SANDWELL LEISURETRUST (A Company Limited by Guarantee) REPORT AND FINANCIALSTATEMENTS for the year ended 31 March 2024 Company Registration No. 05011501 Registered Charity No. 1102431 CONTENTS TRUSTEES, REPORT................................................................................................ GOVERNANCEAND RISK...................................................................................... CORPORATE RESPONSIBILITY............................................................................... STRATEGIC REPORT................................................................................................ KEY HIGHLIGHTS.................................................................................................. MARKETINGAND DIGITAL..................................................................................... SANDWELLACQUATICSCENTRE........................................................................ PUBLIC HEALTH AND PHYSICAL ENGAGEMENT................................................... OURSTAFF......................................................................................................... OURCUSTOMERS.............................................................................................. AWARDS............................................................................................................ 20 FUTURE IMPROVEMENTS.....-.............................................................................. 20 OUR CENTRES...................................................................................................21 RESERVES POLICY.............................................................................................. 21 FINANCIAL PERFORMANCE................................................................................ 22 EMPLOYEE CONSULTATION AND DISABLED EMPLOYEES...................................... 22 GOING CONCERN...............-.............................................................................. 23 FUTURE DEVELOPMENTS.................................................................................... 23 STATEMENTOFTRUSTEES. RESPONSIBILITIES..................................................... 24 INDEPENDENT AUDITORS. REPORTTOTHE MEMBERSOFTHETRUST.................. 25 STATEMENTOF FINANCIALACTIVITIES.................................................................... 29 BALANCE SHEET........................................................................................................ 30 STATEMENTOF CASH FLOWS................................................................................... 32 NOTESTOTHE FINANCIALSTATEMENTS................................................................. 33 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 TRUSTEES, REPORT STATUS The organisation was incorporated on 9 January 2004, as a company limited by guarantee and was registered with the Charity Commission on 2 March 2004. The charitable company is established under a Memorandum of Association which establishes the objects and powers of the charitable company and is governed under its Articles of Association. OUR BOARD Our Board is made up of Non-Executives that provide strategic leadership to the Trust and LeadershipTeam and ensure good governance is adhered to forthe Charity. Board Members also have specialist skills and or interests that includes finance, marketing, HR and people management. legal and or business transformation. ALI our Board Members are self-motivated professionals who are commercially aware forward- thinking people, with an interest in sport and leisure, health and wellbeing, fitness, community development and customer service. TRUSTEES Sandwell Leisure Trust {"SLT"I has its own Governance Code and Conduct Policy for Board Members which adopts the Charity Commissions 7 Principles for larger charities to ensure high standards of Governance are adhered to. As the company is limited by guarantee, the trustees have no interest in any shares in the company. The trustees who served during the period and up to the date of this report were as follows: Trustees Appointed 01.12.04 04.10.10 04.02.14 11.09.18 11.09.18 26.01.21 19.11.21 17.05.23 17.05.23 09.06.23 17.05.23 17.05.23 Resigned 01.03.24 01.09.23 Valerie McFarland Lynda Bateman Pennyvenables (Chair) Paul Piddock (Vice Chair) P8mel8 Kaur Richard Mcvittie Thomas Barter HarryTurner Adrian Phillips Melanie Briggs Neil King Tracy Pearce 02.03.24 05.05.23 17.05.23 24.06.24 13.02.24 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 Trustees {Continued) Steve Washbourne Scott Thomas Dave Rosser Shahin Akhtar Appointed 22.01.24 25.04.24 Resigned 26.04.24 26.06.24 t-th CHIEF EXECUTIVE Leadership Team (from May 2022 until April 2023: M Wildm8n, T Siviter, G Ellis and S Dillionl M Braithwaite (secondee from Sandwell MBC from 01.05.23) SECREfARY S Dillion REGISTERED OFFICE Tipton Sports Academy Wednesbury Oak Road Tipton DY4 OBS REGISTRATION A Company Limited by Guarantee, Registration: England & Wales 5011501 Registered Charity (England & Wales- Registered Number 1102431) AUDITORS RSM UK Audit LLP 103 Colmore Row Birmingham B3 3AG BANKERS Natwest Bank Merry Hill Centre Brierley Hill DY51QQ SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 GOVERNANCE AND RISK We are committed to achieving high standards of corporate governance throughout our operations. The Board leads and maintains full and effective control of the charitable company and its activities. The Board is responsible for matters of key strategic importance and delegates financial authority to the Chief Executive and other Trust Managers via a clearly defined scheme of delegation. In addition. the Board has delegated authority to the HR Remuneration Sub- Committee and the Chief Executive and agreed Sub-committees will be broughttogetherto deal with financelemployment and governance matters as required. Our Board Members also bring skills and experience to help drive our expansion. We operate a rigorous business planning process whereby corporate objectives and targets directed by the Board and agreed with Sandwell MBC I'SMBC'I cascade down the Trust's Business Plan, Action Plans and employees. personal objectives. This is fully embedded in our planning and budgeting cycles and is an integral part of our operation and performance. We have an established system for identifying, evaluating and managing the significant risks faced by the charitable company and a risk log is an integral part of the annuaL operational plan which is agreed by the Board. The Board Members have been actively involved in identifying and managing the risks to which we are exposed. The risk log is reviewed bythe Executive team every quarter and an updated version presented to the Board every six months. In addition. the log would be reviewed by the respective sub- committee and in the event of a significant occurrence which materially increases a risk. Our Memorandum and Articles of Association specify the number of Trustees required and lays down the duration of their terms of office. The number of trustees is kept under review by the Chief Executive and Company Secretary. We maintain an open advert for new trustees via the company website and active recruitment campaigns are undertaken when it IS anticipated that trustee numbers are likely to reduce. In line with best governance practice, we put in place a comprehensive induction programme for8ny new Board Members. In addition to formaltraining, this provides access to an online resource pack and web portal. Annual reviews for individual Board Members are available with the Chair, and there is also an Sppraisalscheme and a process for Board performance and effectiveness. The Trustees and the Management Team make up the key management personnel of the charity in charge of directing, controlling, running and operating the Trust on a day to day basis. All Trustees give their time freely (details of reimbursed expenses are included in note 5). The pay of the Chief Executive (secondee) is determined by the local authority. The other members of the Trust Management Team are granted pay awards in accordance with their contract of empLoyment. CORPORATE RESPONSIBILITY Health & Safety {"H&S") We take our duty of care to all those who work or visit our facilities extremely seriously and in orderthatwe continue with the healthy culture supporting Health and Safetywithin the Trust, we seek independent advice from our external provider. SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 The Board has agreed a Health & Safety PoLicywhich sets the strategic direction forthis area. We have a Joint Health & Safety Consultative Committee with the Trade Unions. which meets regularly to discuss and resolve health and safety issues. Environment SLT is committed to reducing its carbon footprint and impact on the environment. We recognise the importance of protectingthe environment and have installed a number of measures to reuse and recycle trade waste and consumable materials. We have also installed Combined Heat and Power {CHP) units at some leisure facilities. These units enable energy to be used more efficiently by converting excess heat into power to support the running of the facility. We work in partnership with our suppliers, local businesses and continue to benchmark ourselves within the leisure industryto develop newways of working and adopt best practice. We also workwith EnergyAnalysis companiesto optimisefurther opportunities forenergysaving and eff iciency. Our sport and leisure centres have received Sandwell's Business Environmental Charter Award ranging from Bronze to Gold standard. This Award recognises the commitment by staff in reducing the centre's impact on the environment. This also demonstrates the sites commitment to supporting environmental issues at the facility and those of Sandwell as listed in Agenda 21. THIRD PARTY INDEMNITY PROVISION FOR TRUSTEES Qualifying third party indemnity provision is in place for the benefit of all trustees of the charity. STATEMENTTO DISCLOSURE OF INFORMATION TO AUDITORS The trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each of the trustees have confirmed that they have taken steps that they ought to have taken as trustees in order to make themselves aware ot any relevant audit information and to establish that it has been communicated to the auditor. STRATEGIC REPORT OUR PURPOSE Sandwell Leisure Trust ISLT) is a non-profit distributing organisation which means we reinvest 100 % of any surplus to improve. maintain and deliver quality services for the whole community, allowing local residents to be more physically active and improving their overall health and wellbeing. The objects of the charity are: To provide or assist in the provision of facilities and services for recreational, sporting or other leisure time occupation in the interests of social welfare, such facilities being provided to the public at large save that special facilities may be provided for persons who by reason of their youth. age. infirmity or disability. poverty or social or economic circumstances may have need of special facilities and services. SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 To advance the education and lifelong learning of the public" andlor To promote and preserve good health through community participation in healthy recreation. and/or Such other charitable purposes beneficialto the community consistent with the objects above as the Trustees shalL in their absolute discretion determine. With an ongoing cost of living challenge and remanence of the energy crisis. it continues to be a difticult commercial climateforthe leisure industry. We are pleased to see consumer confidence returningto our leisure sites and are aimingto provide a wide range of seNices to ensure all users have widely accessible services to enjoy. Notwithstanding these challenges, Sandwell was delighted to announce the off icial opening of Sandwell Aquatics Centre in July 2023, located in the heart of Smethwick and replacing much loved. but dated 1930's swimming pools. This new world class legacy aquatic and leisure facility used every day of the 2022 Commonwealth Games, now serves as a fantastic sport, leisure and fitness facility forthe wider community and hosts a range of regional and national aquatic events. Our customers are at the heart of everything we do, it is vital we continue to demonstrate the social impact we make by showcasing the testimonials and feedback of how the Trust and Sandwell Metropolitan Borough Council ISMBC) continues to change people's lives. Sandwell Council's vision is to create a more physically active Sandwell whilst driving the continuous improvement of key PubLic Health outcomes, SLT plays 2 leading role in the successful delivery of this vision and achievement of these outcomes. We also vaLue and recognise our key partnership with SandweLI Council and Public Health to serve the communities of Sandwell. DIRECT AND PUBLIC BENEFITS The direct benefits that flow from SLT'S overall purpose is to improve the health and well-being of the wider community in Sandwell. reduce the social isolation of its citizens through group physical activity and deliver sustainable sport and leisure services for future generations to enjoy. The public benefits that flow from this purpose are: an enhanced quality of life and sense of well-being through engagement with and participation in activities and events that bring people together, leadingto improvements in physical and emotional welL-being, quality of life and a more stable and cohesive community. increased opportunities to engage in new physical activities that bring people together, leadingto greater social cohesion and fulfiLment" enhanced active citizenship and involvement in community life. IDENTIFYINGAND MEASURING BENEFITS These benefits can be identified through social value, case study examples of how SLT is changing people's lives and measured by the sustained increase in participation in physical activity, sport and leisure throughout Sandwell. SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 ARISING HARM No harm arises from SLT'S purpose, the beneficiaries are the general public and locally-based community and voluntary organisations. and that no private benefit arises from these purposes. The objects of SLT are to promote the benefits without distinction of sex, race or political, religious or other opinions. SLTwill where possible use local suppliers and employ people from the diverse local community therefore supporting the local economy of Sandwell and will adopt eff icient and environmentally friendly processes to optimise the best possible use of resources. Leadership Team Mark Braithwaite, Chief Executive Officer Sonia Dillion. Finance Manager & Company Secretary Mark Wildman, Head of Operations Gemma Ellis, Head of People Sean Mitchell, Head of Commercial Sandwell's Vision 2030 Ambition 2.. Sandwell is a place where we live healthy lives and live them for longer, and where those of us who are vulnerable feel respected and cared for. KEY HIGHLIGHTS Total centre visits- 2,224,742 Total Fitness Members- 10,051 (76% grovrth) Total Swim Lesson Members- 5.407 {29 % growth) Over 300,000 group exercise participants Launched NewSLT App 4 11,319 users DigitaL improvements -> 5.9k Increased monthly website visits Awarded ROSPA Health & Safety Order of Distinction Successful opening of the SandwellAquatics Centre Introduced a popular diving and events program SOCIAL VALUE Over 2023124 SLT'S 'social value, remained better than the UK leisure sector average and within the top 30% nationwide. Sandwell Leisure Trust is heralding its key headlines, independently verified of: Total social value across the sites in 23124 is at £11.36 million Social vaLue was generated from nearLy 100K participants with the vast majority coming from Sandwell area Average sociaLvalue per person is within the top 65% of the sector across all sites. SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 68.5 % of participants were from IMD groups 1-3 (the most deprived groups}. far higher than the sector average of 25.3%. Generating and delivering nearly £11.4 million of social value" back to Sandwell. This figure highlights the continued recovery and confident return to physical activity in Sandwell, which is above the average standard for the industry. The Social Value report quantifies and benchmarks the contribution sport and leisure services make on four main categories: PhysicaL & Mental Health Subjective Wellbeing Individual Development Social & Community Development "We are delighted to demonstrate how leisure in Sandwell is contributing back to the borough. Social Value is a key measure to help understand how participation in physical activity is improving health, improving educational attainment and reducing crime." Mark Wildman, Head of Operations Sandwell's Vision 2030 Ambition 2.. Sandwell is a place where we live healthy lives and live them for longer, and where those of us who are vulnerable feel respected and cared for. MARKETING AND DIGITAL DIGITAL MARKETING In June 2023 Sandwell Leisure Trust partnered with TA6 to develop and implement a strategic annual marketing campaign plan, supported by monthly pay-per-click advertising. Itfocussed on campaigns that connected with the LocaL community and inspire people to become physically active. Key campaigns include: SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 July-August 2023- Festival of Fitness Festival of Fitness was designed to align with the launch campaign of SAC and to increase participation and memberships across the sites during the summer months. this SUMMER OF FITNES Sept-oct 2023- Make a Difference The Make a Difference campaign was run across both fitness and swimming lessons. The concept was to show how SLT is making a difference to the people of S8ndwell. AKI DIFFERENCE FORCOMMUNrrY 10 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 New Year 2024- Be Inspired The SLT members were the stars of the New Year campaign that centred around a main testimonial video showcasing their success stories. We also ran a'just Add Water, campaign to promote swimming lessons. &opT" MOVE. CONFIDENCE GROWSI WEBSITE £17.549 £0.34 Avg. CPC 2.83VI £8.1S Cost-Per-Mille ICPMI Investment Advert impressions 61,788 Website Traffic from Paid Ads 11.080 £1.58 Conversions from Paid Ads Average Cost- Per-Action (CPA) 11.080 conversions came from various sources: Join Clicks. Leads. Book Clicks & CaLlslContacts' Avg. CPA was solid at £1.58 & below benchmark across both platforms. and Costing just £6.16 per 1.000 impressions {CPM). The website was used by 216,757 unique users and saw 1,306,394 different page views. The average time spent engaging with the website wasjust over 2 minutes. SLT APP The SLT Get Active App was first launched in July 2023 giving centre users an easy way to book fitness classes and other activities. In addition to receiving the latest news from the centre, members can receive push notifications for any service updates. access all their bookings. update personal details. read more about centre facilities. link directly into Myzone & Les Mills fitness, and get instant social media links. 11,319- App users 675,947 - Module opens SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 SANDWELL ACQUATICS CENTRE Opening in July 2023, Sandwell Aquatics Centre (SAC) quickly became a community hub. Welcoming circa 16,500weekly users, it serves a diverse communitywithin Sandwell, with 66.50/0 from IMD 1-3 and 530/0 female occupancy. By March 2024, 516,162 visitors had enjoyed its facilities. The centre balances fitness, swimming, and innovative programming to deliver the Commonwealth Games legacy. It hosts regional and national competitions, merged Local swimming clubs, and works with 46 schools, with over 2500 children enrolled in swimming lessons. With over 5000 fitness members, it offers inclusive activities like Bhangra, ladies-only classes, and LGBTQ sessions. Social value generated from 20,986 participants indicates that 85 % of use is from the Sandwell borough with a social value per person that places SAC in the third of this sector. The success of SAC stems from community engagement. accessibility features. and a focus on underrepresented groups. It aims to break socio-cultural barriers and promote physical activity for all. The team at SAC aims to gather customerfeedbackfrom v8rious platforms and has introduced 8 Membership Forum for active members to have their voices heard in shaping the programming and creating a positive user experience for all residents. Since opening, SAC has hosted over 21 events with 9 successful regional competitions, along with major events including ESSA, County Champs, EngL2nd Badminton and Aquatics GB Diving Championships which seNed as the British Olympic trials. PUBLIC HEALTH AND PHYSICAL ENGAGEMENT PORTWAY LIFESTYLE CENTRE Portway Lifestyle Centre continues to provide a fully accessible Health, Leisure and Wellbeing Centre for everyone by bringing health. leisure. and social care under one roof from earlyyears all the way through to older adults. Portway provides 'a whole life. approach, to health and social care service delivery for the residents of the borough and the wider community. The centre maintains its commitment as a Centre of Excellence for People with Disabilities, by ensuring that the building is fully accessible and striving to continue removing barriers that prevent active participation. Portway's activity programme differs slightly from our other centres, as priority is given during mid- week to individuals and local disability groups in Sandwell, through the Portway Pass scheme. 12 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 In 2023124. Portway Pass membership increased 30% on the previous year. The Portway Pass is a concessionary membership* that entitles Sandwell Residents with a registered disability free access to the centre during certain periods. Portway opened the new Live Well Studio in September 2023. The studio hosts 6 Innerva power- assisted machines which offer those with long-term health conditions and older adults. an effective exercise to improve mobility, strength, balance, flexibility and social wellbeing. The studio has had over 3,000 visits and is aLso used by Sandwell Visually Impaired and SMBC Adult Services. SMBC Adults Services team use Portway as a base for many of the Learning Disability groups. so there is a core group of approximately 30 who are using the centre on a daily basis. Other specialist groups and colleges also use the faciLity. The centre is seen Nationally as an example of 'Best Practice, and this year was shortlisted as a finalist in the prestigious UK ACTIVE 2023 Awards in the category. Equality. Diversity & Inclusion. Portway received some positive feedback from the panellists: 'It was amazing to hear all about the work Sandwell Leisure Trust have done at Portway Leisure Centre. It is evident that the Leisure Centre is delivering many extremely positive and accessible health & f itness in itiatives,. 'The centre has cLearLy benefitted from an amazing history and positive track record of delivering inclusive opportunities. PUBLIC HEATLH SLT Schemes supported through Public Health: Membership Type Members Visits Concessionary Scheme Members 2.409 8.179 Disability Users 646 6,929 Looked After Children & Families 262 1,375 Portway Pass Members 473 4,963 Free Swim Members 60+ & U18 32,685 56,048 Total 36,475 77,494 GYM REFURBISHMENTS Wednesbury Leisure Centre Over the last year we have completed a full refurbishment of the gym at Wednesbury Leisure Centre. including expansion of the free weights area. featuring more benches. plate load equipment, and additional cable machines. 13 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 Other additions were the installation of two Speedflex Blade machines. a unique piece of equipment to give a whoLe-body workout for users of all abilities. A new revamped functional area and new indoor cycles to support the successful group fitness programme. Tipton Leisure Centre Other essential repairs to flooring in Tipton Leisure Centre allowed us to also undertake a small refurbishment and expand the highly used free weight space at the facility along with equipping new cardio equipment. FREE SWIMMING IN SANDWELL Sandwell's free-swimming scheme is delivered by SLT at pools across SandweLI. This initiative helps residents aged 60+ and those aged 18 and under to access quality safe swimming locally in Sandwell. In 2023-24 there were 56,048 free swims delivered to those aged 18 and under or over 60. SCHOOLSWIMMING From September 2023 our School Swimming Programme resumed to deliver the Swim England School Swimming and Water Safety Charter scheme. We are now working with 79 schools in the Sandwell area. Wednesbury LC- 730 pupils. 17 Schools SandwellAquatics Centre- 3.980 pupils. 46 Schools Tipton Leisure Centre - 960 pupils. 18 Schools SWIMMING LESSONS Total number of schooL pupils attending lessons: 5.670 Number of people on the SLT Swimming Lessons programme APRIL 2023: 5,336 APRIL 2024: 5,750 Sandwell Aquatics Centre April 2023: 1961- ApriL 2024: 2543, Increase: 582 Pupils Wednesbury Leisure Centre April 2023: 1048- April 2024: 1280, Increase: 232 Pupils 14 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 Tipton Leisure Centre April 2023: 1303- ApriL 2024: 1508, Increase; 205 Pupils Portway Lifestyle Centre April 2024: 419 INDOOR TENNIS PROGRAM ATTIPTON SPORTS ACADEMY Our indoor tennis program is going from strength to strength with new sessions being launched to offer a greater variety of coaching to all ages and ability levels. We saw 370 children and 60 adults taking part in coaching sessions each week. along with another 200 people taking part in pay and playweekly court bookings. Future developments include the launch of pickleball sessions to our program in 2024-2025. OUR HIGHLIGHTS Our 18 and under performance players took part in the'PlayYourWaytoWimbledon' events, with Casey Unitt and Harry Spear reaching the NationaL Doubles Final at Wimbledon and winning the overall event on the famous grass courts. We aLso moved further young players into our mini tennis orange/green futures {performancel session for those players aged 10 and underwho have excelled in their tennis squads. Once again, our tennis coaches visited the local schools to give young children a taste of fun tennis sessions, with vouchers/scholarships being handed outfor all children to play moretennis back at the indoor centre. Our tournaments and competitions program is consistently growing, with more events being added to the calendar to offer competitive opportunities for various age groups. We now look forward to growing the tennis program further and re-introducing high level events. Sandwell's Vision 2030 Ambition 1.. Sandwell is a community where our families have high aspirations and where we pride ourselves on equalityof opportunity and on our adaptability and resilience. ACTIVITIES HAF (Holiday Activities & Food) camps and community outreachlschool sports We deliver Curriculum based PE in two local Sandwell Primary Schools on various days throughout the week, where we deliver to EYFS, Key Stage 1 and Key Stage 2. SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 As well as event bookings atTipton Sports Academy (TSA) forvarious schools and'SchoolGames' sports such as cricket. tennis. athletics. and Boccia. over 29 schools attended TSA to host their school sports days. These bookings have provided sport for children from Sandwell and across the Black Country region. These have been highly successful and feedback from schools and pupils has been excellent. Our coaches provide regular weekly sessions for home school groups helping support their PE requirements and focusing on health and welL-being. These groups use our facilities at TSA. During this delivery we reached 50 children per week of a wide age range (Key stage 1- Key stage 4). The HAF programme {a government funded initiative in conjunction with the DfE and local authorities) is continuingto be a success with our delivery of this programme at TSA and is going from strength to strength. This programme allows us to deliver holiday activities and food education to families, as well as providing a healthy meal each dayto eligible benefit related low- income families. The project running here at TSA contributes to ambition 1 and 2 of the Sandwell 2030 Vision. It ran at Easter, Summer and Winter, with 40 children per day signed up for a 4-hour, 4 daya week session. Tipton Sports Academy also delivered a 'FREE' three-day holiday camp for children who live in Sandwell during May half-term, which was funded by Asda's U18 Better Starts Grant. It was a success with 46 children attendingthe camp throughout the week and all of them had a fabulous timel Through partnership work this year. we have helped deliver holiday activities within local Sandwell parks. allowing the families and young people of Sandwell to access structured physical activities and sports in local green spaces during school holidays. This programme was successful and reached over 40 local families. Aqua Mayhem Following a refurbishment, the new aqua run now has 6 amazing zones instead of 5, which all offer individual challenges to your balance & courage. Conquerthe Mangle. Battle Battens. Spiky Ridge and Tunnel of Thorns before tryingto get past the Wipe Out Wall then finally slide down the Dual Slide into the large pool. We have had over 1,000 bookings on the aqua run, including 30 parties. Sandwell's Vision 2030 Ambition 8.. Our distinctive towns and neighbourhoods are successful centres of community life, leisure and entertainment where people increasingly choose to bring up their families. OUR STAFF We currently employ 419 staff as at the year end (2023: 456)" 55.19 % of contracted staff are Sandwell residents" an increase of 2.5 % compared to the previous financial year12023: 52.63 % ); and Staff turnover was 7.37% during the year {2023: 6.3 %). 16 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 The Trust has invested £26.000 in staff learning and development and £18.500 on staff health and well-being. This year has seen everyone. from the Board to front line staff. strive to ensure that the organisation remains in a strong position. Despite the continued cost of living challenges. the Trust continues to support and invest in its workforce supporting them both personally and professionally. We are proud to continue to offer all our staff access to a Health and Wellbeing Service provided by Westtield Health whose service includes: "Together All" a safe online space to explore things that are troubling and get the support. in confidence. 24 Hour Advice and Information Line, including access to a Health e-Hub DoctorLineTM - 2417 access to a GP. Westfield Rewards- Makingemployees, salaries gofurtherwith discountsfrom over 1.000 leading high street and online retailers. And, together with our team of Ment81 Health First Aiders, we aim to continue to drive forward positive conversation around mental health across the organisation. THRIVE ATWORK A new accreditation model, fully funded by West Midlands Combined Authority, provides a structured approach to workplace health and wellbeing, underpinned, and assessed under 5 themes: Enablers of Health. Mental Health" Musculoskeletal Heath; Lifestyles. External Risks to Health. There are 4 accreditation levels: Foundation, Bronze, Silver, and Gold with gold demonstrating that an organisation has become a specialist in the field, and this is the levelthatthe Trust aims to achieve. The aim of the framework is to drive results to impact the bottom line whilst creating a healthier and happier workforce. The Board Approved the implementation of the new assessment model in August 2023, a health and well-being survey of the workforce has been undertaken. and with the use of the results of this survey the Trust is currently working towards achieving Foundation Level to demonstrate our commitment to improving workplace health and well-being. PARTNERSHIPWORKING We have continued to work in close partnership with SMBC and Swim England by hosting a second Recruitment AcademyforSwimmingTeachers. to try and address the workforce shortage to enable more opportunities to be offered to the public to learn to swim across the borough. 17 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 OUR CUSTOMERS MEETTHE MEMBER-GEORGIA Our team had the pleasure of meeting with Portway Lifestyle member Georgia at an early booking Bootcamp. Georgia shared with us her fitness journey story after a brilliant session that took place under a huge late summer rainbow. Can you confirm your full name, occupation and the town you live in? My name is Georgia Arapitsa, l am a musculoskeletal physiother8PiSt working for the NHS and I live in Rowley Regis. Perhaps, you may knowthatthrough the NHS service, we offer gym sessions to our patients at Portway every Wednesday and l am actuallythe team leader of the gym service there. Tell us aboutyour fitness journey. "I consider myself to be fit as I have been doing exercises since I was a teenager, but always at an amateur level. l joined SLT in June 2018. Whilst I had 1.5 year gap due to Covid and maternity, I returned to the centre around January 2022. l am not one of those who presents with a massive difference in physical appearance through my fitness journey and this never has been my goal. l exercise because it keeps me healthy and happy. Due to my profession where I prescribe exercises to my patients. I know the various benefits of exercises on a physical. mental and social level." Is there a particular reason thatyou use Portway Lifestyle Centre. "Portway is close to where I live but l Like the idea that it is a community gym where all members of the family can be involved in different activities. It is clean and organised. with friendly staff throughout the centre. l am very familiar now with the instructors. classes and even the gym equipment which make the training there a very relaxing activity for me." What are your favourite sessions and why. I have lots of favourite classes! Gym X takes the 1st place I think. HIIT classes and BODYCOMBATIBODYBALANCE. How does SLTmeetyour needs? Have you had any 1 to 1's. Definitely, as it has a variety of classes that you can undertake meeting everyone's baselines, family activities with family fitness/swimming lessons for the little ones and other activities such as skating and football. I have 1 to 1 sessions when I need further guidance on Deadlifting. 18 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 Do you have a favourite instructor who manages to get that extra bit of motivation from you. I have 3 instructors that I feel suit me the most in different ways. Garfield is a fantastic instructor who motivates you to break your limits every time. He is almost military fit and our bootcamp leader. Luke is very energetic and passes his positive energy through his cLasses. You cannot go to his classes without leaving with a smile. Amy is very cool, supportive duringthe classes and super strong. What motivates you to keep goinf The team of course, this includes the instructors and the other members of the classes that are always friendly and supportive. I thinkthe one pulLs the other to keep attending the classes. your attendance rate is always higher when you have gym buddies. Can you offer any advice for anyone thinking of starting a healthier lifestyle? Go for itl you will have the support you need. you will never feel under pressure for any kind of competition or feeling awkward, and you will definitely meet nice people. Do you follow SLTon social media, what do you see as the benefits? Yes. Benefits are to try and promote a healthy lifestyle to others and to educate the public about their options. It is fun as well if you like to upload funny gym Instagram stories, which can be part of your ongoing motivation. BE INSPIRED CAMPAIGN Hear from our members Our members have amazing stories to share about their journeys with us. Watch ourvideo from our Be Inspired Campaign to discover how SLT is making a difference in the local community: ht AA PROINSIGHT REPORT Our recent Proinsight Report has revealed key areas for improvement that we are committed to addressing. We understand the importance of: Human Connection and Engagement: Ensuring our customers feel a strong sense of community and belonging. Seamless Experience: Providing an effortless and enjoyable experience from start to finish. We are dedicated to enhancing these aspects to ensure every member feels valued and connected. 19 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 S¢LYe 800 735 17 1th).0 1(p)O Icfj.o I￿0 810 70D ILWQ ￿ '.WQ 810 Findings from Proinsight Report. AWARDS SLT MAINTAINS SAFE SERVICES IN SANDWELL Sandwell Leisure Trust (SLT) is proud to have once again be awarded the highest possible accolades in the internationally renowned Royal Society for the Prevention of Accidents (ROSPAI 2024 Health and Safety Awards. SLT was the first Leisure Trust to achieve the ROSPA Gold Award- and also the President's Award (10 successive Golds)-This year SLT has again been awarded the'order ot Distinction. by ROSPA for successfully retaining the Gold Award for 18 consecutive years. This year {20241 Sandwell Leisure Trustwas aLso the sole winner of the'Leisure SafetyTrophy'the top award granted under the leisure category. This is a fantastic achievement for the organisation and demonstrates that SLT make Health and Safety a priority in the delivering of safe services across the borough. Having a solid Health and Safety culture embedded into the work force, the commitment and hard work of all the employees is what makes this possible. FUTURE IMPROVEMENTS The upcoming year presents a unique opportunity for growth and development in our centres. Our strategic plan focuses on enhancing customer experience, expanding our service offerings, embracing technological advancements, and promoting sustainabiLity. Key improvements include: Facility Upgrades: Refurbish existing facilities. including Portway Lifestyle Centre, to modern standards including updated equipment and enhanced accessibility features. Improved Programs: Introduce diverse fitness classes, wellness programs, and activities tailored to various age groups and interests. Digital Integration: Develop our digital ecosystem by appointing a new Leisure Management System, ensuring easy booking, membership management and rewards. Green Initiatives: Invest in energy-eff icient systems, waste reduction programs, and sustainable sourcing of materials. Partnerships: Collaborate with local schooLs. businesses. and Public Health to expand our reach and community impact. Staff Development: Offer continuous professional development opportunities to ensure staff remain motivated and skilled. 20 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 OUR CENTRES Hadley Stadium, WiLson Road, Smethwick, B66 4NL {1972) Harry Mitchell Leisure Centre, Broomfield, Smethwick, B67 7DH11975) Tipton Sports Academy. Wednesbury Oak Road. Tipton. DY4 OBS {19981 Portway Lifestyle Centre, Newbury Lane, Oldbury, B69 1 HE12013) Tipton Leisure Centre, Alexandra Road, Tipton, DY4 8TA {2013) Wednesbury Leisure Centre, High Bullen, Wednesbury, WS10 7HP (2015) Sandwell Aquatics Centre. Londonderry Lane. Smethwick. B67 7EW (20231 Haden Hill Leisure Centre- Currently closed for redevelopment, opening Oct 2026 INVESTMENT POLICY We have in our Memorandum & Articles of Association the power to make investments to fund the activities of the Trust. The level of investment is to be determined by the level of surplus cash available compared with the demand for resources required for the operation of services provided by the Trust. We invest any surplus cash (not needed to meet immediate liabilities) with SMBC Corporate Finance under a Service Level Agreement. The SLA guarantees the Trust a rate of 0.3 % below base rate on the day of investment on all balances and is virtually risk free. RESERVES POLICY The Board's current policy is to maintain an uncommitted reserve of £900k to protect against downside cost risks identified in our risk register. We are currently using planned accumulated surpluses to help meet the management fee reductions. During the year ended 31 March 2023. the board approved to re-designate reserves totalling £1.929.000 for grant making activities. At the 6 July 2023 board meeting. the board approved a reduction in the reseNes of £429.000 to £1.500.000. As at 31 March 2024, the charity had uncommitted reserves (being net current assets, less restricted and designated funds) of £862,881 (2023: £430,023). A key element of the overall financial position of the Trust is the long-term affordability of its pensions, obligations to its employees. FRS 102 calculations within the financial statements are based on returns on Government Gilt Edged stock (gilts). At the year end. because market interest rates are at a 30 year low gilts are showing a very low rate of return. The pension charge calculations within our accounts are based on this calculation. FRS 102 is based on taking the current rate of return, whateverthat is, and assuming it will be maintained for thirtyyears. During a down-turn, this can produce what could be considered an overly pessimistic forecast of pension fund returns and potentially an overstated estimate of pension fund liabilities within the statutory accounts. 21 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 The West Midland's pension fund actuary calculates employer contribution rates using a wider range of assets that better reflect current and future market conditions. These calculations are therefore much more driven by the overall long-term state of the market and the result is that they assume lower levels of contribution from the trust are needed to meet the pension fund obLigations. A risk previously facing the charity was the maintenance of adequate funding for the charity's pension liabilities. The financial statements report the share of the Local Government Pension Scheme asset has been restricted to nil on the Charity's balance sheet in line with the requirements of FRS 102 and the scheme funding rules. There is limited risk due to the current asset position of the scheme. but shouLd this return to a liability, the risk is considered mitigated bythe deficit recovery plan with the West Midlands Pension Fund. FINANCIAL PERFORMANCE A set of KPI'S are agreed and monitored by the Board. The results for the year are show in the Statement of Financial Activities on page 24. Income increased in 2024due to additional managementfees. growing memberships. swimming lessons and the performance of the Aquatics Centre which opened July 2023. Expenditure increase was primarily due to the pay award and, redundancy and compensation payments made as 8 result of Haden Hill which closed March 2023. The Statement of Financial Activities shows net income for the charity of £174,568 (2023: net expenditure of £2.187.440) before actuarial adjustments required to account for participation in the local government pension scheme. The net result after these adjustments was a net decrease in funds of £5.523.432 {2023: net increase in funds of £20.286.5601. At 31 March 2024, the charity had net assets of £3,071,773 {2023: £8,595,206) of which £91,260 were restricted funds {2023: £21,077>, £1.480,513 were held as unrestricted charitable funds (2023: £1,101,510), and a nil position (2023: surplus of £5,543,000) represented the charity's share of the asset in the local government pension scheme. EMPLOYEE CONSULTATION AND DISABLED EMPLOYEES SLT encourages the involvement of all employees in its management through regular meetings that take place at a local site level through to senior management and board of trustees. SLT also recognises a number of Trade Unions and has a formal agreement which enables the Trust Management Team to meet with them jointly on a quarterly basis to discuss and consult on employee related matters. SLT will and does employ disabled persons wherebythe individual has demonstrated the ability to undertake the role either with or without any reasonable adjustments. Disabled candidates are given full and fair consideration when such vacancies arise and reasonable adjustments are considered and made to support candidates through the recruitment process through to employment if they are successful. During employment, the trust seeks to work with employees, taking into account their personal circumstances, to ensure appropriate training and development opportunities are available to enable them to reach theirfull potential. 22 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 GOING CONCERN At the time of approving the financial statements, the trustees have a reasonable expectation thatthe charitable company has adequate resources to continue in operational existence forthe foreseeable future. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. The Trust has net assets of £3,071,773 (2023- net assets £8,595,206) including a net nil pension fund balance12023: asset of £5.543,0001. Following the agreement between the Council and the trust, a Supplementary Agreement to the original Management & Funding Agreement between Sandwell MBC and Sandwell Leisure Trust was agreed on 14 July 2023. The Supplementary Agreement ensures continued financial support from the council. FUTURE DEVELOPMENTS The upcoming year presents a unique opportunity for growth and development in our centres. Our strategic plan focuses on enhancing customer experience, expanding our seNice offerings, embracing technological advancements, and promoting sustainability. Key improvements include: Facility upgrades- refurbishment of existing facilities. including Portway Lifestyle Centre, to modern standards including updated equipment 2nd enhanced accessibility features. Improved programs: introducing diverse fitness classes, wellness programs and activities tailored to various age groups and interests. Digital integration: developing our digital ecosystem by appointing a new Leisure Management System, ensuring easy booking. membership management and rewards. TRUSTEES REPORT APPROVAL This report has been prepared in accordance with the Statement of Recommended Practice - Accounting and Reporting by Charities. In preparing this report, the trustees have had due regard to the Charity Commission Guidance on public benefit and confirm that the main activities detailed in the Strategic Report further the charity's purposes for the public benefit. The Trustees, Report, incorporating both the Strategic Report and the Governance Report, is approved by the Trustees, by whose authority it is signed below: P VENABLES Chair Date: 16 December 2024 23 SANDWELL LEISURE TRUST TRUSTEES, REPORT forthe yearto 31 March 2024 STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees (who are also directors of Sandwell Leisure Trust forthe purposes of company lawl are responsible for preparing the Trustees. 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 financialyearwhich give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, includingthe income and expenditure, of the charityfor that period. In preparing these financial statements. the trustees are required to: select suitable accounting policies and then applythem consistentLy' observe the methods and principles in the Charities SORP" make judgements and estimates that are reasonable 2nd prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements. and prepare the financialstatements on the going concern basis unless it is inappropriate to presume that the charitable companywill continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure thatthe financial statements complywith 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. 24 INDEPENDENT AUDITORS, REPORTTOTHE MEMBERS OFSANDWELL LEISURETRUST Opinion We have audited the financial statements of Sandwell Leisure Trust {the 'charitable company'l for the yearended 31 March 2024which comprise the Statement of FinancialActivities Ilncluding income and expenditure account), the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting standards, including FRS 102"The Financial Reportingstandard applicable in the UK and Republic of Ireland" {United Kingdom GeneraLly Accepted Accounting Practice). In our opinion the financial statements: give a true and fairviewof the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources. incLuding its income and expenditure. for the year then ended. have been properly prepared in accordancewith United Kingdom GenerallyAccepted Accounting Practice; 2nd have been prepared in accordancewith the requirements ofthe Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing {UK) (ISAS {UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethicaL requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees. use of the 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 material uncertainties relating to events or conditions that, individually or collectively, may c8St significant doubt on the charitable company's abilityto continue as a goingconcern for a period of at le8Sttwelve months from when the financial statements are 8Uthorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the information included in the Annual Report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not coverthe 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 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 financial statements themselves. 25 INDEPENDENT AUDITORS, REPORTTOTHE MEMBERS OFSANDWELL LEISURETRUST 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. Opinions on other matters prescribed bythe Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees, Report. which includes the Directors, Report and the Strategic Report prepared for the purposes of company law. for the financial year for which the financial statements are prepared is consistent with the financial statements: and the Directors. Report and the Strategic Report included within the Trustees. Report has been prepared in 8ccordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit. we have not identified material misstatements in the Directors, Report or the Strategic Report included within the Trustees. Report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to reportto you if, in our opinion: adequate 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 accounting records and returns- or certain disclosures of trustees, remuneration specified by law are not made. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees, responsibilities set out on page 21. the trustees (who are also the directors of the charitable companyfor the purposes of company lawl are responsibLe for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charitable company's ability to continue as a going concern. disclosing. as applicable. matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities forthe 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 (UK) WILI aLways detect a material misstatement when it exists. 26 INDEPENDENT AUDITORS, REPORTTOTHE MEMBERS OFSANDWELL LEISURETRUST Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, 2nd to respond appropriately to identified or suspected non- compliance with laws and reguLations identified during the audit. In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified duringthe audit. However, it is the primary responsibility of management, with the oversight of those charged with governance. to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and forthe prevention and detection of fraud. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagementteam: obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the charitable company operates in and how the charitable company is complying with the legal and regulatoryframeworks. inquired of management. and those charged with governance. about their own identification and assessment of the risks of irregularities. including any known actual. suspected or alleged instances of fraud: discussed matters about non-compliance with l8ws and regulations and how fraud might occur including assessment of how and where the fin8nci81 statements may be susceptible to fraud. As a result of these procedures we consider the most significant12ws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP {FRS 102), Companies Act 2006, Charities Act 2011, the charitable company's governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees, Report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents. The most signiticant laws and regulations that have an indirect impact on the financial statements are those in relation to the Health and Safety at Work Act 1974. We performed audit procedures to inquire of management and those charged with governance whether the charitable company is in compliance with these law and regulations and inspected correspondence with regulatory authorities. The audit engagement team identified the risk of management override of controls and completeness and cut-off of non-membership income as the areas where the financial statements were most susceptible to materiaL misstatement due to fraud. 27 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SAN DWELL LEISURE TRUST Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates and performing substantive testing over the completeness and cut off of cash takings income. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 opinions we have formed. Anna Spencer Gray (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 10th Floor 103 Colmore Row Birmingham B33AG Date: 20/12/24 28 SANDWELL LEISURE TRUST STATEMENT OF FINANCIALACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) Forthe year ended 31 March 2024 Unrestricted Restricted Funds Funds Total 2024 Total 2023 Note Income from: CharitabLe activities Other trading activities Investments 12,423,757 346,194 171,544 171,728 12,595,485 346,194 171,544 10,077,343 407,339 54,699 Total income 12.941.495 171.728 13.113.223 10.539.381 Expenditure on: Raisingfunds 127,690 127,690 131,990 Charitable activities 12.709.421 101.545 12.810.966 12.594.831 Total expenditure 12,837.111 101,545 12,938,656 12,726,821 Net incoming resources before other recognised gains 104,384 70,183 174,567 {2,187,4401 Other recognised gains and losses Actuarial (lossl I gain on defined benefit pension scheme (5.698.000) 15.698.000) 22.574.000 Net movement in funds (5.593.616) 70.183 (5.523.433) 20.386.560 Funds at 1 Apri12023 8.574.129 21.077 8.595.206 (11.791.354) Funds at 31 March 2024 2,980,513 91,260 3,071,773 8,595,206 The income and expenditure forthe year arise from the charity's continuing operations. All gains and losses recognised in the year are included above. 29 SANDWELL LEISURE TRUST BALANCE SHEET As at 31 March 2024 Company Registration No: 05011501 2024 2023 Note Fixed assets Tangible fixed assets 617,632 671,487 Current assets Stocks Debtors Cash at bank and in hand 22,839 862.671 3,876,475 18,526 341,367 3,599,861 4,761,985 3,959,754 Creditors: amounts falling due within one year (2.307,844) (1,579,035) Net current assets 2.454.141 2.380.719 Net assets excluding pension scheme asset 3.071.773 3.052.206 Defined benefit pension scheme asset 5.543.000 Net assets including pension scheme asset 3,071,773 8,595,206 Represented by: Restricted funds 91,260 21,077 Unrestricted funds: General funds Designated funds 1.480.513 1,500,000 1,101,510 1,929,619 2,980,513 3,031,129 Pension fund 5,543,000 Total unrestricted funds 2,980,513 8,574,129 Total assets 3,071,773 8,595,206 30 SANDWELL LEISURE TRUST BALANCE SHEET As at 31 March 2024 Company Registration No: 05011501 The financial statements on pages 25- 42 were approved bythe board of trustees and authorised for issue on 16 December 2024 and are signed on its behalf by: fehhy Vehables PVENABLES Chair 31 SANDWELL LEISURE TRUST STATEMENT OF CASH FLOWS Forthe year ended 31 March 2024 2024 2023 Cash flows from operating activities: Net cash provided by/{used in) operating activities 188,660 (197,274) Cash flows f rom investing activities: Interest received Purchase of tangible fixed assets 171,544 (83,590) 54,699 18.9441 Net cash generated in investing activities 87,954 45,755 Increasel{decreasel in cash and cash equivalents in the year 276,614 (151,519) Cash and cash equivalents at the beginning of the year 3.599.862 3.751.380 Total cash and cash equivalents at the end of the year 3.876.475 3.599.861 RECONCILIATION OF NET INCOMEI{EXPENDITURE) TO NET CASH FLOWS FROM OPERATING ACTIVITIES 2024 2023 Net incomel(expenditure} as per the SOFA 174.568 12.187.441) Depreciation Lossl(profit) on disposal of fixed assets Interest received Ilncrease}IDecrease in stocks Ilncrease}IDecrease in debtors Increasel{Decreasel in creditors Defined benefit pension scheme 89,875 47,569 {171,544) (4,313) {521,304) 728,809 {155,000) 191,048 (5,4151 154,699} 121 25,787 130,675} 1,864,000 Net cash provided by/(used in) operating activities 188,660 {197,274} 32 SANDWELL LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 1. ACCOUNTING POLICIES a. GENERAL INFORMATION Sandwell Leisure Trust is a charity, registered with the Charity Commission in England and Wales, and a private company limited by guarantee, incorporated in England. The address of the Charity's registered office is Carnegie Building, Victoria Road, Tipton, West Midlands, DY4 8SR. Its principal activity is the managing of sports and leisure centres in Sandwell. b. BASIS OF ACCOUNTING The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015. The financial statements are prepared in sterling which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £ unless otherwise stated. Sandwell Leisure Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting poLicy. The principal accounting policies adopted. judgements and key sources of estimation uncertainty in the preparation of the financial statements are set out below: c. GOING CONCERN Atthe time of approvingthe financial statements, thetrustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. The Trust has net assets of £3,071,773 (2023: net assets £8,595,206) including a net nil pension fund balance (2023: asset of £5,543,000). Following the agreement between the Council and the trust, a Supplementary Agreement to the original Management & FundingAgreement between Sandwell MBC and Sandwell Leisure Trust was agreed on 14JuLy2023. The SupplementaryAgreement ensures continued financial support from the council. 33 SANDWELL LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 d. INCOME Other trading activities Income from the operation of catering facilities is included in income in the period in which the charity becomes entitled to the receipt. Income from charitable activities All income (predominantly from the operation of sports centres) is recognised in the period in which it is earned (that is. as the related goods or services are provided). Grants receivable Revenue and capital grants receivable are recognised in the Statement of FinancialActivities when conditions attaching to the grant are satisfied. Grants receivable for capital expenditure are maintained in a restricted fund to which depreciation of the relevant asset is charged. Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants wilL be received. Membership income Income from Membership is recognised overthe period covered by the Membership. Income from investment Investment income is recognised on a receivable b8SiS. Other income Other income is recognised as earned. e. EXPENDITURE Liabilities are recognised as expenditure as soon asthere is a legal or constructive obligation committing the charity to the expenditure. Expenditure is recognised in the period in which the liability is incurred. Expenditure includes attributable VAT, which cannot be recovered. Expenditure on charitable activities is allocated to the particular activity where the cost relates directly to that activlty. Where costs are attributable to more than one activity, the costs are apportioned across those activities on the basis of an estimate of their usage. Governance costs arethose costs incurred in connection with administration of theTrust and compliance with constitutional and statutory requirements. FUNDS Funds held by the Trust are either: Unrestricted general funds-these are funds, which can be used in accordance with the charitable objects at the discretion of the trustees. 34 SANDWELL LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 FUNDS {CONTINUEDI Pension fund {unrestricted) - these are funds representing the defined benefit pension scheme asset. Designated funds-these are unrestricted funds that have been set aside bythe Trustees for particular purposes. These funds are reviewed annu8lLy. Restricted funds-these are funds that can only be used for particular restricted purposes within the objects of the Trust. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each restricted fund is included in the notes to the financial statements. g. TANGIBLE FIXED ASSETS Individual fixed assets costing more than £1,000 are capitaLised at cost. Fixed assets are stated at historical cost, less accumulated depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets (excluding freehold land) at rates calculated to write each asset down to its estimated residual vaLue evenLy over its expected useful life, as follows:. Plant and Machinery Sports Equipment IT Equipment Office Equipment 7ye2rs 5ye8rs 3ye8rs 5 years The Trust charges a full year's depreciation in the year of acquisition and no depreciation in the year of disposal. Refurbishment works are capitalised and written off over the estimated life of the scheme from the date the project is complete 2nd open to the public. Refurbishment works are depreciated overtheir expected useful life of 10 years. h. STOCKS The Trust holds sports equipment for resale (e.g. swimming goggles) and vending stock. Stocks are valued at the lower of cost and net realisable vaLue. Net realisable value is based on estimated selling price less further costs expected to be incurred to disposal. Provision is made for obsolete and slow moving items. LEASED ASSETS AND OBLIGATIONS Allleases are operating leases and the annual rentals are expensed on a straight-line basis over the lease term. 35 SANDWELL LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 RETIREMENT BENEFITS For defined benefit schemes the amount ch8rged to the Statement of Financial Activities in respect of pension costs and other post-retirement benefits is the estimated regular cost of providing the benefits accrued in the year, adjusted to reflect variations from that cost. Actuarial gains and losses arising from new valuations and from updating valuations to the balance sheet date are recognised in the SOFA. Defined benefit schemes are funded, with the assets held separately from the charitable company in separate trustee administered funds. Full actuarial valuations, by a professionally qualified actuary, are obtained at least every three years, and updated to reflect current conditions at each balance sheet date. The pension scheme assets are measured at fair value. The pension scheme liabilities are measured usingthe projected unit credit method and discounted atthe current rate of return. A pension scheme asset is recognised on the Balance Sheet only to the extent that the surplus may be recovered by reduced future contributions or to the extent that the trustees have agreed a refund from the scheme at the balance sheet date. A pension scheme liability is recognised to the extent that the company has a legal or constructive obligation to settle the liability. k. EMPLOYEE BENEFITS The costs of short-term employee benefits are recognised as a liability and an expense. unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. FINANCIAL INSTRUMENTS The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments and are not considered to be of a financial nature. Such financial instruments, except for investments classified 8t fair value through the Statement of Financial Activities, are initially recognised at transaction value and subsequently measured at their settlement value. Debtors Fees receivable are recognised at the settlement amount due after any trade discounts offered. Cash at bankand in hand Cash at bank and cash in hand includes cash 2nd monies on shortterm deposit, atthe bank and other short-term liquid investments with original maturities of three months or less. 36 SANDWELL LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 FINANCIAL INSTRUMENTS (CONTINUED) Creditors Creditors are recognised where the Charity has a present obligation resulting from a past event thatwill probably result in the transfer of funds to 2 third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount allowingfor any trade discounts due. 2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the charity's accounting policies, which are described above, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differfrom these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Defined Benefit Pension Scheme Actuarial assumption The present value of the defined benefit pension scheme asset depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost for pensions incLude the discount rate. Any changes in these assumptions, which are disclosed in note 18, will impact the carrying amount of the pension asset. 3. NET DEFICIT IS STATED A￿ER CHARGING I (CREDITING) 2024 2023 Net expenditure is stated after charging: Depreciation of tangible fixed assets Lossllprofit) on sale of equipment Operating lease costs Auditor's remuneration as auditor - other services- VAT advice Amount of stock recognised as an expense 89,875 47,569 42.720 141,344 15,4151 42.720 30.800 6.000 92.203 35.250 6.000 117.357 37 SANDWELL LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 4. INCOME FROM CHARITABLE ACTIVITIES Restated Total Funds 2023 Total Funds 2024 Unrestricted Funds Restricted Funds Income from operation of sports facilities 8,541,797 8,541,797 6,807,525 Grants (management fees) 4,053,688 4,053,688 3,269,818 12,595,485 12,595,485 10,077,343 In review of the prior year income from charitable activities. it was identified that the amounts had been incorrectly presented. The presentation has been updated with no impact on the total income from charitable activities recognised within the year ended 31 March 2023. 5. ANALYSIS OF TOTAL EXPENDITURE Unrestricted Funds Restricted Funds Total Funds 2024 Total Funds 2023 Other trading activities Cost of goods sold Transport Other 92,203 430 35.057 92,203 430 35.057 117,357 14.633 127,690 127,690 131,990 Charitable activities Staff costs Other employee costs Premises Transport Professional fees Depreciation Other Governance costs 7.843.720 285.530 2,259,233 37.345 18.884 7.881.065 304,414 2,259,233 8.491.977 294,221 1,559,260 127 31,060 191,048 1.904.101 123,037 30.421 89,875 2,106,451 77.586 30,421 89,875 2.151.766 77,586 45.315 12,692,816 101,544 12,794,360 12,594,831 38 SANDWELL LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 5. ANALYSIS OF TOTAL EXPENDITURE {CONTINUED) Unrestricted Funds Restricted Funds Total Funds 2024 Total Funds 2023 Governance costs External audit Internal audit Trustee indemnity insurance Staff costs relating to preparation and attendance at trustee meetings 30.800 19,500 30.800 19,500 35.250 19,500 1,207 1,207 26.078 26.078 14.863 77,586 77,586 123,037 Staff costs have been allocated in accordance with the percentage of time spent by employees. All other costs have been allocated on a direct basis. 6. TRUSTEES AND EMPLOYEES No remuneration is paid to anytrustee {directorl in respect of their service as Trustees12023: £nill. £542.70 expenses reimbursed to trustees (2023: £nil). Trustee indemnity insurance of £1,207.43 (2023: £nil) was purchased during the year. 2024 2023 Staff costs Wages and salaries Social security costs Pension costs 6.439.913 489.653 970.979 5.673.167 431.664 2.402.010 7.900.545 8.506.841 2024 Number 2023 Number Average number of persons employed, including executive directors (￿E) 172 169 Average number of persons employed, including executive directors {head countl 459 412 39 SANDWELL LEISURE TRUST NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024 6. TRUSTEES AND EMPLOYEES (CONTINUED) These employees carry out a variety of duties including direct charitable, management and administration tasks. Three 12023: three) employees earned between £60,000 and £70,000 during the period. One employee earned between £70,000 and £80,000 (2023: nil) duringthe period. No employee earned between £110,000 and £120,000 (2023: one) during the period. Pension contributions in respect of higher paid staff amounted to £32,950 (2023: £317,824). Remuneration paid to key management personnel (including the above, employer's pension contributions and employer's National Insurance) was £388,780 (2023- £669.567}. Redundancy and termination payments paid during the period amounted to £157,807 (2023: £90,335). One employee served as a Trustee. Thetotal remuneration duringthe period (including employer's pension contributions, employer's National Insurance. redundancy & termination costs) was £14.185 (2023: £19.4721. No other remuneration was paid to a Trustee. 40 SANDWELL LEISURETRUST NOTESTOTHE FINANCIALSTATEMENTS For the year ended 31 March 2024 7. TANGIBLE FIXED ASSErs Freehold land Refurbishment costs P￿nt & Machinery Sports Equipment IT & Office Equipment Total Cost At 1 April 2023 Additions Disposals 467.826 1.814.664 16.926 1750.1421 191.121 1.099,492 28,595 1423.3921 868.696 21,463 1108.1261 4.441,801 66,985 11.338,4491 156.787) 31 March 2024 467.826 1.081.449 134.334 704,694 782.033 3,170,336 Depreciation At 1 April 2023 Charge foryear Di5P05aLs 1.710,819 30,643 1729,3321 155.441 11.197 154.0211 1.035,769 42,219 1416.0061 868.284 5.816 1108.1261 3.770,313 89,875 11.307,4851 31 March 2024 1.012.130 112.617 661.982 765.974 2.552,703 Net bookamount 31 March 2024 467.826 69,319 21.717 42,712 16.060 617,632 31 March 2023 467,826 103.846 35.680 63,723 412 671.487 41 SANDWELL LEISURETRUST NOTES TO THE FINANCIALSTATEMENTS Forthe year ended 31 March 2024 8. STOCKS 2024 2023 Goods for resale 22,839 18,526 9. DEBTORS 2024 2023 Trade debtors Other debtors Prepayments 560,545 16,013 286,113 240,448 9,726 91,193 862,671 341,367 Included within other debtors above are amounts due after more than one year of £8,16112023: £7.9711 in respect of car loans to staff who qualify undertheirTerms and Conditions of Service. 10. CREDITORS: Amounts falling due within one year 2024 2023 Trade creditors Other taxation and social security Other creditors Accruals and deferred income 610,539 355,430 119.363 1,222,512 127,954 191,798 92.903 1,166,380 2,307,844 1,579,035 42 SANDWELL LEISURETRUST NOTES TO THE FINANCIALSTATEMENTS Forthe year ended 31 March 2024 11. DEFERRED INCOME Balance as at 1 ApriL 2023 Amount released to income Amount deferred in the year 32.763 (32.763) 53.606 Balance as at 31 March 2024 53.606 Deferred income represents prepaid membership income forthe comingyear and hire of facilities income received in advance. 12. RESTRICTED FUNDS The funds of the charity include restricted funds held on trust to be applied for specific purposes. At 1 April 2023 At 31 March 2024 Income Expenditure Physical Activity Board 6,229 (6,2291 Street Games 12,418 {12,418} Active Citizens 2,430 2,430 HolidayActivities and Food 26,128 {20,668} 5,460 Swim England {he8d coach) 5,040 (5,0401 Inspire 22 Diving 86.560 {34,305} 52,255 Swimming Recruitment Academy 54.000 {22,8851 31,115 Total 21,077 171.728 (101,5451 91,260 43 SANDWELL LEISURETRUST NOTES TO THE FINANCIALSTATEMENTS Forthe year ended 31 March 2024 12. RESTRICTED FUNDS {CONTINUEDI Prior Year At 1 April 2022 At 31 March 2023 Income Expenditure Physical Activity Board 18,017 20,293 (32,081) 6,229 StreetGames 12,418 12,418 Active Citizens 2,430 2,430 Total 32,865 20.293 (32,0811 21,077 There we no transfers between restricted funds during the year (2023: £Nill. Physical Actlvity Board This fund represents the contributions to the Physical Actlvity Board from SLT and other partners such as PCT. and Sport Colleges to supportwork in the voluntary sector. StreetGames The grant from StreetGames will be used to fund activity in partnership with StreetGames. including weekly actlvity for local young people in sports which may include football. basketball. cricket. street cheer. cycling etc. In addition. school holiday sports programmes and events such as bmxing festival. The activity will be focused on the most deprived areas of West Bromwich. Smethwick. Tipton. Rowley and Oldbury. Active Citizens This grant is from the Police and is aimed at inteNention around physical actlvlty for non-sporty girls. Motivational programmes are developed for girls not achieving, or with behavioural problems, life issues, poor school attendances etc. Holiday Activities Fund Grant of £8,036 was awarded from Sandwell MBC to deliver the holiday activities and food education to families as well as providing a healthy meal each dayto eligible benefit related low- income families during the period 02.01.24 to 05.01.24 (Winter) and 25.03.24- 28.03.24 (Easterl at Tipton Sports Academy. Swim England (Head Coach) and Inspire 22 Diving The Amateur Swimming Association (Swim England) secured £91,600 Inspire Funding from Sport England tofund the employment of a Head Coach and the running of a diving programme Swimming Recruitment Academy The agreement between the Institute of Swimming and SLT is for Sandwell centres becoming a recognised 'lnstitute of Swimming Training Hub. 2llowing them to host courses and work in partnership on workforce programmes to recruit, mentor and train swimming teachers to SEQ Level 1 and SEQ Level 2. 44 SANDWELL LEISURETRUST NOTES TO THE FINANCIALSTATEMENTS Forthe year ended 31 March 2024 13. UNRESTRICTED GENERAL FUNDS 2024 2023 1 April Net lexpenditure)/income Transfer {tollfrom designated fund 1,101,510 (50.616) 429.619 2,514,229 1311.652) (1.101.067) 31 March 1,480,513 1,101,510 14. DESIGNATED FUNDS 2024 2023 1 April Transfer (to)Ifrom unrestricted generalfunds 1.929.619 1429.619) 828.552 1.101.067 31 March 1,500,000 1,929,619 At its 6 July 2023 Board meeting, Members approved to redesignate reserves totalling £1,500k and not spend these funds on the SMBC contract, but instead for the reserves to be made available for the future of SLT which is to be decided at a future Board meeting. Designated now comprises of: Grant Making Fund The board approved the designation of £1.500.000 for grant making purposes. which have been confirmed to be consistent with the objects of the charity. 45 SANDWELL LEISURETRUST NOTES TO THE FINANCIALSTATEMENTS Forthe year ended 31 March 2024 15. ANALYSIS OF NET ASSETS I (LIABILITIES) BETWEEN FUNDS Unrestricted Funds Restricted Funds Total 2024 Total 2023 Tangible fixed assets 617,632 617,632 671,487 Stocks 22,839 22,839 18,526 Debtors 862,671 862,671 341,367 Cash at bankand in hand 3,785,215 91,260 3,876,475 3,599,861 Creditors due within one year {2,307.844) (2,307,844) (1,579,035) Defined benefit pension scheme assetl{liabilityi 5,543,000 Net assets 2,980,513 91,261 3,071,773 8,595,206 Prior year Unrestricted Funds Restricted Funds Total 2023 Total 2022 Tangible fixed assets 671.487 671.487 848.176 Stocks 18,526 18,526 18,646 Debtors 341,367 341,367 367,154 Cash at bankand in hand 3,578,784 21,077 3,599,861 3,751,380 Creditors due within one year {1,579,035) (1,579,035) (1,609,710) Defined benefit pension scheme liability 5,543,000 5,543,000 115,167,000) Net assetsl(liabilities) 8,574,129 21,077 8,595,206 111,791,354) 46 SANDWELL LEISURETRUST NOTES TO THE FINANCIALSTATEMENTS Forthe year ended 31 March 2024 16. COMMITMENTS UNDER OPERATING LEASES At 31 March 2024, the Charity had total future commitments under non-cancellable operating leases as follows: 2024 2023 Plant and machinery Amounts due within one year Amounts due between two and five years 46,064 46,064 46,064 46,064 17. TAXATION The company, which is a registered Charity, is exemptfrom taxation on its charitable activities. 18. PENSION COSTS Defined benefit scheme The Trust participates in a pension scheme operated bythe West Midlands Pension Fund. The West Midlands Pension Fund is a funded scheme, with the assets held in separate trustee administered funds. There were outstanding contributions of £97,434 (2023- £78,755) at the year end, included within other creditors. The Charity expects to make contributions in the year ended 31 March 2025 of £793,000 {2024: £677,000). The trust is aware that the Court of Appeal has recently upheld the decision in the Virgin Media vs NTL Pension Trustees 11 Limited case. The decision puts into question the validity of any amendments made in respect ofthe rules of a contracted-out pension scheme between 6 April 1997 and 5 April 2016. Thejudgment means that some historic amendments affectings.912B) rights could be void if the necessary actuarial confirmation under s.37 of the Pension Schemes Act 1993 was not obtained. Until further investigations have been completed by the UK Government's Actuary's Department andlor any legislative action taken by the government. the potential impact if any. on the valuation of scheme liabilities remains unknown. The following information is based upon a full actuarial valuation of the Fund at 31 March 2020 updated to 31 March 2023 by a quaLified independent actuary. 47 SANDWELL LEISURETRUST NOTES TO THE FINANCIALSTATEMENTS Forthe year ended 31 March 2024 18. PENSION COSTS {CONTINUED) 2024 2023 Rate of increase in salaries 3.75% Rate of increase in pensions in payment Discount rate 2.750 4.850 InfLation assumption 2.95(Yo The current mortaLity assumptions included sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are: 2024 2023 Retiring today: Males Females 21.7 21.8 22.9 23.1 Retiring in 20 years: Males 21.1 21.3 Females 24.6 24.8 The Trust's share of assets in the scheme was: 2024 £'ooo 2023 £'ooo Equities Bonds 22.508 10.331 2,214 1,845 22.433 7.258 2.309 990 Property Cash Total fair value of assets 36.898 32.990 48 SANDWELL LEISURETRUST NOTES TO THE FINANCIALSTATEMENTS Forthe year ended 31 March 2024 18. PENSION COSTS {CONTINUED) 2024 £'ooo 2023 £'ooo Trust's estimated asset share Present value of scheme liabiLities Restriction of asset 36.898 (27.988) (8,910) 32.990 (27.447) Asset in the scheme 5.543 Amounts recognised in the Statement of Financial Activities: 2024 £'ooo 2023 £'ooo Employer contributions Current seNice cost 794 963 (900) {2,082) (309) (436) Past service cost Net interest income/{cost) 261 Total operating charge 155 {1,864) Analysis of amount charged to actuari81 gainsl{losses} in respect of the defined benefit pension scheme: 2024 £'ooo 2023 £'ooo Remeasurement of assets Experience gains and losses on liabilities Changes in demographic assumptions Changes in assumptions Restriction of asset 1,654 (845) 171 (1,063) 358 2.359 20,920 2,232 (8,910) Actuarial (lossl /gain (5.698) 22.574 49 SANDWELL LEISURETRUST NOTES TO THE FINANCIALSTATEMENTS Forthe year ended 31 March 2024 18. PENSION COSTS {CONTINUED) Cumulative actuari81 gains recognised in the SOFA totalled £13,213,000 (2022: £18,911,000 gain). 2024 £'ooo 2023 £'ooo Movement in asset duringthe year Deficit in scheme at beginning of year Movement in year: Current service cost Past service cost Contributions 5,543 (15,167) (900) (2,082) (309) 963 794 Net return on assets 261 1436) 22,574 Actuarial (lossl lgain (5,698) Asset/ Ideficitl in scheme at end of year 5,543 Asset and liability reconciliations 2024 £'ooo 2023 £'ooo Reconciliation of liabilities: Liabilities at beginning of year Current service cost 27,447 900 47.059 2,082 1,324 260 Interest cost 1,322 302 Member contributions Actuarial lossesl{gains} Change in demographic assumptions Experience lossl{gain) on detined benefit obligation Benefits paid / estimated benefits paid net of transfers in Past service cost (2.232) (171) 845 (20.920) (2,359) 63 (425) (371) Closi ng fair value of fund liabilities 27,988 27,447 50 SANDWELL LEISURETRUST NOTES TO THE FINANCIALSTATEMENTS Forthe year ended 31 March 2024 18. PENSION COSTS {CONTINUED) 2024 £'ooo 2023 £'ooo Reconciliation of assets: Assets at beginning of year Expected return on assets Actuarial gains l (losses) Administrative expenses Employer contributions Member contributions Benefits paid Other actuarial gains l (losses) 32,990 1.583 1.654 31,892 888 (1.063) 794 963 302 (425) 260 (371) 421 Closing fairvalue of fund assets 36,898 32,990 Underthe Management and Funding Agreement {MFA) with Sandwell MBC, the CounciL bears the risk of changes in the superannuation contribution rate forthe establishment that transferred to the Trust on 1 April 2004 and the Trust's Management Fee is adjusted to reflect this. As a result, the Trust only bears the risk of any shortfall relating to additional superannuation costs it has incurred over and above the amounts funded by the Council. In FY 2023124 the level of management fee relating to superannuation covered the Trust's actual expenditure. 19. COMPANY LIMITED BY GUARANTEE The charitable company is limited by guarantee amountingto £1 for each member in the event of the charitable company beingwound up. 51 SANDWELL LEISURETRUST NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 March 2024 20. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Funds Restricted Funds Total 2023 Income from: Charitable activities Other trading activities Investments 10,057,050 407,339 54,699 20,293 10,077,343 407,339 54,699 Total income 10,519,088 20,293 10,539,381 Expenditure on: Raisingfunds 131,990 131,990 Charitable activities 12.562,750 32,081 12,594,831 Total expenditure 12.694.740 32.081 12.726,821 Net incomel(expenditure) forthe year (2.175.652) (11.788) {2.187.440) Other recognised gains and losses Actuarial gains on defined benefit pension scheme 22,574,000 22,574,000 Net movement in funds 20,398,348 (11,788) 20,386,560 Funds at 1 Apri12022 (11,824,219) 32,865 (11,791,354) Funds at 31 March 2023 8,574,129 21,077 8,595,206 52 SANDWELL LEISURETRUST NOTES TO THE FINANCIAL STATEMENTS Forthe year ended 31 March 2024 21. ANALYSIS OF CHANGES IN NET FUNDS 2023 Cash flows 2024 Cash in hand and at bank 3,599,861 276,614 3,876,475 Netfunds 3,599,861 276,614 3,876,475 53