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2021-03-31-accounts

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Trustees’ Annual Report and unaudited Financial Statements

For the year ended 31 March 2021

Company registration number 03896891 Charity registration number 1079101

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Contents
Page
Reference and administrative information 1 - 2
Trustees’ report 3 - 8
Independent examiners' report 9 - 10
Consolidated statement of financial activities 11
Consolidated and company balance sheet 12
Consolidated statement of cashflows 13
Notes to the financial statements 14 - 30

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Reference and administrative information For the year ended 31 March 2021

Charity registration number 1079101
Company registration number 03896891
Registered office and business Station Road
address Pool
REDRUTH
Cornwall
TR15 3QS
Trustees Mr R Beeching
Mr C Hunter
Mr N Lake
Mr CJ Mcmellon (appointed 30 January 2020,
resigned 24 September 2020)
Mr M Moyle
Mr C Rowe
Mr DH Price - Chair
Accountants RRL LLP
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
Bankers Lloyds Bank Plc
27 Fore Street
REDRUTH
Cornwall
TR15 3BJ
CCLA Investment Management Limited
Senator House
85 Queen Victoria Street
LONDON
EC4V 4ET
Santander UK plc
31 Boscawen Street
TRURO
Cornwall
TR1 2QJ
Solicitors Foot Anstey
High Water House
Malpas Road
TRURO
Cornwall
TR1 1QH

1

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Reference and administrative information

For the year ended 31 March 2021

Key Management Personnel Alex Clifton (Chief Executive Officer) – until 7 June 2020 Alex King (Acting GM – part time secondment) – from September 2020 Simon Hosking (Finance & Resources Manager) – until October 2020 Jenine Williams (Operations Manager) Sharon Christie (Business Administration Manager)

2

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2021

The Trustees of Carn Brea Leisure Centre Trust present their report and financial statements for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)”.

OBJECTIVES AND ACTIVITIES

• POLICIES AND OBJECTIVES

The objects of the charity, as defined by the Memorandum of Association, are to provide recreational facilities together with education and training in sporting and leisure activities with the object of improving the potential user's condition of life. Such facilities should be available to the public at large irrespective of their youth, age, infirmity, disablement, poverty or social or economic circumstances.

In setting our objectives and planning the activities of the charity the Trustees have given careful consideration to the Charity Commission's general guidance on public benefit.

• STRATEGIES FOR ACHIEVING OBJECTIVES

The charity has in place a robust business plan and budgets, complemented by creative sales and marketing initiatives to ensure the facilities are fit for purpose and the leisure activities on offer support delivery of the Trust's charitable objectives.

The Trustees and management team use a variety of 'key performance indicators' alongside customer feedback schemes to evaluate and measure how effective the charity is at delivering against its charitable goals.

• ACTIVITIES FOR ACHIEVING OBJECTIVES

The charity's facility comprises: gym, swimming pools, sports hall, group fitness studios, athletics track, squash courts, Cafe, meeting/training/conference rooms and a therapy suite. Utilising the various facilities, the Trust offers a comprehensive, diverse and accessible range of activities to ensure the community's activity needs are met.

A number of initiatives have also been used to engage with the local community and ensure wherever possible that facilities/activities are accessible to all, these have included: GP referral schemes, subsidised swimming sessions, corporate membership schemes and a community sponsor's scheme.

ACHIEVEMENTS AND PERFORMANCE

• REVIEW OF ACTIVITIES

Across the trading year in question the Centre, along with many other similar facilities has had its trading significantly affected by the COVID-19 pandemic and restrictions on its trading from total to partial. In reality the Centre only traded for 4 ½ months of the year.

3

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2021

As has already been referred to above the Centre, like many had a difficult, sporadic and testing trading year due to the effects of and responses to the COVID-19 pandemic and the restrictions and allowances involved in the UK Governments response as they gathered data and created a pathway forwards.

Following the initial lockdown, the Centre re-opened its doors in mid July 2020 and then operated with suitable and sufficient controls as deemed necessary through until November 2020 when again a national lockdown was in force. In between times, during the tiered system Cornwall remained low level and trading continued. The facility briefly re-opened again in December before the next national lockdown occurred in Early January and remained in place for the remainder of the trading year.

Whilst a difficult and testing time and with the vast majority of the Centre’s employees being supported by the Governments ‘furlough’ or CJRS scheme, a small team worked behind the scenes to keep communications open, cover matters relating to the estate and customer accounts, seek funding support and indeed manage both the logistical, resource and human challenges created for the facility from closing and re-opening a few times but also from the changing and evolving landscape of restrictions on operations.

Additionally, and as was mentioned in last year’s report, the former CEO resigned just prior to the start of lockdown 1 which meant his tenure ceased before the first re-opening in July. The trustees sought additional support in that time though market forces conspired against suitable appointment and support was eventually provided via a part time secondee employed by another Leisure sector trust.

The former Management Accountant also resigned his post late in 2020 and indeed via the seconded ‘Acting GM’ suitable and sufficient business support contracts were procured and approved by the Trustees’ and thankfully in time to be able to operate the payroll remotely during lockdown two with ‘on-site’ support via a new role for a long serving member of the team as the ‘Business Administration Manager’ with support via the Acting GM.

The structure referred to above aided and supported by the operations Manager and indeed members of the Board of Trustees have worked to ensure that Carn Brea Leisure Centre Trust was both ready and able to meet the needs of its customer base as and when restrictions were lifted.

• FUNDRAISING ACTIVITIES/INCOME GENERATION

Carn Brea Leisure Centre Trust owns 100% of the share capital of Carn Brea Leisure Centre (Trading) Limited, a company incorporated in England and Wales (company no. 04212770). The principal activity of Carn Brea Leisure Centre (Trading) Limited is to operate the commercial activities at Carn Brea Leisure Centre. All taxable profits generated through this trading subsidiary are donated to Carn Brea Leisure Centre Trust.

Across the year in question the Trust had no option other than to dip into its reserves position but also focused on, bid for and indeed was awarded some not insignificant grant funding which aided to ensure its position was as stable one as possible from which it could move forward post pandemic to restart, re-engage and hopefully work toward full integration and recovery post pandemic.

4

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2021

FINANCIAL REVIEW

• GOING CONCERN

Whilst the COVID 19 pandemic indeed has had a profound effect on many and certainly a wide reaching one on Leisure provision within Cornwall the core team has worked tirelessly as mentioned above to ensure that the Centre is in as good a position as possible, and indeed perhaps better than anticipated, to weather the storm of COVID 19 and to the point of writing ensure that is in a strong position to trade its way through, and out the other side of the pandemic (as far as can be reasonably judged).

On this basis the Trustees do not foresee that there are any immediate going concern issues and indeed would go as far as to suggest that confidence and strength by consequence of determination and resolve have served to ensure that confidence is significantly better than at this point last year.

The Trust holds limited reserves, and has utilised these when necessary.

The Trustees, Acting GM and Management Team have considered the impact of Covid-19 based on all known current factors and indeed how the Centre has responded to the pandemic, the impact of Covid-19 will undoubtedly continue to have an effect on the performance of the charity in the short and perhaps medium term.

Whilst there is a material uncertainty as a result of the Covid-19 pandemic, the Trustees remain confident that with the support of customers, staff and key stakeholders that the Trust will be able to continue to operate for the foreseeable future based on the information available and projections produced at this time.

As a result the Trustees believe that it is appropriate to continue to prepare the financial statements on the going concern basis.

• FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Trustees have assessed the major risks they have identified and are satisfied that systems are in place to mitigate exposure to these risks.

STRUCTURE, GOVERNANCE AND MANAGEMENT

• CONSTITUTION

The company was established under a Memorandum of Association which established the objects and powers of the charitable company and it is governed by its Articles of Association.

The company was incorporated under the Companies Act 1985 as a company limited by guarantee and not having share capital. In the event of a winding up, registered members are liable to contribute a sum not exceeding £10 per member towards the debts and liabilities of the Trust and the costs and expenses of winding up.

•

METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES

New Trustees are recruited based on the skills, knowledge and experience that the Board requires to ensure that the charity is well governed. Trustees are elected by the members of the charity attending the Annual General Meeting or by proxy vote.

5

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2021

• POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES

Following appointment, all new Trustees attend an induction with the Company Secretary. The induction includes provision to them of the following material, our Memorandum and Articles of Association, The Hallmarks of an Effective Charity (CC60), The Essential Trustee (CC3), Charities and Risk Management information, management accounts and operational information.

• PAY POLICY FOR SENIOR STAFF

It is essential for Carn Brea Leisure Centre Trust (CBLCT) to have competent and credible leaders at the top of the charity to guide us towards achieving our vision in the most effective and efficient ways; and professional staff at all levels.

Having a competitive salary offering is one of the many ways CBLCT can work to secure the best people to do this important work. CBLCT has pay policies to help us attract and retain great people.

The remuneration committee within the Board of Trustees, led by the Chair, are responsible for defining CBLCT pay policies, particularly our pay grades and processes to determine the salaries of the Chief Executive and the executive team (our senior managers who lead our other staff).

An important pay principle in our pay policies is that our pay grades, salaries and benefits should be proportionate to the complexity of role responsibilities, in line with our charitable objectives and competitive within the UK charity sector.

We aim to pay around the median for similar roles in similar organisations but not compete on salaries within the public or private sectors. To help us achieve this, we monitor charity sector pay trends through available reputable sources such as charity trade associations.

•

ORGANISATIONALSTRUCTURE AND DECISION MAKING

The centre's structure continues to evolve to reflect the needs of the business, on average we employed between 60 and 80 members of staff primarily from the Camborne, Pool and Redruth community. The team consists of both full time and part time employees. The team is managed by the senior management group, through the departmental and supervisory team leaders.

• RISK MANAGEMENT

The Trust takes a pro-active approach to risk management and has a risk management policy in place, which is reviewed annually at the end of each financial year.

As part of developing the risk management policy the Trustees have assessed the major risks and are satisfied that systems are in place to mitigate exposure to these risks. A strand of the risk management policy is to apportion ‘reserve’ cash funds independent of the fixed assets within the designated fund (£75,474) for the purpose of contingency and at the end of March 2021 the charity held a reserve fund of £10,062 which has been eroded as a result of the trading difficulties faced in the year. The Trust is aiming to increase their general reserve fund going forwards, however, recognises that as a result of the Covid-19 pandemic this will be difficult to achieve in the short term.

6

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2021

PLANS FOR FUTURE PERIODS

• FUTURE DEVELOPMENTS

The Trust's short to medium term objective is to deliver an improved and sustainable leisure centre in the CPIR conurbation. Cornwall Council have recently conducted a review of Leisure Facilities within the County which was conducted by SLL on their behalf and whilst we are told found favourable.

INFORMATION ON FUNDRAISING PRACTICES

The Trust did and continues to fund raise across a number of platforms in order to create investment, renewals, new opportunities and provide its services on a continual basis to its existing customer base and endeavour to attract new custom and users.

TRUSTEES’ RESPONSIBILITIES STATEMENT

The Trustees (who are also directors of Carn Brea Leisure Centre Trust 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DISCLOSURE OF INFORMATION TO EXAMINER

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

7

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Trustees’ report

For the year ended 31 March 2021

This report was approved by the Trustees, on 16 December 2021 and signed on their behalf by:

By order of the Board

Station Road Pool REDRUTH Cornwall TR15 3QS

D Price Trustee

8

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Independent examiners’ report to the trustees of Carn Brea Leisure Centre Trust (“the Group)

I report to the charity trustees on my examination of the consolidated financial statements of the Group comprising the Carn Brea Leisure Centre Trust (‘the Trust’) and its subsidiary undertaking for the year ended 31 March 2021, which are set out on pages 11 to 30.

Responsibilities and basis of report

As the trustees of the Trust you are responsible for the preparation of the consolidated financial statements of the Group in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’) and you have chosen to prepare consolidated financial statements for the Group. You are satisfied that the financial statements of both the Trust and the Group are not required by company and charity law to be audited and have chosen instead to have an independent examination.

I report in respect of my examination of the consolidated financial statements. I have carried out my examination under section 145 of 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.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the consolidated financial statements present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement

Since the Trust’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 I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

9

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Independent examiners’ report to the trustees of Carn Brea Leisure Centre Trust (“the Group) - continued

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 financial statements to be reached.

Mark Williams FCA DChA Chartered Accountant

RRL LLP Peat House Newham Road TRURO TR1 2DP

16 December 2021

10

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Consolidated statement of financial activities (incorporating income and expenditure account)

For the year ended 31 March 2021

Unrestricted funds Unrestricted funds
General Designated Restricted Total Total
fund fund funds funds funds
2021 2020
Notes £ £ £ £ £
Income from:
Donations and legacies 2 567,575 - - 567,575 42,710
Charitable activities 5 352,902 - - 352,902 1,599,805
Other trading activities 3 21,411 - - 21,411 95,423
Investments 4 290 - - 290 1,989
__ __ __ __ __
Total income 942,178 - -
942,178		 1,739,927
__ __ __ __ __
Expenditure on:
Raising funds 3 11,271 - - 11,271 31,542
Charitable activities 6 1,242,374 - 47,634 1,290,008 1,722,547
__ __ __ __ __
Total expenditure 1,253,645 - 47,634 1,301,279 1,754,089
__ __ __ __ __
Net expenditure before transfers (311,467) - (47,634) (359,101) (14,162)
Transfers between funds 183,734 (183,734) - - -
__ __ __ __ __
Net movement in funds (127,733) (183,734) (47,634) (359,101) (14,162)
Total funds brought forward 137,795 259,208 609,875 1,006,878 1,021,040
__ __ __ __ __
Total funds carried forward 10,062 75,474 562,241 647,777 1,006,878

The notes on pages 14 to 30 form part of these financial statements.

11

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Consolidated and company balance sheet

As at 31 March 2021

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due
within one year
16
Net current (liabilities)/assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Net assets
20
Charity funds
Restricted funds
19
Unrestricted funds
19
- Designated funds
- General fund

Total funds		 The Group
2021
2020
£
£
1,470,070
1,675,506
-
-
__
_
1,470,070
1,675,506
__
_
8,845
10,536
71,086
61,871
187,481
277,646
__
_
267,412
350,053
(293,908)
(300,802)
__
_
(26,496)
49,251
__
_
1,443,574
1,724,757
(795,797)
(717,879)
__
_
647,777
1,006,878

562,241
609,875
75,474
259,208
10,062
137,795
__
__
647,777
1,006,878		 The Charity
2021
2020
£
£
1,458,032
1,658,250
10
10
__
_
1,458,042
1,658,260
__
_
8,738
10,429
77,083
69,175
178,349
269,582
__
_
264,170
349,186
(284,278)
(286,760)
__
_
(20,108)
62,426
__
_
1,437,934
1,720,686
(795,797)
(717,879)
__
_
642,137
1,002,807
562,241
609,875
75,474
259,208
4,422
133,724
__
__
642,137
1,002,807

The company (and group) is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006 for the year ended 31 March 2021. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements.

The Directors’ responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the special provisions applicable to companies subject to the small companies regime.

These financial statements were approved and authorised for the issue of the Trustees on 16 December 2021 and signed on their behalf by:

D Price Trustee

These notes on pages 14 to 30 form part of these financial statements. Company registration no.: 03896891

12

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Consolidated statement of cash flows

For the year ended 31 March 2021

2021 2020
£ £
Note
Cash flows from operating activities
Net cash (utilised)/provided by operating activities 22 (114,471) 212,092
__ __
Cash flows from investing activities:
Dividends, interest and rents from investments 290 1,975
Purchase of tangible fixed assets (17,691) (306,672)
Interest payable on borrowings (34,225) (34,057)
__ __
Net cash used in investing activities (51,626) (338,754)
__ __
Cash flows from financing activities:
Repayments of borrowings - (72,802)
Cash inflows from new borrowing 75,932 200,000
__ __
Net cash provided by financing activities 75,932 127,198
__ __
Change in cash and cash equivalents in the year (90,165) 536
Cash and cash equivalents brought forward 277,646 277,110
__ __
Cash and cash equivalents carried forward 23 187,481 277,646

13

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

1 Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with 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 (FRS102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Carn Brea Leisure Centre Trust 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.

The Statement of financial activities (SOFA) and Balance sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

1.2 Basis of consolidation

The financial statements consolidate the financial statements of Carn Brea Leisure Centre (Trading) Limited its subsidiary undertaking.

The company has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Income and expenditure account.

The Carn Brea Leisure Centre Trust individual SOFA shows total income of £454,662, total expenditure of £811,103 and a net movement in funds of (£356,441).

1.3 Company status

Carn Brea Leisure Centre Trust is a company limited by guarantee incorporated in England and Wales and accordingly does not have any share capital. Every member undertakes to contribute such amount as may be required not exceeding £10 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

These financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financials statements are rounded to the nearest £.

The registered office is disclosed within the reference and administrative details of the company, on page 1.

1.4 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.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

14

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

1 Accounting policies (continued)

1.4 Fund accounting (continued)

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 purposes. 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.

Investment income, gains and losses are allocated to the appropriate fund.

1.5 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees' report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the company which is the amount the company would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

1.6 Expenditure

Expenditure is recognised once 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 between 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.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

15

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

1 Accounting policies (continued)

1.6 Expenditure (continued)

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

1.7 Going concern

The Covid-19 pandemic continues to create challenges for all in the leisure industry, the Trust has taken swift action to ensure that the facilities continue to be available to customers having taken all necessary steps to protect both users and staff. Costs continue to be controlled carefully and grants have been claimed wherever possible (particularly in respect of the Job Retention Scheme).

The Trust ultimately aims to be able to return to pre Covid levels of income, and whilst there is uncertainty over when this will be achievable, loan funding has been obtained in order that the Trust can continue to operate.

Whilst there is an element of uncertainty as to when the Trust will return to pre Covid income levels, the Trustees remain confident that with the support of customers, staff and key stakeholders that the charity will be able to continue to operate for the foreseeable future based on the information known at this time. As a result the Trustees believe that it is appropriate to continue to prepare these financial statements on the going concern basis.

1.8 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.

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:

Short-term leasehold property - Over life of lease (5-25 years) Plant and machinery - 10-33% straight line Fixtures and fittings - 10-33% straight line Computer equipment - 20-50% straight line

16

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

1 Accounting policies (continued)

1.9 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 'Gains/(losses) on investments' in the Statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

1.10 Leasing and hire purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated o future periods. The finance element of the rental payment is charged to the statement of financial activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

1.11 Operating leases

Rentals under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.

1.12 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.

1.13 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.14 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.

1.15 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.

1.16 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.

17

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

1 Accounting policies (continued)

1.17 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.

1.18 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.

1.19 Pensions

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

1.20 Critical accounting estimates and judgements

In the application of the company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

18

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

2 Income from donations and legacies

2 Income from donations and legacies
Unrestricted Restricted Total
Total
funds funds 2021
2020
£ £ £
£
Donations 272 - 272
6,710
Grants:
-
Cornwall Council		 21,589 - 21,589
-
-
HMRC – Job Retention Scheme		 477,214 477,214
-
-
Growth Fund Business Support		 5,500 - 5,500
-
-
Big Issue Invest		 63,000 - 63,000
-
-
Changing Places Project		 - - -
36,000
__ __ __
__
Total donations and legacies 567,575
 -
 567,575
42,710
Total 2020 -
 42,710
 42,710
42,710
HMRC grants included within the above have been received totalling £477,214 (2020: Nil) to assist with the
furloughed staff whilst in a nationwide lockdown due to COVID-19.
3 Trading activities
Unrestricted Restricted Total
Total
funds funds 2021
2020
£ £ £
£
Trading income
Trading income 21,411 - 21,411
95,423
__ __ __ __
Fundraising trading expenses
Trading expenses (including depreciation) 11,271 - 11,271
31,542
__ __ __
__
Net income from trading activities 10,140 -
 10,140
63,881
4 Investment income
Unrestricted Restricted Total
Total
funds funds 2021
2020
£ £ £
£
Bank interest receivable 290 -
 290
1,989
Total 2020 1,989 - 1,989

19

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

5 Income from charitable activities

Unrestricted
funds
Restricted
funds
£
£
Operation of the leisure centre
352,902
-

1,599,805
-
Total 2020

Operation of the leisure centre income can be summarised as follows:
Unrestricted
funds
Restricted
funds
£
£
Rent receivable
1,584
-
Gym income
198,770
-
Pool and sports activities
146,012
-
Catering and refreshments income
1,146
-
Sales of sports goods
1,765
-
Other activities
3,625
-
_
_
Total
352,902
-

6
Analysis of expenditure on charitable activities
Unrestricted
funds
Restricted
funds
£
£
Operation of the leisure centre
1,242,374
38,961
Operation of the Hub Club project
-
8,673
_
_
1,242,374
47,634

Total 2020
1,683,455
39,092		 Total
2021
£
352,902

1,599,805

Total
2021
£
1,584
198,770
146,012
1,146
1,765
3,625
__
352,902

Total
2021
£
1,281,335
8,673
__
1,290,008
1,722,547		 Total
2020
£
1,599,805
Total
2020
£
10,445
704,969
704,641
111,466
16,182
52,102
_
1,599,805
Total
2020
£
1,713,874
8,673
_
1,722,547		 Total
2020
£
1,599,805
Total
2020
£
10,445
704,969
704,641
111,466
16,182
52,102
_
1,599,805
Total
2020
£
1,713,874
8,673
_
1,722,547
Total
2020
£
1,713,874
8,673
__
1,722,547

20

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

7 Direct costs

Cost of sales
Leasing and equipment rental costs
Cleaning and waste removal
Repairs and renewals
Other staff costs
Printing, postage and stationery
Health and safety
ICT system expenses
Sundry expenses
Staff training
Premises costs
Loss on sales of assets
Irrecoverable VAT
Bank charges and interest
Licenses and subscriptions
Legal and professional
Bookkeeping
Advertising and marketing
Wages and salaries
National insurance
Pension cost
Depreciation
Total 2020
Support and governance costs
Auditors’ / Independent Examiners remuneration
Total 2020		 Operation
of the
leisure
centre
£
9,333
3,494
5,424
22,591
-
2,805
3,547
2,321
-
146
128,299
-
30,546
36,259
14,961
10,509
7,128
537
740,931
36,943
10,974
209,236
__
1,275,984

1,710,624
 Operation
of the Hub
Club
project
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,673
_
8,673

8,673

Operation
of the
leisure
centre
£
5,350
_
5,350

3,250
 Total
2021
£
9,333
3,494
5,424
22,591
-
2,805
3,547
2,321
-
146
128,299
-
30,546
36,259
14,961
10,509
7,128
537
740,931
36,943
10,974
217,909
__
1,284,657

1,719,297

Total
2021
£
5,350
__
5,350

3,250
 Total
2020
£
73,478
6,837
17,997
53,956
7,563
6,579
7,297
8,565
170
-
201,552
27,540
56,466
41,999
27,575
15,547
-
6,086
887,183
43,982
13,077
215,848
__
1,719,297
Total
2020
£
3,250
__
3,250

8 Support and governance costs

21

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

9 Turnover

The whole of the turnover is attributable to leisure activities along with education and training in these activities.

All turnover arose within the United Kingdom.

10 Net expenditure

This is stated after charging:

Depreciation 2021
£
223,127
 2020
£
220,726

During the year, no Trustees received any remuneration (2020: £Nil). During the year, no Trustees received any benefits in kind (2020: £Nil).

During the year, no Trustees received any reimbursement of expenses (2020: £Nil).

11 Staff costs

Staff costs
2021
2020
£
£
Wages and salaries 740,931
887,183
Social security costs 36,943
43,982
Other pension costs 10,974
13,077
__
__
788,848
944,242
he average monthly numbers of persons employed by the company during the year was as follows:
2021
2020
Full and part time employees 69
85
Average headcount expressed as a full time equivalent:
2021
2020
Management 2
3
Administrative 3
2
Operational - Charity 20
39
Operational - Trading 1
1
__ __
26
45

The average monthly numbers of persons employed by the company during the year was as follows:

No employee received remuneration amounting to more than £60,000 in either year. Total key management personnel remuneration was £90,451 (2020: £112,365)

22

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

12 Tangible fixed assets

Company
Short-term
leasehold
Property
Plant and
machinery
Fixtures,
fittings and
equipment
£
£
£
Cost
At 1 April 2020
1,647,414
527,498
632,868
Additions
3,500
14,191
-
_
_
_
At 31 March 2021
1,650,914
541,689
632,868

Depreciation
At 1 April 2020
538,251
270,276
341,003
Charge for the year
87,511
57,569
72,829
_
_
_
At 31 March 2021
625,762
327,845
413,832

Net book value
At 31 March 2021
1,025,152
213,844
219,036
_
_
_
At 31 March 2020
1,109,163
257,222
291,865
Group
Short-term
leasehold
Property
Plant and
machinery
Fixtures,
fittings and
equipment
£
£
£
Cost
At 1 April 2020
1,647,414
531,617
670,637
Additions
3,500
14,191
-
_
_
_
At 31 March 2021
1,650,914
545,808
670,637
_
_
_
Depreciation
At 1 April 2020
538,251
273,903
362,008
Charge for the year
87,511
58,026
77,590
_
_
_
At 31 March 2021
625,762
331,929
439,598
Net book value
At 31 March 2021
1,025,152
213,879
231,039
_
_
__
At 31 March 2020
1,109,163
257,714
308,629
 Total
£
2,807,780
17,691
_
2,825,471
1,149,530
217,909
_
1,367,439
1,458,032
_
1,658,250
Total
£
2,849,668
17,691
_
2,867,359
_
1,174,162
223,127
_
1,397,289
1,470,070
__
1,675,506

23

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

13 Fixed asset investments

Company
Carrying value at cost
As at 1 April 2020 and 31 March 2021
Carn Brea Leisure Centre (Trading) Limited
Summary profit and loss account for the year ended 31 March 2021
Turnover
Cost of sales

Gross profit
Administrative expenses
Other operating income
Interest receivable
Donation to parent

Result for the year
Balance sheet as at 31 March 2021
Tangible fixed assets
Current assets
Creditors falling due within one year

Aggregate share capital and reserves		 Shares in
group
undertaking
£
10
2021
2020
£
£
21,411
98,386
(11)
(3,349)
__
_
21,400
95,037
(11,260)
(28,193)
-
154
3
14
(8,574)
(76,861)
__
_
1,569
(9,849)
12,038
17,256
18,835
16,945
(25,223)
(30,120)
__
__
5,650
4,081

Carn Brea Leisure Centre Trust owns 100% of the share capital of Carn Brea Leisure Centre (Trading) Limited, a company incorporated in England and Wales (company no. 04212770). The principal activity of Carn Brea Leisure Centre (Trading) Limited is to operate the commercial activities at Carn Brea Leisure Centre. The registered office of Carn Brea Leisure Centre (Trading) Limited is the same as Carn Brea Leisure Centre Trust.

14 Stocks

Stocks
Group Company
Group and company 2021 2020 2021 2020
£ £ £ £
Finished goods and goods for resale 8,845 10,536 8,738 10,429

24

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

15 Debtors

2021
£
Trade debtors
10,630
Amounts owed by group undertakings
-
Prepayments and accrued income
60,456
__
71,086
Creditors: amounts falling due within one year
2021
£
Other loans
86,558
Trade creditors
47,222
Other taxation and social security
39,423
Other creditors
2,074
Accruals and deferred income
118,631
__
293,908		 Group
2020
£
17,526
-
44,345
_
61,871
Group
2020
£
88,544
27,456
14,542
3,452
166,808
_
300,802
2021
£
1,824
15,593
59,666
__
77,083

2021
£
86,558
47,162
37,367
2,074
111,117
__
284,278		 Company
2020
£
9,615
16,078
43,482
_
69,175
Company
2020
£
88,544
26,937
13,023
3,452
154,804
_
286,760

16 Creditors: amounts falling due within one year

Deferred income comprises booking fees from clubs and schools received in advance, bi-annual and annual gym memberships received in advance and advance payments for swim school courses.

Deferred income

Deferred income at 1 April 2020
Resources deferred during the year
Amounts released from previous years
Deferred income as at 31 March 2021
Financial instruments
Carrying amount of financial assets
Debt instruments measured at
amortised cost
Carrying amount of financial
liabilities
Measured at amortised cost		 2021
£
10,630

929,577
 Group
2020
£
17,526

833,879
 Group
£
104,993
67,950
(104,993)
__
67,950

2021
£
1,824

929,517
 Company
£
96,090
62,232
(96,090)
__
62,232
Company
2020
£
9,614

833,360

17 Financial instruments

25

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

18 Creditors: amounts falling due after more than one year

Group Charity
2021 2020 2021 2020
£ £ £ £
Other loans 795,797 717,879 795,797 717,879

Other loans include aggregate amounts of £635,859 (2020: £531,247) which fall due after five years and are repayable by instalments.

The payment terms and interest rate of each creditor are: the loans from Cornwall Council are repayable over a term of 18 and 19 years and both carry an interest rate of 4%, the loans from Big Issue Invest are repayable over 7 years and carry an interest rate of 7.5%, the Santander bounce back loan is repayable over 6 years and carries an interest rate of 2.5%.

Other loans are secured by fixed charge and a floating charge over the charity's assets.

19 Statement of funds – current year

Balance as
at 1 April
2020
£
Designated funds
Capital fund
259,208
General funds
137,795
_
Total unrestricted funds
397,003
_
Restricted funds
Hub Club project
94,028
Sport England – Club House
37,929
Sport England – Pool
Refurbishment
443,750
Changing Places project
34,168
_
609,875
_
Total of funds
1,006,878
 Income
Expenditure
£
£
-
-
942,178
(1,253,645)
_
_
942,178
(1,253,645)
_
_
-
(8,673)
-
(5,419)
-
(25,000)
-
(8,542)
_
_
-
(47,634)
_
_
942,178
(1,301,279)

 Transfers
Balance as
at 31 March
2021
£
£
(183,734)
75,474
183,734
10,062
_
__
-
85,536
_
__
-
85,355
-
32,510
-
418,750
-
25,626
_
__
-
562,241
_
__
-
647,777

26

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

19 Statement of funds (continued)

Statement of funds – prior year

Balance as
at 1 April
2019
£
Designated funds
Capital fund
323,076
General funds
83,165
_
Total unrestricted funds
406,241
_
Restricted funds
Hub Club project
102,701
Sport England – Club House
43,348
Sport England – Pool
Refurbishment
468,750
Changing Places project
-
_
614,799
_
Total of funds
1,021,040

Summary of funds – current year
Balance at 1
April 2020
£
Designated funds
259,208
General funds
137,795
_
397,003
Restricted funds
609,875
_
1,006,878
 Income
Expenditure
£
£
-
-
1,697,217
(1,706,455)
_
_
1,697,217
(1,706,455)
_
_
-
(8,673)
-
(5,419)
-
(25,000)
42,710
(8,542)
_
_
42,710
(47,634)
_
_
1,739,927
(1,754,089)


Income
Expenditure
£
£
-
-
942,178
(1,253,645)
_
_
942,178
(1,253,645)
-
(47,634)
_
_
942,178
(1,301,279)

 Transfers
Balance as
at 31 March
2020
£
£
(63,868)
259,208
63,868
137,795
_
__
-
397,003
_
__
-
94,028
-
37,929
-
443,750
-
34,168
_
__
-
609,875
_
__
-
1,006,878


Transfers
Balance as
at 31 March
2021
£
£
(183,734)
75,474
183,734
10,062
_
__
-
85,536
-
562,241
_
__
-
647,777

27

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

19 Statement of funds (continued)

Summary of funds – prior year

Balance at
1 April
2019
Income
Expenditure
£
£
£
Designated funds
323,076
-
-
General funds
69,245
1,697,217
(1,706,455)
_
_
_

392,321
1,697,217
(1,706,455)
Restricted funds
614,799
42,710
(47,634)
_
_
_

1,007,120
1,739,927
(1,754,089)


 Transfers
Balance as
at 31 March
2020
£
£
(63,868)
259,208
63,868
137,795
_
__
-
397,003
-
609,875
_
__
-
1,006,878

Purpose of unrestricted funds

The designated capital fund has been created in the year to recognise the Trust’s own reserves that are held in non-cash capital items that cannot readily be converted into cash.

Purpose of restricted funds

Restricted funds are to be used for specific purposes as laid down by the donor.

Funds restricted for the Athletics track were provided for the cost of maintenance and upkeep of the running track facility. This fund has been fully spent for the purposes intended.

The Hub Club Project comprises the grant funded building used to promote grass roots sports clubs. The building is also rented out as a meeting space.

The Sport England - Club House fund represents the costs of the Club House funded by a Sport England capital grant.

The Sport England - Pool Refurbishment fund represents the costs of refurbishing the pool which was funded by a Sport England capital grant. Should the asset be disposed of, or if the charity ceases to operate then this funding may become repayable. Sport England hold a charge in respect of this.

Changing Places project – funding obtained towards the Changing Places facilities at the Centre.

The trustees believe that sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with the restrictions.

28

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

20 Analysis of net assets between funds

Analysis of net assets between funds – current year

Unrestricted
funds
Restricted
funds
£
£
Tangible fixed assets
907,829
562,241
Current assets
267,412
-
Creditors due within one year
(293,908)
-
Creditors due in more than one year
(795,797)
-
_
_
85,536
562,241

Analysis of net assets between funds – prior year
Unrestricted
funds
Restricted
funds
£
£
Tangible fixed assets
1,065,631
609,875
Current assets
350,053
-
Creditors due within one year
(289,527)
-
Creditors due in more than one year
(729,154)
-
_
_
397,003
609,875		 Total
funds
2021
£
1,470,070
267,412
(293,908)
(795,797)
_
647,777
Total
funds
2020
£
1,675,506
350,053
(289,527)
(729,154)
_
1,006,878

21 Reconciliation of net movement in funds to net cash flow from operating activities

2021 2020
£ £
Net expenditure for the year (as per Statement of Financial Activities) (359,101) (14,162)
Adjustment for:
Depreciation charges 223,127 220,726
Interest paid 34,225 34,057
Dividends, interest and rents from investments (290) (1,975)
Loss on the sale of fixed assets - 27,540
Decrease/(increase) in stocks 1,691 (750)
(Increase)/Decrease in debtors (9,215) 8,540
(Decrease) in creditors (4,908) (61,884)
__ __
Cash (utilised)/generated from operating activities (114,471) 212,092

29

Carn Brea Leisure Centre Trust (Limited by Guarantee)

Notes

(forming part of the financial statements)

22 Analysis of cash and cash equivalents

2021 2020
£ £
Cash in hand 187,481 277,640

23 Pension commitments

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the fund and amounted to £10,974 (2020: £13,077). The outstanding contributions at the year end was £1,846 (2020: £2,747).

24 Operating lease commitments

At 31 March 2021 the total of the group's future minimum lease payments under non-cancellable operating leases was:

Group and company
Within 1 year
Between 1 and 5 years
Total		 2021
£
2,768
3,957
__
6,725
 2020
£
2,768
6,725
__
9,493

25 Related party transactions

Carn Brea Leisure Centre (Trading) Limited, a trading subsidiary, made a gift aid donation of £8,574 (2020: £76,861) to the Trust during the year. Included within debtors due within one year is an amount of £15,593 (2020: £16,078) owed to the Trust by Carn Brea Leisure Centre (Trading) Limited. During the year the Trust recharged its subsidiary £255 (2020: £14,310) for wages and salary costs.

26 Controlling party

The ultimate controlling parties are the Trustees of the company as shown on page 1.

30