2022-03-31-accounts

Annual Report & Financial Statements for the year ended 31 March 2022

Nuneaton & Bedworth Leisure Trust Ltd (A Company Limited by Guarantee) Charity registration No. 1109970 Company registration No. 04955172

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The Directors/Trustees of Nuneaton & Bedworth Leisure Trust (NBLT) present their Directors’/Trustees’ Annual Report and the Financial Statements of the Charity for the year ended 31 March 2022, as required under the Charities Act 2011 and the Companies Act 2006.

NBLT is a private company limited by guarantee and is incorporated in England and Wales (Co. No. 04955172). The registered address is detailed below.

Directors/Trustees

J Dolman K Fawcett J Stubbs (Resigned 11th February 2022) P Sowter E Mitchell B Carter

Finance Manager

S Plowman (resigned 18 May 2022) N Jarratt (appointed 18 May 2022)

Operations Manager

R Booth

Secretary

M Beasley (resigned 22 September 2021)

S Plowman (appointed 22 September 2021, resigned 15 May 2022)

Principal Office

92a Wheat Street Nuneaton Warwickshire CV11 4BH

Registered Office

92a Wheat Street Nuneaton Warwickshire CV11 4BH

Places Of Trade

Various locations in and around Nuneaton, Warwickshire, UK.

Auditors

Crowe U.K. LLP Rounds Green Road Oldbury West Midlands B69 2DG

Solicitors

Blythe Liggins Edmund House Rugby Road Leamington Spa Warwickshire CV32 6EL

Bankers

Co-Operative bank, 6 Warwick Row, Coventry CV1 1EE

Santander, Newdegate St, Nuneaton, CV11 4HX

Redwood, The Nexus Bldg, Broadway, Letchworth Garden City, SG6 3TA

Aldemore Bank PLC, Apex Plaza, Forbury Road, Reading, RG1 1AX

N Jarratt (appointed 15 May 2022)

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Directors’/Trustees’ Annual Report

Introduction

NBLT is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated 6 November 2003, amended to allow for current governance arrangements on 26 September 2018.

NBLT was registered with the Charity Commission on 13 June 2005 (Registered charity No. 1109970). The objects of the charity are the same as the principal activities of the company set out below. The charitable company has produced these accounts in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities (SORP 2015).

Related Parties

Other than the Directors / Trustees, the only related party relationship NBLT has is with its 100% owned subsidiary, Leisure Avenues Limited (Company registration no. 05495496). The principal office of Leisure Avenues Ltd. is 92a Wheat Street, Nuneaton, CV11 4BH.

Principal Activities

The principal activities are to:

• provide or assist in the provision of facilities and services for educational, recreational, sporting or other leisure time occupation in the interests of social welfare to the public at large or to any section or sections of the public who may have need of such facilities and services by reasons of their youth, age, infirmity or disability or social and economic circumstances;

• promote and preserve good health through community participation in healthy recreation and education; and

• operate and maintain the catering and ancillary trading facilities in support of the above.

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Directors’/Trustees’ Annual Report (continued)

Directors/Trustees

The Directors/Trustees of the company who served during the year were as follows:

J Stubbs – (Resigned 11th February 2022) K Fawcett E Mitchell P Sowter J Dolman B Carter

Decision-Making Structure

The Board of Management, which can have up to nine members (plus three co-opted members with full voting rights), administers NBLT. The Board normally meets at least quarterly covering strategy, policy, performance, customer statistics, finance, audit and any current issues.

The General Manager is appointed by the Trustees to manage the dayto-day operations of NBLT. During the year, management of NBLT passed to the Finance Manager and Operations Manager. To facilitate effective operations, the Finance Manager and Operations Manager have delegated authority, within terms of delegation approved by the Trustees, for operational matters including finance, employment and business development.

The Finance Manager and Operations Manager are responsible for ensuring that NBLT delivers the services specified and that key performance indicators are met.

Recruitment and Training of Directors/Trustees

The Directors of NBLT are also charity Trustees for the purposes of charity law and under NBLT’s Standing Orders, are known as members of the Board of Management. Under the requirements of the Memorandum and Articles of Association the members of the Board of Management are elected to serve for a period until the third AGM and then a third must retire each year. They may be immediately re-elected. The Board of Management elects its own chair. The Board of Management represent a broad mix of skills.

The Trustees are the only Members of NBLT and form the Board of Management. Upon winding up, each Member’s liability is limited to £1.

NBLT must have between three and nine Trustees at all times. Three additional Trustees with voting rights can be co-opted but none have been appointed as yet.

Supplementary to the election of members as Trustees at the AGM, the Board agreed a recruitment and selection process for new Trustees to be used in the interim. Once a panel of three Trustees has selected a Trustee, an induction session is arranged with the Chair of the Management Board and the General Manager. The induction is based around the Trustees Handbook, which outlines the duties and responsibilities of the Trustee role. Documentation covered includes: -

• The Memorandum and Articles of Association

• Financial Regulations and Standing Orders

• Annual Business Plan

The induction process is then expanded to the Facility/Service Managers to provide information on the various aspects/services of NBLT.

Third Party Indemnity Provision for Directors

Qualifying third party indemnity provision is in place for the benefit of all Directors/ Trustees of NBLT.

Statement as to Disclosure of Information to Auditors

The Directors/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 Directors/Trustees have confirmed that they have taken all the steps that they ought to have taken as Directors/Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Reserves Policy

The Trustees reviewed the reserves policy in September 2021, taking into account the draft financial results from 2020/21. The revised policy includes an

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

unchanged general reserve of £500,000 to cover working capital and to act as a risk contingency. As at 31st March 2022 unrestricted reserves, those not designated for specific projects, stood at £453,981. Designated funds amounted to £777,762, of which £771,356 is held in tangible fixed assets that would have to be sold in order to raise the cash. All previously allocated reserves have now been moved into the general reserve to move this closer to the target £500,000 above.

The Trustees decided that the surplus or deficit during the year would be allocated to the general reserve.

Reserve levels are not as high as would be ideal, as would be the case in most organisations, but they are as expected and are of a size that allows NBLT to operate effectively and to be able to plan for the future.

The Trustees are due to review the reserves policy for the 5 year period 2022 – 2027 at its meeting in August 2022 and will also look to address the shortfall in the general reserve.

Investment Policy

The Trustees, having regard to the liquidity requirements of operating the business and to the reserves policy have operated a policy of keeping available funds in an interest bearing deposit and reserve account and seek to achieve a rate of interest which is maximised whilst remaining risk-averse. All cash invested has remained within the UK and it is

anticipated that this will not change.

The invested funds held on deposit and in the reserve account achieved an average rate of 0.76% for the year.

Fundraising

NBLT does not carry out material fundraising activities requiring disclosure under S162A of the Charities Act 2011.

Charities Governance Code

Trustees are aware of the guidance on the Charities Governance Code and are satisfied that the governance code they follow aligns with it.

Key Management Personnel

Key management personnel (KMP) are employed and remunerated based upon their skills, experience, ability, attitude and market forces. They all work to role descriptions and are regularly appraised.

Going Concern

NBLT has cash resources that will meet its day to day working capital requirements in the short term.

Whilst NBLT is reporting a deficit for 2021/22 of £157,632, this is more than accounted for by the depreciation charge, which is as a result of planned investment in NBLT’s assets. Other than the planned depreciation charge, NBLT made an operating surplus of £56,560. This is a good result considering that the year has

been affected by COVID closures and subsequent recovery.

We are predominantly self-funded through customer charges and are very reliant on their attendances to our facilities.

Empire Gym & Studios re-opened on 12th April 2021 with strict cleaning procedures and admittance. Members could only access the gym if they pre booked. Temperature checks were taken at the entrance.

A one way system was put in place and Empire Heaven remained closed to allow for an exit from the building.

Many memberships remained frozen due to Covid.

Opening hours were reduced as follows. Monday to Friday 6.30am-2.00pm and 3.00 pm – 9.00pm and Saturdays 8.00am -1.00pm

Classes were re-introduced on 17th May and delivered in Studio 1 only and were well attended.

We operated a 1.5 hour bookable gym slot which helped support the governments track and trace system as well as keeping our members socially distanced. Social distancing led to a reduction in the number of gym equipment available to customers.

Due to COVID restrictions we were unable to offer gym inductions to new members but continued to offer our special offer deals.

On 19th July Empire Heaven re-opened and numbers have been growing steadily as members return although still very

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cautious. We have managed to secure further memberships from customers from Lady-pace gym which has now closed down.

Later in the year as COVID restrictions eased we opened all facilities, kit & equipment and increased opening hours to;

• Monday to Friday 6.30am-9.00pm,

• Saturdays & Sundays 7.00am-1.00pm

Although footfall throughout the gym increased steadily, it was slower than expected again due to COVID - Omicron variant.

School coaching services have also been significantly affected this year with the ongoing covid restrictions, isolations and staff absence due to covid isolations. Community activities continued to be affected during the first part of the year.

Bermuda Park Nursery has returned to near-normal activities however has continued to be affected by positive covid cases resulting in groups of children self isolating and staff self isolations.

The proposed purchase of Empire Gym & Studios by Warwickshire County Council (WCC) in order to improve traffic flows in the town centre is ongoing. NBLT continues to try to find alternative premises to relocate to, and are progressing in negotiations to come to an agreement with WCC.

The Trustees are confident that NBLT has and will have adequate resources to continue in operational existence for the foreseeable future and therefore consider

it appropriate to prepare the financial statements on a going concern basis.

Directors’/Trustees’ Report

Objects and Strategies

The objects of NBLT are: -

• provide or assist in the provision of facilities and services for educational, recreational, sporting or other leisure time occupation in the interests of social welfare to the public at large or to any section or sections of the public who may have need of such facilities and services by reasons of their youth, age, infirmity or disability or social and economic circumstances;

The strategies employed to achieve NBLT’s

objects are: -

• Promote and preserve good health through community participation in healthy recreation and education;

• Manage NBLT’s finance in accordance with good business practices, legislative requirements and in accordance with the Memorandum and Articles of Association and other agreements as they apply;

• To ensure that NBLT’s education and leisure provision meets the needs of the local community in the most effective and efficient way;

• To develop a change of culture to allow employees to be empowered and take ownership of NBLT’s objectives;

• To generate investment opportunities for the development and improvement of education and leisure facilities and

sports opportunities;

• To work with external partners to maximise funding opportunities and tackle social issues within the borough;

• To develop and attract grant funding from all appropriate sources;

• To promote the positive benefits of leisure in terms of health related issues;

• To be aware of all environmental issues and take account of the effect NBLT’s business would have on local, national and global environment;

• To respect the gender, age and ethnicity of all customers and employees.

Review of the Business

A brief summary of our current facilities and services and the events of the past year is as follows:-

Nuneaton & Bedworth Leisure Trust Limited (NBLT)

2021/22 has continued to be a year effected by COVID 19, it has remained a difficult and frustrating year trying to achieve our objectives in an everchanging environment, in particular, staff absence caused by COVID sickness and isolation, has been a huge challenge to operations.

As the government has recently moved into a living with COVID plan, we are more hopeful of operating a normal year in 2022/2023.

• Empire Gym and Studios is a 20,000 sq ft ex nightclub which was purchased and converted into a premier health & fitness facility. This facility and its employees continues to offer an excellent customer

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

experience for people wishing to improve themselves. It is the best equipped and best staffed facility in the area and offers personal help and support to all customers. However, financially it has suffered a significant downturn since the opening of a budget gym in Nuneaton town centre in October 2017. We are always looking for new customers but accept that we are never going to return to the number of members that we had prior to the budget gym opening. Empire did not reopen until April 2021 and that was on a very reduced capacity and opening hours, we opened further from July increasing our numbers within the gym but maintaining all COVID restrictions in place. Our class timetable remained very reduced as a result of COVID restrictions and, like all gyms, we have lost a significant number of members during this time. The challenge ahead is to attract those customers back, and more, when we are allowed to open in full, including exercise classes.

• We have introduced new style classes to the timetable and bought some old favourites back. We also started to deliver in 2022 Circuit classes on the new rig within the Performance area of the gym. These have proved very popular with 5 classes per week being attended.

• Empire Heaven is a ladies only gym located within the Empire Gym & Studios facility but with its own separate entrance. The gym is kitted out with the highest specification pneumatic resistance equipment that is extremely safe to use. This is complimented by a good range of cardio equipment of the same quality

and design as those used in the main gym. Our customers get a nice compact facility with easy access to the other activities within the Empire building, giving them a simple pathway if they want to take their exercise to the next step. Unfortunately, Empire Heaven has been closed all year so as to enable a one way system to operate within Empire as per the required COVID safe procedures.

• Youth, Communities and School (YCS) outreach services deliver sports coaching in schools including PPA sessions out of school hours clubs. We also work in community settings in the local Nuneaton and Bedworth Borough with other local organisations and charities. We offer alternative education for children “struggling” in a traditional school setting (APE). The team deliver community initiatives such as promoting disability sports and healthy eating/ living advice and assistance as well as operating school wraparound services and a very popular “playscheme” during school holidays. These services have been able to start back up following COVID restrictions. We are not back at full capacity but we are getting close to gaining most sessions and customers back following the COVID restrictions.

• Bermuda Adventure is a 9,000 sq ft unit which was fitted out into a high specification functional soft play facility. The site reopened in May to limited numbers with all COVID restrictions in place. Before re opening, improvements were made to the outdoor area and the race track tyres were securely fixed to the paved area.

• Bermuda Park Nursery is a 4,000 sq ft building adjoining Bermuda Adventure fitted out as a high quality children’s nursery. Not only is the nursery equipped to the highest standards, but the garden is fully usable throughout the year with a large canopy, outdoor classroom and artificial turf. Although the nursery has been affected by COVID outbreaks it remained open throughout the year. Numbers of children attending have continued to rise as restrictions eased and parents returned to work.

As can be seen throughout this report, all of our services have been affected by COVID. A number of NBLT employees have spent portions of the year on furlough or flexible furlough. This enabled us to reopen quite quickly and adjust our operations as COVID restrictions changed.

The main challenge ahead of us this year will be our negotiations with WCC about the future of Empire and the probable operational relocation to a new site.

We continue to feel the impact of the COVID pandemic, and are finding recruitment particularly challenging in a post COVID environment.

In 2021 an internal review was carried out of the payments received from the Governments Covid Job Retention Scheme. The review highlighted that the there had been an over statement of the claim, which resulted in an excess payment. The Trust referred itself to HMRC, Action Fraud and the Charities Commission and returned the funds to HMRC. No further action was taken by these bodies.

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Leisure Avenues Limited

NBLT’s subsidiary, Leisure Avenues Limited, manages all sales of café and vending items, together with other ancillary sales, at all of the sites. By far the highest turnover is from the café at Bermuda Adventure. The decision was made early on for high quality home-made food to be served to customers at affordable prices and this has resulted in significant sales in previous years. The Bermuda Adventure kitchen also supplies a varied and home made menu to the children at Bermuda Park Nursery which has proved to be popular with children and parents alike.

Whilst the kitchen has continued to supply the food to the nursery for the whole year, we have reduced our menu. We continue to offer meal deals during term time only, which seem to be popular once again. In January 2022 we increased the number of children that could attend parties, where parents ordered a large amount of meals off the food platter menus.

The overall surplus for the year was £135,618, all of which was gifted to the charitable company (NBLT).

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Financial Review

NBLT is reporting an operating surplus of £56,560 (excluding depreciation), and we are very pleased with that, following the impacts that Covid has had on the year.

We received some insurance compensation for business interruption resulting from COVID, which has contributed to the result.

Staffing shortages have caused us a lot of operational challenges, and despite using agency staff where possible, this has meant some costs saved on employee costs. We recognise this is not ideal, none the less, it has contributed to the surplus above. Things are starting to look more promising for next financial year though, as recruitment drives seem to be paying off and staff absence is improving.

The year has been about re-opening the facilities and services when we could, in a COVID safe way. This has proved challenging at times. There have been times when services have had to be cancelled due to staff shortages described above, which is disappointing, but something which we are confident will improve as the world returns to normality.

As a result of all of this, unrestricted reserves amounted to £453,981 as at 31st March 2022.

Governance and Principal Risks

The Board approved the latest Risk Management Strategy and accompanying Risk Register on 8th September 2021. This details the top 26 risks and has since been constantly monitored by the management team. It also addresses how those risks are being minimised and controlled, together with any contingency plans should the risk come into being. The register is being reviewed on a regular basis, and some items have been replaced with newer risks as situations arise.

Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety for employees and users of the centres.

Following Risk Treatment (the act of controlling, containing and minimising risk), the only risks that remain at a “high” level include:

• Risk of increase in competition, resulting in a financial risk for the Empire Gym.

• Risk of a compulsory purchase of the Empire venue by Warwickshire County Council and the impact on ongoing trade.

• Risk of COVID, with the risk of meeting service obligations due to staff sickness, or the leisure industry closing due to a national lockdown.

Although the risk due to COVID is receding, the risks for the Empire division of the Trust remain high, the management team are investigating its options with the intention to springboard the business for the future.

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Achievements for the Year Ended 31 March 2022

Due to COVID and the changing regulations, closures and disruptions to service delivery, there were limited achievements during the year, apart from again surviving in good condition with most of our employees still in place. The following are our other achievements for the year:

Bermuda Adventure

• We opened our doors to the public on 17th May 2021 following a long period of closure due to the COVID-19 pandemic. We initially opened on reduced hours: Monday to Thursday 9.20am to 1.30pm, Friday 9.20am – 6.10pm, Saturday and Sunday 9.20am – 4.00pm with limited numbers of 120 customers. Two additional sessions were added on a Thursday in July, an afternoon and evening. On 26th July we had sessions Monday to Saturday from 9.20am – 11.20am, 11.30am – 1.30pm, 2.00pm – 4.00pm and 4.10pm – 6.10pm, Sunday 9.20am – 11.20am, 11.30am – 1.30pm and 2.00om – 4.00pm.

• We started to book parties in again from 24th July 2021, we limited the number of children to 20 per party and only held one party per session. We increased our occupancy from 120 to 180 customers.

• We had our first exclusive party booking on 20th August, which once again they have been extremely popular. We have been taking bookings not only on Sundays but during the week.

• In December we started to book more than one party in each session to keep up with demand.

Empire Gym & Studios

• We constantly ask our members for feedback, this is done through conversation and mostly through feedback forms. Here are just a few of the comments received in these forms.

“Massive thank you to all of the Empire Team, being a member of this gym really does feel like being part of a community, which has been more important than ever for us all this year!” (N.A.)

“Just wanted to say how I enjoy the Keiser class. Every session is different, very enjoyable, the instructor makes it fun. Keep up the good work, loved it” (J.S.)

“The instructor was very helpful during my session, was on hand to give advice and support. Very satisfied with the customer service and helpful staff at the gym. Would not use another gym.”

• Wear it Pink day was held in October one of the many events and challenges we hold annually, and staff and members raised a whopping 501.58p. These events are very well received by our members and reinforces the “community gym” we have here. There is great competition and comraderies between all.

Bermuda Park Nursery

• Bermuda Park Nursery (BPN) has steadily increased children’s attendances as we moved out of covid restrictions. The nursery is now operating with a waiting list.

• BPN has three new apprentices, along with three other unqualified staff who are being supported to gain their level III qualification. This is a great opportunity for local people to develop their careers in an ideal environment.

• BPN was re-awarded the Warwickshire Inclusion Kitemarking Scheme (WIncKS), and continues to care for children with severe complex additional needs. The Integrated Disability Service (IDS) continue to signpost more children to us but, unfortunately, we do not always have the capacity to accommodate their request.

• Two further members of staff have successfully been trained as Special Educational Needs and Disability coordinators to support our children with additional needs.

“I am very impressed with the service I received at reception and am going to join the gym because I felt very good about myself and felt like part of the family”. (M.D.)

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Achievements for the Year Ended 31 March 2022 (continued)

Youth Communities and Schools Team

• Throughout the lockdowns, we supported key workers and vulnerable children from local schools during the school holidays at our playscheme. The scheme, again, supported staff at the local hospital so they could continue to go to work. We also supported vulnerable children, who were highlighted by their school as needing support. We had some safeguarding concerns during this time but were able to work with the school and local social services and provided a safe place, with supportive measures in place for the children to attend daily.

• NBLT continued to receive funding from BBC Children In Need for the employment of a Disability Sports Coordinator (DISCO) and Disability Sports & Activity Project. This funding is used to give young children with a disability a great opportunity to improve their social skills, physical activity and increase their friendship with others and enjoyment in sports.

prevent ASB. We have organised park clean ups in the area twice in the last year, with a continuation of funding for another one of these in 2022.We have continued to deliver football sessions for children who are new to football, a playscheme at Middlemarch School with 15 funded spaces for residents and bikeability courses.

• We have continued to run Wembrook Community Centre with two weekly youth clubs, which were funded by the PCC and Awards4All. We have seen increased numbers at the sessions with an increase in children from Eastern European backgrounds which is one of the target demographics for the project. As of March 2022, the HTC project has funded both youth clubs for the future.

• During the covid restrictions our sessions continued to be delivered via zoom, as the restrictions eased, we returned to face to face Disability sessions, continuing to improve the children’s physical activity and social skills with others.

• We are advertising spaces within our Disability football team due to the success of enabling some of our players to progress into mainstream football teams. Our sessions not only improved their footballing ability but built their confidence and belief in themselves enabling them to make the move. We also plan to organise and play matches against other teams.

• Our DISCO staff member completed a 50 mile run for Children in need from the Mailbox in Birmingham to Bermuda Adventure Soft Play World, his achievement was the lead story on the local BBC news. He managed to raise £3,000.00.

• We continued to deliver our funded project with Hilltop & Caldwell Big Local. We received extra funding from December 2021 until the end of May 2022 to continue the project. We will then have an opportunity to ask for a continuation in the funding. Activities have continued to include youth provision at parks, with the aim of engaging with young people to

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

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Future Developments

The following is a selection of plans for the future: -

• Successfully return all services to their pre-COVID levels as soon as possible.

• Continue to negotiate a positive conclusion the local council’s desire to purchase Empire Gym and Studios.

• Procure new office accommodation preferably to link in with the relocation of Empire Gym & Studios.

• Open a new rebranded gym in the locality, offering the same high quality gym and classes.

• Continue to improve standards at BPN to work towards an Ofsted rating of ‘Outstanding’.

• Continue to offer apprenticeships to further develop quality nursery nurses at BPN and develop more apprentices to ‘grow’ our own talent.

• Increase attendances, parties and room hire at Bermuda Adventure.

• Customer service training refreshers to be given to all staff and performances continually monitored for any further training.

• Actively search for new premises to open another high quality nursery provision and/or soft play centre.

• Achieve additional funding to further support and develop disability coaching within the borough. Would like to work alongside a local project to help provide a walking group for children and young people with disabilities. This will give attendants a chance to be active in a low impact form of exercise and opportunities to socialise due to the nature of the group.

• Children and families from the Children in Need project to help us to complete 100 miles rowing and raise as much money as we can.

• Obtaining long term funding for MUGA/community project enabling a long term commitment to delivering within the community.

• To continue to run the project with HTC- and will apply for a continuation in funding for the start of June onwards.

• Aim to start working alongside New Arley as they currently run a funded project there.

• To continue developing and raising the standards of Alternative Provision of Education. We have become an accredited centre for teaching English and Maths so would like to branch out and teach English and Maths functional skills to students.

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Employment

Disability in Employment

Managing disability is an integral part of NBLT’s overall employment strategy, linked closely to promoting a safe and healthy workplace, provision of occupational health, inclusive risk assessments and early intervention and referral of those who acquire a disability whilst in employment.

We are committed and positive about employing disabled people and base recruitment decisions on capability, attitude, experience and potential. Applicants with a disability who meet the essential criteria for the role are guaranteed an interview in line with the Jobcentre Plus two ticks scheme.

We provide work experience opportunities and mentoring to enable disabled students to acquire skills, knowledge and work attitude required for specific roles within the workplace.

Employees are actively encouraged to disclose their disability so that NBLT can plan and make reactive reasonable adjustments to its provisions for disabled employees in general. Disclosure also means that we can provide bespoke/ tailored support and assist employees to realise their full potential. NBLT’s headcount for contracted employees (excluding relief workers) as at 31st March 2022 was 81, of which 1% of employees disclosed that they have a disability in accordance with the definition provided in the Equality Act 2010.

Employees

Employees are the source of our strength. We continuously endeavour to have the right people with the right skills in the right place who want to make a difference to the lives of individuals and communities by helping them to be healthier and more active. We have many achievements to be proud of which have been made possible by having outstanding employees who through their expertise, creativity and commitment have made NBLT what it is today.

NBLT remains committed to creating a great place to work by providing employees with favorable working conditions and terms of employment. Due attention is given to help employees achieve their career goals and potential through providing on-going training and professional development opportunities. We continue to recognise and reward the difference employees make by giving continuous feedback, sharing achievements and rewarding those who go the extra mile.

NBLT values diversity and has a wide range of initiatives and policies that employees can access including work/ life balance options, part time working, flexi time etc.

We also acknowledge the benefits of promoting healthy lifestyles and have many health and well-being initiatives in place for our employees such as free health checks, reduced rate use of the facilities and supportive employment policies such as Substance Abuse, Alcohol at Work and our Wellbeing Policy.

Development

NBLT invests in training and development for its employees. We have continued to support and encourage employees across the organisation to undertake role related NVQs.

Key Employment Statistics 2022

Key Employment Statisitics 2022 Figures as at 31 March 2022

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2019/20 2020/21 2021/22
Total number of
contracted employees 86 86 81
Total employees (in%) -
Male 23 20 23
Female 77 80 77
Average age of 31 34 33
employee (in years)
Average length of 3.8 4.4 3.9
service (in years)
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Public Benefit

PUBLIC BENEFIT (with due regard to the published guidance on Public Benefit under Charities Act 2011)

Benefits to the General Public

NBLT exists in order to promote and maintain health and wellbeing and encourage as many people across the borough, regardless of socio economic class, age or ethnicity to engage and participate in an active lifestyle. Whilst many people are aware of the benefits of leading an active life countless may need support to identify and participate in physical activities. Barriers to participation can take many forms from fear of not fitting in or worrying about ability through to lack of access to facilities, particularly as lifestyles have become more sedentary.

NBLT aims to combat these barriers through a variety of services whether offered within one of our managed and owned centres or through community and outreach programmes delivered in conjunction with or on behalf of our community partners.

Ultimately our aim is to help as many people as possible to become more physically active to live fitter, healthier and hopefully longer and more fulfilled lives.

NBLT’s main interaction with the public is via the four educational, leisure and sports facilities that we manage and operate. They are all open to anyone who wants to use them and offer an amount of concessionary priced use. We also provide a Youth, Community and Schools outreach team (YCST) who deliver a wide range of projects in the local community, encouraging people to be more physically active. This team also works with and within specifically targeted areas of the community. We constantly promote and encourage people to use any of the many activities on offer in order to live fitter, healthier and potentially longer lives.

Children

We are very conscious of the fact that the earlier we can get people interested and educated in health and sport, the more likely they are to maintain that lifestyle. To this end we offer a range of initiatives aimed at under 18s.

• We run two excellent facilities which benefit babies, toddlers and children under 12 years old at the Bermuda Park Nursery and Bermuda Adventure Soft Play World. The Nursery is so popular now and operates with a large waiting list for some rooms we are actively seeking another nursery provision within the area.

• We deliver ‘before and after’ school services at two locations in the Borough catering for three schools. Our lady & st joseph LM site has got a “Met” rating and Goodyers End is currently awaiting their first Ofsted Inspection. 100 places are offered at these centres delivering a safe, secure and fun environment that builds on the learning of the respective schools. Our Lady & St Joseph Academy and Goodyers End are running at or near capacity daily. We also run before school, lunchtime and after school “clubs” at several other local schools, with activity and sport paramount where possible to keep children active.

• Our school holiday activity sessions, “Playscheme” had reduced attendances this year due to covid, but we were open every school holiday, including during the lockdowns, for children of key workers and vulnerable children. During these sessions, we were committed to ensuring that each child was educated, entertained and exercised in a safe, secure and interesting environment by skilled and qualified coaches.

Benefits to Targeted Groups and Individuals

As well as promoting healthy living and sport to the general public, we also target groups of people and individuals for specific initiatives in order to improve participation:-

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Under 5s

• The Bermuda Park Nursery offers high quality affordable nursery provision and opens from 7.30am to 6pm, 51 weeks of the year, enabling parents to access employment. It currently employs 29 local people, including three apprentices and three trainees.

• The Nursery provides freshly prepared meals cooked on site, designed by our chefs. In a bid to help combat the current obesity crisis they are available to speak to parents and offer advice on eating habits and food types if and when required.

• The Nursery works closely with Warwickshire’s Integrated Disability Team to ensure a high quality teaching environment for the youngest and most vulnerable children. The site is DDA compliant and is fully accessible both indoors and outside.

• The Nursery holds the WIncKs award. This is a quality assurance award from Warwickshire’s Integrated Disability Team which recognises the excellent practice within the nursery for children with additional needs and/or English as an additional language.

• The Nursery has been funded by Warwickshire County Council to offer 15 hours free funding for all children the term after their third birthday, as well as 15 hours free funding for the most vulnerable two year old children and children from low income families. We have successfully offered the new 30 hour funded sessions for eligible three year olds since September 2017.

17

Public Benefit

Under 18s

• The Youth, Community & Schools Team (YCST) visit schools to encourage a healthier lifestyle including delivering assemblies, school sports, sports days and open days as well as regular coaching sessions.

• School coaching has been building more since COVID restraints from 2020 and 2021. Once again we are allowed to coach PPA sessions as well as Lunch clubs, afterschool clubs and Breakfast clubs.

• The delivery of quality sports coaching in primary, junior and secondary schools continues to be a focus for the YCST. Our delivery includes Curriculum, P.P.A., PE teacher support, bike and balanceability, intervention sessions, disability sessions, before school, lunch and after school clubs. This work supports the on-going challenge to increase physical activity, support weight management issues and the benefits of living a healthy and active lifestyle.

• We deliver a project known as ‘Target’, that helps those young people that are not currently in employment, education and /or training. The scheme allows the young people to gain accredited qualifications in a more practical environment. Where these projects are operating there has been a marked decline in anti-social behaviour and a reduction in the fear of crime expressed by local residents. Young people who have successfully completed the course

have also gained employment within NBLT, assisting the economic growth of the borough. During 2021 we managed to deliver a target course for Disabled students as well as a sports coaching Target course.

• We have maintained our Alternative Provision of Education (APE) service during the year, at times due to covid restrictions only for vulnerable children, as restrictions eased it can be delivered in school if it helps the child’s learning. The programme aims to develop confidence and encourages the participants to reach their full potential by gaining qualifications, and assists as a pathway to college, apprenticeships and/or employment. This provides long term benefits to them, their families and the local economy. During the year, 18 young people have accessed the APE project. The aim of the programme is to meet the need of the student at risk of, or who has already been, excluded from school. We aim to provide a welcoming, safe and stable learning environment where students can learn the skills of acceptable behaviour and make good academic progress, in particular those who are experiencing social, emotional and behavioural difficulties. The programme provides a huge range of interventions that explore the needs of the young person that meets the Every Child Matters guidelines and can be delivered on and off site. Through embedded teaching and learning we combine the development of literacy and numeracy with vocational and other skills. The skills acquired provide learners with the confidence,

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

competence and motivation necessary for them to progress, gain qualifications, and succeed in education, work and life. Our main aim is for these students to re-engage with mainstream school. We are now an accredited centre for teaching Maths and English functional skills.

• The successful project funded by Love My Community has been extended until December 2022 after a successful delivery of the project at the Keresley Village Community Centre. This is a central venue in Keresley that provides a host of activities for local people. There are two key issues our project addressed; 1. no activity or positive engagement for children and young people and 2. high obesity rates due to a lack of opportunities for young people to take part in physical activity during the evenings. Our project, a community activity club, targets children and young people between the ages of 5 and 18 years old.

• Our school holiday activity sessions, “Playscheme”, has continued to offer holiday provision for children between the ages of 5 and 12 within Nuneaton & Bedworth.

Young Adults

• NBLT is committed to supporting local young people with employment opportunities. We work closely with Coventry College.

• The ‘Target’ programme has continued to help those young people that are

not currently in employment, education and /or training. The scheme allows the young people to gain accredited qualifications in a more practical environment. Where these projects are operating there has been a marked decline in anti-social behaviour and a reduction in the fear of crime expressed by local residents. Target includes the opportunity to complete an ASDAN qualification in sports coaching and/ or sports fitness. We attempted to run a Target course around Enterprise but this was not taken up by the local community, so we have rolled this project forward and will instead complete another sports coaching/ fitness project.

• As part of our Disability Sports Project, we have had a number of young people who were players within the club become volunteers for Attleborough Sports JFC and have taken an active part in helping the coaches teach the younger players.

Over 50s

• A large percentage of our gym members are aged over 50 and normally use the gym regularly. Our fully trained staff support them with personalised exercise programmes that are tailored to improve any weak areas or help achieve specific fitness goals. For example, the Power Plates are used to help improve flexibility and circulation.

• We continue, to cater for our over 50s members by offering several types of

19

Public Benefit

class for them to attend across the week, ranging from Osteo Pilates through to Yoga and Forever Fit. These members are encouraged to attend further classes as all can be tailored to suit their needs and capabilities

• We also offer reduced gym membership for our most senior members, removing one of the barriers to keeping fit.

People with Disabilities

• BBC Children In Need continued to award NBLT funding, enabling us to employ a dedicated Disability Inclusion Sports Coordinator, DISCO. This three year, 20 hour funded post supports young people between the ages of 5-18 years who face a range of physical and learning disabilities. The DISCO works to increase the choice of activity and opportunities to engage in play, sport and physical activity by reducing barriers and increased accessibility. Beneficiaries develop and enhance key physical skills such as: strength, stamina, balance, agility and fine motor skills; as well as cognitive skills such as problem solving. This has been more face to face delivery since COVID. We have tried to enable young people to become more independent as part of the project.

• The partnership with Bermuda Adventure Soft Play World to offer disability only sessions restarted as covid restrictions lifted. Each session welcomes between 50 - 60 people and offers the chance for children with disabilities to play alongside their siblings.

• Empire Gym & Empire Heaven are DDA compliant and fully accessible. Empire caters for many customers with disabilities. We look after the guide dogs for the blind whilst their owners train in the gym. We have wheelchair uses who we adapt our equipment for so that they can exercise effectively. We also support a group of people who have severe learning difficulties to exercise, ensuring that they all receive the best Empire has to offer.

• We work with the children and young people to develop and enhance verbal and non-verbal social skills such as: communication, cooperation, teamwork and empathy. This will be developed through verbal communication, physical contact and play. Our family days enhance socialising opportunities for beneficiaries’ families, as well as creating a social and emotional network of support.

• We try to empower the young people to counter attitudinal barriers and negative stereotypes, giving them confidence and the belief that they can engage in all types of activity regardless of their impairment. Family days and NBLT’s Disability Inclusion Days enable beneficiaries to showcase their new skills and abilities; boosting confidence and self-esteem to tackle inequalities.

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Directors’/Trustees’ Responsibilities in the Preparation of Financial Statements

The Directors/Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors/Trustees to prepare financial statements for each financial year. Under that law the Directors/ Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the directors are required to:

• A. Select suitable accounting policies and then apply them consistently;

• B. Make judgements and estimates that are reasonable and prudent;

• C. Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business;

• D. State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

The Directors/Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and for ensuring that the assets are properly applied in accordance with Charity Law.

The Directors/Trustees Annual Report, under the Charities Act 2011 and the Companies Act 2006, was approved by the Board of Trustees on 17 Aug 2022 including approving, in their capacity as Directors, the Directors Report contained therein, and is signed and authorised on our behalf by the Chair of the Board of Directors.

Kay Fawcett Chair

17 Aug 2022

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Independent Auditor’s Report to the Members and Trustees of Nuneaton & Bedworth Leisure Trust

Opinion

We have audited the financial statements of Nuneaton & Bedworth Leisure Trust for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities (including Income and Expenditure Account), the Consolidated and Company Balance Sheet, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

• give a true and fair view of the state of the groups and the charitable company’s affairs as at 31 March 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (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 group 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 our opinion.

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 cast significant doubt on the charitable company’s and group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other Information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves, If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Independent Auditor’s Report to the Members and Trustees of Nuneaton & Bedworth Leisure Trust (continued)

Opinions on other Matters Prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

• the information given in the trustees’ report, which includes the directors’ 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 included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Matters on Which we are Required to Report by Exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 22, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 group’s or 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 for the Audit of the Financial Statements

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

• adequate and proper accounting records have not been kept; 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; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

25

Independent Auditor’s Report to the Members and Trustees of Nuneaton & Bedworth Leisure Trust (continued)

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor’s report.

and the group for fraud. The laws and regulations we considered in this context for the UK operations were Companies Act 2006, Charities Act 2011, Ofsted regulations, Tax legislation, Health & Safety legislation and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

Extent to Which the Audit was Considered Capable of Detecting Irregularities, Including Fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to this risk included enquiries of management and the Board of trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and other regulatory bodies, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

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 and trustees 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, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Helen Drew Senior Statutory Auditor For and on behalf of Crowe U.K LLP Statutory Auditor Midlands

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

27

Consolidated Statement of Financial Activities (Including Income and Expenditure Account) For the Year Ended 31 March 2022

Unrestricted funds

		Undesignated	Designated	Restricted	Total	Total
		funds	funds	funds	funds	funds
		2022	2022	2022	2022	2021
	Note	£	£	£	£	£
Income						Restated
Income from charitable activities	2	1,837,789	-	46,477	1,884,266	1,391,106
Income from other trading activities	3	221,294	-	-	221,294	74,506
Investment income	4	6,969	-	-	6,969	9,895
Total income		2,066,052	-	46,477	2,112,529	1,475,507
Expenditure
Expenditure on charitable activities	6	1,923,816	214,192	46,477	2,184,485	1,925,605
Expenditure on raisingfunds	3	85,676	-	-	85,676	59,873
Total expenditure		2,009,492	214,192	46,477	2,270,161	1,985,478
Net income / (expenditure)		56,560	(214,192)	-	(157,632)	(509,971)
Transfers between funds	16	101,389	(101,389)	-	-	-
Net income/(expenditure) before other recognised gains/(losses)		157,949	(315,581)	-	(157,632)	(509,971)
Other recognised gains/(losses):					-	-
Actuarialgains(losses)on defined benefitpension scheme		-	-	-	-	-
Net movement in funds		157,949	(315,581)	-	(157,632)	(509,971)
Funds brought forward		296,032	1,093,343	-	1,389,375	1,899,346
Funds carried forward	17	453,981	777,762	-	1,231,743	1,389,375

The statement of Financial Activities includes all gains and losses recognised in the year.

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Consolidated Balance Sheet

			Group		Charity
		2022	2021	2022	2021
	Notes	£	£	£	£
			Restated		Restated
Fixed Assets
Tangible fxed assets	10	771,356	975,106	771,356	975,106
Investments	11			100	100
Current Assets		771,356	975,106	771,456	975,206
Stocks	12	4,964	4,215	-	-
Debtors	13	93,662	64,157	93,635	64,157
Cash at bank and in hand		663,369	921,388	663,369	921,138
		761,995	989,760	757,004	985,295
Creditors: amounts fallingdue within oneyear	14	(301,608)	(575,491)	(301,717)	(576,126)
Net Current(Liabilities)/Assets		460,387	414,269	455,287	409,169
Total assets less current liabilities		1,231,743	1,389,375	1,226,743	1,384,375
Net assets		1,231,743	1,389,375	1,226,743	1,384,375
Reserves
Restricted funds	16	-	-	-	-
Unrestricted funds:
- designated funds	16	777,762	1,093,344	777,762	1,093,344
- other charitable funds		453,981	505,016	448,981	500,016
Prior Year Adjustment	23		(208,984)		(208,984)
		1,231,743	1,389,375	1,226,743	1,384,375

The company has taken the exemption under Section 408 of the companies Act 2006 not to disclose the company’s profit and loss account. The deficit for the financial year dealt with in the financial statements of the parent charity £293,250 (2020: £524,604 deficit - restated).

The financial statements on pages 28 to 30 were approved by the board of directors/trustees and authorised for issue on 17 Aug 2022 and are signed on its behalf by:

K.Fawcett - Chair

29

Consolidated Cash Flow Statement For the year ended 31 March 2022, restated under prior year 2021.

			2022	2021
	Note		£	£
Cashprovided by (used in) operating activities	20		(263,562)	55,272
Cash fows from investing activities
Interest income			6,969	9,895
Purchase of property, plant and equipment			(10,442)	-
Proceeds on disposal of assets			9,016
Cashprovided by (used in) investing activities			(5,543)	9,895
(Decrease)/Increase in cash and cash equivalents in theyear			(258,019)	65,167
Cash and cash equivalents at the beginningof theyear			921,388	856,221
Cash and cash equivalents at the end of theyear			663,369	921,388
	As 1	April	Cash	At 31st
	2021		Flows	March 2022
		£	£	£
Analysis of changes in net debt
Cash	921,388		(258,019)	663,369
Total	921,388		(258,019)	663,369

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Accounting Policies For the year ended 31 March 2022

Basis of Accounting

The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities issued in 2015 (SORP 2015), Financial Reporting Standard 102 (FRS102) and the Companies Act 2006.

Nuneaton & Bedworth Leisure Trust meets the definition of a public entity under FRS102.

Assets and liabilities are initially recognised at the transaction value unless otherwise stated.

In accordance with SORP 2015, incoming resources and resources expended have been analysed in notes 2 and 6 into the charitable company’s two activities, which in the opinion of the Directors/Trustees are sports and leisure and community initiatives.

The consolidated statement of financial activities and the group balance sheet consolidate the financial statements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. Intra-group transactions are eliminated on consolidation.

An exemption from disclosure of the Statement of Financial Activities of the parent company has been taken under Section 408 of the Companies Act 2006.

Going Concern

The Trustees have considered the expectations and intentions for the next twelve months and are confident that NBLT has adequate resources to continue in operational existence for the foreseeable future and therefore considers it appropriate to prepare the financial statements on a going concern basis.

Key Judgements and Assumptions

There are no key judgements and assumptions that management consider to have a significant impact on the financial statements.

Incoming Resources

Grants receivable

Revenue and capital grants receivable are recognised in the Statement of Financial Activities 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

Government grants are recognised in the Statement of Financial Activities upon entitlement.

Operation of Facilities

Income from the operation of the facilities is included in incoming resources in the period in which the charitable company becomes entitled to receipt.

Hire of Hall

Income from the hire of the hall is included in incoming resources in the period in which the charitable company becomes entitled to receipt.

Interest Receivable

Interest is included when receivable by the charitable company.

Resources Expended

Resources expended are recognised in the period in which they relate to. Resources expended include attributable VAT which cannot be recovered.

Resources expended are allocated to the particular activity where the cost relates directly to that activity. 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. Charitable activities include expenditure associated with the operation of sports and leisure facilities and running community initiatives and include both the direct costs and support costs relating to these activities. Governance costs include those costs incurred in the governance of the Charity and its assets and are primarily associated with constitutional and statutory requirements.

Operating Leases

Rentals paid under operating leases are charged to the SOFA on a straight line basis over the life of the lease.

31

Accounting Policies (continued) For the year ended 31 March 2022

Tangible Fixed Assets

Individual fixed assets costing £2,000 or more are capitalised at cost.

Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life, as follows:-

Fixtures, fittings and equipment: over 4 years

Building alterations and accommodation : over 10 years (or the life of the lease if lower)

Freehold land & buildings: over 25 years for buildings and no depreciation on land

Stocks

Stocks are valued at the lower of cost and net realisable value. Cost is computed on a first in first out basis. Net realisable value is based on estimated selling price less further costs expected to be incurred to completion and disposal. Provision is made for obsolete and slow moving items.

Debtors Recognition and Measurement

Short term debtors are measured at the transaction value, less any impairment.

Financial Instruments

The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and

liabilities like trade and other accounts receivable and payable. However, if the arrangements of a short-term instrument constitute a financial transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Activities when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Creditors Recognition and Measurement

Short term creditors are measured at the transaction value.

Retirement Benefits

A defined contribution scheme with Scottish Widows has been available to some employees as from 1st May 2015, with an initial employer contribution rate of 10%. This contribution rate can be varied depending upon affordability. These contributions will be accounted for in the SOFA as they become payable.

The assets of the new scheme are held separately from those of NBLT in independently administered funds.

Fund Structure

Nuneaton & Bedworth Leisure Trust Limited has various types of funds for which it is responsible. These are as follows:

Undesignated Funds

Funds which are expendable at the discretion of the Board in furtherance of NBLT’s objects.

Designated Funds

NBLT may at its discretion set aside unrestricted funds for specific purposes. If no longer required, designated funds are reclassified as undesignated unrestricted funds.

Restricted Funds

These are earmarked by the grant giver for specific purposes within the overall aims of the organisation. The grants must be utilised in accordance with the specific purposes. Where funds have been provided for the purpose of capital expenditure, depreciation charged on those assets is charged against the restricted fund to which it relates.

Governance

For details of the constitution and registered office, please refer to page 2 of the Directors/Trustees’ Annual Report.

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements For the year ended 31 March 2022

1 Consolidated Statement of Financial Activities for the Year Ended 31 March 2021

The previous years consolidated statement is set out below - restated

		Undesignated	Designated	Restricted	Total	Total
		funds	funds	funds	funds	funds
		2021	2021	2021	2021	2020
		£	£	£	£	£
Income	Notes	Restated	Restated	Restated	Restated
Income from charitable activities	23	1,372,876	-	18,230	1,391,106	1,970,671
Income from other trading activities		74,506	-	-	74,506	312,382
Investment income		9,895	-	-	9,895	8,581
Total income		1,457,277	-	18,230	1,475,507	2,291,634
Expenditure
Expenditure on charitable activities		1,606,475	300,900	18,230	1,925,605	2,326,068
Expenditure on raisingfunds		59,873	-	-	59,873	141,032
Total expenditure		1,666,348	300,900	18,230	1,985,478	2,467,101
Net income (expenditure)		(209,071)	(300,900)	-	(509,971)	(175,467)
Transfers between funds		-	-	-	-	-
Net income before other recognised gains/(losses)		(209,071)	(300,900)	-	(509,971)	(175,467)
Other recognisedgains:-		-	-	-	-	-
Net movement in funds		(209,071)	(300,900)	-	(509,971)	(175,467)
Funds brought forward		505,103	1,394,243	-	1,899,346	2,074,813
Funds carried forward		296,032	1,093,343	-	1,389,375	1,899,346

33

Notes To The Financial Statements (continued) For the year ended 31 March 2022

2. Income from Charitable Activities

		Unrestricted	Restricted	Total	Total
		funds	funds	funds	funds
		2022	2022	2022	2021
	Notes	£	£	£	£
Sports and leisure income					Restated
- management fee		45,911	-	45,911	11,733
- fees from sporting activities		623,335	-	623,335	103,630
Fees from other activities		432	-	432	5,715
Income from Community initiatives		669,678	-	669,678	121,078
- grant income for community ofcers		-	46,477	46,477	17,915
- grant income for community initiatives		-	-	-	315
- coaching and physical activity consultancy in the community		171,046	-	171,046	86,899
- educational services		875,272	-	875,272	604,782
Other income		1,046,318	46,477	1,092,794	709,911
Income from government grants (COVID 19)	23	96,793	-	54,271	474,010
Coronavirus Retail, Hospitality and Leisure grant		-	-	42,522	86,107
Insurance claim settlement(business interruption(COVID 19)		25,000	-	25,000	-
		121,793	-	121,793	560,117
		1,837,789	46,477	1,884,266	1,391,106

The charity was eligible to claim additional funding from the Government’s Coronavirus Job Retention Scheme and the Retail,

Hospitality and Leisure Fund during the year in response to the Coronavirus outbreak. This has been disclosed within ‘Other grants’.

34

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements (continued) For the year ended 31 March 2022

3. Income from Other Trading Activities

The charitable company runs catering and ancillary trading activities in order to generate funds for, and in support of, its charitable activities. From 1 January 2006, these activities were undertaken by a trading subsidiary, Leisure Avenues Limited (Company registration no. 05495496), whose results are shown in Note 11.

A summary profit and loss account incorporating the trading subsidiary is shown below:

	2022 2021
	£ £
Turnover	221,294 53,074
Coronarvirus Job Retention Scheme grant	- 21,432
Staf costs	(52,105) (36,904)
Cost of sales and administrative expenses	(33,571) (22,969)
Netprofit /(loss)	135,618 14,633
4. Investment Income
	2022 2021
Bank interest	£ £ 6,969 9,895
	6,969 9,895

5. Analysis of Total Expenditure

	Staf	Supplies			Total	Total
	costs	& services	Other	Depreciation	2022	2021
	£	£	£	£	£	£
Fundraising Trading	52,105	28,779	4,792	-	85,676	59,873
Charitable Activities
- Sports and Leisure	661,882	91,682	229,279	211,833	1,194,676	1,056,309
- Community Activities	752,537	148,482	74,796	2,359	978,174	860,148
Governance Costs	-	11,635	-	-	11,635	9,148
	1,466,524	280,578	308,866	214,192	2,270,160	1,985,478

35

Notes To The Financial Statements (continued) For the year ended 31 March 2022

5. Analysis of Total Expenditure

	Staf	Supplies			Total	Total
	costs	& services	Other	Depreciation	2021	2020
	£	£	£	£	£	£
Fundraising Trading	36,904	20,820	2,149	-	59,873	141,033
Charitable Activities
- Sports and Leisure	563,094	129,637	142,038	221,540	1,056,309	1,297,939
- Community Activities	696,374	97,818	63,596	2,360	860,148	1,019,326
Governance Costs	-	9,148	-	-	9,148	8,803
	1,296,372	257,423	207,783	223,900	1,985,478	2,467,101

6. Analysis of Charitable Expenditure

6 Analysis of Charitable Expenditure
.	Sports	Community	Total	Total
	& leisure	initiatives	2022	2021
	£	£	£	£
Staf costs and other employee costs	661,882	752,537	1,414,419	1,259,468
Central premises costs	229,279	74,796	304,074	205,634
Supplies and services	103,317	148,482	251,799	236,603
Depreciation	211,833	2,359	214,192	223,900
	1,206,311	978,174	2,184,485	1,925,605
	Sports	Community	Total	Total
	& leisure	initiatives	2021	2020
	£	£	£	£
Staf costs and other employee costs	563,094	696,374	1,259,468	1,520,127
Central premises costs	143,038	63,596	205,634	292,434
Supplies and services	138,785	97,818	236,603	268,598
Depreciation	221,540	2,360	223,900	244,909
	1,066,457	860,148	1,925,605	2,326,068

36

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements (continued) For the year ended 31 March 2022

7. Analysis of Governance Costs

7. Analysis of Governance Costs
	2022	2021
	£	£
Professional fees	11,070	7,198
Trustees indemnityinsurance	565	1,950
	11,635	9,148

8. Staff Costs

8. Staf Costs
	2022	2021
	£	£
Salaries and wages	1,325,705	1,175,625
Social security costs	77,814	63,036
Pension costs	60,808	57,711
	1,464,328	1,296,372
	2022	2021
	Number	Number
The average monthly number of persons (including directors, casual and part time staf)
during the year	115	148
The average number of full-time equivalent employees during the year	57	63
The number of employees whose emoluments fall within the band £60,	1	1

The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2021: Nil) neither were they reimbursed expenses during the year (2021: Nil). No charity trustee received payment for professional or other services supplied to the charity (2021: Nil).

The key management personnel of the group, including the charity and the trading subsidiary, comprise the Trustees, the General Manager, Empire Manager, Bermuda Park Nursery Manager, Bermuda Adventure Manager, School & Sporting Manager, Operations Manager and the HR & Payroll Manager. The total employee benefits of the key management personnel of the Trust were £337,013 (2021: £244,033), including National Insurance and pension contributions.

37

9. Net Expenditure for the Year

9. Net Expenditure for the Year
	2022	2021
	£	£
This is stated after charging:-
Auditors remuneration - external audit services	11,070	7,198
Auditors remuneration - other services	3,800	-
Proft on disposal of tangible fxed assets	(9,017)	-
Depreciation of tangible fxed assets
- owned assets	214,192	223,900
Operating leases
- lease of land and buildings	115,710	135,759
- hire ofplant and equipment	2,160	2,160

10. Tangible Fixed Assets

10. Tangible Fixed Assets
	Freehold		Fixtures
	Land and	Building	Fittings and
	Buildings	Alterations	Equipment	Total
Group and Charity	£	£	£	£
Cost
As at 1st April 2021	350,000	1,959,864	419,548	2,729,412
Reclassifcations	-	-	-	-
Additions	-	-	10,442	10,442
Disposals	-	-	(89,273)	(89,273)
As at 31st March 2022	350,000	1,959,864	340,717	2,650,581
Depreciation
As at 1st April 2021	82,083	1,262,689	409,534	1,754,306
Reclassifcations	-	-	-	-
Charge for the year	10,000	195,493	8,699	214,192
Impairments	-	-	-	-
Disposals	-	-	(89,273)	(89,273)
As at 31st March 2022	92,083	1,458,182	328,960	1,879,225
Net book value
As at 31st March 2022	257,917	501,682	11,757	771,356
As at 31st March 2021	267,917	697,175	10,014	975,106

38

No depreciation has been charged on the freehold land element of the land and buildings.

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements (continued) For the year ended 31 March 2022

11. Trading Subsidiary

The trading subsidiary, Leisure Avenues Limited, which was incorporated on 30 June 2005, is wholly owned by the charity and operates the vending machines, catering facilities and secondary sales at our facilities. All of the profits of the subsidiary are gifted to the charity, NBLT 92a Wheat Street, Nuneaton, CV11 4BH.

		Group		Charity	Charity
	2022		2021	2022	2021
	£		£	£	£
Invested in NBLT Tradinglimited(100 ordinaryshares of £1 each).	-		-	100	100
The results of the trading subsidiary are as follows:
				2022	2021
				£	£
					Restated
Turnover				221,294	61,999
Expenditure				(85,676)	(59,873)
Proft for the year before tax				135,618	2,126
Gift aid payment to parent undertaking				(135,618)	(2,126)
Net assets				5,100	5,100

12. Stocks

12. Stocks
		Group			Charity
	2022		2021	2022		2021
	£		£	£		£
Goods for resale	4,964		4,215	-		-
	4,964		4,215	-		-

39

Notes To The Financial Statements (continued) For the year ended 31 March 2022

13. Debtors

13. Debtors
		Group	Charity
		2022 2021	2022 2021
		£ £	£ £
Trade debtors		21,954 18,781	21,954 18,781
Prepayments		52,035 43,521	52,008 43,521
Accrued income		19,672 1,855	19,672 1,855
		93,662 64,157	93,635 64,157
14. Creditors: Amounts Due Within One	Year
		Group	Charity
		2022 2021	2022 2021
		£ £	£ £
	Note	Restated	Restated
Trade creditors		116,252 129,628	116,252 129,628
Other taxation and social security		20,247 24,280	20,247 24,280
Other creditors		- 9,738	- 9,738
Amount owing to HMRC - Prior year adjustment	23	- 208,984	- 208,984
Local Government pension scheme		8,481 -	8,481 -
Amounts owed to group undertakings		- -	2,878 635
Accruals		116,364 95,828	113,595 95,828
Deferred income	15	40,264 107,033	40,264 107,033
		301,608 575,491	301,717 576,126

40

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements (continued) For the year ended 31 March 2022

15. Deferred Income

Deferred income comprises mainly advance receipts for sports and leisure activities, grants received in advance for community initiatives and nursery fees received in advance. Income deferred in the current year comprises grants received in advance of £18,755, school coaching fees received in advance of £7,360 and nursery fees/funding received in advance of £14,149.

	Group	Charity
	2022	2022
Balance as at 1st April 2021	107,033	107,033
Amount released to incoming resources	(107,033)	(107,033)
Amount deferred in theyear	40,264	40,264
Balance as at 31 March 2021	40,264	40,264

16. Analysis Of Charitable Funds

16. Analysis Of Charitable Funds
Restricted Funds	1 April	Incoming	Resources	31 March
	2021	resources	expended	2022
	£	£	£	£
Communityofficers	-	46,477	(46,477)	-
	-	46,477	(46,477)	-
Restricted Funds	1 April	Incoming	Resources	31 March
	2020	resources	expended	2021
	£	£	£	£
Community ofcers	-	17,915	(17,915)	-
Communityinitiatives	-	315	(315)	-
	-	18,230	(18,230)	-

41

Designated Funds	1 April	New	Utilised	Transfers	31 March
	2021	Designations			2022
	£	£	£	£	£
Fixed assets	975,106	-	(203,750)	-	771,356
Capital and infrastructure	118,237	-	(10,442)	(101,389)	6,406
	1,093,343	-	(214,192)	(101,389)	777,762
Designated Funds	1 April	New	Utilised	Transfers	31 March
	2020	Designations			2021
	£	£	£	£	£
Fixed assets	1,199,005	-	(223,899)	-	975,106
Capital and infrastructure	195,237	-	(77,000)	-	118,237
	1,394,242	-	(300,899)	-	1,093,343
Undesignated Funds	1 April	Incoming	Resources	Transfers	31 March
	2021	Resources	Expended	In/Out	2022
	£	£	£	£	£
General Funds	263,032	2,066,052	(2,009.492)	101.389	453,981
	263,032	2,066,052	(2,009,492)	(101,389)	453,981
Undesignated Funds	1 April	Incoming	Resources	Transfers	31 March
	2020	Resources	Expended	In/Out	2021
	£	£	£	£	£
General Funds	505,103	1,457,277	(1,666,348)	-	296,032
	505.103	1,457,277	(1,666,348)	-	296,032

Name of fund Description, nature and purposes of the fund

Fixed assets Capital and infrastructure

Revenue Transfer between funds

This fund represents the value of fixed assets held by the Trust which have not been financed by restricted funds. To fund planned acquisition, development and improvements to buildings and facilities together with the replacement of equipment, including Gym and IT requirements, as it becomes due for replacement. To fund planned maintenance of facilities, severance costs following restructure and potential liabilities. This is the contribution towards designated funds during the year and the use of existing designated funds.

42

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements (continued) For the year ended 31 March 2022

17. Analysis of Group Net Assets Between Funds

Undesignated funds	Designated funds	Designated funds	Restricted	funds Total funds
2022 2021	2022	2021	2022	2021 2022 2021
£ £	£	£	£	£ £ £
Restated		Restated		Restated Restated
Fixed assets - -	771,356	975,106	-	- 771,356 975,106
Current assets 755,589 871,523	6,406	118,237	-	- 761,995 989,760
Current liabilities(301,608) (575,491)	-	-	-	-(301,608) (575,491)
453,981 296,032	777,762	1,093,343	-	- 1,231,743 1,389,375

18. Legal Status of NBLT

NBLT is a company limited by guarantee and has no share capital.

The liability of each member in the event of winding up is limited to £1.

19. Commitments Under Operating Leases

At 31 March 2022 the charitable company had annual commitments under non-cancellable operating leases as follows:

	2022	2021
	£	£
Land and buildings:
- due in under 1 year.	114,521	125,961
- due between 1 and 5 years.	453,515	475,046
- due after more than 5 years.	231,147	359,425
Plant and machinery:
- due in under 1 year.	3,200	2,160
- due between 1 and 5years.	12,800	-
	815,182	962,592

43

Notes To The Financial Statements (continued) For the year ended 31 March 2022

20. Reconciliation of Net Movement of Funds to Net Cash Flow

		Group
	2022	2021
	£	£
		Restated
Net movement in funds	(157,632)	(509,971)
Add back depreciation charge	214,192	223,900
Deduct interest income shown in investing activities	(6,969)	(9,895)
Decrease/(Increase) in stock	(749)	3,259
Increase/(Decrease) in debtors	(29,504)	46,761
Increase/(Decrease) in creditors	(273,883)	301,218
Profit on disposal of assets	(9,017)	-
Net cash used in operating activities	(263,562)	55,272

21. Related Party Transactions

21. Related Party Transactions
	2022	2021
	£	£
The charitable company completed the following transactions with its subsidiary, Leisure Avenues Ltd.		Restated
Gift aid donation from Leisure Avenues	135,618	2,126
Balance owing from/(to) Leisure Avenues at 31st March	(2,878)	(635)
Nursery recharges from Leisure Avenues	60,007	44,000

44

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements (continued) For the year ended 31 March 2022

22. Financial Instruments

22 Fiil Itt
. nanca nsrumens	2022	2021
	£	£
Financial assets
Financial assets that are debt instruments measured at amortised cost	704,995	942,024
Financial liabilities
Financial liabilities measured at amortised cost	241,097	235,194

Financial assets measured at amortised cost comprise debtors and cash but excludes prepayments and stock.

Financial liabilities measured at amortised cost comprise all liabilities excluding deferred income and other taxation and social security.

23. Prior Year Adjustment

23 Pi Y Adtt
. ror ear jusmen	Group	Charity
	2022	2022
Overclaim relating to prior years	208,984	208,984

An overclaim of the Coronavirus Job Retention Scheme grant was made during the year ended 31 March 2021 in respect of employees furloughed from employment during COVID-19.

As a result, an adjustment was made to the prior year comparatives to reduce income within ‘other grants’ for the overclaimed amount of £208,984. The undesignated funds have been adjusted accordingly.’

45

NB nblelsuretrust.or9

Annual Report & Financial Statements for the year ended 31 March 2022

Nuneaton & Bedworth Leisure Trust Ltd (A Company Limited by Guarantee) Charity registration No. 1109970 Company registration No. 04955172

1

The Directors/Trustees of Nuneaton & Bedworth Leisure Trust (NBLT) present their Directors’/Trustees’ Annual Report and the Financial Statements of the Charity for the year ended 31 March 2022, as required under the Charities Act 2011 and the Companies Act 2006.

NBLT is a private company limited by guarantee and is incorporated in England and Wales (Co. No. 04955172). The registered address is detailed below.

Directors/Trustees

J Dolman K Fawcett J Stubbs (Resigned 11th February 2022) P Sowter E Mitchell B Carter

Finance Manager

S Plowman (resigned 18 May 2022) N Jarratt (appointed 18 May 2022)

Operations Manager

R Booth

Secretary

M Beasley (resigned 22 September 2021)

S Plowman (appointed 22 September 2021, resigned 15 May 2022)

Principal Office

92a Wheat Street Nuneaton Warwickshire CV11 4BH

Registered Office

92a Wheat Street Nuneaton Warwickshire CV11 4BH

Places Of Trade

Various locations in and around Nuneaton, Warwickshire, UK.

Auditors

Crowe U.K. LLP Rounds Green Road Oldbury West Midlands B69 2DG

Solicitors

Blythe Liggins Edmund House Rugby Road Leamington Spa Warwickshire CV32 6EL

Bankers

Co-Operative bank, 6 Warwick Row, Coventry CV1 1EE

Santander, Newdegate St, Nuneaton, CV11 4HX

Redwood, The Nexus Bldg, Broadway, Letchworth Garden City, SG6 3TA

Aldemore Bank PLC, Apex Plaza, Forbury Road, Reading, RG1 1AX

N Jarratt (appointed 15 May 2022)

2

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Directors’/Trustees’ Annual Report

Introduction

NBLT is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated 6 November 2003, amended to allow for current governance arrangements on 26 September 2018.

NBLT was registered with the Charity Commission on 13 June 2005 (Registered charity No. 1109970). The objects of the charity are the same as the principal activities of the company set out below. The charitable company has produced these accounts in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities (SORP 2015).

Related Parties

Other than the Directors / Trustees, the only related party relationship NBLT has is with its 100% owned subsidiary, Leisure Avenues Limited (Company registration no. 05495496). The principal office of Leisure Avenues Ltd. is 92a Wheat Street, Nuneaton, CV11 4BH.

Principal Activities

The principal activities are to:

• provide or assist in the provision of facilities and services for educational, recreational, sporting or other leisure time occupation in the interests of social welfare to the public at large or to any section or sections of the public who may have need of such facilities and services by reasons of their youth, age, infirmity or disability or social and economic circumstances;

• promote and preserve good health through community participation in healthy recreation and education; and

• operate and maintain the catering and ancillary trading facilities in support of the above.

3

Directors’/Trustees’ Annual Report (continued)

Directors/Trustees

The Directors/Trustees of the company who served during the year were as follows:

J Stubbs – (Resigned 11th February 2022) K Fawcett E Mitchell P Sowter J Dolman B Carter

Decision-Making Structure

The Board of Management, which can have up to nine members (plus three co-opted members with full voting rights), administers NBLT. The Board normally meets at least quarterly covering strategy, policy, performance, customer statistics, finance, audit and any current issues.

The General Manager is appointed by the Trustees to manage the dayto-day operations of NBLT. During the year, management of NBLT passed to the Finance Manager and Operations Manager. To facilitate effective operations, the Finance Manager and Operations Manager have delegated authority, within terms of delegation approved by the Trustees, for operational matters including finance, employment and business development.

The Finance Manager and Operations Manager are responsible for ensuring that NBLT delivers the services specified and that key performance indicators are met.

Recruitment and Training of Directors/Trustees

The Directors of NBLT are also charity Trustees for the purposes of charity law and under NBLT’s Standing Orders, are known as members of the Board of Management. Under the requirements of the Memorandum and Articles of Association the members of the Board of Management are elected to serve for a period until the third AGM and then a third must retire each year. They may be immediately re-elected. The Board of Management elects its own chair. The Board of Management represent a broad mix of skills.

The Trustees are the only Members of NBLT and form the Board of Management. Upon winding up, each Member’s liability is limited to £1.

NBLT must have between three and nine Trustees at all times. Three additional Trustees with voting rights can be co-opted but none have been appointed as yet.

Supplementary to the election of members as Trustees at the AGM, the Board agreed a recruitment and selection process for new Trustees to be used in the interim. Once a panel of three Trustees has selected a Trustee, an induction session is arranged with the Chair of the Management Board and the General Manager. The induction is based around the Trustees Handbook, which outlines the duties and responsibilities of the Trustee role. Documentation covered includes: -

• The Memorandum and Articles of Association

• Financial Regulations and Standing Orders

• Annual Business Plan

The induction process is then expanded to the Facility/Service Managers to provide information on the various aspects/services of NBLT.

Third Party Indemnity Provision for Directors

Qualifying third party indemnity provision is in place for the benefit of all Directors/ Trustees of NBLT.

Statement as to Disclosure of Information to Auditors

The Directors/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 Directors/Trustees have confirmed that they have taken all the steps that they ought to have taken as Directors/Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Reserves Policy

The Trustees reviewed the reserves policy in September 2021, taking into account the draft financial results from 2020/21. The revised policy includes an

4

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

unchanged general reserve of £500,000 to cover working capital and to act as a risk contingency. As at 31st March 2022 unrestricted reserves, those not designated for specific projects, stood at £453,981. Designated funds amounted to £777,762, of which £771,356 is held in tangible fixed assets that would have to be sold in order to raise the cash. All previously allocated reserves have now been moved into the general reserve to move this closer to the target £500,000 above.

The Trustees decided that the surplus or deficit during the year would be allocated to the general reserve.

Reserve levels are not as high as would be ideal, as would be the case in most organisations, but they are as expected and are of a size that allows NBLT to operate effectively and to be able to plan for the future.

The Trustees are due to review the reserves policy for the 5 year period 2022 – 2027 at its meeting in August 2022 and will also look to address the shortfall in the general reserve.

Investment Policy

The Trustees, having regard to the liquidity requirements of operating the business and to the reserves policy have operated a policy of keeping available funds in an interest bearing deposit and reserve account and seek to achieve a rate of interest which is maximised whilst remaining risk-averse. All cash invested has remained within the UK and it is

anticipated that this will not change.

The invested funds held on deposit and in the reserve account achieved an average rate of 0.76% for the year.

Fundraising

NBLT does not carry out material fundraising activities requiring disclosure under S162A of the Charities Act 2011.

Charities Governance Code

Trustees are aware of the guidance on the Charities Governance Code and are satisfied that the governance code they follow aligns with it.

Key Management Personnel

Key management personnel (KMP) are employed and remunerated based upon their skills, experience, ability, attitude and market forces. They all work to role descriptions and are regularly appraised.

Going Concern

NBLT has cash resources that will meet its day to day working capital requirements in the short term.

Whilst NBLT is reporting a deficit for 2021/22 of £157,632, this is more than accounted for by the depreciation charge, which is as a result of planned investment in NBLT’s assets. Other than the planned depreciation charge, NBLT made an operating surplus of £56,560. This is a good result considering that the year has

been affected by COVID closures and subsequent recovery.

We are predominantly self-funded through customer charges and are very reliant on their attendances to our facilities.

Empire Gym & Studios re-opened on 12th April 2021 with strict cleaning procedures and admittance. Members could only access the gym if they pre booked. Temperature checks were taken at the entrance.

A one way system was put in place and Empire Heaven remained closed to allow for an exit from the building.

Many memberships remained frozen due to Covid.

Opening hours were reduced as follows. Monday to Friday 6.30am-2.00pm and 3.00 pm – 9.00pm and Saturdays 8.00am -1.00pm

Classes were re-introduced on 17th May and delivered in Studio 1 only and were well attended.

We operated a 1.5 hour bookable gym slot which helped support the governments track and trace system as well as keeping our members socially distanced. Social distancing led to a reduction in the number of gym equipment available to customers.

Due to COVID restrictions we were unable to offer gym inductions to new members but continued to offer our special offer deals.

On 19th July Empire Heaven re-opened and numbers have been growing steadily as members return although still very

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cautious. We have managed to secure further memberships from customers from Lady-pace gym which has now closed down.

Later in the year as COVID restrictions eased we opened all facilities, kit & equipment and increased opening hours to;

• Monday to Friday 6.30am-9.00pm,

• Saturdays & Sundays 7.00am-1.00pm

Although footfall throughout the gym increased steadily, it was slower than expected again due to COVID - Omicron variant.

School coaching services have also been significantly affected this year with the ongoing covid restrictions, isolations and staff absence due to covid isolations. Community activities continued to be affected during the first part of the year.

Bermuda Park Nursery has returned to near-normal activities however has continued to be affected by positive covid cases resulting in groups of children self isolating and staff self isolations.

The proposed purchase of Empire Gym & Studios by Warwickshire County Council (WCC) in order to improve traffic flows in the town centre is ongoing. NBLT continues to try to find alternative premises to relocate to, and are progressing in negotiations to come to an agreement with WCC.

The Trustees are confident that NBLT has and will have adequate resources to continue in operational existence for the foreseeable future and therefore consider

it appropriate to prepare the financial statements on a going concern basis.

Directors’/Trustees’ Report

Objects and Strategies

The objects of NBLT are: -

• provide or assist in the provision of facilities and services for educational, recreational, sporting or other leisure time occupation in the interests of social welfare to the public at large or to any section or sections of the public who may have need of such facilities and services by reasons of their youth, age, infirmity or disability or social and economic circumstances;

The strategies employed to achieve NBLT’s

objects are: -

• Promote and preserve good health through community participation in healthy recreation and education;

• Manage NBLT’s finance in accordance with good business practices, legislative requirements and in accordance with the Memorandum and Articles of Association and other agreements as they apply;

• To ensure that NBLT’s education and leisure provision meets the needs of the local community in the most effective and efficient way;

• To develop a change of culture to allow employees to be empowered and take ownership of NBLT’s objectives;

• To generate investment opportunities for the development and improvement of education and leisure facilities and

sports opportunities;

• To work with external partners to maximise funding opportunities and tackle social issues within the borough;

• To develop and attract grant funding from all appropriate sources;

• To promote the positive benefits of leisure in terms of health related issues;

• To be aware of all environmental issues and take account of the effect NBLT’s business would have on local, national and global environment;

• To respect the gender, age and ethnicity of all customers and employees.

Review of the Business

A brief summary of our current facilities and services and the events of the past year is as follows:-

Nuneaton & Bedworth Leisure Trust Limited (NBLT)

2021/22 has continued to be a year effected by COVID 19, it has remained a difficult and frustrating year trying to achieve our objectives in an everchanging environment, in particular, staff absence caused by COVID sickness and isolation, has been a huge challenge to operations.

As the government has recently moved into a living with COVID plan, we are more hopeful of operating a normal year in 2022/2023.

• Empire Gym and Studios is a 20,000 sq ft ex nightclub which was purchased and converted into a premier health & fitness facility. This facility and its employees continues to offer an excellent customer

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

experience for people wishing to improve themselves. It is the best equipped and best staffed facility in the area and offers personal help and support to all customers. However, financially it has suffered a significant downturn since the opening of a budget gym in Nuneaton town centre in October 2017. We are always looking for new customers but accept that we are never going to return to the number of members that we had prior to the budget gym opening. Empire did not reopen until April 2021 and that was on a very reduced capacity and opening hours, we opened further from July increasing our numbers within the gym but maintaining all COVID restrictions in place. Our class timetable remained very reduced as a result of COVID restrictions and, like all gyms, we have lost a significant number of members during this time. The challenge ahead is to attract those customers back, and more, when we are allowed to open in full, including exercise classes.

• We have introduced new style classes to the timetable and bought some old favourites back. We also started to deliver in 2022 Circuit classes on the new rig within the Performance area of the gym. These have proved very popular with 5 classes per week being attended.

• Empire Heaven is a ladies only gym located within the Empire Gym & Studios facility but with its own separate entrance. The gym is kitted out with the highest specification pneumatic resistance equipment that is extremely safe to use. This is complimented by a good range of cardio equipment of the same quality

and design as those used in the main gym. Our customers get a nice compact facility with easy access to the other activities within the Empire building, giving them a simple pathway if they want to take their exercise to the next step. Unfortunately, Empire Heaven has been closed all year so as to enable a one way system to operate within Empire as per the required COVID safe procedures.

• Youth, Communities and School (YCS) outreach services deliver sports coaching in schools including PPA sessions out of school hours clubs. We also work in community settings in the local Nuneaton and Bedworth Borough with other local organisations and charities. We offer alternative education for children “struggling” in a traditional school setting (APE). The team deliver community initiatives such as promoting disability sports and healthy eating/ living advice and assistance as well as operating school wraparound services and a very popular “playscheme” during school holidays. These services have been able to start back up following COVID restrictions. We are not back at full capacity but we are getting close to gaining most sessions and customers back following the COVID restrictions.

• Bermuda Adventure is a 9,000 sq ft unit which was fitted out into a high specification functional soft play facility. The site reopened in May to limited numbers with all COVID restrictions in place. Before re opening, improvements were made to the outdoor area and the race track tyres were securely fixed to the paved area.

• Bermuda Park Nursery is a 4,000 sq ft building adjoining Bermuda Adventure fitted out as a high quality children’s nursery. Not only is the nursery equipped to the highest standards, but the garden is fully usable throughout the year with a large canopy, outdoor classroom and artificial turf. Although the nursery has been affected by COVID outbreaks it remained open throughout the year. Numbers of children attending have continued to rise as restrictions eased and parents returned to work.

As can be seen throughout this report, all of our services have been affected by COVID. A number of NBLT employees have spent portions of the year on furlough or flexible furlough. This enabled us to reopen quite quickly and adjust our operations as COVID restrictions changed.

The main challenge ahead of us this year will be our negotiations with WCC about the future of Empire and the probable operational relocation to a new site.

We continue to feel the impact of the COVID pandemic, and are finding recruitment particularly challenging in a post COVID environment.

In 2021 an internal review was carried out of the payments received from the Governments Covid Job Retention Scheme. The review highlighted that the there had been an over statement of the claim, which resulted in an excess payment. The Trust referred itself to HMRC, Action Fraud and the Charities Commission and returned the funds to HMRC. No further action was taken by these bodies.

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Leisure Avenues Limited

NBLT’s subsidiary, Leisure Avenues Limited, manages all sales of café and vending items, together with other ancillary sales, at all of the sites. By far the highest turnover is from the café at Bermuda Adventure. The decision was made early on for high quality home-made food to be served to customers at affordable prices and this has resulted in significant sales in previous years. The Bermuda Adventure kitchen also supplies a varied and home made menu to the children at Bermuda Park Nursery which has proved to be popular with children and parents alike.

Whilst the kitchen has continued to supply the food to the nursery for the whole year, we have reduced our menu. We continue to offer meal deals during term time only, which seem to be popular once again. In January 2022 we increased the number of children that could attend parties, where parents ordered a large amount of meals off the food platter menus.

The overall surplus for the year was £135,618, all of which was gifted to the charitable company (NBLT).

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Financial Review

NBLT is reporting an operating surplus of £56,560 (excluding depreciation), and we are very pleased with that, following the impacts that Covid has had on the year.

We received some insurance compensation for business interruption resulting from COVID, which has contributed to the result.

Staffing shortages have caused us a lot of operational challenges, and despite using agency staff where possible, this has meant some costs saved on employee costs. We recognise this is not ideal, none the less, it has contributed to the surplus above. Things are starting to look more promising for next financial year though, as recruitment drives seem to be paying off and staff absence is improving.

The year has been about re-opening the facilities and services when we could, in a COVID safe way. This has proved challenging at times. There have been times when services have had to be cancelled due to staff shortages described above, which is disappointing, but something which we are confident will improve as the world returns to normality.

As a result of all of this, unrestricted reserves amounted to £453,981 as at 31st March 2022.

Governance and Principal Risks

The Board approved the latest Risk Management Strategy and accompanying Risk Register on 8th September 2021. This details the top 26 risks and has since been constantly monitored by the management team. It also addresses how those risks are being minimised and controlled, together with any contingency plans should the risk come into being. The register is being reviewed on a regular basis, and some items have been replaced with newer risks as situations arise.

Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety for employees and users of the centres.

Following Risk Treatment (the act of controlling, containing and minimising risk), the only risks that remain at a “high” level include:

• Risk of increase in competition, resulting in a financial risk for the Empire Gym.

• Risk of a compulsory purchase of the Empire venue by Warwickshire County Council and the impact on ongoing trade.

• Risk of COVID, with the risk of meeting service obligations due to staff sickness, or the leisure industry closing due to a national lockdown.

Although the risk due to COVID is receding, the risks for the Empire division of the Trust remain high, the management team are investigating its options with the intention to springboard the business for the future.

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Achievements for the Year Ended 31 March 2022

Due to COVID and the changing regulations, closures and disruptions to service delivery, there were limited achievements during the year, apart from again surviving in good condition with most of our employees still in place. The following are our other achievements for the year:

Bermuda Adventure

• We opened our doors to the public on 17th May 2021 following a long period of closure due to the COVID-19 pandemic. We initially opened on reduced hours: Monday to Thursday 9.20am to 1.30pm, Friday 9.20am – 6.10pm, Saturday and Sunday 9.20am – 4.00pm with limited numbers of 120 customers. Two additional sessions were added on a Thursday in July, an afternoon and evening. On 26th July we had sessions Monday to Saturday from 9.20am – 11.20am, 11.30am – 1.30pm, 2.00pm – 4.00pm and 4.10pm – 6.10pm, Sunday 9.20am – 11.20am, 11.30am – 1.30pm and 2.00om – 4.00pm.

• We started to book parties in again from 24th July 2021, we limited the number of children to 20 per party and only held one party per session. We increased our occupancy from 120 to 180 customers.

• We had our first exclusive party booking on 20th August, which once again they have been extremely popular. We have been taking bookings not only on Sundays but during the week.

• In December we started to book more than one party in each session to keep up with demand.

Empire Gym & Studios

• We constantly ask our members for feedback, this is done through conversation and mostly through feedback forms. Here are just a few of the comments received in these forms.

“Massive thank you to all of the Empire Team, being a member of this gym really does feel like being part of a community, which has been more important than ever for us all this year!” (N.A.)

“Just wanted to say how I enjoy the Keiser class. Every session is different, very enjoyable, the instructor makes it fun. Keep up the good work, loved it” (J.S.)

“The instructor was very helpful during my session, was on hand to give advice and support. Very satisfied with the customer service and helpful staff at the gym. Would not use another gym.”

• Wear it Pink day was held in October one of the many events and challenges we hold annually, and staff and members raised a whopping 501.58p. These events are very well received by our members and reinforces the “community gym” we have here. There is great competition and comraderies between all.

Bermuda Park Nursery

• Bermuda Park Nursery (BPN) has steadily increased children’s attendances as we moved out of covid restrictions. The nursery is now operating with a waiting list.

• BPN has three new apprentices, along with three other unqualified staff who are being supported to gain their level III qualification. This is a great opportunity for local people to develop their careers in an ideal environment.

• BPN was re-awarded the Warwickshire Inclusion Kitemarking Scheme (WIncKS), and continues to care for children with severe complex additional needs. The Integrated Disability Service (IDS) continue to signpost more children to us but, unfortunately, we do not always have the capacity to accommodate their request.

• Two further members of staff have successfully been trained as Special Educational Needs and Disability coordinators to support our children with additional needs.

“I am very impressed with the service I received at reception and am going to join the gym because I felt very good about myself and felt like part of the family”. (M.D.)

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Achievements for the Year Ended 31 March 2022 (continued)

Youth Communities and Schools Team

• Throughout the lockdowns, we supported key workers and vulnerable children from local schools during the school holidays at our playscheme. The scheme, again, supported staff at the local hospital so they could continue to go to work. We also supported vulnerable children, who were highlighted by their school as needing support. We had some safeguarding concerns during this time but were able to work with the school and local social services and provided a safe place, with supportive measures in place for the children to attend daily.

• NBLT continued to receive funding from BBC Children In Need for the employment of a Disability Sports Coordinator (DISCO) and Disability Sports & Activity Project. This funding is used to give young children with a disability a great opportunity to improve their social skills, physical activity and increase their friendship with others and enjoyment in sports.

prevent ASB. We have organised park clean ups in the area twice in the last year, with a continuation of funding for another one of these in 2022.We have continued to deliver football sessions for children who are new to football, a playscheme at Middlemarch School with 15 funded spaces for residents and bikeability courses.

• We have continued to run Wembrook Community Centre with two weekly youth clubs, which were funded by the PCC and Awards4All. We have seen increased numbers at the sessions with an increase in children from Eastern European backgrounds which is one of the target demographics for the project. As of March 2022, the HTC project has funded both youth clubs for the future.

• During the covid restrictions our sessions continued to be delivered via zoom, as the restrictions eased, we returned to face to face Disability sessions, continuing to improve the children’s physical activity and social skills with others.

• We are advertising spaces within our Disability football team due to the success of enabling some of our players to progress into mainstream football teams. Our sessions not only improved their footballing ability but built their confidence and belief in themselves enabling them to make the move. We also plan to organise and play matches against other teams.

• Our DISCO staff member completed a 50 mile run for Children in need from the Mailbox in Birmingham to Bermuda Adventure Soft Play World, his achievement was the lead story on the local BBC news. He managed to raise £3,000.00.

• We continued to deliver our funded project with Hilltop & Caldwell Big Local. We received extra funding from December 2021 until the end of May 2022 to continue the project. We will then have an opportunity to ask for a continuation in the funding. Activities have continued to include youth provision at parks, with the aim of engaging with young people to

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

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Future Developments

The following is a selection of plans for the future: -

• Successfully return all services to their pre-COVID levels as soon as possible.

• Continue to negotiate a positive conclusion the local council’s desire to purchase Empire Gym and Studios.

• Procure new office accommodation preferably to link in with the relocation of Empire Gym & Studios.

• Open a new rebranded gym in the locality, offering the same high quality gym and classes.

• Continue to improve standards at BPN to work towards an Ofsted rating of ‘Outstanding’.

• Continue to offer apprenticeships to further develop quality nursery nurses at BPN and develop more apprentices to ‘grow’ our own talent.

• Increase attendances, parties and room hire at Bermuda Adventure.

• Customer service training refreshers to be given to all staff and performances continually monitored for any further training.

• Actively search for new premises to open another high quality nursery provision and/or soft play centre.

• Achieve additional funding to further support and develop disability coaching within the borough. Would like to work alongside a local project to help provide a walking group for children and young people with disabilities. This will give attendants a chance to be active in a low impact form of exercise and opportunities to socialise due to the nature of the group.

• Children and families from the Children in Need project to help us to complete 100 miles rowing and raise as much money as we can.

• Obtaining long term funding for MUGA/community project enabling a long term commitment to delivering within the community.

• To continue to run the project with HTC- and will apply for a continuation in funding for the start of June onwards.

• Aim to start working alongside New Arley as they currently run a funded project there.

• To continue developing and raising the standards of Alternative Provision of Education. We have become an accredited centre for teaching English and Maths so would like to branch out and teach English and Maths functional skills to students.

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Employment

Disability in Employment

Managing disability is an integral part of NBLT’s overall employment strategy, linked closely to promoting a safe and healthy workplace, provision of occupational health, inclusive risk assessments and early intervention and referral of those who acquire a disability whilst in employment.

We are committed and positive about employing disabled people and base recruitment decisions on capability, attitude, experience and potential. Applicants with a disability who meet the essential criteria for the role are guaranteed an interview in line with the Jobcentre Plus two ticks scheme.

We provide work experience opportunities and mentoring to enable disabled students to acquire skills, knowledge and work attitude required for specific roles within the workplace.

Employees are actively encouraged to disclose their disability so that NBLT can plan and make reactive reasonable adjustments to its provisions for disabled employees in general. Disclosure also means that we can provide bespoke/ tailored support and assist employees to realise their full potential. NBLT’s headcount for contracted employees (excluding relief workers) as at 31st March 2022 was 81, of which 1% of employees disclosed that they have a disability in accordance with the definition provided in the Equality Act 2010.

Employees

Employees are the source of our strength. We continuously endeavour to have the right people with the right skills in the right place who want to make a difference to the lives of individuals and communities by helping them to be healthier and more active. We have many achievements to be proud of which have been made possible by having outstanding employees who through their expertise, creativity and commitment have made NBLT what it is today.

NBLT remains committed to creating a great place to work by providing employees with favorable working conditions and terms of employment. Due attention is given to help employees achieve their career goals and potential through providing on-going training and professional development opportunities. We continue to recognise and reward the difference employees make by giving continuous feedback, sharing achievements and rewarding those who go the extra mile.

NBLT values diversity and has a wide range of initiatives and policies that employees can access including work/ life balance options, part time working, flexi time etc.

We also acknowledge the benefits of promoting healthy lifestyles and have many health and well-being initiatives in place for our employees such as free health checks, reduced rate use of the facilities and supportive employment policies such as Substance Abuse, Alcohol at Work and our Wellbeing Policy.

Development

NBLT invests in training and development for its employees. We have continued to support and encourage employees across the organisation to undertake role related NVQs.

Key Employment Statistics 2022

Key Employment Statisitics 2022 Figures as at 31 March 2022

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2019/20 2020/21 2021/22
Total number of
contracted employees 86 86 81
Total employees (in%) -
Male 23 20 23
Female 77 80 77
Average age of 31 34 33
employee (in years)
Average length of 3.8 4.4 3.9
service (in years)
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Public Benefit

PUBLIC BENEFIT (with due regard to the published guidance on Public Benefit under Charities Act 2011)

Benefits to the General Public

NBLT exists in order to promote and maintain health and wellbeing and encourage as many people across the borough, regardless of socio economic class, age or ethnicity to engage and participate in an active lifestyle. Whilst many people are aware of the benefits of leading an active life countless may need support to identify and participate in physical activities. Barriers to participation can take many forms from fear of not fitting in or worrying about ability through to lack of access to facilities, particularly as lifestyles have become more sedentary.

NBLT aims to combat these barriers through a variety of services whether offered within one of our managed and owned centres or through community and outreach programmes delivered in conjunction with or on behalf of our community partners.

Ultimately our aim is to help as many people as possible to become more physically active to live fitter, healthier and hopefully longer and more fulfilled lives.

NBLT’s main interaction with the public is via the four educational, leisure and sports facilities that we manage and operate. They are all open to anyone who wants to use them and offer an amount of concessionary priced use. We also provide a Youth, Community and Schools outreach team (YCST) who deliver a wide range of projects in the local community, encouraging people to be more physically active. This team also works with and within specifically targeted areas of the community. We constantly promote and encourage people to use any of the many activities on offer in order to live fitter, healthier and potentially longer lives.

Children

We are very conscious of the fact that the earlier we can get people interested and educated in health and sport, the more likely they are to maintain that lifestyle. To this end we offer a range of initiatives aimed at under 18s.

• We run two excellent facilities which benefit babies, toddlers and children under 12 years old at the Bermuda Park Nursery and Bermuda Adventure Soft Play World. The Nursery is so popular now and operates with a large waiting list for some rooms we are actively seeking another nursery provision within the area.

• We deliver ‘before and after’ school services at two locations in the Borough catering for three schools. Our lady & st joseph LM site has got a “Met” rating and Goodyers End is currently awaiting their first Ofsted Inspection. 100 places are offered at these centres delivering a safe, secure and fun environment that builds on the learning of the respective schools. Our Lady & St Joseph Academy and Goodyers End are running at or near capacity daily. We also run before school, lunchtime and after school “clubs” at several other local schools, with activity and sport paramount where possible to keep children active.

• Our school holiday activity sessions, “Playscheme” had reduced attendances this year due to covid, but we were open every school holiday, including during the lockdowns, for children of key workers and vulnerable children. During these sessions, we were committed to ensuring that each child was educated, entertained and exercised in a safe, secure and interesting environment by skilled and qualified coaches.

Benefits to Targeted Groups and Individuals

As well as promoting healthy living and sport to the general public, we also target groups of people and individuals for specific initiatives in order to improve participation:-

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Under 5s

• The Bermuda Park Nursery offers high quality affordable nursery provision and opens from 7.30am to 6pm, 51 weeks of the year, enabling parents to access employment. It currently employs 29 local people, including three apprentices and three trainees.

• The Nursery provides freshly prepared meals cooked on site, designed by our chefs. In a bid to help combat the current obesity crisis they are available to speak to parents and offer advice on eating habits and food types if and when required.

• The Nursery works closely with Warwickshire’s Integrated Disability Team to ensure a high quality teaching environment for the youngest and most vulnerable children. The site is DDA compliant and is fully accessible both indoors and outside.

• The Nursery holds the WIncKs award. This is a quality assurance award from Warwickshire’s Integrated Disability Team which recognises the excellent practice within the nursery for children with additional needs and/or English as an additional language.

• The Nursery has been funded by Warwickshire County Council to offer 15 hours free funding for all children the term after their third birthday, as well as 15 hours free funding for the most vulnerable two year old children and children from low income families. We have successfully offered the new 30 hour funded sessions for eligible three year olds since September 2017.

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Public Benefit

Under 18s

• The Youth, Community & Schools Team (YCST) visit schools to encourage a healthier lifestyle including delivering assemblies, school sports, sports days and open days as well as regular coaching sessions.

• School coaching has been building more since COVID restraints from 2020 and 2021. Once again we are allowed to coach PPA sessions as well as Lunch clubs, afterschool clubs and Breakfast clubs.

• The delivery of quality sports coaching in primary, junior and secondary schools continues to be a focus for the YCST. Our delivery includes Curriculum, P.P.A., PE teacher support, bike and balanceability, intervention sessions, disability sessions, before school, lunch and after school clubs. This work supports the on-going challenge to increase physical activity, support weight management issues and the benefits of living a healthy and active lifestyle.

• We deliver a project known as ‘Target’, that helps those young people that are not currently in employment, education and /or training. The scheme allows the young people to gain accredited qualifications in a more practical environment. Where these projects are operating there has been a marked decline in anti-social behaviour and a reduction in the fear of crime expressed by local residents. Young people who have successfully completed the course

have also gained employment within NBLT, assisting the economic growth of the borough. During 2021 we managed to deliver a target course for Disabled students as well as a sports coaching Target course.

• We have maintained our Alternative Provision of Education (APE) service during the year, at times due to covid restrictions only for vulnerable children, as restrictions eased it can be delivered in school if it helps the child’s learning. The programme aims to develop confidence and encourages the participants to reach their full potential by gaining qualifications, and assists as a pathway to college, apprenticeships and/or employment. This provides long term benefits to them, their families and the local economy. During the year, 18 young people have accessed the APE project. The aim of the programme is to meet the need of the student at risk of, or who has already been, excluded from school. We aim to provide a welcoming, safe and stable learning environment where students can learn the skills of acceptable behaviour and make good academic progress, in particular those who are experiencing social, emotional and behavioural difficulties. The programme provides a huge range of interventions that explore the needs of the young person that meets the Every Child Matters guidelines and can be delivered on and off site. Through embedded teaching and learning we combine the development of literacy and numeracy with vocational and other skills. The skills acquired provide learners with the confidence,

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Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

competence and motivation necessary for them to progress, gain qualifications, and succeed in education, work and life. Our main aim is for these students to re-engage with mainstream school. We are now an accredited centre for teaching Maths and English functional skills.

• The successful project funded by Love My Community has been extended until December 2022 after a successful delivery of the project at the Keresley Village Community Centre. This is a central venue in Keresley that provides a host of activities for local people. There are two key issues our project addressed; 1. no activity or positive engagement for children and young people and 2. high obesity rates due to a lack of opportunities for young people to take part in physical activity during the evenings. Our project, a community activity club, targets children and young people between the ages of 5 and 18 years old.

• Our school holiday activity sessions, “Playscheme”, has continued to offer holiday provision for children between the ages of 5 and 12 within Nuneaton & Bedworth.

Young Adults

• NBLT is committed to supporting local young people with employment opportunities. We work closely with Coventry College.

• The ‘Target’ programme has continued to help those young people that are

not currently in employment, education and /or training. The scheme allows the young people to gain accredited qualifications in a more practical environment. Where these projects are operating there has been a marked decline in anti-social behaviour and a reduction in the fear of crime expressed by local residents. Target includes the opportunity to complete an ASDAN qualification in sports coaching and/ or sports fitness. We attempted to run a Target course around Enterprise but this was not taken up by the local community, so we have rolled this project forward and will instead complete another sports coaching/ fitness project.

• As part of our Disability Sports Project, we have had a number of young people who were players within the club become volunteers for Attleborough Sports JFC and have taken an active part in helping the coaches teach the younger players.

Over 50s

• A large percentage of our gym members are aged over 50 and normally use the gym regularly. Our fully trained staff support them with personalised exercise programmes that are tailored to improve any weak areas or help achieve specific fitness goals. For example, the Power Plates are used to help improve flexibility and circulation.

• We continue, to cater for our over 50s members by offering several types of

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Public Benefit

class for them to attend across the week, ranging from Osteo Pilates through to Yoga and Forever Fit. These members are encouraged to attend further classes as all can be tailored to suit their needs and capabilities

• We also offer reduced gym membership for our most senior members, removing one of the barriers to keeping fit.

People with Disabilities

• BBC Children In Need continued to award NBLT funding, enabling us to employ a dedicated Disability Inclusion Sports Coordinator, DISCO. This three year, 20 hour funded post supports young people between the ages of 5-18 years who face a range of physical and learning disabilities. The DISCO works to increase the choice of activity and opportunities to engage in play, sport and physical activity by reducing barriers and increased accessibility. Beneficiaries develop and enhance key physical skills such as: strength, stamina, balance, agility and fine motor skills; as well as cognitive skills such as problem solving. This has been more face to face delivery since COVID. We have tried to enable young people to become more independent as part of the project.

• The partnership with Bermuda Adventure Soft Play World to offer disability only sessions restarted as covid restrictions lifted. Each session welcomes between 50 - 60 people and offers the chance for children with disabilities to play alongside their siblings.

• Empire Gym & Empire Heaven are DDA compliant and fully accessible. Empire caters for many customers with disabilities. We look after the guide dogs for the blind whilst their owners train in the gym. We have wheelchair uses who we adapt our equipment for so that they can exercise effectively. We also support a group of people who have severe learning difficulties to exercise, ensuring that they all receive the best Empire has to offer.

• We work with the children and young people to develop and enhance verbal and non-verbal social skills such as: communication, cooperation, teamwork and empathy. This will be developed through verbal communication, physical contact and play. Our family days enhance socialising opportunities for beneficiaries’ families, as well as creating a social and emotional network of support.

• We try to empower the young people to counter attitudinal barriers and negative stereotypes, giving them confidence and the belief that they can engage in all types of activity regardless of their impairment. Family days and NBLT’s Disability Inclusion Days enable beneficiaries to showcase their new skills and abilities; boosting confidence and self-esteem to tackle inequalities.

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Directors’/Trustees’ Responsibilities in the Preparation of Financial Statements

The Directors/Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors/Trustees to prepare financial statements for each financial year. Under that law the Directors/ Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the directors are required to:

• A. Select suitable accounting policies and then apply them consistently;

• B. Make judgements and estimates that are reasonable and prudent;

• C. Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business;

• D. State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

The Directors/Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and for ensuring that the assets are properly applied in accordance with Charity Law.

The Directors/Trustees Annual Report, under the Charities Act 2011 and the Companies Act 2006, was approved by the Board of Trustees on 17 Aug 2022 including approving, in their capacity as Directors, the Directors Report contained therein, and is signed and authorised on our behalf by the Chair of the Board of Directors.

Kay Fawcett Chair

17 Aug 2022

22

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Independent Auditor’s Report to the Members and Trustees of Nuneaton & Bedworth Leisure Trust

Opinion

We have audited the financial statements of Nuneaton & Bedworth Leisure Trust for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities (including Income and Expenditure Account), the Consolidated and Company Balance Sheet, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

• give a true and fair view of the state of the groups and the charitable company’s affairs as at 31 March 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (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 group 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 our opinion.

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 cast significant doubt on the charitable company’s and group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other Information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves, If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

23

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Independent Auditor’s Report to the Members and Trustees of Nuneaton & Bedworth Leisure Trust (continued)

Opinions on other Matters Prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

• the information given in the trustees’ report, which includes the directors’ 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 included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Matters on Which we are Required to Report by Exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 22, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 group’s or 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 for the Audit of the Financial Statements

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

• adequate and proper accounting records have not been kept; 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; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

25

Independent Auditor’s Report to the Members and Trustees of Nuneaton & Bedworth Leisure Trust (continued)

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor’s report.

and the group for fraud. The laws and regulations we considered in this context for the UK operations were Companies Act 2006, Charities Act 2011, Ofsted regulations, Tax legislation, Health & Safety legislation and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

Extent to Which the Audit was Considered Capable of Detecting Irregularities, Including Fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to this risk included enquiries of management and the Board of trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and other regulatory bodies, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

26

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

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 and trustees 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, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Helen Drew Senior Statutory Auditor For and on behalf of Crowe U.K LLP Statutory Auditor Midlands

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

27

Consolidated Statement of Financial Activities (Including Income and Expenditure Account) For the Year Ended 31 March 2022

Unrestricted funds

		Undesignated	Designated	Restricted	Total	Total
		funds	funds	funds	funds	funds
		2022	2022	2022	2022	2021
	Note	£	£	£	£	£
Income						Restated
Income from charitable activities	2	1,837,789	-	46,477	1,884,266	1,391,106
Income from other trading activities	3	221,294	-	-	221,294	74,506
Investment income	4	6,969	-	-	6,969	9,895
Total income		2,066,052	-	46,477	2,112,529	1,475,507
Expenditure
Expenditure on charitable activities	6	1,923,816	214,192	46,477	2,184,485	1,925,605
Expenditure on raisingfunds	3	85,676	-	-	85,676	59,873
Total expenditure		2,009,492	214,192	46,477	2,270,161	1,985,478
Net income / (expenditure)		56,560	(214,192)	-	(157,632)	(509,971)
Transfers between funds	16	101,389	(101,389)	-	-	-
Net income/(expenditure) before other recognised gains/(losses)		157,949	(315,581)	-	(157,632)	(509,971)
Other recognised gains/(losses):					-	-
Actuarialgains(losses)on defined benefitpension scheme		-	-	-	-	-
Net movement in funds		157,949	(315,581)	-	(157,632)	(509,971)
Funds brought forward		296,032	1,093,343	-	1,389,375	1,899,346
Funds carried forward	17	453,981	777,762	-	1,231,743	1,389,375

The statement of Financial Activities includes all gains and losses recognised in the year.

28

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Consolidated Balance Sheet

			Group		Charity
		2022	2021	2022	2021
	Notes	£	£	£	£
			Restated		Restated
Fixed Assets
Tangible fxed assets	10	771,356	975,106	771,356	975,106
Investments	11			100	100
Current Assets		771,356	975,106	771,456	975,206
Stocks	12	4,964	4,215	-	-
Debtors	13	93,662	64,157	93,635	64,157
Cash at bank and in hand		663,369	921,388	663,369	921,138
		761,995	989,760	757,004	985,295
Creditors: amounts fallingdue within oneyear	14	(301,608)	(575,491)	(301,717)	(576,126)
Net Current(Liabilities)/Assets		460,387	414,269	455,287	409,169
Total assets less current liabilities		1,231,743	1,389,375	1,226,743	1,384,375
Net assets		1,231,743	1,389,375	1,226,743	1,384,375
Reserves
Restricted funds	16	-	-	-	-
Unrestricted funds:
- designated funds	16	777,762	1,093,344	777,762	1,093,344
- other charitable funds		453,981	505,016	448,981	500,016
Prior Year Adjustment	23		(208,984)		(208,984)
		1,231,743	1,389,375	1,226,743	1,384,375

The company has taken the exemption under Section 408 of the companies Act 2006 not to disclose the company’s profit and loss account. The deficit for the financial year dealt with in the financial statements of the parent charity £293,250 (2020: £524,604 deficit - restated).

The financial statements on pages 28 to 30 were approved by the board of directors/trustees and authorised for issue on 17 Aug 2022 and are signed on its behalf by:

K.Fawcett - Chair

29

Consolidated Cash Flow Statement For the year ended 31 March 2022, restated under prior year 2021.

			2022	2021
	Note		£	£
Cashprovided by (used in) operating activities	20		(263,562)	55,272
Cash fows from investing activities
Interest income			6,969	9,895
Purchase of property, plant and equipment			(10,442)	-
Proceeds on disposal of assets			9,016
Cashprovided by (used in) investing activities			(5,543)	9,895
(Decrease)/Increase in cash and cash equivalents in theyear			(258,019)	65,167
Cash and cash equivalents at the beginningof theyear			921,388	856,221
Cash and cash equivalents at the end of theyear			663,369	921,388
	As 1	April	Cash	At 31st
	2021		Flows	March 2022
		£	£	£
Analysis of changes in net debt
Cash	921,388		(258,019)	663,369
Total	921,388		(258,019)	663,369

30

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Accounting Policies For the year ended 31 March 2022

Basis of Accounting

The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities issued in 2015 (SORP 2015), Financial Reporting Standard 102 (FRS102) and the Companies Act 2006.

Nuneaton & Bedworth Leisure Trust meets the definition of a public entity under FRS102.

Assets and liabilities are initially recognised at the transaction value unless otherwise stated.

In accordance with SORP 2015, incoming resources and resources expended have been analysed in notes 2 and 6 into the charitable company’s two activities, which in the opinion of the Directors/Trustees are sports and leisure and community initiatives.

The consolidated statement of financial activities and the group balance sheet consolidate the financial statements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. Intra-group transactions are eliminated on consolidation.

An exemption from disclosure of the Statement of Financial Activities of the parent company has been taken under Section 408 of the Companies Act 2006.

Going Concern

The Trustees have considered the expectations and intentions for the next twelve months and are confident that NBLT has adequate resources to continue in operational existence for the foreseeable future and therefore considers it appropriate to prepare the financial statements on a going concern basis.

Key Judgements and Assumptions

There are no key judgements and assumptions that management consider to have a significant impact on the financial statements.

Incoming Resources

Grants receivable

Revenue and capital grants receivable are recognised in the Statement of Financial Activities 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

Government grants are recognised in the Statement of Financial Activities upon entitlement.

Operation of Facilities

Income from the operation of the facilities is included in incoming resources in the period in which the charitable company becomes entitled to receipt.

Hire of Hall

Income from the hire of the hall is included in incoming resources in the period in which the charitable company becomes entitled to receipt.

Interest Receivable

Interest is included when receivable by the charitable company.

Resources Expended

Resources expended are recognised in the period in which they relate to. Resources expended include attributable VAT which cannot be recovered.

Resources expended are allocated to the particular activity where the cost relates directly to that activity. 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. Charitable activities include expenditure associated with the operation of sports and leisure facilities and running community initiatives and include both the direct costs and support costs relating to these activities. Governance costs include those costs incurred in the governance of the Charity and its assets and are primarily associated with constitutional and statutory requirements.

Operating Leases

Rentals paid under operating leases are charged to the SOFA on a straight line basis over the life of the lease.

31

Accounting Policies (continued) For the year ended 31 March 2022

Tangible Fixed Assets

Individual fixed assets costing £2,000 or more are capitalised at cost.

Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life, as follows:-

Fixtures, fittings and equipment: over 4 years

Building alterations and accommodation : over 10 years (or the life of the lease if lower)

Freehold land & buildings: over 25 years for buildings and no depreciation on land

Stocks

Stocks are valued at the lower of cost and net realisable value. Cost is computed on a first in first out basis. Net realisable value is based on estimated selling price less further costs expected to be incurred to completion and disposal. Provision is made for obsolete and slow moving items.

Debtors Recognition and Measurement

Short term debtors are measured at the transaction value, less any impairment.

Financial Instruments

The charity only enters into basic financial instruments transactions that result in the recognition of financial assets and

liabilities like trade and other accounts receivable and payable. However, if the arrangements of a short-term instrument constitute a financial transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Activities when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Creditors Recognition and Measurement

Short term creditors are measured at the transaction value.

Retirement Benefits

A defined contribution scheme with Scottish Widows has been available to some employees as from 1st May 2015, with an initial employer contribution rate of 10%. This contribution rate can be varied depending upon affordability. These contributions will be accounted for in the SOFA as they become payable.

The assets of the new scheme are held separately from those of NBLT in independently administered funds.

Fund Structure

Nuneaton & Bedworth Leisure Trust Limited has various types of funds for which it is responsible. These are as follows:

Undesignated Funds

Funds which are expendable at the discretion of the Board in furtherance of NBLT’s objects.

Designated Funds

NBLT may at its discretion set aside unrestricted funds for specific purposes. If no longer required, designated funds are reclassified as undesignated unrestricted funds.

Restricted Funds

These are earmarked by the grant giver for specific purposes within the overall aims of the organisation. The grants must be utilised in accordance with the specific purposes. Where funds have been provided for the purpose of capital expenditure, depreciation charged on those assets is charged against the restricted fund to which it relates.

Governance

For details of the constitution and registered office, please refer to page 2 of the Directors/Trustees’ Annual Report.

32

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements For the year ended 31 March 2022

1 Consolidated Statement of Financial Activities for the Year Ended 31 March 2021

The previous years consolidated statement is set out below - restated

		Undesignated	Designated	Restricted	Total	Total
		funds	funds	funds	funds	funds
		2021	2021	2021	2021	2020
		£	£	£	£	£
Income	Notes	Restated	Restated	Restated	Restated
Income from charitable activities	23	1,372,876	-	18,230	1,391,106	1,970,671
Income from other trading activities		74,506	-	-	74,506	312,382
Investment income		9,895	-	-	9,895	8,581
Total income		1,457,277	-	18,230	1,475,507	2,291,634
Expenditure
Expenditure on charitable activities		1,606,475	300,900	18,230	1,925,605	2,326,068
Expenditure on raisingfunds		59,873	-	-	59,873	141,032
Total expenditure		1,666,348	300,900	18,230	1,985,478	2,467,101
Net income (expenditure)		(209,071)	(300,900)	-	(509,971)	(175,467)
Transfers between funds		-	-	-	-	-
Net income before other recognised gains/(losses)		(209,071)	(300,900)	-	(509,971)	(175,467)
Other recognisedgains:-		-	-	-	-	-
Net movement in funds		(209,071)	(300,900)	-	(509,971)	(175,467)
Funds brought forward		505,103	1,394,243	-	1,899,346	2,074,813
Funds carried forward		296,032	1,093,343	-	1,389,375	1,899,346

33

Notes To The Financial Statements (continued) For the year ended 31 March 2022

2. Income from Charitable Activities

		Unrestricted	Restricted	Total	Total
		funds	funds	funds	funds
		2022	2022	2022	2021
	Notes	£	£	£	£
Sports and leisure income					Restated
- management fee		45,911	-	45,911	11,733
- fees from sporting activities		623,335	-	623,335	103,630
Fees from other activities		432	-	432	5,715
Income from Community initiatives		669,678	-	669,678	121,078
- grant income for community ofcers		-	46,477	46,477	17,915
- grant income for community initiatives		-	-	-	315
- coaching and physical activity consultancy in the community		171,046	-	171,046	86,899
- educational services		875,272	-	875,272	604,782
Other income		1,046,318	46,477	1,092,794	709,911
Income from government grants (COVID 19)	23	96,793	-	54,271	474,010
Coronavirus Retail, Hospitality and Leisure grant		-	-	42,522	86,107
Insurance claim settlement(business interruption(COVID 19)		25,000	-	25,000	-
		121,793	-	121,793	560,117
		1,837,789	46,477	1,884,266	1,391,106

The charity was eligible to claim additional funding from the Government’s Coronavirus Job Retention Scheme and the Retail,

Hospitality and Leisure Fund during the year in response to the Coronavirus outbreak. This has been disclosed within ‘Other grants’.

34

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements (continued) For the year ended 31 March 2022

3. Income from Other Trading Activities

The charitable company runs catering and ancillary trading activities in order to generate funds for, and in support of, its charitable activities. From 1 January 2006, these activities were undertaken by a trading subsidiary, Leisure Avenues Limited (Company registration no. 05495496), whose results are shown in Note 11.

A summary profit and loss account incorporating the trading subsidiary is shown below:

	2022 2021
	£ £
Turnover	221,294 53,074
Coronarvirus Job Retention Scheme grant	- 21,432
Staf costs	(52,105) (36,904)
Cost of sales and administrative expenses	(33,571) (22,969)
Netprofit /(loss)	135,618 14,633
4. Investment Income
	2022 2021
Bank interest	£ £ 6,969 9,895
	6,969 9,895

5. Analysis of Total Expenditure

	Staf	Supplies			Total	Total
	costs	& services	Other	Depreciation	2022	2021
	£	£	£	£	£	£
Fundraising Trading	52,105	28,779	4,792	-	85,676	59,873
Charitable Activities
- Sports and Leisure	661,882	91,682	229,279	211,833	1,194,676	1,056,309
- Community Activities	752,537	148,482	74,796	2,359	978,174	860,148
Governance Costs	-	11,635	-	-	11,635	9,148
	1,466,524	280,578	308,866	214,192	2,270,160	1,985,478

35

Notes To The Financial Statements (continued) For the year ended 31 March 2022

5. Analysis of Total Expenditure

	Staf	Supplies			Total	Total
	costs	& services	Other	Depreciation	2021	2020
	£	£	£	£	£	£
Fundraising Trading	36,904	20,820	2,149	-	59,873	141,033
Charitable Activities
- Sports and Leisure	563,094	129,637	142,038	221,540	1,056,309	1,297,939
- Community Activities	696,374	97,818	63,596	2,360	860,148	1,019,326
Governance Costs	-	9,148	-	-	9,148	8,803
	1,296,372	257,423	207,783	223,900	1,985,478	2,467,101

6. Analysis of Charitable Expenditure

6 Analysis of Charitable Expenditure
.	Sports	Community	Total	Total
	& leisure	initiatives	2022	2021
	£	£	£	£
Staf costs and other employee costs	661,882	752,537	1,414,419	1,259,468
Central premises costs	229,279	74,796	304,074	205,634
Supplies and services	103,317	148,482	251,799	236,603
Depreciation	211,833	2,359	214,192	223,900
	1,206,311	978,174	2,184,485	1,925,605
	Sports	Community	Total	Total
	& leisure	initiatives	2021	2020
	£	£	£	£
Staf costs and other employee costs	563,094	696,374	1,259,468	1,520,127
Central premises costs	143,038	63,596	205,634	292,434
Supplies and services	138,785	97,818	236,603	268,598
Depreciation	221,540	2,360	223,900	244,909
	1,066,457	860,148	1,925,605	2,326,068

36

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements (continued) For the year ended 31 March 2022

7. Analysis of Governance Costs

7. Analysis of Governance Costs
	2022	2021
	£	£
Professional fees	11,070	7,198
Trustees indemnityinsurance	565	1,950
	11,635	9,148

8. Staff Costs

8. Staf Costs
	2022	2021
	£	£
Salaries and wages	1,325,705	1,175,625
Social security costs	77,814	63,036
Pension costs	60,808	57,711
	1,464,328	1,296,372
	2022	2021
	Number	Number
The average monthly number of persons (including directors, casual and part time staf)
during the year	115	148
The average number of full-time equivalent employees during the year	57	63
The number of employees whose emoluments fall within the band £60,	1	1

The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2021: Nil) neither were they reimbursed expenses during the year (2021: Nil). No charity trustee received payment for professional or other services supplied to the charity (2021: Nil).

The key management personnel of the group, including the charity and the trading subsidiary, comprise the Trustees, the General Manager, Empire Manager, Bermuda Park Nursery Manager, Bermuda Adventure Manager, School & Sporting Manager, Operations Manager and the HR & Payroll Manager. The total employee benefits of the key management personnel of the Trust were £337,013 (2021: £244,033), including National Insurance and pension contributions.

37

9. Net Expenditure for the Year

9. Net Expenditure for the Year
	2022	2021
	£	£
This is stated after charging:-
Auditors remuneration - external audit services	11,070	7,198
Auditors remuneration - other services	3,800	-
Proft on disposal of tangible fxed assets	(9,017)	-
Depreciation of tangible fxed assets
- owned assets	214,192	223,900
Operating leases
- lease of land and buildings	115,710	135,759
- hire ofplant and equipment	2,160	2,160

10. Tangible Fixed Assets

10. Tangible Fixed Assets
	Freehold		Fixtures
	Land and	Building	Fittings and
	Buildings	Alterations	Equipment	Total
Group and Charity	£	£	£	£
Cost
As at 1st April 2021	350,000	1,959,864	419,548	2,729,412
Reclassifcations	-	-	-	-
Additions	-	-	10,442	10,442
Disposals	-	-	(89,273)	(89,273)
As at 31st March 2022	350,000	1,959,864	340,717	2,650,581
Depreciation
As at 1st April 2021	82,083	1,262,689	409,534	1,754,306
Reclassifcations	-	-	-	-
Charge for the year	10,000	195,493	8,699	214,192
Impairments	-	-	-	-
Disposals	-	-	(89,273)	(89,273)
As at 31st March 2022	92,083	1,458,182	328,960	1,879,225
Net book value
As at 31st March 2022	257,917	501,682	11,757	771,356
As at 31st March 2021	267,917	697,175	10,014	975,106

38

No depreciation has been charged on the freehold land element of the land and buildings.

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements (continued) For the year ended 31 March 2022

11. Trading Subsidiary

The trading subsidiary, Leisure Avenues Limited, which was incorporated on 30 June 2005, is wholly owned by the charity and operates the vending machines, catering facilities and secondary sales at our facilities. All of the profits of the subsidiary are gifted to the charity, NBLT 92a Wheat Street, Nuneaton, CV11 4BH.

		Group		Charity	Charity
	2022		2021	2022	2021
	£		£	£	£
Invested in NBLT Tradinglimited(100 ordinaryshares of £1 each).	-		-	100	100
The results of the trading subsidiary are as follows:
				2022	2021
				£	£
					Restated
Turnover				221,294	61,999
Expenditure				(85,676)	(59,873)
Proft for the year before tax				135,618	2,126
Gift aid payment to parent undertaking				(135,618)	(2,126)
Net assets				5,100	5,100

12. Stocks

12. Stocks
		Group			Charity
	2022		2021	2022		2021
	£		£	£		£
Goods for resale	4,964		4,215	-		-
	4,964		4,215	-		-

39

Notes To The Financial Statements (continued) For the year ended 31 March 2022

13. Debtors

13. Debtors
		Group	Charity
		2022 2021	2022 2021
		£ £	£ £
Trade debtors		21,954 18,781	21,954 18,781
Prepayments		52,035 43,521	52,008 43,521
Accrued income		19,672 1,855	19,672 1,855
		93,662 64,157	93,635 64,157
14. Creditors: Amounts Due Within One	Year
		Group	Charity
		2022 2021	2022 2021
		£ £	£ £
	Note	Restated	Restated
Trade creditors		116,252 129,628	116,252 129,628
Other taxation and social security		20,247 24,280	20,247 24,280
Other creditors		- 9,738	- 9,738
Amount owing to HMRC - Prior year adjustment	23	- 208,984	- 208,984
Local Government pension scheme		8,481 -	8,481 -
Amounts owed to group undertakings		- -	2,878 635
Accruals		116,364 95,828	113,595 95,828
Deferred income	15	40,264 107,033	40,264 107,033
		301,608 575,491	301,717 576,126

40

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements (continued) For the year ended 31 March 2022

15. Deferred Income

Deferred income comprises mainly advance receipts for sports and leisure activities, grants received in advance for community initiatives and nursery fees received in advance. Income deferred in the current year comprises grants received in advance of £18,755, school coaching fees received in advance of £7,360 and nursery fees/funding received in advance of £14,149.

	Group	Charity
	2022	2022
Balance as at 1st April 2021	107,033	107,033
Amount released to incoming resources	(107,033)	(107,033)
Amount deferred in theyear	40,264	40,264
Balance as at 31 March 2021	40,264	40,264

16. Analysis Of Charitable Funds

16. Analysis Of Charitable Funds
Restricted Funds	1 April	Incoming	Resources	31 March
	2021	resources	expended	2022
	£	£	£	£
Communityofficers	-	46,477	(46,477)	-
	-	46,477	(46,477)	-
Restricted Funds	1 April	Incoming	Resources	31 March
	2020	resources	expended	2021
	£	£	£	£
Community ofcers	-	17,915	(17,915)	-
Communityinitiatives	-	315	(315)	-
	-	18,230	(18,230)	-

41

Designated Funds	1 April	New	Utilised	Transfers	31 March
	2021	Designations			2022
	£	£	£	£	£
Fixed assets	975,106	-	(203,750)	-	771,356
Capital and infrastructure	118,237	-	(10,442)	(101,389)	6,406
	1,093,343	-	(214,192)	(101,389)	777,762
Designated Funds	1 April	New	Utilised	Transfers	31 March
	2020	Designations			2021
	£	£	£	£	£
Fixed assets	1,199,005	-	(223,899)	-	975,106
Capital and infrastructure	195,237	-	(77,000)	-	118,237
	1,394,242	-	(300,899)	-	1,093,343
Undesignated Funds	1 April	Incoming	Resources	Transfers	31 March
	2021	Resources	Expended	In/Out	2022
	£	£	£	£	£
General Funds	263,032	2,066,052	(2,009.492)	101.389	453,981
	263,032	2,066,052	(2,009,492)	(101,389)	453,981
Undesignated Funds	1 April	Incoming	Resources	Transfers	31 March
	2020	Resources	Expended	In/Out	2021
	£	£	£	£	£
General Funds	505,103	1,457,277	(1,666,348)	-	296,032
	505.103	1,457,277	(1,666,348)	-	296,032

Name of fund Description, nature and purposes of the fund

Fixed assets Capital and infrastructure

Revenue Transfer between funds

This fund represents the value of fixed assets held by the Trust which have not been financed by restricted funds. To fund planned acquisition, development and improvements to buildings and facilities together with the replacement of equipment, including Gym and IT requirements, as it becomes due for replacement. To fund planned maintenance of facilities, severance costs following restructure and potential liabilities. This is the contribution towards designated funds during the year and the use of existing designated funds.

42

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements (continued) For the year ended 31 March 2022

17. Analysis of Group Net Assets Between Funds

Undesignated funds	Designated funds	Designated funds	Restricted	funds Total funds
2022 2021	2022	2021	2022	2021 2022 2021
£ £	£	£	£	£ £ £
Restated		Restated		Restated Restated
Fixed assets - -	771,356	975,106	-	- 771,356 975,106
Current assets 755,589 871,523	6,406	118,237	-	- 761,995 989,760
Current liabilities(301,608) (575,491)	-	-	-	-(301,608) (575,491)
453,981 296,032	777,762	1,093,343	-	- 1,231,743 1,389,375

18. Legal Status of NBLT

NBLT is a company limited by guarantee and has no share capital.

The liability of each member in the event of winding up is limited to £1.

19. Commitments Under Operating Leases

At 31 March 2022 the charitable company had annual commitments under non-cancellable operating leases as follows:

	2022	2021
	£	£
Land and buildings:
- due in under 1 year.	114,521	125,961
- due between 1 and 5 years.	453,515	475,046
- due after more than 5 years.	231,147	359,425
Plant and machinery:
- due in under 1 year.	3,200	2,160
- due between 1 and 5years.	12,800	-
	815,182	962,592

43

Notes To The Financial Statements (continued) For the year ended 31 March 2022

20. Reconciliation of Net Movement of Funds to Net Cash Flow

		Group
	2022	2021
	£	£
		Restated
Net movement in funds	(157,632)	(509,971)
Add back depreciation charge	214,192	223,900
Deduct interest income shown in investing activities	(6,969)	(9,895)
Decrease/(Increase) in stock	(749)	3,259
Increase/(Decrease) in debtors	(29,504)	46,761
Increase/(Decrease) in creditors	(273,883)	301,218
Profit on disposal of assets	(9,017)	-
Net cash used in operating activities	(263,562)	55,272

21. Related Party Transactions

21. Related Party Transactions
	2022	2021
	£	£
The charitable company completed the following transactions with its subsidiary, Leisure Avenues Ltd.		Restated
Gift aid donation from Leisure Avenues	135,618	2,126
Balance owing from/(to) Leisure Avenues at 31st March	(2,878)	(635)
Nursery recharges from Leisure Avenues	60,007	44,000

44

Nuneaton & Bedworth Leisure Trust - Annual Report & Financial Statements 2022

Notes To The Financial Statements (continued) For the year ended 31 March 2022

22. Financial Instruments

22 Fiil Itt
. nanca nsrumens	2022	2021
	£	£
Financial assets
Financial assets that are debt instruments measured at amortised cost	704,995	942,024
Financial liabilities
Financial liabilities measured at amortised cost	241,097	235,194

Financial assets measured at amortised cost comprise debtors and cash but excludes prepayments and stock.

Financial liabilities measured at amortised cost comprise all liabilities excluding deferred income and other taxation and social security.

23. Prior Year Adjustment

23 Pi Y Adtt
. ror ear jusmen	Group	Charity
	2022	2022
Overclaim relating to prior years	208,984	208,984

An overclaim of the Coronavirus Job Retention Scheme grant was made during the year ended 31 March 2021 in respect of employees furloughed from employment during COVID-19.

As a result, an adjustment was made to the prior year comparatives to reduce income within ‘other grants’ for the overclaimed amount of £208,984. The undesignated funds have been adjusted accordingly.’

45

NB nblelsuretrust.or9

Smart decisions. Lasting Value

Nuneaton & Bedworth Leisure Trust and its trading subsidiary

Report to the Trustees Year ended 31 March 2022

Presented to the Trustees on 20 July 2022

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Strictly Private and Confidential

The Trustee Board Nuneaton & Bedworth Leisure Trust 92a Wheat Street, Nuneaton, Warwickshire, CV11 4BH

Dear members of the Trustee Board

I have pleasure in submitting our audit findings report for the year ended 31 March 2022. The primary purpose of this report is to communicate to the Trustees the significant findings arising from our audit that we believe are relevant to those charged with governance.

I look forward to discussing our report with you, as well as any further matters you may wish to raise with us, and I shall be attending the Trustee meeting on 20 July 2022.

I would like to take this opportunity to express our appreciation for the assistance provided to us by the finance team and the other staff at the charity during this year’s audit.

Yours sincerely

Helen Drew Partner

© 2022 Crowe U.K. LLP

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Contents

Contents	Contents
1. Executive summary ......................................................................................................................................................................................................................... 3
2. Significant audit risks ....................................................................................................................................................................................................................... 5
3. Other	audit findings .......................................................................................................................................................................................................................... 9
4. Fraud	and irregularities and our audit reporting ............................................................................................................................................................................ 11
Appendix 1	- Reporting audit adjustments ........................................................................................................................................................................................... 13
Appendix 2	- Systems and controls ..................................................................................................................................................................................................... 14
Appendix 3	- Going concern ................................................................................................................................................................................................................ 18
Appendix 4	- Responsibilities and ethical standards ........................................................................................................................................................................... 21
Appendix 5	- Fraud risks ...................................................................................................................................................................................................................... 23
Appendix 6	- External developments ................................................................................................................................................................................................... 25

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1. Executive summary

Our report to you

We are pleased to present our Audit Findings Report to the Trustees and we welcome the opportunity to discuss our findings with you at your meeting on 20 July 2022.

The primary purpose of this report is to communicate to the Board the significant findings arising from our audit that we believe are relevant to those charged with governance.

In accordance with International Standards on Auditing (UK) the matters in this report include

• the results of our work on areas of significant audit risk • our views about significant qualitative aspects of the group’s accounting practices, including accounting policies, accounting estimates and financial statement disclosures • significant difficulties, if any, encountered during the audit • any significant matters arising during the audit and written representations we are requesting • unadjusted misstatements identified during the audit • circumstances that affect the form and content of our auditor’s report, if any • any other significant matters arising during the audit that, in our professional judgment, are relevant to the oversight of the financial reporting process

We have included comments in relation to the above where relevant in the subsequent sections of this report.

We also report to you any significant deficiencies in internal control identified during our audit which, in our professional judgment, are of sufficient importance to merit your attention. We have reported matters relating to the

group’s systems and controls in Appendix 2, along with an update on the status of matters raised in previous audits.

Conclusions in relation to the areas of significant audit risk

In line with our audit plan we focussed our work on the significant audit risks related to:

• Revenue Recognition of Grants

• Management override of controls

Further details on each of these risks is included in Section 2 of this report.

Other audit findings

Section 3 sets out various comments on other important matters which we have identified from our audit.

Fraud and irregularities

Section 4 sets out the Trustees and our responsibilities in respect of fraud and irregularities.

Audit materiality

The audit materiality for the financial statements set as part of our audit planning took account of the level of activity of Nuneaton & Bedworth Leisure Trust and its trading subsidiary and was set at 2% of income. We have reviewed this level of materiality based on the financial statements for the year ended 31 March 2022 and are satisfied that it continues to be appropriate with 2% of income being £44,000 and £15,000 respectively.

Unadjusted misstatements

We report to you any unadjusted individual errors other than where we consider the amounts to be trivial, and for this purpose we have determined trivial to be 5% of our audit materiality.

We are pleased to report that there are no remaining unadjusted items identified from our audit in excess of the above trivial limit.

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Audit completion and our Audit Report

We have substantially completed our audit in accordance with our Audit Planning Report which was sent to you and the senior management team on 12 April 2022, subject to the matters below.

• Completion of the going concern and post-Balance Sheet events reviews.

• Review of the final financial statements.

• Receipt of the signed letter of representation.

On the satisfactory completion of these matters, we anticipate issuing an unmodified audit opinion on the truth and fairness of the 2022 financial statements.

Responsibilities and ethical standards

We have prepared this report taking account of the responsibilities of the Trustees and ourselves set out in Appendix 4 of this report.

The matters included in this report have been discussed with the charity’s management during our audit and at our closing meeting on 20 July 2022.

We will report to you orally in respect of any modifications to the findings or opinions contained in this report that arise from progressing these outstanding matters.

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2. Significant audit risks

We reported in our Audit Planning letter a number of areas we identified as having specific audit risk including the potential risk from management override of controls. Significant risk is considered in the context of how, and the degree to which, inherent risk factors affect the likelihood and magnitude of a misstatement occurring. Such factors may be qualitative or quantitative, and include complexity, subjectivity, change, uncertainty or susceptibility to misstatement due to management bias or other fraud risk factors. We have commented below on the results of our work in these areas as well as on any additional significant risks, judgements or other matters in relation to the financial statements of Nuneaton & Bedworth Leisure Trust identified during our audit.

To assist in the understanding of these risks we have identified one or more of six potential reasons, as defined by ISA 315, for the increased audit risk. In addition, we also consider other factors which may give rise to significant risks, such as a history of previous issues or the matter involves significant judgement.

1. Fraud risk

2. Recent significant economic, accounting or other developments

3. Complexity of the transactions

4. Financial information involves a wide range of measurement uncertainty

5. Involves significant transactions with related parties

6. Significant transactions that are unusual / outside the normal course of business for the entity

7. Other specific factors

7.Other specific f	actors
Significant risk identified	Risks	Key related judgements	Crowe response	Our conclusions / other comments
Going concern	2,4,6,7	We explained in our Audit Planning Report that in preparing the financial statements to comply with Financial Reporting Standard 102 the Trustees and management are required to assess the group’s ability to continue as a going concern. Due to the impact of COVID-19 on Nuneaton & Bedworth Leisure Trust and its trading subsidiary, we highlighted that going concern was a significant risk for our audit. Auditing Standards require us as auditors to obtain sufficient appropriate audit evidence regarding, and conclude on: •whether a material uncertainty related to the entity continuing to be a going concern exists, and	Trustees may consider and take account of realistic mitigating responses open to them, considering the likely success of any response. We have discussed this with the Nuneaton & Bedworth Leisure Trust and its subsidiary’s management and explained that our work on going concern includes the following: •reviewing the period used by Trustees to assess the ability of Nuneaton & Bedworth Leisure Trust and its subsidiary to continue as a going concern, •examining budgets and forecasts prepared by management covering the period ofthe going concern	As at 31 March 2022 the group is reporting a net deficit including depreciation for the year is £157k (2021: £510k restated). This has been achieved as a result of stronger operational performance across all main income streams due to the easing of COVID-19 restrictions from the beginning of the accounting period. Whilst a deficit has been made, it is considerably smaller than the prior year deficit, which also includes a £209k prior year adjustment in respect of an overclaim of furlough income from the Coronavirus Job Retention Scheme, discovered by management following the 2021 audit.

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Significant risk identified	Risks	Key related judgements	Crowe response	Our conclusions / other comments
		•the appropriateness of management's use of the going concern basis of accounting in the preparation of the financial statements. In assessing whether the going concern assumption is appropriate, the Trustees and management are required to consider all available information about the future of the charity in the period of at least, but not limited to, twelve months from the date when the financial statements are approved and authorised for issue. The trustees’ going concern assessment is a key area of emphasis and importance for our audit and, in accordance with the requirements of ISAs (UK), our audit report includes a specific reference to going concern. Where trustees identify possible events or scenarios, other than those with a remote probability of occurring, that could lead to failure, then these should be disclosed in the financial statements. We have included asAppendix 3some further guidance on going concern which may be of help to the trustees.	assessment to ensure that these	Excluding depreciation, the group had a net surplus for the year of £56k (2021: restated deficit of £209k). The group has a healthy cash balance at the year end of £663k (2021: £921k) and unrestricted funds totalling £460k (2021: £414k restated. The funds are below their reserves policy of £500k but we believe that the Trustees are looking to address the shortfall at their next Trustee meeting. From our review of the current performance and position, forecasts provided by management and cash flow, we concur with management’s decision that the financial statements be prepared on a going concern basis. We will be seeking representations that the Board has considered the forecasts and is satisfied that the going concern basis is appropriate.
			appropriately support the trustees’
			conclusion,
			•reviewing the accuracy of past budgets and forecasts by comparing the budget for the current year against actual results for the year, and •reviewing any other information or documentation which the Trustees have used in their going concern
			assessment.
Completeness of grant and other sales income	3	The risk that income may not be correctly stated is a risk associated with all entities. Given the significant number of income streams in the group, we consider there to be a significant risk in respect of completeness.	We selected a sample of grant income and agreed this sample to supporting grant documentation and ensured that any restriction or deferral of income from these grants was in line with the grant documentation and also the accounting requirements of the Statement of Recommended Practice (SORP).	We can confirm that we have no further issues in relation to this risk to bring to your attention.

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Significant risk identified	Risks	Key related judgements	Crowe response	Our conclusions / other comments
			We were able to agree grant and management income from grant documentation through to the amounts recorded in the accounts. Where income was deferred we reviewed the rationale to ensure that this was in accordance with the requirements of the SORP. We also selected a sample of daily till reads and ensured that they had all been correctly and completely included in the nominal ledger. We checked that cash return sheets agreed to nominal postings, bankings and day end till read reports and that if required any significant variances between the cash return sheets and the till reads were investigated.
Management override of controls, including through journal adjustments	1,2	Although the level of risk of management override of controls varies from entity to entity, Auditing Standards recognise that this risk is nevertheless present in all entities because of management’s ability to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. Due to the unpredictable way in which such override could occur, including to mask fraud, the override of controls is a significant risk for all audits. The Trustees must satisfy themselves that the control environment present within the entity together withthe trustee controls and	We assessed the design of the controls in place around key accounting cycles and areas of judgement and reviewed and carried out sample testing on the charity’s controls around the processing of journal adjustments in the preparation of the financial statements (how journals are initiated, authorised and processed). We also considered the risk of potential manipulation by journal entry to mask fraud. We reviewed accounting estimates for bias that could result in material misstatement due to fraud including whether any differences between estimates best supported by evidence	No issues have been identified from our substantive audit procedures on the relevant areas of judgement together with our assessment of the controls over journals operated by the charity that would suggest an inappropriate override of controls by management.

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Significant risk identified	Risks	Key related judgements	Crowe response	Our conclusions / other comments
		controls over the posting of journals are adequate to deter any inappropriate override of controls from management.	and those in the financial statements, even if individually reasonable, indicated a possible bias on the part of management. We also performed a retrospective review of management’s judgements and assumptions related to significant estimates reflected in last year’s financial statements. Due to the changes in the finance team and an overclaim of furlough income in the prior year which resulted in the General Manager being dismissed, we paid particular attention to the posting of journals and review of such in the year.

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3. Other audit findings

In addition to matters relating to the significant audit risks as reported in Section 2, we have also noted the following matters from our audit work which we should bring to your attention.

3.1 Report and Financial Statements

As noted in the Statement of Trustees’ Responsibilities, the Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

3.2 Gift Aid Accounting Treatment and Timing of Payment

As noted in our planning letter, we identified Gift aid accounting treatment as not having specific or significant risk but potentially being relevant to the financial statements.

3.4 Overclaim of Coronavirus Job Retention Scheme grant

It was discovered by the finance manager following the 2021 audit that there had been several incorrect claims for furlough (in addition to those identified as part of the audit testing) during the year to 31 March 2021 including claims for employees that had not been furloughed and had continued to work.

The finance manager recalculated the overclaims which amounted to £208,984. An incident was raised with the Charities Commission and Action Fraud. We can confirm that we have reviewed correspondence with these regulatory bodies and that no further action was proposed as a result by either body. We can confirm that the amount has now been fully repaid to HMRC.

Leisure Avenues Gift aided their profits of £14,633 at year end 31 March 2021 to NBLT. We were able to agree the transfer via bank statements, which occurred in December 2021. This was therefore within 9 months of the year end and no issues were identified.

3.3 Judgements & Estimates

3.5 Prior year adjustment

In respect of the above overclaim, a prior year adjustment was made to the financial statements. As a result, the grant income and creditors in the prior year comparatives have been restated. The grant income was reduced by £208,984 and a creditor due to HMRC was recognised. The undesignated funds were adjusted accordingly.

As noted in the Audit Planning Letter, a revised auditing standard for Auditing Accounting Estimates & Related Disclosures is applicable to the current year.

We highlighted the remaining useful life of fixed assets as an estimate for specific review. We identified no issues in relation to this.

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3.6 Changes within the senior finance team

The General Manager was suspended from their role (and later dismissed) during the year as a result of an investigation into an overclaim of the Coronavirus Job Retention scheme grant. The former General Manager appealed his dismissal which was rejected and has now taken the case to an Employment Tribunal. The Trustees have engaged solicitors to deal with the matter but do not expect any potential liability as a result, to be material.

Due to other changes to the finance team and events during the year, we have paid particular attention to areas where fraud could occur during our audit, especially around journals posting and potential areas for manipulation of management information. We do not have any matters to bring to your attention in this respect.

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4. Fraud and irregularities and our audit reporting

Audit reporting on detecting irregularities, including fraud

In line with ISA (UK) 700 our audit report includes an additional comment to explain to what extent the audit was considered capable of detecting irregularities, including fraud.

Irregularities are acts of omission or commission which are contrary to the prevailing laws or regulations. Fraud includes both fraudulent financial reporting and misstatements resulting from misappropriation of assets.

Our responsibility is to obtain reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error. The additional reporting requirements this year placed increased emphasis on our understanding of the risks to Nuneaton & Bedworth Leisure Trust from fraud and irregularities. Our audit included discussions with management to obtain their assessment of the risk that fraud may cause a significant account balance to be materially misstated as well as other procedures to obtain sufficient appropriate audit evidence.

We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context for the UK operations were Ofsted Regulations, Tax Legislation, Health and Safety legislation and Employment Legislation.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Board of Trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

In accordance with International Auditing Standards, we planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements or accounting records including any material misstatements resulting from fraud, error or non-compliance with law or regulations.

However, owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected even though the audit is properly planned and performed in accordance with the ISAs (UK). No internal control structure, no matter how effective, can eliminate the possibility that errors or irregularities may occur and remain undetected. In addition, because we use selective testing in our audit, we cannot guarantee that errors or irregularities, if present, will be detected. Accordingly, our audit should not be relied upon to disclose all such misstatements or frauds, errors or instances of non-compliance as may exist.

We have also included in Appendix 5 some fraud risks that Trustees and management should be aware of.

Trustee responsibilities

The primary responsibility for safeguarding the charity’s assets and for the prevention and detection of both irregularities and fraud rests with the trustees and management of the organisation. It is important that management, with oversight of those charged with governance, place a strong emphasis on fraud prevention and fraud deterrence. This involves a commitment to creating a culture of honest and ethical behaviours which can be reinforced by an active oversight by those charged with governance.

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As in past years, the following statements will be included in the letter of representation which we require from the trustees when the financial statements are approved.

potential frauds which could affect the 2022 financial statements, or in the period since the previous year end.

• The trustees acknowledge their responsibility for the design and implementation of internal control to prevent and detect fraud and errors.

• The trustees have assessed that there is no significant risk that the financial statements are materially misstated as a result of fraud.

• The trustees are not aware of any fraud or suspected fraud affecting the charity involving management, those charged with governance or employees who have a significant role in internal control or who could have a material effect on the financial statements.

• The trustees are not aware of any allegations by employees, former employees, regulators or others of fraud, or suspected fraud, affecting the charity’s financial statements.

We draw your attention to bullet point 2 above which presupposes that an assessment has been made. We have not been made aware of any actual or

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Appendix 1 - Reporting audit adjustments

Unadjusted misstatements

International Standards on Auditing (UK) require that we report to you all misstatements which we identified as a result of the audit process but which were not adjusted by management, unless those matters are clearly trivial in size or nature.

We are pleased to report that there are no remaining unadjusted items identified from our audit in excess of the above trivial limit.

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Appendix 2 - Systems and controls

We have set out below certain potential improvements to the charity’s processes and controls which we noted during our audit work and which we believe merit being reported to you.

Our evaluation of the systems of control at Nuneaton & Bedworth Leisure Trust and its subsidiary company was carried out for the purposes of our audit and accordingly it is not intended to be a comprehensive review of your business processes. It would not necessarily reveal all weaknesses in accounting practice or internal controls which a special investigation might highlight, nor irregularities or errors not material in relation to the financial statements.

In order to provide you with a clearer picture of the significance of issues raised, we have graded the issues raised by significance/priority before any corrective actions are taken: We have also included below a brief update on the matters we raised last year.

High	These findings are significant and require urgent action.	(0 comments in this category)
Medium	These findings are of a less urgent nature, but still require reasonably prompt action.	(1 comment in this category)
Low	These findings merit attention within an agreed timescale.	(0 comments in this category)

Audit finding and recommendation	Priority	Management response
1. Fixed asset register There is no fixed asset register held or maintained at the Trust. There is a risk that, as management are unaware of the assets they hold, that some assets may be obsolete or no longer in existence, and therefore overstated in the financial statements. There is also a risk of fraud by theft.	Medium	Management have confirmed that progress has been made to produce and maintain a fixed asset register.

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We have set out below the systems and control issues on which we reported after our audit last year together with an update on how the points raised have been addressed including information on the progress made at the time of the audit of the 2022 financial statements.

Status		Priority	Priority	Priority	Priority
Recommendation fully implemented or no longer relevant		These findings merit attention within an agreed timescale.
Recommendation partially implemented		These findings are of a less urgent nature, but still require reasonably prompt action.
These findings merit attention within an agreed timescale.		These findings are significant and require urgent action.
Observations and recommendations in 2021			Priority	Status	Update 2022
1. Authorisation of Journals The General Manager raises, posts and approves journals on the system throughout the year. We acknowledge that because NBLT have a small finance team, segregation of duties can be difficult, however we recommend a process is implemented for authorisation of journals as journal entry is considered to be a high risk area in relation to fraud and manipulation of data.			Medium		Very difficult to implement within existing staffing levels and such a small finance team however this is being considered by the new finance manager. This matter is ongoing.
				No
				progress
2. Old unreconciled items on bank reconciliation There is an old unreconciled item on the bank reconciliation dating back to November 2019. The item relates to a cheque that, due to its age, is unlikely to be cleared. It is good practice to clear any old unreconciled items when monthly reconciliations are completed.			Low	Cleared	No such issues noted from the current year audit. This matter is now resolved.

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Observations and recommendations in 2021	Priority	Status	Update 2022
3. No Formal documentation issued to furloughed employees When reviewing a sample furloughed employees during the year, we noted that there was no formal documentation issued to inform them of their employment status during this time. All communication was carried out verbally. We recommend that for any changes to employment status, formal documentation should be issued to employees and copies retained on personnel files to avoid any potential employee disputes or litigation.	Medium	Cleared	This continued to be the case for the employees furloughed during the period from April – July 2021, until furlough ended. This will not be an issue for next year as the furlough scheme has now ended.
4. Payslip information – furlough claims For 6 of the 30 furloughed employees chosen for testing, the amount of furlough claim was not detailed on their payslip correctly. To avoid any confusion/disputes from employees, and to ensure that accurate records are kept in advance of any potential future visits from regulatory bodies in this respect, we recommend that for any furlough claims paid, that payslips clearly state the furlough elements.	Medium		No issues noted this year. All payments of furlough were correctly disclosed on payslips. This matter is now resolved.
		Cleared
5. Lack of documentation for disposals During our review of fixed asset disposals, it was found that there were a number of cash sales during the year where no supporting documentation had been retained. We recommend that where any fixed assets are sold, that invoices/receipts are issued to the buyer and copies retained to ensure complete records and to avoid any potential litigation.	Low	Cleared	For the disposals in the year, relevant documentation was retained. This matter is now resolved.

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Observations and recommendations in 2021 Priority Status Update 2022 6. Timesheet authorisation Medium Cleared No issues noted from the current year audit testing. For 1 of the 2 timesheets sampled, the timesheet had only been authorised by 1 This matter is now resolved. individual instead of 2 (in line with the charity’s policy). We recommend that all timesheets are authorised by 2 individuals, in line with the charity’s policy in place to avoid any inaccurate claims of time by employees which could result in incorrect payments made to employees in respect of these claims.

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Appendix 3 - Going concern

The Charity Commission guidance “Managing financial difficulties & insolvency in charities” (CC12) stresses the importance for “a trustee body to have a good knowledge and understanding of the charity and its finances so that, as far as possible, the continued viability of the charity and its charitable activities can be assured.”.

This is a theme that runs through the Charity Commission’s updates and alerts including its guidance on whether charities can use reserves and restricted funds to help the charity through the crisis.

The Charity Commission guidance highlights a number of factors the trustees need to consider.

• Trustees should review what are their short, medium and longer-term priorities, including whether or not certain projects, spends or activities can be stopped or delayed.

• The guidance recognises that reserves can be used to help cope with unexpected events like those unfolding at present.

• If the trustees have previously decided to earmark certain funds for a particular purpose they may be able to re-prioritise these.

• Restricted funds which cannot be spent at the trustees’ discretion may only be used for a particular and defined purpose. In some instances, there may be ways to amend these restrictions, but accessing or releasing restricted funds should only be considered if other options such as reserves are not possible.

• All decisions on such financial matters should normally be taken collectively, and significant decisions and action points noted in writing.

a) Liquidity and resilience

The Charity Commission guidance goes on to explain that “ The overall responsibility for effective governance and the implementation of proper financial management rests with the trustees, but may well involve all staff members whether paid or volunteers .”

As well as the level of available reserves the trustees will also need to understand and consider the charity’s liquidity.

• Proper consideration needs to be given to cash flow forecasts and debt and project management based on realistic assumptions set. There should be a budget including cash projections and business plans produced at least annually and monthly monitoring against the plans.

• There is a need to extend cash flow forecasts to evaluate issues that may arise after the end of the period covered by existing cash flow forecasts.

• There should be processes in place to ensure that appropriate procedures and controls have been applied to models used to generate cash flow and valuation information, including the choice and consistent use of key assumptions.

• Appropriate sensitivity analysis needs to be applied to address the potential impact of reasonably possible events. Sources of income and expenditure should be analysed with consideration of uncertainties around grant funding, voluntary or earned income.

• The sensitivity analysis should properly flex assumptions to identify how robust the model outputs are in practice and that the assumptions are free from bias.

In April 2016 the FRC issued its guidance on the Going Concern Basis of Accounting and Reporting on Solvency and Liquidity Risks for companies that do not apply the UK Corporate Governance Code. Whilst this guidance refers to “directors” and “companies”, the report makes it clear that it is designed to relate to all other entities preparing accounts under the going concern basis and it will therefore be applicable to charities and charity trustees.

The guidance defines Solvency Risk as “ the risk that a company will be unable to meet its liabilities in full” and Liquidity Risk as “the risk that a company will be unable to meet its liabilities as they fall due ”.

The guidance sets out some of the factors which directors should consider as part of their assessment process but also explains that it is the directors that

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need to determine the relevance of these factors considering the size, complexity and the particular circumstances of the organisation, its industry and the general economic conditions.

In their guidance ‘Company Guidance Update March 2020 (COVID-19), the Financial Reporting Council, explain “ Given the systemic uncertainties that currently exist, many boards will be less confident in stating that they have a reasonable expectation that the company will be able to continue in operation and meet its liabilities as they fall due over a period of assessment (“the viability statement” as required for compliance with the UK Corporate Governance Code) ”.

However, the FRC stresses the following points:

• “ Boards are required to have a “reasonable expectation” of the company’s viability over the period of assessment – during the current emergency and unprecedented pace of change, any reasonable level of expectation would naturally carry a much lower level of confidence;

• Being clear on the company’s specific circumstances and the degree of uncertainty about the future is important information; and

• When presenting a company’s viability statement, its board should draw attention to any qualifications or assumptions as necessary.

In describing any qualifications to the statement, a board should describe the limits of the predictions, the level of confidence with which they have been made and the uncertain future events that could prove critical to viability.

Similarly, the key assumptions made and the future scenarios considered should be explained. Many companies already use scenario and stress testing in developing their statements and this should continue as far as practicable. The use of reverse stress testing, to identify future scenarios that could lead to corporate failures, is also good practice.

At this time, the need for fuller disclosure is paramount.”

In addition, there may be charity specific issues to consider including ensuring that there are no breaches of trust with respect to any restricted income or endowed funds and that the charity is able to meet its obligations in relation to these funds. Trustees may be held liable for a breach of trust if they apply restricted funds for purposes outside of the relevant restriction.

CC25: “Charity finances: trustee essentials” – issued in March 2017 emphasises the need for charities to be resilient. This is a key theme for much of the Commission’s guidance is also discussed in the updated CC19 guidance entitled “Charity reserves: building resilience”.

In the section on ‘managing financial difficulties and insolvency, CC25 explains that if charities face financial difficulties then the trustees must:

• “ have the appropriate skills and time to ensure the proper running of the charity and lead or manage it through difficulties,

• ensure that they regularly receive and consider robust and up-to-date financial management information to enable them to recognise at an early stage when the charity is facing financial difficulties,

• find out which charity funds are restricted in their use by their donors and which can be used for any of its aims - this is crucial to the proper understanding of the charity’s overall financial position,

• take prompt action when they think insolvency is a possibility – professional advice in writing should be taken at an early stage because any corrective action needs to be carefully planned,

• consider changing, cutting or restricting the charity’s activities, reviewing funding sources and commitments or refinancing,

• think about merging or collaborating with another charity,

• have an understanding of (and if necessary take advice about) insolvency law and how it applies to charitable companies, and what voluntary options there are for other types of charity,

• recognise that once the charity has reached the stage of liquidation or winding up their primary duty is to pay the charity’s debts, and

• tell the Commission if the charity closes or is no longer active so that it can be removed from the register of charities (legal requirement). ”

b) Insolvency

There are normally two tests of insolvency – the balance sheet test (positive net assets) and the cashflow test. The key issue is, can the organisation pay its debts as they fall due? The cash flow test is of particular importance and a charity can be insolvent even if it has positive net assets. Careful consideration is required of many factors, such as what values can be realised

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in time to meet debts and what assets can be used to meet liabilities. Understanding is needed of the implications of the different restricted and endowed funds held by the charity. The position for trustees of an unincorporated charity is different and the risks are usually higher.

Directors and shadow directors can be guilty of wrongful trading if they continue to trade and incur liabilities they knew or ought to have known that there was no reasonable prospect of avoiding insolvent liquidation.

Fraudulent trading is also a risk. Section 213 of the Insolvency Act provides that on the application of the liquidator of a company the Court may order that any persons who were knowingly party to carrying on the business of the company with intent to defraud creditors must make a contribution to the company’s assets. For a fraudulent trading action, intent to defraud creditors must be proved and the onus of proof is on the liquidator. There must be evidence of actual dishonesty. For an insolvent charitable company, senior management, and not just the trustees, could also be made liable for fraudulent trading. The charity should avoid entering into preferential transactions which put another party in a better position to the detriment of other creditors. The court will recognise mitigating circumstances. For example, if the directors took proper steps to minimise the potential loss to the company’s creditors.

c) Finalising the financial statements

Given the potential for rapid spreading of the virus, required disclosures will likely change over time as more information about the epidemic emerges. As a result, the trustees will need to monitor developments and ensure that they are providing up-to-date and meaningful disclosure before finalising their yearend report.

The Financial Reporting Council in their ‘Company Guidance Update March 2020 (COVID-19)’ thinks it is likely that more companies will disclose ‘material uncertainties’ to going concern in current circumstances. The impact of the coronavirus outbreak will require all entities, including charities, to reassess their financial position and their ability to continue to operate as a going concern. This may require considering a number of factors but probably key will be to update the charity’s budgets and forecasts and also to consider whether the charity might fail to comply with any external covenants.

Put simply, where boards identify possible events or scenarios, other than those with a remote probability of occurring, that could lead to failure, then these should be disclosed. Boards may take account of potential responses open to them to mitigate such events or scenarios although would need to consider the likely success of any response.

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Appendix 4 - Responsibilities and ethical standards

Audit purpose and approach

Our audit work has been undertaken for the purposes of forming our audit opinions on the financial statements of the Nuneaton & Bedworth Leisure Trust and its subsidiary entities prepared by management with the oversight of the trustees and has been carried out in accordance with International Standards on Auditing (UK) (‘ISAs’).

Our work combined substantive procedures (involving the direct verification of transactions and balances on a test basis and including obtaining confirmations from third parties where we considered this to be necessary) with a review of certain of your financial systems and controls where we considered that these were relevant to our audit.

Financial statements

The trustees of Nuneaton & Bedworth Leisure Trust are responsible for the preparation of the consolidated financial statements on a going concern basis (unless this basis is inappropriate). The trustees are also responsible for ensuring that the financial statements give a true and fair view, that the process your management go through to arrive at the necessary estimates or judgements is appropriate, and that any disclosure on going concern is clear, balanced and proportionate.

Legal and regulatory disclosure requirements

In undertaking our audit work we considered compliance with the following legal and regulatory disclosure requirements, where relevant.

• Companies Act 2006

• Charities Act 2011

• The Charities (Accounts and Reports) Regulations 2008 (or updated Regulations if enacted before completion of the financial statements)

• Financial Reporting Standard 102 (FRS 102)

• The Charities SORP (FRS 102)

Directors’ responsibilities

Under the provisions of the Companies Act, the Directors’ Report is required to include a statement confirming for each director who was a director at the time of the approval of the financial statements that:

• they have each taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company’s auditor is aware of that information; and

• so far as they are aware there is no relevant audit information of which the company’s auditor is unaware.

Ethical Standard

We are required by the Ethical Standard for auditors issued by the Financial Reporting Council (‘FRC’) to inform you of all significant facts and matters that may bear upon the integrity, objectivity and independence of our firm.

Crowe U.K. LLP has procedures in place to ensure that its partners and professional staff comply with both the relevant Ethical Standard for auditors and the Code of Ethics adopted by The Institute of Chartered Accountants in England and Wales.

As explained in our audit planning letter, in our professional judgement there are no relationships between Crowe U.K. LLP and Nuneaton & Bedworth Leisure Trust or other matters that would compromise the integrity, objectivity and independence of our firm or of the audit partner and audit staff. We are not aware of any further developments which should be brought to your attention.

Independence

International Standards on Auditing (UK) require that we keep you informed of our assessment of our independence.

We confirm that we have carried non-audit services as detailed below. We have not identified any other issues with regards to integrity, objectivity and independence and, accordingly, we remain independent for audit purposes.

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In communicating with those charged with governance of the parent charity and group we consider those charged with governance of the subsidiary entities to be informed about matters relevant to them.

The matters in this report are as understood by us as at 20 July 2022. We will advise you of any changes in our understanding, if any, during our meeting prior to the financial statements being approved.

Non-audit services

We have considered the non-audit services we have provided in the period and have concluded that there are no facts or matters that bear upon the integrity, objectivity and independence of our firm or of the audit partner and audit staff related to the provision of such services which we should bring to

your attention. Our fees for non-audit services in the year have been as follows.

Employment Tax Services £3,800

Use of this report

This report has been provided to The Trustees to consider and ratify on behalf of the Board of Trustees, in line with your governance structure. We accept no duty, responsibility or liability to any other parties, since this report has not been prepared, and is not intended, for any other purpose. It should not be made available to any other parties without our prior written consent.

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Appendix 5 - Fraud risks

As part of our audit procedures we make enquiries of management to obtain their assessment of the risk that fraud may cause a significant account balance to contain a material misstatement. However, we emphasise that the responsibility to make and consider your own assessment rests with yourselves and that the trustees, Audit Committee and management should ensure that these matters are considered and reviewed on a regular basis.

Usually fraud in the charity sector is not carried out by falsifying the financial statements. Falsifying statutory financial statements usually provides little financial benefit, as compared to say a plc where showing a higher profit could lead to artificial share prices or unearned bonuses. However, falsifying financial statements can be used to permit a fraud or to avoid detection. As a generality, charities represented by its management and its trustees do not actively try to falsify financial statements as there are not the same incentives to do so. In the charity world fraud is usually carried out through misappropriation or theft.

The trustees should be aware that the Charity Commission provides guidance (updated in October 2019) on how to protect your charity from fraud including information about fraud, how to spot it and what you can do to protect against it -

The Charity Commission’s first guiding principle recognises that fraud will always happen. It is therefore important that, as part of setting their overall risk appetite, the trustees consider fraud within their tolerance for the risks associated with the management of the organisation’s (and group’s) funds. The development and continued assurance of a robust counter fraud control framework should then contribute to the organisation matching the risk appetite and tolerance agreed by the trustees.

. A fraud risk assessment is an objective review of the fraud risks facing an organisation to ensure they are fully identified and understood. This includes ensuring:

• fit for purpose counter fraud controls are in place to prevent and deter fraud and minimise opportunity, and

• action plans are in place to deliver an effective and proportionate response when suspected fraud occurs including the recovery of losses and lessons learnt.

Good practice suggests that to be most effective the risk assessment should be undertaken at a number of levels within the organisation:

• Organisational – to assess the key policy, awareness raising and behavioural (including leadership commitment) requirements that need to be in place to build organisational resilience to counter fraud.

• Operational – a detailed analysis of the fraud risk and counter fraud control framework at the operational level – by function (activity) or individual business unit (including programmes and projects).

Any fraud risk assessment should not be seen as a standalone exercise but rather an ongoing process that is refreshed on a regular basis. Carrying out the fraud risk assessment may reveal instances of actual or suspected fraud. Should this happen next steps will be determined on circumstances, the existing control framework (including any response plan(s)), and in consultation with the key members of the organisation’s management team.

Considering risks of fraud

There is evidence that during times of economic instability there is an increased risk of fraud. This may be because resource constraints can reduce internal controls and over sight and also because individuals facing hardship may be more likely to consider fraudulent practices.

The following provides further information on the three kinds of fraud that charities such as Nuneaton & Bedworth Leisure Trust should consider.

a) Frauds of extraction

This is where funds or assets in possession of the charity are misappropriated. Such frauds can involve own staff, intermediaries or partner organisations since they require assets that are already in the possession of the entity being extracted fraudulently. This could be by false invoices, overcharging or making unauthorised grant payments.

Essentially such frauds are carried out due to weaknesses in physical controls over assets and system weaknesses in the purchases, creditors and payments cycle. The cycle can be evaluated by considering questions such as who authorises incurring a liability and making a payment. On what evidence? Who records liabilities and payments? Who pays them and who checks them?

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The close monitoring of management accounts, ledger entries and strict budgetary controls are also generally seen as an effective way of detecting and deterring frauds in this area.

Staff should be made aware of the increasing use of mandate fraud. This is where when the fraudster gets the organisation to change a direct debit, standing order or bank transfer mandate by purporting to be a supplier or organisation to which the charity makes regular payments.

Insufficient due diligence around requests to amend supplier or payroll details has led to payments to unauthorised individuals so sufficient checks in these areas is of increasing importance.

Some charities have also been victims of what is being termed CEO fraud, although it does not involve the CEO. In this case cyber criminals spoof company email accounts and impersonate executives to try and fool an employee in accounting or HR into executing unauthorised wire transfers or sending out confidential information.

This type of phishing scam is a sophisticated scam targeting businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The scam is carried out by compromising legitimate business e-mail accounts through social engineering or computer intrusion techniques to conduct unauthorised transfers of funds. Action Fraud, the UK’s national fraud and cyber-crime reporting centre has reported an increase in fraud and scams, including a rise in phishing emails where the fraudster attempts to trick people into opening malicious attachments which could lead to fraudsters stealing people’s personal information, email logins and passwords, and banking details.

Charities should therefore ensure that they reiterate their procedures to employees and raise awareness of fraud preventions across their organisations. All employees should exercise real scepticism and not make any payments which are not properly supported and outside the normal payment mechanisms. To paraphrase Action Fraud’s recommendations, which are particularly significant as staff are working remotely and some working different hours in order to manage the challenges of working from home:

• Have a system in place which allows staff to properly verify contact from their CEO or senior members of staff; for example, having two points of contact so that the staff can check that the instruction which they have received from their CEO is legitimate.

• Always review financial transactions to check for inconsistencies/errors, such as a misspelt company name.

• Consider what information is publicly available about the business and whether it needs to be public.

• Ensure computer systems are secure and that antivirus software is up to date.

All employees should exercise real scepticism and not make any payments which are not properly supported and / or outside the normal payment mechanisms.

b) Backhanders and inducements

There is also an inherent risk that individuals who are able to authorise expenditure or influence the selection of suppliers can receive inducements to select one supplier over the other. This risk can be mitigated by robust supplier selection and tendering procedures.

c) Frauds of diversion

This is where income or other assets due to Nuneaton & Bedworth Leisure Trust are diverted before they are entered into the accounting records or control data. Essentially, it is easy to check what is there but very difficult to establish that it is all there. Therefore, ensuring the completeness of income provided to a charity becomes difficult.

It is important to consider the different income streams and when and how they are received. So income received directly into the charity’s bank account will be a lower risk than income being received by home based fundraisers.

• Ensure all staff, not just finance teams, know about current frauds and scams.

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Appendix 6 - External developments

We have summarised below some of the developments and changes in the charity sector over the recent period which we believe may be of interest and relevant to you. Please note that this information is provided as a summary only and that you should seek further advice if you believe that you have any specific related issues or intend to take or not take action based on any of the comments below.

We believe it is important to keep our clients up to date on the issues that affect them and, as a part of our ongoing communication, we regularly hold webinars and therefore encourage you to visit our website (https://www.crowe.com/uk/croweuk/industries/webinars).or register to our mailing list ([e-mail]) to stay updated on these. Any webinars which you have missed remain available on demand on our website.

Governance

The Charities Bill: 5 key changes to charity law

The Charities Act 2022 (the Act) received Royal Assent on 24 February 2022 and brings into force a number of key changes to the Charities Act 2011, aimed at simplifying a number of processes.

We have set out some of the key changes that apply to England and Wales.

Governing document amendments

Amendments have been made to the Act to more closely align the rules for charities amending their constitution irrespective of the legal structure. Whilst the Commission will still need to approve any regulated amendments (e.g. changes to the charity’s objects), they will now apply the same consistent criteria to approve these.

Permanent endowments

The definition of permanent endowments has been updated with a simplified definition where property is considered to be a permanent endowment if it is ‘subject to a restriction on being expended which distinguishes between income and capital’. The Charities Act has also been updated to increase the maximum value of a permanent endowment that Trustees can resolve to release restrictions on spending capital from £10,000 to £25,000. This power has also been extended to incorporated entities.

In addition, a new provision in the Act will allow Trustees to borrow up to 25% of the value of a charity’s permanent endowment subject to the amount being repaid within 20 years of being borrowed.

Mergers

A key amendment to the Act allows for legacies to be transferred to a merged charity. This change will remove the need for ‘shell charities’ to be maintained and therefore reduce administration costs.

Failed appeals

The Act introduces new rules granting the power for trustees to apply cy-près, allowing charities more flexibility in response to a charity appeal that has failed, allowing donations to be applied for another charitable purposes rather than having to be returned to donors under certain conditions:

• i) The donation is a single gift of £120 or less; and the Trustees reasonably believe that during the financial year the total amount received from the donor for the specific charitable purpose is £120 or less (unless the donor states in writing that the gift must be returned if the charitable purposes fail); or

• ii) The donor, after all agreed actions have been taken, cannot be identified or found; or

• iii) The donor cannot be identified (for example cash collections)

Payments to Trustees

Trustees (or a person connected to the trustee) may receive payment for the provision of services to a charity under certain conditions. The Act extends this provision to allow payment for the provision of goods to a charity.

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Ex Gratia Payments

Amendments to the act allow for ex gratia payments to be made without the Commission’s consent, up to a maximum of £20,000 depending on the charity’s income. In addition, the amendments allow this decision to be delegated to staff.

Full details of all the changes can be found here and here .

Charity Commission: ‘Take action on fraud’

As part of Charity Fraud Awareness Week, the Charity Commission issued a press release in October 2021 warning charity trustees and management to ‘take action on fraud’ as new figures show £8million reported lost to crime last year.

The latest data from Action Fraud also shows 1,059 separate incidents of fraud were reported by charities in just one year from April 2020 to March 2021. Together with the Fraud Advisory Panel, the regulator is urging all trustees to sign up to a new Stop Fraud Pledge, which commits charities to taking six practical actions to reduce the chances of falling victim to fraud.

The pledge includes the following measures:

• Appoint a suitable person (staff member, volunteer or trustee) to champion counter fraud work throughout the organisation

• Ensure that all trustees are aware of their legal duty to protect the charity’s assets.

• Consult with staff, volunteers and trustees to identify the types of fraud that threaten the organization and the ways they can be prevented.

• Assess annually how well the fraud controls are working, taking into account new risks and making improvements as needed.

Our Fraud Risk Assessment guidance can be used to help you assess fraud risk appropriately, it incudes:

• key questions for Boards to ask as a starting point in considering fraud risk

• detailed organisational counter fraud checklist which lists key questions for Boards on areas of organisational resilience

• checklist of potential fraud risks by function and activity

• set of questions from the National Cyber Security Centre (NCSC) publication “10 Steps to Cyber Security” to assist Boards with their existing strategic-level risk discussions.

Remote meetings

It has been possible for many charities to move back to face-to-face meetings and hold any outstanding AGMs or other meetings in person where required. On 21 April 2022 the more flexible approach to charities holding meetings outside of the terms of their governing documents came to an end.

Meetings

All charities should check that their governing document allows them to hold meetings in the way they want to, whether that’s online, by telephone, remotely or in person.

Holding meetings online or by telephone

Trustees should check if their charity’s governing document allows them to hold meetings online, by telephone or on a hybrid basis.

If your governing document does not allow online, telephone or hybrid meetings you should consider if you can use any power (usually in your governing document) to amend the rules to allow these types of meetings.

The Charity Commission’s guidance on meetings explains:

“Charity trustees may choose to conduct some trustee meetings by electronic means, unless the governing document specifically prohibits it, and provided that the means used allows them to both see and hear each other, for example, by using video conferencing or internet video facilities.”

In contrast, as telephone conferencing only permits the participants to hear but not see each other it does not constitute a ‘meeting’ within the meaning of the decision in the Byng case. However, it is still possible for meetings to be arranged in the form of a telephone conference if there is a specific provision in the charity’s governing document.

If there is no power in the governing document to hold meetings by telephone the trustees can alter the governing document to adopt such a power. This alteration can be made if there is a suitable power of amendment in the charity’s governing document.

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In the absence of a specific power to conduct business by telephone conferencing, such a method may only be used for preliminary discussions, etc, relating to business which has to be transacted at a meeting.

Any decisions taken in the course of a telephone conference where the business concerned has to be transacted at a meeting in the strict sense could become the subject of a potential legal challenge.

Compliance

Government procurement: carbon reduction plans

The Government has introduced new measures which will require businesses to commit to net zero by 2050 and publish clear and credible reductions plans before they can bid for major government contracts.

Under the new measures, for procurements advertised on or after 30 September 2021, suppliers bidding for contracts above £5million a year will need to have committed to the government’s target of net zero by 2050 and have published a carbon reduction plan.

Carbon Reduction Plans (‘CRP’) must meet the required standard, and includes (but is not limited to):

• Confirming the bidding supplier’s commitment to achieving Net Zero by 2050 for their UK operations.

• Providing the supplier’s current emissions for the sources included in Scope 1 and 2 of the GHG Protocol, and a defined subset of Scope 3 emissions.

• Providing emissions reporting in CO2e (Carbon Dioxide Equivalent) for the six greenhouse gases covered by the Kyoto Protocol4

• Setting out the environmental management measures in effect, including certification schemes or specific carbon reduction measures you have adopted, and that you will be able to apply when performing the contract and that support achieving Net Zero by 2050.

• Publication of the CRP on the supplier’s website

Further details can be found here along with the Procurement Policy Note issued by the Cabinet Office here .

Fundraising Regulator: Annual complaints report

There has been a sharp increase in fundraising complaints since February 2022, according to the Fundraising Regulator’s annual report.

The type of complaints received does reflect the operational changes made during the pandemic. As the sector was forced to move from face-to-face fundraising and embrace more digital techniques, there was inevitably an increase in complaints regarding digital fundraising.

Charity collection bags remains the fundraising method receiving the most complaints, this was followed by digital fundraising in the latest report.

There was a 252% increase in the number of complaints received during the period of 1st April 2020 to 31st March 2021, compared to data from the previous year. This includes complaints about:

• Social media

• Charity website

• Advertising banners

You can see the full report here.

Changes to the Fundraising Preference Service

A number of changes to the Fundraising Preference Service (FPS) have been announced by the Fundraising Regulator, following an independent review of the FPS.

The review noted that the service continues to be an important tool that allows individuals to control the direct marketing communications they receive from charities, and recommended a number of actions to further strengthen this service.

9 recommendations were made as a result of the review, including increasing the number of suppressions that can be made in a single online transaction and the provision of additional guidance to charities of actions to take when suppression requests are received.

Previously in one online transaction members of the public could request that a maximum of 3 charities stop sending marketing materials. This has now been increased to 10 for online transactions, and 20 where the regulator is contacted by telephone.

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Full details of the review and changes can be found here.

The Procurement Bill

In May 2022 The Government published the Procurement Bill, intended to improve the regulation of public procurement.

Charities delivering public services for local and central government will be impacted by changes in the Bill. This is an important income stream for many in the sector, amendments that improve transparency and fairness will be welcomed and long due.

The Bill also seeks to support businesses by making public procurement more accessible to small businesses, including social purpose and non profits.

Although there are many positives included in the Bill, there may be unintended consequences for local Government making it harder to meet procurement objectives.

Charities can get involved with influencing the Bill as it moves through Parliament. If you would like to discuss thus further please do get in touch.

Changes to classification codes

The Charity Commission has proposed changes to how it classifies charities for more effective and accurate reporting.

The current classification is broad and therefore does not provide enough information for details segmentation.

52% of charities select education and training to describe what they do, but there is no way to delve deeper into what this means.

The proposed changes will provide more details data on the ‘what’, ‘why’ and ‘who’ classifications.

The Commission has undertaken user testing and will publish updates in due course. You can read more about the changes here.

Financial and other reporting

Charity Commission: consultation on changes to the Annual Return

The Charity Commission has launched formal a consultation on proposed changes to the Annual Return. The Return has not changed significantly since 2018.

The Annual Return needs to be completed by all charities with an annual income of £10,000 plus, within 10 months of the end of their financial year.

The Commission has stated its desire to be more data driven and the Annual Return feeds many of the Commissions analyses. The proposed changes will require charities to answer a large number of questions when filing.

The additional questions will be designed to:

• Better understand charities’ sources of funding

• Gain greater insight on roles and responsibilities

• Create a more accurate geographical spread

• Create a clearer picture with regard to staffing and payroll.

It is important that charities have their say and engage with the consultation, to ensure that the relevant considerations can impact decision making.

Charities can take part by responding to the online survey below, the consultation ends September 1st 2022.

https://www.gov.uk/government/consultations/charity-commission-revisionsto-the-annual-return-2023-25

COVID-19-related rent concessions beyond 30 June 2021

In June 2021, the Financial Reporting Council updated the amendment to FRS 102 in respect of Covid-19 related rent concessions, extending the period to which the amendments apply to 30 June 2022.

Under the amendments, any reduction in lease payments are recognised over the period that the change in lease payments is intended to compensate. For example, if a lessee is offered a rent holiday such that the rent due for July 2021 to December 2022 is waived, no lease expense would be recognized in that period.

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The lessee will also need to disclose the change in lease payments recognised in profit or loss in accordance with the amendments, unless the entity is a small entity applying Section 1A of FRS 102, in which case such a disclosure is recommended.

The effective date for these amendments is accounting periods beginning on or after 1 January 2021, with early application permitted.

A copy of the updated amendment to FRS 102 can be obtained here.

Sustainability Reporting and the Charity SORP

Sustainability and environmental issues continue to be high priority for all sectors. The Charity SORP Committee produced a briefing note reflecting on the current approach to sustainability reporting.

The Committee sought to identify whether elements of sustainability reporting should be introduced into the trustees’ annual report, and discuss preferred options should this be the case.

The current SORP ask charities to identify the difference their work has made to society as a whole.

The Committee noted that additional support would likely be required to enable charities to comply with additional reporting requirements, and the need to address the scope of the sector. The current requirements are different for large charities, this would need to remain consistent in order to avoid burdening smaller charities.

The full briefing can be found here.

Our guidance on climate change can be accessed here.

We will be publishing our latest guidance on Streamlined Energy Carbon Reporting (SECR) soon, keep an eye on our website to download this guidance report.

Taxation

Advertising vs Marketing: An update for charities

Charities are allowed to acquire advertising services from suppliers with the zero-rate of VAT but one condition for the relief to apply is that the advertising is made to the general public.

After consultation with the charity and advertising sector, HMRC released its Revenue and Customs Brief 13 in September 2020. The brief indicated that some supplies that are made by suppliers like Facebook could be treated as zero-rated, e.g. audience targeting and location targeting. However, the notice goes on to state that the standard rate of VAT applies to social media accounts because "when individuals log in to their personal pages, sites use tools to apply advertisements to them when they are signed in. The content will be related to the individual’s known likes, dislikes, interests or location, as a signed in member of the website."

We have a number of charity clients that are affected by this as they use suppliers like Facebook for a number of fundraising campaigns. As Facebook is based outside the UK it is up to the UK based charity to account for any VAT due and this is often to a large extent irrecoverable. Therefore, we have written to HMRC to seek clarification of its position.

HMRC has been provided with numerous examples of services and the terms and conditions applicable.

HMRC's response states that all supplies of Facebook advertising fall outside of zero-rated advertising. Consequently, 20% VAT must be accounted for by charities on such supplies received from suppliers based outside the UK.

HMRC's position is now clear and unless it is successfully challenged reverse charge VAT should be applied to services received from suppliers such as Facebook.

If VAT has not been applied to these services, HMRC should be notified of the amount of tax due in order that any penalties applicable can be mitigated.

Grant Funding: Business or non-business

Our Insight in January 2021 informed you of the decision of the Upper Tier Tribunal in Colchester Institute and the potential adverse effects it could have upon institutions other than those in the Further Education (FE) sector.

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Subsequently there has been a further unsuccessful attempt by a FE College to exploit the decision made by the upper Tier Tribunal (read the transcript) and HMRC has also responded with its guidance in its business brief 08/21.

The decision has a direct application to those in the Further Education sector that receive grant income. However, in theory the conclusion arrived at by the UTT could be applied to any entity that has received grant income that has treated this as ‘non-business’.

The decision in Colchester Institute reversed the common opinion that grant income is used to support non-business activities as the court opined that funding from The Skill Funding Agency (SFA) and the Education Funding Agency (EFA) was in fact consideration for supplies of educational services. In theory this could have wide reaching application in relation to the zerorating of buildings used for charitable purposes, the application of reduce rate VAT to Fuel and Power and recovery of VAT on costs using both the standard method and special methods of partial exemption.

Many VAT commentators have seen the decision by the Tribunal as a threat to common well-founded VAT treatments applied by charities.

HMRC’s brief 08/21 does give comfort to the charities’ sector as well as the education sector since it essentially confirms that it disagrees with the Tribunal’s decision and states that whilst it will not appeal, its policy on grant funded education will not change. Therefore, it appears that HMRC has no motivation to use the decision to serve a wider purpose and disturb well established VAT treatments for the charities’ sector. Furthermore, it is willing to retain the status quo in relation to SFA and EFA funding (i.e. treat the income as non-business).

Three common trading activity VAT issues for charities in 2022

Donated Goods Retail Gift Aid Scheme and VAT

The Retail Gift Aid scheme is used by many charities in order to treat what would have been the sale of donated goods as donations of cash by acting as agent for the owners in selling their goods. This enables the charity to be able to claim Gift Aid.

It is important to note, that from a VAT perspective, this changes the nature of the transaction entirely. If donated goods are sold the shop is making a zerorated taxable business activity which enables VAT recovery on associated costs. Whereas, if a charity is selling goods on behalf of someone in return for

a donation, this is a ‘non-business activity’ and so while there is no VAT due on the donation, VAT cannot be recovered on the associated costs.

This can result in the shop being required to apply an apportionment to arrive at the correct amount of VAT recoverable in relation to the shop costs so VAT administration increases and VAT recovery is reduced.

Solution: To properly operate the scheme, the charity should charge a VAT bearing commission to the donor of the goods. This does mean a small amount of VAT being paid to HMRC but VAT on associated costs incurred on the shops can be recovered in full.

Lottery ticket sales from shops

Most charities that operate a lottery sell tickets by entering into monthly agreements with customers who buy directly from a head-office. In addition, some tickets may also be sold in charity shops.

Lottery tickets are exempt from VAT, and therefore, no VAT is due on the sales but VAT cannot be recovered on associated costs. This again results in less VAT being recovered by the charity within the shops. It also adds an extra layer of administration as overhead costs of the shop would need to be apportioned.

Solution: In reality, the VAT bearing costs used by the shop to make the lottery/raffle ticket sales is minimal and so application should be made to HMRC to apply a fairer apportionment on shop costs where these sales exist.

Effect of COVID-19 on VAT recovery rates

The COVID-19 pandemic has resulted in many charity shops, cafes and social enterprise activities to close temporarily. This could have an impact on the amount of VAT recoverable on overhead costs, particularly where the charity uses an income-based apportionment as the proxy for recovery (e.g. the standard method of partial exemption). This is because taxable income has been reduced while exempt income may have remained constant. For example, care services in general will have continued during lockdown, while shops/cafes and conference venues have remained closed.

Solution: Apply to HMRC to agree an alternative recovery method for the year. HMRC has released an information sheet which states it will look at these requests sympathetically and has set up a purpose-built inbox to review these applications. We would suggest that charities review their recovery rates to see if there has been, or will be (using a forecast), a heavy reduction

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input tax recovery so this can be addressed. HMRC’s release can be accessed here.

12.5% VAT rate applied to hospitality

From 1 October 2021 the VAT rate applied to hospitality changed from 5% to 12.5%. From 15 July 2020 VAT had been chargeable at 5% on:

• on-premises catering and non-alcoholic drinks sold with catering

• hot takeaway food and drinks

• admissions to attractions including theatres and amusement parks

• hotel and holiday accommodation.

This was always intended to be a temporary measure to boost the hospitality sector at this difficult time. Rather than return to 20% VAT in one go, the VAT rate applicable to these goods and services changed to 12.5% where these are supplied between 1 October 2021 and 31 March 2022.

It should be noted that none of the above affects situations where no VAT is chargeable, such as cold takeaway food.

We have produced guidance on actions both suppliers and customers should take here https://www.crowe.com/uk/insights/preparing-for-the-new-vat-rate.

VAT and Covid-19 Testing

HMRC has recently released its policy, Revenue and Customs Brief 11, in relation to the VAT treatment of COVID-19 tests, and is relevant to any organisation who is involved in the provision of tests for COVID-19 or receives these services from suppliers.

HMRC’s recent brief has confirmed its policy on the VAT treatment of COVID19 testing and the requirements for VAT exemption to apply. These should be followed to avoid HMRC issuing VAT assessments and penalties.

HMRC has stated that the medical care exemption will apply in instances where:

• the service incorporates the administration of the test to the patient; and

• the provision of the results,

• by a medical professional or somebody supervised by a medical professional such as a qualified registered nurse, doctor or a state regulated institution.

Exemption can still apply where the service is supplied by a non-registered person but the services are ‘wholly performed’ by a medical professional. Exemption does not apply where:

• the service is provided by UK Accredited Service or the Care Quality Commission as HMRC does not consider these as being state regulation

• the service is administered by the patient themselves. Therefore, lateral flow tests are standard rated

• tests are supplied by manufacturers to hospitals. pharmacies.

HMRC’s policy may be challenged as the application to some scenarios could be complicated and provide results that will appear inequitable.

However, if your organisation’s treatment is not in line with the policy corrective action should be taken both retrospectively and going forward.

Furthermore, if a supplier has been applying standard rate VAT where exemption applies, the over-charged VAT can be recovered by seeking a credit from the supplier.

Tax on Covid-19 Grants for charities

Over the last couple of years many charities and/or their trading subsidiaries have claimed payments under the coronavirus job retention scheme (CJRS). The CJRS scheme ended on 30 September 2021 and was replaced by the Job Support Scheme (JSS).

Charities may also have claimed the following Covid grants, or ‘coronavirus support payments’ (CSP), which include:

• the self-employment income support scheme (SEISS),

• the small business grant fund,

• the retail, hospitality and leisure grant fund, the local authority discretionary grants fund,

• the coronavirus statutory sick pay (SSP) rebate scheme,

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• the equivalent grant funds in Scotland, Wales and Northern Ireland

• amounts paid under the test and trace support payment scheme and its equivalent in Scotland and Wales, called self-isolation support payments

• Eat Out to Help Out (EOTHO)

CJRS and other CSP payments are generally stated to be taxable for income or corporation tax – is that the case for charities?

If the payments are to support a charitable (ie a non-taxable) activity of a charity, they are not taxable. If they are to support a non-charitable trade, then they will be included in the profits from that trade, as the expenditure covered will be tax-deductible. If the turnover from the trade is below the de minimis limit for income or corporation tax (currently £80,000 in a tax year, or less if the charity’s total income is below £320,000) then the grant payments will not be counted when calculating whether the turnover goes over that limit. However, once the turnover is over that limit, then the CJRS/CSP receipts become taxable income.

If the CJRS or CSP grant relates to two different activities, one charitable and the other non-charitable, then it needs to be apportioned between the two on a reasonable basis.

EOTHO was implemented separately from other CSPs. HMRC guidance for EOTHO states that “You must include the payments you receive as income when you calculate your taxable profits for Income Tax and Corporation Tax purposes”.

Reporting CJRS payments

However, when it comes to reporting grant payments to HMRC, there are additional tax return reporting requirements for CJRS, JSS, JRB and EOTHO. The JRB, or Job Retention Bonus, is not yet in operation. The Eat Out To Help Out scheme (EOTHO) applied in August 2020.

Whether or not the amounts received are taxable, they need to be reported on the charity’s tax return (if it needs to complete one). On the Corporation tax return there are three boxes for CJRS receipts, boxes 471-473. Box 471 records CJRS payments actually received in the period, Box 472 records entitlement over the same period. If the total in Box 471 is larger than the total in Box 472, then clearly there is an overpayment that must be returned,

less any overpayments that have already been reported to HMRC or already assessed (Box 473).

Box 474 relates only to JRB and EOTHO overpayments. EOTHO claims need to be reported in Box 647.

The amount owed to HMRC for CJRS is recorded in Box 526. However, this amount is not added to the total of any corporation tax due. It is treated as income tax, and a separate assessment will be issued to collect it.

For trust and estate returns the reporting requirements are contained in Boxes 21.6A and 21.6B. Amounts entered in box 21.6B will be added to the income tax liability of the Trust or Estate, so it is important that if any overclaimed amounts have already been assessed, they are not included in the amount in this box. The individual amounts claimed need to be reported on the relevant boxes of the supplementary pages.

CJRS claims made by trading subsidiaries

If a subsidiary has made its own CJRS (or other CSP grant) claim then clearly this needs to be recorded on its tax return. However, many charities have claimed CJRS for their employees, and then recharged a portion relating to the employees’ work for the trading subsidiary. It is important that the company that has actually claimed the CJRS reports the full amount on its tax return, before any recharges, otherwise confusion will result

Gift Aid: change in income tax rate

At the Spring Statement the Chancellor announced that the basic rate of income tax will be reduced from 20% to 19% in 2024.

There will be a three-year transition period which will maintain the income tax rate for Gift Aid purposes at its current level until April 2027, but charities with significant Gift Aid income should consider the long term impact once this transitional period ends.

In theory, charity donors can make up the Gift Aid deficit by increasing the amount of their donations so that the benefit of the income tax saving is passed on to the charity - but this is unlikely to happen often in practice, especially with smaller donations, because many donors will not usually calculate their donations based on the gross amount before tax. For example, a Gift Aid donor currently making a monthly net donation of £10 to a charity is unlikely to increase the net donation to £10.13 so that the gross amount remains at £12.50.

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In view of this change in income tax rate, some practical considerations charities may consider include:

• Major donors may be open to adjusting their larger donations to account for the effect of the reduced income tax rate.

• Communicating the impact on the charity of the loss of Gift Aid income to donors and potential donors may result in more donations generally.

• Other forms of tax efficient giving such as payroll giving, legacies and gifts of land or shares will not be affected by the change in income tax rate and may be worth exploring and promoting further.

The updated wording, in HMRC’s Chapter 3 guidance, amends a previous update in August 2019 which gave an unclear position on naming rights and implied that the naming of a building would either have to be unsolicited or it would be considered a benefit which would potentially render the donation ineligible for Gift Aid.

The new guidance states that, as long as the naming does not act as an advertisement or sponsorship for a business, then it will not be considered a benefit. This revised wording brings greater clarity to the position and is better aligned with HMRC’s equivalent guidance on the direct tax treatment of charity sponsorship arrangements.

Gift Aid: naming rights

HMRC have issued revised Gift Aid guidance to clarify that the naming of a building or part of a building after a donor will not usually constitute a benefit for Gift Aid purposes.

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Crowe U.K. LLP is a limited liability partnership registered in England and Wales with registered number OC307043. The registered office is at 2[nd] Floor, 55 Ludgate Hill, London EC4M 7JW. A list of the LLP’s members is available at the registered office. Crowe U.K. LLP is registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales and is authorised and regulated by the Financial Conduct Authority. All insolvency practitioners in the firm are licensed in the UK by the Insolvency Practitioners Association. Crowe U.K. LLP is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Crowe U.K. LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global.

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