Registered number: 03525067 Charity number: 1069376 SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
SHENLEY LEISURE CENTRE TRUST LIMITED {A Company Limited by Guarantee) CONTENTS Page Reference and Administrative Details of the Charity, its Trustees and Advlsers Trustees. Report Independent Examiner's Report statement of Financial Activities 10 Balance Sheet Statement of Cash Flows 13 Notes to the Financial Statements 14-27
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 3q MARCH 2024 Trustees C Brown (Chairman} J S Howe Ivice Chairman) A P Dransfield t) W Hoyle B G Connell W G Butler S Milner G D Morla K Brewis M Coppins GEGadd Company registered number 03525067 Charity registered number 1069376 Registered office Burchard Crescent, Shenley Church End, Milton Keynes, MK5 6HF Independent examiner MHA, Century House, The Lakes, Northampton, NN4 7HD Page 1
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustees present their annual report together with the financial statements of the Company for the year 1 April 2023 to 31 March 2024. The Annual Report serves the purposes of both a Trustees, report and a directors, report under company law. The Trustees confinn that the Annual Report and financial statements of the charitsble company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). Since the Company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required. Objectjves and Activities a. POLICIES AND OBJECTIVES We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. The object of the Charity is the provision of leisure. sports. recreation and community activities at the Shenley Leisure Centre to the general public of all ages. The Shenley Leisure Centre was opened in September 1991 and is sited alongside Denbigh School, by the Shenley Church End Local Centre in the west of Milton Keynes. The Leisure Centre was originally managed by Buckinghamshire County Council and linked to the Woughton Leisure Centre. Following local government reorganisation the Centre came under the jurisdiction of Milton Keynes Council in 1997. In 1998 the Centre gained independent Charitable Trust status, and is now overseen by a Board of Trustees. In order to protect its charitable status, the Trust has fonned a subsidiary trading Company to manage the more commercial aspects of the organisation such as the Bar and Entertainment Programme. Surplus funds generated by the trading Company are donated to the Trust and, along with other surplus funds generated are used to help expand and develop the Leisure Centre's programmes and facilities. The Centre works very hard to encourage people of all ages and from all sections of the community to use the facilities for a whole range of both active and more passive types of activities. In planning our activities the Trustees have considered the Charity Commission guidance on public benefit and fee charging. Since 2016 the leisure centre relies on the income from fees to cover its operating costs. In setting the level of fees the Trustees give careful consideration to the accessibility of the Centre to those on low incomes. In setting objectives and planning for activities, the Trustees have given due consideration to general guidan published by the Charity Commission relating to public benefit, including the guidan 'Public benefit.. running a charity. Page 2
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) TRUSTEES. REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024 b. ACTIVITIES FOR ACHIEVING OBJECTIVES The Trustees have referred to the Charity Commission's guidan on public benefit when deciding on the activities Shenley Leisure Centre Trust Limited provides. Shenley Leisure Centre Trust Limited provides public benefit in the following way.. To promote for the public benefit the provision of facilities for recreation or other leisure time occupation for individuals who have need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving their conditions of life. Achievements and performance . KEY FINANCIAL PERFORMANCE INDICATORS For the year ended 31 March 2024 the centre made a defictt of £26,950 (2023 - £52,536). Unrestricted funds at 31 March 2024 amounted to £874.549 (2023.. £901.499). Restricted funds at 31 March 2024 amounted to £404,642 (2023.. £404,642). b. REVIEW OF ACTIVITIES The Trustees and staff have continued to work hard again during the year in moving a stage further towards the Trust being self-sustaining following the full withdrawal of grant funding by MK Council in 2016, the pandemic, and various forced closures of facilities in 2023124. In order to keep the deficit as low as possible and provide the best Chan of being self-sustaining we have actioned the following" The Shenley Leisure Centre Trust Limited agreed to put funds into a fixed term interest account with Lloyds in December 2022 and continue to do so. The Trust and Denbigh Alliance have agreed to proceed with the s106 funding (£400,000) for a new Shenley Leisure Centre facility i.e. golf simulators instead of a larger sports hall for one badminton court. Shenley Leisure Centre cost saving in construction with improved revenue from golf project. Building is estimated to begin in August 2024. Sports Hall was closed 23 November 2022 due to RAAC planks being used which a now not fit for purpose. The Trust and Shenley Leisure Centre Trust Limited management have pursued our insurers Covea and subsequently the MK Council and invoices have been produced. We are losing an estimated £2,000 per week and this issue is sts'll unresolved. The Denbigh Alliance through the Department for Education have won a CIF grant for £1.2million and works commenced 3 July 2023. The roof of the Sports Hall and Gym will be replaced and additionally the Gym floor. staffing levels have been reduced as a result of less activitylfootfall in the centre because of the sports hall and Gymnasium closures. The Sports Hall reopened 26 February 2024. . The Gymnasium reopened 22 April 2024. It is estimated that the combined lost revenue is over £150,000 due to the FLK4C closure and is unlikely it will Page 3
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) TRUSTEES. REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024 be recovered from any party. Repair work to both Astro-turf pitches were completed in June 2023, follow up repairs and further closures of the pitches were done in February 2024, a total of 9 weeks lost revenue as a result. Further repairs will be carried out in yearend 2025. c. INVESTMENT POLICY AND PERFORMANCE Under the Memorandum and Articles of Association 3 (15), the Centre has the power to invest in any way the Trustees wish. The Trustees, having regard for the reserves policy, have operated a policy of keeping available funds in fixed term deposit accounts. Interest received was £23,904 (2023.. £1,065). Financial review a. GOING CONCERN After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going Conrn basis in preparing the financial statements. Further detsils regarding the adoption of the going concem basis can be found in the accounting policies. Page 4
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) TRUSTEES. REPORT {contlnued) FOR THE YEAR ENDED 31 MARCH 2024 b. RESERVES POLICY Through article 15 of the Charivs Memorandum of Association, it has the express legal power to hold income in reserve instead of expending it promptly. The charity is required to retain reseNes for the following reasons.. 1. To ensure a measure of business continuity in the event of a sudden loss of significant part of the income revenue stream. For this purpose a minimum reseNe, equivalent to three months salary costs, will be maintained. 2. Rep1arnent and refurbishment of equipment and facilities. 3. Investment in new facilities, including buildings. to meet the expanding local community needs. 4. To cover short term high cash tlows. In determining the planned expenditure programme, and therefore planned reserve levels, Management and Trustees wil take account of: 1. Forecasts of the future income from the Business Plan and possible new sources of income in the future. 2. Forecast expenditure 3. An analysis of future needs with inputs from Management and Trust Committees. 4. An assessment of the risk of discontinuity of elements of income and expenditure streams. It is though anticipated that the impact of the hall closure will not deplete all reserves of the Trust Structure, governance and management a. CONSTITUTION The Company, which is limited by guarantee and has no share capital, is governed by its Memorandum and Articles of Association dated 5 March 1998 and subsequent amendments. It is registered as a charity with the Charity Commission. The Company was incorporated on 5 March 1998 and commenced trading on 1 June 1998 and has now completed enty six years of operation and continues to grow in strength. b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES In March 2018 the Articles of Association were changed in order that the Board of Trustees shall consist of at most 14 members. The Trustees who served the Company during the year are shown on page 1. The Company is limited by guarantee, and no Trustee has a beneficial Inte$t in the capital of the charitable Company. All Trustees are directors of the Company. Page 5
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) TRUSTEES. REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2024 c. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES New and potential Trustees receive a briefing on their legal obligations under charity and Company law, the content of the Memorandum and Articles of Association, the committee and decision making process, the Business Plan and recent financial Performan of the centre. During their visit they will be introduced to members of staff on duty and given a copy of the Business Plan which has a copy of the core stsffing structure. They will then be invited to the next Board meeting where introductions are dealt with at the beginning of the meeting. d. RISK MANAGEMENT The Board is responsible for the management of business risks faced by the Charity. The systems of internal control are designed to provide reasonable, but not absolute assurance against material misstatement or loss. They include.. 1. A strategic plan and an annual budget approved by the Trustees. 2. Regular consideration by the Trustees of financial results, variance from budgets, non-financial performance indicators and benchmarking reviews. 3. Delegation of authority and segregation of duties. 4. Identification and management of risks. The Trustees have previously introduced a formal risk management process to assess business risks and implement risk management strategies. This involved identifying the types of risks the charity faces, prioritising them in terms of potential impact and likelihood of occurence, and identifying means of mitigating the risks. Business risks are identified, assessed and controls established throughout the year. A formal review of the charity's business risk management process is undetaken on a periodic basis. Attention has been focused on non-financial risks and in particular, health and safety issues relating to the use of the Trust facilities. A key element in the management of financial risk is the setting of a reserve policy and is regularly reviewed by the Trustees. Page 6
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) TRUSTEES. REPORT {continued) FOR THE YEAR ENDED 31 MARCH 2024 e. TRUSTEES The present membership of the Board is set out on page 1. Except as otherwise noted, all trusteesldirectors served throughout the year. Trustees are invited to join the Board generally on the recommendation of existing trustees. The present membership of the Board is as set out below. C Brown (Chairman) J S Howe (Vice Chairman) B G Connell W G Butler A P Dransfield S Milner G Morla K Brewis M Coppins D W Hoyle GEGadd TRUSTEES. RESPONSIBILITIES STATEMENT The Trustees (who are also directors of Shenley Leisure Centre Trust 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. Under company law the Trustees must not approve the financial statements unless they are satisfied that they 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 judgments and accounting estimates that are reasonable and prudent" prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable company will continue in operation. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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. This report was signed on the Trustees behalf on C Brown Chairman of the Trust Page 7
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) INDEPENDENT EXAIVIINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2024 INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SHENLEY LEISURE CENTRE TRUST LIMITED (the 'company') I report to the charity Trustees on my examination of the accounts of the company for the year ended 31 March 2024. This report is made solely to the company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the company's Trustees those matters l am required to stste to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's Trustees as a body, for my work or for this report. RESPONSIBILITIES AND BASIS OF REPORT As the Trustees of the company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 {'the 2006 Act,). Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the companls accounts carried out under seotion 145 of the Charities Act 2011 ('the 2011 Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. INDEPENDENT EXAMINER'S STATEMENT Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that l am qualifi'ed to undertake the examination because l am a member of ICAEW, which is one of the listed bodies. I have completed my examination. I can confirm that no matters have come to my attention in connection with the examination giving me cause to believe.. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act., or the accounts do not accord with those records; or the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair, view which is not a matter considered as part of an independent examination., or the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Page 8
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) INDEPENDENT EXAMINER'S REPORT (contlnued) FOR THE YEAR ENDED 31 MARCH 2024 I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Signed: Rebecca Hughes BS¢(Hons) FCCA MHA Century House The Lakes Northampton NN4 7HD Dated.. l &9 e 2KF Page 9
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Llmited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Note INCOME FROM: Donations and legacies Charitable activities Other trading activities Investments Other income 115,000 318,210 55,670 23.904 84,000 115,000 318,210 55,670 23,904 84,000 115,000 339,660 84,411 1,065 72,000 TOTAL INCOME 596,784 596,784 612,136 EXPENDITURE ON: Charitable activities 623,734 623,734 664,672 TOTAL EXPENDITURE 623,734 623,734 664.672 NET EXPENDITURE BEFORE OTHER RECOGNISED GAINS AND LOSSES Actuarial gains on defined benefit pension schemes (26.950) (26,950) (52,536) 18 479,000 NET MOVEMENT IN FUNDS (26,950) (26,950) 426,464 RECONCILIATION OF FUNDS: Total funds brought forward 12 901,499 404,642 1,306,141 879,677 874,549 404,642 1,279,191 1,306,141 TOTAL FUNDS CARRIED FORWARD The notes on pages 14 to 27 form part of these financial ststements. Page 10
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER.. 03525067 BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note FIXED ASSETS Tangible assets Investments 11 85,795 10,000 74,339 10,000 12 95,795 84,339 CURRENT ASSETS Stocks 155 107,564 1,181,372 155 Debtors Cash at bank and in hand 13 87,435 1,186,024 1,289,091 1,273,614 CREDITORS: amounts falling due within one year 14 (105,695) (51,812) NET CURRENT ASSETS 1,183,396 1,221,802 NET ASSETS 1,279,191 1,306,141 CHARITY FUNDS Restricted funds 15 404,642 874,549 404,642 901,499 Unrestricted funds 15 TOTAL FUNDS 1,279,191 1,306,141 Page11
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) BALANCE SHEET (continued) AS AT 31 MARCH 2024 The company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The Trustees consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act. The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The financial statements are signed on the Trustees behalf, on 31191+ by: C Brown Chairman of the Trust The notes on pages 14 to 27 form part of these financial statements. Page 12
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Llmited by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Note Cash flows from operating activities Net Cash provided byl(used in) operating activities 17 16,075 (70,110) Cash flows from investing activities: Purchase of tangible fixed assets (20,727) Net cash used in investing activities (20,727) Change in cash and cash equivalents in the year Cash and cash equivalents brought forward (4,652) 1,186,024 (70,110) 1,256,134 Cash and cash equivalents carried forward 18 1,181.372 1,186,024 The notes on pages 14 to 27 form part of these financial statements. Page 13
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES 1.1 Basis of preparatlon of financial statements The financial statements have been prepared in accordance with the Charities SORP {FRS 102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) {effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Shenley Leisure Centre Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 1.2 Company status The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company. If any propety remains upon the winding up or dissolution of the company it shall be given or transferred to some other charitable institution having similar objects to the company. 1.3 Going concern The financial statements have been prepared on a going concern basis. The Trustees have not identified any further material UnrtaIntieS that may cast significant doubt about the ability of the charitable company to continue as a going concern. The charitable company's business activities, together with the factors likely to affect its future development, performance and position, its cash flows and liquidity position have been assessed. The charitable company has sufficient financial resources together with long term contracts for its trading centre. Based on these assessments and having regard to the resources available to the charitable company, the Trustees have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts. Page 14
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (CONTINUED) 1.4 Income All income is recognised once the company has entitlement to the income, it is probable that the income will be reIVed and the amount of income receivable can be measured reliably. Membership fees Membership fees are amounts payable to Shenley Leisure Centre on a monthly basis for usage of the leisure facilities. Details of the various membership categories and the benefits they offer can be found on our website at w.shen1eY1eisure.0rg.Uk. Centre fees Centre fees are amounts payable to Shenley Leisure Centre on a visit-by-visit basis for usage of the leisure facilities. Details of opening times, activity tables and charges are all available on our website. Management fees Management fees are the fees paid by Shenley Leisure Centre Trading Limited for the use of the facilities and associatted costs Grants receivable Grants are accounted for when conditions to entitlement have been met. Donations receivable Donations are accounted for when the company has control over that item and conditions to entitlement have been met. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Page 15
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (CONTINUED) 1.5 Expenditure Expenditure is recognised On there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned beteen those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent. and depreciation charges allocated on the portion of the asset's use. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. Charitable activities and Governance costs are costs incurred on the companls operations, including support costs and costs relating to the governance of the company apportioned to charitable activities. 1.6 Turnover Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts. 1.7 Tangible fixed assets and depreciation A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities incorporating Income and Expenditure Account. Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases- Long-term leasehold propety improvements Golf Simulator Furnitu and fittings Equipment 25 years straight line 10 years straight line 330/0 Straight line 25% straight line 1.8 Investments Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading 'Gainsl(losses) on investments, in the Statement of Financial Activities incorporating Income and Expenditu Account. Page 16
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (CONTINUED) 1.9 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company,. this is normally upon notification of the interest paid or payable by the Bank. 1.10 stocks Stocks are valued at the lower of cost and net realisable value after making due allowan for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fi'xed and variable overheads. 1.11 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 1.12 Cash at Bank and in hand Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 1.13 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges. 1.14 Financial instruments The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. Page 17
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (CONTINUED) 1.15 Penslons Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.. 1.16 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purF)oses. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 1.17 Government grants Government grants relating to tangible fixed assets are treated as income and released to the Statement of Financial Activities over the expected useful lives of the assets concemed. Other grants are credited to the Statement of Financial Activities as the related expenditure is incurred. Job retention scheme grants received are accounted for when conditions to entitlement have been met. Page 18
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INCOME FROM DONATIONS AND LEGACIES Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Donation for use of facility 115,000 115,000 115,000 Totsl 2023 115,000 115,000 The company occupies Shenley Leisure Centre for a peppercorn rent. In accordance with the ststement of Recommended Practice: Accounting by Charities, the Trustees have sought a valuation of this benefit for inclusion in the Statement of Financial Activities. The benefit of this lease is valued at a commercial rent of £115.000 (2023 £115,000) per annum assuming a normal commercial lease and no change to the current exclusive and shared facilities. The valuation was performed by S Greener, Assistsnt Estate Surveyor of Milton Keynes Council in September 1999. In 2021 the Trustees, under professional advice increased this from £75,000 to £115.000 This benefit has been included under incoming resources, as intangible income, and the related cost has been apportioned between charitable and support costs. INCOME FROM CHARITABLE ACTIVITIES Unrestricted funds 2024 Restricted funds 2024 Totsl funds 2024 Total funds 2023 Room hire Sports Health and fitness Childrens, activities 76,933 157,860 76.907 6.510 76,933 157,860 76,907 6,510 62,335 211,734 61,196 4,395 318,210 318,210 339,660 Total 2023 339,660 339,660 TRADING ACTIVITIES Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Charlty trading income Trading income Shenley Leisure Centre Trading Limited 55.670 55,670 84,411 Net income from trading acts'vities 55,670 55.670 84,411 Page 19
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INVESTMENT INCOME Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Total funds 2023 Bank interest receivable 23,904 23,904 1.065 Total 2023 1,065 1,065 OTHER INCOMING RESOURCES Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Management charge 84,000 84,000 72,000 84,000 84,000 72,000 Total 2023 72,000 72,000 DIRECT COSTS Total 2024 Total 2023 Activities Sports Health and fitness Childrens, activities Centre marketing 1,493 5,159 1,493 5,159 511 3,582 6,790 5,860 541 541 7,193 7,193 16,743 Total 2023 16,743 16,743 Page 20
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 SUPPORT COSTS Support costs Total 2024 Total 2023 Wages and salaries Donated facility Insurance Light and heat Repairs and maintenance Printing and stationery Advertising Legal and professional Water Refuse charges Telephone Accountancy and book keeper Computer costs Cleaning Health and safety Bank charges Sundry Bad debt Additional rental paid Depreciation 296,731 115,000 6,119 96,289 23,982 1,655 91 5,599 4,610 296,731 115,000 6,119 96,289 23,982 1,655 91 5,599 4,610 84 958 9,582 20.502 4,532 1,900 3,955 3,257 303,051 115,000 8,863 83,621 32,330 2,889 3,295 6,680 3.873 958 9,582 20,502 4,532 1,900 3,955 3,257 885 10,599 28,867 4.847 10,305 4,293 3,701 (335) 11.948 13,217 12,424 9,271 12,424 9,271 616,541 616,541 647,929 Total 2023 647,929 647,929 During the year ended 31 March 2024, the company incurred the following Governance costs: £8,891 (2023 - £9,332) included within the table above in respect of Support costs. TURNOVER The whole of the turnover is attributable to the operation and running of a sports centre for people of all ages and from all sections of the community to use the facilities for a whole range of both active and more passive types of activities. All turnover arose within the United Kingdom. Page 21
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 10. STAFF COSTS The average number of persons employed by the company during the yearwas as follows: 2024 2023 Management and administration Office staff Centre staff 28 35 30 37 No employee received remuneration amounting to more than £60,000 in either year. 11. TANGIBLE FIXED ASSETS Leasehold property improvements Golf Fixtures simulator and fittings Equipment Total Cost At 1 April 2023 Additions 132,282 135.719 137,164 405,165 20,727 20.727 At 31 March 2024 132,282 20,727 135,719 137,164 425,892 Depreciation At 1 April 2023 Charge for the year 74,712 118,950 9,271 137,164 330,826 9,271 At 31 March 2024 74,712 128.221 137,164 340,097 Net book value At 31 March 2024 57,570 20.727 7,498 85,795 At 31 March 2023 57,570 16,769 74,339 12. FIXED ASSET INVESTMENTS Shares in group undertakings Market value At 1 April 2023 and 31 March 2024 10.000 Page 22
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 12. FIXED ASSET INVESTMENTS (contlnued) Subsidiary undertakings The following were subsidiary undertakings of the company: Name Holding Shenley Leisure Centre Trading Limited 100Vo The aggregate of the share capital and reserves as at 31 March 2024 and of the profit or loss for the year ended on that date for the subsidiary undertakings were as follows.. Aggregate of share capital and reseries Name ProfiV(Ioss Shenley Leisure Centre Trading Limited 111,834 (40,832) 13. DEBTORS 2024 2023 Trade debtors Amounts owed by group undertakings Prepayments and accrued income 15,936 83,994 7,634 17,210 61,382 8,843 107.564 87,435 14. CREDITORS: Amounts falling due within one year 2024 2023 Trade creditors Other taxation and social security other creditors Accruals and deferred income 95,205 3,664 930 5,896 8,295 3,803 804 38,910 105,695 51,812 Page 23
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15. STATEMENT OF FUNDS STATEMENT OF FUNDS- CURRENT YEAR Balance at 31 March 2024 Balance at 1 April 2023 Transfers inl{out) Income Expendlture Deslgnated funds Capital expenditure fund 150,000 (30,000) 30,000 150,000 General funds General Funds - all funds 751A99 596,784 (593,734) (30.000) 724,549 Total Unrestricted funds 901,499 596,784 (623.734) 874,549 Restricted funds Sports hall facility 404,642 404,642 Total of funds 1.306.141 596,784 {623,734) 1,279,191 The designated capital fund represents future capital expenditure as shown in the Charity's capital expenditure programme including a provision for future maintenance. Any amounts not utilised are carried forward where the specific purpose or project remains part of the expenditure programme. The lease with Milton Keynes Council stipulates that £30,000 annually adjusted for inflation must be allocated to a separate designated fund to be used for planned maintenance of the premises including refurbishment and capital works. During the financial statements £30,971 were incurred gardIng the sports centre. Restrrcted Funds Milton Keynes Council grant received towards the legal costs and other expenses associated with the Section 106 Replacement Leisure Facilities Contribution, for the purpose of delivering a new multi-use sports hall facility at Shenley Leisure Centre. Milton Keynes Council grant received towards the legal costs and other expenses associated with the sports hall facility. Page 24
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15. STATEMENT OF FUNDS (continued) STATEMENT OF FUNDS- PRIOR YEAR Balance at 31 March 2023 Balance at 1 April 2022 Transfers inl{out) Pension fund cost Income Expenditure Capital expenditure fund General Funds- all funds 150,000 (30,000) (633,232) 30.000 150,000 323,595 612,136 (30,000) 479,000 751,499 Restrjcted funds Sports hall facility 406.082 (1,440) 404,642 Total of funds 879,677 612,136 (664,672) 479,000 1,306,141 SUMMARY OF FUNDS- CURRENT YEAR Balance at 31 March 2024 Balance at 1 April 2023 Transfers inl(out) Income Expenditure Designated funds General funds 150,000 751,499 (30,0001 (593,734) 30,000 {30,0001 150,000 724,549 596,784 901.499 404,642 596.784 (623,734 874,549 404.642 Restricted funds 1,306,141 596,784 1623,734) 1,279,191 SUMMARY OF FUNDS- PRIOR YEAR Balance at 31 March 2023 Balance at 1 April 2022 Transfers inl(out) Pension fund cost Income Expenditure Designated funds General funds 150,000 323,595 (30,000) (633,232) 30,000 (30,000) 150,000 751,499 612,136 479,000 473,595 406,082 612,136 (663,232) (1,440> 479,000 901,499 404,642 Restricted funds 879,677 612,136 (664,672) 479,000 1,306,141 Page 25
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 16. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR Unrestrlcted Restrlcted funds funds 2024 2024 Total funds 2024 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year 85.795 10,000 905,176 (105,695) 85,795 10,000 1.289,091 {105,695) 383,915 874,549 404,642 1,279,191 ANALYSIS OF NET ASSETS BETWEEN FUNDS- PRIOR YEAR Unrestricted funds 2023 Restricted funds 2023 Total funds 2023 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year 74.339 10,000 867,128 (49,968) 74,339 10,000 1,273,614 (51,812) 404,642 901,499 404,642 1,306,141 17. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTNITIES 2024 2023 Net expenditure for the year (as per Statement of Financial Activities) (26.9501 (52.536) Adjustment for: Depreciation charges Increase in debtors Increasel{decrease) in creditors 9,271 (16,302) 50,056 13,217 (23,086) (7,705) Net cash provided byl(used In) operating activities 16,075 (70,110) Page 26
SHENLEY LEISURE CENTRE TRUST LIMITED (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 18. ANALYSIS OF CASH AND CASH EQUIVALENTS 2024 2023 Cash in hand 1,181,372 1,186.024 Totsl 1,181.372 1,186,024 19. TRUSTEE REMUNERATION AND EXPENSES No Trustee received remuneration or reimbursement of expenses during the year (2023 - £nil). 20. RELATED PARTY TRANSACTIONS Mr W G BUer is a Trustee of Shenley Leisure Centre Trust Limited and a Trustee of The Denbigh Alliance. The Denbigh Alliance leases Shenley Leisure Centre to Milton Keynes CoLJncil for a peppercorn rent who sub-lease to Shenley Leisure Centre Trust Limited. During the year, The Denbigh Alliance recharged Shenley Leisure Centre Trust Limited in respect of repairs to shared areas as well as cleaning costs and recharges of uility costs. At the year end there was a balance owing by Shenley Leisure Centre Trust Limited of £9,522 (2023 - £nil) The Denbigh Alliance also paid Shenley Leisure Centre Trust Limited in respect of the licence fee for a shared facilities agreement. At the year end there was a balance owing by Shenley Leisure Centre Trust Limited of £1,035 (2023 - £3,106). During the year Shenley Leisure Trust Limited recharged Shenley Leisure Centre Trading Limited £84,000 (2023 £72,000) in respect of management charges for shared facilities, utility costs and wages. At the end of the year there was a balance due to Shenley Leisure Centre Trading Limited of £nil {2023 - £nil). At 31 March 2024, there was a balance owing by Shenley Leisure Centre Trading Limited of £83,994 (2023 - £61,382). This has no fixed repayment date. 21. PENSION SCHEME The company operates a defined contribution pension scheme. The assets of the scheme are held seperately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £3,713 (2023 - £3,777). At the 31 March 2024 there was a balance owing of £830 (2023 - £804). Page 27