2023-03-31-accounts - Vision Redbridge Culture And Leisure

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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 21 / 2 32

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

Martin Solder

0.31% 0.11% LOWER (mean) HIGHER (median)

42% 58% 45% 55% MEN WOMEN MEN WOMEN

43% 57% 43% 57% MEN WOMEN MEN WOMEN

0% 0% 0% 0% (lower) (mean) (lower) (median) OF MEN OF WOMEN

1.2m

355

Over 33,000

895,000

43,000 Over 30,000

Over 2,500

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AUDITOR’S REPORT
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10 October 2023

05 FINANCIAL STATEMENTS

Statement of Financial Activities Including Income and Expenditure Account - Year ended 31ST MARCH 2023

		Unrestricted Funds	Unrestricted Funds	Restricted Funds	Total 2022/23	Total 2021/22
		General Funds	Designated Funds
	Note	£000’s	£000’s	£000’s	£000’s	£000’s
Income and endowments from:
Charitable Activities
●Direct Services Income	2	10,229	-	-	10229	8,984
●Grants and Contributions		-	-	1,786	1,786	3,618
●Management Fee		7,548	-	1,107	8,655	9,060
●Other Income		617	-	-	617	9,695
Total		18,394	-	2,893	21,287	31,357

Expenditure on:
Charitable Activities
●Culture and Libraries		6,585	-	3,451	10,036	10,705
●Parks and Open Spaces		5,460	-	944	6,404	4,829
●Sport and Leisure		5,303	-	1,054	6,357	6,679
Total	3	17,348	-	5,449	22,797	22,213

Net Income/(Expenditure) before Transfers		1,046	-	(2,556)	(1,510)	9,144
Transfers between funds	17,18	(1,816)	-	1,816	-	-

Net Income/(Expenditure) after Transfers		(770)	-	(740)	(1,510)	9,144
Other Recognised Gains/Losses
Actuarial (Losses)/Gains on Defined Benefit Pension Schemes	16	-	-	-	-	4,005

Net Movement in Funds		(770)	-	(740)	(1,510)	13,149
Reconciliation of Funds
Total Funds Brought Forward	19	1,286	-	1,572	2,858	(10,291)
Total Funds c/fwd		516	-	832	1,348	2,858

- Balance sheet (AS AT 31ST MARCH 2023)

		31st March 2023	31st March 2023	31st March 2022	31st March 2022
	Note	£000’s	£000’s	£000’s	£000’s
Fixed Assets
Tangible Fixed Assets	12		1,307		1,217
Current Assets
Pension	16	-		9,586
Stock		29		25
Debtors/ Prepayments	14	1,482		2,065
Cash at Bank and in Hand		803		2,303
Total Current Assets		2,314		13,979
Liabilities
Creditors: Amounts Falling Due Within One Year	15	2,273		2,752
Net Current Assets			41		11,227

Total Assets Less Current Liabilities			1348		12,444

Provision for Liabilities: Defined Benefit Pension Scheme	16		-		(9,586)
Net Assets			1,348		2,858

The Funds of the Charity
General Fund	17		516		1,286
Designated Funds	17		-		-
Designated Pension Reserve	17
Restricted Funds	18		832		1,572
			1,348		2,858

The Financial Statements were approved by the Board of Trustees and authorised for issue on the 14[th] September 2023 and signed on their behalf by:

Martin Solder Trustee

Catherine Rowan Trustee

- Cash Flow Statement (YEAR END 31ST MARCH 2023)

		2022/23	2021/22
		£000’s	£000’s
Cash Flow from Operating Activities		(863)	(447)
Cash Flow from Investing Activities
●Interest Received		10
●Capital expenditure		(647)	(613)
Increase (Decrease) in Cash in Year		(1,500)	(1,060)

Note i - Reconciliation of Cash Flow from Operating Activities

Net IncomingResources after Transfers		(1,510)	9,143
Defined Benefit Pension Charge		-	1,600
Defined Benefit Pension Contributions Paid		-	(748)
Interest Received		(10)	-
Decrease (Increase) in Stock		(4)	(25)
Decrease (Increase) in Debtors and Prepayments		583	(9,996)
Increase (Decrease) in Creditors		(479)	(846)
Depreciation		557	425
Net Cash Flow from Operating Activities		(863)	(447)

	31st March 2022	Movement in Year	31st March 2023
	£000’s	£000’s	£000’s
Note ii - Analysis of Cash and Cash Equivalents

Cash at Bank and In Hand	69	6	75
Short-Term Deposits	2,234	(1,506)	728
Total	2,303	(1,500)	803

		2022/23 £000’s	2021/22 £000’s
Note iii - Reconciliation of Cash Flow to Movement in Net Funds
Increase (Decrease) in Cash in the Year		(1,500)	(1,060)
Movement in Net Funds in the Year		(1,500)	(1,060)
OpeningNet Funds as at 1st April		2,303	3,363
Closing Net Funds as at 31st March		803	2,303

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06 NOTES TO THE FINANCIAL STATEMENTS

Notes to Financial Statements

(YEAR ENDED 31ST MARCH 2023)

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 trustees have assessed whether the use of the going concern basis is appropriate and have made this assessment in respect of a period of at least one year from the approval of these financial statements. Although, with the latest economic indicators, 2023/24 looks challenging with the cost of living crisis, operations have returned to pre-covid levels. The five year contract with the London Borough of Redbridge includes a guarantee for the pension liability which allows Vision to recognise an asset to offset any pension deficit. This together with the forecasts position indicates that the Charity will be able to settle its debts as they fall due for at least 12 months following approval of these financial statements. On this basis the trustees continue to adopt the going concern basis in the preparation of the 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.

Note 1 - Accounting Policies continued

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.

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.

Note 1 - Accounting Policies continued

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.

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 contract*
Equipment and Motor Vehicles	20 to 33.3% per annum
Furniture	10% per annum
Refurbishments & Fittings	20% per annum

Note 1 - Accounting Policies continued

 Depreciation cont

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

*. Assets belonging to Vision: depreciation will be charged according to the estimated useful life of the asset

*. Assets belonging to The London Borough of Redbridge: depreciation will be charged to the end of the contract i.e end of 2026

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 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.

A new Funding and Management Agreement with the Council was entered into in the year which includes a “pass through” approach in relation to the Local Government Pension Scheme. “Pass through” reflects the generally accepted market position in relation to LGPS and the associated risk for operators.

The position agreed between Vision Redbridge and the Council is summarised as follows:

Any increases to the fixed Employer Contribution Rate will be met by Vision Redbridge but reimbursed by the Council.
Any Exit Contribution will be met by Vision Redbridge but reimbursed by the Council .

Note 1 - Accounting Policies continued

Pension Costs cont.

Vision Redbridge will remain responsible for any increases to the fixed Employer Contribution Rate or Exit Contribution if, and to the extent that, such increases relate directly to the commercial decisions of Vision Redbridge save where:
The Council agrees to meet these costs, at its discretion
The costs arise in relation to an agreed Change in Service
The costs arose in relation to implementation of a” Best Value Change”

The five year contract with the London Borough of Redbridge includes a guarantee for the pension liability which allows Vision to recognise an asset to offset any pension deficit.

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.

Note 2 - Direct Services Income

Note 2 - Direct Services Income
	Unrestricted Funds	Restricted Funds	Total 2022/23	Total 2021/22
	£000’s	£000’s	£000’s	£000’s
Culture and Libraries	3,229	-	3,229	3,091
Parks and Open Spaces	2,637	-	2,637	1,431
Sport and Leisure	4,363	-	4,363	4,462
Total	10,229	-	10,229	8,984

Note 3 – Resources Expended

	Direct Expenditure	Support Costs	Deferred Benefit Pension	Total 2022/23	Total 2021/22
	£000’s	£000’s	£000’s	£000’s	£000’s
Unrestricted Expenditure
Culture and Libraries	6,091	494	-	6,585	6,764
Parks and Open Spaces	5,127	333	-	5,460	4,424
Sport and Leisure	5,079	224	-	5,303	5,871
Sub Total	16,297	1,051	-	17,348	17,059

Restricted Expenditure
Culture and Libraries	3,451	-	-	3,451	4,021
Parks and Open Spaces	944	-	-	944	405
Sport and Leisure	1,054	-	-	1,054	808
Management & Support	-	-	-	-	(80)
Sub Total	5,449	-	-	5,449	5,154
Total Resources Expended	21,747	1,051	-	22,798	22,213

Note 4 - Support Costs

	Culture and Libraries	Parks and Open Spaces	Sport and Leisure	Total 2022/23	Total 2021/22
	£000’s	£000’s	£000’s	£000’s	£000’s
ICT	295	107	60	462	481
HR and Payroll	37	31	30	98	99
Insurance	98	82	81	261	261
Cash Collection	4	4	3	11	16
Tree Surgery	-	59	-	59	59
MHR Payroll	21	17	17	55	56
Governance Cost	39	33	33	105	96
Management and Support	-	-	-	-	-
Total	494	333	224	1,051	1,068

- Note 5 Statement of Financial Activities Including Income and Expenditure - Account (YEAR ENDED 31[ST] MARCH 2022)

		Unrestricted Funds	Unrestricted Funds	Restricted Funds	Total 2021/22	Restated Total 2020/21
		General Funds	Designated Funds
	Note	£000’s	£000’s	£000’s	£000’s	£000’s
Income and endowments from:
Charitable Activities
●Direct Services Income	2	8,984	-	-	8,984	3,804
●Grants and Contributions		2,137	-	1,481	3,618	6,042
●Management Fee		7,920	-	1,140	9,060	9,320
●Other Income	11	109	9,586	-	9,695	108
Total		19,150	9,586	2,621	31,357	19,274

Expenditure on:
Charitable Activities
●Culture and Libraries		6,223	541	3,941	10,705	9,247
●Parks and Open Spaces		4,191	233	405	4,829	4,260
●Sport and Leisure		5,793	78	808	6,679	5,297
Total	3	16,207	852	5,154	22,213	18,804

Net Income/(Expenditure) before Transfers		2,943	8,734	(2,533)	9,144	470
Transfers between funds	17,18	(2,564)	-	2,564	-	-

Net Income/(Expenditure) after Transfers		379	8,734	31	9,144	470
Other Recognised Gains/Losses
Actuarial (Losses)/Gains on Defined Benefit Pension Schemes	16	-	4,005	-	4,005	(3,903)

Net Movement in Funds		379	12,739	31	13,149	(3,433)
Reconciliation of Funds
Total Funds Brought Forward	19	907	(12,739)	1,541	(10,291)	(6,858)
Total Funds c/fwd		1,286	-	1,572	2,858	(10,291)

Note 5 - Statement of Financial Activities Including Income and Expenditure continued

(YEAR ENDED 31ST MARCH 2022)

Direct Services Income

Direct Services Income
	Unrestricted Funds	Restricted Funds	Total 2021/22	Total 2021/22
	£000’s	£000’s	£000’s	£000’s
Culture and Libraries	3,091	-	3,091	1,820
Parks and Open Spaces	1,431	-	1,431	1,065
Sport and Leisure	4,462	-	4,462	919
Total	8,984	-	8,984	3,804

Resources Expended

	Direct Expenditure	Support Costs	Deferred Benefit Pension	Total 2021/22	Total 2020/21
	£000’s	£000’s	£000’s	£000’s	£000’s
Unrestricted Expenditure
Culture and Libraries	5,620	603	541	6,764	6,216
Parks and Open Spaces	3,940	251	233	4,424	3,937
Sport and Leisure	5,579	214	78	5,871	4,936
Sub Total	15,139	1,068	852	17,059	15,089

Restricted Expenditure
Culture and Libraries	4,021	-	-	4,021	3,031
Parks and Open Spaces	405	-	-	405	323
Sport and Leisure	808	-	-	808	361
Management & Support	(80)	-	-	(80)	-
Sub Total	5,154	-	-	5,154	3,715
Total Resources Expended	20,293	1,068	852	22,213	18,804

- Note 5 Statement of Financial Activities Including Income and Expenditure continued

Support Costs

Support Costs
	Culture and Libraries	Parks and Open Spaces	Sport and Leisure	Total 2022/23	Total 2020/21
	£000’s	£000’s	£000’s	£000’s	£000’s
ICT	395	54	32	481	400
HR and Payroll	39	26	34	99	98
Insurance	105	68	88	261	266
Cash Collection	7	4	5	16	13
Tree Surgery	-	59	-	59	59
MHR Payroll	22	15	19	56	58
Governance Cost	35	25	36	96	91
Management and Support	-	-	-	-	-
Total	603	251	214	1,068	985

Note 6 - Grants Paid

Note 6 - Grants Paid
Organisations	2022/23 £000’s	2021/22 £000’s
Community Centres	39	35
Arts	42	15
Total	81	50

Note 7 - Auditor Remuneration

	2022/23	2021/22
	£000’s	£000’s
Statutory Audit	34	33
Vat Advice	-	1
Arts Council Grant Audit	-	3
Audit fee in respect of prior year audit	14	8
Total	48	45

Note 8 – Trustees

No Trustees (or any person connected with them) received remuneration in 22/23 (21/22 nil). No Trustee was reimbursed for travel expenses in 22/23 (21/22 £33.58)

Note 9 - Employees

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

Employee Numbers	2022/23	2022/23 FTE	2021/22	2021/22 FTE
Culture and Libraries	252	149.95	242	142.35
Parks and Open Spaces	114	78.42	65	57.37
Sport and Leisure	266	97.60	287	94.02
Management and Support	14	13.40	15	12.40
	646	339.37	609	306.14

Employee Costs	2022/23	2021/22
	£000’s	£000’s
Wages and Salaries	10,327	9,296
National Insurance Contributions	845	713
LGPS Pension	563	1,600
Other Pension	395	370
Agency and Private Instructors	469	177
Redundancy	30	32
Total	12,629	12,188

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:
	2022/23	2021/22
£60,000 to £69,999	2	1
£70,000 to £79,999	1	2
£80,000 to £89,999	1	-
£90,000 to £99,999	-	-
£100,000 to £109,999	-	-
£110,000 to £119,999	1	1
Total	5	4

Note 9 – Employees continued

Total pension costs paid to these employees amounted to £83,114 (21/22: £77,191)

Remuneration of Key Management Personnel

Total emoluments paid to the key management personnel (Chief Executive, Head of Culture & Libraries, Head of Parks & Open Spaces) totalled £376,891 in 2022/23 (£451,407 in 2021/22).

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).

During the year, £4,020 was paid to, and Venue hire of £12,756 was received from, Frenford Clubs, a charity of which Martin Solder, the Chair of Trustees, is also a Trustee.

There are no other Related Party Transactions to report for 2022/23.

Note 12 - Tangible Fixed Assets

	Building Works	Plant & Equip.	Gym Equip.	Office Equip.	Refurbs. & Fittings	IT Equip.	Total
	£000’s	£000’s	£000’s	£000’s	£000’s	£000’s	£000’s
Cost
At 1st April 2022	465	1	187	-	2,011	605	3,269
Additions in Year	-	-	-	9	590	48	647
Disposals in Year	-	-	-	-	-	-	-
At 31st March 2023	465	1	187	9	2,601	653	3,916

Accumulated Depreciation
At 1st April 2022	465	1	37	-	1,156	393	2,052
Charge for the Year	-	-	37	2	373	145	557
Disposals in Year	-	-	-	-	-	-	-
At 31st March 2023	465	1	74	2	1,529	538	2,609

Net Book Value
At 31st March 2022	-	-	150	-	855	212	1,217
At 31st March 2023	-	-	113	7	1,072	115	1,307

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 2023 the company was dormant, as defined by Company Law.

Note 14 - Debtors

	31st March 2023	31stMarch 2022
	£000’s	£000’s
Trade Debtors	856	1,036
Other Debtors	-	-
Provision of Bad and Doubtful Debt	(22)	(23)
Prepayments and Accruals	648	1,052
Total	1,482	2,065

Note 15 - Creditors: Amounts Due Within One Year

			31st March 2023	31st March 2022
			£000’s	£000’s
Trade Creditors			111	91
Tax and Social security			533	568
Accruals			1,292	1,796
Deferred income			337	297
Total			2,273	2,752
Deferred Income Analysis	2022/23	2021/22
	£000’s	£000’s
Balance April 1st	297	176
Charged in Year	297	176
Deferred in Year	337	297
Balance March 31st	337	297

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

	2022/23	2021/22
Employer’s Contributions (£000’s)	563	748
Employer’s Contribution (%)	23.1	23.1
Number of Members	238	238

Note 16 - Pension Costs continued

Reconciliation of Defined Benefit Obligation

	2022/23	2021/22
	£000’s	£000’s
Opening Defined Benefit Obligation	41,256	42,857
Current Service Cost	1,142	1,339
Losses /(Gains) on Curtailments	-	-
Effect of Business Combinations and Disposals	-	-
Interest Cost	1,122	865
Total Defined Benefit Recognised in SOFA	2,264	2,204
Contribution by Members	152	162
Estimated Benefits Paid	(660)	(695)
Re-measurements
Changes in Actuarial Assumptions	(16,292)	(3,346)
Other Experience	1,843	74
Closing Defined Benefit Obligation	28,563	41,256

Reconciliation of Plan Assets

	2022/23	2021/22
	£000’s	£000’s
Opening Fair Value of Employer Assets	31,670	30,118
Interest Income	855	604
Effect of Business Combinations and Disposals	-	-
Total Defined Benefit Recognised in SOFA	855	604
Contribution by Members	152	162
Contributions by Employer	563	748
Benefits Paid	(660)	(695)
Other Experience	(502)
Re-Measurements
Return on Assets	(2,931)	733
Closing Fair Value of Employer Assets	29,147	31,670

Note 16 - Pension Costs continued

Reconciliation of Total Cost of Defined Benefit Liability

	2022/23	2021/22
	£000’s	£000’s
Current Service Cost	(1,026)	(1,228)
(Losses)/Gains on Curtailments	-	-
Effect of Business Combinations and Disposals	-	-
Net Interest	(267)	(261)
Charge to Net (Income)/Expenditure	(1,293)	(1,489)

Re-Measurements
Changes In Actuarial Assumptions	16,292	3,346
Other Experience	(2,345)	(74)
Return on Assets	(2,931)	733
Total Re-Measurements	11,016	4,005
Employers Contribution	563	748
Surplus or (Deficit) in Scheme	9,607	2,405
Opening Balance – Surplus/(Deficit)	(9,586)	(12,739)
Closing Balance – Surplus/(Deficit)	584	(9,586)

As the charity does not have an unconditional right to the surplus in the pension scheme it is recognised at nil value in accordance with FRS102

Fair Value of Plan Assets – Values

	31st March 2023	31st March 2022	31st March 2021	31st March 2020	31st March 2019
	£000’s	£000’s	£000’s	£000’s	£000’s
Equities	20,986 (72%)	22,803 (72%)	21,986 (73%)	16,079 (8%)	18,532 (70%)
Bonds	2,623 (7%)	2,850 (9%)	4,518 (15%)	5,202 (22%)	5,559 (21%)
Property	5,538 (21%)	6,017 (19%)	3,313 (11%)	2,128 (9%)	2,383 (9%)
Cash	- (0%)	- (0%)	301 (1%)	237 (1%)	-
Total Fair Value of Plan Assets	29,147 (100%)	31,670 (100%)	30,118 (100%)	23,646 (100%)	26,474 (100%)

Note 16 - Pension Costs continued

Actuarial Assumptions

Actuarial Assumptions
	31st March 2023	31st March 2022
	(%pa)	(%pa)
Pension Increases	3.00	3.20
Salary Increases	3.00	3.20
Discount Rate	4.75	2.70

Defined Contribution Schemes

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 2023 there were 56 employees in the TPS. ( 31[st] March 2022 there were 55 employees)

 Friends Provident (“Stakeholder Pension”)

As at 31st March 2023, 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 Aviva. As at 31[st] March 2023, 352 employees were Group Pension Plan holders. ( 31[st] March 2022 there were 328 employees)

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

	2022/23	2021/22
	£000’s	£000’s
Teachers’ Pension Scheme (TPS)	242	247
Friends Provident	2	2
Aviva Group Pension	151	122

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 2022/23 is set out as follows.

	Movement in Unrestricted Funds 2022/23	Movement in Unrestricted Funds 2022/23	Movement in Unrestricted Funds 2022/23	Movement in Unrestricted Funds 2022/23	Movement in Unrestricted Funds 2022/23
	Balance 1st April 2022	Incoming Resources	Resources Expended	Transfers Between Funds	Balance 31st March 2023
	£000’s	£000’s	£000’s	£000’s	£000’s
General Fund	1,286	18,394	(17,348)	(1,816)	516
Sub Total	1,286	18,394	(17,348)	(1,816)	516

Designated Funds
ICT Transformation	-	-	-	-	-
Pension Fund Reserve	-	-	-	-	-
Sub Total	-	-	-	-	-

Total	1,286	18,394	(17,348)	(1,816)	516
	Movement in Unrestricted Funds 2021/22 Restated Balance 1st April 2021 Incoming Resources Resources Expended Transfers Between Funds Balance 31st March 2022


	£000’s	£000’s	£000’s	£000’s	£000’s
General Fund	907	19,149	(16,206)	(2,564)	1,286
Sub Total	907	19,149	(16,206)	(2,564)	1,286

Designated Funds
ICT Transformation	-	-	-	-	-
Pension Fund Reserve	(12,739)	4,005	(852)	9,586	-
Sub Total	(12,739)	4,005	(852)	9,586	-

Total	(11,832)	23,154	(17,058)	7,022	1,286

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.

0-19 Health

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

 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.

Note 18 - Restricted Funds continued

The movement in Restricted Funds during 2022/23 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 1st April 2022	Incoming Resources	Resources Expended	Transfers Between Funds	Balance 31st March 2023
	£000’s	£000’s	£000’s	£000’s	£000’s
Management Fee
MRR Fund	-	1,107	(1,582)	481	6
Asset Plan (Restricted Reserve)	481	-	-	(481)	-
Exercise on Referral	9	234	(230)	-	13
Redbridge Arts Grants	94	2	(95)	-	1
CPP Redbridge		269	(66)	-	203
Adult Activator	7	-	-	-	7
Music Bursary Fund	62	-	(62)	-	-
Cycle Quiet Ways	46	-	(46)	-	-
0-19 Health	19	-	-	-	19
Alice White Legacy		16	(16)	-	-
Claybury Park Dowry	50	-	(29)	-	21
	768	1,628	(2,126)	-	270
Service Grants
Drama ACE National Portfolio	-	66	(659)	593	-
Music Education Hub	-	487	(1,710)	1,223	-
	-	553	(2,369)	1,816	-
Other (Grants)
Arts	27	1	-	-	28
ACE Culture Recovery Fund	75	-	(75)	-	-
Libraries	371	198	(243)	-	326
Music Services	47	-	(12)	-	35
Parks	74	239	(300)	-	13
Sport and Health	210	274	(324)	-	160
	804	712	(954)	-	562

Total	1,572	2,893	(5,449)	1,816	832

Note 18 - Restricted Funds continued

Note 18 - Restricted Funds continued	Note 18 - Restricted Funds continued	Note 18 - Restricted Funds continued	Note 18 - Restricted Funds continued	Note 18 - Restricted Funds continued	Note 18 - Restricted Funds continued

	Movement in Restricted Funds
	Balance 1st April 2021	Incoming Resources	Resources Expended	Transfers Between Funds	Balance 31st March 2022
	£000’s	£000’s	£000’s	£000’s	£000’s
Management Fee
MRR Fund	170	1,107	(1,279)	2	-
Asset Plan (Restricted Reserve)	483	-	-	(2)	481
Exercise on Referral	4	199	(194)	-	9
Redbridge Arts Grants	75	33	(14)	-	94
Adult Activator	9	-	(2)	-	7
Music Bursary Fund	62	-	-	-	62
Cycle Quiet Ways	46	-	-	-	46
0-19 Health	19	-	-	-	19
Alice White Legacy	-	-	-	-	-
Claybury Park Dowry	57	-	(7)	-	50
	925	1,339	(1,496)	-	768
Service Grants
Drama ACE National Portfolio	-	65	(1,333)	1,268	-
Music Education Hub	-	488	(1,784)	1,296	-
	-	553	(3,117)	2,564	-
Other (Grants)
Arts	7	20	-	-	27
ACE Culture Recovery Fund	185	191	(301)	-	75
Corporate	-	-	-	-	-
Libraries	192	267	(88)	-	371
Museum	-	-	-	-	-
Music Services	35	12	-	-	47
Parks	33	101	(60)	-	74
Sport and Health	164	138	(92)	-	210
	616	729	(541)	-	804

Total	1,541	2,621	(5,154)	2,564	1,572

Note 19 - Analysis of Net Assets Between Funds

Note 19 - Analysis of Net Assets	Between Funds	Between Funds
	Unrestricted Funds		Restricted Funds	Total
	General	Designated
	£000’s	£000’s	£000’s	£000’s
Fund Balances at 31st March 2023 are represented by:
Tangible Assets ( Net book values)	-	-	1,307	1,307
Current Assets / (Liabilities)	516	-	(475)	41
Provisions	-	-	-	-
Total	516	-	832	1,348

Fund Balances at 31st March 2022 were represented by:
Tangible Assets ( Net book values)	-	-	1,217	1,217
Current Assets / (Liabilities)	1,286	9,586	355	11,227
Provisions	-	(9,586)	-	(9,586)
Total	1,286	-	1,572	2,858

Note 20 - Lease Commitments

Total payments of £136,132.87 relating to operating leases were made in 2022/23 (£120,837.90 2021/22). There are no Finance Leases. Outstanding commitments under non-cancellable Operating Leases at the end of the financial year were as follows:

	31st March 2023	31st March 2022
	£000’s	£000’s
Expiry Date:
Within One Year	71	84
Between One and Five Years	58	105

Total	129	189

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