REGISTERED COMPANY NUMBER: 03782811 (England and Wales) REGISTERED CHARITY NUMBER: 1080186 REPORT OF THE TRUSTEES AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 FOR THURROCK COMMUNITY LEISURE LIMITED Mccabe Ford Williams Statutory Auditors and Chartered Accountants Building 1063 Comforth Drive Kent Science Pa Sittingboume Kent ME9 8PX THURROCK COMMUNITY LEISURE LIMITED CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Page Reference and Administrative Details Report of the Trustees 2to20 Report of the Independent Auditors 21to23 Consolidated Statement of Financial Activities 24 Balance Sheet 25 Consolidated Cash Flow Statement 26 Notes to the Consolidated Cash Flow Statement 27 Notes to The Consolidated Financial Statements 28to51 THURROCK COMMUNITY LEISURE LIMITED REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2024 TRUSTEES Tunde Ojetola (Chair) Jatinder Nahal (Vice Chair) Barry Norrington Dr James Watson Juan Rangel (Resigned 0810812023) Kameel Mohammed Mark Coxshall (Resigned 2610512023) Andrew Jefferies (Resigned 1310712023) Patrick Cole (Appointed 1310712023) Joanne Wintour (Appointed 3010112023) James Thandi (Appointed 1310612023- Resigned 2210312024) Joy Redsell (Appointed1310712023 - Resigned 3110112024) Daphne Zameziza Longe (Appointed 0110812023) Mark Couldridge (Appointed - 2610912023) Cllr Steve Liddiard (Appointed - 24 May 2024) COMPANY SECRETARY Kay Volk (Resigned -1810112024) Nora Obeng-Tuudah (AppoinÈd -1810112024) MANAGING DIRECTOR Karl Hayes REGISTERED OFFICE AND OPERATIONAL ADDRESS Blackshots Leisure Centre Blackshots Lane GRAYS Essex RM16 2JU TRADING AS Impulse Leisure REGISTERED COMPANY NUMBER 03782811 (England and Wales) REGISTERED CHARITY NUMBER 1080186 AUDITORS Mccabe Ford Williams Statutory Auditors and Chartered Accountants Cornforth Drive, Building 1063 Kent Science Park, Sittingbourne, Kent ME9 8PX BANKERS National Westminster Bank PLC 17 High Street, Grays Essex, RM17 6NP SOLICITORS Winckworth SheNood Minerva House, 5 Montague Close LONDON, SE19BB THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The trustees who are also directors of Ihe group and charity for the purposes of the Companies Act 2006, present their report with the financial statements of the group and charity for the year ended 31 March 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Praclice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS102) (effective1 January 2019). Reference and administrative infomialion set out on page1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities., SORP applicable to charities preparing their accounts in accordance with FRS102. OBJECTIVES AND ACTIVITIES Purposes and aims The objectives of Thurrock Community Leisure {TCL), as set out in its memorandum of association, are to run leisure facilities and services primarily for the benefit of the general public, TCL operates in a manner that does not discriminate against any person by virtue of their age, colour, ra￿, nationality, ethnic or national origin, religionlbelief, unrelated criminal convictions, gender, gender re-assignment, sexual orientation, marital status I civil partnership, or socio-economic ststus. The strategy of TCL is the pursuit of its mission, which continues to be ever more important to the community needs. The mission is 'Creating active & healthy cofflmunities,. TCL'S priorities include - Inslilling pride in communities through training, education, improving the quality of life, youth engagement and increasing opportunities Contributing towards achieving safer communities Developing prosperous communities through the attraction of inward investment Promoting inclusive and diverse communities Promoting community regeneration through environmental and cultural improvements Delivering healthier, more active communities. In order to fulfil its objects TCL manages four leisure centres at Belhus Park (plus the Golf Course}, Blackshots (plus the Civic Hall), The Gym Hub Iwickford) and Corringham. TCL operates under an Impulse Leisure and Gym Hub brand. The main source of income is from Ihe sale of health and fitness (gym and exercise classes) membership, golf, swimming and swimming lessons, a varied programme of events and entertainment at the Civic Hall. The facilities are managed to maximise financial efficiency and generate surplus wherever possible. When surpluses are generated, 1000/0 of the surpluses are used to maintain, improve, and extend the facilities and services provided for the benefit of the local community, Service improvements are used to generate improved efficiency, increase income and to improve the health and wellbeing of the community. In shaping objectives and planning activities, the trustees considered the Charity Commission's guidance on public benefit, including the guidance on fee charging, TCL relies on extemal programme funding, but mainly the income from fees and charges to cover its operating costs. In setting the level of fees, charges and concessions, the trustees give careful consideration to the accessibility of the services for those on low incomes and those from other disadvantaged groups, As a result, significant pricing discounts are available to concessionary groups. In addition, special programmes and sessions are planned and delivered lo help disadvantaged members of the community improve their health and wellbeing, through participating in relevant activities. Specific examples ofwork undertaken to target public benefit, sometimes at the expense of financial efficiency include employment of apprentices where possible, volunteering opportunities, delivery of numerous health and mental wellbeing irnprovement programmes (often in partnership with others), offering free taster sessions, attending community events and provision of memberships to community groups working with disadvantaged communities. Page12 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT Achievement and performance In 2023-2024, Ihe global economy experienced a period of recovery and growth following the challenges posed by the COVID-19 pandemic, The year has seen significant price increases across the board affecting our purchase pricing for utilities supplies and services and salaries. These costs have impacted all businesses, as well as the consumer, as these price increases have been passed to the end user. Increased interest rates have also affected our consumers with large hikes in mortgage and loans rates, reducing their available leisure pound. Despite these challenges we have seen a strengthening in consumer Confiden￿ with a strong uptske and growth of Leisure Memberships and Swimming Lessons. We have continued our mission to promote the benefits of physical activity to impact the risk of ill health, whilst supporting those with specialist programmes that are impeded by life debilitating conditions. The National shortage of Leisure professionals continued which consistently affected our ability to grow due to a lack of Swim Teachers to meet the continuing deffland for Swimming Lessons, We continue to upskill our existing teams, retrain previously qualified instructors and offer new training opportunities for the community to change careers or start a new one to meet the growing demand, Whilst we have managed to secure affordable rates for utilities, we are experiencing increases in pre covid rates (electricity 1490/0 increase and Gas 3660/0 increase). We have continued through our environmental team to implement energy saving interventions as well as educating ourteam to think alJ)ut energy in their daily tasks, In partnership with the Local Authority, V￿ were SUC￿ssful in receiving a revenue grant of £240k from the National swimming pool support fund - Phase1. This grant for Corringham and Blackshots supported the increases in costs. We have committed as a condition of the support fund to contribute our data to the Moving Communities data to support future schemes, as required by Sport England. A joint phase 2 application was also partially granted to implement a replacement pool cover and Air handling unit at Blackshots. We continue to work with the Local Authority on their implementation of these investments to reduce energy consumption. We have managed to meet our agfeed payment schedules for all the legacy bills created during Covid, whilst maintaining a good cash position. Costs throughout the year have been constantly monitored and controlled but with increases in prices for most goods and seNices this has been another challenging year. All facililies remained fully open and met customer expectations in ensuring value for money within their membership fees including access to hot water for showers reducing their own costs and a wa￿n space during the cold months. Total attendance levels in service continue to rise and we are seeing that the pattems of behaviour have now retumed to pre covid trends. Swimming lessons {l-swim) numbers have continued to be strong with many of the classes at capacity, however, consistency of Teachers has been a continual issue with higher-than-expected class cancellations. Belhus has been the worst affected by this and has struggled again to hit targets, This remains extremely frustrating, and we are reshaping and remodelling the swim teacher departments to build in support, Suc￿sSion, and cover from the new year. Page13 THURROCK COMMUNif( LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT Achievement and performance- continued Management and staff continue to work haNI and maximize the resource outputs to maintain the levels of service and delivery during periods of low staffing resource, this challenge has been particularfy difficult in maintaining the cleanliness of the facilities with extremely low cleaner resources. Despite these challenges TCL continued to improve and extend Ihe services provided and provide high levels of customer support. In addition to noffnal essential planned and preventative maintenance there has been several refurbishment and upgrade projects and general service improvements most notably- Blackshots General décor and repairs. Belhus Park Gym layout and environment refresh. Additional deadlift plafform. New wellness check-in pod and body analysis scales Installation of the Community Garden Corringham • Energy saving destratification fans in the pool hall. • Gym refurbishment and layout. • Complete replacement of the fixed resistance and increased functional space. • New wellness pod and body analysis scales. New cardiovascular equipment The Gym Hub • Destralification fans to improve the air flow and temperatures. • Partial roof replacement. The Clvlc Hall • Payment upgrade and ticket booking improvements. • Replacement of 200 function chairs. Page14 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT Achlevement and performance- contlnued General Continued IT hardware replacement and upgrades. Targeted, and themed marketing campaigns continue across all Marketing collateral and socials continuing the promotion of a healthy community, We continue to differentiate ourselves as a charitable organisation that cares about our community's health and wellbeing, Cyber security measures have been fully reviewed and improved. Cyber Essentials registralion was maintained again this year. Customer and staff communications have been maintained throughout the year providing advice guidan￿ and updates. The activity registration scheme continues to assist with Iracking who is in the buildings from a security perspective and allows online booking for non-members. We offer booking privileges for non-members 7days in advance to encourage more participation from non-users. We have registered 25106 since its launch and we added a further 3788 residents this year, The Impulse Leisure App continues to be a popular resource for our customers which has seen an increase in active users from 5,000 in July 2023 to 6,600 in March 2024. This fantastic resource enables our customers to easily book and pay for activities conveniently online as well as access other important tools including their Mywellness portal, swimming lesson portal, Mental Heatth advice, Online classes, @home activities and workouts as well as general updates on the service we provide. As the leisure industry and in particular swimming pool operators continue to be impacted by the costs associated by utilities, we maintain a strong focus on reducing our consumption whilst appreciating the support from the Swimming pool recovery fund to ensure customers are not impacled by closures or massive price increases. Our consumption reduction inteNentions include,, • Installation of destratification fans (Corringham & Gym Hub). • Reduced pool water temperatures. • Reduced pool hall air temperatures • Provided l¢xalised heating of offices and lowered the heating around the buildings. • Reduced opening times of the health suites. • Switched off every other piece of duplicated cardiovascularequipment in the gym during quiet times, • Increased awareness of housekeeping measures such as tuming off of lights, tuming off PC plugs ovemight and opening of windows rather than air con. This year we focused our capital energy projects on: • Blackshots- Air handling unit replacement for the teaching pcol. • Corringham - Installing destratification fans. • Corringham - New energy efficient cardiovascular equipment. • The Gym Hub- Installing destralification fans. A new Gas contract was secured at considerably lower rates than this year for the next 24 months. The above improvements demonstrate TCL'S commitment lo continuously improve the facilities whilst we are keeping a mind on increasing our reseNes to ensure the business is prepared for any future disruptions. These improvements make the facilities and seNices more attractive to new customers and obviously increase the value for money existing customers re￿1Ve, Increasing the value for money offering by improving the facilities and services increases the likelihood that more of the community will seek to choose our facilities for their health and wellbeing ￿qUIrements. As such TCL succeeds in its mission of'creating Active & Healthy Communities,. Page15 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT . continued Achievement and performance- contlnued With the work recently completed at the facilities, we are very proud that TCL has now been able to reinvest more than £8m in leasehold improvements and services (this figure excludes the significant investment in gym equipment replacements), all of which have been a great advantage to improving the accessibility and appeal for the community to live a healthy lifestyle. This demonstration of continued reinveslment highlights the tangible benefit for all by operaling the 'charity model, to deliver local leisure services. Altemative solutions or se￿1￿ delivery models are unlikely to be able to reinvest these kinds of sums, as there would have been potentially olher priorities for the money, i.e., shareholderlowner profit, other GounGiI services (general fund), or inveslment in facilities outside of the Borough, In addition, all services provided by TCL are available to all, including spectstors, casual pay and play users as well as members. All prices remain competitive and reflect the community's needs. We also offer significant concessions to those most in need, including heavily discounted or free membership, with at least 500/0 discount on most activity prices, All the facilities operate quality management systems to ensure the level of seryice provision is delivered consistently. Our systems are externally audited and endorsed by the leisure industry quality standard (QUEST). The sites have had their reassessment and have maintained QUEST accreditation in Ihe Very Good category (Belhus Pa￿, Corringham, and Blackshots). The Gym Hub in Wickford only has a1-day assessment and is registered with QUEST. We have continued to wn our Customer Satisfaction suNeys through the Moving Communities plaffom for consistency and transparency. In addition, we offer customer support and feedback via social media and direct feedback remains in Ihe large positive. Our Moving Communities customer satisfaction results are; SATISFACTION IN£ENTREACTIVITY- % Fitters- Fiiiers- Filters- 73.33*. 82.06% 91.49% 86.34% Au923 Au922 The blue filter are The Thurrock Community Leisure facilities results compared to the red, which is National Averages, The satisfaction results are disappointing this year, but when reviewing the data 42 % of responders stated they were quite satisfied, 27% were very satisfied, leaving 29 % less than satisfied. The results for in-centre activity rather than home decreased marginally this year but still in 90'/0+ which confims the demand for indoor facilities. A key question put to pour customers was'ln the past week, on how many days have you done a total of 30 minutes or more of physical activity, which was enough to raise your breathing rate?. 75 % of responders slated they met the Govemment physical activity recommendations of over 3 days or150 minutes of physical activity a week. IUE51th.90 6Qiy¢ Page 16 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT Achievement and performance- continued The health of the community is always at the heart of everything we do. Every activity we provide supports Ihe prevention of ill health. We also specialise in targeted health programme for those unfortunately experien¢ing a level of ill health. The results from these programmes are life changing for many attendees. Some of the initiatives we have been part of this year include: • Lung Screening in Ihe Blackshots car park • CHAPS men's health day • COPD hospital rehabilitation continued to co-locale at Blackshots creating space in hospitals. • Thurrock MIND memberships to provide a gateway of physical activity support to help those struggling with mental health issues. • Expansion of the Cancer Prehab and Rehabilitation program with multiple partners in Essex. • Exercise on Referral continues to support people with comorbidilies affecting their daily lives. Our12- week exercise support programme provides rehabilitation and health maintenance to enhance their quality of life. • Continuation of the water-based exercise referrals has seen increased attendance and health improvements for patients. • We supported the NHS with their Heallh Checks scheme operating from within the Leisure Centre's creating a non-clinical environment to encourage early signs of kidney and heart disease, cancer, and type 2 diabetes. • Fat v Football also launched from Belhus Park inviting participants to combine the skills of football to promote physical activity and weight loss. To assist in supporting those that cannot Iravel to our facilities we have expanded Ihe number of free workouts from home via our app, These free classes target the home user offering Ghair-based exercise sessions, restricted Spa￿ (e.g, home lounge) sessions and exercise safety to ensure home workouts are completed with the proper advice and safety in mind. Most of the above programmes aim to increase physical aclivity levels, targeting health improvement in the community. This all fits perfectly with TCL'S mission 'creating active and healthy communities,. The staff who deliver these schemes and programmes are highly qualified and often praised by the customers for their results, Health and safely improvements continued throughout the year through the constant reviewing and developing of policy and procedures monitored by the Health and Safety Management Committee. Accident numbers for the year were again low but reflective of lower attendances with no major accidents or incidents to note. All accidents and incidents are still recorded via STITCH which also compares our average with the National rate. We value the contributions made by our tsams sometimes in difficult situations and this year we said 'Thank You, with a £25 Love to shop voucher al Chrisknas, We continue to recognise and reward those long-serving loyal team members. This year we acknowledged. 1 x 20-year service award 5 x10-year service award The staff benefits scheme remains more valuable than ever with increasing costs to most employees, personal bills, these all- year-round benefits provide discounts and promotions at high profile national retailers, restaurants, and other popular organisations, and has continued to be used well by employees. General short term Sickness absence has not been a major issue again this year, however we have managed extended periods of sickness absence with empathy and understanding. THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT Achlevement and performance- contlnued We continue to be an Employer Partner of CIMSPA with a commitment to ensure relevant staff are members of the industry's professional institute. Relevant stsff who are members have access to over 2000 hours of online training suitable for undertaking the required CPD relevant to their membership category, Several HR policies have been refreshedlupdated and introduced to ensure our managers and employees have the latest guidan￿ and understanding to manage their teams fairly and consistently, Recruiting qualified personnel has been a challenge this year as we strive to meet the demands of the business. To tackle this, we have adopted several different strategies including Re-train opportunities for local people to qualify as Lifeguards and swim leachers, with each course part funded by Thurrock Community Leisure to ensure the course fees are not a barrier to a change in career. We also increased the number of Leisure Apprenticeships placing opportunities at all sites, these apprenticeships cover all the industry essential technical qualifications and soft skills giving the leamer a flavour for each department providing a development pathway for their chosen career. We also partnered with Ihe local College to provide work placements for Sports students. This year saw the extension of our Volunteering programme at Belhus Park Golf Course with the new community Garden. Our apprenti￿shiP programme is delivered in partnership with an industry leading training provider {Creative Sports and Leisure {CSL)) forging great links with CIMSPA. We are very grateful that there has been another good year of progress by Thurrock Council against their landlord property responsibilities despite their own financial challenges. Some urgent and essential works have been completed, and a programme of works to meet the forthcoming priorities is well underway. Thurrock Council undertook: RAAC Assessments at Blackshots, Corringham, Belhus Park and the Civic Hall which came back clear. • Completed the replacement of the flat roof Govering at Belhus Park. TCL Investments menlioned above. Flnanclal revlew The budget in 2023124 was set and agreed by the Board, which demonstrated a good level of growlh in revenue, but was not sufficient enough to offset the increase in National Minimum wage for a second year in a row and the subsequent impact on the whole company pay structure, the huge rise in costs for all supplies and setvices consumed by TCL, as well as the increase in utilities. These factors predicted a deficit budget. We also said farewell to our longstanding Group Finance Manager, Kay Volk who took retirement this year. We reshaped and welcomed Nora Obeng -Tuudah as our new Chief Finance Officer. We have continued with some partial support from Mccabe Ford Williams in the produclion of the financial management accounts to ensure consistency. Tight financial controls continued to be in place with cash flow management remaining our focus and priority. We have serviced our payment plans from the previously negotiated Pandemic legacy bills. Following the Capital payment break on the SIB loan we restarted payments in April onwards. The Management team continued to proactively source and apply for available funding sources Ihat the organisation was eligible for with success in,. • Phase 1 of the Swimming Pool recovery Fund Ooint partnership with Thurrock Council) • Phase 2 of the Swimming p¢X)I recovery Fund lioint partnership with Thurrock Council) • Multiple health projects. Page18 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT Achievement and perforrnan¢e- contlnued Flnancial review- contlnued The Govemment conlinued to provide Rates support for Leisure through the Local Authority this year helping reduce costs. The efforts of the whole team have driven income streams to exceed the budget. Removing the funding support from the swimming pool support fund, revenue income has over performed by £271k, which demonstrates the growth of the business this year. As mentioned before the eX￿ndItUre lines have been a challenge to manage, but the team have remained focused on controlling consumption and costs wherever possible. This combined effort has produced a bottom- line performance better than the budget by £240k tuming the budgeted deficit into a surplus of £373k. The business continued to focus on the year ahead due to the constantly changing environment, however the Board have applied for funding support to deliver a series of facilitated Strategy sessions to shape the future of Ihe business. The relationship and working partnerships C￿ated with officers and members of the Council have been exlremely productive this year. Several examples of linked uplpartnership working have delivered reward and positive impaGt to the community. Our customers continue to support our 'give a gift 'and 'Easter egg, campaigns ensuring children are less fortunate that olhers receive a gift at Christmas and an easter egg at Easter. In addition, our working group with the Assets team has seen ex￿lIent communication and positive delivery of essentials. Leisure Centres- The Membership numbers at Blackshots has seen increased growth over the year with a number of successful membership markeling campaigns attracting more people to be regularly active. Swimming lessons remains a growth area which is pleasing as it demonstrates the Cofflmunities appreciate for the importance of this life saving skill for children and Adults. Office and Cottage Rent- Cottage rental was maintained as both properties were occupied throughout the year. Golf Shop and Bar- Golf and the bar has perfomied better this year reducing the deficit against budget by £8,418, This is despite a very wet winter and resourcing difficulties. Green fees and season tickets perfO￿ned well. The wet weather affected pitch bookings which underperfomied against budget. Civic Hall- The Civic Hall has had a slrong year in rebuilding its profile as an events destination and not solely reliant on hirers, We have provided a balanced programme of events that meet sporting and culture events to maximize the hall's value to the community. The bar product range is constantly reviewed to ensure it meets current drink trends and customer demands, which has been reflected in increased income. Replacement of more event chairs assists in the presentation of the venue, especially at theatre-style events. All other costs have been well managed to generate a surplus for the year. Princlpal rlsks and uncertalntles The trustees and senior management undertake an annual risk assessment process and report on this to the full board. The overarching issue to the future, remains the economic impact on the Country. Increases in utility pricing, cost of living increases for consumers including interest rate hikes as well as supplies and services price rises way above average noms. The potential for another Pandemic remains a constant con￿rn with the risk of possible restrictions and closures. In response to the huge rise in costs the Board prudently reviewed the reserves policy to ensure the previous calculations remain relevant for such a situation and agreed to increase the reserves policy proportionately they are confident the policy is fit for purpose. Page19 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT Financial review. continued Prlnclpal risks and uncertainties . contlnued The other main risks identified include building failures, the LGPS deficit including admission agreement issues {Lastman standing), health and safety, stsff and Trustee shortages and increasing staff costs (see section below), ongoing economy uncertainty (utility and cost of living) denting consumer confiden￿, local politics and increasing competition. Ongoing works with Thurrock Council and our own planned and preventative maintenance regimes are used to ensure that buildings andlor plant are less likely to fail in such a way as to cause unplanned seniice disruption. Business interruption insurance is also in place. The potential for major health and safety issues to arise is taken seriously and as such TCL have a comprehensive policy and manual covering health and safety, monitored at the highest level, with Trustee involvement at bi-monthly bespoke meetings and again reported at Board meetings. Staff are also involved in the risk assessment process and everyone in the organisation is aware of the health and safety mission of 'everyone safe every day,. Constant improvements lo service and increasing value for money is Ihe main strategy in use fordealing with competition. Marketing and promoting our unique selling points and differentiating our seryice from the competition has been an increased focus, Local politics always have the potential to change, so developing good relationships with senior staff at Thurrock Council and working with them to add value to the whole range of council services raises the profile of TCL and its importance to the community. There have been a number of initialives listed elsewhere regarding staff recruitment and retention. The trustees are satisfied that adequate processes are in place to mitigate the key risks fa￿d by the charity. Funds The group has returned a surplus of£372,593 (2023 deficit.'£ 258,081 }. The accumulated reserves for the group amounted to £2,242,620 {2023'. £4,673,027), including reslricted funds of £nil (2023.'£ nil) and unrestricted funds of £2,242,620 (2023'.£ 4,673,027), Reserves policy and golng concern The Reserves policy for TCL is formulated to ensure the continuation and improvement of its services, for the benefit of the community and as a safety net in the event of short-temi income shorffall. The services are run from various centres, which need to be regularfy maintained and updated to continue to provide ex￿lIent standards of service. Therefore, reserves required ale allocated into two types- Operational Reserves Are held to ensure TCL can meet expenditure commitments in the short temi, whilst actions are put into place to overcome income shortfall. Management risk strategies, insurance and contingency plans are in place to mitigate risks. As centres are all in different locations, it is unlikely that problems in one centre will have a direct impact on the remaining Centres, although in the light of the unprecedented UK response to Covid 19 this assumption has been tested to retain a short closure at all sites in advan￿ of Govemrnent support streams. The reserves policy should therefore include overhead expenditure for all sites, whilst ￿ntre$ are closed, along with staff osts previously supported by a furlough scheme, as this may not be available in future. Trustees reviewed the value of this approach and due to increased costs increased the Policy value proportionately. The resetve policy TCL should provide resilience to keep going till support is available andlor give time to put altemative action in place. Page110 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT Reserves policy and golng concern - contlnued Facllity improvement and unexpected opportunity reserve- The day-to-day operalional budget does not set aside any reserve for major improvement, or major capital commiknent. As such reserves are required to ensure funding is available to continually improve the service (property, equiprnent, and technology) in this very competitive industry, to enable compliance with ever-changing legislation and to take advantage of other unexpected opportunities that may arise during a year. Improvements to Blackshots changing rooms is a previous example of using these reserves to update and improve efficiencylseNice. To expand the services, we can offer to more beneficiaries, TCL may wish to acquire new business either through partnership, tender, acquisition or development of new premises and the purchase and refurbishment of community hub is a good example ofthis. This is made possible when reserves are in place to supportthe exploitation of such opportunities as they arise. Therefore, TCL will continue to build up to £1 m, reserves to 3 months running costs for all sites when closed, and then work towards an additional £300k for Facility improvemenuopportunity reseNes. The £300k reflects amounts required for recent large projects such as Belhus refurbishment and Blackshots changing room works. TCL have been able to maintsin adequate cash levels to meet day-t&day liabilities whilst maintaining operational reserves and settling outstanding legacy liabilities. TCL is therefore meeting going concem requirements. TCL has been working hard to drive income levels to cover the increased costs of operation, whilst remaining understanding and sympathetic to the impact of the cost-of-living crisis on our clients. Expenditure will continue to be closely monitored whilst income is rebuilt. TCL actively seeks new opportunities, funding, and income streams to help diversify income in order to facilitate financial robustness and tske up opportunities to further its objects, Considering, the current reserves position, together with the existing financial performance, forecasts for the future, cash flow forecasts, the main risks facing the organisation, the tiuslees are confident Ihat TCL will continue as a going COn￿rn. THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT Plans for the future As we continue to 'Create active and Heallhy Communities, we dovetail into the Local Authorities 'Active Place, and 'Playing Pitch, strategies. We continue to work closely with Public Health in delivering both services and programmes to prevent ill health and support those that have health debilitating conditions. Thurrcck Comrnunity Leisure will continue to collabofate with Officers and Councillors lo help in the delivery of such plans. The Local Authority are facing huge challenges to cope and adapt to their financial difficulties and as such their attention is focused on their ability to provide ststutory services. The working relalionship we have with the Local Authority is posilive wilh both organisations having a common goal regarding the health and activity of the communities we work with. It is pivotal for the benefit of the whole community that this stronger partnership continues to enable Thurrock Community Leisure to support the Council in delivering Leisure and health improvement in a cost-effective manner. The regular Officer meetings with a variety of departments within the Authority will, provide clear two-way communication into the successes and challenges faced by both organisations with a view of working collaboratively to meet the changing physical activity and health inequality demands of the Borough. Thurrock Community Leisure will invest time and resource into the review of its corporate plan to assess and react to the changing fa￿ and needs of a physical activity service and delivery in a modem environment. This review will seek to identify future opportunities and risks that will enhance or hinder business growth, Forecast Budgets take into consideration the suslained national pri￿ increases affecting UK Businesses in; gocrfjs and services Minimum wage increases of 9.7% lup 30¥0 in last three years). Leisure activity and attendance trends have returned to pre-pandemic levels which enables historical data to be used for patterns of behaviour, Customer feedback and surveys also provide a deeper undetEtanding of the business. We will continue to maximise income streaffls whilst controlling expenditure closely which is monitored on a daily basis. The Annual Plan focuses on the ten pillars of the business, ensuring we apportion sufficient attention to each area. We continue with reshaping our digital landscape to mitigate the resourcing challenges and improve the customer experience whilst providing increased consumer knowledge and data. This year sees the implementation of the new Gladstone Go products and the flaunch of the staff PlanDay app. Our strategic alignment with the Local Authority strategies which we aim to dovetail into our futures strategy, The opportunity for partnership working with the voluntary sector and local clubs and groups has never been more prevalenl aligning common goals with a series of pilots, support and links. Examples include the community garden project, CVS, club partnerships with Thurrcck Swimming Club and Thurrock Rugby Club, as well as social seNices supporting events like the easter egg and Christmas gift for underprivileged children, TCL'S positioning in the marketplace remains strong, despite the increased competition over the recent years. The Charity ststus resonates with ethical purchasers and the distribution of any surpluses in to community seNices and facilities is well received by our customers. The financial growth is still anticipated to come from both Membership and Swimming Lessons where we continue to see a high support and demand. Whilst we make inroads to improving our income position, we are still having to cover off Ihe unprecedenled increases in stsff costs due to NMW increases and salary squeeze affect, utility and supplies cost base increases. As such the budgets for 2024125 show a negative bottom-line with a clear indication of recovery before year end. We will continue to ensure a tight ship approach to all cosls and remain consetvative in income growth. Page112 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT Plans for the future. contlnued We have implemented our pricing strategy for 24125 which is crucial to maintsining the differential be￿een income and expenditure, whilst maintaining an awareness and empathy for ourcustomers, ability to meet these new prices. The launch of the students and young children's memberships have been extremely popular, and we will continue to encourage physical aclivity habits at this influential age. In response to the continued challenges in recruiting staff we will continue to use and attractApprenlI￿S and train unskilled potential employees improving and extending the associated career development learning programmes to as many staff and l¢xal people as possible. This together with the CIMSPA membership and ongoing training will enable more staff lo complete the requisite amount of CPD as well as relevant qualificalions appropriate to their roles and future progression. This ensures more staff are undertaking relevant Iraining to their career aspirations and Ihe business need, which in turn should improve staff retention and customer service. We also plan to grow and expand Ihe Volunteering opportunilies to all sites over the coming years. Community Health and Wellbeing The more opportunities created for people to be physically active increases the positive impact TCL has on Thurrock's 'health and SOGial issues,. Many of these issues have been proven to be improved by exercise. Indeed, Central Govemment and Public Health England (Physical Aclivity Framework - Everyone Active Everyday), supported by UK Aclive, have been consistsntly raising the profile of the benefits of physical activity, versus the associated costs of inactivity on the National Health servi￿ (NHS). There are polential opportunities within the NHS 10-year plan, some of which focusses on prevention of ill health, part of which includes physical activity in promoting physical and mental health. TCL will work with local health commissioners, social prescribers, and others to develop new programmes to improve community health. These programmes may also include social and cultural related a¢livities. TCL will consider providing these services without the benefit of extemal support funding. TCL have committed 2 days a week to support Ihe developments of the Sport England Place Partnership working with stakeholders, the Local Authority, Public Health and Active Essex. TCL operate a multitude of successful health programmes that improve health as well as quality of life with many moving case studies of life changing impacts. In line with Government and Sport England Strategy on increasing physical activity levels, we wtll expand our programmes to deliver increased physical activity opportunities to more of the community including children and hard to reach groups. We will continue and to grow our FREE online home-based classes including chair based and beginners to enable the housebound and hard to reach access lo our seNices. Al present TCL are commissioned from Thurrcck Council regarding health referrals and Health Checks for another year. Through work with Active Thurrock, we would hope to expand this work along with a number of other potential community health and wellbeing improvement schemes. As a minimum continue lo successfully deliver the existing schemes oullined above. TCL will look to work with Thurrock Council with links to the new Integrated Medical Centres (IMCJ in providing support physical activity sessions to improve and sustain physical and mental health for those attending these facilities. TCL will continue the work on the location master plans for the leisure stock in Thurrock. We hope these Leisure Strategies will be integrated into decision making in future, including establishing our place as the operator of choice within that strategy. Bringing solutions and funding options to the table is a line being pursued at present, We are actively promoting with partners our concession schemes to increase the reach ofthose in the target group on low income or asylum seeking. We would expect to see a subsequent increase in numbers by 10 % over existing numbers noted at the end of March 2025. THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT Plans for the future- continued Main facility related works will centre around the following improvements or investigations including.. Blackshots The Local Authority will be investing into the following areas as part of their landlord responsibilities. Repla￿ment of the main pool air handling unit. (Phase 2 SPSF) Replacement Main P¢xJl - Pool Cover (Phase 2 SPSF} Replacement of the hot water clarifier TCL will be: Replacement Tumstile Replacing Gym equipment and refurbishment of the Gym environment Internal decoration of the gym Reception desk refresh Belhus Park Work with Thurrock Council and others to deliver a Master plan for the site including 2 x 3G full size football pitch and Cricket facilities. The Local Authority will be investing into the following areas as part of their landlord responsibilities., Replacement of identified roots and external repairs. TCL will be. Replacing some gym equipment. Improvements to the foot golf provision. Clvlc Hall Repair the main entrance garden relaining wall. Corrlngham The Local Authority will be investing into the following areas as part of their landlord responsibilities. TCL will be., Replacing some gym equipment Installation of energy saving sockets Investigate Air handling improvements to circulation areas and reception. General Develop remaining viable LED lighting schemes into a project and seek extemal funding contributions to the costs, If extemal funding achieved, implement the schemes. Explore Ihe implementation of Govemment funding for sustainable products to reduce the consumption of Local Authority Leisure, Seek altemative supplier for the payroll system Expand the Airius Fans schemes to Blackshots and Belhus Park CRM systems upgrade to Gladstone Go Customer salisfaclion scores and QUEST will be maintsined at all applicable sites. In addition, as an intemationally recognised measure of customer satisfaction we will assess the Net Promoter Score {NPS) on all feedback surveys. Health and safety management will continue to be a priority, constantly reviewing and developing new policy and procedures making at least10 safety improvements during the year. Page114 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRATEGIC REPORT Plans for the future- continued The viability of local expansion, other smaller trusts and other business opportunities will continue to be assessed on a case-by-case basis. Thfough on-going networking and industry knowledge, TCL will continue to identify business opportunities, or other trusts or organisations that might benefit from collaborative working. In addition, TCL will continue to seek to expand operations in the Southeast keeping in contact with those businesses l authorities l organisations I schools that are changing the way they operate. This benefits TCL as overhead costs are reduced, as they are contributed to by additional group members. TCL will expand the Swimming teacher recwitment programme to continue its work on creating a sustainable teacher infrastructure. This new infrastructure will enable both expansion, support and development of our swim teachers creating an exciting career pathway, STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document TCL is conlrolled by its goveming document, a Memorandum and Articles of Association and is conslituted as a limited company, limited by guarantee as defined by the Companies Act 2006. TCL is a registered charity. Appointment oftrustees TCL is govemed by a board of up to 11 trustees. The board of trustees (volunteers) are drawn from all sections of the local community. Once appointed, trustees act in their personal capacity in the best interests of TCL and do not act as representatives of the body that nominated them. The board is made up of the following categories of trustees, which are fixed in the articles: Independent trustees x {up to) 8 Local Authority elected trustees x 2 Employee elected trustees x1 Thurrock Council nominates two trustees to the board annually, although for continuity Thurrock Council has in the past proposed that the same councillors continue to be trustees of TCL whenever possible. Should there be a need to attract new trustees to the board, adverts are placed at the sites and in appropriate social media, CVS, and various partner websites. The trustees co-opt new members to the board once agreed and Ihey are officially appointed at the next Annual General Meeting. Trustees are selected to provide a broad range of skills to support the business and management. Specific attention and targeting will be focused on underrepresented areas of the board. This under representation can be in the fom of skills, knowledge, gender, ethnic background, or disability, All trustees will hold office for a maximum of three years before retiring. Upon retirement, the other trustees may re- appoint Ihem or another person. At each Annual General Meeling (AGM), the greater of three and 33 % of the longest setving trustees shall retire but may be re-appointed unless the vacancy is filled. Each trustee guarantees to contribute an amount not exceeding £1 to the assets of TCL in the event of winding up. The total number of such guarantees at 31 March 2024 was 9 (2023 - 8, 2022-8, 2021- 7). The trustees have no beneficial interest in TCL. As a charity, TCL is a non-profit distributing organisation. Therefore, trustees do not receive any dividend, as 1 OOQ/o of surpluses must be invested to pursue the charitable objectives of the company. Page115 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Appolntment of trustees- continued TCL is a Community organisation working with Thurrock Council (TCI and other organisations, to provide leisure and cultural opportunities within the Thurrock area and its neighbourhood. TCL came into existence when Thurrock Council transferred leisure and cultural services to TCL on 10 January 2000. The trustees have overall responsibility for the organisation and its efficient operation. However, as volunteers the trustees appoint a Managing Director (MD, Karl Hayes), to whom they delegate responsibilty for undertaking the work that is required to ensure Ihat the organisation is operated efficiently, and in aC￿rdan￿ with its objects. The trustees have agreed a delegated aulhority framework, which sets out the responsibilities of the trustees and management. In addition, the trustees are aware that they have expert advice available to them from their auditors, legal advisors, bank and health and safety advisors. The trustees use the 'Charity Govemance Code, as a framework to govem TCL in line with best practice principles, Trustee induction and tralnlng The trustees have agreed a Govemance Manual, which provides infomiation about TCL, including its history, structure, govemance, legal standing, agreements with related parties, procedures at meetings, shared contact infomation, information about being a trustee (Charity Commission) and other sources of information. on￿ appointed new trustees are inducted by the Managing Director and Company Secretary using the govemance manual as a guide. The updated manual is available to Trustees on an ongoing basis in an electronic fomial, using a dedicated Share Point drive accessed by an Impulse leisure appointed email. Occasionally training is provided to the trustees as a group, in the past this has included govemance, risk analysis and financial responsibility training. In addition, individual trustees are encouraged to attend training provided by auditors and legal advisors on a range of subjects. The Management team also provide guidance, training and support on Leisure specific understanding. The trustees cary out 'spot Checks, using intemal control procedures and audits developed to cover the main financial and employment risks identified by the organisation. The trustees aim to carry out all of these Checks on an annual basis. Related parties and relationships wlth other organisations TCL has a wholly owned subsidiary company known as TCL Trading (TCLT). TCLT operates a golf shop, grounds maintenance function, bar, and catering operation at Belhus Park. Directors of TCLT are appointed by TCL. The directors have no beneficial interest in TCLT, or TCL. All surpluses generated by TCLT are gift aided back to TCL and this arrangement is govemed by a deed of covenant. Remuneratlon policy for key management personnel TCL has a Remuneration Policy which is a TCL & TCLT Group policy. This policy is posted on the website no more than o clicks away from the home page, TCL is committed to ensuring a proper balance between paying staff and others who work for it so that only the best people are recruited and retained. Whilst TCL remuneration is generally competitive within the leisure induslry, it does not compete on pay with other industries. Leisure remains a low pay industry. When delennining the salary for a post, TCL will collect information about comparable roles where possible, preferably within the Leisure sector. This information will be used to benchmark TCL salaries, nomially aiming to set them at a level that appears to represent the market I local area. TCL will also seek advice from peers within olher Ofganisations where they employ people in similar roles. To this end TCL benchmark with olher southeast Community Leisure operators {CLUK} and Community Leisure UK {CLUK) the sport and recreation trust association. CLUK represent charitable organisations who provide leisure and cultural servI￿s. Page116 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Remuneration pollcy for key management personnel . continued All posts meet the minimum requirements in respect of the National Minimum Wage, which is reviewed and amended where required in April each year. All employees (except apprenti￿$) working for TCL will be paid. £11.44 with effect from 1st April 2024 an increase of 9.7 %, this is regardless of age. This created a companywide salary squeeze which was addressed in April 24 pay awards agreed by Trustees, Salaries for the majority of posts will comprise a band made up of a series of salary points. Other posts have a flat rate salary. All salaries are openly stated in job adverts. Post-holders can progress up to the next salary point within their band around Ihe beginning of each new financial year, subject to having received a satisfactory annual appraisal (Development and Review Time (DART) and perfomance assessment) and having achieved their key performan￿ indicators for the year, Following the annual appraisal (DART), an employee's manager will make a recommendation to the Managing Director as to whether a progression up to the next band has been merited. 'Annual' Pay Award and Adjustments - During the budget setting process lin around NovemberlDecember) each year, for implementation in the following new financial year (April), the management team will consider whether the salary points for all staff should be adjusted for the forthcoming financial year beginning 1 st April, to reflect changes in the market conditions and reflecting cost of living impacts. The considerations will begin with an assumption that salaries should be adjusted to match inflation (specifically the Consumer Price Index) over the preceding 12-months. Further consideration will then detemiine whether this is appropriate in the context of.. TCL'S financial situation - can it afford the CPI linked increase and is it sustainable? TCL'S perfomiance - have KPIS been me Previous pay awards made in re￿nt years Pay reviews elsewhere - how might a failure to follow wider trends be pe￿e1Ved amongst staff, within peer organisations Overall affordability and sustainability- can TCL realistically afford il now and can it suslain it moving fO￿ardS7 TCL'S ability to attract and retain suitable staff in sufficient numbers to deliver a consistent seNice level. vi. Based on the above, the management team will make a recommendation to the trustees to approve any annual pay awardlbudget. If approved, annual pay awards will nomially be applied in April of the new financial year, The Managing Director has the responsibility to make any ad hoc decisions regarding salary changes for any positionlpost holder. Any decisionls regarding the salary of the Managing Director and senior managers are made by the TCL trustees. The Senior Management Team does not have delegated authority in matters relaling to their own remuneration, and any recommendations or deGiSiOnS must be ratified by the trustees prior to implementation. By nature of previous arrangements (TUPE transfers), some staff have previously opted to join the Local Govemment Pension Scheme (LGPS) in accordan￿ with the respective Admission Agreernent with Essex County Council. The TCL LGPS scheme is currently closed to new members as dictsted by the Admission Agreement. For those staff who are not members of the LGPS, TCL complies with its statutory aut￿enrolMent duties in accordan with Part1 of the Pensions Act 2008, where employees will be automatically enrolled into a defined contribution pension scheme from the date required by the Pensions Act 2008. Details are notified lo each individual separately, including what they would need to do should they wish to opt out of membership. In this regard, TCL uses NEST to fulfil auto-enrolment obligations. All staff, regardless of whether entitledlnot, entiuedleligible have the opportunity to join NEST on request, Furthermore, TCL land the employee) pay contributions on total eamings, irrespective of age or eamings level. Employees can only be a member of one pension scheme. THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Remuneration policy for key management personnel . continued Private Health Care- is a company and employee benefit for senior management and key personnel, to ensure that any ill-heallh is treated promptly, enabling the individual to continuelreturn to work with minimum absence. All private health care is declared on a P11 D and subject to tax in accordan￿ with HMRC guidelines. Use of Facilities by Employees - In order to promote health, fitness and wellbeing, employees may use the facilities free of charge, provided a paying member of the public is not prohibited from use because of an employee taking up space. TCL apply a long seNice recognition scheme within which staff are rewarded for continuous service at 5, 10, 20, 30 and 40 years. The scheme is designed to reward long service and is for gifts al various values depending on the milestone reached. The scheme follows the guidance issued by HMRC on the values of the awards. TCLITCLT trustees are not paid for their work as a trustee. Trustees can be reimbursed for reasonable out of pocket expenses. They may also be paid for undertaking special work for the charity, provided that this meets with the Charity Commission guidance 'Payments to Charity Truslees - What the Rules Are,. However, TCL will generally avoid engaging its trustees for work and will only do so where there is no suitable alternative supplier of that work. Dlverslty The board's approach to diversity supports its effectiveness and leadership, as such TCL wholeheartedly supports the principle of equal opportunities and diversity in employment and service provision and opposes all forms of unlawful or unfair discrimination on the grounds of colour, race, nationality, ethnic or national origin, religionlbelief, unrelated criminal convictions, gender, gender re-assignment, sexual orientation, marital ststuslcivil partnership, age, or disability, It is in TCL'S best interests, and those of all who represent or work within it, to ensure the human reSoU￿es, talents, and skills available Ihroughout the organisation and community are considered when employment and or training opp)rtunities arise or when the seNice-based decisions are made, ststistical reports are compiled once a whole recruitment and selection process is complete, these show the ethniclnational background, gender, age, religionlreligious belief, and disability (if any) of all applications,, those short-listed, and those offered employment. TCL monitor the declared diversity of its workforce. TCL aims to have trustees and staff from different backgrounds, abilities, cultures, and genders as the Inhe￿nt diversity of life experience is more likely to encourage debate, resulting in better decision making. The aim is that the workforce and Board rellect the community it serves, The Board and staff undertake equal opportunity and diversity training. Policy for employment of dlsabled persons TCL is 'posilive about disability, and operates a Guaranteed Interview Scheme (GIS), TCL recognises Ihat during employment a person's capability to carry out their duties may deteriorate, This can be for several ￿asonS, the most common ones being that either the job changes over a pertod, or because of heallh changes (including developing a disability). Should this be the case, TCL will make every effort to ensure staff receive adequate training and supervision to reduce any impact. Infomal meetings are used in the first instance with a view to resolving any issues. TCL will also consider the possibility of a transfer to more suitable work if this is possible. If issues persist TCL will nomally seek a medi¢al diagnosis and prognosis and with Ihe benefit of this professional medical advice, consult with the employee to enable a decision to be made about the future, either in the current role or, where circumstances pemiit, in a more suitable role. Where concerns about work arise due to the nature of a disability as defined under the Act, TCL will endeavour to make reasonable adjustments to woth andlor working pattem wherever possible. Page118 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Employee informatlon Employees are provided with informalion in a number of ways including, general electronic communication to personal email addresses, slaff notice boards, staff newsletters, staff forums {2 times per annum per site), team briefings, staff satisfaction survey (once per annum) and one to one meetings where appropriate. These cofflmunications are used to provide employees with relevant infonnalion on matters of concem to them, common awareness of Ihe financial and economic factors affecting TCL'S performance and seek the employees, views about the business and how it might be improved. TCL recognise Ihe trade union Unite and staff can seek their advice and support where applicable, TCL consult with Unite in line with the reccgnition agreement in place. Modern Slavery Act 2015 By virtue of its size TCL is not required to comply with all of the duties within the Act. However, TCL takes steps to prevent modem slavery and human trafficking in its business in accordance with the Act. TCL publishes its policy regarding modem slavery on its website. FUNDRAISING The TCL Group do nol use professional fundraisers to raise funds. All of the income FS derived from the main functions including, sales for facility usethire, secondary spending, and grants for specified programmes. Occasionally TCL receive donations through online fundraising platfomis, although at presents this a very minor source of income. STATEMENT OF TRUSTEES RESPONSIBILITIES The trustees (who are also the directors of Thurrock Community Leisure Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice). Company law requires Ihe trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charity SORP. make judgements and estimates that are reasonable and Pfudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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 Ihe prevention and detection of fraud and other irregularities Page 119 THURROCK COMMUNITY LEISURE LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STATEMENT OF TRUSTEES RESPONSIBILITIES - continued In so far as the Irustees are aware.. There is no relevant audit information of which the charitable company's auditors are unaware. and The trustees have taken all steps thal Ihey ought to have taken to make themselves aware of any relevant audit infomiation and lo establish that the audilors are aware of that information. Report of the trustees, incofporaling a slrate9ic rep)rt, approved by order of the board of trustees, as the company directors, onJUCIlz4, and signed on the board's behalf by.. Tunde Olelola (Chair) Page 120 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THURROCK COMMUNITY LEISURE LIMITED Opinlon We have audited the financial slatements of Thurrock Community Leisure Limited Group forthe year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidaled Cash Flow Statement and notes to the financial statemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the group and charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and Have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI {ISAs (UK)) and applicable law, Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the group and Charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion, Conclusions relating to golng concern In auditing the financial slatements, we have concluded that the trustees use of the going concem basis of accounting in the preparation of Ihe financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, May cast significant doubt on the companls ability to continue as a going con¢em for a period of at least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant sections of this report. Other Infomiation The Irustees are responsible for the other information. The other information comprises the infomiation included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other infomialion and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other infomiation and, in doing so, consider whether the other infomiation is materially inconsistent with the financial statements or our knowledge obtained in the audit or othenvise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Oplnlon on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the Course of the audit.. the infomiation given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements., and The Report of the Trustees has been prepared in accordan￿ with applicable legal requirements. Page121 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THURROCK COMMUNITY LEISURE LIMITED Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept or retums adequate for our audit have not been received frorn branches not visited by us., or the financial statements are not in agreement with the accounting records and returns. or certain disclosures of trustees, remuneration specified by law are not made., or We have not received all the infomiation and explanations we require for our audit. Responsibilitles of trustees As explained more fully in the Statement of Trustees Responsibilities, the trustees (who are also the directors of the group and charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees detemine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group and charitable company's ability to continue as a going concem, disclosing, as applicable, matters related to going concem and using the going concem basis of accounting unless the twstees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Our responslbllltles for the audit of the financlal statements Ourobjectives are to obtain reasonable assurance about whetherthe financial statements as a whole are free from material misstatement, whelher due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion, Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance wilh ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users tsken on the basis of these financial statements, Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud, The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in resped of irregularities, including fraud and non1 year (276,449) 1322,619) {276,449) {320,884) PROVISIONS FOR LIABILITIES 20 11,253) NET ASSETS EXCLUDING PENSION LIABILITY 2,242,620 2,015,027 2,242,620 2,012,957 PENSION ASSET I (LIABILITY) 23 2,658,000 2,658,000 TOTAL NET ASSETS 2 242 820 4,673,027 2,242 620 4,670,957 FUNDS Restricted funds 22 Unrestricted funds.. Designated funds General fvnds Non charitable trading fijnds Pension reseNe Total unreslrided funds 2,242,620 2.015,027 2,242,620 2,012,957 2,658.000 4,673,027 2 658 000 4,670,957 2,242,620 2,242,620 TOTAL FUNDS 2.242,620 4,673,027 2.242,620 4,670,957 The financiaL statements were approved by the Board of Trustees on .Qt.Icil4.¥ and were signed on its behalf by.. Tunde Ojetola (Chair) The notes form part of these financial statements Page | 25 continued... THURROCK COMMUNITY LEISURE LIMITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 31.03,24 31.03.23 Notes Cash flows from operating actlvltles Net cash intlow from operating activities Tax paid Net cashl(cost) from operatlng activities 648,192 {87,823) 648,192 {87,823) Cash flows from Investlng actlvities Dividends, interest and rent from investments Purchase of investment Current investment maturing Purchase of tangible fixed assets (Including HP} Cash used on Investing actlvltles 59,106 (1,085,795) 560,752 (103,615} (569,552) 12,116 (400,752) {388,636) Cash flows from financlng activities Repayment of borrowing including HP Repayment of loan Cash used in financlng activities {121,364) (98,296) (121,364> {98,296) Increase l (decrease) in cash and cash equivalents in the year (42,724) (574,755) Cash and cash equivalents at the beginning of the year 421,939 996,694 Total cash and cash equivalents at the end of the year 421,939 379,215 The notes form part of these financial statements Page 126 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 RECONCILIATION OF NET INCOME I (EXPENDITURE) TO NET CASH INFLOW FROM OPERATING ACTIVITIES 31.03.24 31.03.23 Net incoming resources before other recognised gains and losses Depreciation charges Actuarial pension scheme charges Dividends, interest and rent from inveslments (Increase) I decrease in stocks (Increase) I decrease in debtors Increase l (decrease) in Greditors Increase I (decrease} in provisions 372,593 (258,081) 213,158 81,000 (12,116) (272) (52,926) (58,586) 191,802 1145,000) 159,106) (4,262) (35,9801 326,892 1,253 Net cash Inflow from operating actlvltles 648,192 {87,823) ANALYSIS OF CASH AND CASH EQUIVALENTS 31.03.24 31.03.23 Short temi deposits Cash at bank and in hand 200,000 221,939 379,215 Total cash and cash equivalents 379,215 421,939 ANALYSIS OF CHANGES IN NET FUNDS At1.4.23 Cash Flow At 31.3.24 Net Cash Cash at bank 421,939 {42,724) 379,215 Debt Finan￿ Leases Debts falling due within one year Debts falling due after one year {27,330) (121,359) 180,455) (16,591) 1107,785) (137,950) (320,884) 137,955 (182,929) Total (47,634) {1,815) (49,449} Page127 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES Basis of preparlng the financlal statements The financial statements of Ihe group and charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: ststement 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) (effective1 January 2019),, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value. These financial statements consolidate the results of the charitsble company and its who11y￿Wned subsidiary TCL Trading Limited on a line by line basis. Transactions and balances bel￿een the charitable Company and its subsidiary have been eliminated from the consolidated financial statements. Balan￿S between the two companies are disclosed in the notes to the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitsble company has taken advantage of the exemptions afforded by sedion 408 of Companies Act 2006. The presentalional currency of the financial statements is the Pound Sterling {£). Amounts included in the financial slalements are rounded to Ihe nearest Pound Sterfing {£). The charity is an incorporated private company limited by guarantee without share capital and is registered with Companies House and Charity Commission. The charitable company's registered office and pla￿ of business are listed on Reference and Administrative Details page. Golng concem The UK Economy is still feeling the effects of the Pandemic and the war in Ukraine impacting on utility pricing and supply chains. These challenges have increased inflation and created a cost-of-living crisis affecling the population of the UK. The Leisure sector particularly those operating swimming pools have been significantly impacted by the huge rises in ulility and supply costs. As we progress into the future we aim to achieve our targets, by mitigats these impacts by continuing to use our energy brokers expertise in obtaining Ihe best utility contract available, demonstrated by our Shell contract which started in April 2024. We continue to negotiate and procure the best value rates for all other Servi￿S, As such, we as a Charitable Company with our subsidiary like many businesses face double impact on energy prices and the potential decline of consumer spending as energy-related household expenses rise. This impacted our membership growth trajectory but with inflation rate expected at 2.2 /0 we expected trading financial result to be in line with forecasted result. Thurrock Community Leisure Limited and its Subsidiary (TCL Trading Limited) impacts on the cost of living and utilities crisis are: Higher utility costs Consumers less disposal income impacting membership up-take and secondary spend income Supply chain issues delaying development work and maintenance, resulting in high costs Rising wage costs - adhering to Minimum wage increases - 9.7 % in the last 2 years and 28.4 % from 21122 tax year creating a squeeze effect on the whole company. To mitigate the squeeze impact and competition from competitors in the ernployment market such as Amazon, we increased all pay for all staff with a minimum of 5 % to reward and retain. Page 128 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES- continued Going concern . continued As a group we have taken and continue to work on our sustainability as follows.. Thurrock Communi Leisure Continue to work with energy brokers to secure best price contracls for ulilities, whilst entered reviewing and improving processes to help reduce consumplion. Monitor, review and implement utility reductions through improved housekeeping and energy interventions, We have secured Pool cover funding from Swim England for Blackshots and planned Pool covers investment by the company for our other sites. For further cost saving, we focus on stafflcustomer education in addition to reduced timetables, reduced temperatures. Work closely with agencies to promote benefits both in physical health and mental wellbeing to secure health funding. Seeking additional income streams such as extending our health check to all sites. Attract capital-funding pots to improve or create new activities, seNices. Funding continues to monitor the industry Govemment lobbying success by UK Active and Community Leisure UK. Look at IT resources to help with pro￿sseS to help staff concentrate on income gr0￿h. Promote staff through additional support and training, Seek alternative suppliers and work with purchasing groups via Community Leisure UK. TCL Tradin Limited Seek additional income streams, Monitor, review and implement utility reductions in consumption through improved housekeeping, energy interventions, reduced timetables, reduced temperatures and stafflcustomer education. Promote health benefits. Find suppliers who provide good service and best value. The board are confident that despile the business challenges the management Team are focused on not only managing the current situation but planning sustainability of the organisalion. The issues surrounding utilities are a global one as such the Government support via the Energy Bill Reliefscheme which continued to 31 Mar¢h 2024 as Energy Bills Discount Scheme to limit the financial risk to some extent. As consumer finances recovers and wilh Bank of England predicting inflation rate being 2.20/0 in 2024 and IMF predicting UK being the Ihird fastest cumulative growth in the G7 over the 2024-2028 period"; the future trajectory for TCL Group is a positive one. We continue to see an uplift in membership and the demand for swimming and swimming lessons. We see other areas of Ihe business demonstrating strong performance which is encouraging. It must be noted that this is a gradual increase trend, as we know physical activity is essential even during tough times. Our members sent us this message loud and clear during the Pandemic as they maintained levels of membership to support us. Our pre-pandemic reserves policy was £750,000, we have now reviewed this in-line with market cost wilh the aim to achieve or retain £1 M for operational resetves and £300,000 for capital expenditure reserve. As you can see, we held £1.3M in the bank and investment deposits as at 31 March 2024. Page129 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES- continued Golng concern . contlnued We are positioned as a lead provider of health inteNentions and the decline in community health due to long NHS waiting times creates funding opportunities which we expect to meet and deliver. In addition, we have trained further employees to deliver funded health Checks and expect this part of the business to grow at a pace. We continue to work with the Local authority on capital asset improvements around the mechanical and electrical plant and building fabric, which will continue to improve business and energy efficiency, reduce downlime and improve Ihe customer experience. We will also explore and implement a series of funding bids to create new and innovative activity and income slreams to meet demands in customer expectations The industry focus on funded training, retraining support will enable us to qualify more Swirn teachers this year, which will result in our ability to meet and sustain swimming lessons demands. Our Partnership with Swim Academy to take on New Swim Instructors shows our commitment to investment in continue seNices provision. Software enhan￿ments will significanuy improve the efficiency of business processes creating time for key personnel to focus on these opportunities without the need of further resource, Management and staff structure review will also create greater focus in the new areas of the business that need the attention for growth lo happen and again this is expected to be achieved with the Gurrent financial budget. For the reasons above the Board are assured that TCL and TCL Trading Limited are a going concern for the foreseeable future and are positive about the role that Leisure will play in supporting the improvement of public health. Income Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and the amount can be measured reliably. Income from govemment and other grants, whethercapital grants or revenue grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred, Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met. Interest recelvable Interest on funds held on dep)sit is included when receivable and the amount can be measured reliably by the charity., this is nomally upon notificalion of the interest paid or payable by the bank. Grants receivable Grants receivable in respect of a specified period relating to the general activities of Ihe charitable company are recognised in the Statement of Financial Activities in the period in which they become receivable. Where related expenditure has not been incurred the grant is deferred only when the donor has imposed restrictions on the expenditure of resources which amount to pre-conditions for use Government grants Govemment grants are recognised when it is reasonably certain that the conditions attached to the grant are met. Income from grants is recognised when Ihere is evidence of entitlernent to the gift, re￿Ipt is probable and its amount can be measured reliably. Page130 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES- continued Expenditure Liabilities are recognised as expenditure as soon as there is a legal orconstructive obligation committing the charity to that expenditure, 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 accounted for on an accwals basis and has been classified under headings that aggregate all cost related to the category. Where cosls cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Expenditure is classified under the following activity headings,. Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose. Expenditure on charitable activities includes the costs of delivering services undertaken to further the purposes of the charity and their associated support costs, Other expenditure represents those items not falling into any other heading, Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Allocation of support costs ReSoUr￿S expended are allocated to the partÉcular activity where the cost relates directly to the activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following bases which are an estimate, based on slaff time, of the amount attributable to each activity. Where information about the aims, objectives, and projects of the charity is provided lo potential beneficiaries, the costs associated with Ihis publicity are allocated to charitable expenditure, Support and govemance cosls are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity Cost of raising funds Leisure centres Civic Hall - Office and cottage rental 90% Govemance costs are the costs associated with the govemance arrangements of the charity. These costs are associated with Constitutional and statutory requirements and include any costs associated with the strategic management of the charivs activities, Tangible fixed assets Items of equipment are capitalised where the purchase price exceeds £30,000. Depreciation costs are allocated to activities on the basis of Ihe use of the related assets in those activikn'es. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Where fixed assets have been revalued, any excess be￿een the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balan￿ sheet, Depreciation is provided al rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows.. Leasehold improvements Assets on finance lease 10-40 years over the length of the lease Page131 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES- continued Investment In subsidiary Investment in the subsidiary is stated at cost. Stocks Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. In general, cosl is detemiined on a first in first out basis and includes transport and handling costs. Fund accounting Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is Charged to the fund. Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. Designated funds are unrestricted funds eamiarked by the tnjstees for particular purp)ses. Hire purchase and leasing commltments Assets purchased under finance leases are capitalised as fixed assets. Obligations under such agreements are included in creditors. The difference between the Capitalised cost and the total obligation under the lease represents the finance charge, Finance charges are written off to the SOFA over the period of the lease so as to produce a constant periodic rate of charge. Operating lease rental charges are charged on a straight line basis over the term of the lease, Penslon costs and other post.retlrement benefits The Charitable Company accounts for the pension scheme in accordance with the Financial Reporting Standard 102. The Charitable Company operates a defined benefit pension scheme and the pension charge is based on a full actuarial valuation dated 31 March 2019. The Charitsble Company provides pension benefits for eligible staff through an Essex County Council administered pension scheme. The Essex County Council administered scheme is a multi-employer scheme which provides benefits based upon final pensionable pay. For defined benefit schemes the amounts charged to resources expended on charitable activities are the current Servi￿ costs and any gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately if the benefits are vested. If the benefils have not vested, the costs are recognised over the period until vesting occurs. The interest cost and the expected retum on assets are shown as a net amount of otherfinance costs orcredits adjacent to interest. Actuarial gains and losses are recognised immediately in the Slatement of Financial Activities. The defined benefit scheme is funded, and the assels of the scheme are held separately from those of the charity in a trustee administered fund. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of retum on long dated high quality corp)rate bonds of equivalent currency and term to the scheme liabilities. The actuarial valuations are oblained at least triennially and are updated at each balance sheet date. Contributions made by the Charitable Company to defined contribution pension schemes are charged to the Statement of Financial Activities as they are incurred, Page 132 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES- continued Financial instruments The company enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties. a) Trade and other debtors Trade and other debtors are inilially recognised at fair value and thereafter slated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where Ihe effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impaimient losses for bad and doubthil debts. b) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand. c) Impairment of financial assets Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impaimient. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. For financial assets measured at amortised cost, the Impai￿nent loss is measured as the difference between an asset's carrying amount and the P￿sent value of estimated cash llows discounted at the asset's oiiginal effective interest rate. If a financial assel has a variable interest rate, the discount rate for measuring any impaiment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impaimient, the impaiment loss is measured as the difference between an asset's carrying amount and the best estimate, whi¢h is an approximalion, of the amount that the company would re￿1ve for the asset il it were to be sold at the reporting date. d) Trade and other creditors Debt instruments like loans and other accounts payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable within one year, typically trade payables, are measured, initially and subsequenlly, at the undiscounted amount of the cash or other consideration expected to be paid. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business temis or financed at a rate of interest Ihat is not a market rate or in case of an outright short-temi loan not at market rate, the financial asset is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument, Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Page 133 THURROCK COMMUNif( LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES- contlnued Taxatlon The charity is exempt from corporation tax on its charitable activities. The trading subsidiary is liable to pay corporation tax on its trading profits. Taxation is recognised in the Statement of Financial Position under expenditure on trading activities. Current tsx is recognised at the amount of tax payable using the tax rates and laws Ihat have been enacted or substantively enacted by the statement of financial position date, Deferred Tax Deferred tax is recognised in response of all timing differen￿$ that have originated but not reversed at the statement of financial position date. Deferred tax is recognised at the amount of tax that would be payable using the tax rates and laws that have been enacted or substantively enacted by the staternent of financial position date. The deferred tax expense is recognised in the Statement of Financial Position under expenditure on trading activities. Impairment of non-financial assets At each reporting date non-financial assets not carried at fair value, like plant and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount, If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impaimient loss is recognised immediately in profit and loss. Crltlcal accounting judgements and key sources of estimation uncertalnty In the application of the group's accounting policies management is required to make judgements, estimates and assurnptions about Ihe carrying value of assets and liabilities that are not readily apparent from othersources. The estimates and underfying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from the 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The present value of the Local Govemmenl Pension Scheme defined benefit liability depends on a number of factors that are detemined on an actuarial basis using a variety of assumptions. The assumptions used in detemining the net cost (income) for pensions include Ihe discount rate. Any changes in these assumptions, which are disclosed in note 21, will impad the carying amount of the pension liability, Furthemiore a roll forward approach which projects results from the latest full actuarial valuation perfomied at 31 March 2019 has been used by the actuary in valuing the pensions liability at 31 March 2024. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability. Page134 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 DONATION INCOME 31.03.24 Total 31.03.23 Total Unrestricted Restricted Donation Income INCOME FROM CHARITABLE ACTIVITIES 31.03.24 Total 31.03.23 Total Unrestricted Restricted Funding income Leisure centres income Sub-total for leisure centres 5,161,125 5,161,125 386,008 386,008 5,547,133 5,547,133 4,672,991 4,672,991 Civic Hall income Su￿total for Civic Hall 434,892 434,892 434,892 434,892 393,028 393,028 Office and cottage rent 27,436 27,436 25,740 Total income from charitable activities 5,623,453 386,008 6,009,461 5,091,759 INCOME FROM OTHER TRADING ACTIVITIES 31.03,24 Total 31.03,23 Total Unrestricted Restricted Golf club, shop and bar 213,356 213,356 213,356 213,356 152,358 152,358 INCOME FROM INVESTMENTS 31.03.24 Total 31,03.23 Total Unrestricted Restricted Interest receivable 59,106 59,106 59,106 59,106 12,116 12,116 Page135 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 TRADING ACTIVITY COSTS 31.03.24 Total 31.03.23 Total Unrestri¢ted Restricted Staff costs Other trading costs 194,735 192,314 387,049 194,735 192,314 387,049 183,820 167,836 351,656 ANALYSIS OF EXPENDITURE Charitable activities offi￿ and cottage Governance rent costs 31.03.24 31.03.23 Cost of raising funds Leisure cenlres Civic hall Support Costs Total Tolal Staff cosls Promotion and PL¢blicity Premises costs Purchases for resale Office adminislralion costs Audit and accountancy Legal and professional 1,827,038 127,092 115,468 89,866 1,437,466 55,386 135,064 60,032 152,172 15,782 568,517 2,522,647 2,506,185 205,334 137,464 1,677,487 1,439,883 195,096 219,343 864,934 801,519 47,952 21,944 8,831 36,320 5,522,281 5,162,658 184,635 696,980 47,952 8,831 47,952 1,458,983 3,667,208 348,158 Support costs 8,626 1,344,913 96,798 8,626 11,458,963) Govemance costs 480 43,156 3,836 147,9521 Total expenditure 2024 9,106 5,055,277 448,792 9,106 5,522,281 Total expenditijre 2023 8,671 4,782,578 362,738 8,671 5,162,658 Page 136 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 NET INCOMEI{EXPENDITURE) Net income l (expenditure) is stated after chargingl (crediting): 31.03.24 31.03.23 Depreciation Interest payable Operating lease rentals Auditrirs, remuneration Audit fee (parent) Other services (parent) Audit fee (subsidiary) Other Se￿iCeS 191,802 24,278 16,304 213,158 38,014 21,019 12,580 735 5,185 360 18,860 11,085 615 4,320 300 16,320 TRUSTEES, REMUNERATION AND BENEFITS Trustees onty receive remuneration in respect of the services they provide undertaking the roles of staff and not in respect of their services as Trustees. The value of Trustees, remuneration was £49,533 (2023., £35,591). Juan Rangel was an employee trustee, as allowed under the charity's articles of aS￿lation. He received total remuneration {Gross pay, employer pension contributions and employer national Insuran￿ ¢ontributions) of £11,183 for his role as a site manager, Of this, £822 relates to pension contributions paid by the charity. Juan Rangel resigned from his position on 8 August 2023, Mark Couldridge, an employee of the trust, was appointed as a staff trustee on 26 September 2023. He received total remuneration (Gross pay, employer pension contributions and employer national insurance contributions) of £38,350 for his role as a site manager. Of this, £2,541 relates to pension contribulions paid by the charity. Trustees, expenses There were no payments or reimbursements of Iravel and subsistence costs paid in Ihe year ended 2024 or 2023. Page137 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 10. STAFF COSTS 31.03,24 31.03.23 Wages and salaries Social security costs Employerfs contribution to defined contribution pension schemes Employefs contribution to defined benefit pension schemes Operating cost of defined benefit pension schemes 2,527,278 156,166 50,938 108,000 125,000 2,287,945 152,458 143,602 99,000 7,000 2,717,382 2,690,005 The average monthly number of employees during the year was as follows: 31.03.24 130 13 31.03.23 133 12 Leisure centres Civic hall Other trading activities SMT Support 162 164 The nurnber of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 31.03.24 31.03.23 £60,001- £70,000 £70,001- £80,000 £80,001- £90,000 £90,001- £100,000 £100,000- £110,000 £110,000- £120,000 The total employee benefits including pension contributions of the key management personnel was £363,977 (2023.. £325,014). Page138 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 11. TAXATION The Charitable Company paid no corporation tax during the year. Provisions for £nil (2023,. £nil) have been made at 31 March 2024 for corporation lax due in respect of the surplus from trading activities recorded in the yearended 31 March 2024, During the year ended 31 March 2024 all trading activities were conducted by the wholly owned subsidiary, TCL Trading Limited. TCL Trading Limited has provisions included of £1,253 (2023.. £nil) in respeGt of deferred taxation and a corporation tax creditor of £1,425 (2023.. £nil) in respect of corporation tax payable on profits relating to trading income. The analysis of the tax charge on the profit for the year was as follows; 31,3,24 31.3.23 Current tax.. UK corporation tax Deferred taxation movement Tax on trading profit 1,425 1,253 2,678 Page 139 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 12. TANGIBLE FIXED ASSETS The Group Improvements to leasehold property Plant and machinery Totals COST At 1 April 2023 Additions Disposals 4,780,003 988,280 103,615 5,768,283 103,615 At 31 March 2024 4,780,003 1,091,895 5,871,898 DEPRECIATION At1 April 2023 Charge for year Disposal 2,908,087 174,468 970,327 17,334 3,878,414 191,802 At 31 March 2024 3,082,555 987,661 4,070,216 NET BOOKVALUE At 31 March 2024 1,697,448 104,234 1,801,682 At 31 March 2023 1,871,916 17,953 1,889,869 Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows.. The Group Plant and machinery COST At1 April 2023 Additions Transfer to ownership 181,940 103,615 (163,322) At 31 March 2024 122,233 DEPRECIATION At1 April 2023 Charge for year Transfer to ownership 163,987 17,334 163,322 At 31 March 2024 17,999 NET BOOKVALUE At 31 March 2024 104,234 At 31 March 2023 17,953 Page 140 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 12, TANGIBLE FIXED ASSETS- contlnued The Charltable Company Improvements to leasehold property Plant and Machinery Totals COST At1 April 2023 Additions Disposals 4,633,886 860,189 103,615 5,494,075 103,615 At 31 March 2024 4,633,886 963,804 5,597,690 DEPRECIATION At1 April 2023 Charge for year Disposals 2,772,671 171,023 846,579 13,610 3,619,250 184,633 At 31 March 2024 2,943,694 860,189 3,803,883 NET BOOKVALUE At 31 March 2024 1,690,192 103,615 1,793,807 At 31 March 2023 1,861,215 13,610 1,874,825 Fixed assets, included in the above, which are held under hire pu￿haSe contracts or finance leases are as follows.. The Charltable Company Plant and machinery COST Al 1 April 2023 Additions Transfer to ownership 163,323 103,615 {163,322) At 31 March 2024 103,616 DEPRECIATION At1 April 2023 Charge for year Transfer to ownership 149,712 13,610 163,322 At 31 March 2024 NET BOOK VALUE At 31 March 2024 103,616 At 31 March 2023 13,610 Page141 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS- CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 13. FIXED ASSET INVESTMENTS The Charitable Company Shares in group undertakings Totals COST At1 April 2023 Disposals 10,000 10,000 At 31 March 2024 10,000 10,000 AMORTISATION At1 April 2023 Eliminated on disposal At 31 March 2024 NET BOOKVALUE At 31 March 2024 10,000 10,000 At 31 March 2023 10,000 10,000 Page 142 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 13. FIXED ASSET INVESTMENTS- contlnued The Company's investments at the balance sheet date in the share capitsl of companies include the following: Subsldlary TCL Trading Limited Nature of business.. Golf shop, bar, catering, maintenance services Class of share: Ordinary share capital holding 100 The charitable company owns the whole of the issued shares of TCL Trading Limited, a company registered in England which became operable from 1 October 2003. The subsidiary is used for non-primary purpose trading activities, All activities have been consolidated on a line by line bases in the statement of financial activities. Available profrts are gift aided to the charitable company. A summary of the results of the subsidiary is shown below,. 31.03.24 31.03.23 Tumover Cost of sales Gross profit 476,698 116,831 359,867 402,626 107,304 295,322 Administrative expenses Operating profit l (loss) other income Tax on profit Profit l (loss) on ordinary activities 310,688 49,179 262,607 32,715 2,678 46,501 32,715 Deed of covenant to parent undertaking Profit l (loss) for the financial year 48,568 2,067 32,715 The aggregate of the assets, liabilities and funds was,. Assets Liabilities Share Capital Funds 117,040 (107,040} 10,000 44,806 {32,739) 10,000 2,067 14. PARENT CHARITABLE COMPANY The parent charitable company's gross income and the results for the year are disclosed as follows: 31.03.24 31.03,23 Gross income Net result for the year 6,087,322 324,025 5,103,475 209,797 Page143 THURROCK COMMUNITY LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 15. STOCKS The group 31.03.24 31.03.23 The charitable company 31.03.24 31.03.23 Stocks 59,093 54,831 50,096 48,994 16. DEBTORS The group 31.03.24 31,03.23 The charitable company 31.03.24 31.03.23 Amounts falling due within one year.. Trade debtors Other debtors Amounts due from other group members Prepayments and accrued income Taxation 66,396 31,549 73,742 3,528 63,970 31,549 55,715 78,321 73,740 1,530 32,715 62,950 78,465 63,160 176,410 140,430 229,555 170,935 17. CURRENT ASSET INVESTMENTS The group 31.03.24 31.03.23 The charitable company 31.03.24 31,03,23 Analysis of current asset investmenls.. Cash or cash equivalents 1,085,795 1,085,795 560,752 560,752 1,085.795 1,085,795 560,752 560,752 18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR The group 31.03.24 31.03.23 The charitable company 31.03.24 31.03.23 Trade creditors Loans Accruals and deferred income VAT payable Lease liability Social Security and other taxes Other creditors Other taxes Amounts due to othergroup members 292,195 137,950 434,493 14,282 14,265 42,702 44,561 1,425 215,181 121,359 303,171 9,375 25,595 33,116 22,378 282,839 137,950 411,243 14,626 12,530 42,702 30,255 199,893 121,359 291,558 9,243 21,623 33,116 22,378 33,113 732,283 981,873 730,175 932,145 Page144 THURROCK COMMUNiff LEISURE LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS . CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR The group 31.03.24 31.03.23 The charitable company 31.03.24 31.03.23 Lease liabilities due 2- 5 yea Lease liabiliti'es due after 5 years Loan liabilities due 2 - 5 years 70,726 22,794 182,929 276,449 1,735 70,726 22,794 182,929 276,449 320,884 322,619 320,884 320,884 The charity have a charge with National Westhiinster Bank PLC which is secured on the chariws assets and commenced in June 2002. The charge is specifically for the Direct Debit membership collections, in the eventuality members request money back. The charity also have a second charge in respect of a loan with Social Investment Business FM Limited which is secured on the charity's assets and commenced in March 2021. The loan is repayable over 5 years in instalments. Interest is chargeable at 90/0 in year1, and 70/0 in subsequent years. 20. PROVISIONS FOR LIABILITIES Group Company 31.12.24 31,12.23 31.12.24 31,12.23 Deferred taxation 1,253 1,253 21. OPERATING LEASE COMMITMENTS The group's minimum lease payments under non