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2021-03-31-accounts

COUNCIL

Report of: Director of Resources

Date: 03 March 2022

ANNUAL REPORT – TENBY AND DISTRICT POOL TRUST 2020-21

Background

The Tenby Pool Trust was established in June 1997 with all land and buildings being vested with Pembrokeshire County Council from that date. The Council, as Trustee, operates the land and buildings as a separate charity thus providing swimming pool facilities to the locality.

The day to day operation of the swimming pool is integrated into other leisure facilities on the site and form part of the Tenby Leisure Centre complex. The Centre is under the management control of Pembrokeshire Leisure Services, the Council’s leisure service operation.

Day to day operations are governed by the County Council’s employment, health and safety, risk management, financial and other corporate policies and procedures.

The net running costs associated with the operation of the swimming pool are financed by a subsidy from the County Council.

Financial Control and Management

The annual budget for the Trust is approved by the County Council as part of its corporate financial planning process. Budget monitoring reports are presented to Members periodically with day to day cost management being exercised by the Tenby Leisure Centre Manager in conjunction with the Head of Cultural, Leisure, Tourism and Registration Services and the Director of Community Services.

Financial & Other Performance

The Trust has operated within the terms of its objectives during the period in question and the operating position, excluding notional financing costs is summarised below:

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2019-20 2020-21
Outturn Outturn
£’000 £’000
Income (263) (212)
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Expenditure 338 295
Subsidy * 75 83
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The actual subsidy for 2020-21 increased by 10.7% from 2019-20 following a 6% increase the previous year.

The leisure centre was closed for a significant part of the year due to Covid-19 which resulted in a reduction in income, which was recovered from Welsh Government as part of the hardship funding.

The net book value of the assets at 31 March 2021 was £1.454m compared to the value at 31 March 2020 of £1.491m. This is due to the depreciation charge for the year.

Statement of Accounts

The Statement of Accounts for the year ending 31 March 2021, see Appendix A, has been prepared in accordance with “Accounting and Reporting by Charities – Statement of Recommended Practice”.

The Statement of Accounts have been audited by an Independent Examiner and are attached for the consideration and approval of Council. The Independent Examiner’s Report is shown on pages 5 and 6 of the Statement of Accounts.

The Charities Act 2011 requires the production of an Annual Report, see Appendix B.

RECOMMENDATION

The Statement of Accounts for 2020-21 for the Tenby and District Pool Trust be approved and signed by the Director of Resources and that the Annual Report 2020-21 be noted.

APPENDIX A

TENBY & DISTRICT POOL REGISTERED CHARITY COUNTY HALL HAVERFORDWEST

STATEMENT OF ACCOUNTS 2020-21

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INDEX PAGE
Introduction 3
Objectives, Third Party Relationships & Policies 3
Statement of Responsibilities 3
Certificate of Director of Resources 4
Independent Auditor’s Report 5
Independent Auditor’s Opinion 6
Explanatory Foreword 7
Summary Outturn 7
Statement of Accounting Policies & Procedures 8-10
Statement of Financial Activities 11-13
Balance Sheet & Notes 14-15
Cash Flow Statement 15
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2

INTRODUCTION

The present Tenby & District Swimming Pool Trust (Registration No. 1064340) was established in June 1997 when all land and buildings were vested in Pembrokeshire County Council, County Hall, Freemans Way, Haverfordwest, Pembrokeshire, SA61 1TP as Trustee who, as a corporate body, operate the land and buildings as a separate charity.

OBJECTIVES, THIRD PARTY RELATIONSHIPS & POLICIES

The objective of the Trust is the provision and maintenance of a swimming pool for the use of the inhabitants of Tenby and the neighbourhood.

The strategic development of the Trust is included in Pembrokeshire County Council Leisure Strategy.

Day to day operations are governed by the County Council’s employment, health and safety, risk management, financial and other procedures.

All loans and investments are made in accordance with the County Council’s treasury management policies and procedures. A separate bank account is not maintained for the Trust. All receipts and payments are made from the County Council’s bank account but being separately recorded in the Council’s and the Trust’s accounts with personal accounts maintained to show the extent of indebtedness of either party at any one time.

STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS The Trustees’ Responsibilities

The Council as Trustee is required:

The Director of Resources Responsibilities

The Director of Resources is responsible for the preparation of the Trust’s statement of accounts which have been prepared in accordance with “Accounting and Reporting by Charities - Statement of Recommended Practice” (SORP).

3

CERTIFICATE OF DIRECTOR OF RESOURCES

The Statement of Accounts of the Tenby Pool Trust for the year ended 31 March 2021 is produced in accordance with the requirements of the Charities Act 2011 and associated regulations.

I certify the accounts present a true and fair position for the year and append my signature to the Statement In accordance with Section 132 (1).

J HASWELL FCCA DIRECTOR OF RESOURCES

Date: 12 August 2021

4

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF TENBY AND DISTRICT SWIMMING POOL TRUST 2020-21

I have completed the independent examination of the Financial Statements of Tenby and District Swimming Pool Trust for the year ended 31 March 2021 which comprise the Statement of Financial Activity, the Balance Sheet, the Cash Flow Statement and the related notes. The Financial Reporting Framework that has been applied is in accordance with appropriate accounting standards and policies.

Prior to the review detailed research was undertaken to obtain a clear understanding of the Trusts Aims and Objectives. This involved discussions with Council Officers and review of various documents and reports. Recent Internal Audit Reports, particularly in relation to Governance and Management, were particularly relevant in providing some assurance that strong governance and management arrangements are well established.

Respective Responsibilities of Trustees and the Independent Examiner

The Trustees are responsible for the preparation of Financial Statements. The Trustees have determined that for this financial year an audit is not required under Section 144 of the Charities act 2011 and that an independent examination is needed.

It is therefore my responsibility as the appointed Independent Examiner to:

Basis of Examiners Statement

5

My examination was carried out in accordance with the general directions given by the Charity Commission. 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 careful consideration of any unusual items or possible discrepancies in the accounts and seeking explanation of such matters.

The procedure undertaken does not provide all the evidence that would usually be required of an audit and consequently no opinion can be given on whether the accounts represent a true and fair view.

Independent Examiners Statement of Opinion

In my opinion the information contained in the Trustees Annual Report, which includes the Tenby & District Swimming Pool Trust Statement of Accounts for 2020-21 is consistent with the Financial Statements provided.

In connection with my examination of the 2020-21 Financial Statements no matter has come to my attention which gives me reasonable cause to believe that in any material respect the requirement to keep accounting records in accordance with Section 130 of the Charities Act or to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met.

Full Name: Matthew Holder

Job Title: Audit, Risk & Counter Fraud Manager Address: Pembrokeshire County Council

County Hall

Haverfordwest

Pembrokeshire

SA61 1TP

Signature

Dated: 02 December 2021

6

EXPLANATORY FOREWORD

The Trust’s accounts for the year 2020-21 are set out on pages 8 to 14. They consist of:

a) Statement of Accounting Policies.

SUMMARY OUTTURN

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Actual Estimate Actual
2019-20 2020-21 2020-21
£ £ £
Expenditure 338,774 358,840 294,707
Income (338,774) (358,840) (294,707)
Net Revenue Expenditure / Nil Nil Nil
(Income)
Capital Expenditure 15,267 Nil Nil
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7

STATEMENT OF ACCOUNTING POLICIES

1. General

The purpose of the Statement is to explain the basis of the figures in the Accounts which is determined by the disclosure policies adopted and the estimation techniques used where required to reflect the economic reality of the transactions.

The accounts shall be prepared in accordance with the latest SORP in respect of Accounting and Reporting by Charities and adhere to the relevant Statements of Standard Accounting Practice, unless otherwise stated.

The accounting policies will be revised as required from those of the previous year to reflect changes in reporting requirements.

2. Tangible Fixed Assets

All fixed assets are vested in Pembrokeshire County Council as Trustee.

All expenditure on the acquisition, creation or enhancements of fixed assets shall be capitalised on an accruals basis in the accounts provided that the fixed asset yields benefits to the authority and the services it provides for a period of more than one year. Nonstructural repairs and maintenance of fixed assets shall be charged directly to service revenue accounts.

Valuation

Fixed asset values shall be estimated on the basis recommended by CIPFA and in accordance with the Statements of Asset Valuation Principles and Guidance Notes issued by the Royal Institution of Chartered Surveyors (RICS).

Land, operational property and other operational assets are included in the balance sheet at the lower of net realisable value in existing use or depreciated replacement cost.

The valuation of assets shall be undertaken within a 5-year period on a rolling basis, changes to values being made in the year they arise.

8

The assets are valued by the Council’s Chief Property Officer.

Any assets acquired for non-cash consideration shall be included in the balance sheet at fair value.

Impairment

Fixed assets other than non-depreciable land shall be reviewed for impairment at the end of each reporting period when either:

Depreciation

Depreciation shall be provided for on all material assets with a finite useful life.

The straight-line method of depreciation is normally used to estimate depreciation. The assets are normally valued by the Council’s Property Division.

The transfer between Restricted Capital Funds to Unrestricted Revenue Funds of £37,024 represents the depreciation charge for 2020-21.

Asset Lives

The remaining useful asset lives shall be estimated and, if deemed necessary, amended to reflect the amount of economic benefit remaining to be provided by tangible fixed assets. Asset lives shall be determined taking into account the number, age, obsolescence, if relevant type of construction, condition, repair and enhancement. Estimates of remaining useful live shall be made annually if deemed appropriate and each time the asset is revalued.

De Minimis Expenditure

With the exception of certain minor works, expenditure of less than £10,000 shall not be capitalised normally unless specific approval is given by the issue of a specific borrowing or grant approval.

Enhancement Expenditure

The value of the appropriate fixed asset shall be increased by any expenditure that enhances its value in the year.

3. Loans, Investments and the Basis of Charges Made for Repaying Debt

Borrowing and the temporary investment of surplus funds shall be arranged as part of the County Council’s overall treasury management activity.

Any surplus funds shall be invested with Pembrokeshire County Council.

Any sums due in respect of loans to finance activities of the Trust shall be charged to its revenue account.

Interest, as is appropriate, will be charged or credited to revenue account.

9

4. Accrual of Income & Expenditure

Employee Costs - salaries and wages shall be charged against the periods to which they relate and if necessary estimated accruals made using previous pay periods as a basis.

Supplies and services - a system of accruals and converted payments is operated. Creditors will be accrued by cut off payments at the end of a predetermined period of the following year and by the inclusion of estimates for significant items remaining outstanding at this time based on quotations or past costs. An exception to this principle relates to electricity and similar quarterly payments which are charged at the date of meter reading rather than being apportioned between financial years. This policy shall be consistently applied each year and therefore does not have a material effect on any year’s accounts. Interest due but not paid shall be accrued in accordance with best practice.

Income - normally all income due shall be accounted for at the due dates.

5. Stocks

Stocks will be valued in accordance with the SORP at the lower of cost or net realisable value.

6. Debtors

Debtors will be reviewed periodically throughout each year and a bad debts provision established if deemed appropriate.

7. Reserves

A Capital Development Fund shall be maintained for major repairs and replacements of fixed assets. Additional contributions from operating surpluses shall be appropriated to the Capital Development Fund.

8. Budget Surplus/Deficit

A balanced budget shall be set each year and budget monitoring measures put in place to ensure potential deficits are detected early and action planned to regularise the position.

9. Group Accounts

Since 2014-15 Tenby Trust Accounts have been consolidated into Pembrokeshire County Council’s Statement of Accounts in accordance with the Code.

10

STATEMENT OF FINANCIAL ACTIVITIES

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2019-20 1 April 2020 to 31 March 2021
Total Unrestricte Unrestricted Restricted Restricted Total Funds
Funds d Revenue Capital Capital Funds Capital
Funds Funds Loans
£ £ £ £ £ £
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2019-20 1 April 2020 to 31 March 2021 1 April 2020 to 31 March 2021 1 April 2020 to 31 March 2021 1 April 2020 to 31 March 2021 1 April 2020 to 31 March 2021
Total
Funds
£
Unrestricte
d Revenue
Funds
£
Unrestricted
Capital
Funds
£
Restricted
Capital Funds
£
Restricted
Capital
Loans
£
Total Funds
£
Tenby Pool - Fees &
Charges
Operating Activities

Furthering the
Charitable
Objectives
Admissions
Lessons
School Hire
Vending & Servery
Sales

Other Incoming
Resources
Grants Received
(122,629
)
(40,239)
(80,088)
(12,198
)
(83,62
(13,124)
(2,817)
(80,088)
(295)
(84,163
)
(114,220)
(13,124)
(2,817)
(80,088)
(295)
(84,163)
(114,220)

11

Covid Funding 0) -
TOTAL INCOMING
RESOURCES
(338,77
4)
(294,707) - - - (294,707
)
Tenby Pool -
Expenditure
Operating Activities

Grants Payable

Furthering the
Charitable
Objectives
Stafng (Note 5)
Premises (Note 7)
Vending & Servery
Other
Depreciation

Support Costs(Note
6)
Nil
237,829
81,715
7,491
1,45
9
40,026
10,280
Nil
228,383
56,83
6
291
430
37,024
8,767
Nil
228,383
56,83
6
291
430
37,024
8,767
TOTAL RESOURCES
EXPENDED
378,800 331,731 - - - 331,731
NET INCOMING /
(OUTGOING)
RESOURCES BEFORE
TRANSFERS
(40,026
)
(37,024) - - - (37,024)
TRANSFERS BETWEEN
FUNDS
Nil 37,024 - (37,024) - Nil
NET INCOMING
RESOURCES BEFORE
REVALUATIONS &
INVESTMENT ASSET
DISPOSALS
(40,026
)
Nil - (37,024) - (37,024)
GAINS & LOSSES ON
REVALUATIONS &
DISPOSALS
Nil - - - - Nil
NET MOVEMENT IN
FUNDS
(40,02
6)
- - (37,024) - (37,024
)
FUNDS BROUGHT
FORWARD
1,547,6
28
1,460 1,046 1,505,096 - 1,507,602
FUNDS CARRIED
FORWARD
1,507,60
2
1,460 1,046 1,468,072 - 1,470,578

Notes to Statement of Financial Activities

  1. The grant receivable represents the contribution made to the Trust by the County Council for the year. This has increased to £84,163 for 2020-21 (£83,620 for 2019-20). In addition the Trust received £114,220 Covid funding.

  2. Neither the Trustees nor any person connected with them have received any remuneration from the Trust.

  3. Neither the Trustees nor any person connected with them have received any payment towards expenses from the Trust.

12

  1. There are no members of staff directly employed at Tenby Pool receiving emoluments in excess of £60k per annum.

5. Analysis of staff costs

5. Analysis of staf costs
2019-20 2020-21
£ £
Gross Pay 190,263 182,706
Employer’s National Insurance 14,270 13,703
Employer’s Superannuation 33,296 31,974
Total 237,829 228,383
Full Time Equivalents 7. 7.4
4
The leisure centre was closed for a signifcant part of the year due to Covid-19
which resulted in a reduction of casual hours.
6. Analysis of support costs:
Personnel1 6,030 4,965
Accountancy 1,370 1,090
Training & Development 1,410 1,177
External Examiners Fees 0 0
Insurance Admin 1,310 1,371
Creditor Payments 160 164
Total 10,280 8,767

1 Includes Personnel, Payroll and Union Duties

The decrease in support costs of 14.7% was primarily due to a reduction within staffing costs.

7. Premises Expenditure

**7. ** Premises Expenditure 2019-20
2020-21
£
£
Utilities 52,446 40,694
Chemicals & Cleaning 10,038 6,958
Building Repairs 11,886 5,298
Equipment 5,182 1,721
Insurance 1,660 1,660

13

Telephone 503 505 Licence Fees 0 0 Total 81,715 56,836

503 505 0 0

This year has seen a significant decrease in premises expenditure, primarily due to the closure of the pool for a significant part of the year as a result of Covid-19 restrictions.

  1. Transfers between funds relate to depreciation charges for 2020-21.

BALANCE SHEET AS 31 MARCH 2021

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2019-20 2020-21
£ £ £ £
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14

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FIXED ASSETS
Tangible Fixed Assets
Freehold Land 9,680 9,680
Freehold Buildings
- Gross Value 1,520,998 1,480,972
- Depreciation 1 (40,026) (37,024)
- Net Value 1,480,972 1,490,652 1,443,948 1,453,628
Equipment
- Gross Value 177,797 177,797
- Depreciation 1 (177,797) Nil (177,79 Nil
- Net Value 7)
TOTAL NET FIXED ASSETS 1,490,652 1,453,6
28
CURRENT ASSETS &
LIABILITIES
Current Assets 3,501 3,210
Stocks 1 Nil
Debtors 2 17,048 17,329
Investments Nil Nil
Cash In Transit 20,550 20,539
Current Liabilities
(3,600) (3,589)
Trade Creditors
Nil Nil
Cash Received In Advance (3,600) (3,589)
TOTAL NET CURRENT 16,950 16,950
ASSETS
TOTAL NET ASSETS 1,507,602 1,470,578
FUNDS & CAPITAL ACCOUNTS
Capital Adjustment Account 325,695 317,553
Revaluation Reserve 1,164,957 1,136,075
Capital Development Fund 14,444 14,444
Unrestricted Funds
Reserve Fund (Revenue) 1,460 1,460
Reserve Fund (Capital) 1,046 1,046
1,507,602 1,470,578
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Notes to Balance Sheet

  1. Analysis of movement of fixed assets :

15

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2019-20 2020-21
Land & Equipment Land & Equipment
Buildings £ Buildings £
£ £
Gross Assets
Balance B/fwd 1,610,730 177,797 1,625,997 177,7
97
Revaluation Nil Nil Nil Nil
Additions 15,267 Nil Nil Nil
Balance C/fwd 1,625,997 177,797 1,625,997 177,797
Accumulated
Depreciation &
Impairment
80,052 177,797 135,345 177,797
Balance B/fwd
Depreciation 40,026 Nil 37,024 Nil
charge for Year
Impairment charge 15,267 Nil Nil Nil
for year
Balance C/fwd 135,345 177,797 172,369 177,797
Net Assets 1,490,652 Nil 1,453,628 Nil
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CASH FLOW STATEMENT

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2019-20 2020-21
£ £ £ £
Net Inflow/(Outflow) Per Statement of (40,026) (37,024)
Resources 40,02 37,02
Add back: Depreciation 6 4
Nil Nil
Decrease/ (Increase) in:
Stocks (999) 291
Debtors (1) 1
Cash In Transit Nil (1,000) Nil 292
Increase / (Decrease) in:
Creditors (2,138) (11)
Income in Advance Nil (2,138) Nil (11)
Movement in Cash In Year (3,138) 281
Balance Brought Forward 20,186 17,048
Balance Carried Forward 17,048 17,329
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16

PRIVATE AND CONFIDENTIAL

Report Issued to: Nicola Lewis, Deputy Chief Finance Officer

Report Copied to: Jon Haswell, Director of Resources

Auditor: Siân Morris, Assurance Officer

Report Issued to: Sarah Edwards, Deputy Chief Finance Officer

Internal Audit Report 21021 (2021-22) No: Report Copied to: Assurance Rating: Substantial Richard Brown, Interim Chief Executive Fieldwork 25 August 2021 Completed: Draft Report: 26 August 2021 Management Rationale for Audit: Comments: Compliance with Statutory Regulations Final Report Issued:

Audit, Risk & Information Service 2021-22

Introduction and Objectives

An audit review to verify Tenby & District Pool Trust’s Accounts for 2020-21 has been undertaken as part of the 2021-22 Internal Audit Plan, as agreed with the Director of Resources. The present Tenby & District Swimming Pool Trust (Registration No. 1064340) was established in June 1997 when all land and buildings were vested in Pembrokeshire County Council as Trustee, who, as a corporate body, operate the land and buildings as a separate charity. The objective of the audit, as directed by the Charities Commission for England and Wales, was to independently examine and verify the Statement of Accounts.

Audit Scope

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Governance:  Compliance with Regulations
Internal Control:  Budget Monitoring
 Accounting Processes
Risk Management:  Internal Processes and Procedures
Financial  Accounting Basis
Management:  Preparation of Accounts
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Methodology

 Interviews with Relevant Officers  Review of Supporting Documentation  Review of Systems and Processes  Sample Testing

Executive Summary

An independent examination of the Statement of Accounts was undertaken by Internal Audit, which resulted in no material concerns being identified requiring escalation to the Trustees or the Charities Commission for England and Wales. Working papers were readily available and complete, demonstrating robust internal controls for producing the Statement of Accounts. Queries raised were quickly responded to with satisfactory explanations given. Sample testing was carried out as part of the audit review, to ensure that supporting documents were present and correct for expenditure transactions, and no issues were identified.

Tenby & District Swimming Pool Trust was impacted by the Covid-19 pandemic, the associated lockdowns and subsequent safety measures implemented on reopening, which led to a decrease in turnover from £338,774 in 2019-20 to £294,707 for 2020-21. A claim of £114,220 for loss of income was submitted to, and received from, Welsh Government’s Local Government Hardship Fund. The Trust continues to be reliant on grant funding provided by the Trustee. The level of financial support increased to £82,951 in 2020-21 (from £76,358 in 2019-20).

A very small number of minor matters arising were noted, and these were communicated to the relevant Officers during the audit review. There are no formal recommendations made within this audit report. The independent examiner’s report will subsequently be signed, and submitted to Council for formal approval.

ASSURANCE RATINGS

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Level of Standard
Assuranc Description Circulation
e
There are no or few
weaknesses in the adequacy
and/or effectiveness of the
governance, internal control,
risk management and
financial management Service
arrangements, which could Manager/
Substanti
impair the ability of the Head of Service
al
service to achieve its
objectives. However, they Service Director
would either be unlikely to
occur or their impact would
not affect the achievement of
the Council’s Well-Being
Objectives.
There are weaknesses in the
adequacy and/or
effectiveness of the
governance, internal control,
risk management and Service
financial management Manager/
arrangements, which could Head of Service
Moderate
have a significant impact on
the ability of the service to Service Director
achieve its objectives but is Director of
unlikely to have a significant Resources
effect on the achievement of
the Council’s Well-Being
Objectives.
There are weaknesses in the
adequacy and/or
Service
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RECOMMENDATION GRADING

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Seriousness Action Required
High risk that requires prompt
Critical
strategic or operational action.
Medium risk that requires
Important
strategic or operational action.
Potential to strengthen the
Opportunistic service by taking advantage of
a situation
Low level findings will be reported to the Service Manager/Head
of Service during the exit interview.
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LIMITATIONS IN ASSURANCE

It should be noted that full testing was not undertaken as part of this audit review, therefore the results should be considered in this context.

ACKNOWLEDGEMENT

We would like to take this opportunity to thank all staff involved for their co-operation during the audit review.

CONTACT DETAILS

If the Internal Audit Service can be of any further assistance please contact:

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ACCEPTANCE OF INTERNAL AUDIT REPORT
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Head of Service Signature: ______ ____ Name:__ Nicola Lewis_____ Date: -
___07/09/2021___
Director Signature: ______ Name:_____ Date:-
____
Chief Executive Signature:_______ Name:_____ Date:-
____
(If applicable)