Reglst•rod Company Numb•r. l)4384785 Reg1gtsr•d Charity Number: 1096244 BLUECOAT SPORTS REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2021 BLUECOAT SPORTS REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2021 Offlcers and Professional Advisor5 Directors and Charlty Truste•s Members of the Board of Trustees are the charity trustees of Bluecoat Sports under charity18w arKI the dlr8Ctors of the charitabl8 company. The member8 of the Board who seNed durlng the year and sub8equenUy are detailed below. James M8cle8n. Bsc Hons (Chalman) Nigel Currie Roger Eades, ACMA Paul Guyer, MRICS K8lth Wi11der MBE (to 17 September 2021) Sarah Scott. BEng Hon8 {Indep8ndent Trustee) (from 27 November 20201 Company S•cr•tary Jacqul Duggan R•gl8tsr￿ Offlc• The Counting Hou88 Christ's Hospital Horsham West Sus8ex RH13 OYP Audltor Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Bank•r Barcl8ys Bank plc 2 Carfax Horsham West Sussex RH12 1DN Sollcltor Mills and Reèvè LLP Botanic House 100 Hills Road Cambridge C821PH BLUECOAT SPORTS TRUSTEES, REPORT YEAR ENDED 31 AUGUST 2021 The Trustees of Bluecoat Sports (the Charitable Company. known a5 BIu8coats) present their annual report for the year ended 31 August 2021 under the Charities Act 2011 and the Companies Act 2006, thus including the Directors. Report and Stralegic Report und8r the 2006 Act, together wlh the audited financial statements for the year. STRUCTURE, AIMS AND GOVERNANCE Constitution and oblecls The Charitable Company was established in 2002. It is constituted as a company limited by guarantee registered in England, number 04384765, and is reglstered wlh the Charity Commission under charity nurnber 1096244. The Ch8rit8ble Company's activities are govemed by its Memorandum and Articles of A880ciation dated 1 March 2002, as amended by the SFecial resolution dated 1 March 2012. The Charitable Companys obiecls a8 Set out in the M8morarKlum of Association are to: provide facilllles to Christ'8 Hospital for phy8ical education and training for personal and tearnwork development., promotb physical hgalth and fitness amongst the pupils of Christ's Hospllal., provide facilities to kscal schools, local authority organisations and charities for the purposes of physical educallon and training for personal and teamwork development., and promote phy81cal health 8nd fitness amongst the wider communlty. AIMS, OBJECTIVES AND ACTMTIES Aims The Charitable Company's aim for the public benefit is to provlde safe, secure and up-lo-date sporting and exercise fgcllities for pupils al Christ's Hospital. Ioc81 schools. local authority organ188llons. charities and the wlder communlty. GOVERNANCE AND MANAGEMENT Board of Trustees The Board of Trusloes (the Board) consists of at le8St three and not more than SIX indivlduals. All but one {the indep8nd8nl Trusleel are nomin8ted by Christ's Hospital. The independent Trustee is nominated by the Board of Bluecoats and musl not be a Trustee or employee of Christ's Hospital or any of ils subsidiary undertakings. The Board takes its govemance responsibilities serfously and aims to have a govem8nce framework that is fit for purpose, compliant and efficient. Bluecoat$' poliw and practice have been reviewed against the Charity Governance Code. Many of the provisions are covered as part of Bluecoals, relationship with the governance of Christ's Hospllal. The Audit and Risk Committee provides oversight arKI challenge for Bluecoat8' Truslees. The Board has in place a programme for continuous development. During the year a key area of focus was the development of a matrix against which to evaluate the performance of the Board and of individual Trustees. Recrultmenl, induction and training of Trust996 New Trustees are requlred lo attend an induction meeting which explains the objectives of the Ch8rity 8nd the responsibilities of the Trustees. BLUECOAT SPORTS TRUSTEES, REPORT YEAR ENDED 31 AUGUST 2021 Organisational management The members of the Board, as the charity trustees, are legally responsible for the overall management and control of Bluecoats. The Board meets at least three times a year and acts in the sole interest of Bluecoats. The day-tTrday running of 81uecoats Is delegated to a Senior Management Team, comprislng the Commercial Manager, who reports to the Chief Opetaling Officer of Chrlst'5 Hospitsl, the Centre Manager arKJ Operations Manager. Related parties The Charitable Company is a'controlled. charlty Insofar88 Christ's Hospital controls the appointment of the majority of the Trustses. STRATEGIC REPORT STRATEGIES TO ACHIEVE THE PRIMARY OBJECTIVES The ￿ national lockdowns during the year led to Bluecoats bglng closed to the publlc for a Significant period of tSme. Firstly in November 2020 arKI. despite a relatlV8ly successful reopenlng In Decemb8r 2020, then 8hortly thereafter from 26 December 202010 29 March 2021. Sport and physical exercise gradually relumed from March 2021 culmlnating with the remov81 of social distanclng measures In July 2021 which enabled Blue¢oats lo relum lo some level of normality. 8luecoa18 began a review of its group exercl8e, swimming and fitne88 tlmetable8 to optimi8e 8pace and time. with new cl858es and aclivllle8 offered. for example the 'Fltne88 Yard" cl88ses, Move-lt and Battle-fit, to name but a few. Bluecoats 81so reintroducad external hSre of the maln outdoor facilities to local clubs and Schools from 29 March 2021. ACHIEVEMENTS AND PERFORMANCE Provlde facllltles to Christs Hospital The maln focus of Bluecoat8' activit18s remains Ihe provision of sporting facilltles to Christ'8 Hospital lo support the health and wellbeing of Sts pupi18. Approximately 58.10 of the lime available In th9 core facilitie5 {pool, fitness suite, sports hall and gymnasium) is taken up by Christ's Hospltal during term time. Pupi18 of Christ's Hospit81 have achieved some notable 8u¢¢e8888 during this academic yoar. All of these pupils uged Blu8coat8' facilities for a major part of their training. The Trustees congratulat8 the pupils on their effort5 and their successes 8nd thank the stsff of Bluecoats for their support for all the pupils of Christ's Hospital. Promote physlcal health and fitn8SS amongst th8 pupils of Christ's Hospltal All pupils are inducted into the fitness suite by a Bluecoals fitnoss instructor. We have a robust monitoring system to ensure that all pupils using the facilities have undergone suitable in8tnJction and thal they have the infomats'on and tools to 8Ghieve their health and filnes5 goals. In conlunctlon with Christ's Hospital'5 PE Dep8rtmenl. Bluecoats provides a multitude of activities lo promole health and wellbeing. including aerobic, mind and body and core stability ex8rcise classes. Optional activities for pupils have included badminton. swimming, fthess training. dancing, squash, martial arts. yoga and step aerobics. During social periods in the evenings. the main halls are used for football, basketball, badminton and Gricket training by both pupils and staff. BLUECOAT SPORTS TRUSTEES, REPORT YEAR ENDED 31 AUGUST 2021 Provid8 facllities to local schods, local authority org8nlsations and charities for tha purposes of physical educahon and training for personal and teamwork developn78nt Bluecoats continues lo be popular with local schools and comrnunity clubs, such as the Horsham- based Ready and Able Club, Horsham Hookey and Southwater Royals football club, along with Wamham Village Primary School and Amphibians triathlete8. Bluecoat8' facllities are used by 31 local clubs and groups. All of the88 users benefitfrom discounted rates. Promote physical health and fltness amongst the wider community Bluecoal$ provides servlces lo approximately 2,720 members from the local community. In addltion, all adult exerclse classes, children's courses and cla$se5 {including swimming lesgonsl are open to the gener81 public al PriGes set in accordance with the local market. Leisure f8cilities across the country were severely impacted by thè nallon81 lockdowns In the year and Bluecoats wa8 no dlfferent. This resulted in the complete closure of the facilities for four months (November 2020, January 2021, February 2021 and March 2021) with 8 gradual reopening to July 2021. For 8 second year, this inevitably affected the ability of Bluecoats lo engage with its members and the wider community. It is believed that thls engagemont can be re-bullt. but the speed at which It can be achieved remains uncertain. PUBLIC BENEFIT In setting our objectives and plannlng our acllvltl88 the Trustees have glven careful conslderation lo the Charity Commission's gener81 guidanc6 on public benefit and in particular to Its supplementary public benefit guldance on advanclng educallon and fee ch8rglng. The fe8 charged to Christ's Ho8pltal is di8counte(I by 25% (circa £100k) In compari80n to the comrnercial rate and there are no addition81 charges to pupils who use the facilities for soclal activities whlch include use of the fitness suite, soc￿1 areas and sports hall8. In 2020-21, only 22 /0 of puplls attending Chrlsl's Hospital paid full fees, 3Yo received yt8ff discounts, 110/0 attended at no co81 and the remaining 64'/D made a contribution whlch, In most cases, was far below the full fee. Bluecoats thus delivers public benefit in m8king its facilities available to these pupils, none of whom are ch8rged directly for their u88 of the Centre, either as part of the curriculum or outside school hours. Membership fees for the community are on 8 Par with local leisure facilities and non-members are able to attend many of the activilios for a small charge which is comparable with local leisure facilities. Local community group8 also benefi't from substsntlal discounts compared lo the commercial rate with significant discounts forthe Ready and Able Club which pays 5 /0 of the commercial rate. Agaln, Bluecoats delivers public benefit in making its facilities available to the members of these groups. none of whom are charged directly for their use of the Centre. FINANCIAL REVIEW Results for the year Income for the year was £1.31 million12020.' £1.57 million), with net oufflow of £82.CN)012020'. £237,000). Whilst the pandemic had a significant impa¢l on income across both the current and prlor financial years, the loss was mitigated by the Coronavirus Job Retention Scheme funding and, In the Gurrent year. the use of the gymnasium sport h811 as a vaccination hub by the NHS. Whilst membership numbers slarted to recover following ￿OpenIng in April 2021, overall income was affectsd for the remainder of th8 year. BLUECOAT SPORTS TRUSTEES, REPORT YEAR ENDED 31 AUGUST 2021 The experience of operating Bluecoats during the pandemic has underlined that the operation Is well-placed to recover over the medium temi, provided that indoor fitness activities are able lo function at nomial ￿paCItY levels. While some parts of the Bluec08ts offering have been scaled back, the centre has offered as close to its regulartimetsbles as possib18. Indeed, there a￿ elements of the changes introduced due to COVID-19 whiGh management hav8 retain8d, as they improve the customer experience for tsoth pupils and members. The operation will continue to be tighlly managed whlle uncertainty about the operatlng environment persl8t8. The financial sustainability of Bluecoats Is considered further on page 6 of thls report. Investment policy Bluecoats maintains sufficient Cash in its current accounl lo megt d8y-to48y r8qulrements. Amounts surplus to this are deposited with CCLA vi8 the Chrigl's H08Pital group cash poollng facility at acceptable risk and attracting interest al more favourable rates than Bluecoats, current account. At 31 August 2021, £0.2 million (2020.. £0.2 million) of Bluecoals cash was held In the group cash pooling facility- There are no plans to invest In any longer-term Instruments or for higher returns where Increased risk is a factor. Fundraising Bluecoats does not undertakè fundralslng and is Iherefore not registered wlth the FurKJraising R8gulalor. RESERVES LEVEL AND POLICY The pollcy is to hold free reserves of up to months, running costs {around £350,000). At 31 August 2021, 8luecoat8 had reserves of £301,000. These are represented by the net book value of flxed assets of £170,000 and free r886Tv08 of £131.000. Free reserves are held lo enable Bluecoats to continue to provide an educational facillty for pupils of Chrlsl's Hospital 8nd sports facilities for the public but have been depleted due to COVID-19. The financial su8tainablllty of Bluec08t8 18 con8ider8d further in the Financial Susiainability paragraph latsr in this report. REMUNERATION POLICY The 8oard conslders and approve8 romuneration levels for all staff, includlng key management personnel. A decislon is taken annually with due regard to local market force8 and fitness industry noms and the need to ensur8 that the team is fairly and equltsbly reward8d and mtivated. TRUSTEES AND PROFESSIONAL ADVISERS The Trustees and professional advisers dunng the year are those listed on pag8 1. FUTURE PLANS Thg financial impact of COVID-1g, with th8 complete closure of Ihe facility for a significant ￿rIOd of 202012021, has prompted a ￿-evalUation of the future direction of Ihe Cent￿ and how it seryes its stakeholders. Whilst this may delay Some plans in the short term, Bluecoals will continue to enhance the gervices which it offer5 to Chnst's Hospital and its rnembers. In September 2021. Bluecoats ceived planning pemission fora propoged expansion ofthg ¢8nlrè designed to add￿8$ the fitness aspirations of the local community. MaintainSng the building is an important part of the future. The Bluecoat Sports Planned Maintenance Programme Working Group which consists of Chrfst's Hospital and BIu8coal Sports representatives completed the fifth year of works with a further condition survey covering 10 years. BLUECOAT SPORTS TRUSTEES, REPORT YEAR ENDED 31 AUGUST 2021 RISK MANAGEMENT The Board is responsible for the management of the risks faced by the Charitable Company. Detailed considerations of risk are delegated to senior staff. Risks are identifled, assessed arKI contro15 established throughout the year. A formal r8view of the Charitable Company's risk management pro¢e$ses is undertaken on an annual basis. The key controls include.. Strategic planning, budgeting and management 8ccounting', Established organisatlonal and govemance structure and lines of reporting.. Fomial written policies., Formal agendas for Board activity,. and Hierarchical 8Uthorisation and approval18vels. In additlon, the Tru51oes are commltted lo safeguardlng and promollng the welfare of children and young peop18 and we expect all stsff and volunteers to share this commitment. All successful C8ndid8tes musl consent for Bluecoat8 to seek Iwo written references and musl provide documentary proof of qualifications and proof of their idenlily. Any offer of employment is conditional on all of these being s81i$factory. Prlnclpal rlsk8 and uncortalntle8 The principal rlsk8 facing 81uecoats relate to the health and safety of the pupils and membèrs and the Welfa￿ of the pupils. Robust procedures. wlth regular checks and balanc88, are in plac8 to ensure that thes8 risk5 are minimised. Through the risk man8gement proces888 8Stabllshed by Bluecoats, the Trustees are Satisfied that the major risks identified have been adequately mitigated. It ig recognised that systems can only provide reasonable bul nol absolute assurance that major risks have been adequately managed. Flnanclal sustolnablllty Whlle Bluecoats has develop8d 8 tried and tested programme wlth the School over many years 8nd built UP 8 Strong local brand and member Ioy8lly, the complete closure of the facility for a significant period has, as should be oxpected. a significant flnancial impact. Th8 period of re-opening has b6en encouraging. wlh membership numbers starting lo recover and a strong gen8e th8t 81uecoats had emerged from the lockdown period In better shape than many of its local compelilors. At the tlme of approval of the Annual Report, fa¢lors rem8in Ihal may have an impact on Bluecoats, in common with other businesses, over 8 number of years. Those factors include the ongoing pandemic and rlsing inflation. Whilst the impact Is unknown, the Board has reviewed the posltion carefully with a view to ensure that Blueco8tS C8n continue to provide vital sporting facilities for the School and to the general public. Finenclal plans have been reforecast, covering a period to 31 August 2023. Conservative Cash flow modelling with sensitivity analysis, inGluding a worst case scenario of a further period of lockdown, indicates that the cash ￿SerVeS of Bluecoat8 are adequate to meet the chafltable company's obligations as they fall due. Accordingly, the Board believes that 8luecoats can continue as a going concern for the foreseeable future, being at least 12 monlhs from the dale of approval of the financial statements and have therefore prepared the financial ststements on a going concern basis. BLUECOAT SPORTS TRUSTEES, REPORT YEAR ENDED 31 AUGUST 2021 STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees (who are also the directors of Bluecoat Sports for the purposes of company18wI ar8 responsible for preparing the Trustees, Annual Report and the financial ststements in accordance with applicable law and Unitsd Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). Company law requires the Trustees lo p￿pare financial statements for each financial year. Under company law the Trust88s must not approve the financial statements unless they are salisfied that they give a true and fair view of th8 Stale of affairs of the Charitable Company and of the incoming resources and application of resourc8s, including the income and expenditure, of the Charitable Company for that period. In preparing these financial statements, the Trustees are required to.. $8lect suitable accounting policles and then apply them con8istenly', • observe the methods and principles in the Charit18s SORP; • make judgements and 8stimates that aTr ffjasonable and prudent; • state wh8ther applicable UK accounting standards have been followed, subject to any malerlal departures disclosed and explained In the financial statements- and prepare the financi81 statements on the going concem basis unless it is inappropriate to pr88urne that the Charltsble Company wlll continue In buslne88. The Trustees ar8 responsible for ensuring that Blueco8t Sports keeps adequate accounllng records that are sufficient to show and explaln the Ch8ritBble Company's transacllons, disclose wlth reasonable acCU￿cY al any time the financial position of th8 Charitable Company and en8ble them lo ensure that the financlal Statements comply with the Companies Act 2006 and the provisions of Ihe charlly's constilulion. They are also responslble for safeguarding tho assets of the Gharity and hence for taking reesonable 8teps for the prevention and detection of fraud and other irregularltles. So far 88 the Trustses are aware, there 13 no relw8nt audll Information of whlch the Ch8rltable Company's auditor is unaware and we have taken all the steps that we ought lo have taken as Trustees in order lo make ourselves aware of any relevant audit infomatlon and to establish that the Charitable Company's auditor18 aware of that infomiation. AUDITOR Crowe U.K. LLP ha8 expressed Its willingness to continue as audltor lor the next finanrjal year. This Trustees, Report, prep8red under the Charities Act 2011 and the Companles A¢t 2006, was approved by th8 Board of Trustees on 26 Novernber 2021, including In their capaclty as company directors approval of the Strategic Report contained thereln, and 15 signed on its behalf by James MaGlean Chairman 26 November 2021 BLUECOAT SPORTS STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 AUGUST 2021 Independent Audltor's Rgport to the Members of Blue¢oat Sports Oplnlon We have audited the financial stslements of Bluecoat Sports {'Ihe charitable company.) for the year ended 31 August 2021 ￿1¢h comprise Statement of Financial Activities. Balance Sheet and notes to the financi81 statements, including significant accounting policies. financial reporting framework that has b8en applied In their preparation is applicable law 8nd United Kingdom Accounllng Standards, in¢luding Flnancial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion th8 flnanclal statements- give a true 8nd fair view of th6 State of the charitable company'8 affalrs a8 at 31 August 2021 and of its income and exponditure, for the year then ended. hav8 b88n properly prepared in accordance wlth Unlted Kingdom G8nerally Accepted Accounting PT8Ctlce: and have been prepared in accordance with the requbrements of th8 CompBnle8 Act 2006. Bas18 for oplnlon We conducted our 8udit In accordance ￿th Intemational St8ndards on Audlllng {UK) (ISAS IUKII and applicable law. Our ￿spOnsibl1111eS under those standards are further described In the Auditor, responsibilities for the audit of the financial statements section of our report. We are independenl of the chanlable company in accordance wlth the ethical requlrements that ar8 r818V8nt lo our audlt of the financial statements in the UK, Including the FRC'S Ethical Standard, and we have fulfilled our other ethic81 respon51bllltles in accordance with these requirements. We believe that the audll evidence we have obtained is sufficient and appropriat& to provid8 8 basis for our opinion. Concluslons rolating to golng concem In 8uditlng th6 financial statements. we have concluded that the Tru81ee8' Use of the golng concern b8818 of accountlng in the preparatlon of the financl81 statements is 8pproprfate. B88ed on the work we have perfomed, we have not identified any material uncertainties relating lo events or conditlons that, individually or collectlvely, may cast significant doubl on the charilable company'6 ability to continue a5 a going concem for a period of at least ￿1ve months from when the financial ststemonts are authorfsed for issue. Our respon8ibilities and the respon5ibllltl88 of the Trustees wlth respect to golng concem are des¢rlbed in the relevant $8ctlons of thi8 report. Oth•r Informatlon The Trustees are responsible for the other information conlalned within the annu81 rewrt. The other Infomiation compris8S the infonmatlon Included in the annu81 report. other than the financial statements and our auditorfs report Ihereon. Our opinion on the financial statements does not cover the other infonnation and, except to the extent otherwise explicitly 8taled In our report, W8 do not express any fomi of assurance conclusion thereon. Our responsibility 18 to read the other information and, in dolng so, consider whether the other infomation is materially inconslstenl with the financial statements or our knowledge obtained in the audit or otheThvise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to d8temiine whether this gives rise to a material misst8tement in the financial statements themselves. If, based on the work we have performed. we conclude that there is a material misstatement of this other Infomation, we are required to report that fact. We have nothing to ￿port in this regard. BLUECOAT SPORTS STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 AUGUST 2021 Oplnions on oth•r matt•rs pr•8¢rib•d by th• Companles Act 2006 In our opinion based on the work undertak8n in the course of our audit the infomiallon glven in the Trustees, Report, which includes the Directors, Report and th8 strategic ￿port prepared for the purposes of company law, for the flnancial year for which the financial statements are prepared is consistent with the financial statements,. and the strategic repjrt and the Olrectors. Report included within the Trust885' Report have been prepared in accordance wlh applicable legal requlrements. Matt•rs on whlch w& are raquired to rqport by 8xGoPtlon In light of the knowledge and understanding of the charitable company and Iheir environment obtained In th8 course of the audit, we have not identified material misstatements in the strategic report or the directors, r8POrt Included within the Tru8tees' report. We h8ve nothing lo report In respect of the followlng matters In relation lo vthich th9 Companies Act 2006 requires us lo report lo you if, in our oplnlon.. 8dequate and proper accounting records have not been kept: or the financial statements ar8 not in agreement wth the accountlng record8 and retum8; or certaln disclosures of Trust88s' remuneration specified by law are not made: or we have not received 811 th8 Information and explanat6on8 we require for our audlt. R•8pon8lbllltl•s of Tru•t•e• A8 explained mor8 fully in the Statement of Trustees, Responsibilities set out on page 7, the Trustees (who are also th8 directors of the charllable company for the purpcses of company lawl are responslble for the preparatlon of the financial statements 8nd for being satlsfied that they give a Irue and fair view, and for such intemal control as the Trustees detennlne Is necessary to 8n8ble Ihe preparation of financi81 statements that are free from material misstatem8nt, Whetr￿r due lo fraud or error, In preparing the flnanclal statements, the Trust988 are re8pon8ible for a88es8lng the charlt8ble company's abillty to continue as 8 golng concern, di8closlng, as applicable, matters related to going concern and using the golng concem b8si$ of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realists'c allemativo but to do 80. Audltor'8 ro8ponslbllltl•• for the audlt of th• Ilnanclal statements Our oblectlv88 are lo obtaln reasonable assurance about whethgr financial ststements as 8 whole are free from materlal misststemenl, whether due to fraud or error. and lo Issue an auditols r8port that includes our opinion. Reasonable assurance is a high level of assurance. bul is not a guarantee that an audit conducted in accordance with ISAS {UK) will always detect a material misslalementwhen It exists. Misstatements Gan arise from fraud or error and are considered material If. individually or In the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Delalls of the extent to which the audit was considered Gapable of detecting irregularities, including fraud and mn (237,30T) TOTAL FUNDS BROUGHT FORWARD 382.364 619,671 FUND BALANCE 300 826 382,364 The notes on page5 13 to 20 fom part of these financial statements. 11 BLUECOAT SPORTS BALANCE SHEET AT 31 AUGUST 2021 Not•s 2021 2020 FIXED ASSETS Tangible assets 170221 225, 100 cuRREP￿ ASSETS Stock Dablor8 Cash at bank and in hand 16,042 258,538 106 799 381,379 13,593 213.634 63. r39 290,966 CREDITORS Due within one year 1209,9371 (133, 702) NET CURRENT AS8Ef8 171442 157,264 TOT*L ASSETS LESS CURRENT LIABIUTIE8 382 364 CREDITORS Due after more than one year (40,837) NET ASSETS 300 826 382,364 FUNDS Unr•8trl¢tod funds Dosignaled General 10 10 170.221 130 805 300 826 225,100 157,264 382.364 The not88 on p8ge8 13 to 20 fom part of these finan¢ial statements. Approved by the Board of Trustee8 on 26 November 20218nd Signed on its bghalf by.. James Maclean Chalrman 26 November 2021 12 BLUECOAT SPORTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2021 1. ACCOUNTING POLICIES Accounting convention The financl818tatements have been prepared In accordance wth the Financial Reporting Standard 8pplicable in the UK and Republic of Ireland IFRS 102), the Companies 2006 and the Statement of Recommended practi￿ applicable to charities preparlng thelr accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021- effective 1 January 2019. The8e Financial Statements have b88n drawn up on the hlstorfcal cost accounting basis. At th8 lime of approval of the Annual Report, f8clors remain Ihat may have an impact on Blueco8ts, In common wth other businesses, over a number of years. Those factors include the ongoing pandemlc 8nd rislng Inflation. Whilst the impact is unknown, the Board has reviewed the position carefully wilh a view lo ensure that Bluecoals can continue lo provide vital swrting facilikn'es for the School and to the general public. Flnancial plans have been ref0￿Cast. coverlng a p8riod lo 31 Augusl 2023. Conseryative Cash flow modelling with sensitivity 8nalys18, Includlng 8 viorst c88e 8cenario of 8 further period of lockdown. indicates that the cash reserves of Bluec0818 are adequate to meet the charltsble company's obligations as they fall due. Accordlngly, the Board believes that Bluecoals can Gontinue as going concem for the foreseeable future, being al least 12 months from the date of approval of th8 flnancial stslements 8nd have therefore prepared the finandal 8latement8 on a going concem basls. Bluecoal Sports 18 a Chadtable Company Ilmlted by guarantee (Company number 043847651 and registered in England. 11 is a Public Benefit Entity registered with the Charity Commission in Eng18nd and Wales under Charily number 1096244. 81uecoal Sports operates from its registered office at The Countin9 House, Chri8t's Hospltal, Horsham, Wesl Su8S8x, RH13 OYP. The Charlt8ble Company h88 taken advantage of the exemption, avallable under FRS102 1.12 to subsidiary charitSes, from preparing a c88h flow Statement as Ihls Is included in the consolidated financial statements of Christ'g Hospltsl. Crltlcal accountlng Judgoments and key sourc•s of •stlmatlon uncortalnty In the application of the Charflable Company's acwunting policie8, Trustees are requlred to makè udgements. estimalgs and assumptions about the Carrying values of assets and liabilillas that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The 88tlmates and undedying assumptions are reviewed on an on-golng basis. Revisions to accounting estimates s￿ recognised in the period in which the estimate is revised if the revlsion affects only that period or in the penod of the revision and future ￿riodS if the revlsion affects the current and fulure periods. In Ihe view of the Twstees, no assumptlons concerning the future or estimation uncertainty affecting assets and liabilities al the balance sheet dale a￿ Ilkely to result in a material adjustment to their carying amounts in the next financial year. The following paragraphs describe the specific policies adopted for rewgnition of significant categories of incoming resource and expenditure. 13 BLUECOAT SPORTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2021 Sports Centre incom• Sport8 Centre income relates to continuing activit￿3 and comprises membership sub8cription8, guest fè88 and hlre of faolities in tho yaar, exclusive ol Value Added Tax and is accounted for when r8ceivable. Investmont Incom• Investment income currenuy comprises bank interest arKJ is accounted for on an accruals ba818. D•f•rrod Incomo Fee Income invoiced in adv8nc* of cour¥es18 deferred to the year in whlch the cour8e8 are delbvered. Flx•d a•sets A number of fixed assets are in the own&rghip of Chri8t'8 Hospital Founda￿On, the c08t of u88 belng charged on a monthly basi8 to the Charltable Company. Exp8ndrture on Indlvldual Items ¢08tlrYJ more than flve thousand pound8 has been capitalised. Flxed 888ets are depreciat8d In 8qu818nnual In8ts1mentg over Iheir economlc liv88 88 follow8: Plant equlpment Depreci8tlon18 not charged on work in progre88. Stock Stockls 8t818d at the lower of c06t and not ro8li88ble value. L•aM commltm•nt• R8nt818 pald uTrJer oper8tlng1gase8 are charged to Income on a stralght line ba8is over the lease tenn. Exp•ndltur• Expenditure Is accrued as soon as a liability is consldered probable, dlscounted to present Value for longer-term liabilitiès. Expenditure 19 8PtKlrtloned to C05t categories based on the estimated amount attributsble to that activlty in the year. Govemarbce costs comp￿se the co81s running the Charitsbl& Company, Including strategic plannlng for future development. external audlt, any legal advice for the Board, and all the costs of Complying with constitutlonal and statutory requirements, such as the costs of Committee meetings. preparing statutory accounts, and satisfying public accountsbility. Taxatlon The a￿1vitieS of Bluecoat Sports are exempt from Income and Corporation Tax but are registerad for Value Added Tax (VATI. The majority of these aotivities are ¢la$sified as exempt or non-business activities for VAT purpo8e8 and consequently It is not kK)s$ible to reclaim the majority of the VAT incurred on purch88es. 14 BLUECOAT SPORTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2021 P•nslon •ch•m8s The Chrisvs Hospital Pension Scheme 18 a multi-employer 8Gheme and it Is not possible to identify the assets and liabilities of the Scheme that are attributable to the Charitable Company on a consistent and rea90n8ble basls. Therefore, in accordance wtth FRS 102, the Charitsble Company accounts for this 8ch8me as rf it %*re a defined contribution scheme. Note 12 provide5 further inf0m￿tIOn on thls 8chem8 and the 8tskeholder pen81on Scheme. Flnanclal Instrum•nts Baslc financial instruments are inltialty recognised at transactlon valu& and subsequently measured al amorti8ed cost. Financial assets held at amortised cost comprise c88h at bank and in hand, together wlth short lem depo81ts, trade and other debtors. A Specific provlslon Is made for debts for Y*hich recovarablllty18 in doubt. Cash at bank and in hand is defined as all cash held in inslanl access bank a￿Unts and used as working caprtal. Financlal liabilities ￿ld at aM0￿'Sed c08t comprise all cr8ditor8 except soclal security and other taxes and provi8ion8. 2. ANPLY818 OF TOTAL EXPENDITURE STAFF com OTHER COSTS DEPRECIATION TOT 2021 TOTAL 2020 Ch•rlt•bl• •¢tlvS11•• Providing sportin9 fadlttle8 Preffi$es co818 Equlpm8nl ￿81& Publidly c08t8 olher support costs Finance c0813 Governance ￿$1$ 787.255 3,270 8,883 310,140 5,931 18,416 143,632 3,367 7,200 776,138 313,410 67,017 18,416 201,380 3.307 7,200 887,498 494,964 121,910 60,145 229,052 8,464 9,240 61.088 57,746 Tot81 costs of Char￿ble 8Ctiviti88 828 273 497 589 1386 928 1809 273 Tot•1 •xp•ndltur• 828 273 497,569 1 386 928 1809 273 Premlses costs irtluded £16,000 of development costs in 2021 (2020.. £132,000) In respect to th8 Bluecoat Sports Exp8nsion Project. 3. STAFF COSTS 2Q21 2020 Wages and $818rlo8 Coaches, fees I￿n81 hsurance costs Pens￿n9 884.372 92,504 28.B72 22,525 759,957 123,885 32.006 22,531 828 273 938 379 15 BLUECOAT SPORTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2021 The full tlme 8quival8nl number of staff an0￿e￿ by lunclion ￿6.. 2021 FTE 2020 FTE Aciwities department Closs instructors Filness suite R8cx8atitsn a8wstsnts S%%im school Manag&m•nt and adnlnislrallon 17 21 29 40 ) •mploy•é •arn8d over £60,00012020.' nlll- Th& ovgra9• h•ad count (boing the number of siaff employed not 8dlusled for FTEI 94 {2020.' 147}. There ￿￿Te 4 key managarnent personn•l12020.. 41 Sn the year lo 31 August 2021. Tholf aggregate grwloyge benefits h%tre £152,21512020.. £145.4421. Th18 Includes £41,181 12020.. £27,807) hSch w￿8 recharged from Christ'g H)spltal. There were redundancy costs of £27,869 during the year {2020: £nil). 4. AUDITOR'S REMUNERATION 2021 2020 Audit fee . TANGIBLE FIXED ￿SETs Pl*nt & gqulpm•nt TOTAL 2021 Cost Al 1 Soplember 2020 Additions al cost Disposals al co31 1,044,897 6.207 129,7561 1.044,897 6,207 {29,7561 Al 31 August 2021 1021348 1021348 D•pr•c14tlon Al 1 September 2020 Charge for year Accurnulaled on dSsposals At 31 August 2021 819.797 61,086 129,7561 851 127 819.797 61.086 129,7581 851 127 N￿t book value at 31 August 2021 170 221 170 221 Nel bix)k ￿lue at 31 August 2020 225 100 225 100 16 BLUECOAT SPORTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2021 . STOCK 2021 2020 stock for Sale Raw mat8rial8 and consumable• 2,810 2, 786 10,80T 7. DEBTORS 2021 2020 Trade debtors PrepaYr￿n1$ Du8 from Christ's Fbspital Due from Chr151's Fb8Pital Entefprlses Umlled Furlough Grant & Other Ta￿8 12,285 16,615 222,916 1,086 42.200 107,897 63,537 213,634 258 538 8. CREDITORS: Du• wlthln on• y••r 2021 2020 Trade creditors Bank ban Delerrod Income Tèx and ￿tional Insurance C￿e lo Chrlsl's Fbspllal Enlerprlses Llmlled e lo Christ'5 Fbspilal Foundatljn Other uodilors and accruals 13.062 9,163 11.646 9,370 24, 709 22.062 10,098 243 25.134 51,456 133 702 97.501 209 937 Income deferreej In Ihg currgnl y88r'. - Other fee8 22,062 Balance al 1 Seplgmber 2020 Released lo Incorre in the year wfees Balance 8131 August 2021 22.062 122,062) 17 BLUECOAT SPORTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2021 9. CREDITORS: Due after more than on• y•*r 2021 2020 Bank klan In September 2020 the Cornpany entered into an uns8cured £50.000 boun￿ back loan with Barclays Bank for a term of 6 years. During the first 12 months. the UK Govemmenl paid the interest due under this loan. This is known as the Business Interruption Payment. No repayment of capital is required during the first 12 months of the loan. Repayments of £833.33 wlll be made monthly commencing in Oclober 2021, with Interest payable in arrear8 al a fixed rate of 2.5 /0. 10. MOVEMENT OF FUNDS B•lAnc• •t 18ept•mb•r 2020 B•l¥nc• At 31 Augu•t 2021 Incoming resources R88OUfCaS Tran8l•rs Do•lgn•ted fund• Fixed asset8 Capital fund 225,100 6.207 161,0881 170,221 G•neral fund• 157,284 1,299,183 11,325,842) 130,805 TOTAL FUNDS 382 364 1 386 928 300 828 PRIOR YEAR MOVEMENTOF FUNDS B•l•nc• #t 1 $optemb¥r 2019 In￿mIng resources Re80urce8 ewended Transfers 31 Augu•t 2020 O••lgnat•d fund• Fixed assetg Capit81 lund 271,461 38.234 182,5951 225, 100 G•n•rAI fund• 348,210 1.535,732 11,726,678) 157.264 TOTAL FUN08 819 671 1571966 1809 27J 302 364 18 BLUECOAT SPORTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2021 11. ALLOCATION OF NET ASSETS BETWEEN FUNDS Tanglbl• ffix•d Not eurr•nt ¥•$9ts *88•t8 Credltors du• aft•r more than on• y•ar Total 2021 General fund8 171.442 140,837) 130,005 Designated fund8'. Capi181 Fun¢J 170,221 170,221 170.221 171,442 40,837 300,826 PRIOR YEAR ALLOCATION OF NET ASSET8 BETWEEN FUNDS T•ngSbl• Cr•dltorn du• flx•d N•t ¢urr•nt •ft•r mor• a•sots Ihan on• y••r Total 2020 General fund8 157,264 157,204 De8ignaled fund8', Gapilal Fund 225,100 225,100 225,100 157,284 382.314 12. RELATEO PARTY TRANSACTIONS The Charftable Company rented the sports cenlre and laundry to ch￿st,8 Hospitsl for £323,400 (2020.. £288,750} and £9.540 {2020.' £9.450) respectively. Chrlsvs Hospilal recharged expenses totalling £79,00012020'. £66,000) to the Charitable Company. This included £41,000 relating to key managemenl salaries12020.' £27.000}. No Trusteè received r8mun8ratlon during the year12020'. £nlll. 19 BLUECOAT SPORTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2021 13. CHRIST'S HOSPITAL PENSION SCHEMES The Charitable Company 18 a partlclpating employer in the Christ's Hospital Pension Scheme {th6 Scheme), a defined benefit scheme, to which o)ntributions a￿ made by both employees and employers. The Scheme w88 closed to new members with effect from 31 March 2005. The Scheme is a multl-8mployer sch&me and as such the Charitable Company18 unable to Identify tts share of the underlylng a8set8 and Ilabililie8 8$ each employer 18 exposed to actuarial risks aswciated with the currenl and former employees of the other entltias participating in the Scheme. Member contributions are 6.5 /D of salary for those members who have an accrual rate of1180th of ffinal salary for each year of 8eThice, and 40/0 for those who have an accrual rate of 111001h Contributions P8yable by employers are 24.30h. plus an annu81 deficit-reductlon contribution, which is paid by Christ's Hospital Found8tion. The deficit-reducts'on payment is in accordance wth an agreed schedule, allowing the deficit to be elimlnalod by 31 MarGh 2035. The basis of contribullon to the Scheme 18 8P8dfied in 8 8ch6dule of contribution8 agreed with the Scheme Trustees 8nd certffied by the actuary on 30 March 2021. The last full actuarial valuatlon of the Scheme was carrled out with an effective date of 31 March 2020. Employ8T contrlbutlon$ for the year ended 31 Augu8t 2021 were £6,317 (2020.. £5,354). For s18ff not in thls Scheme, the Charitable Company offers a stakeholder pension 8cheme with Leg81 and General. Employer contributions are currently set at the statutory mlnlmum of 39h. Employer ¢onlribution8 totslling £16,207 {2020: £18,020) vmre pald In reBpect of thls penslon sch8me for the year. 14. FINANCIALIN8TRUMENT8 Total 2021 Total 2020 Financial ag80ts measured al ornortiged ce81141 Financial liabili1188 rnBaBur•d al amorti$ed eosl Ibl 348,722 277,373 1229,7681 (701,542) 118,964 175,831 IA) Finonciil 8159ts indude cash. 8horl term depoiiti, Ir•Je d•blor8. other deblor8, 8c¢rued inrAJrn and arnoun18 due from ol th• Christ's Pb8pilal group. Ibl Finanryal liabilits'es include Ir8d• and other cfedllors and afft)unl8 due lo m&mbgr8 ol the Christs Fk)spilal group. 15. ULTIMATE PARENT UNDERTAKING Bluecoat SkX)rts is a 'controlled' charity insofar as Christ's Hospital, a charity registered in England and Wales {number 11200901, controls the appointment of the majority of the Trustses. This 18 the largest and smallest group into which the Charflable Company is consolidated. A copy of the accounts can be obtsined from the Finance Director, lh8 Counting House, Christ's H08Pital, Horsham, West Sussex, RH13 OYP. Christ's Hospital's objects and principal actiwlies are: the advancement of education of children, principally for the benefit of those families in social, financial or other specrfic need, by provision of a school for boys and girls,. and the undertaking of ancillary 8du¢alional and other associated adivities for the benefit of the communrty. 20