2021-03-31-accounts - Wave Active Limited

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		Page
Report ofthe Trustees	1	to	19
Report ofthe Independent Auditors	20	to	23
Statement of Financial Activities		24
Balance Sheet	25	to	26
Cash Flow Statement		27
Notes to the Cash Flow Statement		28
Notes to the Financial Statements	29	to	46

Fi ure1
erving Board				ccupation		ore Skills		Gender
Members
Mark Beaumont			(Chair)	Founder/MD/	Entrepreneur	Business start-up and new product		Male
						evelo ment
Phil Clarke				Retired Director Tesco		Private sector - retail and service		Male
				tores Ltd		ana ement
Mike Price				Retired Head Teacher		Public and Charity sector - Special		Male
				Barnados		Needs Education
lan Wisniewski				Retired Sales 8 General		Strategy, Financial Management,		Male
				Manager		Auditing, Information Technology,	Social
						Care Services
Kevin Ellis				Private Maths Tutor		trategy, Financial Management,		Male
						ccountancy, Treasury Management,
						overnance, Trainin & Develo	ment
Marcel Miller				reasurer		Financial Management, Accountancy,		Male
						Banking, Treasury Management,
						Insurance, Pensions,
llr Laurence		O'	Connor	De t for Work 8 Pensions		orkin with Local Authorities		Male
llr Johnny	Denis			abinet Member for		Fundraising, Strategy, Community		Male
				ustomers	8 Communities	Relations and Governance

Fi ure2
ave Leisure Trust	Minimum Fre uenc		Method of Scrutin		Elected	Chair	No. ofTrustees
Full Board ofTrustees	5 per annum	including	Matters	Reserved	Mark Beaumont
	the AGM (although		for the	Board
	additional meetings		agreed	and in place
	may be called	as
	re uired
overnance Sub	4 per annum		Terms	of Reference	Mike	Price
I'ou			a reed	and in lace
Health and Safety Sub	4 per annum		Terms	of Reference	David	Hearn	1 (2 attend)
i'ou			a reed	and in lace
Finance and Audit Sub	3per annum		Terms	of Reference	Marcell	Miller	4 (3attend)
rou			a reed	and in lace
trategy Sub Group	4 Per annum		Terms	of Reference	Rolling	Chair
			a reed	and in lace

Fi ure 3:Com	and Attendances	Board Meetin s:
arne	Full Board (incl	Governance	Finance &Audit	Health	&	Strategy
	AGM)	Sub Group	Sub Group	Safety		Development
				Sub Grou		Sub Grou
Mark Beaumont	5/5	n/a	3/3	n/a		0/4
Chair)
Re istered' . 16/07/15
Mike Price	5/5	Chair 5/4	n/a	n/a		0/4
Re istered: 16/07/15
Phil Clarke	5/5	5/4	n/a	n/a		0/4
Re istered: 25/02/16
Kevin Ellis	5/5	n/a	3/3	n/a		0/4
Registered:
1/07/2018
Marcel Miller	5/5	n/a	Chair 3/3	n/a		0/4
Registered:
2/02/2018
lan Wisniewski	5/5	4/4	n/a	0/4		0/4
Registered;
6/05/2017
teve Saunders	0/5	n/a	0/3	0/4		0/4
Registered:
3/05/2019
Resigned:
4/07/2020
llr Laurence	5/5	n/a	n/a	3/4		0/4
'Connor
llr Johnn Denis	0/5	n/a	n/a	n/a		n/a
o-opted David	5/5	n/a	n/a	Chair 3/4		0/4
earn

Fi ure 4:Identified	Fi ure 4:Identified	Fi ure 4:Identified	Risks and Mana ement Procedures	Risks and Mana ement Procedures	Risks and Mana ement Procedures
Identified		Risk	Descri tion			How we mana ethe risk
ontractual		risk	Failure to perform	in terms of	the contract	Annual Service Plans, key objectives and
			to provide leisure	and recreational services		targets agreed with Lewes District Council
			to communities.			andother artnerseach ear.
perational		risk	Incurring losses as a result of		inadequate	Internal audit and external audit programme
			or failed internal and external		processes,	in place. Documented processes in place
			systems and human error or from external			for all financial controls and processes.
			events.
Regulatory		risk	Failure to comply	with relevant	regulations	Robust systems of internal and external
			and procedures,	for example	health and	audits and training by specialist training
			safety,			providers and third-party advisors with
						specialist knowledge of the sports and
						leisure sector,
People risk			Failure to ensure	we maintain	a	Comprehensive programme oftraining
			well-trained, competent and motivated			provided across the business including
			workforce,			annual assessment needs, competency
						checks and systems for behaviour and
						erformance monitorin .
Financial	risk		Failure to ensure	we maintain	adequate	Reserves policy regularly reviewed as part
			reserves to ensure the on-going financial			of the annual Board assessment in line with
			re uirements ofthe Charit are met.			the future needs ofthe business.
Reputational		risk	Failure to meet the expectations ofour key			Comprehensive partner relations
			stakeholders, our	partners, staff and		established with key stakeholder groups
			customers in the	performance	and	that have a direct or indirect influence on
			mana ement ofthe charit 's affairs,			the erformance ofthe business,

Identified	Risk	Descri	tion				How we mana ethe risk
Economic	Risk	Failure	to achieve	income levels	due	to	Regular review of pricing against
		increased competition or a reduction				in	competitors, price promotion	and
		levels	ofcustomers	disposable	income.		comprehensive systems for	gathering
							customer feedback

Phase		Activities			Location				0 enin
Phase	One	Gym and	group exercise		~	Downs Leisure Centre			25ii' July
		classes, outdoor and some			~	Lewes Leisure Centre (dry	activities
		Club activities		ifsocial		only)
		distancing	can	be	~	Seahaven Swim and Fitness		Centre (dry
		guaranteed	by	Club		activities only)
		Officials.			~	Peacehaven Leisure Centre
					~	Shakespeare Hall
					~	East Grinstead Sports Club
					~	Eastbourne Sports Park
					~	Hampden Park Sports Centre
					~	Sovereign Harbour Community		Centre
					~	Re enc Park Communit	Centre

Phase		Activities	Location	Location							0 enin
Phase Two		Gym and Group Exercise,		~	Shinewater		Sports Centre				1st Sept
		outdoor and some Club		~	Cavendish		Sport	Centre
		activities ifsocial distancing
		can be guaranteed by Club
		Officials,
Phase Three		Swimming, Learn to Swim		~	Lewes Leisure Centre						7th Sept
		(Wave Swim School) and		~	Seahaven		Swim	and Fitness Centre
		other A uatic Activities
After a period		ofdiscussion with relevant council	authorities,		due	to a number		of key maintenance		and social distancing
challenges	it was agreed that the small pools, including			Ringmer,		Seaford Head and Motcombe			would		remain closed.

Site		Pro'ect			Pur ose
Newhaven	Fort	Improve	visitor experience	through a series of projects	Increase	Visitor Numbers
		linked to;			Revenue	Generation
		~	Health, Safety and	Environment	Improve	Visitor Experience
		~	Visitor Attractions
		~	Restoration

							31.3,21	31,3,20
					FRS 102
					Pension
				Unrestricted	Adjustment	Restricted	Total	Total
				funds	Un-restricted	funds	funds	funds
			Notes	E	E	F		E
INCOME AND ENDOWMENTS
FROM
Donations and legacies			2			1,878,882	1,878,882
Charitable activities
Operation of Recreation		and		1,740,618		1,202,715	2,943,333	7,395,012
Leisure Sites
Investment income				3,927			3,927	3,480
Total				1,744,545		3,081,597	4,826, 142	7,398,492
EXPENDITURE ON
Charitable activities
Leisure Centre activity				2,732,231	200,000	2,019,866	4,952,097	8,030,957
NET INCOME/(EXPENDITURE)				(987,686)	(200,000)	1,061,731	(125,955)	(632,465)
Transfers between funds			19	~91,689)		91,689
Other recognised
gains/(losses)
Actuarial gains/(losses)		on
defined benefit schemes					~t, t88,000)		~t, t88,000)	1,545,000
Net movement in funds				(1,079,375)	(1,388,000)	1,153,420	(1,313,955)	912,535
RECONCILIATION OF FUNDS
Total funds brought	forward			1,170,078	(729,000)	39,286	480,364	(432,171)
TOTAL FUNDS CARRIED
FORWARD				90,703	~2,117,000)	1,192,706	~833,591)	480,364

			BALANCE	BALANCE	SHEET
			31	MARCH	2021
							31.3.21	31.3,20
				FRS 102
				Pension
			Unrestricted	Adjustment		Restricted	Total	Total
			funds	Un-restricted		funds	funds	funds
		Notes	F		F	F	E
FIXEDASSETS
Tangible assets		11	261,418			742,586	1,004,004	381,605
Investments		12	1				1	1
			261,419			742,586	1,004,005	381,606
CURRENT ASSETS
Stocks		13	1,046				1,046	8,166
Debtors		14	536,080			92,613	628,693	735,637
Cash at bank and	in hand		420,620			762,575	1,183,195	822,171
			957,746			855,188	1,812,934	1,565,974
CREDITORS
Amounts falling due within one
year		15	(628,462)			(405,068)	(1,033,530)	(738,216)
NET CURRENT ASSETS			329,284			450,120	779,404	827,758
TOTAL ASSETS	LESS
CURRENT LIABILITIES			590,703			1,192,706	1,783,409	1,209,364
CREDITORS
Amounts falling due after more
than one year		16	(500,000)				(500,000)
PENSION LIABILITY		20		(2,117,000)			(2,117,000)	(729,000)
NET ASSETS/(LIABILITIES)			90,703	~2,117,000)		1,192,706	~833,591)	480,364

	855,212
(2,026,297)	(414,134)
1,192,706	39,286
~833,5933	480,354

				CASH FLOW	STATEMENT
		FOR		THE YEAR ENDED 31 MARCH		2021
						31.3.21	31.3,20
				Notes
Cash flows from operating activities Cash generated from operations				1		569,804	~71,502)
Net cash provided by/(used		in) operating	activities			569,804	~71,502)
Cash flows from investing		activities
Purchase of tangible fixed assets						(712,707)	(135,079)
Interest received						3,927	3,480
Net cash used in investing	activities				~708,780)		~131,599)
Cash flows from financing		activities
Lewes Council Loan						500,000
Change in cash and cash		equivalents	in
the reporting period						361,024	(203,101)
Cash and cash equivalents		at the
beginning ofthe reporting		period				822,171	1,025,272
Cash and cash equivalents		at the end	of
the reporting period					1,183,195		822,171

	RECONCILIATION	OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES	OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES	OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES	OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES	OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES	OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES
						31,3.21	31,3,20
						E
	Net expenditure for the reporting				period (as per the Statement of
	Financial Activities)					(125,955)	(632,465)
	Adjustments for:
	Depreciation charges					90,308	257,411
	Interest received					(3,927)	(3,480)
	Impairment charges						86,540
	Decrease in stocks					7,120	15,811
	Decrease/(increase)	in debtors				106,944	(291,786)
	Increase in creditors					295,314	207,467
	Difference between	pension	charge		and cash contributions	200,000	289,000
	Net cash provided	by/(used		in) operations		569,804	~71,502)
2.	ANALYSIS OF CASH AND		CASH		EQUIVALENTS
						31,3.21	31,3.20
						E	E
	Cash in hand and at	bank				1,183,195	822,171
3.	ANALYSIS OF CHANGES		IN	NET	FUNDS
					At1.4,20	Cashf low	At31.3,21
					E	E	E
	Net cash
	Cash at bank and in	hand			822,171	361,024	1,183,195
	Debt
	Debts falling due after 1 year					~500,000)	~500,00D)
	Total				822,171	~138,976)	683,195

2.	DONATIONS	AND	LEGACIES	LEGACIES
						31.3,21	31.3,20
							E
	Job Retention	Scheme grants				1,878,882
3.	INVESTMENT	INCOME
						31,3.21	31,3.20
						E
	Deposit account interest					3,927	3,480
4.	INCOME FROM CHARITABLE ACTIVITIES
						31,3,21	31,3.20
						Leisure
						Centre	Total
						activity	activities
						F	E
	Leisure centre	income				766,610	6,210,292
	Management	Fee				100,841	237,196
	Joint Use Agreement		Income			411,026	387,887
	Grants					1,664,856	559,637
						2,943,333	7,385,012
	Grants received, included			in the above, are as follows:
						31,3.21	31.3.20
	Eastbourne County		Council			462,000	462,901
	Newhaven Fort Recovery					850,000
	Tackling Inequalities		Fund			5,000
	Adult Social Care Infection			Control	Fund	9,960
	NLRF (LDC)					181,542
	NLRF (EBC)					55,100
	Summer Events Programme					8,500
	Capital Community		Fund			141	141
	Big Lottery					92,613	56,085
	Other Grants						40,510
						1,664,856	559,637

		Direct	Staff	Support	2021	2020
		Costs	Costs	Costs	Total	Total
					Charitable	Charitable
					Activities	Activities
		E	E	E	E
Leisure	Centres	1,220, 626	3,487,718	243,753	4,952,097	8,030,957

Major comp	onents ofSupport Costs
		Year Ended	Year Ended
		31.3,21	31.3,20
		E	E
Governance	Costs	15,030	15,000
Overheads		142,530	481,822
Communications		51,004	66,577
Marketing		16,624	101,442
Consultancy		7,760	29,546
Motor 8 Travel		2,492	29,244
Legal 8 Professional		8,313	25,949
		243,753	749,580

				31,3.21	31.3.20
				E	E
Auditor's remuneration				15,030	15,000
Auditor's remuneration		under	provision		2,307
Depreciation	-owned	assets		90,308	257,411
Hire of plant	and machinery			85,207	141,039
Impairment	Losses				86,540

STAFF COSTS
	31.3.21	31.3,20
	E
Wages and salaries	3,032,087	4,070,428
Social security costs	167,716	199,068
Other pension costs	287,915	359,626
	3,487,718	4,828,122

	31.3.21	31.3.20
Senior management	11	10
Recreation Sites	132	160
Administration	10	10
Casual Staff	193	410
	346	590

			31.3.21	31,3,20
890,001	-	8100,000	1	1

2021	2020
1	1

COMPARATIVES FOR TH	E ST	ATEMENT OF	FINANCIAL ACTI	VITIES FRS 102
				Pension
			Unrestricted	Adjustment	Restricted	Total
			funds	Un-restricted	funds	funds
INCOME AND ENDOWMENTS		FROM
Charitable activities
Operation of Recreation and Leisure Sites			7,342,717		52,295	7,395,012
Investment income			3,480			3,480
Total			7,346,197		52,295	7,398,492
EXPENDITURE ON
Charitable activities
Leisure Centre activity			7,683,610	289,000	58,347	8,030,957
NET INCOME/(EXPENDITURE)			(337,413)	(289,000)	(6,052)	(632,465)
Other recognised gains/(losses)
Actuarial gains on defined	benefit schemes			1,545,000		1,545,000
Net movement in funds			(337,413)	1,256,000	(6,052)	912,535
RECONCILIATION OF FUNDS
Total funds brought forward			1,507,491	(1,985,000)	45,338	(432,171)
TOTAL FUNDS CARRIED	FORWARD		1,170,079	~729,000)	39,286	480,364

TANGIBLE FIXEDASSETS
	Improvements		Fixtures
	to	Plant and	and
	property	machinery	fittings
			E
COST
At 1 April 2020	1,346,233	146,611	8,671
Additions	711,157		1,550
At 31 March 2021	2,057,390	146,611	10,221
DEPRECIATION
At 1 April 2020	1,161,079	89,904	1,734
Charge for year	33,009	19,263	1,993
At 31 March 2021	1,194,088	109,167	3,727
NET BOOK VALUE
At 31 March 2021	863,302	37,444	6,494
At 31 March 2020	165,154	56,707	6,937
	Motor	Computer
	vehicles	equipment	Totals
		E	E
COST
At 1 April 2020	8,580	165,917	1,676,012
Additions			712,707
At 31 March 2021	8,580	165,917	2,388,719
DEPRECIATION
At 1 April 2020	4,290	37,400	1,294,407
Charge for year	2,860	33,183	90,308
At 31 March 2021	7,150	70,583	1,384,715
NET BOOK VALUE
At 31 March 2021	1,430	95,334	1,004,004
At 31 March 2020	4,290	128,517	381,605

FIXEDASSET INVESTMENTS
	Shares	in
	group
	undertakings
	E
MARKET VALUE
At 1 April 2020 and 31 March 2021
NET BOOK VALUE
At 31 March 2021		1
At 31 March 2020		1

	Class ofshare:	Class ofshare:	Class ofshare:	holding
	Ordinary			100
					31.3.21	31.3,20
	Aggregate	capital and reserves				1
13.	STOCKS
					31.3.21	31,3.20
					E
	Stocks				1,046	8,166
14.	DEBTORS
					31,3.21	31,3.20
	Amounts	falling due within one year;
	Trade debtors				134,707	259,694
	Amounts	owed by group undertakings			750	750
	Other debtors				8,455	829
	Prepayments		and accrued income		426,731	416,314
					570,643	677,587

14.	DEBTORS - continued
				31.3,21	31.3.20
	Amounts falling due after more than one year:
	Other debtors			58,050	58,050
	Aggregate amounts			628,683	735,637
15.	CREDITORS: AMOUNTS		FALLING DUE WITHIN ONE YEAR
				31,3,21	31,3,20
	Trade creditors			498,982	339,181
	Social security and other taxes			97,042	117,305
	Other creditors			133,984	27,445
	Accruals and deferred	income		303,522	254,285
				1,033,530	738,216
16.	CREDITORS: AMOUNTS		FALLING DUE AFTER MORE THAN ONE YEAR
				31,3.21	31.3.20
				E	E
	Other loans (see note	17)		500,000

	31.3,21	31,3,20
	E	E
Within one year	126.332	101,189
Between one and five years	109,502	159,241
	235,834	260,430

MOVEMENT IN FU	NDS
				Net	Transfers
				movement	between	At
			At 1.4,20	in funds	funds	31.3.21
				E	F
Unrestricted funds
General fund			314,866	(987,686)	763,523	90,703
Insurance & Risk Management			10,000		(10,000)
Information Technology			67,250		(67,250)
Buildings, Plant 8 Equipment			236,819		(236,819)
Community Fund			3,000		(3,000)
Development Fund			538,143		(538,143)
FRS 102 Pension	Adjustment
Un-restricted			~729,000)	~1,388,000)		~2,117,000)
			441,078	(2,375,686)	(91,689)	(2,026,297)
Restricted funds
Ancient History Centre			39,286	(7,857)		31,429
Newhaven Fort Recovery				726,833	91,689	818,522
Big Lottery Tackling Inequalities	Fund			92,613 5,000		92,613 5,000
Summer Events Programme				8,500		8,500
Adult Social Care Infection		Control Fund
National Leisure Recovery		Fund		236,642		236,642
			39,286	1,061,731	91,689	1,192,706
TOTAL FUNDS			480,364	~1,313,955)		~833,591)

			Incoming	Resources	Gains and	Movement
			resources	expended	losses	irt funds
			E	F
Unrestricted funds
General fund			1,744,545	(2,732,231)		(987,686)
FRS 102 Pension Adjustment
Un-restricted				~200,000)	~1,188,000)	~1,388,000)
			1,744,545	(2,932,231)	(1,188,000)	(2,375,686)
Restricted funds
Ancient History Centre				(7,857)		(7,857)
Heritage Cultural Recovery Fund Big Lottery Fund			850,000 92,613	(123,167)		726,833 92,613
Job Retention Scheme			1,878,882	(1,878,882)
Tackling Inequalities Fund Summer Events Programme			5,000 8,500			5,000 8,500
Adult Social Care Infection Control Fund			9,960	(9,960)
National Leisure Recovery Fund			236,642			236,642
			3,081,597	~2,019,866)		1,061,731
TOTAL FUNDS			4,826, 142	~4,952,097)	~1,188,000)	~1,313,955)
Comparatives for	movement	in funds
					Net
					movement	At
				At 1.4,19	in funds	31,3.20
Unrestricted funds
General fund				652,279	(337,413)	314,866
Insurance 8 Risk Management				10,000		10,000
Information Technology Buildings, Plant & Equipment Community Fund				67,250 236,819 3,000		67,250 236,819 3,000
Development Fund				538,143		538,143
FRS 102 Pension	Adjustment
Un-restricted				(1,985,000)	1,256,000	)729,000)
				(477,509)	918,587	441,078
Restricted funds
Ancient History Centre				45,338	(6,052)	39,286
TOTAL FUNDS				~432,171)	912,535	480,364

							Defined	benefit
							pension	plans
							31,3,21	31.3,20
							E	E
Current service cost							161,000	280,000
Net interest from	net defined		benefit
asset/liability							17,000	50,000
Admin cost							10,000
Past service cost							25,000	20,000
							213,000	350,000
Actual return on plan assets							191,000	221,000
Changes in the present		value	ofthe defined		benefit obligation	are as follows;
							Defined	benefit
							pension	plans
							31.3.21	31,3.20
							E	E
Opening defined	benefit	obligation					9,062,000	11,146,000
Current service cost							161,000	280,000
Past service cost							25,000	20,000
Contributions by	scheme participants						37,000	46,000
Interest cost							208,000	271,000
Benefits paid							(127,000)	(116,000)
Remeasurements:
Actuarial (gains)/losses		from	changes	in
demographic assumptions							(147,000)	(313,000)
Actuarial (gains)/losses		from	changes	in
financial assumptions Oblig other remeasurement							3,020,000 (1,430,000) ~106,000) ~842,000)
							12,133,000	9,062,000

			Defined	benefit
			pension	plans
			31.3.21	31.3.20
Opening fair	value ofscheme assets		8,333,000	9,161,000
Contributions	by employer		13,000	61,000
Contributions	by scheme participants		37,000	46,000
Expected return			191,000	221,000
Benefits paid			(127,000)	(116,000)
Assets no descr			(10,000)
Return on plan assets (excluding income)		interest	1,579,000 ~1,040,000)
			10,016,000	8,333,000

						Defined	benefit
						pension	plans
						31.3.21	31.3,20
						E
Actuarial	(gains)/losses		from changes		in
demographic		assumptions				147,000	313,000
Actuarial	(gains)/losses		from changes		in
financial	assumptions					(3,020,000)	1,430,000
Oblig other		remeasurement				106,000	842,000
Return on plan assets			(excluding	interest
income)						1,579,000	~1,040,000)
						~1,188,00D)	1,545,000

	Defined	benefit
	pension	plans
	31.3.21	31,3,20
Equities	75%	71%
Bonds	15%	17%
Property	8%	10%
Cash	2%	2%
	100%	100%

Sensitivity Analysis	Sensitivity Analysis
Changes in assumptions at 31 March		Approx% Increase to		Approximate	Monetary
2021		Employer	Liability	Amount (F000)
0,5%decrease	in Real Discount Rate		12.00%		1,108,000
0,5%increase	in Salary Increase Rate		1.50%		87,000
0.5%increase	in the Pension Increase Rate		11,00%		1,016,000