,756	21,276
Equipment renewals	2,578	-	2,578	153
Staff training	12,944	-	12,944	1,260
Staff uniforms	1,031	-	1,031	263
Subscriptions	13,083	-	13,083	7,404
Travel and subsistence	252		252	-
Advertising	1,191	-	1,191	-
Promotional costs	-	-	-	-
	--------------------------------------	--------------------------------------	--------------------------------------	--------------------------------------
	543,017	-	543,017	436,944
	--------------------------------------	--------------------------------------	--------------------------------------	--------------------------------------
Other resources expended
Telephone	2,754	-	2,754	2,497
Stationery, printing and postage	5,221	-	5,221	1,265
Canteen costs	327	-	327	-
Sundry expenses	959	-	959	602
Legal and professional costs	2,498	-	2,498	3,499
Accountancy fees	1,457	-	1,457	1,459
Depreciation	21,346	-	21,346	22,548
Loss on disposal of assets	1,477	-	1,477	1,085
	-----------------------------------	-----------------------------------	-----------------------------------	-----------------------------------
	36,039	-	36,039	32,955
	-----------------------------------	-----------------------------------	-----------------------------------	-----------------------------------
Governance costs
Auditors Fees	4,970	-	4,970	5,604
Bank charges	3,632	-	3,632	1,372
	-----------------------------------	-----------------------------------	-----------------------------------	-----------------------------------
	8,602	-	8,602	6,976
	-----------------------------------	-----------------------------------	-----------------------------------	----------------------------------
	587,658	-	587,658	476,875
	===============	===============	===============	===============

- 21 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

MANAGEMENT INFORMATION YEAR ENDED 31 MARCH 2022

The following pages do not form part of the statutory financial statements which are the subject of the independent auditor's report on pages 6 to 9.

- 22 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

MANAGEMENT INFORMATION YEAR ENDED 31 MARCH 2022

YEAR ENDED	31 MARCH 2022
	2022		2021
	£	£	£
TURNOVER
Income from principal activities		555,854	150,018
Membership fees		504	148
Grants received		89,167	146,646
		------------------------------------	------------------------------------
		645,525	296,812
		------------------------------------	------------------------------------
COST OF SALES
Opening stock	14,035		14,648
Food & drink purchases	1,387		-
Swimming & gym accessories	10,500		2,995
Chemicals and cleaning materials	17,124		9,520
Studio class costs	22,931		7,452
Grants paid	19,906		19,906
Direct wages	306,039		282,926
NIC on direct labour	17,945		13,866
Pension Contributions	4,686		3,710
Staff training	12,944		1,260
Staff uniforms	1,031		263
Hire of plant and machinery	1,720		10,020
Repairs and maintenance	34,756		21,276
Equipment renewals	2,578		153
	------------------------------------		------------------------------------
	467,582		387,995
Closing stock	(14,612)		(14,035)
	------------------------------------		------------------------------------
		452,970	373,960
		------------------------------------	------------------------------------
GROSS PROFIT/ (DEFICIT)		192,555	(77,148)
		------------------------------------	------------------------------------
OVERHEADS
Light heat and power	54,390		41,568
Water Rates	14,064		6,621
Rent	-		-
Insurance	7,067		7,391
Travel and subsistence	252		-
Telephone	2,754		2,497
Stationery, printing and postage	5,221		1,265
Canteen costs	327		-
Sundry expenses	959		602
Subscriptions	13,083		7,404
Advertising	1,191		-
Promotional costs`	-		-
Legal and professional fees	2,498		3,499
Accountancy fees	1,457		1,459
Auditors’ remuneration	4,970		5,604
	------------------------------------	------------------------------------	------------------------------------
Carried forward	108,233	192,555	77,910

- 23 -

CREWKERNE LEISURE MANAGEMENT LIMITED COMPANY LIMITED BY GUARANTEE

MANAGEMENT INFORMATION YEAR ENDED 31 MARCH 2022

Brought forward	108,233	192,555	77,910
Depreciation	21,346		22,548
Deficit on disposal of fixed assets	1,477		1,085
Bank charges	3,632		1,372
	------------------------------------		------------------------------------
		134,688	102,915
		------------------------------------	------------------------------------
OPERATING PROFIT		57,867	(180,063)
Bank interest receivable		28	68
		------------------------------------	-------------------------------
PROFIT ON ORDINARY ACTIVITIES		57,895	(179,995)
		====================================	===============================

- 24 -