KIRKLEES ACTIVE LEISURE FINANCIAL STATEMENTS 31 MARCH 2024 Company registration number: Registered charity number: 4331165 1091226 KIRKLEES ACTIVE LEISURE FINANCIAL STATEMENTS 31 MARCH 2024 CONTENTS Pa8e Trustees, report (including directors, report and strategic report) Statement of trustees, responslbilitles 20 Independent auditorfs report 21 Consolidated statement of financial activlties (including income and expenditure account) 25 Charity statement of financial activities (including income and expenditure account) 26 Consolidated balance sheet 27 Charity balance sheet 28 Consolidated statement of cash flows 29 Charity statement of cash flows 30 Notes to the financial statements 31 Additional information 50 Detailed charitable expenditure 51 Company reglstration number: Re8iStered charfty number: 4331165 1091226 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2024 TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) The Trustees, who are directors of the Charity, present their annual report on the affairs of the Charity and the Group. together with the financial statements and auditols report for the year ending 31 March 2024. The Trustees have adopted the provisions of the statement of recommended practice (SORPI "Accounting and Reporting by Charities" (FRS 1021 in preparing the annual report and financial statements of the Charity. CHARITY NUMBER 1091226 COMPANY NUMBER 4331165 PRINCIPAL OFFICE Huddersfield Leisure Centre Spring Grove Street Huddersfield, HDI 4BP AUDITORS Simpson Wood Chartered Accountants Bank Chambers, Market Street Huddersfield, HDI 2EW BANKERS Barclays Bank plc 17 Market Place Huddersfield, HDI 2AB STRucfuRE, GOVERNANCE ANO MANAGEMENT Governlng Document Kirklees Active Leisure I"KAL"} was formed as a Company Limited by Guarantee, not havlng share capltal and having charitable status, on 29 November 2001. The Charity operates community recreation facilities on behalf of the Local Authority {Kirklees Metropolitan Council) and has one wholly owned trading subsidiary, Kirklees Active Leisure Trading Limited {"KALf'i. The Charity is required to comply wlth both the Companies Act 2006, the Statement of Recommended Practice "Accounting and Reporting by Charities" IFRS 102) and has to meet general Charity Commisslon regulations. The Memorandum and Article5 of Association are the Charitls constitution. CHAIRPERSON D. Stephenson CHIEF EXECUTIVE A.1. Brown TRUSTEES J.A. Briggs - resigned 2LW September 2023 M.T. Hudson Cllr. M.S. Sokhal 8.C. Stahelin B. Uppal J.S. Fletcher S. Alderson P. Kemp Cllr. M.5. Thompson S. Khela - oppointed 2L¥ September 2023 Pagel I KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2024 TRUSTEES. REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) Appointment of Trustees Trustees are appointed in accordance with the Charity's Articles of Association. Kirklees Metropolitan Council is entitled to appoint two individuals as Trustees. The Board is entitled to appoint one individual from each of the following sectors: Health Strategic finance/accountancy Education Sports and Leisure The Board Is also entitled to appoint up to slx further indivlduals. Trustees retire by rotation In accordance with the Charity's Articles of Assoclatlon. The Trustees give their time voluntarily and the only benefit they receive from the Charlty is access to the KAL staff membership scheme, in line with all other volunteers working with KAL, allowing low cost ac￿55 to the leisure facilities managed by the Trust, which is felt to be appropriate given the form of or8anisation and the need for Trustees to be aware of the services provided. In line with KAL'S conflict of interest's pollcy, Memorandum and Artlcles of Association and following discussion at the July 2022 KAL Board meeting, it was agreed that one of the Trustees should be allowed to receive financial reimbursement for facilitation services provided to KAL'S senior staff group. This arrangement has continued into 2023/24 and is noted at each KAL Board meeting. Any reasonable expenses reclaimed by Trustees from the Charity are set out in the financial statements. Trustee Inductlon and trainlng New Trustees undergo a detailed induction proce55, which was introduced in September 2017. The Trustee Induction process now includes.. l. Briefings to Trustees regarding - Their legal obligations under charity and company law The Memorandum and Articles of Association The Board and decision-making processes The Corporate Strategy and recent financial performance of the Charlty The key staff of the Charity and their role in the organisation The sites managed by the Charity and the services provided by the Charitv 2. Site tours of the facilities operated by the Charity 3. Copies of key KAL policies 4. Signposting to the Charity Commission website and key items contained there 5. Attending KAL'S Corporate Induction session; and 6. Undertaking a discussion regarding Trustees, training needs, before agreein8 how these can best be addressed. Trustees also receive an extensive information pack containing copies of the Memorandum and Articles of Association, recent decisions of the Board of Trustees. recent Accounts and Annual Reports. Trustees continue to be encouraged to tour the facilities managed by KAL, with opportunities offered to all Trustees to visit the facilities. Page | 2 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2024 TRUSTEE5' REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) Trustees receive specific training on an ongoing basis to enable them to take part in activities such as policy development, strategic planning and health & safety. Several Trustees have completed the IOSH (Chartered Institute of Occupational Safety & Health) Managing Safely for Senior Executives course over recent years. At the annual Trustees half away day, in November 2023, the Trustees took part in workshops led by a specialist Charities lawyer concerning decision making and Board effectiveness. Board performance review The Trustees had previously undertaken a review of the Charity's governance in June 2017, with areas for improvement identified and now implemented. A further governance review was undertaken, commencing in April 2023, with an improvement plan considered and agreed by the Board at their May 2023 meeting, This included a revised Code of Conduct for the KAL Trustees which was considered and agreed by the Board at their July 2023 meeting, as well as the work5hop5 noted above undertaken at the KAL Trustees half away day, A Trustees ski115 audit was also undertaken with the results fed back to the Board at the half away day. The Chair of Trustees also meets wlth each of the Trustees annually on a 1-2-1 basis, where discussion includes both a review of the last 12 months, the Trustees, commitment and contribution and ways in which the Charity can look to improve further. The template used to 8uide the 1-2-1 discussions was updated as part of the 2023 governance review to ensure how to improve Board performance was discussed. Organisatlon The Board of Trustees, which has up to 12 members, administers the Charity. The Board meets five times a year and there are 4 main sub.groups (Audit; Health & Safety,. Strategic Development,, and Remuneration) together with the wholly owned trading subsidiary Kirklees Active Leisure Tradin8 Limited. Task & finish groups are also formed by the Trustees as necessary, for example a governance review task & finish group was formed in April 2023. A Chief Executive is appointed by the Trustees to manage the day-to-day operatlons of the Charlty. To facilitate effective operations, the Chief Executive has dele8ated authority, within terms of delegation approved by the Trustees, for operational matters including: Finance Information Technology Human Resources Training Marketing Business Development Operational Management Diversity As part of the original 2017 governance review referred to above, actions were agreed/ implemented to further improve the Charity's approach to diversity at Board level. These include: A commitment made by the Board to continue to ensure that, wherever possible, the Board is representative of the views of the Kirklees community Page | 3 KIRKLEES AcfivE LEISURE14331165} 31 MARCH 2024 TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORTI Future Board recruitment will specifically encourage applicants from under-represented groups, with additional support to applicants provided as necessary Diversity training is provided to the Board A statement summarising the Board's work to foster all aspects of diversity is published on the Charity's website. Following the 2023 governance review undertaken it was further agreed to report upon the following aspects.. That KAL achieved the Inclusive Employers - Bronze standard in October 2022, with a subsequent action plan continuing to be progressed. That summary demographic information relating to KAL'S workforce and customer base are considered at each KAL Board meeting. That a commitment is included from the KAL Board on the main KAL website to work towards becoming demographically representative. As of March 2024. the KAL 8oard Included 10 Trustees, three of which were female and three of which were Sikhs. KAL remains committed towards continuing to positively progress our approach towards bein8 an inclusive employer, encouraging a workforce and Board of Trustees that reflect the demographic of the local community. Employment of disabled persons Disabled persons are employed and trained whenever their aptitudes and abilities allow and Suitable vacancies are available, with reasonable adjustments made as necessary to support disabled people appointed by the Charity. Where an employee becomes disabled, a considerable attempt is made to continue their employment, if at all possible, to make all reasonable adjustments and to arrange appropriate re-training or transfer to an alternative role if necessary. Employee involvement KAL introduced a new and improved 121 system for staff in Autumn 2022, which was then reviewed with a revised version introduced from September 2023. This is considered a key staff communication tool, to try to consider and support the overall health & wellbeing of staff, their career development and so forth, Regular team meetin8S take place, both at each KAL site and across the Head Off ice teams. The annual staff survey was again undertaken in Spring 2023, providing useful feedback to be considered and used to lrnprove engagement with staff where possible. The staff survey included feedback that 84% of staff would recommend KAL as a good place to work, with an overall staff satisfaction rating of 7.32, higher than any rating since 2016. Further staff roadshows were undertaken in June 2023, which were attended by a range of staff from across the organisation. providing the opportunity for staff to receive updates regarding the Charity and to take part in workshop se55ion5. Regular "KAL Comms" general communication article5 continued to be provided to staff on a regular basis, with focused HR support continuing to be given to the more vulnerable staff members. Any staff recruited to KAL also received the KAL corporate induction to try to help them effectively onboard. However. as noted elsewhere within the annual report, 2023124 was an extremely challenging year for KAL given the continuing major expenditure pressures facing the Charity due to increasing staff costs, linked to increases in the National Living Wage INLWI; significantly higher energy costs; and overall high inflation leading to increased supplier costs. The position was also then significantly further impacted by Pagel 4 KIRKLEES AcfivE LEISURE (43311651 31 MARCH 2024 TRUSTEES, REPORT IINCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORTI the major reduction in available Council funding support from 2023124 into 2024125, where Kirklees Council financial support for KAL was to reduce from £6.Im to £2.55m. Collectively these financial pressures required the Charity to take some very difficult decisions to rationalise the organisation and the services that KAL was able to provide. Sadly, this led to the loss of some 100 staff roles over the course of 2023/24, through a significant redundancy process, which proved to be very unsettling for the whole organisation. The redundancy process required the statutory collective consultation with KAL employees and the recognised unions and ongoing detailed engagement with individual staff as redeployment roles were considered where possible, before voluntary and then, unfortunately, compulsory redundancy options were developed. Related Partles The Charity works closely with Kirklees Council which provides funding and the lease of assets to the Charity for the provision of leisure services. Whilst it has a 19.9% share of representation on the Charitls Board, the Councll does not have any control over the Charity, its a55ets or the manner in which It operates on a day-to-day basis. The Charity's wholly owned subsidlary, Klrklees Actlve Leisure Trading Limited I"KALf'}, was established to carry out non-charitable tradin8 activities for the Charity. The company gift aids any surplu5 prof its made to the Charity. In the year ending March 2024, KALT made a pre-tax profit of £37,78612023: £10,960 pre-tax profit) and made a gift aid payment back to the parent Charity of £34,00012023'. £17,400} resulting in a £2,844 profit after the gift aid and tax on profit (2023: £5,143 Ioss). Objects and Actlvltles The Objects of the Charity are.. 'To provide or 0sSlSt in the provision of facilities ond services for recreation or other leisure time occupation, primorily in Kirklees but olso in the wider area, in the interests of positive sociol welfore for the public benefit, and to promote ond protect the good physical and mental health ond wellbeing of those persons using such focilities and services," The Objects of the Charity contribute to a range of charitable purposes, as outlined withln the Charities Act 20)6, as follows. Durlng 2023124, as noted above, the Charity faced an especially challen8in8 period due to the 51gnificant expenditure pressures impacting upon the Charity, combined with the major reduction in available Council funding support available for the followin8 financial year {2024125) and beyond. This required a major re-modelling of KAL'S financial model, including, unfortunately, the closure of several leisure facilities and the loss of c.100 staff members. Charitable pu rpose The advancement education Example of activity The Charity delivers the local school swimming service to 146 local schools. The new, more intensive programme introduced in 2021122, with longer swim lesson sessions over fewer weeks, has proved to be successful, with outcomes improving slightly once again based upon early 2023124 data. The school swimming service was impacted upon during 2023/24 with the closure of Dewsbury Sports Centre in September 2023 due to RAAC Pa8e | 5 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) Charitable purpose Fxample of activity (Reinforced Autoclaved Aerated concretel, following the earlier closure of Batley Baths & Recreation Centre (since December 20221 and the temporary closure of Colne Valley Leisure Centre swimming pool {December 2022 April 20231. All schools using the seNice were successfully relocated to alternative venues, however travel times to/from school increased for some. The service has begun to move from a 4 towards a 5 sessions per swimming pool model to both increase capacity as well as reduce transport costs. KAL'S own learn to swim swimrnlng lesson programme was also negatively impacted by the above site closures, as well as the dosure of the Stadium Health & Fitness Club site in December 2023. KAL swimming lesson numbers have therefore reduced from c.7iJ)J young people taking part in regular swimming lessons in March 2023 to now 6023 as of March 2024. KAL aim to grow the number of swimming lesson customers back to a new capacity of some 65(Kl over the months ahead. KAL continued to provide a tennis coachin8 programme, offerin8 tennis developrnent opportunities for young people. All artivities were again available to all 8roups of the local community, with pricing discounts provided via KAL'S Flexi-card scheme and the local Kirklees Passport scheme. KAL staff undertook training in a wide range of aspects, including health & safety, safeguarding, KAL'S corporate induction, revised site inductions, equality, diversity & inclusion, conflict management, etc., as well as further ongoing training for frontline staff and higher-level trainin8 provided for managers via the National Pool Managers and National Pool Supervisors Qualifications. Higher level apprenticeshlp programmes were also completed by some staff. KAL continued to progress our strategic direction as a preventative health & wellbelng provider, to encourage the inactive to be active and appeal to a wider customer base. A number of core product5 continued to be delivered. including exercise referral schemes and a recommendation scheme, "First Steps To Fitness" which targeted those who had been Inactive for at least the previous 12 months and provided them with a more supportive induction process to make use of the KAL sites and to hopefully embed the healthy habit of being more physically active. Targeted demographic approaches were also introduced for prelpost natal women "Moving Mums" and older people, where the range of KAL products suitable for these population groups were packaged together and promoted through a range of local agencies. Outcome data from the above products is being collected, with initial feedback positive regarding the impact upon the health & well being of the individuals involved. KAL continues to develop our partnership with the University of The advancement of health Page | 6 KIRKLEES AcfivE LEISURE {4331165) 31 MARCH 2024 TRUSTEES, REPORT (INCLUDING OIREcfoRS' REPORT AND STRATEGIC REPORT) Charitable purpose Example of activity Huddersfield, to both ensure the impact of KAL'S products are effectively measured, but also across a range of other developments linked to the University's Health and Wellbeing Academy developments. Placements, health checks, the development of a joint PhD role, etc are all continuing to be progressed. KAL is also engaging at a West Yorkshire level with West Yorkshire leisure operators, health contacts, Universities and the Yorkshire Sport Foundation to try to develop a more coordinated approach to preventive health & wellbeing approaches within leisure centre settings. Due to the financial pressures facing KAL and the local authority, and the subsequent need for KAL to rationalise the service it could provide, the Council undertook a major leisure centre consultation exercise in Autumn 2023. The consultation received the largest number of responses ever made to the local authoritv for such an exercise, with over 17k responses. Many responses received were positive about the servlce being provided and the role of KAL in delivering health & wellbeing opportunities for local people. Support received from the consultation together with KAL'S financial re-modelling allowed for a more limited rationalisation of facilities provided to be required, allowing important local health & wellbeing service5 and, importantly employment opportunities, to be retained. Free fitness membership for Care Leavers and targeted other individuals continues to be rovided. The Charity continues to work closely with several Significant local sports clubs that make use of the facilities managed by the Charity. This includes athletics clubs; a range of swimming clubs; a tennis club; a golf club,. and a major local community football club (Howden Clough AFC). KAL is a key partner on the local strategic partnership for sport and wider physical activity. "Everybody Active" and the Kirklees Active Schools sub-group. KAL also hosts local multi-sports VCS organisations, assisting them where possible. However, given KAL'S continulng difflcult financial position and reduced facility and staff capacity. much of this work is at risk, with KAL having to make some difficult decisions in terms of available space and the costs which are charged to 3 party organisations, which have had to be increased significantly. Reductions continue to be provided for 3, parties that hold appropriate quality marks to try to encourage these to be retained. Reducing C02 ernissions and being as efficient as possible with energy consumption continues to be a key component of KAL'S approach, with considerable investment continuing to be made to ensure energy use and emissions remain low for the type of organisation and facilities operated. Energy pressures in particular for KAL'S swimming pool facilities The advancement of citizenship and communitv development The advancement amateur sport The advancement environmental protection or improvement Pa8el 7 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2024 TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) Charitable purpose Ixample of activitv continues to be a major challenge for the Charity which has added considerable strain to the Charit¢s financial position and has now led to the closure of three swimming pool sites since December 2022- Batley Baths & Recreation Centre (December 20221; Dewsbury Sports Centre (September 20231; Stadium Health & Fitness Club (December 20231. Discounted pricing, accessible facilities and the breadth of activity opportunity on offer ensure that KAL is accessible to various customer groups across the Kirklees communitv. Examples include the free fitness membership offer highlighted above for Care Leavers, etc, while the Charity also support worthy local groups, such as wlth disadvantaged young parents and their families from the local Home-start group and supporting them to make use of their local leisure facilities. KAL'S support of the Uniform Exchange scheme, where collection points in KAL sites allow customers to pass to Uniform Exchange school uniforms to re-cycle, and of the local Forget Me Not Children'5 Hospice and Kirkwood Hospice are further examples of where KAL support those in need. Successful older people's activity groups are in place at several of the KAL managed sites (Batley Sports & Tennis Centre, Colne Valley Leisure Centre and Huddersfield Leisure Centrel. A disability sports club meets weekly at Huddersfield Leisure Centre, while KAL'S support of the Kirklees Passport scheme allows heavily reduced cost access to the leisure centres, with the ability for a plus I to support where required. However, the major financial challenges that have Impacted upon KAL durin8 2023124 and the subsequent facility closures of major leisure facilities in areas of particular disadvantage li.e. Batlev Baths & Recreation Centre and Dewsbury Sports Centrel, a5 well as the further financial need to reduce the opening hours at a further site in an area of disadvantage {i.e. Dei8hton Sports Arena reduced to 21 hours opening / weekl have reduced the ability of the Charity to provide local seNices for those living in areas of disadvantage. Despite this, c.21Ph of KAL customers continue to be from the lowest 20% IMD Ilndex of Multiple Disadvantage} area. The relief of those in need, by reason of youth, age, ill health, disability, financial hardship or other disadvantage Our strategy for meetlnE our Charltable Purposes KAL'S Vision "Improving Health & Wellbeing- was agreed as part of KAL'S corporate strategy, which was approved by the KAL Board in January 2020, with implementation delayed, due to Covid-19, originally until January 2021, but subsequently, given the extended lockdown, from January 2021 to mid-April 2021. The Vision signifies the change of direction that the Charity was looking to make over the coming years, with much more of a focus on preventative health & wellbein& encouraging new customer group5 to make use of the sites and products the Charity provides. KAL identifies two headline challenges within it5, corporate strategy - Page18 KIRKLEES AcfivE LEISURE {43311651 31 MARCH 2024 TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) By 2025 KAL will achieve a Customer Satisfaction Index score of 81 or more By 2025 KAL will have remained financially sustainable Given Covid-19 and its, impact upon KAL'S finances and now. the considerable impact of high energv prices, ongoing major increases in staffing costs and the high rate of inflation, the second headline challenge regarding KAL remaining financial sustainable has not been possible without the significant financial support from Kirklees Council. However, the Council have now informed KAL that the level of financial support available for the Charity will significantly reduce into 2024125 due. largely, to the Council's own challenging financial position. This led KAL to undertake a major rationalisation exerclse durin8 2023124, with the closure of several facilities. considerable reductions in KAL staff numbers and the KAL Head Office moving from the Stadium Health & Fitness Centre to Huddersfield Leisure Centre, a significant saving in itself due to the commercial rental bein8 char8ed at the Stadium site. KAL Is now confldent that the new operatin8 model developed will be a more viable one given the reduced level of local authority financial support, with expenditure costs significantly reduced and income levels proportionately retained with an ability to be grown further over the months ahead. The Strategy has 3 Airns: l. Puttin8 People First {Service) KAL recruits and retains great staff, offerin8 a first-class rewards package and striving to provide employees with the learning and skills they need. KAL offers excellent customer service to our customers, helping them reach their activity goals and make the most of their leisure time, within a high quality, safe environment. 2. Helping More People become More Actlve (Produrts) KAL is a major contributor to improving the health and wellbeing of local communities through the promotion of healthy lifestyle choices, by providin8 a range of fantastic opportunities and developing specific interventions for harder to reach groups, to encourage more people to get and stay active. KAL will review and develop quality products, services and systems that collectively provide an unbeatable activity offer. 3. Delivering Buslness Excellence (Operations) As a key anchor institution, KAL supports the Kirklees economy as a major employer of local people, especially under 25's, while also working with local suppliers where possible. KAL will continue to operate as efficiently as possible, offering great value for money, ensurin8 robust financial plannin& resource, sustainability and energy management. investing in the local leisure facilities we look after. Ensuring our work delivers our Strategic Aims The 2021-2025 KAL Corporate Strategy and the 3 Aims above try to ensure that the Charity remains focused on delivering against its stated purpose and Objects where possible. Pa8el 9 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 TRUSTEES. REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) We refer to the Charity Commission's general guidarbce on public benefit when reviewing our Strategic Aims and in further developing the Corporate Strategy and the activities that we plan to deliver in the future. The Trustees are satisfied that the planned activities and services of the Charity will continue to positively contribute towards the Objects and purpose of the Trust. How our activities deliver public benefit The Trustees have paid due regard to the Charity Commission's guidance relating to public benefit in deciding what activities the Charity should undertake. Our main activities and the customer groups we provide services for are outlined below. All of our charitable activities are focused on the development of opportunities for taking part in healthv recreation and sport within facilities available for the general public. Who used and beneflted from our servlce57 The facilities operated by the Charity continued to receive more than 2.5m million customer visits from acro55 the entire community spectrum of Kirklees during 2023124, with a reduction of only some 17k customer visits from 2022123, a major achievement given the Closu￿ of several leisure centres and the challenging disruption of the Council's leisure centre consultation exercise during Autumn 2023. Emphasls continues to be given to "target groups" within the local community, to actively encourage them to take part in the range of health & wellbeing activities available acr05S the KAL managed sites and to receive the associated mental and physical health benefits of such involvement. Groups particularly targeted to use the Charity's facilities include the followin8: Older people {60+) Young people lup to age 161 Women and girls Those with a disability The financially disadvantaged There are no restrictlons on who can make use of the facilities provided by the Charitv. Fees are charged for most activities that take place within the Charlty's facilities, however, while fees have had to be reconsidered and increased where necessary due to the financial position of KAL, a range of specific programmes and concessionary rate5 continue to be made available and actively promoted to try to encourage participation and ensure that the services provided are affordable to everyone. A key means of doing this is the acceptance of the Council's "Kirklees Passport" at all sites operated by the Charity. which entitles the holder to a significant price discount. Some targeted provision, e.g. fitness memberships for local Care Leavers, are provided completely free of charge. The Charl￿5 primary activities are the provision of sport5 and leisure facilities and opportunities for the communities in Kirklees and surrounding neighbourhoods to take part in sport and wider physical activity and, therefore improve their health & wellbeing. The main activities provided by the Charity are: Swimming opportunities, including the provision of an extensive lesson programme, considerable school swimming use and use of the sites by the Borough of Kirklees {"BoK"I performance swimming squads and the KAL Swim Performance scheme. The swimming pools Page 110 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 TRUSTEES, REPORT IINCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) sites are also used by several local aquatics clubs, including swimmin& triathlon and canoe clubs. Fitness Suites, which are accessible to all and offered at a range of pricing levels, making them affordable forthe majority of the local community Exercise Classes, including specialist classes, such as yoga and Pilates A wide range of sports hall activities, including badminton. 5-a-side football, netball, etc. Indoor/ outdoor tennis Outdoor activities, including football, etc. Athletics Track and Field events Golf Family attraction activities, including use of the "Splash Park. leisure water facility at Huddersfield Leisure Centre,. the Footgolf course at Bradley Park Golf Course- the Stompers soft play and TAG X activity produtts at 8atley Sports & Tennis Centre; and the "Immerse" pool inflatable and activity pool offering at Spen Valley Leisure Centre. While the Charity has very limited outreach capacity, it works closely with other local partners, such as Kirklees Council, Third Sector Leaders (Kirkleesl (the umbrella organisation for the local VCSE sector) and Kirklees Youth Alliance, the umbrella organisation for the local VCSE youth providers, to encourage new customer groups to make use of the sites looked after by the Charity. In addition, through the separate subsidiary company, Kirklees Active Leisure Trading Limited IKALTI, a catering and vending service 15 provided by 3rd parties commissioned by KALT. KALT also directly provides a café at one of the Charity's facilities. The Charity is committed to equality of opportunity where possible and works closely with local networks within the statutory and voluntary & community sectors to ensure that there 15 3 CO- ordinated, well-informed approach taken. In October 2022 KAL were awarded the Inclusive Employers Bronze standard award, a fantastlc achievement for the Charity and a demonstration of our commitment to equality, diversity & inclusion and testament to the progress made. An actlon plan is now bein8 progressed to try to ensure the Charity continues to develop this important aspect. In March 2023 KAL achieved ualit 4 Health & Wellbein Accreditation for "excellence in health & wellbeing services" This rigorous external accreditation process provided a thorough review of KAL and confirmed the organisation a5 operating at a hi8h standard. The Charity's relationship wlth Kirklees Council, as KAL'S host authority, has been si8nificantly strained durin8 2023/24 given the reduction in future funding available from the Council, their leisure centre consultation exercise and the need for KAL to quickly propose and implement an alternative model for the much-reduced funding available. KAL'S position as an independent Charity needs to be remembered by the Council and a return to an effective partnership model of working developed again for the benefit of both parties and the local community. Strong partnerships continue with several National Governing Bodies of Sport, the Yorkshire Sport Foundation, Third Sector Leaders - Kirklees, KYA, the University of Huddersfield and a range of other local partners across the public, private and voluntary sectors. KAL is a member of Community Leisure UK, the trade association for leisure and cultural Trusts in the UK and has good and improving links with the current West Yorkshire local authority leisure facility Page | 11 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 TRUSTEES. REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) providers. KAL also works to support and, where possible, fundraise, for a wide range of local and national charities throughout the course of the year, such as the local hospices, Uniform Exchange, etc. Consultation KAL completed a further annual customer survey in April 2023, with over 2,IW customers taking part. Headline results were. disappointingly, down from the previous year- Overall customer satisfaction was rated as 75.8 (compared to 77.1 in 2022 and 79.6 in 2019) Value for money was rated 75.8 {compared to 78.6 in 2022 and 80.4 in 2019} KAL needs to continue to focus upon providing excellent customer service and continuing good value for the services provided to try to improve upon this position in future years. The results for how making use of one of the Charity's sites made people feel, from a health & wellbeing perspective, remained positive, but slightly reduced also from 2022 (in brackets}. with an index of 81.8 (82.81 for use makin8 Customers feel healthler,. 71. 1 {721 for feel more confident; 77. 1 {77.9) for happier; and 77. 5 {781 for improving their quality of life. As well as the annual customer survey, the Charity also receives ad hoc feedback via our various communication channels. Benefits of partlclpatlon There are a range of si8nificant and reco8nised benefits from participating in the activities provided by the Charity. These include: Health benefit$: The primary benefit of taking part in the activities provided by the Charity relates to improving the health, wellbeing and the quality of life of individuals las ref lected in the customer survey feedback noted above). Taking part in regular positive exercise has been shown to be a major factor to contributin8 towards reductions in heart disease, levels of obesity, the risk of cancer and type 2 diabetes, preventing high blood pressure, delaying the pro8ression of osteoporosis and as part of the treatment process for cystic fibrosis. In recent years there has been an evidenced link between exercise and reducingldelaying the effects of dementia. It is also recognised that physical activity has a major positive impact on an individual's mental wellbeing, improving their self- confidence and self-belief and reducing their levels of stress and anxiety. Education: The swimming lessons that take place within the Charity's facilities each year, teaching both children and adults a key life skill. Coaching and instruction is also provided In a variety of sports and other leisure activities. Swim Teaching and Lifeguard courses are held by the Charity on regular basis, both for the Charity's own staff and external attendees. Life8uard,' safeguarding* equality, diversity & inclusion; manual handling; and other related trainin8 15 also provided to the CharitVs own staff. Community cohesion: The Charity operates 5ite5 across the Kirklees district, serving an ethnically and economically diverse population, with a wide cross-section choosing to participate in sport and wider physical activity within the various leisure centres. However, as noted elsewhere in this report and due to the financial challenge facing the Charity and the need to rationalise the level of provision available, given the closure/ reduced opening hours of several of the Charity's facilities since December 2022, the ability of the Charity to impact on local community cohesion in certain areas of Kirklees has significantly reduced. Community development: Many sport and activity clubs make use of the sites operated by the Charity, offering the opportunity for local people to try a range of activities, mix socially and enjoy Page | 12 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2024 TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) the benefits of a healthy lifestyle. Through the Charity's proactive links to a wide range of organisations in the local area, KAL supports several community groups to raise the profile of their services, fundraise and improve their sustainability. Again, unfortunately the closure/ reduced opening hours of several KAL sites is likely to reduce the amount of community development that KAL is able to contribute to. Strategic Report Achievement. Performance and Challenges The start of 2023124 saw the Charity successfully re-open the Colne Valley Leisure Centre swimming pool, which had temporarily closed in December 2022, while the Deighton Sports Arena. which had also closed temporarily in December 2022, also re-opened. but on a limited hours basis only. As the financial position continued to be very challengin8 Kirklees Council made KAL aware that their funding support would have to reduce significantly from £6.Im in 2023/24 to £2.55m in 2024125 due to their own considerable financial pressures. This required KAL to re-evaluate our financial model and work towards developing a significantly reduced offer. The Council also instigated their leisure centre public consultation exercise to seek the views of the local community, both custorners and non-users. The consultation included an indication as to whlch sltes it was proposed may need to close, which was worrying for those staff and customer groups in particular. The Council's consultation exercise was met with a huge response, wlth over 17k replies, as well as responses received by a wide range of stakeholders, both locally and from further afield, expressing their support for KAL and the local leisure centre5. In addition, extensive amount5 of RAAC {Reinforced Autoclaved Aerated Concrete) were discovered within Dewsbury Sports Centre in September 2024, with the Council asking KAL to close the site with immediate effect. The Charity responded proactively to these challenges, developing a new financial model and taking the action necessary to close particular sites, move the Charity's Head Off ice and reduce staff ing numbers. This resulted in a successful in year turnaround, helped by the retention of lar8e numbers of customers from closed sites to the remaining facilities, with some new investment into improved facilities at two of the sites and a range of further invest-2-save energy reduction schemes at several sites, taking place in the final quarter of 2023/24. The final end of year financial position is outlined in detail below but demonstrates an incredibly positive outturn position considering the major challen8es faced, in probably the most demanding year the Charity has ever had. This is a huge endorsement of the ability and dedication of the Charitws Trustees and staff. End of year performance highlights to note included: Aim: Putting People First o Fitness memberships: due to the reduction in leisure facilities, this figure reduced to 18,853 at the end of March 2024 Ifrorn 22,967 at the end of March 20231, however, the level of customer retention wa5 Still a positive given the loss of several sites. Swim lessons: 6023 swim lessons were taking place at the end of 2023124, from 6998 at the end of 2022123. Again, given the level of site closures, this was not considered as major a reduction as might have been expected, with reasonable levels of customer retention. Page | 13 KIRKLEES AcfivE LEISURE1433116S) 31 MARCH 2024 TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) o Flexi Card holders: The Flexi Card provided by the Charity offers registered customers with discounted access to the KAL sites and had 15,073 registered customers by the end of 2023124 la reduction from 18,697 at the end of 20221231. o Health & wellbeing products: while much smaller numbers were involved, these relatively new products were protected by KAL, despite their need for a financial subsidy, due to the important role they provided in supporting KAL'S strategic direction as a preventative health & wellbeing provider, the need to bring in a new customer base and the demand for these products that supported individuals, health & wellbeing. The use of the products actuallv grew during 2023124, with some 3618 customers registered on health & wellbeing programmes at the end of the year (compared to 2173 in March 20231. The Charity's golf course - Bradley Park - also had another very strong year, achieving the highest income fi8ure for a 12 month period since the Charity began managing the facillty. Over 2.54m customer visits took place at KAL sites {slightly down from 2.56m the year before, but minimal considering the reduced number of facilities provided), includin8 over 755k Ic.860k in 2022123) swimming Vlslts and 313k Yeahl Days Out family attractions visits Ic.310k in 20221231. o KAL employed 228.5 FTE'$1343 contracted staff at the end of 2023124. a significant reduction from the 301.5 FTE's/ 462 contracted staff at the end of 2022123, reflecting the major rationalisation exercise that had been undertaken. 53% of the staff are u25, with the Charity continuing io be one of the largest employers of young people in the local area. 0 121 system further improved and re-launched for all staff. 0 120 externally recognised courses were held for KAL staff and external individuals, covering fitness, pool plant operation, health & safety, first aid, food hygiene and maintenance. o Over 700 instances of staff attending internal training opportunities. o KAL has over 40 active volunteers, including 10 Trustees. Alm: Helping More People Become More ktlve o Refreshed and improved fitness suites at Holmfirth Pool & Fitness Centre (March 20241 and Scissett Baths & Fitness Centre (March 2024). Ongoing development of the Charity's fitness membership partnership with the University of Huddersfield, whereby their students and staff can receive low-cost access to the ChariWs sites, helping to encourage them to take part in positive health & wellbeing activity. Quality 4 Health & Wellbeing accreditation achieved in March 2023, provldlng the Charity with external validation of KAL'S readiness to be an effective health & wellbeing provider. Aim: Deliverin8 business excellence o Electricity consumption reduced by 25% in 2023124 compared to 2022123 o Ga5 increased slightly by 0.01% in 2023124 compared to 2022123, reflecting the use of Combined Heat & Power {CHPI units across several sites to produce electricity. 0 £479k award obtained from Sport England's Swirnming Pool Support Fund towards the energy and pool chemical costs at Huddersfield Leisure Centre and Scissett Baths & Fitne5S Centre. o Energy 6 a range of energy savin8 projects, largely around the installation of further lighting schemes and destratification fans, were installed during the final quarter of 2023124. o Display Energy Certificates (DECS) at all sites improved their ratings, other than at Huddersfield Leisure Centre, which remained the same. Page114 KIRKLEES AcfivE LEISURE (4331165 31 MARCH 2024 TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) Financial Revlew The table below summarises the group's financial performance: 2023124 2022123 INCOME From customers From customers of subsidiary 13,988 310 14,299 13,966 280 14,246 Investment income Funding by Kirklees MC Other funding 133 3,036 46 17,514 71 2,963 18 17,298 EXPENDITURE Staff costs, including self-employed instructors Other costs incurred by KAL Costs incurred by KALT 10,757 5,931 274 10,829 6,584 269 16,962 17,682 EXCESS OF EXPENDITURE OVER INCOME, BEFORE THE EFFECTS OF THE DEFINED BENEFIT PENSION SCHEME 551 1384) EFFECTS OF THE DEFINED BENEFIT PENSION SCHEME Current year charge Re-measurement gain / Ilossl {2721 2,910 2,638 12,5341 19,156 16,622 NETMOVEMENTIN FUNDS BEFORE TAX 3,189 16,238 Corporation Tax charge on KALT NETMOVEMENT IN FUNDS AFTER TAX iii 3,188 16,239 FUNDS BROUGHT FORWARD 1,511 4,699 114,7281 1,511 FUNDS CARRIED FORWARD Comprising.. Charity reserves. excluding pension liabilitv Subsidiary reserves Total Funds. excluding pension liability 1,275 727 1,275 725 Pension surplus / (def icitl Total Funds 3,424 4,699 786 1,511 The group's income for the year was £17,513,368 {2022123 £17,297,446), of which £13,988,181 (2022123 £13,965,617) was generated through charitable trading activities. The trading subsidiary contributed a further £310,468 {2022/23 £279,949) which was largely café customer generated income. Page 115 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2024 TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) Total resources expended amounted to £16.962,002 12022123 £17,681,858) including costs incurred by the trading subsidiary of £274,16712022123 £269,454). Before the effects of Corporation Tax on the trading subsidiary, net movernent in funds for the year totalled an increase of £3,189,36612022123 increase of £16,237,588) and after the estimated tax charge of £94212022/23 £1,297 credit), a total of £3,188,42412022123 an increase of £16,238,885) has been added to the unrestricted funds. The wholly owned subsidiary, Kirklees Active Leisure Tradin8 Limited, recorded a net profit before taxation and before gift aid of £37,78612022123 £10,960). Investment powers and policy The Memorandum and Articles of Association of the Charity permit the Trustees to Invest the monies of the Charity not immediately required for its purposes, in or upon such investments, securities or property as may be thought fit. Reserves pollcy The Trustees reviewed the reserves policy of the Charity at their meeting of 20 September 2023. The review concluded that to allow the Charity to be managed efficiently and to try to provide a suitable element to ensure uninterrupted service provision, a general reserve should be maintained. The level of reserves held by the Trust should be based on an assessment of the va rious business risks that could affect the Charity. The Trustees agreed at their meeting on 17 July 2024 based upon the assessment of risk an unrestricted general reserve of £900,000 should be held, After full adoption of FRS 102, there is a balance of £4,699,16312022123 £1,510,739). Excluding the pension scheme reserve there is a general unrestricted reserve of £1,130,996 at the end of 202312412022123 £591,749). The Charity has restrirted funds totalling £143,840 at the end of 202312412022123 £135,507). At 31 March 2024, the Charlty has £230,99612022123 £nill unrestricted free reserves. Free reserves are defined by the Charity Commission as unrestricted funds, excludin8 those unrestricted funds which can only be realised by disposin8 of fixed assets, held for the Charity's use. The Trustees are continually seeking ways to improve the level of the general reserve to a suitable level and therefore increase the level of funds for development of the Charity's facilities, Summary of future plans As outlined above, 2023124 was a hugely challenging year for KAL as it had to undertake a major rationalisation of the services provided in order to reduce the Charity's expenditure to reflect the considerable reduction in funding support available from Kirklees Council in 2024125. While the decisions and work undertaken during the year were probably the most difficult, collectively, that the Charity has had to make since its, inception in 2002, the organisation ha5 now emerged frorn this watershed strongly, with a very positive 2023124 final quarter and a stron8 end of year position. The rationalised model with the reduced sites operated and staff employed, as well as a new Head Office base established at Huddersfield Leisure Centre, is now in a positive position to stabilise and then look to grow the Charity once again over the future years. The Charity has retained and is looking to enhance a strong and capable Board of Trustees, has an experienced and hugely capable senior staff team and is now recruiting new Page | 16 KIRKLEES AcfivE LEISURE {4331165) 31 MARCH 2024 TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) staff once again to reenergise both the Head Office and operational staff teams. Further capital investment is planned for several of the sites, either as essential mechanical & electrical plant items or for further energy saving works to help with the future position of the Charity. The health & wellbeing products and approach of the Charity have been retained and continue to grow, with an increasing and positive body of outcome evidence emerging. Work continues to progress a major pre/post cancer rehab project in pa rtnership with Mid Yorkshire Hospital Trust and Wa kefield Council. A wide range of further efficiencies and development opportunities are being explored, which should help support KAL'S Medium Term Financial Plan, where future years financial challenges remain apparent. The position regarding several of the closed li.e. Batley Baths & Recreation Centre and Dewsbury Sports Centrell reduced operating hours li.e. Deighton Sports Arena) sites needs to be confirmed during 2024125 if at all possible, given the ongoing significant costs relating to each, the very limited customer use of Dei8hton Sports Arena and the major risk to both KC and KAL of unauthorised access/ vandalism to all of these facilities. KAL'S future wlll be impacted upon by two major factors, as well as the range of other rlsks outlined below: UK economic positlon: Inflation needs to significantly reduce to be reflected In lower supplier costs. NLW costs being imposed upon a not-for-profit employer such as KAL who have such a significant workforce are especially challenging. Energy costs also need to stabilise significantly, given the Chaf Ity's facility base and high energy requirements for swimming pools in particular. Hopef ully the Council's move to an alternative utility supplier will help with this position. Klrklees Councll and the level of financlal support affordable to KAL: The local authority face a hugely challen8in8 futu re position themselves and, while short term support frorn the Council remains significant and very welcome into 2024125, it is likely that this will not be able to be continued. KAL will continue to seek a dialogue with the Council about a realistic rate by which further reductions in their financial support can be managed without the major disruption, reputational damage and impart on KAL staff ihat has been seen during 2023124. Given the above, KAL wlll need to continue to monitor the affordable scale of the organisation, both in terms of sites operated and services provided to a level which is viable for the level of income Iboth from customers and as subsidy from the local authority) that can be provided. However, this is now from a stronger startin8 point for the Charity with the major sites which were operating at significant financial 105s now closed to the public or operating on reduced hours and, as lon8 as no further major, unrealistic funding cuts are imposed too quickly, the new KAL model should be able to stabilise and grow to allow for reasonable future reductions in Council funding support while still maintainin8 the level of service now available. Risk Management and Financial Instruments The Trustees continue to review the major risks to which the Charity is exposed, particularly those related to the operation and finances of the Charity. The Corporate Risk Register is reviewed on an approximately six-monthly basis by the main KAL Board, with any new and increasing risks highlighted, as well as the mitigating action being proposed to address these. The Trustees have considered the appropriate policies, procedures and systems to mitigate the Charity'5 exposure to the identified major risks where they can. As of the KAL Board meeting in March 2024, the major corporate risks facing KAL were identified as follows: Page117 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2024 TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORTI Ref Risk Energy management Comment Given the ongoing conflict in U kraine and, although there is likely to be a reduction as the Council change their energy suppliers over the coming years, the continu ing high market costs of both gas and electricity, then this aspect has a major impact on the cost to operate the Charity's provision, particularly its, swimming pools. Relating to the short/ medium-term financial viability of the Charity and continuing to reflect the need for ongoing financial support from Kirklees Council, which, if to reduce further, needs to be considered in dialogue with KAL and in a measured way if at all possible, to avold further service disruption. Acknowled8ing the ongoing difficult financial position facing KAL. both staff and customers. with energy costs that remain high and the emergence of extensive cost of livin8 pressures for many. Kirklees Council, as KAL'S main partner, also adversely affected. Cost of borrowing reductions would allow KAL the opportunity to develop new Income generating products. Cost of living increases, increasing workloads due to reduced staffing numbers and the need to re-build staff confidence from the recent threat of facility closuresl related redundancies will all increase the risk of a dissatisfied workforce and low levels of morale. While the site is currently closed due to the discovery of RAAC in the wetside part of the site, the Council continue to consider their options before making a final decision, with KAL being requ ired to cover the site safety & secu rity costs. The risk of unauthorised access / vandalism to the site are also a concern. The ongoin8 significant National Livlng Wage increases impacting upon KAL require further job grades to be increased to ensure the salary differential is maintained. Given such a large staffing nu mber such additional costs for a not-for-prof it organisation are challenging. KAL staff salaries remain below those of local authority Staff undertaking equivalent responsibility roles. Noting the continuin8 high level of financial support being provided by the Council even following their major reduction in sUPPOrt from 2023/24 levels to support in 2024/25. The recognition that this is likely to decrease further given the Council's own major financial challenges, but the need for this to be a managed reduction to allow for sites & services to continue to operate if at all possible. Reflerting the high cost of operating swimming pools, the risk that any future pool closures could negatively impact up on school swimming delivery and the emergence of temporary pool operators which may tempt some schools due to the lower costs and reduced time out of school. KAL'S Medium Term Financial Plan Economic Climate Low staff morale Dewsbury Sport5 Centre Salary pressures KC financial position School swimming Page118 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2024 TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) Ref Rlsk Major capital risks Comment A lack of available capital funding from the Council to meet their lease requirements at the Charity's sites. With the Charity, like many others, continuing to struggle to recruit/ retain staff. Customer frustration was evident during the Council's leisure centre consultation exercise, with the subsequent damage this caused to KAL'S reputation. This needs to be re- built, with the planned insourcing of the DD collection process part of this approach. Given the ongoing cost of living crisis and the subsequent impact on customers and their levels of disposable income. This reflects both changes in internal processes and also the risk of the Charity facing cyber-attack. Competitors opening in the local area and Market Management in mitigation Increased risk as cost pressures continue to ensure that required checks, training, etc are undertaken. io Staff recruitment/ termination Oissatisfied customers retention/ li 12 Business plans do not achieve objectives IT systems failure/ breaches 13 14 Competitors 15 Major incident {e.g. H&S incident, fire, terrorist attack, etc.) KAL'S Audit Committee oversees the enforcement of the Charity's financial controls, with an annual audit programme agreed and provided by Kirklees Council's Audit Unit. This considers financial controls in place within a selection of the sites managed by the Charity and across key operational areas. Follow-up audits are then undertaken as necessary. The Charity's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds to finance the Charity's operations. Due to the nature of the financial instruments there is no exposure to price risk. The approach to managin8 other risks applicable to the financial instruments concerned is as follows: In respect of bank balances, the liquidity is managed by maintaining credit balances. The Charity makes use of deposit facilities when funds are available. Trade debtors are managed by the regular monitorin8 of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts falling due. Auditor The Charity's Auditor's were reconsidered with an approach led by KAL'S Audit Committee and then ratified by the KAL Board at their March 2022 KAL Board meeting, where Simpson Wood were appointed as KAL'S new Auditors from the 2021/22 financial year and have again been commissioned to audit KAL for the 2023/24 financial year. th Thi5 Trustees, Report, including the Strategic Report, was approved by the Board on 18 September 2024 and signed on it5 behalf by: D Stephenson Chair of the Trustees Page | 19 KIRKLEES ACTIVE LEISURE {43311651 31 MARCH 2024 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees (who are also Directors of Kirklees Active Leisure for the purposes of company lawl are responsible for preparing the Trustees, Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each f inancial 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 the year. In preparing these financial statements, the Trustees are required to.. select su itable accou ntin8 policies and then apply them consistently: observe the methods and principles in the Charities SORP 2015 IFRS 1021; make judgments and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any materlal departures disclosed and explained in the financial statements; prepare the financial statements on the 80ing concern basis unless it is inappropriate to presume that the charitable com pany will continue in operation. The Trustees are responsible for keepir18 proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware.. There 15 no relevant audit information of whlch 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. P38e | 20 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KIRKLEES AcfivE LEISURE Opinion We have audited the financial statements of Kirklees Active Leisure {the 'parent charitable company'} and its subsidiaries (the 'group'l for the year ended 31 March 2024 which comprise the group and parent charitable company.. statement of f inancial activities; the balance sheet; cashflow statement and the notes to the financial statements, including a summary of significant accounting policies. The financial reportin8 framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Finonciol Reporting Standard applicable in the UK ond Republic of Irelond (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 parent charitable company's affairs as at 31 March 2024 and of the group's incoming resources and application of resources, for the year ended. and have been properly prepared in accordance with United Kingdom General Accepted Accounting Prattice. have been prepared in accordance with the requirements of the Charlties Act 2011 and Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing IU KI IISAS IU Kll and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the oudit of financial statement5 section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to ou r audit of the f inancial statements in the U K, including the FRC'S Ethical Standard and provisions available for small entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obta ined is suff icient and appropriate to provide a basis for our opinion. Concluslons relatlng to goln8 concern We have nothing to report in respect of the following matters in relation to which the ISA5 IUKI require us to report to you where.. the trustees, use of the going concern basls of accounting in the preparation of the financial statements is not appropriate; or the trustees, have not disc105ed in the financial statements any identified material uncertainties that may cast significant dou bt about the group's or parent charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financia I statements are authorised for issue. This year as per the statement of financial activity a small surplus was incurred during the year both at a group and company level, prior to recognising the pension movement. 80th the group and the company ended the year with a surplus of cu rrent assets compared to current liabilities. The trustees" assessment of going concern and their rationa le for preparin8 the f inancial statements on that basis is set out at note Ilq) on page 35. In auditing the financial statements, we have concluded the trustees, use of going concern basis of accounting in the preparation of the financia I statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast doubt on the grou p and parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Page121 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KIRKLEES ACTIVE LEISURE Other Infomiation The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does 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 and, 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 we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other informatlon. 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 nothin8 to report in this regard. Opinlons on other matters prescrlbed by the Companies Art 2006 In our opinion, based on the work undertaken in the course of our audit: the information given the trustees, report lincluding directors, report and strategic report} for the financial year for which the financial statements are prepared is consistent with the financial statements,. and the trustees, report has been prepared in accordance with applicable legal requirements. Matters on whlch we are required to report by exceptlon In the light of the knowled8e and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report lor the strategic reportlincluded within the trustees, report. We have nothing to report in respect of the following matters in relation to which the Charities {Accounts and Reports} Regulations 21J)8 require us to report to you if, in our opinion: adequate and proper 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 not in agreement wlth the accounting records and returns; or certain disclosures of trustees, remuneration speclfied by law are not made; or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the statement of trustees, responsibilitie5, the trustees {who are a150 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 trustees determine 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 tru5tee5 are responsible for assessing the group's and parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going Page122 KIRKLEES ACTIVE LEISURE1433116S) 31 MARCH 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KIRKLEES ACTIVE LEISURE 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. AuditoFs responsibilities for the audit of the financial statements We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 an auditor's report 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 (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 a88re8ate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Extent to which the audlt was considered capable of deterting Irregularitles Including fraud 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: we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group and the parent charitable company, including Charities Act 2011, Charities (accounts and Reports) Regulation 2008, Companies Act 2006, data protection and anti-bribery legislation; we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throu8hout the audit. We assessed the susceptibility of the group's and parent charitable company's financial statements to material mlsstatement, includin8 obtaining an understanding of how fraud might occur, by: makin8 enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual. suspected and alleged fraud: considering the internal controls in place to mitl8ate risks of fraud and non-compliance with laws and re8ulations and. performed analytical procedures to identify any unusual or unexpected relationships. To address the risk of fraud throu8h management bias and override of controls, we: tested journal entries to identify unusual transactions; assessed whetherjudgernents and assumptions made in determining the accounting estimate5 were indicative of potential bias and; investigated the rationale behind significant or unusual transactions. Page | 23 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KIRKLEES AcfivE LEISURE In response to the risk of irregularities and non-compliance with laws and regulations, we desi8ned prO￿dureS which included, but were not limited to: agreeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with governance and. enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the Inspection of regulatory and legal correspondence, if any. Materlal misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audlt of the financial statements is located on the Financial Reportin8 Counclys website at: httP:/lwww.frc.org.uk/auditorsresponsibilities. Thls description forms part of our auditor's report. Simpson Wood Limited is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under section1212 of the Companies Act 2006. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with part 4 of the charities (Accounts and Reports) Regulation 2011. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Daniel McAlllster FCA (Senlor Statutory Audltor) For and on behalf of Slmpson Wood Llmlted Chartered Accountants Statutory Auditor Bank Chambers Market Street Huddersf ield HDI 2EW Dated: 18 September 2024 Pa8e124 KIRKLEES AcfivE LEISURE {4331165) 31 MARCH 2024 FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF FINANCIAL AcfiviTIES lincludin8 Income and Expenditure Accountl 2024 Unrestricted Restricted funds Funds 2023 Notes Total Total Income and endowments from: Charitable activities Other trading activities Investments Other 13,988,181 310,468 132,966 3,035,867 13,988.181 310,468 132.966 3,081,753 13.965.617 279,949 71,260 2,980,620 45,886 Total Income 17,467,482 45,886 17,513,368 17,297,446 Expenditure on: Raising funds Charitable activities 274,167 16,922,282 274,167 37,553 16,959,835 269,454 19,946,404 Total expenditure 17,196,449 37,553 17,234,002 20,215,858 Net income/(expendlturel 271,033 8,333 279,366 {2,918,4121 Other recognised gains/llosses): Re-measurement gain/lloss) on defined benefit pension scheme 24 2,910,000 2,910,000 19, 156,000 Net movement In funds before tax 3,181,033 8,333 3,189,366 16,237,588 Corporatlon tax char8e on subsldlary (9421 {9421 1,297 21 Net movement in funds after tax 3,180,091 8,333 3,188,424 16,238,885 Reconclllation of funds: Total funds brought forward 21 1,375,232 135,507 1,510,739 {14,728,1461 21 Total funds carried forward 4,555,323 143,840 4,699.163 1.510.739 All income and expenditure derive from continuing activities. The statement of financial activitie5 includes all gains and losses recognised during the year. Page125 KIRKLEES ACTIVE LEISURE {4331165 31 MARCH 2024 FINANCIAL STATEMENTS CHARITY STATEMENT OF FINANCIAL AcfiviTIES lincludin8 Income and Expenditure Account) 2024 Unrestricted Restricted funds Funds 2023 Notes Total Total Income and endowments from: Charitable activities Other trading activities Investments Other 13,988,181 52,858 131,481 3,035,867 13,988,181 13,965,617 52,858 38,274 131,481 70,795 3,081,753 2,980,620 45,886 Total Income 17.208,387 45,886 17,254,273 17,055,306 Expendlture on.. Charitable activities 16,941,140 37,553 16,978,693 19,967,278 Total expendlture 16,941,140 37,553 16,978,693 19,967,278 Net income/(expendlture> 267,247 8,333 275,580 12,911,972) Other reco8nised 8alns/llossesl: Re-measurement gain/llossl on defined benefit pension scheme 24 2,910,000 2,910,000 19,156,000 Net movement in funds 3,177,247 8,333 3,185,580 16,244,028 Reconclllatlon of funds: Total funds brought forward 21 1,377,749 135,507 1,513,256 {14,730,772} 21 Total fund$ carrled forward 4,554.996 143,840 4,698,836 1,513,256 Al l income and expenditu re derive f rom continuing activities. The statement of financia l activities includes all 8ains and losses recognised during the year. Page126 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2024 FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEEf AS AT 31 MARCH 2024 Notes 2024 2023 Fixed assets Tangible assets 13 946,754 946,754 1,518,846 1,518,846 Current assets Stocks Debtors Cash at bank and In hand 15 16 25,414 410,979 1,942,753 2,379,146 263,693 2,869,626 3,133,319 17 Creditors: amounts falling due within one year Net current assets 12,804,910) 328,409 13,172,472) 1793,3261 Total assets less current Ilabilities 1,275,163 725,520 18 Creditors: amounts falling due after more than one year 20 Provision for IlabllltSes 17811 Net assets excludin8 pension liability 1,275,163 724,739 24 Deflned benefit pension Ilabilitv Net (liabilities) 3,424,000 4,699,163 786,000 1,510,739 Charlty Funds Unrestricted funds exclud ing penslon def iclt Charity Trading Subsidiary Designated funds Total unrestrlcted funds before pension deftclt 1,130,996 327 591,749 -2,517 1,131,323 589,232 24 Penslon deftclt Total unrestrirted funds 3,424,000 4,555,323 786,000 1,375,232 21 21 Restrlcted funds 143,840 135,507 Total charity deficit 4,699,163 1,510,739 The financial statements were approved and authorised by the Board on 18th September 2024. The notes on pages 31 to 49 form part of these financial statements. Signed on behalf of the board of trustees ¢ ¥k pk(tr D Stephenson - Chair of the Trustees Page | 27 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 FINANCIAL STATEMENTS CHARITY BALANCE SHEEf A5 AT 31 MARCH 2024 Notes 2024 2023 Fixed assets Tangible assets Investments 13 14 945,246 1,511,427 945,248 1,511,429 Current assets Stocks Debtors Cash at bank and in hand 15 16 25.414 452,973 1,922,559 2,4C(J,946 320,512 2,833,714 3,154,226 17 Creditors: amounts falling due within one year Net current assets {2,824,638) 329,588 {3,185,1191 (784,173) Total assets less current liabilitles 1,274.836 727,256 18 Credltors: amounts falling due after more than one year Net assets excludlng pension Ilablllty 1,274,836 727,256 24 Deflned benefit pension Ilability Net {liabllltles) 3,424,000 4.698,836 786,000 1,513,256 Charlty Funds Unrestricted funds excluding pension deficit Designated funds Total unrestricted funds before penslon surplus 1,130,996 591,749 1, 130,996 591,749 24 21 Pension surplus Total unre5trlcted funds 3,424,000 4,554,996 786,000 1,377.749 21 Restrlcted lunds 143,840 135,507 Total charlty surplus 4,698,836 1,513,256 The financial statements were approved and authorised by the Board on 18th September 2024. The notes on pages 31 to 49 form part of these financial statements. Signed on behalf of the board of trustees D Stephenson- Chair of the Trustees Page | 28 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 FINANCIAL STATEMENTS CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 MARCH 2024 2024 2023 Notes 22 Net cash flow from operatlng artlvltles 863,984 11,355,012) Cash flow Irom investin8 actlvlties Payments to acquire tangible f ixed assets Receipts from sa les of tangible fixed assets Interest received Net cash flow from investing artivities 1103,2871 34,121 132,966 63,800 {807,5281 93,600 71,260 1642,6681 Cash flow from financln8 artlvltles Repayment of finance lease liabilities Interest paid Net cash flow from financin8 activities Net increasel(decfeasel In cash and cash equlvalents 927,784 11,997,680) Cash and cash equlvalents at l April 2023 1,941,842 3,939,521 Cash and cash equlvalents at 31 March 2024 2,869,626 1,941,841 Cash and cash equlvalents con51sts of: Cash at bank and in hand Bank overdraft Cash and cash equlvalents at 31 March 2024 2,869,626 1,942,753 1912) 1,941,841 2.869,626 Page129 KIRKLEES AcfivE LEISURE (43311651 31 MARCH 2024 FINANCIAL STATEMENTS CHARITY CASH FLOW STATEMENT for the year ended 31 MARCH 2024 2024 2023 Notes 22 Net cash flow from operating activities 848,840 11,367,981) Cash flow from Investlng actlvltles Payments to acquire tangible fixed assets Receipts from sales of tangi ble fixed assets I nterest received 1103,287) 34.121 131,481 62,315 {807,528) 93.600 70,795 (643,133} Net cash flow from Investln8 activltles Cash flow from tlnancln8 artivltles Repayrnent of finance lease l labilities Interest paid Net cash flow from flnancln8 actlvftles Net Increase/{decrease) in ca$h and cash equivalents 911,155 12,011,114) Cash and cash equlvalents at l Aprll 2023 1,922,559 3,933,673 Cash and cash equivalents at 31 March 2024 2,833,714 1,922,559 Cash and cash equivalents consists of: Cash at bank and In hand Bank overdraft Cash and cash equlvalents at 31 March 2024 2,833,714 1,922,559 2,833,714 1,922,559 Page | 30 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS summary of significant accounting policies (a) General information and basis of preparation Kirklees Active Leisure is incorporated under the Companies Act 1985 in the United Kingdom and is limited by guarantee. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered off ice is given in the charity information on page l of these financial statements. The nature of the charity's operations and principal activities are detailed in the Trustees, Report. The charity constitutes a public benefit entity as defined by FRS 102. The f inancial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charilies preparing their accounts in accordance with the Financia l Reporting Standa rd applicable in the UK and Republic of Ireland {FRS 1021 issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland {FRS 1021, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from January 2015. The financial statements are prepared on a going concern ba515 under the historical cost convention. The f inancial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £. The consolidated accounts comprise the accounts of the charity and its su bsidiary. The results of the subsidiary are consolidated on a line by line basis as the subsidiary and parent have identical purpose. The charity has availed itself of Paragraph 411) of Schedules of the Larger and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 and adopted the Companies Act formats to reflect the specia I nature of the charity's activities. The significant accounting policies applied in the preparation of these financial statements are set out below. These pollcles have been consistently applied to all years presented unless otherwise stated. Ib) Funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financia I statements. Restricted fund5 are funds which are to be used in accordance with specific restrictions imposed bv donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. (c) Income recognition All incoming resources are included in the Statement of Financial Activities {SoFAI when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. Page | 31 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENT5 Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. The charity receives grants i n respect of its charitable activities. I ncome from grants is recognised at fair value when the charity has entitlement after any perforrnan￿ conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement conditions are not met then these amounts are deferred. Investment Income is earned through holding assets for investment purposes, It includes interest. Interest income is recognised using the effective interest method, Id) Expendlture reco8nltlon All expenditure is accounted for on an accruals basis and has been classified under headin8S that a88regate all costs relating to the cate80ry. Expenditure 15 reco8nised where there is a legal or constructive obligation to make payments to third parties, it is probable that settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headin85.' Costs of raising fund5 includes of the cost of commercial trading and associated support costs; Expenditure on charitable activities includes the cost of operating community recreation facilities on behalf of the local authority {Kirklees Metropolitan Council},' and Other expenditure represents those items not falling into the cate8ories above. Irrecoverable VAT is charged as an expense in the Income and Expenditure Account. (e) Support costs allocatlon Support costs are those that assist the work of the charity but do not directly represent the charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. The analysis of these costs is included in note 7. If) Tangible fixed assets Tangible fixed assets are stated at cost. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual val ue, of each asset on a systematic basis over its expected useful life a5 follows.. Plant and machinery- Fixtures and fittings 3 to Ioyears 2 to 10 years Pa8e | 32 KIRKLEES AcfivE LEISURE143311651 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS (g) Impairment of Flxed Assets At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss lif any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash- generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessin8 value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset lor cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset Is carried at a revalued amount, in which case the impairment loss is treated as revaluation decrease. Reco8nised irnpairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment 1055 subsequently reverses, the carrying amount of the asset {or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset {or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Ih) Cash and Cash Equivalents Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. (l} Investments Investments are measured at cost less impairment. ti) Stocks Stocks are stated at the lower of cost and net realisable value. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost Is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-movin8 Stock where appropriate. (k) Debtors and creditors receivable / payable within one year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. Page133 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS 11) Provlsions Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. (m) Leases Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstandin8 lease liability using the effective interest method. Rentals payable and receivable under operating leases are charged to the SOFA on a straight line basis over the period of the lease. (n) Employee beneflts When employees have rendered sen4ice to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The charity contributes to a defined benefit plan for the benefit of its employees. A liability for the charity's obligations under the plan is recognised net of plan assets. The net change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date. (ol Tax The charity is an exempt charity within the meaning of Schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph I Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. The taxation expense In relation to the subsidiary company represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in income and expenditure, except to the extent that it relates to items recognised in other comprehensive Income or directly in equity. In this case, tax is recognised in other comprehenslve income or di rettly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enarted or substantively enacted at the reporting date. Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of Pa8e | 34 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Ip) Financial instruments Financial instruments are classified and accounted for, according to the substance of the contractual arrangement. as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducti n8 all of its liabilities. (q) Going concern The directors have prepared the financial statements on a going concern basis, as they believe that no material uncertainties exist. This assessment is based upon Kirklees Council providing the level of fundin8 al ready agreed until 31 March 2025 and the indicative fundin8 for the following years to 31 March 2027. The budgeted income and expenditure is sufficient with this level of funding for the charlty to be able to continue as a going concern. Income from charltable artivitles - Group and Charlty 2024 2023 Sale of goods and services 13,988,181 13,965,617 13,988,181 13,965,617 Income from charitable activities was £13,988,181 {2023: £13,965,617) of which £nil12023.' £nill was attributable to restricted and £13,988,181 {2023: £13,965,617) was attributable to unrestricted funds. Pa8e135 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS Income from other trading activities Group 2024 2023 Trading subsidiary turnover 310,468 279,949 Income from other trading activities was £310,46812023: £279,949) which was all attributable to unrestricted funds. Charlty 2024 2023 Management charge received from subsidiary Deed of gift from subsidiary 18,858 34,000 20,874 17,400 52,858 38,274 Income from Investments Group 2024 Charity 2024 Group 2023 Charity 2023 Interest 132,966 131,481 71,260 70,795 Group income from investments was £132,966 12023: £71,260) which was all attrlbutable to unrestricted funds. Other Income- Group and Charity 2024 2023 Funding provided by Kirklees Metropolitan Council Sports and Leisure Funding 3,035,867 45.886 2,962,870 17,750 3,081.753 2,980,620 Other income was £3,081,753 12023: £2,980.6201 of which £3,035,867 12023: 2.962,8701 was attributable to unrestricted funds and £45,886 (2023: £17,750) was attributable to restricted funds. Page | 36 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS Analysis of expenditure Group Support costs Total Staff costs Other costs Depreciation Raisin8 funds Trading subsidiary expenses 107,595 141,803 5,911 18,858 274,167 Charitable activities Staff costs Transport costs Premises costs Supplies & services Kirklees Metropolitan Council service level agreements 6,397,194 4,668,161 11,065.355 486,595 489,359 232,807 2,147,655 I,1￿,131 2,988,031 2,764 1,914.848 1,373,432 .55,000 669,468 276 269, 159 269,435 6,323,336 3,291,320 669,468 6,656.853 16,959,835 Total resources expended 6,430,931 3,433,123 675,379 6.675,711 17,234,002 Expenditure on raising funds was £274,167 {2023: £269,454) all of which was attributable to unrestricted funds. Expenditure on charitable activities was £16,959,835 {2023'. £19,946,404) of which £37,553 12023: £111,685) was attributable to restricted and £16.922.282 12023: £19,855,593) was attributable to unrestricted funds. Support costs Total Staff costs Other costs Depreciation Charity Charltable actlvltles Staff costs Transport costs Premises costs Supplies & serrfices Kirklees Metropolitan Councll service level agreements 6,397,194 4,687,019 11,084,213 486,595 489.359 232,807 2,147,655 1,000,131 2,988,031 2,764 1,914,848 1,373,432 .55,(XK) 669.468 276 269,159 269,435 6,342,194 3,291,320 669,468 6,675,711 16,978,693 Total resources expended 6,342,194 3,291,320 669,468 6,675,711 16,978,693 Expenditure on charitable activities was £16.978,693 {2023: £19,967,278) of which £37,55312023: £111,685) was attributable to restricted and £16,922,28212023: £19,855,593) was attributable to unrestricted funds. Pa8e | 37 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS Allocatlon of support costs Group Raising funds Charitable Activities Total Staff costs Transport costs Premises costs Supplies and services Kirklees Metropol itan Councll service level agreements 18,858 4,668,161 486,595 232,807 1,000.131 4,687,019 486,595 232,807 1,000,131 269,159 269,159 Total 18,858 6,656,853 6,675,711 Charfty Charitable Activities Total Staff costs Transport costs Premises costs Supplies and services Kirklees Metropolitan Council service level agreements 4,687,019 486,595 232,807 I,c￿,131 4,687,019 486,595 232,807 1,000,131 269,159 269,159 Total 6,675,711 6,675,711 Audit fees- Group and Charity 2024 2023 Auditorfs remuneration-statutory audit 20,1XiO 17,000 The above costs are attributable to unrestricted funds. Page | 38 KIRKLEES ACTIVE LEISURE {4331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS Net lexpenditure) for the year Net lexpenditurel is stated after charging/lcrediting) Group 2024 Charity 2024 Group 2023 Charity 2023 Depreciation of tangible fixed assets Gain on sale of tangible f ixed assets Operating lease rentals 675.379 134,121} 131,499 669,468 134,1211 131,499 586,133 193.6001 205,457 578.694 193,6001 205.457 10 Trustees, and key management personnel remuneratlon and expenses The trustees neither received nor waived any remuneratlon or other employee benefits during the current or previous year. The total amount of employee benefits recelved by key management personnel Is £323,918 12023: £312,222). The trust considers its key management personnel comprise of the Strate8ic Leadership Team which includes the Chief Executive and the Deputy Chief Executive. The remuneratlon of senior staff is reviewed annually by the Kirklees Active Leisure Remuneration Committee. The reimbursement of trustees, expenses was as follows: 2024 Number 2023 Number 2024 2023 Travel 65 11 Staff costs and employee beneflt$ The average monthly number of employees and full time equivalents IFTEI during the yearwas as follows: 2024 Number 2024 FTE 2023 Number 2023 FTE Charitable activities Raising funds 596 30 265.0 659 22 305.7 626 268.7 681 309.6 The total staff costs and employees, benefits were as follows: Group 2024 Charitv 2024 Group 2023 Charity 2023 Wages and salaries Social security Defined benefit pension operating costs Other payroll costs Self-employed instructors 8,381,753 569,610 1,008,397 651,832 561,358 8,297,838 568,231 1,004,954 651,832 561,358 8,925,422 623,685 2,853,573 99,657 524,534 8,850,003 621,953 2,848,500 99,657 524,534 11,172,950 11,084,213 13,026,871 12,944,647 Page139 KIRKLEES AcfivE LEISURE {4331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS 11 Staff costs and employee benefits Icontinuedl The total amount of employee redundancy or termination payments relating to the reporting period is £586,06312023.. £13,708). These costs are included within the total staff costs and were paid in the period. The number of employees who received total employee benefits (excluding employef pension costs) of more than £60,000 is as follows: 2024 Number 2023 Number £90,001- £100,000 £80,001- £90,000 £70,001- £80,000 £60,001- £70,000 12 Interest payable and similar charges- Group and Charltv 2024 2023 Interest on defined benefit pension liability 155,0001 418,0(h) 155,000 418,000 13 Tan8Sble flxed assets Plant and equipment Fixtures and Fittings Group Total Cost: At l April 2023 3,615,726 1,483,063 5,098,789 Additions Reclassification Disposals 86,151 95,181 17,136 195, 1811 18,6741 103,287 {8,674} At 31 March 2024 3,797,058 1,396,344 5,193,402 Depreciation., At l April 2023 2,522,215 1,057,728 3,579,943 CharRe for the year Reclassification On disposals 393.351 95,181 282,028 195.1811 18,674} 675,379 18,6741 At 31 March 2024 3,010,747 1,235,901 4,246,648 Net Book value: At 31 March 2023 1,089,914 421,512 1,511,426 At 31 March 2024 786,310 160,444 946,754 Page | 40 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS 13 Tanglble flxed assets (continued) Charity Plant and equipment Fixtures and fittings Total Cost: At l April 2023 3,603,038 1,402,706 5,005,744 Additions Reclassification Oisposals 86,151 95,181 17,136 {95.1811 18,674) 103,287 {8,6741 At 31 March 2024 3,784.370 1,315,987 5,ICrf),357 Depreciation: At l April 2023 2,513,124 981,193 3,494,317 Charge for the year Reclassificatlon On disposals 391.263 95,181 278,205 195,1811 18,674} 669,468 (8,6741 At 31 March 2024 2,999,568 1,155,543 4,155,111 Net Book value: At 31 March 2023 1,089,914 421,513 1,511,427 At 31 March 2024 784,802 160,444 945,246 14 Flxed asset investments Equity in subsidiary undertaking Charlty Total Cost: At l April 2023 and 31 March 2024 Carrying amount.. At 31 March 2024 At l April 2023 Investment5 in group undertakings are measured at cost less impairment on the basis that they represent shares in entities that are not publicly traded and the fair value cannot otherwise be measured reliably. The charity's equity investment in subsidiary undertaking is a 100% holding in the ordinary share capital of Kirklees Active Leisure Trading Limited, a company incorporated in England & Wales (company number 4132866). The charity holds 2 shares of £1 each, these are the only shares allotted, called up and fully paid. Page | 41 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS Kirklees Active Leisure Trading Limited operates all commercial trading activity as fundraising in support of the charity. A summary of the trading results is shown below: 2024 2023 Turnover Cost of sales 310,468 {119,5411 279,949 1113,6851 Gross profit 190,927 166,264 Administration expenses Management charge paid to Kirklees Active Leisure Other operating income Interest receivable & similar Income {135,7681 118,8581 1134,8951 120,8741 1,485 465 Net proflt Deed of gift to Kirklees Active Leisure Tax on profit on ordinary activities 37,786 134,0001 -942 10.960 117,4001 1,297 15, 1431 The assets and liabilities of the subsidiary were.. Assets Liabilities 85,908 185,579) 116,237 1118,7521 Total net a55ets 329 {2,5151 Aggregate share capltal and reserves 329 {2,5151 IS Stock5- Group and Charity Group 2024 Charity 2024 Group 2023 Charity 2023 Consumables Goods for resale 5,032 20,382 5,032 20,382 25,414 25,414 All stock held is for use to further the charitvs actlvities or for resale. 16 Debtors Group 2024 Charity 2024 Group 2023 Charity 2023 Trade debtors Amounts owed by subsidiary Other debtors Prepayments Accrued income 146,023 146,023 60,890 128,554 88,018 87,635 4,071 85,571 28,028 3,305 195,827 83,293 85,571 28,028 194,027 83,293 263,693 320,512 410,979 452,973 Page142 KIRKLEES AcfivE LE15URE14331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS 17 Creditors: amounts falling due within one year Group 2024 Charity 2024 Group 2023 Charity 2023 Bank loans and overdrafts Trade creditors Amounts owed to subsidiary Other tax and social security Other creditors Accruals and deferred income 912 192,716 544,067 540,4(X) 44,418 200,087 334.313 1,705,420 185,816 42,983 217,577 355,727 2,383.016 209,110 342,413 1,709,320 231,168 363,727 2,383,949 2,804,910 2.824,638 3,172,472 3,185,119 18 Leases- Group and Charlty Operatln8 leases - lessee Total future minimum lease payments under non-cancellable operating leases are as follows: Leases expiring., 2024 2023 Later than one and not later than five years Later than five years 20,056 20,056 19 Deferred taxatlon Group 2024 Charity 2024 Group 2023 Charitv 2023 The movement in the deferred tax provision during the year was: Provision brought forward Profit and loss account movement during the year 781 2,078 17811 11,2971 Prov15ion carrled fO￿ard 781 The provision for deferred taxation consists of the tax effect of timing differences in respect of: Group 2024 Charity 2024 Group 2023 Charity 2023 Fixed asset timing differences Tax Losses 877 (96} 781 Page | 43 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS 20 Fund reconclllatlon Unrestricted funds- Group Balance at 01-Apr-23 Balance at 31-Mar-24 Income Expenditure Gainslllossesl Unrestricted Designated funds 1,375,232 17,467,482 117,197,391) 2,910,0(K) 4,555,323 1,375,232 17,467,482 117,197,391) 2,910,0th) 4.555,323 Unrestrlcted funds- Charlty Balance at 01-Apr-23 Balance at 31-Mar-24 Income Expenditure Gains/llossesl Unrestricted Designated funds 1,377,749 17,208,387 116.941,1401 2,910,000 4,554,996 1,377.749 17,208,387 {16,941,1401 2,910,000 4.554,996 Restricted funds - Group and Charlty Balance at 01-Apr-23 Balance at 31-Mar-24 Income Expenditure Gains/{1055es) Restricted 135,507 45,886 137,5531 143,840 Fund descriptions Unrestricted funds- Group and Charity The unrestricted funds are available for use at the discretion of the trustees In furtherance of the general objectives as detailed in the Trustees, Report. b) Designated funds- Group and Charity None Restricted funds- Group and Charity Restrirted funds have been established upon receipt of funds to cover the costs of specific project expenses. 2023 income is made up of small some sports grants Page | 44 KIRKLEES AcfivE LEISURE {4331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENT5 21 Analysis of net assets between funds Unrestricted Group Charity Restricted Group Charitv Total Group Charity Fixed assets Investments Net current assets Creditors: more than one Year Pension liability 946.754 945,246 946,754 945,246 184.569 185,748 143,840 143,840 328,409 329,588 3,424,000 3,424,00) 3,424,000 3,424,0 Total 4,555,323 4,554,996 143,840 143,840 4,699,163 4,698,836 22 Reconclliatlon of net Income/lexpenditure> to net cash flow from operatlng activities Group 2024 2023 Net {expenditurel for the year 279,366 12.918,4121 Interest Ireceivablel/payable Depreciation of tangible fixed assets Profit on disposa l of fixed assets Corporation tax paid Pension funding {Increasel/decrease in stock {Increaselldecrease in debtors Increaselldecreasel in creditors 1132,966} 675,379 134, 121) 171,2601 586,133 193,6001 272,000 2,534,000 25,414 592 147,286 19,292 1368,374} 11,411,757) Net cash flow from operatlng actlvitles 863,984 11,355,012) Charity Net lexpenditurel for the year 275,580 12,911,972) Interest Ireceivablel/payable Depreciation of tangible fixed assets Profit on disposal of fixed assets Pension funding {Increasel in stock {Increasel/decrease in debtors Increase/ldecreasel in creditors 113 1,4811 170,7951 669,468 578,694 134,1211 193,6001 272,000 2,534,00) 25,414 592 132,461 47,166 1360,4811 11.452,0661 Net Cash flow from operating activities 848,840 11,367,981) Page145 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS 23 Penslons and other post-retlrement beneflts Defined benefit pension plans The charity contributes to the West Yorkshire Pension Fund, a defined benefit pension plan for qualifying employees providing benefits based upon a combination of final pensionable pay and career average earnings. The pension plan is funded by the payment of contributions and assets of the plan are held in a separately administered fund. The most recent comprehensive actuarial valuation of the pension plan assets and the present value of the defined benefit obligation were carried out at 31 March 2022. The total credit/lcostl recognised in the period was as follows: 2024 2023 Contrlbutions Current service cost Past servi.ce cost Net interest expense Recognised in net expenditure 823,000 11,022,CNJOI 1128.0001 55,1)JO 1272,0001 716,OCKI 12,832,000) 1418,0001 12,534,000) Reco8ni5ed in other gains/llosses1 2,910,000 19,156,000 Total credit/lcostl reco8nised 2,638,000 16,622,000 Amounts recognised in the balance sheet were as follows: 2024 2023 Present value of funded obligatlons Fair value of plan assets 130,734,000) 34,158,1￿0 3,424,000 130,425,000) 31,211.OiJO 786,OiJ) Changes in the present value of the defined benefit obligations were as follows: 2024 2023 Opening defined benefit obligation Current service cost Past service cost Interest expense Actuarial {gains}110sS Contributions by scheme participants Benefits paid Closing def ined benefit obligation 30,425,OCK) 1,022,000 128,OC 1,387,000 11,665,000) 386,OLX) (949,000} 30,734,000 46.335,000 2,832,0(X) 1,251,0(Ki 119,930,OCK)} 413,000 {476,Crf)01 30,425,000 Page | 46 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS 23 Pensions and other post-retbrement benefits Icontinuedl Defined benefit pension plans Icontinuedl Changes in the fair value of the pension plan assets were as follows: 2024 2023 Opening plan assets Interest income Re-measurement gains on assets Contributions by charity Contributions by scheme participants Benefits paid Closing plan assets 31,211,000 1,442.0(X) 1,245,0(M) 823,000 386,000 1949,0001 34,158,000 30,499,000 833.OCh) (774,000} 716,000 413,000 1476,0001 31,211,000 The amount that each major class of pension plan assets constitutes of the fair value of the total plan assets was as follows: 2024 79.40% 8.50% 2023 80.80% 6.90% Equities Government funds Corporate funds Property Cash Other assets 4.20% 2.80% 1.80% 4.60% 3,30% 2.30% 3.30% 2.10% 100.00% 100.00% The return on plan assets was as follows: 2024 2023 Interest income Gain/lloss) on plan assets (excluding interest income) Total return on plan assets 1,442,000 1,245,000 2,687,000 833,000 1774.0001 59,TrJO The principal actuarial assumptions used were as follows: 2024 4.70% 3.75% 2.50% 2.50% 2.50% 2023 Discount rate Expected rate5 of salary increases Expected rates of pension increases Expected rate of inflation - RPI Expected rate of inflation - CPI 4.60% 3.85% 2.60% 2.60% 2.60% Page | 47 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS 23 Pensions and other post-retirement benefits (continued) Defined benefit pension plans (continued) The mortality assumptions used for longevity lin years) on retirement at age 65 are: 2024 2023 Retiring at the balance sheet date Males 21 24.2 21.6 Females Retiring in 20 years Males Females 24.6 22.3 25.2 22.9 25.7 Scheme liabilities would have been affected by changes In the assumptlons as follows: 2024 {7381 2023 17611 761 {7911 791 1611 61 Discount rate +0.1% Discount rate -0.1% Mortality assumption +1 year Mortality assumption -1 year Salaries +0.1% Salaries-O.l% 17991 768 {611 61 24 Related party transactions Information about related party transactions and outstanding balances is outlined below.. Outstanding balances Expenditure Stafflex Limited, a company controlled by a trustee Azure Consulting, a company controlled by a trustee Kirklees Stadium Development Ltd, whose company secretary is a trustee 22,C(Il 147,823 At 31 March 2024 177,524 At 31 March 2023 187,966 12,023 These transartions have been undertaken on norrnal commercial terms. Having reviewed the annual registrar of interests other reportable interests with a f inancial consequence are as follows: 0 £120 was received from Kirklees Youth Alliance for room hire. an organisation connected to A I Brown (CE) 0 £3.510,330 received from Kirklees Council, £269,435 of services purchased under service level agreements with Kirklees Council and payment made by KAL of £479,447 payment against financing charges. The Articles of Association allow the Council to appoint up to two Trustees. Trustees M S Thompson and M.S. Sokhal are Councillors for Kirklees Council and the appointed Council Trustees for KAL. Pa8e | 48 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS 25 Financial Commitments Financial Commitments to Kirklees Council 2024 2023 Outstandin8 contributions to facility improvements KAL Outstanding contributions to facility improvements KALT 3,639,593 5,034,592 15,Ch)O Pa8e149 KIRKLEES AcfivE LEISURE (43311651 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS ADDITIONAL INFORMATION The additional information, which comprises detailed charitable expenditure, has been prepared from the accounting records of the charity. While it does not form part of the statutory financial statements, it should be read in conjunction with them and the independent auditor's report thereon. Page150 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2024 NOTES TO THE FINANCIAL STATEMENTS DEfAILED CHARITABLE EXPENDITURE lincluding Governance Expenditure) 2024 2023 Staff costs Salaries Wages Teachers Self-employed instructors Indirect employee costs Current year pension charge 5,699,613 3,367,280 477,130 561,358 651,832 327,000 5,991,955 3,706,916 505,585 524,534 99,657 2,116,000 11,084,213 12,944,647 Transport costs 489,359 428,734 Premlses costs Repairs and maintenance Electricity Gas Water Energy savings works Other utility costs Rent Insurance Water treatment Non-recreational equipment Rates Other 938.975 106,822 1,450,434 150,664 2,359 185,143 175,456 3,035 195,083 92,905 114,545 59,840 33,412 252,178 194,602 248,896 3,035 121,836 102,758 115,557 35,082 29,094 250,998 2,147,655 2,715,054 Supplles and services Equipment Marketing IT Postage, printing and stationery Communications Resale items 135,642 151,681 359,630 27,596 24,576 121.836 669,468 310,075 190,094 319,479 33,554 27,019 106,825 578,694 F-I I Depreciation Kirklees Metropolitan Council finance charges Professiona l Fees Licences Financia I Irrecoverable VAT Other 479,447 278,125 186,022 18,622 495,422 39,964 479,445 282,809 173,825 429.635 612,352 71,974 2,988,031 3.615,780 Kirklees Metropolitan Council service level agreements 269,435 263,063 Total expenditure 16,978,693 19,967,278 Page | 51