KIRKLEES ACTIVE LEISURE FINANCIAL STATEMENTS 31 MARCH 2025 Company reglstration number: Registered charity number: 4331165 1091226 KIRKLEES ACTIVE LEISURE FINANCIAL STATEMENTS 31 MARCH 2025 CONTENTS Page Trustees, report Ilncludlng directors, report and strate8lc report) Statement of trustees, responsibllities 19 Independent auditor's report 20 Consolldated statement of financial activities {including income and expenditure account) 24 Charity statement of financial activities lincludin8 income and expenditure account) 25 Consolidated balance sheet 26 Charlty balance sheet 27 Consolidated statement of cash flows 28 Charity statement of cash flows 29 Notes to the flnanclal statements 30 Additional information 49 Detailed charitable expenditure Company registration number: Registered charity number: 4331165 1091226 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2025 TRUSTEES. REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORTI The Trustees, who are direttors of the Charity, present their annual report on the affairs of the Charity and the Group, together with the financial statements and auditor's report for the year ending 31 March 2025. The Trustees have adopted the provisions of the statement of recommended practice ISORPI "Accounting and Reporting by Charitie5" IFRS 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 AUOITORS Simpson Wood Chartered Accountants Bank Chambers, Market Street Huddersfield, HDI 2EW BANKERS Barclays Bank plc 17 Market Place Huddersfield, HDI 2AB STRucfuRE, GOVERNANCE AND MANAGEMENT Governlng Document Kirklees Active Lelsure I'KAL") was formed as a Company Lirnited by Guarantee, not having share capital 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 I'KALT"). The Charity is required to cornply with both the Companies Act 2006, the Statement of Recommended Practice "Accounting and Reporting by Charities" IFRS 1021 and has to meet general Charity Commisslon regulatlons, The Mernorandum and Articles of Association are the Charity's constitution. CHAIRPERSON D. Stephenson CHIEF EXECUTIVE A.1. Brown TRUSTEES S. Alderson Cllr. M.S. Thompson J.S. Fletcher F. Thornhill- oppointed 18 5eptember2024 M.T. Hudson Cllr. M.S. Sokhal P. Kemp .C. Stahelin- resigned 14 May 2025 S. Khela B. Uppal J.H. Lees- appointed ilh September 2024 /Reswned I" May 2025 th th Pa8el I KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2025 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 financelaccounlancv Education Sports and Leisure The Board is also entitled to appoint up to slx further indlviduals. Trustees retire by rotation in accordance with the Charity's Articles of Association. The Trustees give their time voluntarily and the only benefit they receive from the Charity is access to the KAL staff membership scheme, in line with all other volunteers working with KAL, allowing low cost access to the leisure facilities managed by the Trust, which is felt to be appropriate 8iven 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 policy, Memorandum and Articles 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 2024125 and is noted at each KAL Board meeting. Any reasonable expenses reclaimed by Truslees from the Charity are set out in the financial staternents. Trustee Induction and trainlng New Trustees undergo a detailed induction process. The Trustee Induction process includes: l. Briefings to Trustees regarding Their legal obligations under charity and company law The Memorandum and Artlcles of Association The Board and decision-making processes The Corporate Strategy and recent financial performance of the Charity The key staff of the Charity and their role in the organisation The sites managed by the Charity and the services provided by the Charity 2. Slte tours of the facilities operated by the Charity 3, Copies of key KAL policies 4. Signposting to the Charity Commisslon website and key items contained there 5. Attending KAL'5 Corporate Induction session; and 6. Undertaking a disCU55ion regarding Trustees, trainin8 needs, before agreeing how these can best be addressed. Trustees also receive an extensive information pack containing copies of the Memorandum and Artides 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. Trustees receive specif ic 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 Page | 2 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2025 TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) (Chartered Institute of Occupational Safety & Health) Managing Safely for Senior Executives course over recent years. At the annual Trustees half away day, in November 2024, the Trustees took part in workshops to help develop KAL'S new corporate strategy. The away day also featured senior staff from Kirklees Council meeting with the Board and outlining the Council's priorities and where KAL could support the delivery of these. Board performan¢e revlew 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 consldered and agreed by the Board at their Mav 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 workshops noted above undertaken at the KAL Trustees half away day. A Trustees skills audit was also undertaken with the result5 fed back to the Board at the half away day in 2023. The Chair of Trustees also meets with each of the Trustees annually on a 1-2-1 basis, where di5cusslon 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 guide the 1-2-1 discussions was updated as part of the 2023 8overnance review to ensure how to improve Board performance was discussed. Organisation The Board of Trustees, which has up to 12 members, administers the Charity. The Board normally 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 Trading Limited. Task & finish groups are also formed by the Trustees as necessary. A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the Charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the Trustees, for operational matters includin8- 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 a pproach 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 communitv Future Board recruitment will specif ically encourage applicants from under-represented groups. with additional support to applicants provided as necessary Page | 3 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) 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 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 2025, the KAL Board included 12 Trustees, five of which were female and three of which were Sikhs. KAL remains committed towards continuing to positively progress our approach towards being an inclusive employer, encouraging a workforce and Board of Trustees that reflect the demographic of the local community, Employment of dlsabled 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-trainin8 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. Monitoring to ensure 121's are undertaken on a regular basis and the quality / consistency of the 121 approach are also considered by the Charity's HR team. Regular team meetlngs take place, both at each KAL site and across the Head Office teams. The annual staff survey was again undertaken in Spring 2024, providing useful feedback to be considered and used to improve engagement with staff where possible. The staff survey included an overall staff satisfaction rating of 7.10, slightly lower, disappointingly, than the rating In 2023 (7.321, but still with 79% of staff recommending KAL as a good place to work, which remalns positive. Further staff roadshows were undertaken in June and November 2024, which were attended by a range of staff from across the organisation. providing the opportunity for staff to receive updates re8arding the Charity and to take part in workshop sessions. 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. 2024125 overall saw the organisation continue to stabilise, before moving forward, after the challenges of the previous year, when a range of factors, including a major in-year reduction in financial support from Kirklees Council, resulted in the closure of several sites managed by the Charity and the sad loss of c. 100 staff roles. Pa8el 4 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2025 TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) The end of year outturn position reported in these accounts is a very positive one given the transition that the Charity has been through. This has been due to the hard work and dedication of the Trustees and the staff of the Charity. Related Parties 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 Charitrfs Board, the Council does not have any control over the Charity. its assets or the manner in which it operates on a day-to-day basis. The Charit¢s wholly owned subsidiary, Kirklees Actlve Lelsure Tradin8 Limited I"KALf'}, was established to carry out non-charitable trading activities for the Charity. The company 8ift aids any surplus profits made to the Charity. In the year ending March 2025, KALT made a pre-tax profit of £62k12024: £38k pre-tax and gift aid profit) and made a gift aid payment back to the parent Charity of E62k12024: £34kl resulting in a £107 loss after the gift aid and tax on profit12024: £2,844 profit}. Objects and Artivltle$ The Objects of the Charity are: "To provide or ossist in the provision of focilities ond services for recreation or other leisure time occupation, primorily in Kirklees but 0150 in the wider orea, in the interests of positive sociol welfore for the public benefit. ond to promote ond protect the good physical and mental health and wellbeing of those per50n5 using such focilities ond services." The Objects of the Charity contribute to a range of charitable purposes, as outlined within the Charities Art 2OJ6, as follows. Cliai"Itable PLI rpose The advancement educatlon Exaniple of activity The Charity delivered the local school swimmin8 service lo 125 local schools Ic.5000 pupils) during 2024125. The new, more intensive programme introduced in 2021/22, with longer swim lesson sessions over fewer weeks, has proved to be successful, with positive outcornes continuing to be achieved across the key school swimming KPI'S. The service was fully reviewed during 2024, with the offer significantly enhanced and the cost to schools reduced to provide an excellent value for money offer, which continues to develop. The school swimming service has had to adjust Significantly due to the closure of local swimming pools, both permanent and temporary, with this continuing into 2024125 and the closure of the Scissett Baths & Fitness Centre wetside for a major refurbishment programme in December 2024. The site is now due to re-open by September 2025. KAL'S own learn to swim swimming lesson programme has stabilised and grown since 2023124, with 6126 young people benefitting from weekly swimming lessons in March 2025 (compared to 6,023 in March 20241. This number will hopefully of Pagel 5 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2025 TRUSTEES, REPORT IINCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) Charitable purpose - Exainple of activity increase further as the Scissett Baths sites re-opens in September 2025. KAL continued to provide a tennis coaching programme, offering tennis development opportunities for young people, with a partnership with the 3, party organisation We Do Tennis beginning to be developed to further enhance the offer for local people and due to commence in early 2025/26. All activities were again available to all groups of the local community, with pricing discounts provided via KAL'S Flexi-card scheme and the local Kirklees Passport scheme. KAL staff continued to undertake Workfor￿ development opportunities in a wide range of aspects, including health & safety. safeguarding, KAL'S corporate Induction, revlsed site inductions, equality, diversity & inclusion, conflict management, data protection, sexual harassment, etc., as well as further ongoing training for frontline staff and hi8her-level trainin8 provided for managers via the National Pool Managers and National Pool Supervisors Qualifications. Higher level apprenticeship programmes also continue to be completed bv some staff. KAL positively continued to progress our strategic direction as a preventative health & wellbeing provider, to encourage the inactive to be active and appeal to a wlder customer base. Several core products continued to be delivered, includin8 KAL'S 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 ernbed the healthy habit of being more physically active. Targeted demographlc approaches are in place for prelpost-natal women - "Moving Mums" and older people, where the range of KAL products suitable for these population groups are packaged together and promoted through a range of local agencies. Outcome data from the above products is being collected, with ongoing feedback positive re8ardin8 the Impact upon the health & wellbein8 of the individuals involved. KAL was also successful to be appointed as a delivery partner for a new, 5 year, "Active Together" prelpost-cancer programme, with Mid Yorkshire Hospital Trust and Wakefield Council and funded by Yorkshire Cancer Research. KAL continues to develop partnerships with both the University of Huddersfield and with Locala. the local health service provider, as well a5 working with other leisure operators acro55 West Yorkshire and through the Community Leisure UK ICLUKI network. Free fitness membership for Care Leavers and targeted other individuals continues to be provided. As above, lower cost access is available to the KAL sites for both The advancement of health The advancement citizenship and community development Pagel 6 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2025 TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORn Charita ble pu rpose Exaniple of activity KAL Flexi-card holders and for those eligible for the Kirklees Passport scheme li.e. the financially disadvantaged). The advancement amateur sport 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 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, Reductions continue to be provlded for 3, parties that hold appropriate quality marks to try to encourage these to be retained. Reducing C02 emissions 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 or8anisation and facilities operated. Energy pressures in particular for KAL'S swimming pool facilities continues to be a major challenge for the Charity which has added considerable strain to the Charity's financial position. 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. KAL'S support of the Uniform Exchan8e scheme, where collection polnts in KAL sites allow customers to pass to Uniform Exchange school uniforms to re-cycle, and of the local Forget Me Not Children's 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 Huddersf ield 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 ac￿55 to the leisure centres, with the ability for a plus I to support where required. The advan￿ment environmental protection or improvement The relief of those in need, by reason of youth, age, ill health, disability, financial hardship or other disadvantage Our strate8y for meetin8 our Charltable Purposes During 2024-25, KAL continued to operate under its Corporate Strategy 202(F2025, which set out our Vlsion, priorities, and actions for delivering our charitable objectives over the five-year period. In March 2025. the Trustees approved a new Corporate Strategy 2025-2030. which will take effect from April 2025. This updated plan builds on the achievements of the 2020-2025 strategy and responds to changes in our operating environment, including shifts in cornmunity needs, economic pressures, and Pa8e | 7 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2025 TRUSTEES, REPORT IINCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORTI the leisure sector landscape. KAL'S Vis ion "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 & wellbeing, encouraging new customer groups to make use of the sites and products the Charity provides. KAL identifies two headllne cha Ilenges withln its, corporate strategy By 2025 KAL will achieve a Customer Satisfaction Index score of 81 or more By 2025 KAL will have remained financially sustainable Unfortunately. KAL did not manage to achieve the first of these challenges, with a customer satisfactlon index score of 75 for 2024125. While disappointin8, this remains a reasonable figure given the major disruption to the Charity and our customers over the last few years. Given Covid-19 and its, impact upon KAL'S finances. the conslderably Increased energy prices, ongoing major increases in staffing costs, high inflation and significant reductions in the fundin8 SUPPOrt provided by Kirklee5 Council, then it has been challenging for KAL to achieve the second headline challenge and ￿maIn financially sustainable. However, following the major rationalisation of the organisation this has now been accomplished and the Charity has not only survived, but is now in a strong position to grow again and move fonvard. KAL remains confident that the new operating model developed is a more viable one given the reduced level of local authority f inancial support, with expenditure costs Significantly reduced and income levels proportionately retained and, where possible, grown. The Strategy has 3 Aims.. l. Puttlng People Flrst Iservicel 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 thelr activity goals and make the most of their leisure time, within a high quality, safe environment. 2. Helplng 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 providing 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 Business Excellence As a key anchor institution, KAL supports the Kirklees Page18 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2025 TRUSTEES, REPORT IINCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) (Operations) economy as a major employer of local people, especiallv 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, ensuring robust financial planning, resource, sustainability and energy management, investing in the local leisure facilities we look after. Ensurlng our work dellvers our Strateglc Alms 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. We refer to the Charity Commission's general 8uidance on publlc beneflt when revlewin8 our Strate8lC 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 actlvltles dellver 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 healthy recreation and sport within facilities available for the general public. Who used and beneflted from our servlces? The facilities operated by the Charity received more than 2.34m million customer visits from acr05S the entire community spectrum of Kirklees during 2023124, as increase of 120k customer visits from 2023124, a positive achievement and an indicator of the re-growth of the Charity following the challenges of the previous few years. 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 activitie5 available across the KAL managed sites and to receive the associated mental and physical health benefits of such involvement. Groups partlcularly targeted to use the Charity's facilities Include the following: Older people {60+) Young people lup to a8e 161 Women and 8irls Those with a disability The financially disadvantaged There are no restrictions on who can make use of the facilities provided by the Charity. Fees are charged for rnost activities that take place within the Charity'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 rates continue to be made available and actively promoted to try to encourage participation and ensure that the seNices provided are affordable to everyone. A key Page | 9 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2025 TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) 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 Charity's primary activities are the provision of sports 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 rnain 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 swlmming squads and the KAL Swim Performance scheme. The swimrnin8 pools sites are also used by several local aquatlcs clubs, Includlng swimmin8, triathlon and canoe clubs. Fltness Suites, which are accessible to all and offered at a range of pricing levels. making them affordable for the majority of the local communitv 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, includin8 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 artivity products at Batley 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 8roups to make use of the sites looked after by the Charity. In addition, through the separate subsidiary company, Kirklees Active Leisure Trading Limited {KALT), a catering and vending service is provided by 3rd parties comrnissioned by KALT. KALT also directlv provides a café at one of the Charity's facilities. The Charlty is committed to equality of opportunity where possible and works closely wlth local networks within the statutory and voluntary & community sertors to ensure that there is a co- ordinated, well-informed approach taken. After a challenging relationship between KAL and Kirklees Council during 2023124, the partnership improved again during 2024/25, as the Charity returned to an improved financial position and re- adjusted after the difficulties related to the closure of several sltes, the loss of a considerable number of staff and the stabilising of the KAL offer across the remaining 8 sites provided by the Charity. KAL also continues to have several positive partnerships in place at a local, regional and national level with a range of bodies including the local VCSE infrastructure services organisation Third Sector Leaders (Kirklees), the local VCSE organisation for local youth groups Kirklees Youth Alliance, the University of Huddersfield. Locala (local healthcare provider) and fellow charitable leisure trusts across the Yorkshire and wider North East region. Strong relationships are also maintained with several Page | 10 KIRKLEES ACflVE LEISURE (4331165) 31 MARCH 2025 TRUSTEES. REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) National Governing Bodies of sport and the variety of local sports clubs and other groups which use the KAL managed sites. 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 facilitv 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. Consultatlon KAL completed a further annual customer survey in April 2024, with over 2,700 customers taking part. Headline results were, positively, up from the previous year- Overall customer satisfaction was rated as 76.4 {compared to 75.1 in 2023 and 77.1 in 20221 Value for money was rated 78.9 (compared to 75.8 in 2023 and 78.6 in 20221 However, there remains a need for KAL to continue to focu5 upon providing excellent custorner service and continuing good value for the Services provided to try to improve upon this position in future years. As well as the annual customer survey, the Charity also receives ad hoc feedback via our various communication channels, as well as daily Net Promoter Score INPSI feedback from customers, with further feedback approaches, including mystery visitors and NPS for KAL'S Yeahl Days Out attractions looking to be introduced. Beneflts of participation There are a range of signif icant and reco8nised beneflts from participating in the activities provided by the Charity. These include: Health beneflts: The primary benef It of taking part in the activities provided by the Charity relates to improving the health, wellbeing and the quality of life of individuals. Taking part in regular positive exercise has been shown to be a major factor to contributing towards reductions in heart disease, levels of obesity, the risk of cancer and type 2 diabetes, preventing high blood pressure, delayin8 the progression of osteoporosis and as part of the treatment process for cystic fibrosis. In recent years there has been an evidenced link between exercise and reducin8ldelaying the effects of dementia. It is also recognised that physical activity has a major positive im pact on an indlvidual's mental wellbeing. improvin8 their self-confidence and self-belief and reducing their levels of stress and anxiety. Educat5on: 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 cou rses are held by the Charity on regular basis, both for the Charity's own staff and external attendees. Lifeguard; safeguarding; equality, diversity & inclusion. manual handlin8: and other related training is also provided to the Charitws own staff. Community cohesion: The Charity operates sites across the Kirklees district, serving an ethnicallv and economically diverse population, with a wide cross-section choosing to participate in sport and wider physical activity within the various leisure centres. However, given the previous closure of several of the Charit¢s facilities since December 2022, the ability of the Charity to impact on local community cohesion in certain areas of Kirklees has significantly reduced. Pa8e 111 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) 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 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 of several KAL sites is likely to have reduced the amount of community development that KAL is able to contribute to. Strategic Report Achievement, Performance and Challenges 2024125 was a period of significant stabilisation, recovery and growth for the Charity following the considerable challenges and changes of the previous 24 months. While the closure of several sites and certainly the loss of a significant number of colleagues was a very difficult period for KAL, the Charity has managed to readjust and focus upon the remaining Sites. re- growin8 the organisation to focus again on providing high quality community leisure provision for the local community. The Charity is now becoming more financially viable than previously, with a strong customer base retained which is now more concentrated across the remaining sites. The relocation of the head office for the Charity to Huddersfield Leisure Centre has been an especially positive move, brin8in8 the corporate teams together with the largest site based staff team and helping to increase the appreciation and understanding of both groups, while also removin8 any head office rental costs which had previously been considerable. 2024125 saw the Charity close with a significant surplus position following very strong performance in several areas and fitness memberships in particular, with investment continuing into the KAL sites and the Charity now in a position to enhance this further given the position in terms of financial performance and reserves. Again, this reflects the talent and cornmitment of KAL'S Trustees, senior staff team and also of the staff across the head office and site teams. Alm: Puttln8 People Flrst o Fitness memberships.. a key element of KAL'S delivery and the largest income stream for the Charity, with this aspect increasin8 from 18,853 at the end of March 2024 to almost 20k (19.9391 by the end of March 2025, with this growth helping to drive much of the success of the Charitv. Swim lessons: 6,126 swim lessons were taking place at the end of 2024125, increasing from 6,023 the previous year, but below previous numbers. This was partly due to the extended refurbishment of the Scissett Baths & Fitness suite wetside facility {see below). Hopefully when the site re-opens the additional swim lesson capacity will help KAL return to the higher levels enjoyed in previou5 years. o Health & wellbeing products- while much smaller numbers were involved, these relatively new product5 were protected by KAL, despite their need for a financial subsidy, due to the important role they provided in supporting KAL'S continuing strategic direction as 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 actually Brew during 2024125 with now 4,892 individuals involved, which was positive Browth from the 3618 in 2023124 and more than double the numbers at the end of 2022/23 {2173 in March 2023). o The CharitWs golf course Bradley Park - also had yet another very strong year, achieving the highest income figure for a 12 month period since the Charity began managing the Page | 12 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2025 TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT AND STRATEGIC REPORT) facility and again breaking the record of the previous year. o Over 2.34m customer visits took place at KAL sites during 2024125, an increase from 2.22m the previous year. o Almost 52% of the staff are u25, with the Charity continuing to be one of the largest employers of young people in the local area. Aim: Helping More People Become More Active 0 £500k+ capital project underway at Scissett Baths & Fitness Suite, improving the wetside of the facility and undertaking a range of essential mechanical & electrical works which should safeguard the site for the foreseeable future. o On80ing development of the Charity's fitness membership partnership with the Universitv of Huddersfield, whereby thelr students and staff can receive low-cost access to the Charitvs sites, helping to encoura8e them to take part in positive health & wellbeing activity. Alm: Oellverlng buslness excellence o Electricity consumption reduced by a further Il% in 2024/25 compared to 2023124. Gas decreased slightly by 1% in 2024125 compared to 2023124. These InC￿aSe$ reflect the introduction of further invest-2-save schemes across the sites and to the development of a 5tron8 energy saving culture across the staff teams, as well as the replacement of key plant items with more efficient options. Pa8e113 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORT) Financlal Review The table below summarises the group's financial performance: 2024125 2023124 INCOME From customers From customers of subsidiary 12,839 318 13,157 13,988 310 14,299 Investment income Funding by Kirklees MC Other funding 114 1,221 133 3,036 46 14,492 17,514 EXPENDITURE Staff costs, including self-employed instructors Other costs incurred by KAL Costs incurred by KALT 9,445 4,513 256 14,214 10,757 5,931 274 16,962 EXCESS OF EXPENDITURE OVER INCOME, BEFORE THE EFFECTS OF THE DEFINED BENEFIT PENSION SCHEME 277 551 EFFECTS OF THE DEFINED BENEFIT PENSION SCHEME Current year charge Re-rneasurement gain / Ilossl (2721 3,040 2,768 13,429) 13,424} NET MOVEMENT IN FUNDS BEFORE TAX 13,147} 3.319 Corporation Tax charge on KALT NET MOVEMENT IN FUNDS AFTER TAX 10) 13, 147} {11 3,188 FUNDS BROUGHT FORWARD FUNDS CARRIED FORWARD 4.699 1,552 1,511 4,699 Comprising.. Charity reserrfes, excluding pension liability Subsidiary resenies Total Funds, excluding pension liability 1,552 1,275 1,552 1,275 Pension surplus l {deficit)- not reco8nised in 2025 Total Funds 3,554 4,829 1,552 The group's income for the year was £14,491,715 12024: £17,513,368), of which £12,839,140 {2024: £13,988,181) was generated through charitable trading activities. The trading subsidiary contributed a further £317,50512024: £310,468) which was largely café customer generated income. Page | 14 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2025 TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) Total resources expended amounted to £14,214,243 {2024: £16.962,ChJ21 including costs incurred by the trading subsidiary of £256,362 (2024: £274,167}. Before the effetts of Corporation Tax on the trading subsidiary. net movement in funds for the year totalled an increase of £282,472 (2024.. increase of £3,189,366) and after the estimated tax charge of £23112024: £9421, a total of £282,42112024: an increase of £3,188,424) has been added to the unrestricted funds. The wholly owned subsidiary, Kirklees Active Leisure Trading Limited. recorded a net profit before taxation and before gift aid of £62,37412024: £37,786). Investment powers and pollcy 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, securltles or property as may be thought fit. Reserves pollcy The Trustees reviewed the Charity's reserves policy at their meeting held on 16th July 2025. Following an updated assessment of the financial and operational risks facing the Charity, the Trustees concluded that it remains prudent to hold an unrestricted general reserve to ensure the Charity can continue its activities in the event of unforeseen circumstances or disruptions. Based on this assessment, the Trustees have determined that a tar8et level of general reserves of £987,000 should be maintained. This level is considered appropriate to provide financial stability and support the effectlve and uninterrupted delivery of the Charity's services. Although the actuarial valuation indicates a pension scheme surplus of £10.647m, this has not been recognised in the financial statements in accordance with FRS 102. As the Charity does not have an unconditional right to a refund and is not entitled to reduced future contributions, an asset ceiling of £nil has been applied (see Note 221. The Charity reports total funds of £4,967,344 at 31 March 2025 {2024: £4,699,163). Excluding any pension scheme surplus, the general unrestricted reserve stood at £1,408.344 at the end of 2024/25 {2024: £1,130,996), Restricted funds totalled £143,840 at the year end12024: £143,840}. As at 31 March 2025, the Charity held £421,344 in unrestricted free reserve$12024.. £230,996). Free reserves are defined in Ilne wlth Charity Commission guidance as unrestricted funds, excluding those whlch can only be realised by disposing of fixed assets held for the Chariws own use. The Trustees remain committed to improving the level of the general reseDie in order to meet the target level and to increase the funds available for the ongoing development of the Charity's facilities. Summary of future plan5 Following KAL'S resurgence from the challenging period of major financial reductions from our key partner Kirklees Council. the closure of several sites and the sad loss of a large number of staff, the Charity has now returned to a much more positive position, with an excellent remaining group of sites and a committed, capable and talented staff and Trustees group keen to continue to bring the Charity forward. KAL'S key product areas- fitness memberships, swim lessons, school swimming, Yeahl Days Out attractions and, increasing the Charity's health & wellbeing offering collertively provide local people with a range of attractive Pa8e | 15 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2025 TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) opportunities to be more active. The ongoing capital re-development of the Scissett Baths & Fitness Centre site should lead to a much improved and robust facility. which will hopefully attract in new customers, while KAL is also keen to invest capital back into the customer facing areas of the provision, whether changing room refresh projects, improvements to the Yeahl Days Out products or ensuring that studios and fitness suites are kept up-to-date with the latest equipment. Some of the sites continue to present major challenges in terms of the poor quality of their build and KAL will continue to work with Kirklees Council colleagues to raise these matters, consider options and ensure that issues are addressed. KAL continues to support Kirklees Council with 3 sites which have closed/ are operating on much reduced hours, with Deighton Sports Arena now agreed to close, but with the other 2 facilities continuing to have to be closely monitored for site safety & security issues. The position of both the UK and its, economy overall and the financlal I political position of Kirklees Council both impact Si8nificantly upon KAL. The UK econorny remains challenging given the huge agenda Ihe current government are trying to address, which includes the significantly changed international picture given the ongoing conflicts in the Ukraine and the Middle East and the unpredictability and more isolationist approach provided by the USA. The retirement of KAL'S Client Manager within the next 12 months is a major issue in itself given the level of understanding of KAL and the support provided by the Client Manager when promoting KAL'5 Posltion with her Council colleagues. It remains likely that the level of financial support currently generously provided by the Council to KAL will reduce over the coming years as KAL'S own financial position hopefully continues to improve. KAL will seek to work with the Council to ensure that this reduction in financial support is a gradual one, allowing the Charity to adapt and identify future income / expenditure savings as necessary. Rlsk Management and Financial Instruments The Trustees continue to review the major risks to which the Charlty is exposed, particularly those related to the operation and finances of the Charity. The Corporate Rlsk Re8iSter is reviewed on an approximately six-monthly basis by the main KAL Board, wlth any new and increasing risks hi8hli8hted, as well as the miligating actlon being proposed to address these. The Trustees have considered the appropriate policies, procedures and systems to mitigate the Charity's exposure to the identified major risks where they can. As of the KAL Board meeting in March 2025, the rnajor corporate risks facing KAL were identified as follows: Ref Rlsk Comment Energy management While previously a major pressure, it was considered that this aspect was now a reduced risk due to new energv contracts and lower pricing being in place, with the proposal to merge thi5 aspect with the overall "financial viability" risk identif led below (Risk 101. This risk reflected a nurnber of IT matters that had arisen prior to the Board meeting, with mitigating actions since taken to improve the position. IT systems failure/ breach Page | 16 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) Ref Rlsk KC financial position Comment While this did appearto be improving there was still a need for caution given the ongoing level of overspends and the increasing major expenditure pressures across Adult Social Care and Children's Services in particular. Government National Living Wage {NLW} and, as of April 2025 National Insurance as well, continue to increase and place the Charity with a further financial pressure. There is also. however, a need for KAL to retain talented staff and to attract new good quality staff where necessary. KAL'S improved financial position has meant this risk is easier to manage. This element dropped. unsurprisingly, during the period when KAL was looking io reduce the number of sites provided and lower staffing levels. Hopefully wlth the more stable position of the charity, this is something that will improve over the comin ear. The emergence of temporary swimming pools that could be located within school grounds was identified as a major concern for KAL, with several schools opting for this option on financial grounds. KAL'S school swimming product was reviewed and value added where possible, as well as cost reductions introduced to hopefully prevent further schools leavin the programme. Some projects, notably the Scissett Baths & Fitness Centre capital scheme were over programme and likely to 80 over budget, which was frustrating for KAL and required regular engagement with the Council to try to move matters forward. Some Yeahl Days Out products under-performed in 2024125 and need to be carefully monitored to ensure the products improve during 2025126. The YDO partles product does appear to be stron and worth continuing to promote. IT issues in early 2025 impacted negatively upon some customers. but with the matters improved through ongoing work from KAL'S IT team and our external suppliers. The position has now significantly improved with this aspect, as illustrated with the financial performance for 2024125, However, there is now a need to consider and agree how best to make use of KAL'S financial resources and to begin to cor15ider the position at the end of the agreement with the Council in 2032. Increased risk as cost pressures continue to ensure that required checks, trainin& etc are undertaken. There continue to be a wide range of large and small operators that compete with KAL across the Charity's product range. However, there are a number of unique aspects which support KAL to differentiate the KAL offer as distinct from others. Salary pressures Low staff morale School Swimming Major capital risks Business plans do not achieve objectives Dissatisfied customers io Financial viability of KAL li Major incident {e.g. H&S incident, fire. terrorist attack, etc.) Competitor5 opening up in the local area and Market Management in mitigation 12 Pa8e | 17 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 TRUSTEES. REPORT IINCLUDING DIREcfoRS' REPORT AND STRATEGIC REPORT) 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 Charl￿$ 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 managing other risks applicable to the financial instruments concerned are 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 mana8ed by the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts fallln8 due. Audltor The Charity's Auditorfs were consldered at the 2024 AGM and Simp50n Wood were reappointed to audit KAL for the 2024125 financial year. This Trustees, Report, including the Strategic Report, was approved by the Board on 17th September 2025 and signed on its behalf by: • £k hL)IVCn D Stephenson Chair of the Trustees Page | 18 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 STATEMENT OF TRUSTEES, RESPONSIBIUTIES 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 financial year. which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for the year. In preparing these financial staternents, the Trustees are required to: select sultable accounting policies and then apply them consistentlv; observe the methods and prlnciples 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 material departures disclosed and explained in the financial statements; prepare the financial statements on the goin8 concern bas15 unless It is inapproprlate to presume that the charitable company will continue in operation. The Trustees are responsible for keeping proper accountin8 records that disclose with reasonable accuracy at any time the financial posilion 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 is 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. Page | 19 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2025 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KIRKLEES AcfivE LEISURE Opinion We have audited the financial statemenls of Kirklees Active Leisure {the 'parent charitable company,) and its subsidiaries (the 'group'l for the year ended 31 March 2025 which comprise the group and parent charitable company: statement of financia l activities. the balance sheet; cashf low statement and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financia l Reporting Standard 102 The Finonciol Reporting Standord opplicoble 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 2025 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 Practice. have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance wlth International Standards on Auditin8 IUKI IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'5 responsibilitiesfor the audit offinonciol statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, includin8 the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suff icient and appropriate to provide a basis for our opinion. Concluslons relatlng to golng concern This year as per the statement of financial activity a surplus was incurred during the yea r both at a group and company level, prior to reco8nisin8 the pension movement. Both the group and the company ended the year with a surplus of cu rrent assets compared to current liabilities. The trustees, assessment of 80in8 concern and their rationale for preparing the financial slatements on that basis is set out at note Ilq} on pa8e 34. In auditin8 the financial statements, we have concluded the trustees, use of going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any materlal uncertainties relating to events or conditions that, individually or collectively, may cast doubt on the group 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. Our responsibilities and the responsibilities of the trustees with respect to going concern are descrlbed in the relevant sections of this report. Other infomlation The other information comprise5 the information included in the annual report, including the truslees, report, other than the financial statements and our auditorfs report thereon, The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is Page120 KIRKLEES AcfivE LEISURE {4331165) 31 MARCH 2025 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KIRKLEES AcfivE LEISURE materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the f inancial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Oplnlons on other Matters prescrlbed by the Companles Art 2006 In our opinion, based on the work undertaken in the course of the audit: •the information given in the tru5tees' report, which includes the directors. report prepared for Ihe purposes of company law, for the flnancial year for wh ich the financial statements are prepared is consistent with the financial statements. and •the directors, report included within the trustees, report has been prepared in accordance wlth appllcable legal requirements. Matters on whlch we are requlred to report by exception In the light of the knowledge and understandin8 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 report) included within the trustees, report. We have nothing to report in respect of the followin8 matters in relation to which the Companies Act 2006 requlre us to report to you if, in our opinion: adequate and proper accounting 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 with the accountin8 records and returns,. or certain disclosures of trustees, rernuneralion specified by law are not made; or we have not received all the information and explanations we require for our audit, Responsibilltles of trustees As explained more fully in the statement of trustees, responsibilities, the trustees (who are also the directors of the charltable company for the purposes of company law) are ￿sponSible for the preparation of the financial statements and for bein8 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 financia I statements, the trustees are responsible for assessin8 the group's and parent charitable company's ability to continue as a going concern, disclosing, a5 applicable, matters related to goin8 concern and usin8 the going concern basis of accounting unle55 the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Auditorfs responslbllltles for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 IUKI will always detect a material misstatement when it exists, Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate, they Page | 21 KIRKLEES AcfivE LEISURE (433116S) 31 MARCH 2025 INDEPENDENT AUDITOR'S REPORTTOTHE MEMBERS OF KIRKLEES AcfivE LEISURE could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design prO￿d￿reS 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. Extent to which the audlt was considered capable of detecting irregularltles Includlng fraud Our approach to identifying and assessing the risks of material misstatement in respect of irre8ularilies, including fraud, and instances of non-compliance with laws and regulations was as follows: 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 Att 2011. Charities (accounts and Reports) Regulation 2008, Charitles SORP 2019, Companies Act 2006. data protection and anti-bribery legislation; we assessed the extent of compliance with the laws and regulations identified above throu8h making enquiries of management and inspectin8 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 and parent charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alle8ed fraud; considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and re8ulations and. performed analytlcal procedures to identify any unusual or unexpected relationships. To address the risk of fraud through management bias and override of controls, we: tested journal entries to identify unusual transactions; assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and; investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures 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. Material 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. Page122 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KIRKLEES ACTIVE LEISURE A further description of ou r responsibi lities for the audit of the financial statements is located on the Financial Reporting Council's website at.. http://www.frc.org.uklauditorsresponsibilities. This description forms part of our auditorfs report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the oplnions we have formed. Danlel McAlllster FCA (5enlor Statutory Audltor) For and on behalf of Slmpson Wood Umlted Chartered Accountants Statutory Audltor Bank Chambers Market Street H uddersfield HDI 2EW Dated.. 17 September 2025 Page | 23 KIRKLEES AcllvE LEISURE14331165) 31 MARCH 2025 FINANCIAL STATEMENTS CONSOUDATED STATEMENT OF FINANCIAL AcfiviTIES (including Income and Expenditure Account) 2025 Unrestrlcted Restrlcted funds Funds 2024 Notes Total Total Income and endowments from: Charitable actlvities Other trading activities Investments Other 12,839,140 317,505 113.910 1,221,160 12,839,140 317,505 113,910 1,221,160 13,988,181 310,468 132.966 3.081.753 Total income 14,491,715 14,491,715 17,513,368 Expendlture on: Raising funds Charitable activities 256,362 13,952,881 256,362 13,952,881 274.167 16,959,835 Total expendlture 14,209,243 14,209,243 17,234,(X)2 Net Income/(expenditure} 282,472 282,472 279,366 Other reco8nised 8alns/llossesl: Re-measurement 8ainllloss) on defined benefit pension scheme 22 13,429,000) 13,429,000) 3,040,000 Net movement In funds before tax {3,146,5281 13,146,528) 3,189,366 Corporatlon tax char8e on subsldlary 12311 1231) 1942) 19 Net movement In funds after tax {3,146,7591 13,146,759) 3, 188,424 Reconcillation of funds: Total fund5 brought forward 19 4,555.323 143,840 4.699,163 1,510,739 19 Total funds carried forward 1,408,564 143,840 1,552,404 4,699,163 All income and expenditure derive from continuing artivities. The statement of financial activities includes all gains and1055es recognised during the year. Pa8e124 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 FINANCIAL STATEMENTS CHARITY STATEMENT OF FINANCIAL ACTIVITIES Ilncludlng Income and Expendlture Account) 2025 un￿stricted Restrlcted funds Funds 2024 Notes Total Total Income and endowments from: Charitable actlvities Other trading activities Investments Other 12,839, 140 81,996 112,679 1,221,160 12,839,140 13,988,181 81,996 52,858 112,679 131,481 1,221,160 3,081,753 Total Income 14,254,975 14,254,975 17,254,273 Expendlture on.. Charitable activities 13,972,627 13,972,627 16,978,693 Total expendlture 13,972,627 13,972,627 16,978,693 Net In¢omellexpenditure) 282,348 282,348 275,580 Other recognised gains/(losses): Re-measurement gain/llossl on defined benefit pension scheme 22 {3,429,0001 13,429,000) 3,040,000 Net movement In fund5 {3,146,6521 13,146,652} 3,315,580 Reconclllatlon of funds: Total funds brought forward 19 4,554,996 143,840 4,698,836 1,513,256 19 Total funds carrled forward 1,408,344 143,840 1,552,184 4,698,836 All income and expenditure derive from continuing activities. The statement of f inancial activities includes all 8ains and losses reco8nised du ring the year. Page | 25 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2025 FINANCIAL STATEMENTS CONSOUDATED BALANCE SHEEf AS AT 31 MARCH 2025 Notes 2025 2024 Flxed assets Tangible assets 13 824,720 824,720 946.754 946,754 Current assets Debtors Cash at bank and in hand 15 374,128 3,060,040 3,434,168 263,693 2,869,626 3,133,319 16 Credltors: amounts falling due within one year Net current assets (2,706,484) 727,684 12,804,910) 328,409 Total assets less current Ilabllltles 1,552,404 1,275,163 17 Credltors: amounts falllng due after more than one year 18 Provlslon for Ilabllltles Net assets excludin8 pension Ilablllty 1,552,404 1,275,163 22 Deflned benefit pension liabillty Net (Ilabilltles) 3,554,OCN) 4,699,163 1,552,404 Charity Funds Unrestricted funds excludin8 pension deficit Charity Trading Subsidiary Desi8nated funds Total unrestrlcted funds before penslon deflclt 1,408,344 220 1,131,323 327 1,408,564 1,131,323 22 Deflned beneflt penslon surplus (not recognised) Total unrestrlcted funds 3,554.0 4,555,323 19 1,408,564 19 Restricted funds 143,840 143,840 Total charity deflclt 1.552,404 4,699,163 The financial statements were approved and authori5ed by the Board on 17th September 2025. The notes on pages 30 to 48 form part of these financial statements. Signed on behalf of the board of trustees D Stephenson- hair of the Trustees Page | 26 KIRKLEES AcfivE LEISURE14331165) 31 MARCH 2025 FINANCIAL STATEMENTS CHARITY BALANCE SHEEf AS AT 31 MARCH 2025 Notes 2025 2024 Fixed assets Tangible assets Investments 13 14 824,720 945,246 824.722 945,248 Current assets Debtors Cash at bank and in hand 15 445,527 2,984.546 3,430,073 320,512 2,833,714 3,154,226 16 Credltors: amounts fallin8 due within one year Net current assets 12,702.6111 727,462 12,824,638) 329,588 Total assets le55 current Ilabllltles 1,552,184 1,274,836 17 Credltors: amounts falling due after more than one year Net assets excludlng penslon Ilablllty 1,552,184 1,274.836 22 Defined benefit penslon Ilablllty Net (Ilabllltles) 3,554,000 4,698,836 1,552,184 Charlty Funds Unrestricted fu nds excluding pension deficit Designated funds Total unrestricted funds before pension surplus 1,408,344 1,130,996 1,408,344 1,130,996 22 Defined benefit pension surplus (not recognlsed) Total unrestrlcted funds 3,554,OCIJ 4,554,996 19 1,408,344 19 Restrlrted funds 143,840 143,840 Total charity surplus 1.552.184 4,698,836 The financial statements were approved and authorised by the Board on 17th September 2025. The notes on pages 30 to 48 form part of these financial statements. Signed on behalf of the board of trustees •goA Ilxh D Stephenson - Chair of the Trustees Page | 27 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2025 FINANCIAL STATEMENTS CONSOLIDATED CASH FLOW STATEMENT forthe year ended 31 MARCH 2025 2025 2024 Notes 21 Net cash flow from operatin8 activities 250,376 863,984 Cash flow from investing actlvltles Payments to acquire tangible fixed assets Receipts from sales of tangible fixed assets Interest received 1219,7121 45,840 113,910 159,962) 1103,287) 34,121 132,966 63,800 Net cash flow from Investlng artivities Net Increaselldecrease) In cash and cash equlvalents 190,414 927,784 Cash and cash equlvalents at l Aprll 2024 2,869,626 1,941,842 Cash and cash equlvalents at 31 March 2025 3,060,040 2,869,626 Cash and cash equivalent5 conslst5 01: Cash at bank and in hand Cash and cash equfvalents at 31 March 2025 3,060,040 3,060,040 2,869,626 2,869,626 Page | 28 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2025 FINANCIAL STATEMENTS CHARITY CASH FLOW STATEMENT forthe year ended 31 MARCH 2025 2025 2024 Notes 21 Net cash flow from operatln8 activities 212,025 848,840 Cash flow from Investing artivities Payments to acquire tangible fixed assets Receipts from sales of tangible fixed assets Interest received {219,712} 45,840 112,679 161, 193) 1103,287) 34.121 131,481 62,315 Net cash flow from Investlng activlties Net Increase/(decrease) In cash and cash equlvalents 150,832 911,155 Cash and cash equivalents at l April 2024 2,833,714 1,922,559 Cash and cash equlvalents at 31 March 2025 2,984,546 2,833,714 Cash and cash equlvalents consists of: Cash at bank and in hand Cash and cash equivalents at 31 March 2025 2,984,546 2,984,546 2,833.714 2,833,714 Page | 29 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENT5 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 office is given in the charity information on page l of these financial statements. The nature of the charity's operations and principal activities are delailed in the Trustees, Report. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practlce as it applies from January 2015. The financial statements are prepared on a goin8 concern basis under the historical cost convention. The financial 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 subsidiary. 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 4{1} of Schedules of the Larger and Medlum-sized Companies and Groups IAccounts and Reports) Regulations 2008 and adopted the Companies Act formats to reflett the special nature of the charity's activities. The signlficant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. (b) Funds Unrestricted funds are available for use at the dlscretlon 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 aslde by the trustees for particular purpose5, The aim and use of each desi8nated fund is set out in the notes to the financial statement5. Restricted funds are funds which are to be used in accordance with specific re5triction5 imposed by donor5 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. Ic) Income recognition All incoming resources are included in the Statement of Financial Activities1SoFAI 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 | 30 KIRKLEES ACTIVE LEISURE {4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS 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 in respect of its charitable activities. Income from grants is recognised at fair value when the charity has entitlement after any performance 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) Expenditure recognition All expenditure Is accounted for on an accruals basis and has been classified under headings that a8gre8ate all costs relatin8 to the category. Expenditure is reco8nised where there is a legal or constructive obli8ation 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 followin8 headin8S: Costs of raising funds includes of the cost of commercial trading and associated support costs; Expenditure on charitable activities includes the cost of operatin8 community recreation facilities on behalf of the local authority {Kirklees Metropolitan Council); and Other expenditure represents those items not fallin8 into the categories above. Irrecoverable VAT is charged as an expense in the Income and Expenditure Account. (el 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 directlv attributed to particular headings they have been allocated to cost of raisin8 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. (f) Tangible fixed assets Tan8ible 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 value, of each asset on a systematic basis over its expetted useful life as follows: Plant and rnachinery - Fixtures and fittings 3 to Ioyears 2 to 10 years Page131 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS Ig) Impalrment of Fixed 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 arnount 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 belon8S. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing 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 ihe 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 {or cash-generating unit) 15 estimated to be less than its carryin8 amount, the carrying amount of the asset lor cash-8eneratin8 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 a5 a revaluation decrease. Recognised impairment losses are reversed if, and only if. the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carryin8 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 impairrnent loss been recognised for the asset lor cash-8eneratin8 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. (h) Cash and Cash Equivalent5 Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, Other short-term liquld investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowin85 in current liabilities. li) Investments Investments are measured at cost less impairment. li) 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-moving 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. Page132 KIRKLEES AcfivE LEISURE143311651 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS (l) Provisions 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. Iml 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 outstanding lease liability using the effective interest method. Rentals payable a nd recelvable under operatln8 leases are charged to the SOFA on a strai8ht line basis over the period of the lease. (nl Employee beneflts When employees have rendered service 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 servlce, 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. lo) Tax The charity is an exempt charity within the rneaning 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 taxatlon expense in relation to the subsidiary company represents the aggregate amount of current and deferred tax recogni5ed 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 comprehensive income or directly in equity, respectively. Current tax is reco8ni5ed on taxable profit for the current and past periods. Currenl tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted 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 Page133 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 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. (p) 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 deducting all of its liabilities. {q) Golng 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 funding already agreed until 31 March 2025 and the indicative funding for the following years to 31 March 2027. The bud8eted income and expenditure is sufficient with this level of funding for the charity to be able to continue as a going concern. Ir) Deflned beneflt penslon surplus recognltlon Where the defined benefit pension scheme is in surplus, the Charity recognises an asset only to the extent that it is able to recover the surplus through a refund or reduced future contributions. Where no such benefit is expected to be available, an asset ceiling is applied in accordance with FRS 102 Section 28.22A-28.24. Is) Crltlcal accountlng estlmates and areas of Judgement In the application of the Charity's accounting policies, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These estimates and assumptions are based on historical experience and other relevant factors. Actual results may differ from those estimates. The most significant estimates and assumptions are reviewed on an ongoing basis. Revisions are recognised in the period of the change and, where applicable, in future periods. Signiflcant areas of Judgement Include: Useful economic lives of tanglble fixed assets Tangible fixed assets are depreciated over their estimated useful lives. These lives are based on past experience and expectations about future use, and therefore require management judgement. Recognitlon of defined benefit penslon scheme surplus A pension surplus is recognised only if the Charity has an unconditional right to a refund or to reduced future contributions. Following actuarial confirmation, an asset ceiling of £nil ha5 been applied. If no ceiling were required, the surplus would have been £10,647,000. Page134 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS Income from charitable artivities- Group and Charity 2025 2024 Sale of goods and services 12,839,140 13,988,181 12,839,140 13,988,181 Income from charitable activities was £12,839,140 {2024: £13,988,181) of which £nil12024: £nill was attributable to restricted and £12,839,140 12024: £13,988,181) was attributable to unrestricted funds. Income from other tradlng activities Group 2025 2024 Trading subsidiary turnover 317,505 310 468 Income from other trading activities was £317,505 {2024: £310,468) which was all attributable to unrestricted funds. Charlty 2025 2024 Management charge received from subsidiary Deed of gift from subsidiary 19,746 62,2SO 18,858 34,OLK) Page | 35 KIRKLEES ACTIVE LEISURE (43311651 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS Income from investments Group 2025 Charity 2025 Group 2024 Charity 2024 Interest 113,910 112,679 132,966 131,481 Group income from investments was £113,910 12024.. £132,966) which was all attributable to unrestricted funds. Other Income- Group and Charlty 2025 2024 Funding provided by Kirklees Metropolitan Council Sports and Leisure Funding 1,220,660 500 3,035,867 45,886 1,221,160 3,081,753 Other income was £1,221,16012024: £3,081,753) of which £1,221,160 12024: £3,035,867) was attributable to unrestricted funds and £nil12024: £45,886) was attributable to restricted funds. Pa8e136 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS Analysis of expenditure 2025 2024 Total Group Support costs Tota I Staff costs Other costs Deprec. Raising funds Trading subsidiary expenses 96,482 138,626 1,508 19,746 256,362 274,167 Charltable activlties Staff costs Transport costs Premises costs Supplies & seNices Kirklees Metropo litan Council service level agreements 5,717,650 3,888,716 9,606,366 448,965 451,729 8,318 1,436,524 340,238 1,011,133 2,169,166 11,065,355 489,359 2,147,655 2,988,031 2,764 1,428,206 1,003,79S 1186,000) 2,325 286,771 289,096 269,435 5,531,650 2,437,090 340,238 5,643,903 13,952,881 16,959,835 Total resources expended 5,628,132 2,575,716 341,746 5,663,649 14,209,243 17,234,lJ)2 Expenditure on raising funds was £256,362 12024: £274,167) all of which was attributable to unrestricted funds. Expenditure on charitable activities was £13,952,881 {2024: £16,959,835) of which £nil12024: £37,553) was attributable to restricted and £13,952,88112024: £16,922,282) was attributable to unrestricted funds. 2025 2024 Total Charity Support costs Total Staff costs Other costs Deprec. Charltable artivltles Staff costs Transport costs Premises costs Supplies & services Kirklees Metropolitan Council serrfice level agreements 5,717,650 3,908,462 448,965 8,318 340,238 1,011,133 9,626,112 451,729 1,436,524 2,169,166 11,084,213 489.359 2,147,655 2,988,031 2,764 1,428,206 1,003,795 {186,CN)01 2,325 286,771 289,096 269,435 5,531,650 2,437,090 340,238 5,663,649 13,972,627 16,978,693 Total resources expended 5,531,650 2,437,090 340,238 5,663,649 13,972,627 16,978,693 Expenditure on charitable activities was £13,972,627 12024.. £16,978,693) of which £nil12024'. £37,553) was attributable to restricted and £13,972,62712024: £16,922,282) was attributable to unrestricted funds. Page137 KIRKLEES AcfivE LEISURE (43311651 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS Allocation of support costs 2025 Charitable Activities 2024 Group Raising funds Total Total Staff costs Transport costs Premise5 Costs Supplies and services Kirklees Metropolitan Council service level agreements 19,746 3,888,716 448,965 8,318 1,011,133 3,908,462 448,965 8,318 1,011,133 4,687.019 486,595 232,807 1,000,131 286,771 286,771 269,159 Total 19,746 5,643,903 5,663,649 6,675,711 2025 Charitable Activities 2024 Charlty Total Total Staff costs Transport costs Premises costs Supplies and services Kirklees Metropolitan Council service level agreements 3,908,462 448,965 8,318 1,011,133 3,908,462 448,965 8,318 1,011,133 4,687,019 486,595 232,807 1,000,131 286,771 286,771 269,159 Total 5,663,649 5,663,649 6,675,711 Audit fees- Group and Charlty 202S 2024 Auditor's remuneration- statutory audit 19,250 20,000 The above costs are attributable to unrestricted funds. Page138 KIRKLEES ACTIVE LEISURE {4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS Net lexpendlture) for the year Net {expenditurel is stated after charging/{crediting} Group 2025 Charity 2025 Group 2024 Charity 2024 Depreciation of ta ngible fixed assets Gain on sale of tangible fixed assets Operating lease rentals 341,746 (45,840) 6,052 340,238 {45,8401 6,052 675,379 134,121) 131,499 669,468 134,1211 131,499 10 Trustees, and key management personnel remuneratlon and expenses The trustees neither received nor waived any remuneration or other employee benefits during the current or previous year, There were £nil12024: £nill reimbursement of trustees, expenses during the year. The total amount of employee benefits received by key management personnel is £340,113 12024: £323,918). The trust considers its key management personnel comprise of the Strategic Leadership Team which includes the Chief Executive and the Deputy Chief Executive. The remuneration of senior staff is reviewed annually by the Kirklees Active Leisure Remuneration Committee. 11 Staff costs and employee benefits The average monthly number of employees and full time equivalents {FTE) during the year was as follows: 2025 Number 2025 FTE 2024 Number 2024 FTE Charitable activitles Raising funds 523 22 227.3 596 30 265.0 545 229.4 626 268.7 The total staff costs and employees, benefits were as follows: Group 2025 Charity 2025 Group 2024 Charity 2024 Wages and salaries Social security Defined benefit pension operating costs Other payroll costs Self-employed instructors 7,583,015 559,028 876,245 85,352 599,208 7,512,333 557,767 871,452 85,352 599,208 8,381,753 569,610 1,008,397 651,832 561,358 8,297,838 568,231 1,004,954 651,832 561,358 9,702,848 9,626,112 11,172,950 11,084,213 Page | 39 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS 11 Staff costs and employee benefits (continued) The total amount of employee redundancy or termination payments relating to the reporting period is £30,90912024: £586,063). 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 employer pension costs) of more than £60,000 is as follows.. 2025 Number 2024 Number £90,001- £100,000 £80,001- £90,000 £70,001- £80,000 £60,001- £70,000 12 Interest payable and slmilar char8es- Group and Charlty 2025 2024 Interest on defined benefit pension liability 1186,000) 155,000) 186 000 Page | 40 KIRKLEES ACTIVE LEISURE14331165} 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS 13 Tangible fixed assets Plant and equipment Fixtures and Fittings Group Total Cost: At l April 2024 3,797,058 1,396,344 5,193,402 Additions Disposals 198,568 12,250) 21,144 161,242) 219,712 {63,492) At 31 March 2025 3,993,376 1,356,246 5,349,622 Depreciation: At l April 2024 3.010,747 1,235,901 4,246,648 Charge for the year On disposals 287,003 12.2SOI 54,743 161,2421 341,746 {63,492} At 31 March 2025 3,295,500 1,229,402 4,524,902 Net Book value: At 31 March 2024 786,311 160,443 946,754 At 31 March 2025 697,876 126,844 824,720 Charity Plant and equipment Fixtures and fitting5 Total Cost: At l April 2024 3,784,370 1,315,987 5,100,357 Additions 198,568 21,144 219,712 At 31 March 2025 3,982,938 1,337,131 5,320,069 Depreciation: At l April 2024 2,999,568 1,155,543 4,155,111 Charge for the year 285,495 S4,743 340,238 At 31 March 2025 3,285,063 1,210,286 4,495,349 Net Book value: At 31 March 2024 784,802 160,444 945,246 At 31 March 2025 697,875 126,845 824,720 Page | 41 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS 14 Fixed asset investments Equity in subsidiary undertaking Charity Total Cost: At l April 2024 and 31 March 2025 Carrying amount: At 31 March 2025 At l April 2024 Investments 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 41328661. The charity hold5 2 shares of £1 each, these are the only shares allotted, called up and fully paid. 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: 2025 2024 Turnover Cost of sales Gr05s profit 317,505 1116,9091 200,596 310,468 1119,541) 190,927 Administration expenses Management charge paid to Kirklees Active Leisure Other operating income Interest receivable & sim ilar income Net profit 1119,7071 119,7461 1135,768) (18,858) 1,231 62,374 1,485 37,786 Deed of gift to Kirklees Active Leisure Tax on profit on ord inary activitie5 162,2501 12311 11071 (34,000) 19421 2,844 The assets and liabilities of the subsidiary were: Assets Liabilities 111,661 1111,439} 222 85,908 185,579) 329 Total net assets Aggregate share capital and reserves 222 329 Page142 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS 15 Debtors Group 2025 Charity 2025 Group 2024 Charity 2024 Trade debtors Amounts owed by subsidiary Other debtors Prepayments Accrued income 104,058 91,821 85,975 146,023 146,023 60,890 2,339 233,678 34,053 374,128 4,071 85,571 28,028 263,693 233,678 34,053 445,527 85,571 28,028 320,S12 16 Creditors: amounts falllng due wlthln one year Group 2025 Charity 2025 Group 2024 Charity 2024 Trade creditors Amounts owed to subsidiary Other tax and social security Other creditors Accruals and deferred income 492,268 486,736 21,591 65,796 425,029 1,703,459 2,702,611 544,067 540,400 44,418 200,087 334,313 1,705,420 2,824,638 75,320 425,029 1,713,867 2,706,484 209,110 342,413 1,709,320 2,804,910 17 Leases- Group and Charlty Operatlng leases- lessee Total future minimum lease payments under non-cancellable operating leases are as follows., Due within: 2025 2024 Less than one year Later than one and not later than five years Later than five years 14,154 56,616 1,180 18 Deferred taxatlon Group 2025 Charity 2025 Group 2024 Charity 2024 The movement in the deferred tax provision during the year was: Provision brought forward Profit and loss account movement during the year 781 1781) Provislon carried forward Page | 43 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS 19 Fund reconciliation Unrestricted funds- Group Balance at 01-Apr-24 Balance at 31-Mar-25 Income Expenditure Gains/llossesl Unrestricted Designated funds 4,555,323 14,491,715 (14,209,474) {3,429,0001 1,408,564 4,555,323 14,491,715 (14,209,474} {3,429,0001 1,408,564 Unrestrlcted funds - Charity Balance at 01-Apr-24 Balance at 31-Mar-25 Incorne Expenditure Galns/llossesl Unrestricted Designated funds 4,554,996 14,2S4,975 {13,972,627) {3,429,000} 1,408,344 4,554,996 14,2S4,975 {13,972,627) {3,429,000} 1,408,344 Restrlcted funds- Group and Charlty Balance at 01-Apr-24 Balance at 31-Mar-25 Income Expenditure Gains/(losses) Restricted 143,840 143,840 Fund descrlptions 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. bl Designated funds- Group and Charity None Restricted funds- Group and Charity Restricted funds have been established upon receipt of fund5 to cover the costs of specific project expense5. Pa8e144 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS 20 Analysis of net assets between funds Unrestricted Group Charity Restricted Group Charity Total Group Charity Fixed assets Investments Net current assets Creditors: more than one Year Pension liability 824,720 824,720 824,720 824,720 583,844 583,622 143,840 143,840 727,684 727,462 Total 1,408.564 1,408,344 143,840 143,840 1,552,404 1,552,184 21 Reconciliatlon of net Income/lexpendlture) to net cash flow from operatlng actlvltles Group 2025 2024 Net lexpenditurel for the year 282,472 279,366 Interest Ireceivable}/payable Depreciation of ta ngible fixed assets Profit on disposa l of fixed assets Corporation tax Pension funding {Increase}/decrease in stock {Increasel/decrease in debtors Increaselldecreasel in creditors 1113,9101 341,746 {45,8401 12311 15,0001 1132,966) 675,379 134,121) 272,000 25,414 147,286 1368,374) 1110,4351 {98,4261 Net cash flow from operatlng actlvlties 250,376 863,984 Charity Net {expenditurel for the year 282,348 275,580 Interest {receivablellpaya ble Depreciation of tangible fixed assets Profit on disposal of f ixed assets Pension funding (Increase) in stock {Increasel/decrease in debtors Increase/{decreasel in creditors 1112,679} 340,238 145,8401 {5,000) 1131,4811 669,468 134,1211 272,(K)O 25,414 132,461 1360,481} 1125,015) 1122,027) Net cash flow from operating activities 212,025 848,840 Page | 45 KIRKLEES AcfivE LEISURE {4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS 22 Pensions and other post-retirement benefits 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/lcost) recognised in the period was as follows.. 2025 2024 Contributions Current service cost Past service cost Net interest expense Recognised in net expenditure 832,000 {872,0001 {141,0001 186,000 5,000 823,000 11,022.000} 1128,000 55,OCrf) 1272,(XX)I Recognised in other 8a ins/{lossesl 3,040,otK) Tota I credit/lcostl recognised 5,000 2,768,0￿? Although a pension surplus of £3.554m was recognised in 2024, in the current year the Trustees have reviewed the requirements of FRS 102 Section 28.22A-28.24 and, based on confirmation from WYPF and contribution levels, have applied an asset ceiling of £nil. Accordingly, the 2025 pension surplus has not been recognised, This reflects a change in accounting judgment based on further clarity and assessment, and does not affect the comparative 2024 figures. Amounts recognised in the balance sheet were as follows: 2025 2024 Present value of funded obligations Fair va lue of plan assets (24,924,000) 35,571,000 10,647,000 130,680,000) 34,234.000 3,554,OCM) 2025 2024 Net a55et recognised in the balance sheet 3,554,000 Although the actuarial valuation indicates a surplus of £10,647,000, no asset has been recognised due to the application of an asset ceiling. As the Charity does not have an unconditional right to a refund nor does it expect reduced contributions, the surplus is not deemed to be an economic benefit available to the Charity under FRS 102 Pa8e | 46 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS 22 Pensions and other post-retirement benefits (continued) Changes in the present value of the defined benefit obligations were as follows: 2025 2024 Opening defined benefit obligation Current seNice cost Past service cost Interest expense Actuarial {gains)/loss Contributions by scheme participants Benefits paid Closing defined benefit obligation 30,680,(J)o 872,(X)O 141,(M)O 1,424,000 17,393,000) 372.000 11,172,LX)01 24,924,(X)o 30,425,L 1,022,OCKI 128,000 1.387.0 11,720,000) 386,0(X) {948,0001 30,734,OIJ) Changes in the fair value of the pension plan assets were as follows.. 2025 2024 Opening plan assets Interest income Re-measurement gains on assets Contributions by charity Contributions by scheme participants Benefits paid Closing plan assets 34,234,OC 1,610,0(M) 1305,OLIJ) 832,000 372,000 {1,172,OCMJ) 35,571,OlJl 31,211,ChJO 1,442,000 1,320,000 823,000 386,000 1948,0001 34,234,000 The amount that each major class of pension plan a55ets constitutes of the fair value of the total plan assets was as follows: 2025 79.30% 9.00% 4.00% 2.80% 2.60% 2.30% 100.00% 2024 79.CXI% 8.60% 4.20% 2.90% 4.00% 1.30% Equities Government funds Corporate funds Property Cash Other assets Ico.oo% The return on plan assets was as follows: 2025 2024 Interest income Gain/{loss) on plan assets {excluding interest income) Total return on plan assets 1,610,0(K) {305,OCMJI 1,305,OCMJ 1,442,000 1,320,000 2,762,000 Page | 47 KIRKLEES AcfivE LEISURE (4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS 22 Pensions and other post-retirement benefits {continuedl The principal actuarial assumptions used were as follows.. 2025 5.80% 3.75% 2,50% 2.50% 2.50% 2024 4.70% 3.75% 2.50Yo 2.50Yo 2.50% Discount rate Expected rates of salary increases Expected rates of pension increases Expected rate of inflation - RPI Expected rate of inflation CPI The mortality assumptions used for longevity lin years) on retirement at a8e 65 are.. 2025 2024 Retiring at the balance sheet date Males Females Retiring in 20 years Males Females 20.9 21 24.2 24.1 21,8 24.8 22.3 25.2 Scheme liabilities would have been affected by changes in the assumptions as follows.. 2025 2024 Discount rate +0.1% Discount rate -0.1% Mortality assumption +1 year Mortality assumption -1 year Salaries +0.1% Salaries -0.1% (573,0001 598,000 (548,0001 548,000 50,000 150,0001 {738,000) 768,000 {799,0001 768,000 61,000 161,0001 23 Related party transactions Information about related party transactions and outstanding balances is outlined below: Outstanding balances Expenditure Azure Consulting, a company controlled by a trustee Kirklees Stadium Development Ltd, whose company secretary is a trustee 2,195 652 At 31 March 2025 2,847 At 31 March 2024 177,524 Page148 KIRKLEES ACTIVE LEISURE14331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS Having reviewed the annual registrar of interests other reportable interests with a financial consequence are as follows.. £1,259,643 received from Kirklees Council £914,592 was spent with Kirklees Council including £289,096 of services purchased under service level agreements with Kirklees Council and payment made by KAL of £320,906 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. 24 Flnanclal Commitments Financial Commitments to Kirklees Council 2025 2024 Outstanding contributions to facility improvements KAL 3,318,687 3,639.593 Pa8e149 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 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. Page | 50 KIRKLEES ACTIVE LEISURE (4331165) 31 MARCH 2025 NOTES TO THE FINANCIAL STATEMENTS DETAILED CHARITABLE EXPENDITURE (including Governance Expenditure) 2025 2024 Staff costs Salaries Wages Teachers Self-employed instructors Indirect employee costs Current year pension charge 5,480,928 2,925,759 353,865 599,208 8S,3S2 181,000 5,699,613 3,367,280 477,130 561,358 651,832 327,000 9,626,112 11,084,213 Transport costs 451,729 489,359 Premlses costs Repairs and maintenance Electricity Gas Water Energy savings works Other utility costs Rent Insurance Water treatment Non-recreational equipment Rates Other 641,706 3,541 938,975 106,822 177,520 153,048 2,185 194,602 248,896 3,035 121,836 102,758 115,557 35,082 29,094 250,998 91,940 74,359 31,880 38,916 221,429 1,436,524 2,147,655 Supplles and servlces Equipment Marketing IT Postage, printing and stationery Communications Resale items 140,117 191,325 336,375 21,980 24,279 86,658 135,642 151,681 359,630 27,596 24,576 121,836 F-I I Depreciation Kirklees Metropolitan Council finance charges PrOfeSs￿nal Licences Financial Irrecoverable VAT Other 340,238 320,906 183.456 160,440 1126,540) 462,260 27,672 669,468 479,447 278,125 186,022 18,622 495,422 39,964 2,169,166 2,988,031 Kirklees Metropolitan Council service level agreements 289,096 269,435 Total expendlture 13,972,627 16,978,693 Page | 51