REGISTERED COMPANY NUMBER: 04270411 (England and Wales) REGISTERED CHARITY NUMBER: 1090528 REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 FOR HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEE} Hyndburn Leisure HYNDBURN LEISURE {A COMPANY LIMITED BY GUARANTEE) CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 Pages Report of theTrustees Itolo Report of the Independent Auditors Ilto13 Statement of Financial Activities 14to15 Balance Sheet 16to17 Cash Flow Statement 18to19 Note5 to the Financial Statements 20to33 HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2024 The trustees who are a150 directors of the company for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31" March 2024. The financial statements comply with the Charities Act 2011, the Companies Act 2006. the Memorandum and Articles of Association, and Accounting and Reporting by Charitie5.' Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applic3ble in the UK and Republic of Ireland IFRS 1021 (effective I" January 2015). REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 04270411 (England and Wales) Registered Charity number 1090528 Registered office Accrington Town Hall Blackburn Road Accrington Lancashire BB5 ILA Trustees Ciaran Wells Chair Irene Ryan Anne Ellwood Marie Demaine Peter Baron Ken Moss (Resigned on Il" May 20231 Noordad Aziz IAppointed IO" June 20241 Melissa Fisher (Appointed OD l August 2023, Resigned 10 June 20241 Loraine Cox (Appointed on I" August 20231 th Key Managernent Personnel Lyndsey Sims Joanne Mortimer Linda Horsfield Position Chief Executive Head of Operations & Strategic Projects Head of Health & Community Development Company Secretary Lyndsey Sims Auditors Ainsworths Limited Chartered Accountant5 and Statutory Auditors Charter House Stansfield Street Nelson Lantashire BB9 9XY Bankers Natwe5t PO Box No2 St james Street Accrington Lancashire B85 INB Pagel I HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 315T MARCH 2024 FOREWORD BY CHAIR Welcome to Hyndburn Leisure's Annual Report for the financial year 2023/24. This report provides an overview of our main areas of activity, highlights achievements, and outline5 our plans. In recent years, we've achieved so much- from developin8 new services to support people to lead healthier lifestyles, to delivering the Hyndburn Hub through the pandemic. During that time, we've also moved to subsidy-free leisure operations, embarked on a major leisure transformation project with the Council, and have become more environmentally sustainable and all of this within the context of an unprecedented global health pandemic. Over the last two years, external fattors have meant that the charity has required a subsidy from the Council to maintain the operation of all facilities and services. Over the next three years. we will look to move back towards zero subsidy. We are proud of what we've accomplished in recent years, but always reinforce that iY5 the stories behind these headlines that really count- stories with people and community at their centre. These are the stories that motivate me and the team at the Trust every day: stories of engagement. inclusion, of incremental changes adding up to lives transformed. As always, there's so much more to do. We feel Hyndburn is a vibrant, culturally diverse place to live and work, but not Èveryone sh2res that experience. Hyndburn is the 16th most deprived local authority in England, cultural engagement is low, and almost l in 3 adults here live an inactive lifestyle. Living healthier, more connected lives are more than a nice-to- have- it's a must-have - and OLtr Trust has a key role to play in delivering this change. None of this would be possible without the dedication. passion, and commitment of our employees, so thank you to all of you. Our employees continue to be our strongest asset - going above and beyond to deliver high-quality services and experiences for our customer5. We continue to operate in a challenging landscape and external factors make operating public facilities without a subsidy even more challenging, particularly at Hyndburn Leisure Centre. due to the energy requ ired to heat and operate swimming pools. As a charitable trust. every penny that we make goes back into our community. Our approach is the same as it's always been. We work with our local council and 803rd of Trustees as well as other trusted and valuable partners to deliver the programmes local people want and need, and we'll continue to do so. We'i e embedded in Hyndburn, and we listen. The Trust remains focused on impacting positively on the health and wellbeing of our communitys providing bespoke opportunities and prugrammes to meet the needs of the loc31 population. with a commitment to providing inclusive, supportive & welcoming environments for people from across tho Borough and surrounding areas. We're determined to work hard to maximise our income and reduce our expenditure. all while delivering positive health outcomes and providing paid employment to a si8nificant number of local residents. With the help of our incredible people and partners, we know we'll get there. Chair- Claran Wells Page | 2 HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Hyndburn Leisure is both a registered charity and a company limited by guarantee- governed by its Articles of Association. The trustees delegate the day-to-day management to the Chief Executive Officer. Lyndsey Sims. The Trust adheres to the Nolan rules for Standards in Public Life. Whilst undertaking a review of governance. the Trustees have also reviewed the recommendations in "Good Governance. A Code for the Voluntary and Community Sector" and do not believe the Trust has any standards at variance with that code which require disclosure. The Trusys ethical policy is,. "All delegations must be exercised in accordance with the law and having regard to any lawful direction and/or guidance subsequently issued by Parliament and/or any other appropriate funding body. Furthermore, all HR and people issues will be handled fairly, consistently and in accordance with relevant legisl3tion, ACAS Codes of Practice and Chartered Institute of Personnel & Development ICIPDI advice and best practice." Directors and Trustees The directors of the limited company are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees. Recruitment and appointment of new Trustees As set out in the Articles of A550ciation, the Chair of the Trustees is nominated by the meTnbers of the Board of Trustees. The Board ofTrustees comprises a minimum of five Trustees and a maximum offifteen. The Charity aims to maintain a broad range of skills on the Board of Trustees to contribute to the succe55 of the Charity. The composition of the Board of Trvstees may include two trustees appointed by Hyndburn Borough Council and persons from time to time employed by the charity may collectively appoint one person as a trustee. Trustees Induction and Training New Trustees undergo orientation sessions and receive literature and training to provide them with an understanding of their legal obligations under both charity and company law, the content of the Articles of Association, the committee and decision making process, the business plan and recent financial performance of the Charity. The Trust also seeks to identify appropriate training and update sessions for the Trustee's. Retirement of Trustees Appointed trustees shall stay in office until such time as they retire or are removed in accordance with the Articles. Board meetin85 The trustees meet every three months. There is also a sub-committee which covers resource management including finance and corporate performance that meets every three months prior to each board meeting. Indemnity Insurance During the year the charity maintained indemnity insurance for the Trustees and senior staff to indemnify them against the consequences of unintentional neglect or default on their part. Page | 3 HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE} REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2024 Related parties The Trust has a close relationship with Hyndburn Borough Council {Councill for whom it manages the borough's sport5 leisure and culture facilities and two community centres. Council facilitie5 include- Hyndburn Leisure Centre, Mercer H211 Leisure Centre, Accrin8ton Town Hall. Wilson's Playing Fields Athletics track. Bank Mill House and Oswaldtwistle West End. The facilities estate includes,. one swimming pool, two state-of-the-art gyms. a soft play centre, two thermal suites. three squash courts and an events and entertainment venue. There are two Council nominated trustee on the Board. In addition. the Chief Executive of the Trust has regular meetings with the Executive Director (Resources), who is the Trust's liaison, who also attends Board meetings. Risk management The major risks to which the charity 15 exposed. as identified by the trustees, have been reviewed and systems have been established to mitigate those risks. Pay and Remuneration Key management personnel of the charity comprise the trustees, the Chief Executive, the Head of Operations & Strate8lC Projects and the Head of Health & Community Development. The total employee benefits of the key manogement personnel of the charity were £159,90812023: £144.2801. in addition. employer pension contributions of £25,70512023.' £23,006) were paid in respect of their services The Charitrfs pay structure for employees consists of 46 grades each of which has a set annual salary. We currently use 21 of these grades for roles within the Charity. Grades are allocated to job5 through a process of job evaluation which establishes the relative value of different jobs. The grades and related salaries are set by the National Joint Council for Local Government Services. OBJECTIVES ANDACHIEVEMENTS Hyndburn Leisure IHLI is a company limited by guarantee with charitable status. It was formed in 2002 to manage the borough's sport and leisure facilities and in 2005 also took on the Council's Arts & Entertainment facilities and community buildings. HL'S objects as stated in its governing document are: 'the provision or assisting in the provision of facilities for recreation or other leisure time occupation for the general public in or in connection with the Borough of Hyndburn and its neighbourhood in the interests of social welfare by improving conditions of life" In planning and delivering it5 action plan Trustees have considered Charity Commission guidance relating to public benefit, including the setting of affordable fees and charges and ensuring that programmes and activities meet charitable objectives. Page 14 HYND8URN LEISURE (A COMPANY LIMITED BY GUARANTEEI REPORT OF THE TRUSTEES FOR THE YEAR ENDED 315T MARCH 2024 OBJECTIVES ANDACHIEVEMENTS Key areas of activity The Trust seeks to provide accessible and affordable sports, leisure, arts and cultural activities to every member of the Hyndburn community. irrespective of age. background or ability. We further our charitable objettives by operating in the following key areas= The Leisure Activity Passport scheme offers significantly reduced admission charges to a wide range of individuals who are on limited incomes. including those who are unemployed, receiving Council Tax or Housing Benefit, th05e receiving Income Support or Job seekers Allowance. students and those receiving Working Tax Credit. The Leisure Activity Passport also provides reduced admission for key priority groups including Hyndburn residents over 60 years of age and the registered disabled (including FREE access to carers). Our Swimming Programme offers reduced rate swimming for 4 to 16 year olds during school holiday periods. Senior citizens and children receive conce55ionary rates on the purchase of tickets for our sport and leisure activities and entertainment programme. In addition. free use is offered to children participating in themed activities and events. Use of our public halls and community facilities 15 made available to charitable and non-profit making groups at concessionary rates. We also offer free use for certain categories of users. Our Health & Wellbeing services support our communities to improve their health outcome5. The tea m work in the heart of our communities, workplaces and schools. using their expert knowledge and experience in supporting positive lifestyle changes. Free access to leisure provision for armed forces personnel. Free access to leisure facilities and financial support for talented athletes. We want to help our cornmunity to feel healthier and more connected. This take5 many forms. from learning a life Skill like swimmin& to dancing it out at a high energy Zumba class with friends. Alongside Accrington Town Hall and three Community Centre5 hosting a wide range of cultural activities, we're helping people to learn. celebrate, and connect. Page 15 HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEEI REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2024 ACHIEVEMENTS AND PERFORMANCE Here at Hyndburn Leisure, we can and will continue to play a vital role in helping our community. We're particularly committed to helping those from marginalised and disadvantaged backgrounds improve their physical and mental health outcome5. We are proud to be part of a UK-wide network of CharitableTrusts. Members of the network all have two things in common. To do good and make things better. We help make your community better because as a charitable organisation we are set up to do good. Every penny that we make goes back into local facilities or to create new programmes that our communities want and need like health walks or programmes to keep us all fitter as we get older. The Leisure Trust'5 work continues to centre around improving health outcomes and reducing inequalities for our community. We support participants across a range of services including= Cardiac Rehabilitation Phase 4 Tier 2 Weight Management Active Lifestyles Hub (Exercise referral) We are most proud of the positive impart that these programmes have on people's lives. Helping them to improve their health. often managing long-term conditions more effectively and generally improving their overall well-bein8. We also lead and contribute to a range of projects on behalf of the Borough includin8: Household Support Fund National Lottery Healthier Communities Programme (Hyndburn Wavl Business Health Matter5 Together an Active Future (known locally as Let's Move Hyndburnl Holiday Activities Food programme (known locally as Fun with Food & Friends) Play and Skills at Teatime Activities Page16 HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2024 The Future In April 2024 we launched our new company Strategy titled= 'Improvin8 health- Building community-Transfofmin8 lives,. Our business strategy maps out the chariVs Path for the next three years. We have a new company Mission We inspire people to live healthier. happier lives through leisure, sport, and culture - and help make our community a better place for everyone. Our mission statement is a living, breathing thing,. an approach that underpins every 3spect of our work. We want to ensure that our team member5 are able to talk about our mission with confidence, and we aspire for it to be reflected clearly in the experiences and testimonials of our custorners. It should be at the root of all processe5 and decisions in order to keep us focused and to keep us accountable. As such. we've worded it in a way that's direct, impactful, and easy to remember. We love Hyndburn, and we're proud to live and work here. But we're not blind to the challenges and inequalities that exist here. In Hyndburn, 69*0 of adults are overweight or obese. Here, the percentage of local people engaging with culture falls IO% below the national average, 25% of children live in 'absolute low income. households compared with 15Yo nationally, and 23% of Year 6 children are obese. As with everything we do at Hyndburn Leisure, creating a vision for our future has been a collaborative process - one that has involved engaging with our people and our community. It's no accident that two major pillars of our strategy are 'our people and 'our partnerships,. And pillar is a deliberate metaphor they hold everything up. If we create options and opportunitie5 Wlthin leisure and culture that are based on people's wants and needs, we know we can bring people with us. We know that getting people involved in physical activity, sport. and culture means people are more active, which in turn leads to better health. People who engage in leisure and cultural activities also feel more connected to their community. which brings a myriad of individual and social benefits too. When we say it transforms live5, we really mean it. But to do it- and to do it for everyone - we can't do it alone. For a mission of this size, we need everyone on board. Page | 7 HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2024 GOING CONCERN The trustees have considered their obligation5 to prepare these financial statements on an appropriate basis, havin8 specific regard to the charity's net liability position within unrestricted funds as at 31 March 2024. The trustees have reviewed budgets and cash flow forecasts. Efficiency savings are being delivered and new external grant income Streams have been attracted by the management team. The trustees have considered the forecasts, grant funding secured and proposed savings, and consider them to be reasonable. The trustees recognise the support provided by Hyndburn BC. and are aware of the letter of support received from the council. After making enquiries and considering the issues described above, the trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. For these reasons they continue to adopt the going concern basis of accounting in preparing these financial statements. FINANCIAL REVIEW The financial statements have been prepared on a going concern basis. which presumes that the trust will receive no financial 5UPPOrt from the Council by means of a management fee. Total income for the year 2023124 was £5,475,85712022123.' £4,583,647) an increase of £892,210119.47°Al. The increase in income is the result of improved performance at the leisure sites and addition31 support from the Council. Total expenditure for the year 2023124 was £6,109.48912022123.' £5,712,461), an increase of £397,02816.95%1. This was a result of the increase in the national living wage and energy prices. The trust had an overall funds deficit as at 31 March 2024 of £375,08512023.- £380.4531. This was after the posltive change in the pension scheme which experienced a £707.000 increase and wa5 a balance sheet asset of £1,954,000 12023.. EI,247.0001 at the year end. To supplement the provision of high quality leisure facilities the charity is committed to developing a high quality service. The trust is working with partner organisations to introduce cost effective, fit for purpose. peer quality assurance protesses. Reserves pollcy It is the aim of the Trustees to build up unrestricted reserves to cover a reasonable level of future management, administration and support cost5. At present the Trust has insufficient reserves to ensure that it can deal with major unexpected adverse developments without direct 5UPPQrt from Hyndburn Borough Council. Both Trustees and Executives maintain a regular dialogue with the council to ensure that, should major unexpected adverse developments arise, any difficulties that require attention are addressed in a mutually agreeable manner. Trustees are confident that the charity has established diversity of operations. sufficient versatility and control of expenditures of such nature that it is able to adapt to changing circumstance5 that will arise from time-to-time under normal business conditions. Trustees have agreed the reserves as follows- Hold a minimum cash balance in the bank account of at least £50,000. Long term aim to increase the minimum cash balance in the bank accotjnt to £2(N).000. The Trustees have considered the current adverse economic climate when reviewing their reserves policy. Page18 HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2024 FINANCIAL REVIEW {CONTINUED} Investment Powers and Policy Under the Memorandum and Articles of Association, the Trust has the power to invest in any way the Trustees wish. The Trust having regard to the liquidity requirements of operating leisure facilities. and to the reserves policy, operate a policy of keeping surplus funds available in interest bearing bank accounts. Principal risks and uncertainties The Trust is extremely reliant on income from fees & charges, therefore the charity is open to a number of risks which can negatively impact upon the sustainability of the organisation including= Uncontrollable budget pre55ures placed upon the Trust will reduce the Trust'5 capability to plan and manage the business effectively The Trust is subject to elasticity in its demand income and a level of uncontrollable costs Delay in progressing the Leisure Transformation will defer income opportunities Changes in assumption5 in relation to the defined pension scheme liabilities Volatility within the investments held within the defined benefit pension scheme Uncontrollable increases in the wholesale price of gas and electric The UK cost of living crisis currently being experienced. Page19 HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEE} REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST MARCH 2024 TRUSTEES. RESPONSIBILITIES IN RELATION TO THE FINANCIALSTATEMENTS The trustees (who are also directors of Hyndburn Leisure for the purposes of company lawl are responsible for preparing the trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accountin8 Standards (United Kingdom Generally Accepted Accounting Pratticel. Company law requires the trustee5 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 these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently. obseNe the methods and principles in the Charities SORP. make judgement5 and estimates that are reasonable and prudent. State whether applicable UK Accounting Standards have been followed. subject to any material departures disc105ed and explained in the financial statements. and prepare the financial staternents on a going concern basis unless it is inappropriate to assume that the charitable company will continue in operation. The trustees are responsible for keeping proper accounting records that disclose with reasonable accurary at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companie5 Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statement of Disclosure to Auditors In so far as the trustees are aware, there is no relevant information of which the charitable company's auditor is unaware, and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Auditors The auditors, Ainsworths Limited. will be proposed for re-appointment at the forthcoming Annual General Meeting. This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companie5. Approval This report was approved by the trustees on 30 January 2025 and signed on its behalf by Ciaran Wells Tru5tee/Chair of the Board Page 110 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HYNDBURN LEISURE {A COMPANY LIMITED BY GUARANTEE) Opinion We have audited the financial statements of Hyndburn Leisure {the 'charity'l for the year ended 31" March 2024 which comprise the Statement of Financial Artivities, Balance Sheet. Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accountin8 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 charitws affairs as at 31" March 2023 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. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII 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 charity 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 responsibilitie5 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. Conclusion relating to going concern In auditin8 the financial statements, we have concluded that the directors. use of the going concern basis accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. We draw attention to the Accounting Policies. which highlight the chariws reliance on the support from Hyndburn Borough Council. The board members have concluded that the charity remains a going concern. however these events mean a material uncertainty exists that may cast doubt on the chariws ability to continue as a going concern. Our opinion is not modified in respect of this matter. Other information The trustees are responsible for the other information. The other information comprises the information in the Report of the Trustees, but does not include the financial statements and our Report of the Auditor5 thereon. Our opinion on the financial statements doe5 not cover the other information 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 information 2nd, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If. based on the work we have performed, we conclude that there is a material misstatement of this other information. we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information 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 accordance with applicable legal requirements. Page 111 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI Matter5 on which we are required to report by exception In the light of the knowledge and understanding of the 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 Art 2006 requires us to report to you if. in our opinion.. adequate accountin8 records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are rÈot in agreement with the accounting records and returns,. or certain disclosures of trustees, remuneration specified bylaw are not made- or we have not received all the information and explanations we require for our audit- or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemption from the requirement to prepare a Strate8ic Report or in preparing the Report of the Trustees. Responsibilities of trustees As explained more fully in the Statement of Trustees, Responsibilities set out on page ten, the trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustee5 determine necessary to enable the preparation of financial statement5 that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations. or have no realistic alternative but to do so. Our responsibilities for the audit of the flnantlal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 taken on the basis of these finaDrial statements. Identif in and assessin otential risks related to irre ularities In identifying and assessing risks of material misstatement in respect of irregularities, we considered the following.. the nature of the industry and sector. control environment and business performance: results of our enquiries of management about their own identification and assessment of the risks of irregularities,. any matters we identified having made enquiries of management about their policies and procedure5 relating to: identifying. evaluating and complying Wlth laws and regulations and whether they were aware of any instances of noncompliance,. detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud,. the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations. the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. A5 a result of these procedures. we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAS UK we are also re uired to erforrn s ecifit roeedures to res ond to the risk of management override. Page | 12 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI We a150 obtained an understanding ol the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the detefmination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Att and local tax legislation. In addition, we considered provisions of other law5 and regulations that do not have a direct effect on the financial statements, but compliance with which may be fundamental to the company's ability to operate. Audit res onse to risks identified As a result of performing the above our procedures to respond to the risks identified included the following= reviewing the financial statements disclosure and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements,. enquiring of management about actual and potential litigation and claims,. performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud,. in addressin8 the risk of fraud through management override of controls, testing the appropriateness of journal entrie5 and other adjLtstments- assessing whether the judgements made in making accounting estimates are indicative of a potential bi35,' and evaluating the business rationale of any si8nificant transaction5 that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilities. This description forms part of our Report of the Auditors. Use of our report This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken $0 that we might state to the charitable company's trustees those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fiiilest extent permitted bv law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit Wof k, for this report, or for the opinions we have formed. Mark Sunter1Senior Statutory Auditor) for and on behalf of Ainsworths Limited Chartered Accountants and Statutory Auditors Charter House Stansfield Street Ne150n Lancashire BB9 9XY th Date: 30 January 2025 Page | 13 HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI STATEMENT OF FINANCIALACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31ST MARCH 2024 31.3.24 Total funds 31.3.23 Total Funds Unrestrirted funds Restrirted funds Notes INCOME Income from donation5 Donations 274,492 274,492 270.325 Income from charitable activities Operation of sports facilities Operation of town hall and similar buildings 2A54,824 218,595 2,044.739 4,899,563 218,595 4,045,852 252,005 Income from other artivities Commercial operations 77,989 2,115 80,104 14,414 Investments 3,103 3,103 1,051 Total income 3.429,003 2,046,854 5,475,857 4,583.647 EXPENDITURE Charitable activities Operation of sports facilities Operation of town hall and similar buildings 3,848,778 389,041 1,939,670 5,788,448 389,041 4,650,942 616,519 Pension operating charge Net interest on pension scheme liability {I,0001 (67,0001 (I,000} {67,000} 356.000 89,000 18 Total expenditure 4.169,819 1,939,670 6,109,489 5,712.461 NET INCOMEI{EXPENDITURE) {740.816) 107.184 {633.6321 11,128,814) Transfers between funds 148) (740,8641 107,232 (633,632) 11,128,8141 Other recognised gains and1055es Pension scheme actuarial gain/lloss} 18 639.000 639,000 4,998,000 NET MOVEMENT IN FUNDS {101,864) 107.232 5,368 3,869.186 Page | 14 HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES {INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31ST MARCH 2024 31.3.24 Total funds 31.3.23 Totol Funds Unrestricted funds Restrirted funds Notes NET MOVEMENT IN FUNDS (101.8641 107.232 5,368 3.869,186 RECONCILIATION OF FUNDS Total funds brought forward (604375) 223,922 (380,453) 14,249,639) TOTAL FUNDS CARRIED FORWARD 1706,239) 331,154 (375,085) 1380,4531 The statement of financial artivities include5 all gains and losses recognised in the year. All income and expenditure derive from continuing activities. Page115 HYNDBURN LEISURE {A COMPANY LIMITED BY GUARANTEEI BALANCE SHEET AT 31ST MARCH 2024 31.3.24 31.3.23 Notes FIXED ASSETS Tangible assets 472,618 561.229 CURRENT ASSETS Stock Debtors Cash at bank and in hand io li 10,189 241,152 581.711 10,189 389,343 344,008 833,052 743,540 CURRENT LIABILITIES Amounts fallin8 due within one year 12 {2.475,040} 11.705,450 NET CURRENT LIABILITIES {1,641,988) 1961,9101 TOTAL ASSETS LESS CURRENT LIABILITIES 11,169,370) 1400,6811 LONG TERM LIABILITIES Amounts falling due after more than one year 11.159,715) 11,226.7721 NET LIABILITIES EXCLUDING PENSION DEFICIT 12,329,085) 11.627,4531 PENSION SCHEME SURPLUSIIDEFICIT) 18 1,954,000 1,247,1)00 NET LIABILITIES INCLUDING PENSION DEFICIT (375,085) 1380,4531 FUNDS Unrestricted funds Restricted funds Pension Sknneii ie surplus/{deficitl 16 17 18 {2,660,239) 331,154 1,954.000 {1,851,3751 223,922 1,247,000 TOTAL FUNDS 1375,085) 1380,4531 Page116 HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) BALANCE SHEET FOR THE YEAR ENDED 315T MARCH 2024 The trustees have prepared the accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These financial Statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies and with the Financial Reporting Standard 102 (effective I" January 20151. th The financial statements were approved by the Board of Trustees on 30 January 2025 and were signed on its behalf by.. Ciaran Wells Trustee/Chair of the Board Page | 17 HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEE) CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2024 31.3.24 31.3.23 Notes Cash flows from charitable activities Cash generated from activities 332,632 294,315 Net cash from charitable activities 332,632 294.315 Cash flows from investlng activities Interest income Interest paid Sale proceeds Purchase of tangible fixed assets 3,103 {34,334) 1.051 136,0801 225 1157.6401 Net cash from investing activities {31,231) 1192,4441 Cash flows trom financing activities New borrowings in the year Capital repayments in the year {63,698) 1105,4061 Net cash from financing activities {63,698) 1105,4061 Increa5el{decreasel in cash and cash equivalents 237,703 13,5351 Cash and cash equlvalents atthe beginning of the year 344,008 347.543 Cash and cash equivalents at the end of the year 581,711 344,008 Page118 HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEE) CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2024 RECONCILIATION OF DEFICITTO CASH GENERATED FROM ACTIVITIES 31.3.24 31.3.23 Deficit for the year (before gains and losses on the pension scheme) Interest receivable Interest payable Depreciation charges Pension scheme operating and interest costs Profit and loss on the disP05al of assets (633,6321 {3,1031 34,334 88,611 168,000) 11.128,8141 11,0511 36,080 88.313 445,000 12251 1581,790) 1560.6971 Decreasellincreasel in stocks Decreasellincreasel in trade and other debtors IDecrease)/increase in trade and other creditors 148,191 766,231 45,007 810,005 Cash generated from charitable activities 332,632 294,315 CASH AND CASH EQUIVALENTS The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: Year ended 31" March 2024 31.3.24 1.4.23 Cash and cash equivalents 581,711 344,008 Year ended 31 March 2023 31.3.23 1.4.22 Cash and cash equivalents 344,008 347,543 Page119 HYNDBURN LEISURE IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 ACCOUNTING POLICIES Company information Hyndburn Leisure is a charitable company, limited by guarantee, registered in England and Wales. The charit¢s registered number and registered office address can be found on the Company Information page. Each member's personal liability is limited to an amount not exceeding £1. Basis of preparing the financial statements The financial statements have been prepared on a going concern basis which assumes that the company will be able to meet it5 liabilities as they fall due. The related party, Hyndburn Borough Council, have confirmed their commitment to financial support of the charity, including continued support of the charity in its cash flow requirements within agreed terms and levels. The trustees have considered this support, along with the cashflow forecasts and budgets. Accordingly. the trustees have concluded that it is appropriate for these financial statements to be prepared on the going concern basis. Accounting convention The financial statements have been prepared under the historical cost convention, and in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective I" January 20151- (Charities SORP {FRS10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Companies Act 2006 and the Charities Act 2011. Hyndburn Leisure meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note. Incoming resources All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Income is the amount derived from ordinary activities, ar¢d stated after trade discounts, other sales taxes and net of VAT. Grants receivable are accounted for when due. Incom.e is deferred when it is received in advance of the period to which it relates. Investment income is recognised on a receivable ba51S. Resources expended Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all c05t related to the category. Where costs cannot be directly attributed to Particular headings they have been allocated to activities on a basis consistent with the use of resources. Charitable eJ(penditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It include5 both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs include those costs associated with meeting the constitutional and Statutory requirements of the charity and include audit fees and costs linked to the strategic management and administration of the charity. All support Costs are allocated between the activi ex enditure cate ories on a basis desi ned to reflect the use of the resource. Support costs are apportioned on an appropriate basis e.8. time spent, floor areas, or estimated usage. Page | 20 HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 ACCOUNTING POLICIES (CONTINUED) Tangible fixed assets and depreciation Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. Freehold propertv Improvements to property 2% Straight line IO% Straight line Fully depreciated 10-25% Straight lirbe 15% Straight line Fixtures and equipment Plant and machinery Fixed assets are stated at cost less accumulated depreciation. Assets are also subject to an annual review to identify any iF)dicators of impairment. Taxation The charity is exempt from corporation tax on its charitable activities. Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds Can only be used for particular restricted purpose5 Within the object5 of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. Pension costs and other post-retirernent benefits The charity Participates in the Lancashire County Pension Fund defined benefit scheme. Although the scheme is a multi-employer scheme it IS Possible to allocate a share of the assets and liabilities to the charity and hence contributions are accounted for as a defined benefit scheme in accordance with FRS 102. The charity also participates in the NHS Pension Fund defined benefit scheme. The scheme is not designed to be run in a way that would enable the charity to identify its share of the underlying scheme assets and liabilities. The pension contributions made during the financial period are therefore treated as if the scheme is a defined Contribution scheme and recognised in the Statement of Financial Activities. Stock Stock is valued at the lower of cost and net realisable value. after makin8 due allowances for slow and obsolete items. Leasing Rentals payable under operating leases are charged against income on a straight line basis over the lease term. Debtors and Creditors Short term debtors and creditor5 are measured at transaction prite. less any impairment. Slgnificant judgements and estimates Preparation of the financial statements requires management to make significant judgements and estimates. The major item in the financial statements where these judgements and estimates must be made is in relation to the pension scheme. Management consult with experts to provi e appropriate assump ions on w calculate projecLed funding position for the scheme. Page121 HYNDBURN LEISURE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2024 DONATIONS 31.3.24 31.3.23 Gifts in kind use of buildings Corporate donations 270,325 4.167 270,325 274,492 270,325 In 2023, of the total donation income, £270,325 was unrestricted funds. CHARITABLE AcfiviTIES 31.3.24 31.3.23 Unrestricted income: Grant5 from Hyndburn Borough Council Operational income from Hyndburn Borough Council Income from the operation of lei