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2020-09-30-accounts

Charity Registration No. 1138230

Company Registration No. 07171668 (England and Wales)

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Nene Park Trust L Cooke

Secretary

Secretary M Bradbury Charity number 1138230 Company number 07171668 Registered office Ham Farm House Ham Lane Orton Waterville Peterborough United Kingdom PE2 5UU

(Appointed 30 November 2020) (Appointed 30 November 2020)

Auditor Azets Audit Services Ruthlyn House 90 Lincoln Road Peterborough United Kingdom PE1 2SP

Bankers

Barclays Bank PLC Cathedral Square Peterborough United Kingdom PE1 1HW

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') CONTENTS

Page
Trustees' report 1 - 4
Statement of Trustees' responsibilities 5
Independent auditor's report 6 - 7
Statement of financial activities 8
Balance sheet 9 - 10
Statement of cash flows 11
Notes to the financial statements 12 - 32

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

The Trustees present their report and accounts for the 18 months ended 30 September 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016) .

These accounts cover an 18 month period to include the notice period given by Vivacity to terminate its contract with Peterborough City Council on 30 September 2020.

On 18 June 2020, as a direct result of the financial impact of Covid-19, Vivacity announced that it was terminating its contract with Peterborough City Council. This triggered a 90-day transition period during which Vivacity worked with the Council to transfer back the services covered by the contract, including 10 libraries, the Key Theatre, museum, Lido, Flag Fen, Regional Pool and the health and leisure facilities at Bretton, Dogsthorpe, Hampton, Netherton, Orton and Werrington.

The announcement of the national lockdown on 20 March 2020 resulted in the closure of all of Vivacity's facilities and services and 98% of its c500 employees were placed on furlough. This had a devastating impact on the charity's revenue with an estimated £8m loss of annualised income. In addition, the trustees expected a slow return to previous volumes of gym usage which drove the bulk of the income to support Vivacity's full range of services. The leisure/fitness sector was widely predicting customer volume and revenue would be down by as much as 50% with recovery taking up to 18 months from the lifting of lockdown restrictions. There would also have been significant costs of re-opening and likely ongoing loss of income with social distancing restrictions reducing capacities. The sudden shock of the Covid 19 lockdown came alongside the wellpublicised budget pressures of the Council that had resulted in continued reductions in its contributions to Vivacity.

Vivacity's trustees at the time could not see a viable future that would enable Vivacity to continue to deliver its charitable objectives to promote health and well-being and arts and culture in the city. The trustees recognised how vital culture and leisure services are to the people of Peterborough. The decision was made with enormous regret and only after exhaustive efforts had been made to find a way forward that could have guaranteed a sustainable future for the charity and the services it provides. The trustees concluded that the only option for Peterborough and for the charity's employees was to give notice to terminate the contract with the Council as of 18 June 2020. Vivacity was not insolvent and has had sufficient financial reserves to manage the transfer of the contract back to the Council and to honour all outstanding financial commitments.

Since its creation in 2010 Vivacity has worked with many partners to deliver a greatly enhanced leisure and cultural offer for Peterborough. A recent independent study calculated that the charity contributed £60 million of social value for the city every year. Over that time, it also increased its revenues by 177% and enabled a 70% reduction in Council funding. Vivacity's services attracted over 1.8 million visits a year. Peterborough has also benefitted as while others have seen library closures, Vivacity was opening more of them, including the book bus.

Vivacity's lead role in the consortium running the Peterborough Presents project was transferred to Nene Park Trust in August 2020. The activities outside of the contract with Peterborough City Council comprising the Peterborough Sculpture Collection, the Lost World soft play and climbing centre and Longthorpe Tower, remain within Peterborough Culture and Leisure Trust.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)

FOR THE PERIOD ENDED 30 SEPTEMBER 2020

Objectives and activities

The Trustees confirm they have considered their duties and have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities.

The Trustees are confident that the activities of Vivacity are carried out for the benefit of others as is detailed in the rest of the information within the Trustees report.

Peterborough Culture and Leisure Trust's mission is to inspire people through culture, sport and healthy living to make Peterborough a better place to live and work.

The principal activities of the trust operating as Vivacity have been :

Museums, Libraries and Archives

Until 30 September 2020 Vivacity managed ten libraries, twenty micro libraries, a mobile service covering routes across Peterborough, a Book Bus for children in Peterborough schools, as well as all archives services.

Vivacity's museums and heritage service has operated from three sites; the historic city centre Museum, the Bronze Age site at Flag Fen and the 14th century Longthorpe Tower which displays one of the most complete and important sets of 14th century domestic wall paintings in Northern Europe. Vivacity has delivered a Heritage Festival and engaged with schools to help deliver the national curriculum to bring history to life for Key Stage one and two students. The museum and heritage team have organised historically themed tours and ghost walks.

Vivacity's museums and heritage service operates from three sites; the historic city centre Museum, the Bronze Age site at Flag Fen and the 14th century Longthorpe Tower which displays one of the most complete and important sets of 14th century domestic wall paintings in Northern Europe. Vivacity delivers a Heritage Festival in collaboration with the Peterborough Cathedral, is working with the Natural History Museum to deliver a schools and museum programme for a further year and engages with schools to help deliver the national curriculum to bring history to life for Key Stage one and two students. The museum and heritage team organise historically themed tours and ghost walks throughout the year and have recently opened 'Escape Rooms' in the cellars of the Museum building.

Sports and Leisure

Vivacity has managed seven well-equipped leisure centres across Peterborough, a hydrotherapy pool, outdoor swimming centre and a splash park providing opportunities for vigorous and gentle exercise in a competitive or non-competitive environment. A wide range of activities has been made available including fitness classes, swimming, indoor and outdoor courts and pitches, and supervised gym facilities.

The Vivacity Swim Academy (learn to swim programme) recognises swimming is an important skill, and has offer ed teaching programmes for people of all ages and abilities.

Vivacity has also provide d a dedicated sports development team to get young people and adults more involved in sports to encourage both active and healthy lifestyles. This has been achieved through either participation or coaching, and has i nclude d a dedicated member of staff whose role has been to create new sporting opportunities for people with disabilities.

Our health and well-being team has work ed closely with people who suffer wide ranging health conditions which limit their access to mainstream services. A comprehensive exercise referral programme coupled with condition specific rehabilitation classes have been provided to those people to maintain and improve their health and well-being.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)

FOR THE PERIOD ENDED 30 SEPTEMBER 2020

Theatre and Arts

Vivacity has managed the Key Theatre, City Gallery and arts events and festivals. Vivacity has delivered a diverse programme of arts development projects throughout the year and across the city.

Strategic report

The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the Trustees to present a strategic report.

Achievements and performance

Museums, Libraries and Archives

The Museum continued to develop award winning exhibitions during this period, including the Nick Sherratt exhibition which attracted more than 2,000 children over a single weekend.

The Heritage Festival attracted over 30,000 people to the city centre and remains the larges city centre heritage festival in the country.

Sports and Healthy Living

Gym membership continued to decline slightly after the considerable growth over recent years and following increased competition in the market. Swimming, particularly through the Swim Academy, continued to grow.

During the year the commercial department was established which led to the involvement of local companies in a number of the charity's activities and the establishment of the Lost World soft play and climbing centre at Serpentine Green which opened briefly in March 2020 before being forced to close for the rest of this reporting period.

Theatre and Arts

Key Theatre attendances were up and the Key was making progress towards achieving a break-even position excluding marketing costs. In partnership with Live Promotions, Vivacity invested in saving the city's Firework Fiesta through a joint promotion which attracted 8,000 attendees.

Financial review

During the 11 months until lockdown restrictions were imposed by the government in March 2020, the charity continued to engage in all its activities as usual. During this period, and as a result of the substantial investment made in the previous year, the charity was on target to reduce its losses and to become selfsufficient within three years. Following the lockdown in March 2020 and the termination of the contract with the Council, Vivacity transferred the assets and liabilities relating to this contract to Peterborough City Council on 30 September 2020 leaving the charity with a balance sheet of £1, excluding the value of the Sculpture Collection, as at 30 November 2020.

Full details of our financial performance during the period are shown in the notes to the financial disclosures, balance sheet and cash flow statements.

Whilst these accounts show net assets of £2,037,937 as at 30 September 2020, when the transfer to Peterborough City Council is taken into account, excluding the Sculpture Collection, the net asset position is reduced to £1 as at 30 November 2020. The trustees will consider a new reserves policy now that the charity has divested itself of most of its previous activities.

The Board of Trustees has regularly reviewed the key risks that the charity has faced. When the lockdown was imposed and the business was forced to close the trustees were able to manage the financial risk appropriately, pay all of Vivacity's debts and ensure a smooth handover of the main contract to Peterborough City Council. The charity was also able to continue to operate through the takeover of the remaining activities by Nene Park Trust.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

Structure, governance and management

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Theo Anderton (Resigned 30 November 2020) David Bath (Resigned 23 March 2020) Stewart Francis (Resigned 30 November 2020) Sarah Sewell (Resigned 30 November 2020) Steve Allen (Resigned 1 June 2020) Ian Templeton (Resigned 30 November 2020) June Bull (Resigned 30 November 2020) Shazia Bashir (Resigned 1 June 2020) Karen Oldale (Resigned 18 March 2020) Matthew Dalton (Resigned 30 November 2020) Nigel Hards (Resigned 30 November 2020) Caroline Connaughton (Resigned 30 November 2020) Nene Park Trust (Appointed 30 November 2020) Linda Cooke (Appointed 30 November 2020)

The organisation is a charitable company limited by guarantee, incorporated on 26 February 2010 and registered as a charity on 4 October 2010. Peterborough City Council transferred its cultural and leisure services, comprising of arts, libraries, heritage, theatre, sport and leisure into the charitable trust on 1 May 2010.

The organisation was established under a Memorandum of Association which established the objects and powers of the organisation and is governed under its Articles of Association.

Revised Articles of Association were adopted by the Board on 23 November 2020 to enable Nene Park Trust to become the corporate trustee and take control of the charity with effect from 30 November 2020. It was further agreed to change the name of the charity to Peterborough Culture and Leisure Trust.

During the period the Trustees were also the legal members of the charity. With effect from 30 November 2020 Nene Park Trust became the corporate member of Peterborough Culture and Leisure Trust and guarantees to contribute £1 in the event of winding up.

Related parties

A summary of transactions with related parties are set out in note 30 in the financial statements.

Auditor

On 7 September 2020 Group Audit Services Limited trading as Baldwins Audit Services changed its name to Azets Audit Services Limited. The name they practice under is Azets Audit Services and accordingly they have signed their report in their new name.

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

On behalf of the board of Trustees

L Cooke

Trustee Dated: 24 June 2021

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE PERIOD ENDED 30 SEPTEMBER 2020

The Trustees, who are also the directors of Peterborough Culture and Leisure Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these accounts, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF PETERBOROUGH CULTURE AND LEISURE TRUST

Opinion

We have audited the financial statements of Peterborough Culture and Leisure Trust (the ‘charity’) for the period ended 30 September 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements 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.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF PETERBOROUGH CULTURE AND LEISURE TRUST

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have 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.

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

Mr Mark Jackson FCA DChA (Senior Statutory Auditor)
for and on behalf of Azets Audit Services 28 June 2021
Chartered Accountants
Statutory Auditor Ruthlyn House
90 Lincoln Road
Peterborough
United Kingdom
PE1 2SP

Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 30 SEPTEMBER 2020

Unrestricted Designated
funds
funds
2020
2020
Notes
£
£
Income from:
Voluntary income
3
2,196,622
-
Charitable activities
4
11,525,175
-
Investments
5
4,649
-
Total income
13,726,446
-
Expenditure on:
Fundraising and
publicity
6
148,960
-
Charitable activities
7
13,951,958
-
Net interest on defined
benefit pension scheme
-
(22,000)
Other
11
-
(582,000)
Total resources
expended
14,100,918
(604,000)
Net outgoing resources
before transfers
(374,472)
604,000
Gross transfers
between funds
229,000
(229,000)
Net outgoing resources
(145,472)
375,000
Other recognised gains and losses
Actuarial (loss)/gain on
defined benefit pension
schemes
-
(812,000)
Net movement in funds
(145,472)
(437,000)
Fund balances at 1 April 2019
338,909
437,000
Fund balances at 30
September 2020
193,437
-		 Restricted Endowment
funds
funds:
Sculptures
2020
2020
£
£
3
-
727,763
-
-
-
727,766
-
-
-
818,234
-
-
-
-
-
818,234
-
(90,468)
-
-
-
(90,468)
-
-
-
(90,468)
-
90,468
1,844,500
-
1,844,500		 Total
2020
£
2,196,625
12,252,938
4,649
14,454,212
148,960
14,770,192
(22,000)
(582,000)
14,315,152
139,060
-
139,060
(812,000)
(672,940)
2,710,877
2,037,937		 Total
2019
£
13,414
10,811,184
4,391
10,828,989
99,929
11,439,639
(8,000)
-
11,531,568
(702,579)
-
(702,579)
233,000
(469,579)
3,180,456
2,710,877

The statement of financial activities includes all gains and losses recognised in the period.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') BALANCE SHEET

AS AT 30 SEPTEMBER 2020

Notes
Fixed assets
Tangible assets
13
Heritage assets
14
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
20
Net current assets/(liabilities)
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
21
Net assets excluding pension (liability)/surplus
Defined benefit pension (liability)/
surplus
23
Net assets
Capital funds
Endowment funds - general
24
Income funds
Restricted funds
25
Unrestricted funds
Designated funds
26
General unrestricted funds		 2020
2019
£
£
£
£
324,054
798,159
1,844,500
1,844,500
2,168,554
2,642,659
96
60,528
321,265
522,369
206,790
1,630,914
528,151
2,213,811
(378,680)
(2,582,593)
149,471
(368,782)
2,318,025
2,273,877
(280,088)
-
2,037,937
2,273,877
-
437,000
2,037,937
2,710,877
1,844,500
1,844,500
-
90,468
-
437,000
193,437
338,909
193,437
775,909
2,037,937
2,710,877

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') BALANCE SHEET (CONTINUED)

AS AT 30 SEPTEMBER 2020

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the period ended 30 September 2020, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 24 June 2021

L Cooke

Trustee

Company Registration No. 07171668

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 30 SEPTEMBER 2020

Notes
Cash flows from operating activities
Cash absorbed by operations
31
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash used in investing activities
Financing activities
Proceeds from borrowings
Repayment of borrowings
Payment of obligations under finance
leases
Net cash generated from/(used in)
financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period		 2020
£
£
(1,407,103)
(370,598)
4,649
(365,949)
386,000
(35,384)
(1,688)
348,928
(1,424,124)
1,630,914
206,790		 2019
£
£
(82,262)
(496,686)
4,391
(492,295)
-
-
-
-
(574,557)
2,205,471
1,630,914

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2020

1 Accounting policies

Charity information

Peterborough Culture and Leisure Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Ham Farm House, Ham Lane, Orton Waterville, Peterborough, PE2 5UU, United Kingdom.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2

Reporting period

These financial statements have been prepared for a period longer than 12 months, from 1 April 2019 to 30 September 2020.

1.3 Going concern

The financial statements have been prepared on a going concern basis. Vivacity ha d a contract to deliver culture and leisure services on behalf of Peterborough City Council which commenced in May 2010 for a period of 20 years with an option to extend for a further 5 years to 2035. However, due to the impact of the coronavirus the contract was ended and the underlying assets and activities passed back to the Council. Following the end of the year agreement was reached with the Council to ensure that the charity remained solvent and that legal control of the charity pass to Nene Park Trust to continue operating the remaining activity of the charity.

Nene Park Trust are currently underwriting the remaining activities of the charity and on that basis the trustees are confident that the charity will continue to operate for the foreseeable future, although on a significantly smaller scale and therefore the accounts have been prepared on a going concern basis.

1.4 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Designated funds include a contingency fund to safeguard against unforeseen shortfalls or changes in the funding services and programmes. This is in line with the charity's reserves policy.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

1.5 Incoming resources

Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable. The value of services provided by volunteers has not been included.

Grants - fixed asset grants are recognised in full in the Statement of Financial Activities when the condition has been met and the asset has been purchased. Revenue grants are normally conditional upon a programme of activities and events being delivered, and are recognised in the Statement of Financial Activities when the activity or event has been delivered.

Income from investments is included in the year in which it is receivable.

Incoming resources from charitable activities includes sales of services and miscellaneous income from the public for accessing culture and leisure activities, in addition to the Management Service fee received from Peterborough City Council.

1.6 Resources expended

Central support costs are apportioned over services in relation to the services direct costs.

Resources expended are recognised in the year in which they are incurred. Resources expended include attributed VAT that is not recoverable. Resources expended are allocated to the particular project where the project cost relates directly to that project. However, the cost of overall direction and administration on each project, comprising the salary and overhead costs of the central function, is estimated and apportioned to each project.

Charitable activities are those costs incurred directly in furtherance of the objects of the charity and include project management.

Governance costs are those costs incurred in connection with the strategic management of Peterborough Culture and Leisure Trust . These include auditors fees, costs of holding Trustees board and sub-committee meetings, recruitment of new Trustees and business development.

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings 7% - 20% straight line Plant and machinery 10% - 33% straight line Fixtures, fittings & equipment 33% straight line Motor vehicles 10% - 14% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

The charity has a capitalisation policy in place for any expenditure over £5,000.

The financial statements do not include the cost of land, buildings and equipment used at minimal rent by Peterborough Culture and Leisure Trust , whose title rests with Peterborough City Council. It is not practicably possible to attribute a value to this benefit.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

1.8 Heritage assets

Heritage assets (sculptures) have been valued in the accounts at their market value as at September 2012. An annual review of each sculpture will be carried out to identify any indications of impairment.

1.9 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.10 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.11 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

1.13 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Peterborough Culture and Leisure Trust operates a defined contribution scheme for all new employees and a defined benefit scheme for employees in post to 1 May 2010 and who were a member at the time of the Cambridgeshire Local Government Pension scheme, both of which require contributions to be made to separately administered funds.

Contributions in respect of the defined contribution scheme are charged to the income and expenditure account as they become payable in accordance with the scheme rules.

Contributions to the defined benefit scheme are charged to the income and expenditure account so as to spread the cost over the employees' working lives with Peterborough Culture and Leisure Trust .

1.15 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

3 Voluntary income

Unrestricted
funds
2020
£
Donations and gifts
17,487
Coronavirus Job Retention Scheme grants
1,979,135
Other government grants
200,000
2,196,622
For the period ended 31 March 2019
13,414
Charitable activities
Sports Services
Arts
Museums, Libraries and Archives
Management Service Fee
Service Level Agreements
Theatre
Lost World
Analysis by fund
Unrestricted funds
Restricted funds		 Restricted
funds
2020
£
3
-
-











3
-

4 Charitable activities

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

5 Investments

Unrestricted
funds
2020
£
Interest receivable
4,649
6
Expenditure on fundraising and publicity
2020
£
Other fundraising costs
40,066
Staff costs
89,728
Support costs
16,902
Governance costs
2,264
148,960
For the period ended 31 March 2019
Fundraising and publicity		 Total
2019
£
4,391
2019
£
20,423
64,666
14,840
-
99,929
99,929

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE PERIOD ENDED 30 SEPTEMBER 2020

7 Charitable activities

Staff costs
Depreciation and impairment
Other costs
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds
For the period ended 31 March 2019
Unrestricted funds
Restricted funds		 MLA
£
1,766,878
36,572
749,353
2,552,803
325,312
43,572
2,921,687
2,462,013
459,674
2,921,687
2,058,670
504,980
2,563,650		 Sports
services
£
5,031,137
230,311
2,373,510
7,634,958
973,972
130,453
8,739,383
8,645,455
93,928
8,739,383
6,176,361
133,327
6,309,688		 Arts
£
186,189
-
280,747
466,936
60,807
8,144
535,887
271,255
264,632
535,887
165,517
232,483
398,000		 Theatre
Business
development
£
£
595,708
544,683
33,591
35,677
863,528
171,330
1,492,827
751,690
192,001
97,889
25,716
13,112
1,710,544
862,691
1,710,544
862,691
-
-
1,710,544
862,691
1,757,384
374,323
36,594
-
1,793,978
374,323		 Total
2020
Total
2019
£
£
8,124,595 5,413,026
336,151
196,212
4,438,468 4,142,208
12,899,214 9,751,446
1,649,981 1,533,906
220,997
154,287
14,770,192 11,439,639
13,951,958 10,532,255
818,234
907,384
14,770,192 11,439,639
10,532,255
907,384
11,439,639

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

8 Support costs

Staff costs
ICT
Legal services
HR and payroll
Other costs
Analysed between
Fundraising
Charitable activities		 Support
costs
Governance
costs
£
£
605,666
201,888
731,261
-
18,648
-
225,121
-
86,187
21,373
1,666,883
223,261
16,902
2,264
1,649,981
220,997
1,666,883
223,261		 2020
£
807,554
731,261
18,648
225,121
107,560
1,890,144
19,166
1,870,978
1,890,144		 Support
costs
Governance
costs
£
£
429,353
143,118
514,011
-
29,368
-
163,679
-
410,979
12,525
1,547,390
155,643
13,484
1,356
1,533,906
154,287
1,547,390
155,643		 2019
£
572,471
514,011
29,368
163,679
423,504
1,703,033
14,840
1,688,193
1,703,033

Governance costs include payments to the external auditors of £ 18,375 (201 9 : £ 10 , 8 00) for audit fees.

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration during this or the prior period .

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

10 Employees

Number of employees

The average monthly number employees during the period was:

Museums, Libraries and Archives
Sports Services
Arts
Theatre
Support
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
97
324
21
25
30
497
2020
£
8,191,411
446,403
384,063
9,021,877		 2019
Number
108
331
23
28
28
518
2019
£
5,501,472
315,684
233,007
6,050,163

Included in the above are redundancy costs of £8,380 (2019 - £115,676), which relates to one employee (2019 - two employees).

The number of employees whose annual remuneration was £60,000 or more were:

2020 2019
Number Number
60,000 to 70,000 1 2
100,000 to 110,000 - 1
120,000 to 130,000 - 1

Of the employees whose emoluments exceed £60,000, 1 (2019: 1) ha d retirement benefits accruing under defined benefit pension schemes.

11 Other

Designated
funds
2020
£
Movement on pension liability
(582,000)
(582,000)		 Total
2019
£
-
-

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

11 Other

(Continued)

On 30 September 2020 all employees within the defined benefit pension scheme were transferred to another employer as part of the transfer of activities of the organisation. At this point the charity ceased to be an active employer within the scheme. Consequently the liability from the scheme's valuation has now be written off in the period and disclosed within other expenditure.

12 Taxation

Given that the primary objective of the charitable company is charitable and the charitable company is not trading for profit, the charitable company is exempt from taxation under section 505 of ICTA 1988.

13 Tangible fixed assets

Cost
At 1 April 2019
Additions
Disposals
At 30 September 2020
Depreciation and impairment
At 1 April 2019
Depreciation charged in the period
Eliminated in respect of disposals
At 30 September 2020
Carrying amount
At 30 September 2020
At 31 March 2019		 Land and
buildings
Plant and
machinery
£
£
99,716
1,856,158
-
364,954
(99,716) (1,881,494)
-
339,618
30,055
1,255,278
8,908
278,605
(38,963) (1,500,400)
-
33,483
-
306,135
69,661
600,880		 Fixtures,
fittings &
equipment
Motor vehicles
Total
£
£
£
428,906
100,851
2,485,631
20,114
-
385,068
(428,906)
(100,851)
(2,510,967)
20,114
-
359,732
381,001
21,138
1,687,472
33,665
14,973
336,151
(412,471)
(36,111)
(1,987,945)
2,195
-
35,678
17,919
-
324,054
47,905
79,713
798,159

14 Heritage assets

The heritage assets are a collection of 26 sculptures which were donated from the Peterborough Sculpture Trust on 31 March 2014. T he assets have been valued and a full conditions survey conducted in September 2012 by Rupert Harris Conservation at £1,844,500. An interim valuation on all 26 sculptures in the range was carried out in March 2018 with no impairment of these items noted. The collection ranges in size and material, most of which are on permanent display around the city of Peterborough. The sculptures can only be sold to develop the collection further, and to advance the education and enjoyment of the public in art by placing, maintaining and promoting the collection in public places.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

15
Financial instruments
Carrying amount of financial assets
Trade Debtors
Cash
Other debtors
Accrued income
Carrying amount of financial liabilities
Trade creditors
Other creditors
Accruals
16
Stocks
Finished goods and goods for resale
17
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
18
Loans and overdrafts
Other loans
Payable within one year
Payable after one year		 2020
£
23,557
206,790
136,821
160,887
528,055
30,052
-
83,215
113,267
2020
£
96
2020
£
23,557
136,821
160,887
321,265
2020
£
350,616
80,416
270,200		 2019
£
342,650
1,630,914
49,738
81,903
2,105,205
863,790
201,180
732,728
1,797,698
2019
£
60,528
2019
£
342,650
49,738
129,981
522,369
2019
£
-
-
-

The loan is repayable biannually and interest is paid biannually at a rate of 3.1%.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

19 Hire purchase commitments

Future minimum lease payments due under hire purchase agreements:

Within one year
Within two and five years		 2020
£
2,894
9,888
12,782		 2019
£
-
-
-

Hire purchase payments represent rentals payable by the charity for certain items of plant and machinery. Interest rates are fixed at the contract date. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20 Creditors: amounts falling due within one year

Notes
Obligations under finance leases
19
Borrowings
Other taxation and social security
Deferred income
22
Trade creditors
Other creditors
Accruals
Creditors: amounts falling due after more than one year
Notes
Obligations under finance leases
19
Borrowings		 2020
£
2,894
80,416
129,553
52,550
30,052
-
83,215
378,680
2020
£
9,888
270,200
280,088		 2019
£
-
-
200,011
584,884
863,790
201,180
732,728
2,582,593
2019
£
-
-
-

21 Creditors: amounts falling due after more than one year

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

22 Deferred income

Deferred grants and income in advance
Deferred income is included in the financial statements as follows:
Current liabilities		 2020
£
52,550
52,550		 2019
£
584,884
584,884

23 Retirement benefit schemes

Peterborough Culture and Leisure Trust offers a defined contribution scheme for all employees who are not members of the defined benefit scheme. Contributions are made to a separately administered fund.

Contributions in respect of the defined contribution scheme are charged to the income and expenditure account as they become payable in accordance with the scheme rules. The employer's contribution is a maximum of 6%.

The charge to profit and loss in respect of defined contribution schemes was £200,440 (2019 - £92,030).

Defined benefit schemes

Peterborough Culture and Leisure Trust participate d in the Cambridgeshire Local Government Pension Scheme. The Scheme is funded and is contracted out of the state scheme. This scheme has been closed to all new employees with effect from 1 May 2010. The employer's contribution is 18.8 %. As at 30 September 2020 all employees have been transferred to Peterborough City Council. The scheme liability at 30 September 2020 has been written off to other expenditure in the statement of financial activities on the basis that the charity no longer has any benefit or liability in respect of the scheme.

The Cambridgeshire Local Government Pension Scheme, a final salary defined benefit scheme, is administered in accordance with the Local Government Pension Scheme Regulations 2007.

The assets of the scheme are invested and managed independently of the finances of the Charity. The pension costs relating to this scheme is calculated on the projected unit method and is assessed with the advice of a qualified actuary. The latest actuarial valuation of this scheme was on 30 September 2020 and was carried out by Hymans Robertson LLP, an independent actuary.

Key assumptions

Key assumptions
2020 2019
% %
Discount rate 1.6 2.5
Expected rate of increase of pensions in payment 2.1 2.4
Expected rate of salary increases 2.6 2.7

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

23 Retirement benefit schemes

(Continued)

Mortality assumptions
T he assumed life expectations on retirement at age 65 are:
Retiring today
- Males
- Females
Retiring in 20 years
- Males
- Females
Amounts recognised in net incoming/(outgoing) resources:
Current service cost
Net interest on defined benefit liability/(asset)
Other costs and income
Total costs/(income)
Other recognised gains and losses:
Actual return on scheme assets
Less: calculated interest element
Return on scheme assets excluding interest income
Actuarial changes related to obligations
The amounts included in the balance sheet arising from the charity's
obligations in respect of defined benefit plans are as follows:
Present value of defined benefit obligations
Fair value of plan assets
Deficit/(surplus) in scheme		 2020
2019
Years
Years
22.0
21.5
24.0
23.5
22.7
22.4
25.5
24.9
2020
2019
£
£
415,000
298,000
(22,000)
(8,000)
(582,000)
30,000
(189,000)
320,000
2020
2019
£
£
(1,161,000)
(872,000)
512,000
358,000
(649,000)
(514,000)
1,461,000
281,000
2020
2019
£
£
-
13,749,000
-
(14,186,000)
-
(437,000)

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

23 Retirement benefit schemes

(Continued)

Movements in the present value of defined benefit obligations:

Movements in the present value of defined benefit obligations:
2020
£
Liabilities at 1 April 2019 13,749,000
Current service cost 415,000
Benefits paid (226,000)
Contributions from scheme members 66,000
Actuarial gains and losses 1,461,000
Interest cost 490,000
Other (15,955,000)
At 30 September 2020 -
The defined benefit obligations arise from plans which are wholly or partly funded.
Movements in the fair value of plan assets:
2020
£
Fair value of assets at 1 April 2019 14,186,000
Interest income 512,000
Return on plan assets (excluding amounts included in net interest) 649,000
Benefits paid (226,000)
Contributions by the employer 186,000
Contributions by scheme members 66,000
Other (15,373,000)
At 30 September 2020 -
The fair value of plan assets at the reporting period end was as follows:
2020 2019
£ £
Equity instruments - 10,639,500
Debt instruments - 1,702,320
Property - 1,702,320
Cash - 141,860
- 14,186,000

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

24 Endowment funds

Endowment funds represent assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund. Whilst it is recognised that there are legal restrictions on the ability of a corporate entity to hold permanent endowments, these assets are treated as such in these accounts due to the conditions under which the assets were passed to the charity.

Movement in funds
Balance at Incoming Resources Balance at
1 April 2019 resources expended 30 September
2020
£ £ £ £
Permanent endowments
Sculpture collection 1,844,500 - - 1,844,500
1,844,500 - - 1,844,500

Refer to Note 14 Heritage Assets.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

25 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds
Balance at Incoming Resources Balance at
1 April 2019 resources expended 30 September
2020
£ £ £ £
Book fund 46,501 210,145 (256,646)
-
Museums, libraries and archives 43,967 159,061 (203,028)
-
Sports development - 93,928 (93,928)
-
Arts - 264,632 (264,632)
-
90,468 727,766 (818,234)
-

Book Fund

The funding and management agreement with Peterborough City Council, makes provision for the replenishment and update of library stocks and has ring fenced a proportion of the service fee to do so.

Museums, Libraries and Archives

Grants have been received from the Arts Council to support a number of projects which include Museum and Schools programme ‘ Real World Science’ working with the Natural History Museum to unlock the potential of natural science collection to enhance secondary science teaching and learning; Libraries Fund to improve reading and story-telling amongst families where English is their second language; Museums Small Capital Fund to improve the Museum’s Art Gallery security and from the Heritage Lottery Fund to digitize, research and explore two unique guest books from World War 1.

Sports Development

Grants have been received to support families and foster carers with disabled children to access cycling projects and for Vivacity to purchase specialist equipment to host the events. Grant funding was also received to contribute to and improve health and well being participation and opportunities for Over 55’s, 14-25 year olds, holiday activities, cycling and walking initiatives.

Arts

Grants have been received from the Arts Council and Peterborough City Council to deliver an arts development programme commencing 2013 to develop local artist talent and employability.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

26 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement in funds Movement in funds Movement in funds
Balance at Resources TransfersInvestments Balance at
1 April 2019 expended gains/ 30 September
losses 2020
£ £ £ £ £
Defined benefit pension scheme 437,000 604,000 (229,000) (812,000)
-
437,000 604,000 (229,000) (812,000)
-

During the year the LGPS defined benefit scheme was transferred to Peterborough City Council on the termination of the SLA.

27 Analysis of net assets between funds

Unrestricted
funds
Designated
funds
Restricted
funds
Endowment
funds
£
£
£
£
Fund balances at 30 September
2020 are represented by:
Tangible assets
324,054
-
-
-
Heritage assets
-
-
-
1,844,500
Current assets/(liabilities)
149,471
-
-
-
Long term liabilities
(280,088)
-
-
-
193,437
-
-
1,844,500		 Total
£
324,054
1,844,500
149,471
(280,088)
2,037,937

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

28 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 2020
£
1,044
3,828
-
4,872		 2019
£
482,564
1,874,637
4,620,000
6,977,201

29 Events after the reporting date

On 30 November 2020 agreement was reached with Peterborough City Council to ensure that the charity remained solvent. On the same day, Nene Park Trust, a separate charity, became the sole legal member of this charity in order to continue the remaining activities of the charity.

30 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel, which is also included in note 10 as employee costs, is as follows.

2020 2019
£ £
Aggregate compensation 230,395 390,765

In addition to the figures noted above the chief executive officer is contracted via a separate company at a cost of £ 268,593 (2019: £116,944) .

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

30 Related party transactions

(Continued)

Transactions with related parties

Owing to the nature of the charity's operations and the composition of the board of trustees being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the board of trustees may have an interest.

In particular the charity receives income for service delivery and has s ervice l evel a greements with Peterborough City Council, and the board of trustees includes representatives from the Council.

The financial statements do not include the cost of land, buildings and equipment used at minimal rent by Peterborough Culture and Leisure Trust , whose title rests with Peterborough City Council. It is not practicably possible to attribute a value to this benefit.

Peterborough Culture and Leisure Trust also managed funds on behalf of a consortium of voluntary organisations ‘Peterborough Presents...’, of which Peterborough Culture and Leisure Trust was the lead partner. Peterborough Culture and Leisure Trust receives a grant to deliver their part of the programme. This activity was transferred to Nene Park Trust in August 2020 and as at 30 September 2020 the charity held funds of £nil (2019 - £29,291) in a separate bank account on behalf of the consortium and these funds are not included in these accounts.

All other transactions involving such organisations are conducted in accordance with the charity's normal procurement procedures.

PETERBOROUGH CULTURE AND LEISURE TRUST (FORMERLY KNOWN AS 'VIVACITY CULTURE AND LEISURE') NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 30 SEPTEMBER 2020

31
Cash generated from operations
Deficit for the period
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Difference between pension charge and cash contributions
Movements in working capital:
Decrease/(increase) in stocks
Decrease in debtors
(Decrease)/increase in creditors
(Decrease)/increase in deferred income
Cash absorbed by operations
32
Analysis of changes in net debt
At
Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year
Obligations under finance leases		 2020
2019
£
£
139,060
(702,579)
(4,649)
(4,391)
336,151
196,212
(375,000)
179,000
60,432
(3,138)
201,104
84,740
(1,231,867)
121,238
(532,334)
46,656
(1,407,103)
(82,262)
1 April 2019
Cash flows At 30 September
2020
£
£
£
1,630,914
(1,424,124)
206,790
-
(80,416)
(80,416)
-
(270,200)
(270,200)
-
(12,782)
(12,782)
1,630,914
(1,787,522)
(156,608)