REGISTERED COMPANY NUMBER: 07219190 (England and Wales) REGISTERED CHARITY NUMBER: 1138947 REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 FOR SEVERN CENTRE TRUST LTD
SEVERN CENTRE TRUST LTD CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Page Raport of the Tru$te8s 1 to 5 R¢port of th• Independent Audltors Statgmgnt of Flnancial Actl¥ltles 10 Balanco Sheet 11 Notes to the Flnandal Stst8m8nts 12 to 21
SEVERN CENTRE TRUST LTD REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 The Iruslees. who are also directors of th8 charitable company for the purposes of Ihe Companies Act 2006, present their report with the finanual ststements of the charitab18 cornpany for the year ended 31 Decernber 2023. The Trustees have adopted the provisions of the Sialemenl of RQMMended Practice ISORPI IFRS1021 'AccUnting 8nd Reportng by Charities, leffeclive 1 January 20191. OBJECTIVES AND ACTIVITIES Objectives and aims The objeclg of the Charity are to carry ujl the following for thè benefit of th& communty wlhin the areas of Herefordshire, the Parish of Highley and the surrounding neighbourhoods, and suth other areas as the Trustees sh811 detemiine from time to time: to provid8 or assist in the promsion of facilities for re¢reation or other letsure time ¢UpatIOn in Ihe interests of social wfa with the intention of improving the condib'ons of life of those using the facilities. lo organise &v8nts for reGreation or leisure tirne occupation in the interests of soaal welfarè with the objècts of improving the conditions of life of those engaging in them. lo relieve the needs of people who are elderty, sid( or who have Fthysical or rnen181 disabilities, or who are from socially disadvantaged backgrounds trrough th8 promsion of r8crealional and Isure b'me activits'es. lo promot& and PTeserve good health amongst the population through exercise and sport. lo promote physical educalron and development amongst pupils and students al schools, colleges or establishments for the provision of further or higher education. lo advance education through the provision of libraries and other community and cullural facilrfies., and - lo cary OLrt any other charitab18 activity subjecl lo th6 prior written consent of the Charity Commission for England and Wales. Vision and mlsslon VISION,. Creating Healthier Communities MISSION: To make a sustainabl8 and positive difference lo the peo e in our communities by encouraging physical activity and h8allhi8r lifestyle. Strategic themes As a Sooal Enterprise, we take our ro18 wilhin the o)mmunilies we serve seriously and see soaal responsibility at the heart of all we do. Our four corwrale themes are.. 1, To provide a Custonr ExperienGe which exceeds expectations and attracts and r8tains customers in an in¢asInglY competilNè marketplace. 2, To deliver innovative prc¥Jucts for our cuslonrs and partners lo encourage heatthier Ilfestyles, drive revenue and combat competition. 3, Employ and reward PeOe vtho add value thrOh th&r skills, knthedge and rfomnce while delivering a lean workforce fit for fvlure ¢halleryJes. 4. To operate a finarrially sustsinable org8nisal.on which uses commercial principles to driv8 p8rfomiancè and achieve our VisKJn. Sevem Cenlre's two key themes for 2023 were.. 1. Achieving a greater public benefit by working wlh key partners, stskeholdets and funding organisalions lo increase partiapation in physical activity. 2. Developing he business. Page1
SEVERN CENTRE TRUST LTD REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 21J23 OBJECTIVES AND ACTIVITIES Publlc bènèflt The board of trus188s confimi that they have complied with the duties in Section 17151 of the Charities Act 201110 have due regard lo the Charity Commission's general guidance on public benefit. Wè hav8 referred lo the Charity Commission ggneral guidance on public benefit when rewewing our aims and objectives and in planning our future actNilies. In particular, the board of Iruslees consider how planned activities wll contribute to the aims and objectives that they have set. Diversity The charity has a strong commf(ment to diversity incjusion and engagement and, wa its parent tharity, works with partners to target groups and break down barriers to ath'wty and participalmjn, taking positive steps lo increase sentstion and pacIpatIon from under-repenIed groups, believing in a culture of safety, valu8 and ncluSion. The parenl charity, Halo Leisure Services Limited, has partnered with the Natial Centre for Diversity and has achieved th8 Investors in Dweryty Award. ACHIEVEMENT AND PERFORMANCE Charitable acvitIeS FUNDRAISING The Trustees are responsible for erBuring that the charity operates within a responsible, sustalnable finan¢Aal framework and that il has ad8quate resoUe$ lo cary out ils role in educating residents in the local community. While the Trustees may delegate n)any of the operations ol fundraising to other parts of the organisalion, they retain the responsibility for inspiring other fundraisers, d8monslrating the perceived importance of fundraising lo the organisab'on, and démonslrdting their leadership in this area. In cang out fundraising, Ihe charity adheres lo the following stsndar(Is.' The Trustees will have gard lo the Charity Commission's publicalion'charity Fundrai&ng' ICC201. FuThJraising activib'es carried out by Ihe charity will cornply wlh all relevant laws. - Any cornmunicab'ons to the public made while carrying gul a fundraising activity shall be thl and non- deceptive. - All monies raised via fundraising acbvits'es wll be for the stsled purpose of the apal and y17 comply vith the tharity's slated rnission and purpose. - The charity will comply with GDPR L8gislallon in relation lo all peTSonal data collected. Nobody directly or indirecuy employed by or volunle&ring for the charity shall accept commissions, bonuses or payments lor fundraising activities. No general solicilalions shall be undertaken by telephone or door-to400r. . Fundraising aclivitses should not be undertakèn if they may be detiimental lo the good name or Mmunity standing of ihe charity. - AJI Trustees, casual, pemanenl and contract stsff and volunteers are responsible for adheriro lo these proc&Jures. Fundraising activities should not be undertaken il they will expose thè charity to significant financial risk. Complaints will be dealt Mlh in accordance vith ihe Charity CommissiDns guide CC20. Page 2
SEVERN CENTRE TRUST LTD REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 FINANCIAL REVIEW Reserves policy The Iruslees recognise the need for a reasonable anUnt of financial reserves in order to protect the Iwsl from the possibility of any adverse or unforeseen c1rcumstsnS that could arise. The ¢urrent policy is the unreslri¢te(1 fvnd$ not committed or invested in tangible assets held by the trust should be between six and Ihirt8en weeks of the Irusl's annual expenditure on payToII costs, property cyerating expenses and administratron expenses. If Ih8re was lo occur a significant drop in funding, it has identified that the trust will need to have access lo unrestrided r8S@rv8S Wth a ¢urrenl value of al least £60,000 which represents thirteen weeks of the Irusl's annual expenses. The unrestn'cted reseTves CUTr&nUy stand al £66,616. The Trustees will reiew the policy to ensure il remains appropriate to the needs of the chariiable company. FUTURE DEVELOPMENTS 2023 Perf¢)rniance W11h increasing cornp81ition, changing Cust(er r8quirements, potential economic downlum, funding restrictic5, the fast moving pace of18thnology and ils impact how people consume leisure. Sevem Centre now faces signrficant st pr8ssures from staff costs, primarily increases driven by the Nalional Liwng Wage, general inflats'on and rnosl significanuy energy costs. The centre rfOrmed well during the year, opening the lido from May lo September, maintaining operational revenue and reduang costs. This achieved a P&L surplus. Looking fopHard to 2024 The most significant Change in 2024 is the investment in a GP surgery al the Sevem Centre, this investment estsNishes a long-lerm r8venue stream for the sile and also bolsters the community focus, enhancing the wellbeing environment for residents. In addition, there has also been invesknenl in gym kil and a refvrbishment of the gym space which enhances the member Bxperience. We expect lo generate a small P&L surplus during the year and maintain cash reserves. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document A partnership between Shrop8hire Council, Highl8y Parish Council and Halo Leisur8- Leading Leisure Tnjsl and Social EnleTPliSe. The S8V8m Centre Twsl became a charitable company limited by guarantee (Company no. 07219190. Charity no. 11389471 on 10 April 2010, rernaining dormant until 31 March 2011 when it took over by resolution, the assets, liabilities and undertakings of the Sevem Centre Trust (Charity no. 5225281. Witr effect from 1 October 2017 ownership of the company was transferred lo Halo Leisure Services Limited and new ae$ of association We adopted. Recruitment and appointment of ngw trustees The management of the charity is the responsibility of the INstees who are appnted under the terms of the memorandum and arlidgs of the Limited company. Halo Leisure Services Limited as the charitable cotnparry's 5018 memberappoinls the trustees, al leasl one of whom shall rt also be a trustee of Halo Leisure Services Limited. Induction and training of naw trustees I new Injslees receive Indtion training regarding the organisation including its powers and obl8cts and th& charitablè company itself. Severn Centre Advlsory Board The chariiable CLYnpany has 8stsblished an Advisory Board comprising trustees and representatives of the local comrnunity lo keep the community informed of key developrnenls and lo ensure the charitable company is aware of the concerns and interest of local p)ple. Page 3
SEVERN CENTRE TRUST LTD REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND MANAGEME Risk assessment The charitable company has developed a comprehensive risk r8gisler lo identify both the risks il faces and risk mitKJalion measure5. The document is r8viewed on a regular basi5 by Ihe trustees. REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 07219190 (England and Wales) Registered Charlty number 1138947 Registered office Lion Yard Broad Slreel LEOMINSTER HR6 8BT Trustees N A Sellar (resigned 31.8.231 MAWSalt KEBush E C Edginlon lappoinled1.2.241 J F Lee lappoinled 1.2.241 O R Whelan (appointed 1.2.24} Company Se¢rgtsry J G Huxley Auditors Mccabe Ford Williams Stslutory Auditors and Chartered Arxountants Building 1063 Comlorth Drive Kent Science Patk Sittingboum8 Kent ME9 8PX GOING CONCERN The finanaal statements have been prepared on a going concem basis as the Trustees believe that no Matla1 uncertainties 8XSt. The Trustees have considered the level of funds held and the expected level of income 8nd expenditure for 12 months from aulhorising these financial statements. The budgeted income and 8xpenditure is sufficient wlh the level of reserves for the charitable Company lo be able to continue as a going COnM. Page 4
SEVERN CENTRE TRUST LTD REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 TRUSTEES, RESPONSIBILITY STATEMENT The tmsle8s (who are also th8 directors of Sevem C6nlre Trust Lld for th8 purposes of company lawl are responsible for preparing the Report of Ihe Trustses and the financial stslements in accordance wlh applicable law and United Kingdom AGcounting Stsndards (United Kingdom Generally Accepted knownting Practice). Company law requires the trustees to prepare financial statements for each finanaal year which gNe a true and fair view of the stale of affairs of th8 charitab18 company and of the inc(xning r8sources and application of resources, iluding the income and expenditure, of the charitable company for that Feriod. In preparing those financial statements, the tnjstees are required lo selecl suitable ac£rAJnling Oicies and then apply them consislendy., - obseNe the methods and principles in the Charity SORP., - make judgements and estimates thal are reasonable and yudenl., prepare the finanrial ststemenls on the going concem basis unless il is inappropiiats to presume that the charitable ompany wll continue in business. The trustees are responsible for keeping proper arxounting records which disdose with reasonable accuracy al any tsme the financial posilK)n of the charitable cvmpany and lo enable them to ensure that the financial stslements comply with the Companies Act 2006. They are also resp)nsible for safeguarding the assets of the charitable ojmpany and hence for taking réasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Irustses are aware.. there is no relevant audit inf¢Jmalion of which the charitsble company's auditors 8re unaware,, and the trustees have tsken all steps that they ought to have tsken to make thèmsèlves awar8 of any relevant audit infornialion and lo establish that Ihe audiloTS are aware of that infomation. AUOITORS The auditor5, Mccabe Ford Williams, will be proposed for re-appoinlm&nl at the forthcoming Annual General Meeting. Approved by order ofthe board of trustees on ... .. and sgned on ils behalf by: Page 5
REPORT OF THE INDEPENDEKf AUDITORS TO THE MEMBERS OF SEVERN CENTRE TRUST LTD Opinion We have audited the financaal statements of Sevem Centre Trust Ltd Ilhe 'charitable o)mpanll for the year ended 31 Dec&rnber 2023 which comprise the Statement of Financial Ath'vitses, the Balance Sheet and notes lo the financial statements, including a summary of significant accountrng policies. The financial repoitng framwork that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accep18d Accounting Practice). In our opinion the finantial statements.. give a tnje and fair view of the stats of the charitable wmpanls affairs as at 31 December 2023 and of its incoming resources and applicathon of resources, including ils income and expenditure, for the year then ended,. have been prorRdy prepared in accordan with Unitsd Kingdom G8n8rally Accepted A¢cx)unling PracliLE,' and have been prepared in aOrdanCe with the requirements of the Companie5 Act 2006. Ba$is for opinion Wg conducted our audit in accordanGe with Inlemalional Standards on AudilirG IUKI IISAS IUKII and ap1¢able law. Our responsibilities under thos& stsndards are further described in th8 Audito, responsibilities for the audit of the financial statements section of our report. We ar8 independent of the charilable company in accordan rith the ethical requirernenls that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities In accordanc8 wlh these requirements. We believe that the audit ewdence we have (tsIned is suffiaent and akwropriate lo pfovide a basis for our opinion. Conclusions relating to going concem In auditing the financial slatwments, we have concluded that th& Iruslees, use of the going o)ncem basis of accounting in the preparati of the financial statements is appropriate. Basad on the wod( we have perfomed, we have not identified any material uncèrtainles relating to events or conditions that, individually or cdlectively, may cast significant doubl on the charitable companls ability to continue as a going concem for a period of al least twelve months from thgn the linanaal statements are authcfised for issue. Our responsibilities and the responsibilities of Ihe trustees vAih respect lo going concern a described in thè relevant sections ol this rert. Other inforn)ation The Iruslees are responsible for the other information. The other Infonal)n comprises the infomiats'on included in the Annual Report, other than the finanaal statements and our Report of the Independ&nl Auditors thereon. Our opinDn on the finanaal slalements does not cover the other information and, except lo the extent otherwise explicilty slated in our report, we do not express any form of assurance conclusion thereon. In connection our audit of th8 financial stslements, our responsibility is lo read the other infomation and, in doing so, ¢onsider whèther the other infomalion is rnalerially inconsislenl wlh the financial ststemenls or our knowledge obtained in Ihe audit or oth&Twise appears lo be materially misstated. If we identify such material inconsistencaes or apparent material misstatements, we are required to determine whether this gives rise lo a malerial misstalemenl in the finanaal stslements themselves. If, based on the work we have performed, we conclude that there is a material misstalement of this olh8r infonnation, we are required to report that fact. We have nothing lo rep(wi in this regard. Opinions on oth•r matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in th8 course of the audit.. the information given in the Report of the Trustees for the financol year for lch the financial statements are prepared is consistent ¥wth the financial stalemenls,. and the Report oflhe Trustees has been prepared in acthame with applicable legal requirements. Page 6
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SEVERN CENTRE TRUST LTD Mattèrs on whlch we are requlred to report by exceptlon In the Ih1 of the knowledge and understanding of the charitsble company and ts environment obtsined in the course of the audiL we have Thjl identifi'ed material misstslements in the Report of the Trustees. We have nothing to report in respect of the fdlowing matters vthere the Companies Act 2006 requires us to r8kKJrt to you rf, in our opinion.. adequate accounting records have not been kept or relums adequate for our audit have not been rec8ived from branches not visited by us., or the financial ststemenls are not in agreement bwlh the a¢untIng records and retums,. or ertain disclosures of trustees, remuneration speaf1 by law are not made,. or we have not received 811 the information and explanations we require for our audit., or th8 twslees were not ents'lled lo take advantage of the small companies èxemption from thè requirement to yepare a Stra18gic Report or in preparing the Report of the Tw51ees. Responsibilities of trustees As explained more fully in th& Trustees, Responsibilili8s Statement, thè Injslees (who arè also the dire¢tors of the chaThtsble company for the purposes of company lawl ar8 responsible for the preparation of the financial ststements and for being satisfied that they gw8 a true and fair view, and for such intsmat control as thg Iruslees delenmine iq necessary to enable Ihe prepardlion of financial statements that are free from material misstatemen( whether due to fraud or error. In preparing the ffinancial statements, the Iruslees are responsible for assessing the Charitab rJ)mpany's ability to nlinue as a going concem, disdosing, as apiCable, matters related lo going concam and using the going ¢on¢em basis of accounting unless the Iruste&s either intend lo liquidaie the charitsble LJ)mpany or to cease operations, or have no realistic altemative but to do so. Page 7
REPORT OF THE INDEPENDEr AUDITORS TO THE MEMBERS OF SEVERN CENTRE TRUST LTD Our responsibilities for th& audlt of the financial statement5 Our objectives are to obtain reasonable assurance about whether the finanaal slalements as a whole are free from aterial misststernenl, whether due lo fraud or error, and to ISSU8 a R8PQrt of the Ind8pendenl Auditors that indudes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordan with ISAS IUKI will always detect a rnalerial misstslemenl then il exists. Misstatements can arise from fraud or error and arg considered material if, individua11y or in the aggregate, they could reasonably b8 8xpected to influenc8 the economic decisions of users taken on the basis of these finanaal statements. The exlenl lo which our procedu$ a capab18 of detecting irregularities, induding frdud is detailed telow.. Our approach lo identifying and assessing the risks of material misststemenl in respect of irregulanties, induding frau¢J and non-cornpliance with laws and regulations, was as foll¢Jws'. - the engagement partner ensured that the engag&menl team collectively had the appropriate Competence, capabilities and skills lo identify or recojnise non-compliance with applicable laws and regulations., - we identified the laws and regulati$ 8ppli¢able lo the charitsble company through discussiorfj with m8nagemenl and our experience of the sector., we focused on sperific laws and regulations which we ¢crf)sidered tnay have a direct material effect on financial stalernents or the operations of the charitabl& company including, bul not1imited lo, the UK charity tsx legislation., we assessed the exlenl of cornpliae with the laws and regulations id8nlified above through maknng enquiries of management., and identified laws and regulations were communicated wlhin the audrt team regularfy and the t8am r8mained aller b instance5 Of non-complianc4 throughout the audit. We assessed the suscepiibilty of th8 charitable companls financial statements lo material misstatem8nl, induding obtaining an understanding of how fraud might occur, by.. rnaking enquiries of management as to where th&y considered there was susceplibilily to fraud as well as their knowledge of actual, suspected and alleged fraud; - considering th8 intemal controls in plaGe lo mitigate risks of fraud and non-compliance wth laws and regulations. To address the risk of fraud through management bias and override of controls, we.. performed analwj'cal procedures lo identify any unusual or unexpecl&J relationships; - tested joumal enlnès to identify unusual transactions., - rewewed managem&nl contacts where contract variations had arisen., assessed wther judgements and assumptions made in determining th& accounting 8stimales set out in note 1 were indicative of potential bias,. and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularit'es and non-compliance with laws and regulations, we designed procedures whith included, but w&re not limited to.. agreeing finanaal stalements disdosures lo underlwng supporbng documentatic)n', reading the minijtes of meetings of those charged wth governance,. enquiring of management as lo actual and potential litigation and daims,. and - reviewing Corresponden with HMRC and the relewdnl regulators. The are inherent Ilmilalions in our audit procedures described above, The more removed that laws and regulations are from finanaal transactions, the less likely it is that we would become aware of non.compliance. Auditing stsndards also limit the audit procedures required lo identify non-complkgn¢e wlh laws and regulations to eNquiry of the Board of Tnjslees and other management and the inspection ol regulatory and legal correspondence, if any. Material misslalements that aris& due lo frdud can be harder lo detecl than those that arise from error as they rnay involve deliberate concealment or collusic. Page 8
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SEVERN CENTRE TRUST LTD A further descripts'on of our responsibilities foT the audit of Ihe financial stslements is located on th& Financial Reporting Council's website al www.frc.org.ukjaudilorsresponsibilib.es. This description fornis part of our Report of the Independent Audilrys. Use of our report This report is made solely lo the charitable company's members, as a b¢yJy, in accordanc8 Vith Chapter 3 of Part 16 of the Companies Ad 2006. Our audit work has been undertaken so that we might stste lo the charitable companls m8mb8rs those rnatters we are required lo stste lo them in an auditors, report and for no other purpose, To the fullest extent pemitted by law, we do not accept or assume responsibility lo anyone other than the charitsble c4)rnpany and Ihe charitable o)mpanls members as a body, for ouraudit this repDrt, orfor the opinions we have formed. Ashley Phillips FCCA (Senior Slalutory Audilorl for and on beha of Mccabe Ford Williams Stslutory AudiloTS and Chartered Accountants Building1063 Comforth Drive Kent Saence Park Sittingboume Kent ME9 8PX Page 9
SEVERN CENTRE TRUST LTD STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 31.12.23 Total fvnds 31.12.22 Totsl funds Unreslrictsd fund Restrict funds Notes INCOME AND ENDOWMENTS FROM Charitsble activitie5 Operation of centre faulities 257,160 257,160 245,390 EXPENDITURE ON Charitsble activities Opeiation of ¢entre facilities 239,481 59,694 299,175 320,766 NET INCOMEIIEXPENDITUREI 17,679 159,8941 142,0151 (75,376) RECONCILIATION OF FUNDS Total funds brought forward 4B,937 1,988,676 2,037,613 2,112,989 TOTAL FUNDS CARRIED FORWARD 66,616 1,928,982 1,995,598 2,037,613 The notes fomi part of these financial ststsm8nls Page 10
SEVERN CENTRE TRUST LTD REGISTERED NUMBER.. 07219190 BALANCE SHEET 31 DECEMBER 2023 31.12.23 31.12.22 Notes FIXED ASSETS Tangible assets 10 1,936,310 1,995,444 CURRENT ASSETS Debtors Cash at bank and in hand 73,229 102,365 23,382 85,116 175,594 108,498 CREDITORS Amounts falling due vithin one year 12 1116,3061 166,3291 NET CURREpif ASSETS 59,288 42,169 TOTAL ASSETS LESS CURRENT LIABILITIES 1,995,598 2,037,613 NET AS8Ers 1,995,598 2,037,613 FUNDS UnTeslricted funds Restricted funds 16 66,616 1,928,982 48,937 1,988,676 TOTAL FUNDS 1,995,598 2,037,613 These financial stslements have been prepared in accordance wlh the provisions applica9 to charitsble companies subjecl to the small companies regime. The financial ststemenls were approved by the Board of Trustees aNJ 8ulhoris8d for issue on .7...rt-.th. .2cèllt.. and were signed on its behalfby: TNslee The notes fom part of Ihese financial statements Page11
SEVERN CENTRE TRUST LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES Basis of preparing the flnancial statements The financial statements of Ihe charitsble company, whith is a public benefit entity under FRS 102, have been prepared in axordance with the Charities SORP IFRS 1021 'Accounb'ng and Reporbng by Charities.. Stslemenl of Recomrnended Practice applicable to d)arilies preparing Iheif accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191,. Financial Reporting Stsndard 102 'The Financial Reporting Standard apicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. The significant accounb'ng policies applied in tt)e pparatIOn of these finanoal stslemenls are sèt tjjl bèlow. These policAes have been consislendy applied lo all years presented unless otherwise staled. Going concern The financial ststements have been prepared on a going concem basis as the Trustees believe that no material uncertainties eSt. The Trustees have considered the18vel of funds held and the expected level of income and expendilur& for12 monlhs from aulhorising these financial statements. The budgeted income and experKlilure is sufficient wrth the lev81 of res8Nes for the charitable company to be able to continue as a going nceM. Company status The company is a company limited by guaran18e and a registered charity. The members of the charitable company are the TNStees named within the Report of the Trustees. In the event of the charitable company being wound up, thg liability in respect of the guardntee is limited to £5 Per member of the charitablè company. Financial reportlng standard102. reduced disclosure exemptlons The charitable company has taken advantage of the following disclosur& exemption in preparing Ih8se financial stslemenls, as permilted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,: the requirements of Section 7 Statement of Cash Flows. Incoming r8sour¢¢8 Items of income aTe recognised and included in the accounts vthen all of the following criteria are mel.. i. The Charitable Company ha5 entillernenl lo the funds., ii. any performance Conditn5 attached lo the ilems of income have been mel or are fully within the control of the Charitable Company., iii. there is sufficienl rtaInty that receipt of the income is considered probable., and iv. the amount can be measured reliably. Income repfftsents net sales of goods and services, excluding Value Added Tax and discounts lo customers and management fees. Income received in reSPt of future events has been deferred and will be released when the event i8 complete or over the period lo which the income relates. Membership income is deferred over the period of mernteTrhip. Thè management fee is an unrestricted fund which is available for use al th8 discrelK¥n of the Trustees in furtherance of the general objectives of the Charitable Company. Ino)me r8ceived for capital expenditure is treated as deferred income and is cr&diled lo the Statement of Financial Activities by instsllments over the expected usefvl economic lrfe of the related asset on a basis consistent wlh the depreciation policy. Page 12 contirnjed...
SEVERN CENTRE TRUST LTD NOTES TO THE FINANCIAL STATEMENTS. continued FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES. cont]nued Resources expended Liabilities are recognised as expenditure as s(xJn as ther& is 8 legal or wnstnjctive obligation fximmrtting the charity to that expenditure, il is probable that a transfer of economic benefits will be required in setuement and thè amount of the oNigation can be measured reliably. Expenditure is accounted for on an accruals basis and has been ¢lassified under headings that aggregate all cost relaied ILI the category. Wherg costs cannot be d1cl1Y atlribuled to particular headings they have been all(taled lo activities on a basis consistent with the use of resources. Tangible fixed assets DepreGialion is provided at the followng annual rates in order to writè off èach asset ov8r its eslmated useful life. Fr86hold property Plant and machinery Fixtures and fittings 20/0 on cost 15% on cost 15Yo on cost Assets costing more than £1,000 are capitallsed. Related party 8xemption The charitable Company has tsken advantag& of exemption, under the terms of Financial Reporting Standard 102'The Financial Reporting Standard ap1[ble in the UK and Republic of IreLand', nol lo disdose TrL41ed party transacb'ons with wholly owned subsidiaries within the group, Taxalion The charrty is exempt frw ccffjoration tsx on ils charitable a¢tNilies. Fund accountlng Unrestricted funds can b8 used in accordance with th8 charitable obje¢liv8s al the discretion of the trustees. Rèstricted funds can only bè used for paitcular restricted purposes w(thin the objects of lh9 charity. Restrictions arise when specffied by the donor or when funds are raised for paitcular reslricled purposes. Further ewanation of the nature and wrposg of eaGh fvnd is induded in the notès to the financial ststemenls, Debtors Trade and other debtors are recognised al the settlement amount due after any trade discount offered. Prepayments are valued al the amounl prepad net of any trade discounts due. Cash at bank and in hand Cash al bank and sh in hand indudes cash and short tem highly liquid investrnents with a slK>rt maturity of three months or less from the dale of acquisition or opening of the deposit or Similar account. Creditors and provisions Creditors and provisions are recognised whère the charity has a present obligatlon resulting from a past event that will probably resLsII in the transfer of funds to a third paty 8nd the amount due lo setlle the obligation can t measured or eslimaled Teliably. Creditors and prow&CS are nomially recognised at their setuemenl amount after allowing for any trade discounts due. Page 13 contiThJed...
SEVERN CEMTRE TRUST LTD NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES- continued Financial instruments The trust only has financial assets and ffinancial liabilibes of a kind that qualify as basic financial instrum8nts. Basic financial instruments are initially r8cognised at transaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequenly meaSUd at am0Sed cost using the effective interest method. Signifi¢antjudgements and estimale$ In the application ol the charilable company's accounting polici&s, management is required to make judgernents, eslimales and assumptions about the carrying value Df assets and liabilities Ihal are not r8adily apparent from Othgr sources. The estimates and undertying assumptions are based tjn historical experience and other factors that are considered relevant. Actual results may differ from these estimates. The estimates and underlwng assumptions ar8 reviewed on an ongoing basis. Revisions lo accounting estimates are rerx)gnised in the period lo which the estimate is revise(J if the revision affects only that peTiod or in the period of thè revision and futu periods rf the revision affects both current and future P8riCKls. The key sources of estimation uncertainty that have a significant effect on the amounts CogniSed in the finanrjal stslements ar8 the depreciation charges that are calculated referen to the useful economic life of fixed assets. INCOME FROM CHARITABLE ACTIVITIES 31,12.23 31.12.22 Activity Centre activities & related income Management fees Operation of centre faeilities Operaty'on of centre facilities 158,116 99,044 154,011 91,379 257,160 245,390 CHARITABLE ACTIVITIES COSTS DireGt Costs (see note 41 Support costs (see notè 51 Totals Operation of centre facilities 161,577 137,598 299,175 Page14 continued...
SEVERN CENTrE TRUST LTD NOTES TO THE FINANCiAL STATEMENTS . continued FOR THEYEAR ENDED 31 DECEMBER 2023 DIRECT COSTS OF CHARITABLE ACTIVITIES 31.12.23 31.12.22 Staff costs Other stsff costs Bar, catering & vending Bad debts Deprecial'on 94,982 461 103,903 472 16971 17161 64,317 4,500 61,634 161,577 167,279 SUPPORT COSTS veman¢e costs Management Totals Operation of ntr8 fa¢ililies 128,053 9,545 137,598 Support costs, Included in the above, ar& as follows.. Management 31.12.23 Opèration of centre facAlilies 31.12.22 Total ac*vitses Propety costs InSUTance Administrative costs Manag8ment fee Postage and stationery AdVe$Ing Sundries Legal and professional fees Irrecoverable VAT 77,303 8,800 16,040 20,001 82 1,563 1,183 408 92,353 8,660 14,727 20,004 223 357 3,034 1,490 128,053 144,789 Page 15 )nlinued...
SEVERN CENTRE TRUST LTD NOTES TO THE FINANCIAL STATEMENTS. ¢ontlnueil FOR THE YEAR ENDED 31. DECEMBER. 2023 SUPPORT COSTS- continued Govemance costs 31.12.23 Operation of centre faGilities 31.12.22 Total actiMIiÈs Auditors, remuneration 9,545 8,698 NEf INCOMEI(EXPENDITUREI Net inc0mel1expendiTeI is staled after chargingl(creditirol- 31.12.23 31.12.22 Auditors, rernuneration Depreaalion . owned assets 9,545 61,634 B,698 64,316 TRUSTEES. REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 DecernbeT 2022. TNstees' expens•s There were no ts)Jstees' expenses paid for Ihe year ended 31 December2023 nor for the year ended 31 DeCeMr 2022. STAFF COSTS The averdge monthly numbèr of employees during the yearwas as follows: 31.12.23 12 31.12.22 11 Operation of centre faul18$ No employees r8c8ived emoluments in excess of £60,000. Page 16 contiwed...
SEVERN CENTRE TRUST LTD NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31 DECEMBER 2023 COMPARATIVES FOR THE STATEMEKf OF FINANCIAL ACTIVITIES Unrestrictèd fijnd Restricted fvnds Totsl funds INCOME AND ENDOWMENTS FROM Charitable activities Operat#)n of centre faaliti8S 245,390 24S,390 EXPENDITURE ON Charitable activltles Operation of c8nlre lacililies 261,922 58,844 320,766 NET INCOMEIIEXPENDITUREI (16,5321 158,844) (75,3761 RECONCILIATION OF FUNDS Total funds brought forward 65,469 2,047,520 2,112,989 TOTAL FUNDS CARRIED FORWARD 48,937 1,988,676 2,037,613 10. TANGIBLE FIXED ASSETS Fixtures and ffttings Freehold propety Plant and machinery Totals COST Al 1 January 2023 Additions Disposals 2,942,261 229,173 2,500 32,8501 401,868 3,573,302 2,500 32,8501 At 31 Decetrber 2023 2,942.261 198,823 401,868 3 542 952 DEPRECIATION At1 January 2023 Charge for year Eliminated on disposal 953,585 59,694 222,405 1,940 32,8501 401,868 1,577,858 61,634 32,8501 AI 31 D8C8mber 2023 1,013,279 191,495 401,868 1,606,642 NEf BOOK VALUE At 31 Decernber 2023 1,928,982 7,328 1,936,310 At 31 December 2022 1,988,676 6,768 1,995.444 Page 17 continued...
SEVERN CENTRE TRUST LTD NOTES TO THE FINANCIAL STATEMENTS . continued FOR THE YEAR ENDED 31 DECEMBER 2023 11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.23 31.12.22 Trade debtors Prepaymen15 and accrued inu)me 72,112 1,117 22,265 1,117 73,229 23,382 12. CREDITORS: AMOUNTS FALLING DUE WITHIM ONE YEAR 31.12.23 31.12.22 Trade crediloT5 Amounis owed lo group undertakings Social security and othèr taxes Other creditors Deferred income Accrued expenses 8.377 66,317 8,309 301 11,813 21,189 9,723 3,506 22,590 549 10,168 19,793 116,306 66,329 13. LEASING AGREEMENTS Minimum lease payments under non-cancellable operdling18ases fall due as follows-. 31.12.23 31.12.22 Within one year 320 14. SECURED DEBTS Th8 charws parent company, Halo Leisure SeNces Limited, look oul a £750k Coronavirus Business Inl&rruplion Loan Scheme ICBILSI in 2020 to support ts operations. The loan is s8(#Jred against 811 of the charity's assets by way of fixed and floab'ng charges. As al 31 December 2023, the remaiiing liability outstanding to the bank was £425k12022'. £575k). Page18 continued...
SEVERN CENTRE TRUST LTD NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2023 15. ANALYSIS OF NET ASSETS BETWEEN FUNDS 31.12.23 Totsl nds 31.12.22 Total funds Unrestricted fund Restricted fvnds Ffxed assets Current assets Current liabilities 7,328 175,594 116,3061 1,928,982 1.936,310 175,594 116,3061 1,995,444 108,49e 66,3291 66,616 1,928,982 1,995,598 2,037,613 16. MOVEMENT IN FUNDS Nel movement in funds Al 31.12.23 At1.1.23 Unrestricted fvnds General fijnd 48,937 17,679 66,616 Rèstrlcted funds Severn Centre Building Fund 1,988,676 159,6941 1,928,982 TOTAL FUNDS 1,995,598 Nel movement in fijnds, induded in the above are as follows.. Incoming resources Resou$ expended Movement in fijnds Unre$trictsd fund$ General fijnd 257,160 1239,481) 17,679 Restrictsd fvnds Sevem Centre Building Fund 159,6941 159,694) TOTAL FUNDS 257 160 299,1751 42.0151 Page19 ntiwed,..
SEVERN CENTRE TRUST LTD NOTES TO THE FINANCIAL STATEMENTS- continuèd FOR THE YEAR ENDED 31 DECEMBER 2023 16. DAOVEMENT IN FUNDS. contlnued Comparatives for movemènt in funds Nel movemenl in funds At 31.12.22 Al 1.1.22 Unrestrlcted funds General fund 65,469 116,5321 48,937 Restricted funds Sevem Centre Building Fund 2,047,520 158,8441 1,988,676 TOTAL FUNDS 2,112,989 75,3761 2,037,613 ComparalNe n8t movefflenl in funds, induded in the above ar8 as fdlows.. Incoming resources R8sources expended Movement in funds Unrestricted funds General fijnd 245,390 1261,9221 11fj,5321 Restricted funds Sevem Centr8 Building Fund (58,844) 158,8441 TOTAL FUNDS 245,390 320,7661 75,376) Severn Contre Building Fund Th8 buildings were funded by grants and ar8 restricted for use by the Sev8m Centre as leisure faali1188. The balance is reducing as the buildings depreciate. 17. ULTIMATE PARENT COMPANY The ulb'mate parent company is Halo Leisure Semces Limited, a Charity incorporated in England & Wales. Page 20 contiled...
SEVERN CENTRE TRUST LTD NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2023 18. RELATED PARTY DISCLOSURES Ther8 W8r8 no r81at8d paty transad'ons for thè y8ar8nd8d 31 D8cember 2023. Page 21