Annual Report and Audited Consolidated Financial Statements 2021 - 2022
Level Water
Contents
| Contents | |
|---|---|
| Reference and Administrative Details | 1 |
| Chair's Statement | 2 |
| Trustees' Report | 3 to 5 |
| Independent Auditors' Report | 6 to 9 |
| Consolidated Statement of Financial Activities | 10 |
| Statement of Financial Activities for the Charity Alone | 11 |
| Consolidated Balance Sheet | 12 |
| Charity Balance Sheet | 13 |
| Consolidated Statement of Cash Flows | 14 |
| Notes to the Financial Statements | 15 to 24 |
Level Water
Reference and Administrative Details
| Directors and Trustees | Stuart Rhodes |
|---|---|
| Mark Haslam | |
| Gemma Jennings | |
| Chief Executive Officer | Ian Thwaites |
| Charity Registration Number | 1151510 |
| Company Registration Number | 08091814 |
| Registered Office | The House |
| Monson Road | |
| Tunbridge Wells TN1 1LS |
|
| Statutory Auditor | RBCA Limited |
| Linenhall Exchange | |
| 26 Linenhall Street | |
| Belfast | |
| BT2 8BG |
Page 1
Level Water
Chair's Statement for the Period from 1 July 2021 to 30 September 2022
Introduction
2021-22 has been a positive year of recovery and growth. As we come out of the challenges of Covid, we have sought to re-launch our preexisting programme at 90 pools, and grow to new towns and cities around the country.
Getting outside
We are now actively building opportunities and experiences for Level Water’s swimmers to get outside and experience more enjoyment in, on, and around the water. During our first year of owning and operating the Bantham Swoosh swim event, we invited a number of children that are swimming with Level Water to swim 1km down the river Avon - the first outside swimming experience for most, and for some of our children it was the first time they had been to the beach. Please see more at www.levelwater.org/stories.
Partner challenges
Times are still hard for our pool partners, and these challenges are having a disproportionate effect on children with disabilities. Only half of our pre-Covid pools have re-launched their Level Water lessons, whilst mainstream lessons have reached - and often exceeded - their previous size. The national swim teacher shortage continues, and pressures on power prices and heating bills are threatening the ability of pools to stay open at all.
Taking on the Dart, Bantham Swoosh and Hurly Burly
As always, we have been open to opportunity and seeking to take appropriate levels of risk. Our main fundraising partner - the OSS - were unable to relaunch their events post-pandemic, because they no longer had an event team in place to do so. In February 2022 we acquired these events, and now have the potential to continue to deliver these iconic swims, whilst securing our long-term fundraising through challenge events.
500 to 5,000
Our current programme design allows us to support 5-20 children per pool, but we know the need is much, much higher. During 2022-23 we will be testing an approach to deliver up to 100 adaptive swimming lessons each week in a single pool, setting the foundations for us to support 10 times as many children over the next three to five years, and finally be able to provide a lesson for children with any disability.
The Chair's report was approved by the Chair of the charity on .........
............
Stuart Rhodes Chairman and trustee
Page 2
Level Water
Trustees' Report for the Period from 1 July 2021 to 30 September 2022
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the period ended 30 September 2022. The trustees have adopted the provisions of the Statement of Recommended Practise (SORP) "Accounting and Reporting by Charities" in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006 in preparing the annual report and the financial statements of the charity.
Objectives and activities
Public benefit
The Charity's Objects are for the Public Benefit to promote community participation in healthy recreation by providing or assisting in the provisions of facilities for swimming lessons for children with disabilities. The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Financial Review
On 11 February 2022, the charity acquired 100% of the equity of Swim Collective Limited. The results of the company are consolidated with the Charity's results from the date of acquisition. The total income for the year was £1,093,518 (2021: £420,789) and expenditure £991,585 (2021: £304,419) resulting in a net surplus of £101,933 (2021: £116,370).
Reserves policy
Unrestricted and restricted reserves should cover six to eighteen month's project delivery. Operational reserves should cover three to nine month's operational costs, unless otherwise agreed by the board of trustees. As usual, we forecast these reserves to reduce through winter and increase during our summer fundraising season.
Achievements and performance
Charitable activities undertaken include the provision of one-to-one swimming lessons for children with disabilities and subsequently help them join group lessons and succeed in these to help children with disabilities develop physical skills, become socially included and build self-esteem and resilience.
Activities set have helped many children graduate from our lessons and provide the opportunity for them to move into group lessons.
Plans for the future
Our strategy for 2022-23 is focused on rapid programme expansion and embedding our new fundraising events. We have a series of innovations and major partnerships planned to increase swimming lessons quantity and quality. Summer 2023 is focused on delivering our growing series of successful fundraising events and increasing the number of - and engagement with - our fundraising supporters.
Going concern
The Trustees have reviewed the applicability of the going concern principle and have determined that it is appropriate to prepare the charity's accounts on the basis that it will continue as a going concern for a foreseeable future.
Page 3
Level Water
Trustees' Report for the Period from 1 July 2021 to 30 September 2022
Trustees and officers
The trustees and officers serving during the year and since the year end were as follows:
Trustees:
Stuart Rhodes
Gemma Jennings Mark Haslam
Chairman:
Stuart Rhodes
Chief Executive Officer:
Ian Thwaites
Structure, governance and management
Nature of governing document
Level Water is a company limited by guarantee governed by its Memorandum and Articles of Association dated 26 March 2013. It is registered as a charity with the Charity Commission.
Recruitment and appointment of trustees
New trustees are appointed by the existing trustees on the basis of the skills and experience required.
Major risks and management of those risks
The trustees have assessed the major risks to which the charitable company is exposed and are satisfied that systems are in place to mitigate exposure to these risks.
Induction and training of trustees
New trustees meet with the Chair of Trustees and relevant eligibility checks are undertaken to confirm their appointment. Then they are given an induction to help them thrive in their new role. They are given information to help and support them to perform well and develop as a trustee on the board.
Arrangements for setting key management personnel remuneration
The Trustees determine all forms of consideration paid by the charity including all remuneration, salary, benefits, profit-sharing and bonuses, employer’s pension contributions and any termination payments made.
Relationships with related parties
Swim Collective Limited
Swim Collective Limited is Level Water's wholly owned subsidiary. On 11 February 2022, the charity acquired 100% of the equity of Swim Collective Limited.
The company number is 07671591.
Page 4
Level Water
Trustees' Report for the Period from 1 July 2021 to 30 September 2022
Statement of trustees' responsibilities
The trustees (who are also the directors of Level Water for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies.
Company law requires the trustees to prepare financial statements for each financial period. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Disclosure of information to auditor
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
The annual report was approved by the trustees of the charity on ....and signed on its behalf by:
Stuart Rhodes Director and Chair of Trustees
Page 5
Level Water
Independent Auditor's Report to the Members of Level Water for the Period from 1 July 2021 to 30 September 2022
Opinion
We have audited the consolidated financial statements of Level Water (the 'parent company') and its subsidiary (the ‘group’) for the period from 1 July 2021 to 30 September 2022, which comprise the Consolidated Statement of Financial Activities, Statement of Financial Activities for the Charity Alone, Consolidated Balance Sheet, Charity Balance Sheet, the Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group’s and of the parent company’s affairs as at 30 September 2022 and of the group’s and of the parent company’s incoming resources and application of resources, including their income and expenditure, for the period then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the provisions available for small entities, in the circumstances set out in note to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or on the parent’s ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Page 6
Level Water
Independent Auditor's Report to the Members of Level Water for the Period from 1 July 2021 to 30 September 2022
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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Chair's Statement and Trustees' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
-
the Chair's Statement and Trustees' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and its environment obtained in the course of the audit, we have not identified material misstatements in the Chair's Statement and the Trustees' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
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the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the Statement of trustees' responsibilities (set out on page 5), the trustees 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 group’s and the parent’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 charity or to cease operations, or have no realistic alternative but to do so.
Page 7
Level Water
Independent Auditor's Report to the Members of Level Water for the Period from 1 July 2021 to 30 September 2022
Auditor responsibilities for the audit of the financial statements
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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Trustees and other management (as required by auditing standards).
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We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting (including related trade union legislation) and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
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With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Trustees.
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We communicated applicable laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit.
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We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries, and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential basis; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
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Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the parent company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Page 8
Level Water
Independent Auditor's Report to the Members of Level Water for the Period from 1 July 2021 to 30 September 2022
...................................... Brian Stewart FCA (Senior Statutory Auditor) For and on behalf of RBCA Limited Statutory Auditor Linenhall Exchange 26 Linehall Street Belfast BT2 8BG
Date:
Page 9
Level Water
Consolidated Statement of Financial Activities for the Period from 1 July 2021 to 30 September 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Unrestricted funds Restricted funds Total 2022 Total 2021 |
Unrestricted funds Restricted funds Total 2022 Total 2021 |
|---|---|
| Note £ £ £ £ |
|
| Income and Endowments from: | |
| Donations and legacies 3 |
757,585 - 757,585 333,484 |
| Grants, including capital | |
| grants 3 |
- 102,212 102,212 87,305 |
| Other trading activities 4 |
- 233,560 233,560 - |
| Other income | 161 - 161 - |
| Total income | |
| 757,746 335,772 1,093,518 420,789 |
|
| Expenditure on: | |
| Raising funds 5 |
(248,200) - (248,200) (47,703) |
| Charitable activities 5 |
(421,756) (48,222) (469,978) (256,716) |
| Other tradingactivities 5 |
- (273,407) (273,407) - |
| Total expenditure | |
| (669,956) (321,629) (991,585) (304,419) |
|
| Net income | |
| 87,790 14,143 101,933 116,370 |
|
| Net movement in funds | |
| 87,790 14,143 101,933 116,370 |
|
| Reconciliation of funds | |
| Total funds brought forward | |
| 443,275 30,935 474,210 357,840 |
|
| Total funds carried forward 15 |
|
| 531,065 45,078 576,143 474,210 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 15.
The notes on pages 15 to 24 form an integral part of these financial statements. Page 10
Level Water
Statement of Financial Activities for the Charity Alone for the Period from 1 July 2021 to 30 September 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Unrestricted funds Restricted funds Total 2022 Total 2021 |
Unrestricted funds Restricted funds Total 2022 Total 2021 |
|---|---|
| £ £ £ £ |
|
| Income and Endowments from: | |
| Donations and legacies | 757,585 - 757,585 333,484 |
| Grants, including capital grants |
|
| - 102,212 102,212 87,305 |
|
| Other income | 161 - 161 - |
| Total income | |
| 757,746 102,212 859,958 420,789 |
|
| Expenditure on: | |
| Raising funds | (183,359) - (183,359) (47,703) |
| Charitable activities | (501,856) (48,222) (550,078) (256,716) |
| Total expenditure | |
| (685,215) (48,222) (733,437) (304,419) |
|
| Net income | |
| 72,531 53,990 126,521 116,370 |
|
| Net movement in funds | |
| 72,531 53,990 126,521 116,370 |
|
| Reconciliation of funds | |
| Total funds brought forward | |
| 443,275 30,935 474,210 357,840 |
|
| Total funds carried forward | |
| 515,806 84,925 600,731 474,210 |
The notes on pages 15 to 24 form an integral part of these financial statements. Page 11
Level Water
(Registration number: 08091814) Consolidated Balance Sheet as at 30 September 2022
| 2022 2021 |
|
|---|---|
| Note | £ £ |
| Fixed assets | |
| Intangible assets 8 |
270,816 - |
| Current assets | |
| Debtors 10 |
12,543 12,500 |
| Cash at bank and in hand 11 |
457,282 471,439 |
| 469,825 483,939 |
|
| Creditors: Amounts falling due within oneyear 12 |
|
| (164,498) (9,729) |
|
| Net currentassets | |
| 305,327 474,210 |
|
| Netassets | |
| 576,143 474,210 |
|
| Funds of the charity: | |
| Restricted income funds | |
| Restricted funds | 45,078 30,935 |
| Unrestricted income funds | |
| Unrestricted funds | 531,065 443,275 |
| Total funds 15 |
|
| 576,143 474,210 |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
The financial statements on pages 10 to 24 were approved by the trustees, and authorised for issue on .. and signed on their behalf by:
Stuart Rhodes Chairman and trustee
The notes on pages 15 to 24 form an integral part of these financial statements. Page 12
Level Water
(Registration number: 08091814) Charity Balance Sheet as at 30 September 2022
| 2022 2021 |
|
|---|---|
| £ £ |
|
| Fixed assets | |
| Intangible assets | 316,620 - |
| Current assets | |
| Debtors | 12,543 12,500 |
| Cash at bank and in hand | 456,807 471,439 |
| 469,350 483,939 |
|
| Creditors: Amounts falling due within oneyear | |
| (185,239) (9,729) |
|
| Net currentassets | |
| 284,111 474,210 |
|
| Netassets | |
| 600,731 474,210 |
|
| Funds of the charity: | |
| Restricted income funds | |
| Restricted funds | 84,925 30,935 |
| Unrestricted income funds | |
| Unrestricted funds | 515,806 443,275 |
| Total funds | |
| 600,731 474,210 |
The notes on pages 15 to 24 form an integral part of these financial statements. Page 13
Level Water
Consolidated Statement of Cash Flows for the Period from 1 July 2021 to 30 September 2022
| 2022 2021 |
|
|---|---|
| Note | £ £ |
| Cash flows from operating activities | |
| Net cash income | |
| 101,933 116,370 |
|
| Working capital adjustments | |
| (Increase)/decrease in debtors 10 |
(43) 109,313 |
| Increase/(decrease)in creditors 12 |
154,769 (70,182) |
| Net cash flows from operating activities | |
| 256,659 155,501 |
|
| Cash flows from investing activities | |
| Acquisition of subsidiaries | (270,816) - |
| Net (decrease)/increase in cash and cash equivalents | |
| (14,157) 155,501 |
|
| Cash and cash equivalents at 1 July | |
| 471,439 315,938 |
|
| Cash and cash equivalents at 30 September | |
| 457,282 471,439 |
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 15 to 24 form an integral part of these financial statements. Page 14
Level Water
Notes to the Financial Statements for the Period from 1 July 2021 to 30 September 2022
1 Charity status
The charity is limited by guarantee, incorporated in England and Wales. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The charity is registered as a charity with the Charity Commission of England and Wales.
The Charity number is 1151510. The Company Number is: 08091814.
The address of its registered office is: The House, Monson Road Tunbridge Wells TN1 1LS
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Page 15
Level Water
Notes to the Financial Statements for the Period from 1 July 2021 to 30 September 2022
Basis of preparation
Level Water meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 30 September 2022.
A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries acquired or disposed of during the period are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.
Presentational currency and level of rounding
The presentational currency is £ and the level of rounding is to the nearest £.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Disclosure of long or short period
The period covered in the financial statements is 1 July 2021 to 30 September 2022, hence the comparatives are not entirely comparable.
Page 16
Level Water
Notes to the Financial Statements for the Period from 1 July 2021 to 30 September 2022
Income and endowments
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Gift aid tax recoverable is recognised on the date of the respective donation.
Fundraising income is recognised on the date of the event taking place.
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Raising funds
These are costs incurred in fundraising events.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Goodwill
Goodwill is amortised over its useful life of 5 years.
Page 17
Level Water
Notes to the Financial Statements for the Period from 1 July 2021 to 30 September 2022
Amortisation
Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:
Asset class Amortisation method and rate Goodwill 20% straight line
Debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Business combinations
On 11 February 2022, Level Water acquired 100% of the ordinary share capital of Swim Collective Limited for total consideration of £316,620. The goodwill arising from the acquisition is £310,348 and the Trustees have estimated the useful life of this goodwill to be 5 years.
3 Income from donations and grants
| Unrestricted | |
|---|---|
| funds Restricted Total Total |
|
| General funds 2022 2021 |
|
| £ £ £ £ |
|
| Donations and legacies; | |
| Donations from individuals | 757,585 - 757,585 333,484 |
| Grants, including capital grants; | |
| Government grants | - - - 25,849 |
| Grants from companies | - 102,212 102,212 61,456 |
| 757,585 102,212 859,797 420,789 |
Page 18
Level Water
Notes to the Financial Statements for the Period from 1 July 2021 to 30 September 2022
4 Income from other trading activities
| 4 Income from other trading activities |
|
|---|---|
| Restricted Total |
|
| funds 2022 |
|
| £ £ |
|
| Events income; | |
| Income from subsidiary | 233,560 233,560 |
| 233,560 233,560 |
Page 19
Level Water
Notes to the Financial Statements for the Period from 1 July 2021 to 30 September 2022
- 5 Expenditure on raising funds, charitable activities, and other trading activities
| Unrestricted funds Restricted funds 2022 Total 2021 Total |
|
|---|---|
| £ £ £ £ |
|
| Expenditure on: | |
| Raising funds | |
| Fundraising costs | 248,200 - 248,200 47,703 |
| 248,200 - 248,200 47,703 |
|
| Charitable activities | |
| Provision of swimming lessons | 298,678 48,222 346,900 208,169 |
| Insurance | 6,901 - 6,901 - |
| Accountancy | 12,288 - 12,288 4,647 |
| Office costs | 48,125 - 48,125 11,512 |
| Travel expenses | 23,058 - 23,058 4,663 |
| Marketing | 32,706 - 32,706 27,725 |
| 421,756 48,222 469,978 256,716 |
|
| Other trading activities | |
| Expenditure by subsidiary | - 273,407 273,407 - |
| Total expenditure | 669,956 321,629 991,585 304,419 |
Page 20
Level Water
Notes to the Financial Statements for the Period from 1 July 2021 to 30 September 2022
6 Staff costs
The aggregate payroll costs were as follows:
| £ | |
|---|---|
| Salaries and wages | 243,803 |
| National insurance | 23,358 |
| Pension scheme | 13,334 |
| 280,495 |
The monthly average number of persons (including senior management / leadership team) employed by the charity during the period expressed as full time equivalents was as follows:
| 2022 2021 |
|
|---|---|
| No No |
|
| Average number of staff during year | 4 4 |
The total remuneration of key management personnel during the 15-month period ended 30 September 2022 was £112,597 (year ended 30 June 2021: £88,660).
One employee received remuneration of between £110,000 and £120,000 during the 15-month period ended 30 September 2022; this equates to annualised renumeration of between £80,000 and £90,000.
7 Taxation
The charity is a registered charity and is therefore exempt from taxation.
8 Intangible fixed assets
| 8 Intangible fixed assets |
|
|---|---|
| Goodwill Total |
|
| £ £ |
|
| Cost | |
| Additions | 310,348 310,348 |
| At 30 September 2022 | |
| 310,348 310,348 |
|
| Amortisation | |
| Charge for theyear | 39,532 39,532 |
| At 30 September 2022 | |
| 39,532 39,532 |
|
| Net book value | |
| At 30 September 2022 | |
| 270,816 270,816 |
Page 21
Level Water
Notes to the Financial Statements for the Period from 1 July 2021 to 30 September 2022
9 Business combinations
On 11 February 2022, Level Water acquired 100% of the issued share capital of Swim Collective Limited, obtaining control.
The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below:
| 2022 | |
|---|---|
| £ | |
| Assets and liabilities acquired | |
| Financial assets | 9,254 |
| Financial liabilities | (2,982) |
| Total identifiable assets | |
| 6,272 | |
| Goodwill | 310,348 |
| Total consideration | |
| 316,620 | |
| Satisfied by: | |
| Cash | 316,620 |
The useful life of goodwill is 5 years.
The goodwill arising on acquisition is £310,348.
Page 22
Level Water
Notes to the Financial Statements for the Period from 1 July 2021 to 30 September 2022
10 Debtors
| 10 Debtors |
||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Accrued income | 12,543 | 12,500 |
| 11 Cash and cash equivalents |
||
| 2022 | 2021 | |
| £ | £ | |
| Cash at bank | 457,282 | 471,439 |
| 12 Creditors: amounts falling due within one year |
||
| 2022 | 2021 | |
| £ | £ | |
| Trade creditors | 9,849 | - |
| Other taxation and social security | 8,501 | - |
| VAT grant repayable | 349 | - |
| Other creditors | 88,352 | 4,808 |
| Accruals | 57,447 | 4,921 |
| 164,498 | 9,729 |
13 Pension and other schemes
Defined contribution pension scheme
The charity operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the charity to the scheme and amounted to £13,334 (2021 - £13,033).
Contributions totalling £371 (2021 - £4,807) were payable to the scheme at the end of the period and are included in creditors.
14 Related party transactions
Swim Collective Limited is a related party as it is a wholly owned subsidiary of Level Water. Included in other creditors is a balance of £45,544 at the period end (2021: £NIL). The amount advanced to the related party in the period was £269,528. The amount repaid by the related party in the period was £315,072.
Page 23
Level Water
Notes to the Financial Statements for the Period from 1 July 2021 to 30 September 2022
15 Funds
| 15 Funds |
||||
|---|---|---|---|---|
| Balance at 30 | ||||
| Balance at 1 | Incoming | Resources | September | |
| July 2021 £ |
resources £ |
expended £ |
2022 £ |
|
| Unrestricted funds | ||||
| General | 443,275 | 757,746 | (669,956) | 531,065 |
| Restricted funds | 30,935 | 335,772 | (321,629) | 45,078 |
| Total funds | 474,210 | 1,093,518 | (991,585) | 576,143 |
16 Analysis of net assets between funds
| Unrestricted Restricted Total funds at 30 |
|
|---|---|
| funds funds September 2022 |
|
| £ £ £ |
|
| Intangible fixed assets | 270,816 - 270,816 |
| Current assets | 469,350 71,095 540,445 |
| Current liabilities | (209,101) (26,018) (235,119) |
| Total net assets | 531,065 45,078 576,143 |
| Restricted Total funds at 30 |
|
| Unrestricted funds funds June 2021 |
|
| £ £ £ |
|
| Current assets | 443,275 91,965 535,240 |
| Current liabilities | - (61,030) (61,030) |
| Total net assets | 443,275 30,935 474,210 |
Page 24
Level Water
Detailed Statement of Consolidated Financial Activities for the Period from 1 July 2021 to 30 September 2022
| Total Total |
|
|---|---|
| 2022 2021 |
|
| £ £ |
|
| Income and Endowments from: | |
| Donations and legacies (analysed below) | 859,797 420,789 |
| Other trading activities (analysed below) | 233,560 - |
| Other income(analysed below) | 161 - |
| Total income | |
| 1,093,518 420,789 |
|
| Expenditure on: | |
| Raising funds (analysed below) | (248,200) (47,703) |
| Charitable activities (analysed below) | (469,978) (256,716) |
| Other expenditure(analysed below) | (273,407) - |
| Total expenditure | |
| (991,585) (304,419) |
|
| Net income | |
| 101,933 116,370 |
|
| Net movement in funds | |
| 101,933 116,370 |
|
| Reconciliation of funds | |
| Total funds brought forward | |
| 474,210 357,840 |
|
| Total funds carried forward | |
| 576,143 474,210 |
This page does not form part of the statutory financial statements. Page 25
Level Water
Detailed Statement of Consolidated Financial Activities for the Period from 1 July 2021 to 30 September 2022
| Total Total |
|
|---|---|
| 2022 2021 |
|
| £ £ |
|
| Donations and legacies | |
| Appeals and donations | 757,585 333,484 |
| UK Government grants | - 25,849 |
| Grants - other agencies | 102,212 61,456 |
| 859,797 420,789 |
|
| Other trading activities | |
| Income from subsidiary | 233,560 - |
| 233,560 - |
|
| Other income | |
| Other income | 161 - |
| 161 - |
|
| Raising funds | |
| Direct costs | (248,200) (47,703) |
| (248,200) (47,703) |
|
| Charitable activities | |
| Provision of swimming lessons and other charitable expenditure | (430,446) (256,716) |
| Amortisation ofgoodwill | (39,532) - |
| (469,978) (256,716) |
|
| Other expenditure | |
| Expenditure bysubsidiary | (273,407) - |
| (273,407) - |
This page does not form part of the statutory financial statements. Page 26