Registered number: 05485349 Charity number: 1113491
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BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST (A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
| CONTENTS | |
|---|---|
| Page | |
| Reference and administrative details of the charity, its trustees and advisers | 1 |
| Trustees' report | 2 - 6 |
| Independent auditor's report | 7 - 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Statement of cash flows | 13 |
| Notes to the financial statements | 14 - 24 |
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022
Trustees
Hazel Tilbury, Chairman Ian Walkom, Vice Chairman Andy Finn Richard Eldridge, Treasurer Steven Swatton Toni Shaw, Secretary Sarah Spencer (resigned 10 November 2021) Catherine Compton-Burnett, Council Nominee (appointed 27 May 2021)
Company registered number
05485349
Charity registered number
1113491
Registered office
The Aquadrome, Worting Road, Basingstoke, Hampshire, RG22 6PG
Senior management team
Jimmy Miller, Contract Manager (resigned April 2022) Alistair Argenti, Deputy Contract Manager (resigned January 2022) Steve Lawrence, Interim Contract Manager (appointed April 2022)
Independent auditor
Crowe U.K. LLP, Aquis House, 49-51 Blagrave Street, Reading, Berkshire, RG1 1PL
Bankers
Royal Bank of Scotland, 19-23 Winchester Street, Basingstoke, Hampshire, RG21 7EE
NatWest, 3 London Street, Basingstoke, Hampshire, RG21 7NS
Page 1
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022
The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Basingstoke & Deane Community Leisure Trust (the charity) for the year ended 31 March 2022 under the Companies Act 2006 and the Charities Act 2011. The relevant financial statements comply with the Companies Act 2006, the Charity’s governing document and the relevant Statement of Recommended Practice (the Charities SORP (FRS 102).
Structure, governance and management
CONSTITUTION
The charity is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 20 June 2005 as amended 13 May 2010.
The charity is constituted under a Memorandum of Association dated 20 June 2005 and is a registered charity number 1113491.
METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES
The original Trustees were recruited from an advertisement in the local paper, further Trustees were referred by existing Trustees. Trustees are selected to bring a broad range of relevant experience and skills to the Trust. A third of the Trustees are put up for re-election at the Annual General Meeting of the Trust.
POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES
All new Trustees will be provided with induction training by the Chairman of the Trust, and by the Contract Manager. Any new Trustees appointed in the period are given a full induction advising them of their obligations as a Trustee as well as a detailed explanation as to how the Trust and the agency agreement with Serco allow a full service to be provided. Basingstoke & Deane Borough Council provided training for the initial Trustees on their roles and responsibilities. It also provides a programme of training for staff and Trustees of voluntary organisations with Basingstoke Voluntary Action (BVA) which Trustees can attend as required.
ORGANISATIONAL STRUCTURE AND DECISION MAKING
Strategic decisions are made by the Board which meets at least quarterly. The day to day operation of the services that are provided is delegated to the Contract Manager. Regular reviews of operating performance are conducted by the Trust. In addition the Board has held dedicated conference sessions to review strategy and policy objectives.
PAY POLICY
The Trust has an agency agreement with Serco Leisure Operating Ltd. The pay policy for the senior salaried staff at Serco is set out by the Serco Management at the beginning of each financial year. An overall percentage review level is set and factors are taken into account including but not limited to performance, market rates and retention risk. Annual performance appraisals are carried out in accordance with a published structure and timetable.
RISK MANAGEMENT
Contractual and financial risks to the Trust are controlled through the principal contracts under which the Trust operates. The terms of leases under which the Trust operates, and the agency agreements with the operator, protect the financial position of the Trust. Serco our managing agent is responsible for any operating loss. Regular monitoring of operational matters is carried out by the local council in conjunction with the Trust to ensure agreed key performance standards are complied with.
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BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
The Trustees through their operating agent have carried out a risk assessment of their operations and will continue to monitor these on a regular basis. Principle risks are covered in detailed operating procedures and policies of our operating agent. We have reviewed these including their Risk Register and risk management plans and consider them robust. Biennial independent audits of Health and Safety arrangements are carried out and action plans maintained to address any concerns.
The Trust has reviewed its governance procedures and has instituted an annual cycle of reviews of all policies and procedures.
The Trust also recognises the need to keep current the skills and complement of Trustees.
REVIEW OF THE YEAR
Covid-19
The Trust has had a difficult year with the facilities having to close for a large part of the year due to the pandemic. Below is a summary of what was happening with the facilities:
Aquadrome & Tadley Health & Fitness Centre
April 12th 2021
Centre is re-opened to the public except for the lagoon pool which remained closed due to maintenance issues, despite being ready operationally and indoor classes which cannot restart until the middle of May.
May 18th 2021
Exercise classes were moved back inside, however social distancing still applies, restricting numbers.
July 19th 2021 All restrictions removed.
Golf Centre
March 29th 2021
All three elements of the facility open to the publich. Remains a casless site with booking systems in operation.
July 19th 2021
All restrictions removed.
Following a building survey, it was found that the flumes and flume tower at the Aquadrome needed some work to be done. After the initial work, it was found that the work required was more serious than was expected and asbestos had been found. There were also problems due to the Covid lockdown in obtaining materials and finding a contractor able to complete all the works. This has meant that the flumes have not opened since the end of the restrictions and is only due to open at the end of October 2022. The Undersea splash pool also had to be closed due to building work on the scaffolding above the pool.
The flumes are a significant attraction for children and families and this has meant that patronage and thereby income have not grown as had been hoped for the year following the removing of the Covid restrictions.
Objectives and Activities
POLICIES AND OBJECTIVES
The Trust has been established for the benefit of the Basingstoke and Deane Borough area to
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Provide, procure or assist in the provision of facilities and services for recreational, sporting or other l eisure time occupation in the interests of social welfare. Such facilities are provided to the public at large except that special facilities may be provided for persons who by reason of their youth, age, infirmity or disability, poverty or social or economic circumstances may have need of special facilities and services,
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Promote community participation in healthy recreation, and/or,
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BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
- Such other charitable purposes beneficial to the community consistent with the objectives above as the Trustees shall in their absolute discretion determine (the 'objects').
The Trust currently manages three facilities on behalf of the community, the Basingstoke Aquadrome, Golf Centre & Tadley Pool (since January known as the Tadley Health and Fitness Centre). The facilities at the Aquadrome include 2 swimming pools, a lagoon with flumes, rapids and splash pools, gym with a fitness area with 130 stations, teen gym suitable for young people from age 13 to 16 & a health suite. The Golf Centre provides a par 3, 9 hole golf course and driving range and adventure golf course. The Tadley Health & Fitness Centre provides a swimming pool, health suite and 45 station gym.
PUBLIC BENEFIT
The Trustees consider that the Charity satisfies the requirements of the Charities Act (2011) and its charitable purpose in that we provide access to healthy physical activities to the local community at a reasonable or subsidized cost. We also provide a variety of community initiatives/activities designed to encourage people from hard to reach groups and/or disadvantaged groups to access our facilities.
Following the reduction and removal of Covid restriction we reintroduced special sessions for schools including special schools, children and cardiac rehab, pre-hab and GP referrals. Free swimming was provided for people with disabilities and their carers, children aged 5 or under and talented athletes during opening periods. We provided an extensive programme of swimming lessons for both children and adults during the periods we were allowed to by Covid regulations.
The Trust’s pricing policy is, pricing for participation, to ensure that people are not excluded by high charges. We have concessionary prices at 60% of the full prices for children and young people aged 19 or under (5 and under still free) and adults aged 60 or over. We have a special low income price of £1.70 per casual session or 20% of the full rate for people who are in receipt of one or more of the following: Universal Credit, Income Support, Housing Benefit, Council Tax Benefit, Income Based Job Seekers allowance, and Pensions Credit.
ACHIEVEMENTS OF OBJECTIVES
Our key objectives were affected by the closure of the flumes and the reticence of some groups of customers to feel comfortable to come out again following the Covid pandemic. Especially those who had to shield due to age or medical condition.
Objectives 2021/22
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To increase the patronage of our facilities. We did increase patronage compared to the previous year however this is not surprising as the facilities were close for a significant part of the previous year.
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To re-introduce our community initiatives. We gradually introduced our initiatives as we found suficient customers who wished to participate. The first to return was the cardiac rehab which started in May 21, followed by the sessions for adults with mental health issues in September 21 and exercise referral in December 21. We started a new Steady & Strong (falls prevention) course in March 22.
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To improve the financial viability of the facilities. There has not been the fast recovery that we hoped due to the closure of the flumes and the subsequent slow return of customers. We have had increased costs due to re-initiating some service contracts and maintenance regimes post COVID.
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To improve the health and wellbeing of the people of Basingstoke & Deane. Many of our customers have welcomed the reopening of the facilities, we opened as soon as we were allowed to with the removal of Government restrictions. However due to social distancing we had to limited the number accessing facilities until this was removed in July 21. We used this slack period to train staff in Cancer rehabilitation and obesity & diabetes and will be offering these courses next year.
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To work with Basingstoke and Deane Borough Council to ensure that our facilities at the forefront of the Borough's policies for health and wellbeing. Again, activity on this has been slow due to the after effects of Covid however we are making plans to work closely with the Council in 22/23.
FINANCIAL REVIEW
The Trust would like to thank Basingstoke and Deane Borough Council and our agent Serco Leisure for the support we have been given during a challenging period.
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BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
The overall result of a deficit of £40,382 for the year is reflective of the support received from national and local government during the year and whilst the accounts are a marked improvement on the previous year, the Trustees are conscious that the approach to retaining and attracting new members needs to be both dynamic and innovative in the face of varied competition in the Borough.
RESERVES POLICY
The trust has an agency agreement with Serco Leisure Operating Ltd for the operation of the services provided by the Trust; this agreement makes Serco liable for any deficit in the operating costs protecting the trust and its services and employees. The policy of the Trust is to have at all times sufficient reserves to meet obligations not covered by this agreement. At the end of the reporting period, the Trust held reserves of £181,688, no amount of these reserves is restricted. Of this amount, £20,000 is held as a general reserve to service any unforeseen requirements. The balance is reviewed regularly and has historically been used to contribute to facility improvements and upgrades either in part or entirety. The balance is expected to be committed to new or existing projects in the 12 to 18 month period following the financial year end. There are no reserves that can only be realised by disposing of a fixed asset or programme related investment.
PLANS FOR THE FUTURE
Trust Objectives 2022/23:
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To increase the patronage of our facilities
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To re-introduce our community initiatives
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To improve the financial viability of the facilities
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To improve the health and wellbeing of the people of Basingstoke & Deane
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To work with Basingstoke and Deane Borough Council to ensure that our facilities at the forefront of the Borough's policies for health and wellbeing.
We will work closely with the Council and local health providers, including Social Prescribers, to introduce new specialist provision for targeted groups as well as promoting our existing provision. New activities planned include Cancer rehabillation and courses for those who are obese and/or have diabetes. We will also look to reintroduce our NHS health checks and work to help with any new health hubs which are established in the area.
Enhancements planned for 2022/23 include the refurbishment of the Tadley Health Suite, re-introduction of the café at Aquadrome, 25m and 20m pool refurbishments and additional Lagoon enhancements.
GOING CONCERN
After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
DISCLOSURE OF INFORMATION TO AUDITORS
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and;
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.
Page 5
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
AUDITORS
Crowe UK LLP have indicated their willingness to continue in office. The Designated Trustees will propose a motion re-appointing the auditors at a meeting of the Trustees.
In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report, incorporating the Strategic report, was approved by the Trustees, in their capacity as company directors, on 19 December 2022 and signed on their behalf by:
Richard Eldridge Treasurer
Page 6
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
Opinion
We have audited the financial statements of Basingstoke & Deane Community Leisure Trust (the 'charitable company') for the year ended 31 March 2022 set out on pages 11 to 24. 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:
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give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charity'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.
Page 7
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
Other information
The Trustees are responsible for the other information. 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 we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 or a material misstatement of the other information. 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, 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 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.
Page 8
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
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. 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 organisation 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 was Financial Reporting Standard 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 organisation’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the organisation for fraud.
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.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases and reading minutes of meetings.
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 non-compliance 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 noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
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.
Page 9
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
Use of our report
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's 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 and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Alastair Lyon (senior statutory auditor)
for and on behalf of
Crowe U.K. LLP
Statutory Auditor
Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL Date: 19 December 2022
Page 10
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022
| Unrestricted funds Note 2022 £ Income from: Charitable activities 4 3,039,590 Investments - Other income 3 744,584 Total income 3,784,174 Expenditure on: Charitable activities 3,824,556 Total expenditure 5 3,824,556 Net movement in funds (40,382) Reconciliation of funds: Total funds brought forward 222,070 Total funds carried forward 181,688 |
Restricted funds 2022 £ - - 21,906 21,906 21,906 21,906 - - - |
Total funds 2022 £ 3,039,590 - 766,490 3,806,080 3,846,462 3,846,462 (40,382) 222,070 181,688 |
Total funds 2021 £ 1,528,800 48 1,319,436 2,848,284 2,929,174 2,929,174 (80,890) 302,960 222,070 |
|---|---|---|---|
The notes on pages 14 to 24 form part of these financial statements.
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BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee) REGISTERED NUMBER: 05485349
BALANCE SHEET AS AT 31 MARCH 2022
| Note Fixed assets Tangible assets 8 Current assets Stocks 9 Debtors 10 Cash at bank and in hand Creditors:amounts falling due within one year 11 Net current assets Net assets Charity Funds Unrestricted funds 12 Total funds |
£ 9,601 365,437 512,505 887,543 (768,023) |
2022 £ 62,168 119,520 181,688 181,688 181,688 |
£ 9,001 875,970 164,382 1,049,353 (955,413) |
2021 £ 128,130 93,940 |
|---|---|---|---|---|
| 222,070 | ||||
| 222,070 | ||||
| 222,070 |
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A- small entities.
The financial statements were approved and authorised for issue by the Trustees on 19 December 2022 and signed on their behalf, by:
Richard Eldridge, Treasurer
The notes on pages 14 to 24 form part of these financial statements.
Page 12
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022
| Note Cash flows from operating activities Net cash provided by/(used in) operating activities 14 Cash flows from investing activities: Interest Purchase of tangible fixed assets Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents brought forward Cash and cash equivalents carried forward 15 |
2022 £ 453,870 - (10,194) (10,194) 443,676 68,829 512,505 |
2021 £ (428,643) 48 (11,003) (10,955) (439,598) 508,427 68,829 |
|---|---|---|
The notes on pages 14 to 24 form part of these financial statements.
Page 13
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. Accounting Policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basingstoke & Deane Community Leisure Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
Basingstoke & Deane Community Leisure Trust constitutes a public benefit entity as defined by FRS 102.
1.2 Company status
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
1.3 Going concern
In their assessment of going concern the Trustees have considered the current impact on the business as a result of the Covid-19 virus and any lasting effects it may have on patronage at the Trust’s facilities.
The Trustees continue to regularly update the annual forecasts and cash flows based on the latest forecast information that the business has available. It has undertaken a range of actions to ensure that it has sufficient capacity in place to meet operating cash requirements for the foreseeable future. These actions include regular dialogue with Basingstoke & Deane Borough Council on the availability of financial support where required and ensuring that all costs are closely monitored.
The Trustees meet regularly and as at the date of the signing of these accounts the information used to forecast the future viability is based on a set of up to date robust forecast of revenue and patronage.
Having regard to the above, the Trustees believe it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
Page 14
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. Accounting Policies (continued)
1.4 Income
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees' report for more information about their contribution.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the company which is the amount the company would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Grants are accounted under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in the statement of comprehensive income in the same period as the related expenditure.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
Page 15
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. Accounting Policies (continued)
1.6 Tangible fixed assets and depreciation
All assets, with the exception of leasehold improvements, costing more than £1,000 are capitalised.
Leasehold improvements are not capitalised as all facilities are owned by Basingstoke and Deane Borough Council and, therefore, any benefit derived from the improvements is not enjoyed by the Trust.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Fixtures and fittings
3 - 5 years straight line
1.7 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.
1.8 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
1.9 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.10 Cash at Bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.11 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
Page 16
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. Accounting Policies (continued)
1.12 Financial instruments
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.13 Taxation
The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
1.14 Pensions
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
1.15 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
1.16 Critical accounting estimates and areas of judgment
In the application of the charity’s accounting policies, which are described in note 1. Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.
The trustees consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty.
Page 17
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
2. Net income/(expenditure)
This is stated after charging:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets: | ||
| - owned by the charity | 76,156 | 76,777 |
| Auditor's remuneration - audit | 12,380 | 11,790 |
3. Other income
| Unrestricted funds 2022 £ Grants receivable 744,584 Government grants receivable - CJRS - 744,584 Total 2021 1,305,875 Income from charitable activities Unrestricted funds 2022 £ Leisure centre and pool expenses 3,039,590 Total 2021 1,528,800 |
Restricted funds 2022 £ 21,906 - 21,906 13,561 Restricted funds 2022 £ - - |
Total funds 2022 £ 766,490 - 766,490 1,319,436 Total funds 2022 £ 3,039,590 1,528,800 |
Total funds 2021 £ 623,407 696,029 1,319,436 |
|---|---|---|---|
| Total funds 2021 £ 1,528,800 |
|||
4. Income from charitable activities
Page 18
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
5. Analysis of Expenditure by expenditure type
| Leisure centre and pool expenses Total 2021 |
Staff costs Depreciation Other costs 2022 £ 2022 £ 2022 £ 1,525,271 76,156 2,245,035 1,389,078 76,778 1,463,318 |
Total 2022 £ 3,846,462 2,929,174 |
Total 2021 £ 2,929,174 |
|---|---|---|---|
Included within other costs are governance costs of £21,906 (2021: £ 13,561).
6. Staff costs
Staff costs were as follows:
| Wages and salaries Social security costs Other pension costs |
2022 £ 1,412,464 83,039 29,768 1,525,271 |
2021 £ 1,280,619 83,728 24,731 |
|---|---|---|
| 1,389,078 |
The average number of persons employed by the company during the year was as follows:
| 2022 | 2021 |
|---|---|
| No. | No. |
| 145 | 164 |
No employee received remuneration amounting to more than £60,000 in either year.
During the year remuneration and benefits received by key management personnel totalled £101,679 (2021: £95,110) .
7. Trustees' remuneration
During the year, no Trustees received any remuneration (2021: £NIL).
Page 19
(A company limited by guarantee)
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
8. Tangible fixed assets
| Cost At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Fixtures and fittings £ 661,533 10,194 |
|---|---|
| 671,727 | |
| 533,403 76,156 |
|
| 609,559 | |
| 62,168 | |
| 128,130 |
| 9. Stocks Finished goods and goods for resale 10. Debtors Trade debtors Other debtors Prepayments and accrued income |
2022 £ 9,601 2022 £ 301,342 24,710 39,385 365,437 |
2021 £ 9,001 |
|---|---|---|
| 2021 £ 750,281 111,048 14,641 |
||
| 875,970 |
Page 20
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
11. Creditors: Amounts falling due within one year
| Creditors: Amounts falling due within one year | ||
|---|---|---|
| Bank overdraft Trade creditors Other taxation and social security Accruals and deferred income |
2022 £ - 46,618 30,462 690,943 768,023 |
2021 £ 95,553 7,697 13,683 838,480 |
| 955,413 |
Deferred income totalling £94,519 (2021: £102,851) represents membership income received in advance.
Page 21
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
12. Statement of funds
Statement of funds - current year
| Balance at 1 April 2021 £ Unrestricted funds General Funds 246,485 Other General funds (24,415) 222,070 Restricted funds Other Restricted funds - Total of funds 222,070 |
Income Expenditure £ £ - - 3,784,174 (3,824,556) 3,784,174 (3,824,556) 21,906 (21,906) 3,806,080 (3,846,462) |
Balance at 31 March 2022 £ 246,485 (64,797) 181,688 - 181,688 |
|---|---|---|
The restricted fund is made up of a grant received from Basingstoke and Deane Borough Council and represents monies to be spent on annual governance costs and the legal costs associated with the management contract.
Statement of funds - prior year
| General Funds Restricted funds Council grants Total of funds |
Balance at 1 April 2020 £ 302,960 - 302,960 |
Income £ 2,859,138 13,561 2,872,699 |
Expenditure £ (2,915,613) (13,561) (2,929,174) |
Balance at 31 March 2021 £ 246,485 - 246,485 |
|---|---|---|---|---|
Page 22
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
13. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds Restricted funds 2022 £ 2022 £ Tangible fixed assets 62,168 - Current assets 887,543 - Creditors due within one year (768,023) - 181,688 - Analysis of net assets between funds - prior year Unrestricted funds Restricted funds 2021 £ 2021 £ Tangible fixed assets 128,130 - Current assets 1,049,353 - Creditors due within one year (955,413) - 222,070 - 14. Reconciliation of net movement in funds to net cash flow from operating activities 2022 £ Net expenditure for the year (as per Statement of Financial Activities) (40,382) Adjustment for: Depreciation charges 76,156 Dividends, interest and rents from investments - Decrease / (increase) in stocks (600) Decrease/(increase) in debtors 510,533 Increase / (decrease) in creditors (91,837) Net cash provided by/(used in) operating activities 453,870 |
Total funds 2022 £ 62,168 887,543 (768,023) 181,688 Total funds 2021 £ 128,130 1,049,353 (955,413) 222,070 2021 £ (80,890) 76,777 (48) 10,265 (517,830) 83,083 (428,643) |
|
|---|---|---|
Page 23
BASINGSTOKE & DEANE COMMUNITY LEISURE TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
15. Analysis of cash and cash equivalents
| Cash in hand Overdraft Total |
2022 £ 512,505 - 512,505 |
2021 £ 164,382 (95,553) 68,829 |
|---|---|---|
16. Pension commitments
The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £29,768 (2021: £24,731) .
17. Related party transactions
Renumeration to key management personal has been disclosed in note 6. There were no other related party transactions in the period.
18. Controlling party
The charity is considered to be controlled by its board of trustees.
Page 24