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2022-03-31-accounts

APPENDIX B

TENBY AND DISTRICT SWIMMING POOL TRUST

ANNUAL REPORT 2021/22

Tenby and District Swimming Pool Trust

2021/22

Forward

By the Leisure Services Manager

The last 12 months have continued to prove to be a challenge for Tenby Swimming Pool as the effects of the pandemic with the need to maintain safe controls measures and restrictions for the benefit of both staff and customers have directly shaped performance. As we progress through 2022 the lifting of restrictions have allowed the facility to return to some normality, however the effects of the pandemic are being felt by the whole leisure sector in terms of business growth and staffing challenges.

I would like to commend and note my gratitude to the swimming pool staff who have carried out their roles excellently and provided outstanding customer service over the past 12 months. The ability of the facility to continue to function so successfully over the past year has been a credit to their enthusiasm, professionalism and dedication. It is also worth noting that staffing in terms of sickness (primarily covid related), retention & recruitment have proven to be a challenge (something evident throughout leisure in Pembrokeshire and recognised in the whole sector in the UK). This challenge has added to the strain on the current staff and makes their performance even more noteworthy. We continue to look at ways to support our workforce with an ongoing training and recruitment process proactively in place and functioning.

In terms of visits the facility recorded 36,973 visits. Whilst this is a reduction of nearly 14,000 visits on the pre pandemic figures it is a positive outturn considering the restrictions that were maintained which affected our ability to facilitate groups of swimmers of any significant numbers. It was encouraging to note that all swimming clubs, public swimming (which transitioned from our POD offer to standard public open sessions - however with reduced capacity), Learn to Swim & school Swimming (with all catchment schools) all returned. Learn to Swim has seen an uptake of over 300 children attending on a weekly basis. The future growth of this provision is positive but also a challenge due to a lack of readily available qualified staff (being the case reported throughout the UK)

The financial situation facing the trust has thankfully been less challenging than had been anticipated due to the assistance provided through the Welsh Government hardship fund. This supporting financial package has ensured that the trust has been able to report a breakeven position for the year. The financial challenges will become evident as 2022 progresses. Whilst at an early stage the continued increase in utility costs is of significant

concern. Whilst being fortunate to benefit from our close relationship and joint procurement arrangement with the local authority (which has a pre agreed utility cost for 2022) there are still increases in costs which we will continue to endeavour to mitigate the impact through prudent energy management.

The swimming pool as whole is definitely showing its 50 years of age. A number of issues with the pool structure and plant are increasingly occurring. A full review of the building and feasibility study in terms of remedial action is currently being undertaken and will provide a direction and recommendations for the future of the pool. During the forthcoming year these recommendations will be taken to the trustees for consideration.

Whilst there have and continue to be challenges associated to the swimming pool I am optimistic that as a community facility we will continue to serve our users in an effective and efficient manner throughout the year ahead.

Gary Nicholas

Leisure Services Manager

APPENDIX A

TENBY & DISTRICT POOL REGISTERED CHARITY COUNTY HALL HAVERFORDWEST

STATEMENT OF ACCOUNTS 2021-22

INDEX PAGE
Introduction 3
Objectives, Third Party Relationships & Policies 3
Statement of Responsibilities 3
Certificate of Directorof Resources 4
IndependentAuditor’sReport 5
IndependentAuditor’s Opinion 6
Explanatory Foreword 7
Summary Outturn 7
Statement of Accounting Policies & Procedures 8-10
Statement of Financial Activities 11-12
Balance Sheet & Notes 13-14
Cash Flow Statement 14

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).

In preparing this statement of accounts, the Director of Resources has;

3

CERTIFICATE OF DIRECTOR OF RESOURCES

The Statement of Accounts of the Tenby Pool Trust for the year ended 31 March 2022 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: 11 May 2023

4

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF TENBY AND DISTRICT SWIMMING POOL TRUST 2021-22

I have completed the independent examination of the Financial Statements of Tenby and District Swimming Pool Trust for the year ended 31 March 2022 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

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.

5

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 2021-22 is consistent with the Financial Statements provided.

In connection with my examination of the 2021-22 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: 11 May 2023

6

EXPLANATORY FOREWORD

The Trust’s accounts for the year 2021-22 are set out on pages 8 to 14. They consist of:

SUMMARY OUTTURN

Actual
2020-21
£
Estimate
2021-22
£
Actual
2021-22
£
Expenditure 294,707 364,340 310,739
Income (294,707) (364,340) (310,739)
Net Revenue Expenditure / (Income) Nil Nil Nil
Capital Expenditure Nil Nil Nil

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. Non-structural 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).

Due to the volatility in the market it has been necessary to revalue all assets which may have experienced a material change in value, this has included all assets valued on a Depreciated Replacement Cost (DRC) basis. This is in addition to the Council’s rolling programme of revaluations of Social Services, Culture and Development, Leisure, Libraries and Museums assets.

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.

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

8

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 2021-22.

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.

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.

9

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

2020-21 1 April 2021to 31 March 2022 1 April 2021to 31 March 2022 1 April 2021to 31 March 2022
Total
Funds
Unrestricted
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 (Note 1)
Covid Funding
(13,124)
(2,817)
(80,088)
(295)
(84,163)
(114,220)
(29,196)
(21,173)
(84,088)
(6,330)
(84,677)
(85,275)
(29,196)
(21,173)
(84,088)
(6,330)
(84,677)
(85,275)
TOTAL INCOMING
RESOURCES
(294,707) (310,739) - - - (310,739)
Tenby Pool - Expenditure
Operating Activities

Grants Payable

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

Support Costs(Note 6)
Nil
228,383
56,836
291
430
37,024
8,767


Nil
223,870
73,460
3,438
1,057
37,024
8,914
Nil
223,870
73,460
3,438
1,057
37,024
8,914
TOTAL RESOURCES
EXPENDED
331,731 347,763 - - - 347,763
NET INCOMING /
(OUTGOING) RESOURCES
BEFORE TRANSFERS
(37,024) (37,024) - - - (37,024)
TRANSFERS BETWEEN
FUNDS
37,024 - (37,024) - Nil
NET INCOMING
RESOURCES BEFORE
REVALUATIONS &
INVESTMENT ASSET
DISPOSALS
(37,024) Nil - (37,024) - (37,024)
GAINS & LOSSES ON
REVALUATIONS &
DISPOSALS
Nil - - 292,326 - 292,326
NET MOVEMENT IN FUNDS (37,024) - - 255,302 - 255,302
FUNDS BROUGHT
FORWARD
1,507,602 1,460 1,046 1,468,072 - 1,470,578
FUNDS CARRIED
FORWARD
1,470,578 1,460 1,046 1,723,374 - 1,725,880

11

Notes to Statement of Financial Activities

  1. The grant receivable represents the contribution made to the Trust by the County Council for the £75,937 for 2021-22 (£82,952 for 2020-21) and the Welsh Government Free Swimming Grant £8,740 for 2021-22 (£1,211 for 2020-21). In addition the Trust received £85,275 Welsh Government Covid Hardship funding (£114,220 in 2020-21).

  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.

  4. 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 staff costs
2020-21 2021-22
£ £
Gross Pay 182,706 178,378
Employer’s National Insurance 13,703 14,889
Employer’s Superannuation 31,974 30,603
Total 228,383 223,870
Full Time Equivalents 7.4 7.54
6. Analysis of support costs:
2020-21 2021-22
£ £
Personnel/Accountancy 5,038 5,154
Training & Development 1,177 1,240
Payroll 1,017 1,000
Insurance Admin 1,371 1,350
Creditor Payment 164 170
Total 8,767 8,914
7. Premises Expenditure 2020-21 2021-22
£ £
Utilities 40,694 52,515
Chemicals & Cleaning 6,958 6,761
Building Repairs 5,298 6,412
Equipment 1,721 5,605
Insurance 1,660 1,660
Telephone 505 507
Total 56,836 73,460
  1. Transfers between funds relate to depreciation charges for 2021-22.

12

BALANCE SHEET AS 31 MARCH 2022

2020-21 2020-21 2021-22 2021-22
£ £ £ £
FIXED ASSETS
Tangible Fixed Assets
Freehold Land
Freehold Buildings
-
Gross Value
-
Accumulated Depreciation
-
Net Value
Equipment
-
Gross Value
-
Depreciation
-
Net Value
1
1
9,680
1,616,317
(172,369)
1,443,948
177,797
(177,797)
1,453,628
Nil
9,680
1,699,249
Nil
1,699,249
177,797
(177,797)
1,708,929
Nil
TOTAL NET FIXED ASSETS 1,453,628 1,708,929
CURRENT ASSETS & LIABILITIES
Current Assets
Stocks
Debtors
Investments
Cash In Transit
Current Liabilities
Trade Creditors
Cash Received In Advance
2 3,210
Nil
17,329
Nil
(3,589)
Nil

20,539
(3,589)
3,227
Nil
36,615
Nil
(22,891)
Nil
39,842
(22,891)
TOTAL NET CURRENT ASSETS 16,950 16,951
TOTAL NET ASSETS 1,470,578 1,725,880
FUNDS & CAPITAL ACCOUNTS
Capital Adjustment Account
Revaluation Reserve
Capital Development Fund
Unrestricted Funds
Reserve Fund (Revenue)
Reserve Fund (Capital)
317,553
1,136,075
14,444
1,460
1,046
309,411
1,399,519
14,444
1,460
1,046
1,470,578 1,725,880

13

Notes to Balance Sheet

1. Analysis of movement of fixed assets :

2020-21 2020-21 2021-22 2021-22
Land & Buildings
£
Equipment
£
Land & Buildings
£
Equipment
£
Gross Assets
Balance B/fwd 1,625,997 177,797 1,625,997 177,797
Revaluation Nil Nil 82,932 Nil
Additions Nil Nil Nil Nil
Balance C/fwd 1,625,997 177,797 1,708,929 177,797
Accumulated
Depreciation &
Impairment
Balance B/fwd 135,345 177,797 172,369 177,797
Depreciation charge
for Year
37,024 Nil 37,024 Nil
Revaluation Nil Nil (209,393) Nil
Balance C/fwd 172,369 177,797 0 177,797
Net Assets 1,453,628 Nil 1,708,929 Nil
  1. Investments represent revenue cash temporarily invested with Pembrokeshire County Council.

CASH FLOW STATEMENT

2020-2021 2020-2021 2021-22 2021-22
£ £ £ £
Net Inflow/(Outflow) Per Statement of Resources
Add back:Depreciation
Decrease/ (Increase) in:
Stocks
Debtors
Cash In Transit
Increase / (Decrease) in:
Creditors
Income in Advance
(37,024)
37,024
(37,024)
37,024
Nil
291
1
Nil
(11)
Nil
292
(11)
Nil
(17)
0
Nil
19,302
Nil

(17)
19,302
**Movement inCash In Year ** **281 ** 19,285
Balance Brought Forward 17,048 17,329
Balance Carried Forward 17,329 36,614

14

PRIVATE AND CONFIDENTIAL

TENBY & DISTRICT POOL TRUST ACCOUNTS VERIFICATION

2021-22

Report Issued to: Sarah Edwards, Deputy Chief Finance Officer Report Issued to: Nicola Lewis, Deputy Chief Finance Officer Report Copied to: Jon Haswell, Director of Resources Auditor: Matthew Holder, Audit, Risk & Counter Fraud Manager Rationale for Audit: Compliance with Statutory Regulations

Internal Audit Report No: 22021 (2022-23) Assurance Rating Substantial Fieldwork Completed 07 March 2023 Draft Report 08 March 2023 Management Comments 31 March 2023 Final Report Issued 31 March 2023

Audit, Risk & Information Service 2022-23

Introduction and Objectives

An audit review to verify Tenby & District Pool Trust’s Accounts for 2021-22 has been undertaken as part of the 2022-23 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
Compliance with Regulations

Budget Monitoring

Accounting Processes

Internal Processes and Procedures

Accounting Basis

Preparation of Accounts
Methodology

Interviews with Relevant Officers

Review of Supporting Documentation

Review of Systems and Processes

Sample Testing
Governance:
Internal Control:
Risk Management:
Financial Management:

Compliance with Regulations

Budget Monitoring

Accounting Processes

Internal Processes and Procedures

Accounting Basis

Preparation of Accounts

Executive Summary

As required by the Charities Commission for England and Wales, an independent examination of the Tenby & District Pool Trust’s Accounts was undertaken which resulted in no material concerns being identified which would require escalation to the Trustees and the Charities Commission for England and Wales. Despite the accounts being presented later than planned due to staff turnover within the Finance Directorate, working papers were readily available and complete, with assurance being provided that controls remain robust in order to produce the Statement of Accounts.

A number of queries was raised with the Principal Accountant relating to the presentation of the accounts (both narrative and numerical), however these were all satisfactorily resolved. Sample testing of transactions did not highlight any issues, with Internal Audit able to independently verify the Statement of Accounts.

The Tenby & District Pool Trust remains reliant on support from the Council as Trustee in order to balance the budget. In 2021-22, the amount of support directly required from the Council reduced by 8.84% from £82,951.59 in 2020-21 to £76,207.68 in 2021-22. In addition the Council claimed £85,275.77 from Welsh Government in respect of loss of income sustained during the Covid-19 period. Whilst the calculations to support the claim were consistent with the prior year, the level of income received was not posted directly to the Tenby & District Pool account on FIMS, with this being communicated to the Principal Accountant.

There are no formal recommendations made within this audit report, with the independent examiners report able to be signed and submitted to Council for approval.

ASSURANCE RATINGS

RECOMMENDATION GRADING

Level of Standard
Description
Assurance Circulation
There are no or few weaknesses in the
adequacy and/or effectiveness of the
governance, internal control, risk
management and financial management
arrangements, which could impair the
ability of the service to achieve its
objectives. However, they would either
be unlikely to occur or their impact
would not affect the achievement of the
Council’s Well-Being Objectives.


Service Manager/
Head of Service
Service Director
Substantial
There are weaknesses in the adequacy
and/or effectiveness of the governance,
internal control, risk management and
financial management arrangements,
which could have a significant impact on
the ability of the service to achieve its
objectives but is unlikely to have a
significant effect on the achievement of
the Council’s Well-Being Objectives.

Service Manager/
Head of Service
Service Director
Director of Resources
Moderate
There are weaknesses in the adequacy
and/or effectiveness of the governance,
internal control, risk management and
financial management arrangements,
which, in aggregate, have a significant
impact on the ability of the service to
achieve its objectives and could have a
significant effect on the achievement of
the Council’s Well-Being Objectives.
Service Manager/ Head
of Service
Service Director
Director of Resources
SLT
Cabinet Member
Limited
Seriousness Action Required
Critical High risk that requires prompt strategic or
operational action.
Important Medium risk that requires strategic or
operational action.
Opportunistic Potential to strengthen the service by
taking advantage of a situation

Low level findings will be reported to the Service Manager/Head of Service during the exit interview.

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 cooperation during the audit review.

CONTACT DETAILS

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