**A N N U A L R E P O R T & F I N A N C I A L S T A T E M E N T S 2 0 2 0 / 2 1** 








01 02 COMPANY CHAIRMAN’S STATEMENT INFORMATION 

03 04 TRUSTEES’ REPORT AUDITOR’S (INCLUDING REPORT STRATEGIC REPORT) 

05 06 FINANCIAL NOTES TO THE STATEMENTS FINANCIAL STATEMENTS 







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Martin Solder 


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4.77% 0.84% LOWER (mean) HIGHER (median) 



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42.0% 58.0% 46.0% 54.0% MEN WOMEN MEN WOMEN 




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## 1 December 2021 












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05
FINANCIAL
STATEMENTS

## **Statement of Financial Activities Including Income and Expenditure Account - Year ended  31ST MARCH 2021** 

||||**Unrestricted Funds**|**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**<br>**Funds**|**Total**<br>**2020/21**|**Total**<br>**2020/21**|Total<br>2019/20|
|---|---|---|---|---|---|---|---|---|---|
||||General<br>Funds||Designated<br>Funds|||||
|||**Note**|**£000’s**||**£000’s**|**£000’s**|**000’s**||£000’s|
||**Income and endowments**<br>**from:**|||||||||
|||||||||||
||Charitable Activities|||||||||
||●Direct Services Income|**2**|3,804||-|-|**3,804**||9,413|
||●Grants and Contributions||4,687||-|1,355|**6042**||845|
||●Management Fee||8,180||-|1,140|**9,320**||9,789|
||Investments||-||-|-|**-**||9|
||**Total**||**16,671**||-|**2,495**|**19,166**||20,056|
|||||||||||
||**Expenditure on:**|||||||||
||Charitable Activities|||||||||
||●Culture and Libraries||5,835||381|3,031||**9,247**|10,178|
||●Parks and Open Spaces||3,810||127|323||**4,260**|4,249|
||●Sport and Leisure||4,897||39|361||**5,297**|6,668|
||**Total**|**3**|**14,542**||**547**|**3,715**||**18,804**|21,095|
|||||||||||
||**Net Income/(Expenditure)**<br>**before Transfers**||2,129||(547)|(1,220)||<br>**362**|(1,039)|
||**Transfers between funds**|**17,18**|(1,951)||-|1,951||**-**|-|
|||||||||||
|||||||||||
||**Net Income/(Expenditure)**<br>**after Transfers**||**178**||**(547)**|**731**||**362**|(1,039)|
||**Other Recognised**<br>**Gains/Losses**|||||||||
||Actuarial (Losses)/Gains on<br>Defined Benefit Pension<br>Schemes|**16**|-||(3,903)|-||**(3,903)**|1,629|
|||||||||||
||**Net Movement in Funds**||**178**||**(4,450)**|**731**||**(3,541)**|590|
||**Reconciliation of Funds**|||||||||
||**Total Funds Brought Forward**||403||(8,289)|810||**(7,076)**|(7,666)|
||**Total Funds c/fwd**||**581**||**(12,739)**|**1,541**||**(10,617)**|(7,076)|



44 



## **- Balance sheet (AS AT 31ST MARCH 2021)** 

|||**31st March 2021**|**31st March 2021**|**31st March 2020**|**31st March 2020**|
|---|---|---|---|---|---|
||**Note**|**£000’s**|**£000’s**|£000’s|£000’s|
|**Fixed Assets**||||||
|Tangible Fixed Assets|**12**||**1,029**||887|
|**Current Assets**||||||
|Stocks||**-**||30||
|Debtors/ Prepayments|**14**|**1,328**||985||
|Cash at Bank and in Hand||**3,363**||2,128||
|**Total Current Assets**||**4,691**||3,143||
|**Liabilities**||||||
|Creditors: Amounts Falling Due Within One Year|**15**|**3,598**||2,817||
|**Net Current Assets**|||**1,093**||326|
|||||||
|**Total Assets Less Current Liabilities**|||**2,122**||1,213|
|||||||
|Provision for Liabilities: Defined Benefit Pension<br>Scheme|**16**||**(12,739)**||(8,289)|
|||||||
|**Net Assets**|||**(10,617)**|(7,076)|(7,076)|
|||||||
|**The Funds of the Charity**||||||
|General Fund|**17**||**581**||403|
|Designated Funds|**17**||**-**||-|
|Designated Pension Reserve|**17**||**(12,739)**||(8,289)|
|Restricted Funds|**18**||**1,541**||810|
||||**(10,617)**||(7,076)|



The Financial Statements were approved by the Board of Trustees and authorised for issue on 30[th] November 2021 and signed on their behalf by: 


**----- Start of picture text -----**<br>
_______________________  _______________________<br>**----- End of picture text -----**<br>


## **Martin Solder Trustee** 

## **Brian Spinks Trustee** 

45 



## **- Cash Flow Statement (YEAR END 31ST MARCH 2021)** 

|||**2020/21**|2019/20|
|---|---|---|---|
|||**£000’s**|£000’s|
|**Cash Flow from Operating Activities**||1,764|(3,094)|
|**Cash Flow from Investing Activities**||||
|●Interest Received||1|9|
|●Capital expenditure||(530)|(415)|
|**Increase (Decrease) in Cash in Year**||**1,235**|3,500|
|||||
|**Note i - Reconciliation of Cash Flow**<br>**from Operating Activities**||||
|||||
|Net Incoming Resources after Transfers||**362**|(1,039)|
|Defined Benefit Pension Charge||**1,149**|1,553|
|Defined Benefit Pension Contributions Paid||**(602)**|(739)|
|Interest  Received||**(1)**|(9)|
|Decrease (Increase) in Stock||**30**|(8)|
|Decrease (Increase) in Debtors and Prepayments||**(343)**|(362)|
|Increase (Decrease) in Creditors||**781**|(2,724)|
|Depreciation||**388**|234|
|**Net Cash Flow from Operating Activities**||**1,764**|(3,094)|
|||||
||**31st March**<br>**2020**|**Movement in**<br>**Year**|**31st March**<br>**2021**|
||**£000’s**|**£000’s**|**£000’s**|
|**Note ii - Analysis of Cash and Cash Equivalents**||||
|||||
|Cash at Bank and In Hand|121|(38)|**83**|
|Short-Term Deposits|2,007|1,273|**3,280**|
|**Total**|**2,128**|**1,235**|<br>**3,363**|
|||||
|||**2020/21**<br>**£000’s**|2019/20<br>£000’s|
|**Note iii - Reconciliation of Cash Flow**<br>**to Movement in Net Funds**||||
|||||
|Increase (Decrease) in Cash in the Year||**1,235**|(3,500)|
|Movement in Net Funds in the Year||**1,235**|(3,500)|
|Opening Net Funds as at 1st April||**2,128**|5,628|
|**Closing Net Funds as at 31st March**||**3,363**|2,128|



46 



06
NOTES
TO THE
FINANCIAL
STATEMENTS

## **Note 1 - Accounting Policies** 

## **Basis of Accounting** 

These Financial Statements have been prepared under the historical cost convention and in accordance with the Charities Statement of Recommended Practice (SORP) (FRS102) (effective from 1st January 2015), which is the applicable Financial Reporting Standard in the UK and Republic of Ireland and the Companies Act 2006. Vision is a Public Benefit Entity as defined by FRS102. 

## **Going Concern** 

The charity has a contract with the Council which has been extended to 2026. Although the balance sheet shows a net liabilities position, this is mainly related to the pension scheme liability of £12,739k (2020: £8,289) and under the funding agreement contract with the Council, it will meet ongoing pension obligations. The Covid-19 pandemic has significantly affected the operations of the charity during 2020/21 with many facilities being closed during the periods of lockdown. The charity has furloughed staff during these periods and  has also successfully secured grants targeted at the leisure and arts sectors. The trustees have prepared forecast for the 12 months following approval of the financial statements under various scenarios.  These indicate that the charity will be able to settle its debts as they fall due in the 12 months following approval of the financial statements and therefore the trustees continue to adopt the going concern basis in the preparation of these financial statements. 

## **Estimates and Judgements** 

In applying the Accounting Policies, judgements, estimates and other assumptions are required to be made regarding the carrying amount of assets and liabilities, where precise information is not available. Significant examples include the estimates and assumptions that underlie the Pensions data used within the Statements, whereby the professional services of a qualified actuary are commissioned. 

The carrying values of Fixed Assets also rely on a number of assumptions, including the Useful Economic Life (UEL) of individual assets, with judgements based on historical experience. Actual results may differ from estimates. 

Outstanding debt is reviewed annually for its collectability based on experience and specific intelligence, with adjustments made accordingly to a Bad Debt Provision, to determine the carrying value of Debtors on the Balance Sheet. 

Estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the accounting period in which the estimate is revised where the revision only affects that period, or in the period of the revision and future periods where the revision affects both current and future periods. 

## **Income from Charitable Activities** 

Income is received from three major sources: 

## **Direct Services Income** 

This is income generated by the facilities managed by Vision in the form of fees and charges and are recognised as services delivered. All direct services income is credited to the Statement of Financial Activities on an accrual basis. Income for annual memberships is accounted for over the membership year, with amounts relating to future accounting periods being deferred and held on the Balance Sheet as Deferred Income. 

47 



## **Management Fee** 

An annual Management Fee is received from the London Borough of Redbridge comprising two components – “Restricted Funds” and “Unrestricted Funds”. Restricted Funds mainly relate to the Maintenance, Repairs and Renewals Fund (MRR), which is used for spending on assets used by the Trust, but remaining in the ownership of the London Borough of Redbridge. 

## **Grants and Other Contributions** 

Grants and other contributions are recognised in full in the Statement of Financial Activities in the year in which they are received, or in the case of grants with associated eligibility criteria, in the year in which those criteria are satisfied.   Where entitlement to grants receivable is dependant upon conditions within the charity’s control, the income is recognised when there is sufficient evidence that conditions will be met.   Where there is uncertainty as to whether the charity can meet such conditions, recognition of the incoming resource is deferred. 

## **Expenditure on Charitable Activities** 

Expenditure is accounted for in the Statement of Financial Activities on an accruals basis, being recognised in the year in which it is incurred. 

Expenditure is incurred on the costs associated with the organisation’s charitable activities. Charitable activities expenditure can be further sub-divided as follows: 

## **Direct Services Expenditure** 

Expenses incurred on the defined charitable purpose of the Trust, including staff costs attributable to the activity and management of the facilities. 

## **Grant Funded Activities** 

Expenditure related to activities where the associated income has been received in the form of a grant. 

## **Other Expenditure** 

Relates to support costs such as general administration, management and irrecoverable Value Added Tax (VAT). 

## **Allocation and Apportionment of Support Costs** 

Support costs are allocated to operational services on a basis most consistent with the use of resources. 

## **Financial Instruments** 

Vision only has financial assets and financial liabilities which are classified as “Basic Financial Instruments” under Section 11 of FRS102. The financial instruments – specifically Bank Deposits, Cash, Creditors and Debtors – are initially recognised at their transaction value and are subsequently measured at amortised cost, where applicable. 

## **Tangible Fixed Assets** 

The land and buildings at the centres managed by Vision are effectively leased as part of the contract with the Council, but the Council retains the ultimate risks and rewards of these assets.   Accordingly, the access Vision has for these assets is to enable it to operate the activities and deliver the public services it is contracted to provide.   Vision does not own these assets and therefore they are not recognised in the balance sheet.   Where Vision incurs expenditure of a capital nature in relation to these buildings abo ve the “De Minimis” level they are capitalised and depreciated to the end of the contract as set out below. 

48 



## **Vision Fixed Assets** 

Tangible Fixed Assets are held for use in the supply of services and are expected to be used for more than one financial year. Expenditure on the acquisition, creation or enhancement of such assets is treated as capital provided that the future economic benefits or service potential will flow to Vision. Expenditure that maintains but does not add to an assets potential (i.e. repairs and maintenance) is charged as an expense as it is incurred. 

Expenditure which meets the definition of capital, but falls below a pre-set minimum level in value (the “De Minimis” level), is charged as an expense in the year it is incurred. The De Minimis level for Vision is £7000. Tangible Fixed Assets are stated at cost (including Irrecoverable VAT, net of Depreciation and any provision for Impairment). All assets accounted for by Vision are directly owned by the Trust. 

## • **Depreciation** 

Depreciation is provided on all Tangible Fixed Assets based on the ‘straight line’ method over their Estimated Useful Life (EUL), with no charge made in the year of acquisition, but with a full charge made in the year of disposal. Annual Depreciation charges are as follows. 

|**Asset Type**|**Annual Depreciation Charge**|
|---|---|
|**Building works**|pro rata to the end of the current<br>contract*|
|**Equipment and**<br>**Motor Vehicles**|20 to 33.3% per annum|
|**Furniture**|10% per annum|
|**Refurbishments &**<br>**Fittings**|20% per annum|



_*. Annual Depreciation charges ensure such Assets are fully depreciated upon the expiry of the management agreement._ 

Tangible Fixed Assets, including fully depreciated assets, will continue to be held on the Balance Sheet until such time that they are abandoned, scrapped or sold, at which point they will be written out, with any balance being charged as a revenue expense. 

## • **Impairment** 

Impairment reviews are carried out where there is an indication that the recoverable amount of  a Tangible Fixed Asset may be lower than its Balance Sheet value, and (if confirmed) are written down to the recoverable  amount. 

## **Leased Assets** 

Leases are classified as Finance leases unless they meet the criteria of an Operating lease. The characteristic of a Finance lease is that the lease arrangements transfer substantially all of the risks and rewards of ownership to the lessee. 

Assets held on Finance leases are included within Fixed Assets on the Balance Sheet with a corresponding Creditor established for future lease payments. The asset is depreciated (with a corresponding charge to revenue) over the term of the lease. In addition, interest costs are charged directly to revenue. Operating 

49 



lease payments are charged to the cost of service on a straight line basis over the term of the lease. 

## **Stocks** 

Stock is included on the Balance Sheet at the lower of cost or estimated selling price, less costs to complete and sell. 

## **Pension Costs** 

Employee members of the Local Government Pension Scheme (LGPS) that transferred from the London Borough of Redbridge to the Trust (under “TUPE” regulations) are entitled to remain within the scheme (or join if they have not already done so). The LGPS is a defined benefit scheme which is funded by both employee and employer contributions. An annual update (supplemented by a full triennial valuation) is provided by the scheme’s actuary, which sets out Vision’s share of the estimated assets and liabilities. In accordance with Financial Reporting Standard 102 (FRS102), annual movements are reflected in the Income and Expenditure Account with net balances reflected in the Balance Sheet. 

In addition, Vision also has employees that are members of three other pension schemes as follows: 

- **Teachers’ Pension Scheme (TPS)** 

   - A number of employees are members of the TPS, which is administered by the Department of Education. The scheme provides members with specified benefits upon their retirement and Vision contributes towards the associated costs alongside employee members. The scheme is technically a defined benefit scheme. However, the scheme is unfunded and it is not possible to determine – with sufficient accuracy for accounting purposes – Vision’s share of the underlying financial position and performance. Consequently the TPS is accounted for on the same basis as a defined contribution scheme. 

- **Friends Provident (“Stakeholder Pension”)** 

   - A small number of employees, who were not eligible for LGPS membership, were enrolled on a defined contribution scheme administered by Friends Provident. The cost of the associated retirement benefits is met through ‘matched’ employee and employer contributions. Following a change in legislation on workplace pensions which has seen the introduction of automatic enrolment, membership of the scheme has declined as has the option to transfer to a scheme administered by Friends Life. 

- 

## **Friends Life (“Group Pension Plan”)** 

Subject to an opt out clause (following automatic enrolment) and other qualifying criteria, existing employees not already in a pension scheme and new starters are systematically being enrolled into a defined contribution scheme administered by Friends Life. The cost of the associated retirement benefits is met through a combination of employee and employer contributions. 

Employer contributions to the three defined contribution schemes described above are reflected in the Income and Expenditure Account only. 

## **Fund Accounting** 

The funds of the Trust fall into two main types: 

- Unrestricted Funds are available to use to further the purposes of the Trust. Unrestricted Funds may be set aside to fund particular activities at the discretion of the Trust. 

- Restricted Funds are held by the Trust for specific purposes, determined by the donor. The specified purposes are consistent with Vision’s overall objectives. 

50 



## **Notes to Financial Statements** 

## **(YEAR ENDED 31ST MARCH 2021)** 

## **Note 2 - Direct Services Income** 

|**(YEARENDED31STMARCH2021)**<br> **Note 2- Direct Services Income**|||||
|---|---|---|---|---|
||**Unrestricted**<br>**Funds**|**Restricted**<br>**Funds**|**Total**<br>**2020/21**|Total<br>2019/20|
||**£000’s**|**£000’s**|**£000’s**|£000’s|
|Culture and Libraries|1,820|-|1,820|3,062|
|Parks and Open Spaces|1,065|-|1,065|1,064|
|Sport and Leisure|919|-|919|5,287|
|**Total**|**3,804**|-|**3,804**|9,413|



## **Note 3 - Resources Expended** 

||**Direct**<br>**Expenditure**|**Support**<br>**Costs**|**Deferred**<br>**Benefit**<br>**Pension**|**Total**<br>**2020/21**|Total<br>2018/19|
|---|---|---|---|---|---|
||**£000’s**|**£000’s**|**£000’s**|**£000’s**|£000’s|
|**Unrestricted Expenditure**||||||
|Culture and Libraries|5,296|539|381|6,216|6,962|
|Parks and Open Spaces|3,572|239|127|3,937|3,826|
|Sport and Leisure|4,690|207|39|4,936|6,017|
|**Sub Total**|**13,558**|**985**|**547**|**15,089**|16,805|
|||||||
|**Restricted Expenditure**||||||
|Culture and Libraries|3,031|-|-|3,031|3,216|
|Parks and Open Spaces|323|-|-|323|423|
|Sport and Leisure|361|-|-|361|651|
|**Sub Total**|**3,715**|-|-|**3,715**|4,290|
|**Total Resources Expended**|**17,272**|**985**|**547**|**18,804**|21,095|



51 



## **Note 4 - Support Costs** 

||**Culture and**<br>**Libraries**|**Parks and**<br>**Open**<br>**Spaces**|**Sport and**<br>**Leisure**|**Total**<br>**2020/21**|Total<br>2019/20|
|---|---|---|---|---|---|
||**£000’s**|**£000’s**|**£000’s**|**£000’s**|£000’s|
|ICT|328|45|27|**400**|400|
|HR and Payroll|39|26|33|**98**|135|
|Building Services|-|-|-|**-**|49|
|Insurance|107|70|89|**266**|260|
|Cash Collection|5|-|8|**13**|22|
|Tree Surgery|-|59|-|**59**|59|
|MHR Payroll|23|15|20|**58**|58|
|Governance Cost|36|24|31|**91**|84|
|Management<br>and Support|-|-|-|**-**|27|
|**Total**|**538**|**239**|**208**|**985**|1,094|



52 



## **Note 5 Statement of Financial Activities Including Income and Expenditure** 

## **- Account (YEAR ENDED  31[ST] MARCH 2020)** 

||**ccount- (YEAR ENDED**|**31ST **|**MARCH 2020)**|**MARCH 2020)**|**MARCH 2020)**|||
|---|---|---|---|---|---|---|---|
||||**Unrestricted Funds**|||**Restricted**<br>**Funds**|**Total**<br>**2019/20**|
||||General<br>Funds||Designated<br>Funds|||
||||**£000’s**||**£000’s**|**£000’s**|**£000’s**|
||**Income and endowments**<br>**from:**|||||||
|||||||||
||Charitable Activities|||||||
||●Direct Services Income||9,413||-|-|**9,413**|
||●Grants and Contributions||||-|845|**845**|
||●Management Fee||8,438||-|1,351|**9,789**|
||Investments||9||-|-|**9**|
||**Total**||**17,860**||-|**2,196**|**20,056**|
|||||||||
||**Expenditure on:**|||||||
||Charitable Activities|||||||
||●Culture and Libraries||6,418||544|3,216|**10,178**|
||●Parks and Open Spaces||3,632||194|423|**4,249**|
||●Sport and Leisure||5,941||76|651|**6,668**|
||**Total**||**15,991**||**814**|**4,290**|**21,095**|
|||||||||
||**Net Income/(Expenditure)**<br>**before Transfers**||1,869||(814)|(2,094)|<br>**(1,039)**|
||**Transfers between funds**||(2,127)||(31)|2,158|**-**|
|||||||||
|||||||||
||**Net Income/(Expenditure)**<br>**after Transfers**||**(258)**||**(845)**|**64**|**(1,039)**|
||**Other Recognised**<br>**Gains/Losses**|||||||
||Actuarial (Losses)/Gains on<br>Defined Benefit Pension<br>Schemes||-||1,629|-|**1,629**|
|||||||||
||**Net Movement in Funds**||**(258)**||**784**|**64**|**590**|
||**Reconciliation of Funds**|||||||
||**Total Funds Brought**<br>**Forward**||661||(9,073)|746|**(7,666)**|
||**Total Funds Carried**<br>**Forward**||**403**||**(8,289)**|**810**|**(7,076)**|



53 



## **Notes to Financial Statements** 

## **(YEAR ENDED 31ST MARCH 2020)** 

## **Direct Services Income** 

|**(YEARENDED31STMARCH2020)**<br> **Direct Services Income**||||
|---|---|---|---|
||**Unrestricted**<br>**Funds**|**Restricted**<br>**Funds**|**Total**<br>**2019/20**|
||**£000’s**|**£000’s**|**£000’s**|
|Culture and Libraries|3,062|-|3,062|
|Parks and Open Spaces|1,064|-|1,064|
|Sport and Leisure|5,287|-|5,287|
|**Total**|**9,413**|-|**9,413**|



## **Resources Expended** 

||**Direct**<br>**Expenditure**|**Support**<br>**Costs**|**Deferred**<br>**Benefit**<br>**Pension**|**Total**<br>**2019/20**|
|---|---|---|---|---|
||**£000’s**|**£000’s**|**£000’s**|**£000’s**|
|**Unrestricted Expenditure**|||||
|Culture and Libraries|5,841|577|544|6,962|
|Parks and Open Spaces|3,384|248|194|3,826|
|Sport and Leisure|5,672|269|76|6,017|
|**Sub Total**|**14,897**|**1,094**|**814**|**16,805**|
||||||
|**Restricted Expenditure**|||||
|Culture and Libraries|3,216|-|-|3,216|
|Parks and Open Spaces|423|-|-|423|
|Sport and Leisure|651|-|-|651|
|**Sub Total**|**4,290**|-|-|**4,290**|
|**Total Resources Expended**|**19,187**|**1,094**|**814**|**21,095**|



54 



## **Support Costs** 

||**Culture and**<br>**Libraries**|**Parks and**<br>**Open**<br>**Spaces**|**Sport and**<br>**Leisure**|**Total**<br>**2019/20**|
|---|---|---|---|---|
||**£000’s**|**£000’s**|**£000’s**|**£000’s**|
|ICT|328|44|28|**400**|
|HR and Payroll|53|31|51|**135**|
|Building Services|19|11|19|**49**|
|Insurance|102|59|99|**260**|
|Cash Collection|9|5|8|**22**|
|Tree Surgery|-|59|-|**59**|
|MHR Payroll|23|13|22|**58**|
|Governance Cost|33|19|32|**84**|
|Management<br>and Support|11|6|10|**27**|
|**Total**|**578**|**247**|**269**|**1,094**|



## **Note 6 - Grants Paid** 

|**Note 6 - Grants Paid**|||
|---|---|---|
||**2020/21**<br>**£000’s**|2019/20<br>£000’s|
|**Organisations**|||
|Community Centres|16|16|
|Arts|16|24|
|**Total**|**32**|40|



## **Note 7 - Auditor Remuneration** 

||**2020/21**|2019/20|
|---|---|---|
||**£000’s**|£000’s|
|Statutory Audit|26|25|
|Consultancy|2|1|
|**Total**|**28**|26|



## **Note 8 - Trustees** 

No Trustees (or any person connected with them) received remuneration in 20/21 (19/20 nil). No Trustees (or any person connected with them) received expense reimbursement in 20/21  (this was £74.40 in 19/20) 

55 



## **Note 9 - Employees** 

## **Employee Numbers** 

The average number of employees, including Full-Time Equivalents (FTEs), during the year was: 

||**2020/21**|**2020/21**<br>**FTE**|2019/20|2019/20<br>FTE|
|---|---|---|---|---|
|Culture and Libraries|274|151.44|309|161.62|
|Parks and Open Spaces|69|56.76|63|54.82|
|Sport and Leisure|300|89.01|380|92.99|
|Management and Support|13|11.8|17|14.15|
||**656**|**309.01**|769|323.58|



## **Employee Costs** 

||**2020/21**|2019/20|
|---|---|---|
||**£000’s**|£000’s|
|Wages and Salaries|9,234|10,026|
|National Insurance Contributions|701|751|
|LGPS Pension|1,149|1,553|
|Other Pension|382|354|
|Agency and Private Instructors|78|443|
|Redundancy|121|12|
|**Total**|**11,665**|13,139|



The number of employees earning a salary of £60,000 or more (including benefits, but excluding pension contributions was as follows: 

|pension contributions was as follows:|||
|---|---|---|
||**2020/21**|2019/20|
|£60,000 to £69,999|2|1|
|£70,000 to £79,999|3|1|
|£80,000 to £89,999|-|-|
|£90,000 to £99,999|-|-|
|£100,000 to £109,999|1|1|
|**Total**|**5**|3|



Total pension costs paid to these employees amounted to £90,015 (2019/20: £65,894) 

56 



## **Remuneration of Key Management Personnel** 

Total employee benefits paid to the key management personnel (Chief Executive, Director of Sport & Leisure, Head of Culture & Libraries, Head of Parks & Open Spaces) totalled £442,413 in 2020/21 (£402,204 in 2019/20). 

## **Note 10 - Taxation** 

Vision is a **Registered Charity** and not liable for Corporation Tax on profits derived from its charitable activities under Paragraph 1 of Schedule 6 of the Finance Act 2010. 

## **Note 11 - Related Party Transactions** 

Trustees and employees are entitled to use the facilities managed by Vision at a discounted price, compared to members of the general public. 

A limited number of employees are entitled to use certain leisure facilities managed by Vision free of charge provided that usage does not interfere with the activities and demands of fee paying members and the general public. Such arrangements are often of mutual benefit to both parties (e.g. free access to the swimming pool to maintain the fitness of lifeguards). 

There are no other Related Party Transactions to report for 2020/21. 

57 



## **Note 12 - Tangible Fixed Assets** 

||**Building**<br>**Works**|**Plant &**<br>**Equip.**|**Gym**<br>**Equip.**|**Furniture**|**Refurbs. &**<br>**Fittings**|**IT**<br>**Equip.**|**Total**|
|---|---|---|---|---|---|---|---|
||**£000’s**|**£000’s**|**£000’s**|**£000’s**|**£000’s**|**£000’s**|**£000’s**|
|**Cost**||||||||
|At 1st April 2020|465|42|-|-|1,478|182|2,167|
|Additions in Year|-|-|-|-|167|363|530|
|Disposals in Year|-|(41)|-|-|-|-|(41)|
|**At 31st March**<br>**2021**|**465**|**1**|**-**|**-**|**1,645**|**545**|**2,656**|
|||||||||
|**Accumulated**<br>**Depreciation**||||||||
|At 1st April 2020|424|41|-|-|779|36|1,280|
|Charge for the<br>Year|41|--|-|-|152|195|388|
|Disposals in Year||**(41)**|**-**|**-**|**-**|**-**|**(41)**|
|**At 31st March**<br>**2021**|**465**|**-**|**-**|**-**|**931**|**231**|**1,627**|
|||||||||
|**Net Book**<br>**Value**||||||||
|At 31st March<br>2020|41|1|-|-|699|146|887|
|**At 31st March**<br>**2021**|**-**|**1**|**-**|**-**|**714**|**314**|**1,029**|



58 



## **Note 13 - Investments** 

Vision Redbridge Business Services Limited (a trading company) was incorporated on 20th May 2011. Vision Redbridge Culture and Leisure Limited is the sole shareholder, holding 100 Ordinary £1 shares. The Director Trustees of the Trust are the Directors of the trading company. 

As at the 31st March 2021 the company was dormant, as defined by Company Law. 

## **Note 14 - Debtors** 

||**31st March**<br>**2021**|31st March<br>2020|
|---|---|---|
||**£000’s**|£000’s|
|Trade Debtors|462|307|
|Other Debtors|57|85|
|Provision of Bad and Doubtful Debt|(57)|(43)|
|Prepayments and Accruals|866|636|
|**Total**|**1,328**|985|



## **Note 15 - Creditors: Amounts Due Within One Year** 

||||**31st March**<br>**2021**|31st March<br>2020|
|---|---|---|---|---|
||||**£000’s**|£000’s|
|Trade Creditors|||270|46|
|VAT and Social security|||1,130|570|
|Accruals|||2,022|2,044|
|Deferred income|||176|157|
|Total|||**3,598**|2,817|
|**Deferred Income**<br>**Analysis**|**2020/21**|2019/20|||
||**£000’s**|£000’s|||
|Balance April 1st|**157**|248|||
|Charged in Year|157|248|||
|Deferred in Year|176|157|||
|Balance  March 31st|**176**|157|||



59 



## **Note 16 - Pension Costs** 

## **Defined Benefit Scheme** 

As part of the terms and conditions of employment under “TUPE” regulations, employees transferred from the London Borough of Redbridge (LBR) are entitled to remain within the Local Government Pension Scheme (LGPS). The Redbridge scheme is a funded final salary defined benefit scheme, which is administered by the Council in accordance with the LGPS Regulations. 

It is possible to identify Vision’s share of the underlying assets and liabilities of the Redbridge Fund for the purposes of FRS102. 

The assets of the LGPS are invested and managed independently of the Trust and employer contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The most recent actuarial valuation reflected the position as at March 2020. 

## **Active LGPS Members and Contribution Levels** 

||**2020/21**|2019/20|
|---|---|---|
|Employer’s Contributions (£000’s)|602|739|
|Employer’s Contribution (%)|20.1|20.1|
|Number of Members|238|238|



## **Reconciliation of Defined Benefit Obligation** 

|**Reconciliation of Defned Beneft Obligation**|||
|---|---|---|
||**2020/21**|2019/20|
||**£000’s**|£000’s|
|**Opening Defined Benefit Obligation**|**31,935**|35,578|
|Current Service Cost|954|1,327|
|Losses /(Gains) on Curtailments|-|-|
|Effect of Business Combinations and Disposals|-|-|
|Interest Cost|740|866|
|**Total Defined Benefit Recognised in SOFA**|**1,694**|2,193|
|Contribution by Members|173|186|
|Estimated Benefits Paid|(611)|(613)|
|**Re-measurements**|||
|Changes in Actuarial Assumptions|9,978|(4,420)|
|Other Experience|(312)|(989)|
|**Closing Defined Benefit Obligation**|**42,857**|31,935|



60 



## **Reconciliation of Plan Assets** 

|||**2020/21**|2019/20|
|---|---|---|---|
|||**£000’s**|£000’s|
||**Opening Fair Value of Employer Assets**|**23,646**|26,474|
||Interest Income|545|640|
||Effect of Business Combinations and Disposals|-|-|
||**Total Defined Benefit Recognised in SOFA**|**545**|640|
||Contribution by Members|173|186|
||Contributions by Employer|602|739|
||Benefits Paid|(611)|(613)|
||Re-Measurements|||
||Return on Assets|5,763|(3,780)|
||**Closing Fair Value of Employer Assets**|**30,118**|23,646|



## **Reconciliation of Total Cost of Defined Benefit Liability** 

|||**2020/21**|**2019/20**|
|---|---|---|---|
|||**£000’s**|**£000’s**|
||Current Service Cost|(954)|(1,327)|
||(Losses)/Gains on Curtailments|-|-|
||Effect of Business Combinations and Disposals|-|-|
||Net Interest|(195)|(226)|
||**Charge to Net (Income)/Expenditure**|**(1,149)**|**(1,553)**|
|||||
||Re-Measurements|||
||Changes In Actuarial Assumptions|(9,978)|4,420|
||Other Experience|312|989|
||Return on Assets|5,763|(3,780)|
||**Total Re-Measurements**|**(3,903)**|**1,629**|
||Employers Contribution|**602**|**739**|
||Surplus or (Deficit) in Scheme|**(5,052)**|**76**|
||Opening Balance – Surplus/(Deficit)|(8,289)|(9,104)|
||**Closing Balance – Surplus/(Deficit)**|**(12,739)**|**(8,289)**|



61 



## **Fair Value of Plan Assets - Values** 

|**Fair Value of Plan Assets - Values**||||||
|---|---|---|---|---|---|
||**31st March**<br>**2021**|**31st March**<br>**2020**|**31st March**<br>**2019**|**31st March**<br>**2018**|**31st March**<br>**2017**|
||**£000’s**|**£000’s**|**£000’s**|**£000’s**|**£000’s**|
|Equities|21,986 (73%)|16,079 (68%)|18,532 (70%)|16,950 (70%)|16,340(71%)|
|Bonds|4,518 (15%)<br>|5,202 (22%)|5,559 (21%)|5,083 (21%)|4,833(21%)|
|Property|3,313 (11%)<br>|2,128   (9%)|2,383   (9%)|2,180   (8%)|1,842 (8%)|
|Cash|301     (1%)<br>|237   (1%)|-|-|-|
|**Total Fair Value of Plan Assets**|**30,118**<br>**(100%)**|**23,646**<br>**(100%)**|**26,474**<br>**(100%)**|**24,213**<br>**(100%)**|**23,014**<br>**(100%)**|



## **Actuarial Assumptions** 

||**31st March**<br>**2021**|31st March<br>2020|
|---|---|---|
||**(%pa)**|(%pa)|
|Pension Increases|2.85|1.9|
|Salary Increases|2.85|1.9|
|Discount Rate|2.00|2.3|



## 

Vision contributes to three defined contribution schemes: 

- **Teachers’ Pension Scheme (TPS)** 

The TPS which, although technically a defined benefit scheme, is accounted for as a defined contribution scheme. All TPS members are employed within the Music and Drama services. As at 31st March 2021 there were 65 employees in the TPS. 

- **Friends Provident  (“Stakeholder Pension”)** 

As at 31st March 2021, there was one employee with a Stakeholder Pension. 

## • **Friends Life  (“Group Pension Plan”)** 

The continued application of “auto-enrolment” during the financial year has seen a growing number of employees taking out a Group Pension Plan through Friends Life.  As at 31[st] March 2021, 284 employees were Group Pension Plan holders. ( 31[st] March 2020  there were 301 employees) 

62 



The Employer Contributions paid into Defined Contribution Schemes during the year is summarised in the table below. 

|the table below.|||
|---|---|---|
||**2020/21**|2019/20|
||**£000’s**|£000’s|
|Teachers’ Pension Scheme (TPS)|265|232|
|Friends Provident|2|2|
|Friends Life|116|120|
||||



## **Note 17 - Unrestricted Funds** 

Unrestricted Funds held by Vision are available to use for the general charitable purposes of the Trust. However, part of these may be “Designated” for particular future purposes. The movement in Unrestricted Funds during 2020/21 is set out as follows. 

|||**Movement in Unrestricted Funds 2020/21**|**Movement in Unrestricted Funds 2020/21**|**Movement in Unrestricted Funds 2020/21**|**Movement in Unrestricted Funds 2020/21**|**Movement in Unrestricted Funds 2020/21**|
|---|---|---|---|---|---|---|
|||**Balance**<br>**1st**<br>**April**<br>**2020**|**Incoming**<br>**Resources**|**Resources**<br>**Expended**|**Transfers**<br>**Between**<br>**Funds**|**Balance**<br>**31st March**<br>**2021**|
|||**£000’s**|**£000’s**|**£000’s**|**£000’s**|**£000’s**|
||General Fund|403|16,671|(14,542)|(1,951)|581|
||**Sub Total**|**403**|**16,671**|**(14,542)**|**(1,951)**|**581**|
||||||||
||**Designated Funds**||||||
||ICT Transformation|-|-|-|-|-|
||Pension Fund Reserve|(8,289)|(3,903)|(547)|-|(12,739)|
||**Sub Total**|**(8,289)**|**(3,903)**|**(547)**|**-**|<br>**(12,739)**|
||||||||
||**Total**|**(7,886)**|**12,768**|**(15,089)**|**(1,951)**|**(12,158)**|
||||||||



63 



|||**Movement in Unrestricted Funds 2019/20**|**Movement in Unrestricted Funds 2019/20**|**Movement in Unrestricted Funds 2019/20**|**Movement in Unrestricted Funds 2019/20**|**Movement in Unrestricted Funds 2019/20**|
|---|---|---|---|---|---|---|
|||**Balance**<br>**1st**<br>**April**<br>**2019**|**Incoming**<br>**Resources**|**Resources**<br>**Expended**|**Transfers**<br>**Between**<br>**Funds**|**Balance**<br>**31st March**<br>**2020**|
|||**£000’s**|**£000’s**|**£000’s**|**£000’s**|**£000’s**|
||General Fund|661|17,860|(15,991)|(2,127)|403|
||**Sub Total**|**661**|**17,860**|**(15,991)**|**(2,127)**|**403**|
||||||||
||**Designated Funds**||||||
||ICT Transformation|31|-|(31)|-|-|
||Pension Fund Reserve|(9,104)|1,629|(814)|-|(8,289)|
||**Sub Total**|**(9,073)**|**1,629**|**(845)**|**-**|<br>**(8,289)**|
||||||||
||**Total**|**(8,412)**|**19,489**|**(16,836)**|**(2,127)**|**(7,886)**|



## **Note 18 – Restricted Funds** 

Restricted Funds held by the Trust are only available to use for the purposes specified by the donor. Vision holds Restricted Funds in three categories: 

## • **Management Fee** 

Funded by LBR through the main Management Fee. Specifically: 

- 

## **Maintenance, Repairs & Renewals (MRR)** 

   - To be used solely for the maintenance, repair and renewal of LBR assets entrusted to Vision as part of the management contract for Culture and Leisure services in the Borough. 

- **Exercise on Referral** 

   - To be used in accordance with a Service Level Agreement with the Redbridge Clinical Commissioning Group for the supply of relevant Sport & Health related services. 

- **Redbridge Arts Grants** 

To be used to support community and voluntary sector arts activities. 

- 

## **Adult Activator** 

To support a post, specifically created to lead and co-ordinate an adult health programme on Redbridge housing estates. 

- 

## **Music Bursary Fund** 

   - To be used in support of music school pupils to advance their musical education beyond Redbridge Music School. 

- 

## **Cycle Quiet Ways** 

To extend the opening hours at Valentines Park – initially for two years – to allow access to the Cycle Quiet Way, linking Redbridge to other London boroughs. The grant is to fund additional staffing costs. 

64 



- 

## **0-19 Health** 

   - To help fund and deliver an obesity strategy and action plan, and to develop physical activity provision for antenatal women. 

- **Alice White Legacy** 

A legacy left to Valentines Park to be spent on a specific area within the Park. 

- **Claybury Park Dowry** 

   - To be used to support a 6-year Investment Plan (2015-21) for the maintenance of Claybury Park. 

## • **Service Grants** 

External grants, ring-fenced to support the Music and Drama services. 

## • **Other Grants** 

Primarily external grants and contributions received outside the main Management Fee for Culture and Leisure related specified projects and initiatives in the fields of Arts, Events, Libraries, Museums, Parks, Sport and Health. 

65 



The movement in Restricted Funds during 2020/21 is set out in the table below. 

|||**Movement in Restricted Funds**|**Movement in Restricted Funds**|**Movement in Restricted Funds**|**Movement in Restricted Funds**|**Movement in Restricted Funds**|
|---|---|---|---|---|---|---|
|||**Balance**<br>**1st April**<br>**2020**|**Incoming**<br>**Resources**|**Resources**<br>**Expended**|**Transfers**<br>**Between**<br>**Funds**|**Balance**<br>**31st March**<br>**2021**|
|||**£000’s**|**£000’s**|**£000’s**|**£000’s**|**£000’s**|
||**Management Fee**||||||
||MRR Fund|20|1,107|(607)|(350)|170|
||Asset Plan ( Restricted Reserve.)|133|-|-|350|483|
||Exercise on Referral|4|80|(80)|-|4|
||Redbridge Arts Grants|52|33|(10)|-|75|
||Adult Activator|14|4|(9)|-|9|
||Music Bursary Fund|62|0|0|-|62|
||Cycle Quiet Ways|46|0|0|-|46|
||0-19 Health|14|32|(27)|-|19|
||Alice White Legacy|-|15|(15)|-|-|
||Claybury Park Dowry|84|0|(27)|-|57|
|||**429**|**1,271**|**(775)**|**-**|**925**|
||**Service Grants**||||||
||Drama|-|66|(614)|548|-|
||Music|-|493|(1,896)|1,403|-|
|||**-**|**559**|**(2,510)**|**1,951**|**-**|
||**Other (Grants)**||||||
||Arts|7|-|-|-|7|
||ACE|-|548|(363)|-|185|
||Corporate|4|-|(4)|-|-|
||Libraries|181|66|(55)|-|192|
||Museum|-|-|-|-|-|
||Music Education|35|-|-|-|35|
||Parks|44|4|(15)|-|33|
||Sport and Health|110|55|(1)|-|164|
|||**381**|**673**|**(438)**|**-**|**616**|
||||||||
||**Total**|**810**|**2,503**|**(3,723)**|**1,951**|**1,541**|



66 



|||**Movement in Restricted Funds**|**Movement in Restricted Funds**|**Movement in Restricted Funds**|**Movement in Restricted Funds**|**Movement in Restricted Funds**|
|---|---|---|---|---|---|---|
|||**Balance**<br>**1st April**<br>**2019**|**Incoming**<br>**Resources**|**Resources**<br>**Expended**|**Transfers**<br>**Between**<br>**Funds**|**Balance**<br>**31st March**<br>**2020**|
|||**£000’s**|**£000’s**|**£000’s**|**£000’s**|**£000’s**|
||**Management Fee**||||||
||MRR Fund|18|1,107|(1,105)|-|20|
||Asset Plan ( Restricted Reserve.)|133|-|-|-|133|
||Exercise on Referral|4|180|(180)|-|4|
||Redbridge Arts Grants|34|33|(15)|-|52|
||Adult Activator|32|-|(18)|-|14|
||Music Bursary Fund|62|-|-|-|62|
||Cycle Quiet Ways|46|-|-|-|46|
||0-19 Health|19|32|(37)|-|14|
||Alice White Legacy|1|26|(27)|-|-|
||Claybury Park Dowry|142|-|(58)|-|84|
|||**491**|**1,378**|**(1,440)**|**-**|**429**|
||**Service Grants**||||||
||Drama|-|65|(793)|728|-|
||Music|-|495|(1,925)|1,430|-|
|||**-**|**560**|**(2,718)**|**2,158**|**-**|
||**Other (Grants)**||||||
||Arts|7|-|-|-|7|
||Corporate|4|-|-|-|4|
||Libraries|55|208|(82)|-|181|
||Museum|-|-|-|-|-|
||Music Education|35|-|-|-|35|
||Parks|53|4|(13)|-|44|
||Sport and Health|101|46|(37)|-|110|
|||**255**|**258**|**(132)**|**-**|**381**|
||||||||
||**Total**|**746**|**2,196**|**(4,290)**|**2,158**|**810**|



67 



## **Note 19 - Analysis of Net Assets Between Funds** 

||**Unrestricted Funds**|**Unrestricted Funds**|**Restricted**<br>**Funds**|**Total**|
|---|---|---|---|---|
||**General**|**Designated**|||
||**£000’s**|**£000’s**|**£000’s**|**£000’s**|
|**Fund Balances at 31st March 2021**<br>**are represented by:**|||||
|Tangible Assets ( Net book values)|-|-|1,029|1,029|
|Current Assets / (Liabilities)|581|-|512|1.093|
|Provisions|-|(12,739)|-|(12,739)|
|**Total**|**581**|**(12,739)**|**1,541**|**(10,617)**|
||||||
|**Fund Balances at 31st March 2020**<br>**were represented by:**|||||
|Tangible Assets ( Net book values)|64|-|823|887|
|Current Assets / (Liabilities)|339|-|(13)|326|
|Provisions|-|(8,289)|-|(8,289)|
|**Total**|**403**|**(8,289)**|**810**|**(7,076)**|



## **Note 20 - Lease Commitments** 

Total payments of £120,837.90  relating to operating leases  were made in 2020/21  (£64,406.62  2019/20). There are no Finance Leases. Outstanding commitments under non-cancellable Operating Leases at the end of the financial year were as follows: 

||**31st March**<br>**2021**|31st March<br>2020|
|---|---|---|
||**£000’s**|£000’s|
|Expiry Date:|||
|Within One Year|**60**|93|
|Between One and Five Years|**96**|151|
||||
|Total|**156**|244|



All leases relate to plant, equipment and vehicles. There are no leases relating to land and buildings. 

68