CompanyRegistration Number: 08484436 (England and Wales> CharftyRegistrdtion Number. 1153198 active Northumberland (a Company limited by guarantee and not having a share capital) Trustees'Annual Report and Flnanclal Ststoments For the Year Ended 31 March 2021 Contents Legal ondAdministralv8 hfoThalion Tnwtees, Annual Report lThleFendenlAudiW$Repryl Cofftsolldated StatsfftsnlofFlnan(ialkl'viles lance￿881 ofcash Flows CorffjoPl•led Firwthlgaknn 31 Legal and Admlnlstratlve Inforniation forthe year ended 31 March 2021 Trustses OavidHaTt(Chair) Jane Fl'ley IWp%Chaii} Judth SbnebridgolV￿cha1TI Resgr*J21 A¥ri12021 ModaserCh￿dhary MalcolmCw&nd Steve CrcAland Llndsaypknrs Jan*s Murray Frances Na Rési4n8d 9June 2021 R8swJn8d 22 WII 2021 Resigned 7Apnl 2021 Cloire ￿'19Y Petsrsknel S•¢r•tsry Rosig￿dI3 May 2020 APw'nt￿l Awi12021 Karfa Sweeney Chknf Ex•cuth• Mark Wames Companynumt•r Ch•ritynumb•r R•glot•r•d Offle• 08484436 1153198 conc￿dIa LelgJTa Cer*• Fowmway Crarfing Nothumborfand NE236YB Bank•r4 Thec(￿p@￿t.ve Bank NorfolkHwse 84-86GwStreèl NewcastteUponTy NE16BZ L•9alAdvis•rn Wrigley Soliators 19 Cooknd90 Street Leeds LS2 3AG Auditors MazarsLLP 8ankChambws 26MAeyStrÉél NewcastteUponTyr NE11DF Page 1 Trustees'Annual Reportforthe yearended 31 March 2021 TRUSTEES'REPORT The Trustees. who are DIre(lO￿ for the purpose of Cornpany law. present thelr annual report (Includlng Ihe Strateglc Report) on Ihe affalrs of the Charlty and the Grou p, together with the financial slatementsand the auditorf8 report fortheyear ended 31 March 2021. Introduction Active Northumberland is 8 feglslerad Ch8rfty (Company Ilmlted by guaranteo)fomied in 2014 from a merger of several different leisure service providers. Active Nothumberfand employs clr¢a 787 people, of which 388 are contracted (equallng to circa 265 full time equivalentemployees) and a Board of Non-Executive Directors (frustees} with a relevant range of expefose and seniorlevel managementexperience. Mission and Proposition Active Northumberland dellverJ lelsure seNlces on behalf of Nothumberland County Councilwith the aim of improving and supporlingthe lives of residents and visitors to the Cou nty by primarily increaping populab'on physical activity levels, thereby improving heaHh and wellbeing in linewith NorthUMberf￿d County councifs8trategicobiective8. Active Northumberland's proposition 18 lo provide great experiencas in great placès for everyone". Vlslon and Focus Active North umberland'svision isyo be the best comrwnityleisureandwellnessprovSder In the UK.. Active North umberland's fo(>Js 18 to deliver a Transfonnation Strategy that will allow us to become a nationally leading leisure trust through optimising participation in our18isu 8ervlces and by deliverfng a wlder, positive impactacross health, Social care and educalx wlth outstandlng levelsof qualityand efficiency. Structur• and Gov•man¢o Board of Trustees Ch• Vkl Chilr Jane Riby Judith Styiebrfdge Modaserchoudh Trustee Lindsaymuers Jarrfjs Murray Franc8SNa￿OI Vk• Chak Tiu$t•• Trusts• Trn•l•• Page 2 Trustees'Annual Reportforthe yearended 31 March 2021 Execulfve Leadership Team knknimChielExwh HeadofOperab'onsandSeN(2s Headof Conrnrual and Restjjrces Pa￿ Meta Jo Farrier HeadofPE, S#KJoI Sports and Swts De￿n￿l Str8kngl¢C4lkl*nd Estskn$ kknager Fr8nkiClark Actlve Northun*Jerland Ss 8 Company limited by guarantse, estsblished undera Leisu Partnership Agreemont wlth Northumberland County Council whith lays out the Ob￿Cts and powers of the Company and is govemed undèr its Artldes ofAssoclallon. Actlve Northumberfand is govemed by its Board of Trusl88s. The Arlcles of Associaticm were rovlewed and amended on 17 April 2019 by removing Ihe provision for organ isats'mal members in order to str8ngthen Trustee govemance. There is provision for an unlimited numb8r of TNstees, wlth 10 senilng durfng 2020-21. Trustees are required to bring a mix of skills and experienc8s which include customer engagement and advocacy, health iryrovement, CQfporate18w and govemance, finan￿. and commercial sport and leisu re seNices andlor markellng to help oversee the overall managementoflhecompanyand to maintsin a sustalnable busiiess. The Board has worked to assuwe themselves that the Company is delivering effectlbpty against its key aims and charitable obpctives. The Boa￿ has implemented arrangements In Ilnewlth the PartnershipAgreementwith Northumberland County Councll so thatActive Northumberfand managesthe operation of leisure facilitiesand services on behalf of the Cou ncil. The Partnership Agreement coupled with a performance manag8m8ntframew(xk ensures progress is appropriately recorded and acknowledged, and Ihat under Active Northumberfand's man8gem8nt Norlhumberfand County Council's lelsure assets and resources arn optimised and successfully contrlbute to Ihe Councll's straleglc prIorl￿O$. The Cornpany is managed by the Board and Executive leadership team through finanaal and non4inanclal key performance indicators. Ihorough budget monitoring. key nati¢￿￿ benchmarking perfomance and seNlce quality indicators. This is all monitored reviewed using the Cornpanls Corporate Scorecard. Monthly budget meetings and revi8w meetings are held by Executive Management wi the Senior ManagerrenL the FinanceTeam. and budget holder5 to r8view perfomian and progress. and in tum Ihe Executive management report bi-nv)nthly to the Board's Financ8 andAuditCorrwnitteeand in tum full Board meetings. Active Northumberland has developed a Strategic Risk Register and stringent health and safety arrangernnts which ar8 routin81y monitored and ffjported at board meetings. Induclion of new Trustees is undertaken Jolnlly by the Company Secretary and the Ch￿f Executive which ensures new Trustees know and understand their responsibililles as a Trustee of the tharitsble Company; and they have an insight Into the activlti6s of Ac1ive Pa9e 3 Trustees'Annual Reportforthe yearended 31 March 2021 Northumberland. They are also introduc8d kn Ihe relationship beiween Active Northumberland Limitsd and Active NothumberlandTrading Limited. The Board of Trustees has signed up to and acts wlthln the prfnclples of Ihe Active Northumberland&)vem8nc8Cod8of ConducLAslandingagendaitem.enablingTrust88S to declareany relevantinterests. is indudedateach Board M￿tin9.The Board has agreed a Conflicts of Interest Policy taking account of the Charity Commission and Regula Guldance. During 2020-21 the Board convened every iwo months. Meelings were attended by members of the Executive Leadership Team along with the Flnaneé Manager. This ensured representation of key Personnel with responsibility for the leadersh ip of strateglc buslness development areas and servlce delivery functions. All meefjngs durlng thls fSn8nclal yearhave been conducted vithallydue tothe COVID-19 pandemic butwill r6v8rt to face-to4ace meetings as soon as it is safe to do so. A mlnlmum attendanceof 50% forall Board meelngs has been agreed and attendanceat Board meetings remains high at90% overall. This is r￿nitored by the Company Secretary and reported to the Board on an annual basisenabling any issues to be addressed. Board meetings have tsken place as planned,. Ihus, enabling eff￿ve decision making Ihroughout the year. A Code of Pradce forTrustees Is In place andsIgned￿PtobY allTrustees on appolntrnent An annual declaration of interestisalsocompleted and reported to the Board. Askillsau(*t was undertaken in June 2019 and is now being used in the recruitmentof Trustees, Companh8 Act 2006- 172 Duty to promot• th• *ucc••s of th• Company (1) A Trustee of a Company mustact in theway heconslders, In goodfalth,would be most likely to promote the success of Ihe Company for the benefitof its Thmbers as a who￿, and in doing so have regard (amongst other matters) to. (a) Ihe likely consequences of any decision in the long tem, Board members have been selected from a broad range of businessesand industysectors with a wealth of experienc85 at the highest level to ensure that those professicnal experiencés and knowledge base can be drawn upon for Ihe benefit of the Company. Al Board members have the best Interests fimily al the heart of Ihe decSsSons that aro tsken and through the collective deasion and reasoning would always actln the best Interestsof the Company. Any declarations of interest from Board Merrt>ers are always declared and minuted at the beginning of every Board Meeting. (b) the interests of the Companys employees. The Board is firmly behind the developmentandwelfare of all employees and ensuresthat training and welfare is at the cents of the Companys Transf0M￿tiOn Strategy and Corporate Scorecard mn itoring. Page 4 Trustees'Annual Reportforthe year ended 31 March 2021 (c) the need to foster the Compan*s bu8ine8s relationshipswlth suppliots.¢ustomers, and olhers. Please see section - Suppllers {d) lh8 impactof the CompanVsoperdtions on the communityand the envir0nff￿nt, The Board are keen to promts the perception and footprint of the business within the communlty and environmenL As part of Ihe Business Trdnsfomiats'on Strategy, the rebranding ofthe Companyalongwith thesetting of a newset of values and vision forthe Companydemonstrates Ihis very well. Envlronmentsllythecompanyhas pursueda gr initiative to switch to greener fuel sources Ihrough the instsllation of solar panels at some facllifjes as well as reducing packaging and waste through the Company'5 food beverage facllltles and oullets. (e) Ihe desirablllty of the Company malnlalnlng a reputallon forh Igh standards of buslne88 onducL and Hlgh standards and repulats'on are monitored and upheld through the perfomian( management of the Company through the Corporate Scor8card that uses metrics nationally benchmarks stsndards.As part of ourTransformation Strategy, we are preparhg our centres to be accredited by Quest in order to demonstrate the very high standaffjs being delivered and achieved at ourlocations. (f) tha nead to act fairfy beiween members of the Company. The Company rlgorouslyfollows ourpollcles regardingthe treaknent of ourcolleaguesa we ensure that all engagement is don8 in a non4)lased and fair manner ensuring not to dlscrlminate against anyone no matter Iheir ethnic background, religion. gender, social background or abllSty. We engage closely and regularfywlth our UnlonsGMB and Uni to help us shape and develop ourcompanypolicies. Management Active Northumbefland'sadministration base resides within the Concordia Leisure Centr8 which istheregistered office.Active Northumberlandismanaged by a Chi8fExecuti￿￿ffiO reports to the Board of Trustees. ma￿ W8mes was appointed as Interim Chief ExeculKe and commenced duties on 18 February 2020. Du ring the year the need for an experienced Executive Leadership Team responsible for the dellvery of leisure services across Ihe Company was recognised by the Board and therefore an addllonal 8ppoinknentiS CUTrently being recruited in Ihe fomi of a Flnand Director in order to strengthen thlstearn. The Board and Inlerim Chief Execullve,togeth with the Executive Leadership Team aro responsible for Ihe sb3teglc direclion of the Company. The Executive Managementare responsibleforthe day40-day operation and development of the business and follow th8 annual financial business plan and Transformation Strdt&ay as set out In agreement with the Board. The Board is responsibleforsellng the pay and remuneration of key leadership personnd. Page 5 Trustees'Annual Reportforthe yearended 31 March 2021 Signifi￿t management prDgress has been made In that: A Parbiership Agreement which indudes a Ihree-year management fee ￿uC cornmitrnent which assume5 the maintenance of sep4ices and die absorption of cost inflation is in place. The PartnershipAgreementends on 31 March 2022 and will be due for renewal. Negoliationsaroundthe renewal aro ongoing with the Council and are fomiing part of an ovefall Lesiure Reviewof all Council Leisure Services. The three-year Company strategy (fransformatlon Strategy) that was laUnth￿ h May 2019 continued to be rolled out and the new Active Northumberland brand has been successfu Ily implanted across much of the estate. along with the new FOCKI and Beverage brand Hive which has also been used to rename our 2 Ten Pin Bovllng bulsnessesatconcordia and Weniworth. and are now Hive Bowllng. A new Strategic Outcorn&s Framework was produced In July 2019 to be futher developed with partTre￿ involving cross cutting health. soclal care. 8ducalon. and employment outcomes. Thi818 still In progre&8. A comprehensive action plan was produced and completed addressing the chalknges and issues raised in tre Active Nothumberfand 8mployee survey undertaken in 2017 and 2019. The results of the 2019 suNey were significantly better than 2017 and therefore the survey has been conducted annualty to ensure that we are able to continue to compare year on year performance. Due to the COVID-19 pandemlc, 2020's sup48y was delayed in order to ensure that sufficient staff had retumed to the buslnessso that data could be capknred in order to make a suitsble comparison. A declslon was taken in Jan uayto use a nationally recognised company to survey k at howwe might redu(x costs on (x)nsumab Looked to bring forward planned rem8dial work at C￿ntr85 to avoid1818r dosures vknen we C￿uld have b88n op8nad Application made to Ihe Natlonal Lelsure Recovery Fund for support fundlng (£0.75 million) Forlunately. the grant funded elernents of our provision hav8 conlinued to be paid and no requests have been made by funders given the unforeseen Cin￿mS￿n¢es. As soon as we knew that Ihe closure was golng lo be sustsined. we entered d1scuss1c￿S with Northumberfand County Council.These discussions have been entered into. in the spl￿t of full and open partnership. The Council responded byflnancially supporting Acti Northumberland toassist ouremployoes by paying Ihe salary lop up to 1000A while on the Govemment Job Retention Scheme.Thisofferwas made to run unlil 30 June2020. Further discussions continued between Adive Northumbetland and Ihe Council and open book process has been in operation to ensure that Ih8y a￿ fully aware of the cOn￿rIUlng levels of revenue support that were and will be ￿qUired to ensure liquidityof 1he businessaswe continuethrough thispandemic. Page 9 Trustees'Annual Reportforthe yearended 31 March 2021 A full NCC lelsureser4ices review is being undertaken to ascertain which operatorl $8ivice should operate all of Iheir individual facilties and whelher some services should confjnue, and this review is anti￿Pated to be complet8 by January2022. The pandemichas cau*1 a serious level of disrupts'on duringthefinanaal yearof reports'ng. and we expect reV￿u8 chall8nges to continuethrough(xJt 2021-22 as some reslTiCtions have rBmained in place and continue to affectourabilityto generate revenue. Revenue streams heve been dramatically affected by the pandemic and these are continually reviewed in line with the counc￿.$ finance team as part of our open book process and in linewlth ourservice agreemenL We do not currentlyenvlsage anydlsrupUon to our supplychalns golngforAiards, andwe are in continual communlcallon wllh our current supplier5 surrounding ongcing collaborallon and contlnued levels of seNlce. Financial Mattern and Fundlng Str•ams In addition to Income generated specifically from service provision and delivery. Active Northumberfand receives fundng from: Northumbedand County Council managem8ntfee. Donations- Prlor lo 2019-20 Advance Northurnberland gave a charitsble donaticn up to £1.00 mllllon to Actlva Norfhumberfand however thls arrangemenl has ncw ended. Due to the cessaloon of the arrarbgerrent it was agreed at the meeting of Ihe Countycouncalon 19 February 2020 thatthe Councllwoukllncreasethemanagemenl fee in 2019-20 and the subsequenttwo years by upto £1.00 million. Sport England (granlfundlng forspeciflc pro￿￿}. Town and Parfsh Councls (gr8ntfundlng forspecSfic projects). Durlng the pandemicwe successfullyappliedforall appllcable BusSness Rate Grants in line wilh thagovemmentsupportforbuslnesses package. Aclive Norlhumbefland also successfully secured £0.75 mllllon from the Nat1(￿81 Lelsure Recovery Fund. The fu nds have been allocated between 2020-21 and 2021- 22 in Ilne wlth Ihefundlng gukdance. The Council has provided a letter of support to Active Northumberfand to ensurB continued liqU￿￿1tyandto safeguardActlve Northumberfand's cash reser¥e. Thls letter of support runs through 2020-21 and2021-22. Page 10 Trustees'Annual Reportforthe yearended 31 March 2021 Pub￿¢ Benefft The charitable Companyis a public benefitenlity.when considering its proposed plans of activity, the Trustees have consldered the Charity Commission's guidance on public benefic and fee charging. ImptDvements introduced to benefit custr)m6ts and to Improve théir èxperience are summarised as follows: New look rebranded website has been successfully launthaj with furlh developments planned. Faster online ￿nIng experience for rrembers. reduong tirre from 11 mlnutes to 3 minutes. Introduction of a newcustomer revenue managementsolution to reduce debt Introduction of paperless customer Information viathe Aclive NorthumberlandAppand onllne. New corporate meMbe￿hIp offers for public seprfice enwoyees. N8W 8rrn8d forces membership offers. and Bronze Covenantstalus achieved. Operatlonal ktlvlty Our People Acts've Northumbedand operates from nlne maln lelsure centres {some of whlch coml%ne Ilbrary services), plu5 three school spots facilitles and several community facilitie4 Including Hirst Welfare and Pegasus Riding Centre. signif￿nIprogr?SS has been made wlth regards to Ihe development of products and services. summarised as follows: An Independent evaludlon of Ihe Exercise on Referral Servlce has been completed to inform developments that wlll Improve perfornBnce and dellver sustalnablllty. A new pricing model and weight managemantelement has been implemented as a resu It of the review. The management of th8 Sports Development Seprfice had transferred from Northumbertand Countycouncil lo Aclive Northumberfand but due to COVID-19 ha5 reverted back to Northumberfand Countycouncd forthe time belng. The new improved aqualics and sportslgym accessory retsll off6r has been introdutxl across the estate and now that we have mved to more nomial levels of footlall. we have seen sales flourish, although due k) supply issues our perfOrn￿n￿ has b somewhat restricted. A str8teglc revlew has been undertaken for our catering provision and our ven(thng suppllerhas been sOUr￿dWIth Ihe briefof offering nutritious and healthyoptions. Our PE and school sport programme has continued to operate throughout the pandemic and has been instrumenlal in SUFPOrting many of ourpartnerschools during Ihe pandemic. Page 11 Trustees'Annual Reportforthe yearended 31 March 2021 Ou r bespoke physical activity scheme lo engage (Narns on the Move.) has continued when it has been possible around the restrictions and has Continu￿ ID increase participation and to help r8duc8 Ihe risk of posthalal depression. This ha8 been very successful. andwe see Ihis being a ￿ntinUed and 5uccessfvl wideractivity going fOr￿ardS. A Companywide rollout of the Hive brand has been implemented across most of the café sites anda rebrand of the tsvo ten pln bowlingcentresat Hexhamand Cramling have been rebranded as Hive Bowling as a replacementto Strike Bowl. A strategic ￿VIeW of the Group exercise programme has been undertaken and the consistent introduction of Les Mills across facilities has been completed. We have implemented a new automated holiday booking portal (Ordcle) for staff members to log their annua leave. This now makes revlewing and authorfsing ￿nUal leave much easier and provides management wlth full reportlng and prowdes clear visibility of annual leaveconsumption. A new Trainlng Portal (Future Fit) 18 now in placo for all colleagues to register undart8ke training and recorrj CPD. Thi8 now provid85 an easy central point for colleagues to record their records and provides management wlth Invaluable data reporting. Our values and vison ensure that we offer equal oppor￿nIty to colleagues and customers no matter their sorAal background. eth nldty, rellglous bellefs. orabS11ty. At Aclive Northurnberland we putthe needsof allourcusloThrs flrst and are committed to providlng a responsive, accessible. and professional service thal seeks to improve at every opportunity (customer seprfice statement). ￿r seprflce proposition Is to 'provlde great experiences in great places for everyone" On8 of our published values is that we are an inclusive Irust 'Our commitm8nt to inclusion m8answe understand and respectdifferences. we collabordte as a team we break down barriers to enable people who are sodally excluded, dlsadvantaged, isolated and vulnerdbleto participate and achievethelrgoals.. Aclive Northumberland is an equal opportunitles employer. regardless of protected characteristics. Recruitrnentis managed by Northumberfand Countycouncll. and Ihe Council has been awarded 'disabilityconfidenf accreditation. as a demonstration CA both Active Norlhumberlands and Northumberland County Coundl's commitment to nottreat disabledpeople lessfavorably. Shouldapplicantsrequestconsideration und the guaranteed inteNiew scheme. Applicants with a disability are guarante8J inteNiew, provided Ihal they meet Ihe &%8ential crileria oullined in the per SP8cificakn'on. Page 12 Trustees'Annual Reportforthe yearended 31 March 2021 Our Facilities The maTr)rity of our facilities are owned by Northumberland County Council and are lea￿1 to Aclive Northumberfand to d81iverservices. Progress relating speafically to facilities b8 summarised as follows: New pool plantwas installad atconcordia. Blyth. Prudhoewaterworld. Willowbum and Rothbury leisu re centres. GroundW0￿S cornn￿nCed in January 2020 for the new18isure facility in Berwick but was puton hold forthree nM)nthsdue lo tt)e COVID-19 pandemic.The Constructi￿ Is still behind schedule due to the ongoing COVID-19 impact, but the main part of the project is due to be handed overto usat the end of November 2021, whlch will provide a new main swimming pool. sbjdio pool, splash zone. filness studios. gsryn. spa. studio.ilndoorbowling green, and café.A brand new 3G sports pitch has been han￿j over to U8 during Aprfl 2021 and Is already a huge success. The last phase of an enlargod Gar park and maln spots hall Is duefor complelion in 2022. An addStional one-yearleasewas granted by Ihe landownerforPegasus Riding Cenkn, securfng th8hoTh of Ihe Ridingforthe Disabled Associatlon {RDA) until May 2022. Northumberl8nd Countycounal announced a £1.50 million community refurt)1sh￿t schemefor Newbiggin Sports and Communitycentre. Planning has now been pas* for the propct and work commenced during November 2021 wlth a 9 month pl￿ned constructlon ts'me. The refurbishmentwill inthde a new roofand r8m8rklng of the fl to the main sports hall, refurbished and enlarged gym area, newspin studio, new dry change facilities, relocation of the library and general redecoration. NorthUMberf￿d CommunlllesTogether8re to operate part ofthe bulldingwhich wllllncludathebar and comrnunityhall. Accident reporting and n)nitorlng was moved across to a national datsba8e, Slltch, which has allowed for nab'onal benchmarking of acridents and causes. A restruC￿re of the Senior Leadership team in August 2021 has reduced the Area Managers from 7 to 4, and we have created specrfiG roles as a resource to allow a managerto focuson ￿alIty Managementacross the Estate, and to speclflcallyfws on Wellness and Membership relention. A programme of audits and improvement plans have already been identified to ensure a consistent and safe approach is estsblished across the Estate. As part of a wider manage￿￿nI restruclure, we have reduced Ihe numberof Swim Co- ordinators from 7 to 4, and Fithess Managers from 7 to 4. in order to create focu*J full tim8 rol85 thatcan take ownership and drive customerdelivery. OurAdministr8kn Managers have also been reduced fomi 9 to 4 through process efficiency and n( fom part of an overall regional management structure along with Ihe swim coordinators. filness managersand General Managers. Environmental n￿aSureS included r8duclion of plastic waste through r8movng disposable blue shoe covers to access pool changing roo￿6 and the introductirn reusable takeaway cups in the cafes. Page 13 Truste8s'AnnualReportforthe yearended 31 March 2021 We are con1inui)g to Improve access and sepiices at our facilities for disab￿1 customers and stsff, with Ihe installation of new pool equlpment as well as plann&1 construction of new changing places at Newbiggin. Berwid(, Ponteland, Blyth and Morpeth. We have also invested in specific Octane gym equipmentat Wenhvoth and furtherinvestmentis already plannedatallournewcentres underconstruction.Aspart of our new build and refurbishment programme we are working dlrecllywlth an Access and Inclusion Consultsntto take all possibl8d8sign applications into consideration. Conslwction of the new £21.00 nmllion leisure centre in Morpeth commencaj January 2021 and is duefor completion in 2023. Exlenslve work to Ihe stsjdio pool has been flagged at both Rothbury and Wenilvo lelsure centres. Rothbury's swimming pool will be closed forseveral monthsdue to the nature and scaleof thework required (£0.10 rrillion). andWent4vorth'sstudK) pod wa8 completed In August2021. The brand new Ponteland Leisure Centre was opened 8tth8 end of November 2020, but duo trj COVID-19 was dosed almosl as soon as it opened. The centre reopen& on 12 April 2021 and provid8s an array of brand-new acts'vib'es and facilities inthding cllmblng walls. soft play area. spa. spinning sludio, gym, café. and sports bar. Our Partners Adve Northumbefland prlmarftyseTves the residents of Northumberfand and In doing 80 recognlses the need to work collaboratively with like-minded partners to take advantsge of the vast opporlunities avallable to dellver shared and overfapping objectives. Active Northumberfand's endeavors lo maxlnlse partner5hlp working has led to the follomng progress., A pioneering research and development pro￿￿ is planned with Technogym, and Westfleld Heallh to radlGally Smprove customer experience and outcomes, rnvingfrom a fitnessfocusto a holis1icwellnessfocus. A research and evaluatlon pathersh ipforspeclallst Exercise on Referral services Is in place with Edinburgh Napieruniversty. The incluslve County School Games has been successfultysupportedvirtuallydue to the COVID-19 pandemlc.Thlswas delivered by way of physiral activity as opposed to traditional competition fomBt engaging young people through participation, leadershipopportunltles. Continuod proaclivity towards supporting national Industydevelopments which have futhered leaming and raised Ihe profile of Active Northumberfand with Communty Leisure UK. UKactive. Chartered Instiknte of Management of Sport and Physicxl Aclivity, Swim England. and Swimscolland. Page 14 Trustees'Annual Reportforthe yearended 31 March 2021 An audit of the aquatic development programme was undertaken, in Conjunction the Institute of Swimming and Swlm England, lo provide the Infomation to make changesto lh8 swimmingdevelopmentprogramme. Thiswas part implementedduring 2020 but will be reviewed and reimplemented during 2021 once we are able to relum to nomial operating. Risk Managemènt A revised and improved risk register is in place and Is managed bythe Head of Operations and Services with oversight from Ihe Chlef Executive and the Board. The scorlng methodology has substsntiallychanged since 2017-18. and a numberof key risks been successfu Ily dosed. The Board receives regular reports for consideration and take actlon as required. Key strategic risks going fO￿ard are summarised as follows: Fallure to be able to facilitste number5 of Custome￿ due to possible social distan(ing restrictions followingthe COVID-19 pandemic. Failur8to g8nerate sufficientrevenueas a rnsult of the forced dosures, and ability to remain liqu id. Failure to maintain viability with a reducing management fee and operate within an Increaslngly competltive and challenging commercial trading environmenL Failure to develop and r8tsin the capabllltywithin IhewO￿forc8to dellvertha strategic objectives identified wilhin the Transformation Strategy. Failure to posib'on the Company as a credible provider of an increased range crf specialist senrflces wlthln the health. social care, and education cornmlsslonlng markelplace. Failure to maintsin a responsive and dynamlc range of central support seNlces that can assist transf0m￿tional deVelOp￿nts and change atpac•. Flnanclal Rlsk Management Objethes and Poll¢les The flnancial instNments used by the Group are cash and banking facili￿.eS and these provlde f5nan¢e forlhe Group's operalions. The main risks arising from Ihe Group's financial instruments are credit risk and liquidty risk. The Tnjstees reviewandagree policiesfor managing Ihese risks, which are as follow& Cr•dli Rlsk The Group's princApal financial assets are cash and debtors. All cash deposlts at Ihe balance sheet date were held in the UK. Reputablefinanoal institutions are used in the placement of cash deposits, to reduce the overall credit risk to the Group. In addition, the Group reviewsthe debtor position regularfy.The Group considef5th8 risk of significantb&l debts to be low. however. thiswill need to b8 r8%fj8wed regularlyas a r8sultof the COVID- 19 pandemicand subsequenteconomic uncertainty. Page 15 Trustses'AnnualReportforthe yearended 31 March 2021 Liquidity Risk The closure of all Active Nothurnberfand's facilities on 20 March 2020 resulted in a compl8t8 cessation of all revenue streams for the business with no sign of when busn8SS reslrictions would be lifted. The Compan￿8 current cash reserves ensure liquldityfor 4-5 weeks. although we have been provided with a lett8r of support from Northumbetsnd County Council to ensurethatwe can conb'nue to be a liquid Companyand to sustsin wr cash reserve at £1.328 million, As soon aswe knewthatlheclosurewas golng to besuslained and nota brlef dosure, we entered discussions with Northumberland County Council to dlscuss our current circumstances. Discussions conb'nue to take place beiween Active Northumberland 8nd the Council, and an open book process has bean In operatlon In order that they are ful awa￿ of the continuing levelsof revenuesupportthatwill be requiredto ensure Ilquldty¢ the business. The (knup seeks to manage financial risk by ensuring suffici￿1 liquidlty Is avallablg to meet foreseeable needs and to invest cash assets safely and profitably. Certain infonnation r8quir8d to be disclosed in theTrustees' Report including prlncipal tsk and uncertaints'es by regulations made underseclion 416(4) CA 2006 to b8 dSsclosed In the Trustees. report, are covered in the Strategic Report as the Trustees conslder that these are of strategic importance. APp￿Ved by the Board and signed on its behalf by: e Rlley Vlce Chalr Date: Page 16 Trustees'Annual Reportforthe yearended 31 March 2021 STRATEGIC REPORT Flnanclal Revlgw Financial Performance The overdll resultforthe Charity, and itstrading Company.forlhefinanckel yearwas a1055 of £570.092 (2019-20: £719,006 loss) before actua￿81 losseslgains on Ihe defined bendt pension scheme. The loss of £570,092 relates to a netexpendiknre of £609,000 relaling to pension cha anda netincomeof £38,908agalnstrestrlcted fundswhich isduetolhe transferof reserves relating to school games seNlces and the inadivity projed. Reserves Pollcy The reserves policy 18 to meet the needs of Ihe org8ni8ation and agree a suitsble level of reserves to meet any reasonable contingency that may arise. Currently the Board is agre8d that a reserve of 10% tumover or three months staffing costs (£1.50 - £2.00 million) is appropriate as long as the Partnership Agreement wlth Northumbertand County Council Trmains in place. As at 31 March 2021 resepies consist of unrestricted general fundsof £1,327.548 (2019- 20: £1,327,548), deslgnaled funds of £6,$34.000 deficit <2019-20: £4,072,000 deficit) and restricted reserves of £192,848 (2019-20: £153,940). Investment Policy Underthe Memorandum and Arb'des ofAssociation, the Charity has the power to make any invesknent that the Trustees see flt. The Charity is now utilising the flnandal Infonnation system and therefore th6 bank account of Northumberfand County Coundl for all payments and receipts. Princlpal Funding Sources Northumberfand County Councl managementfee Sport England (grantfundingforspedfic p￿￿Cts} Town and Parfsh Councils (grantfundkng forspeclfic pro*cts) Going Concem The Active Northumberland Board agreed a negative budget for Ihe finanaal year due to the uncertainty caused affjund the forced closures as a result of the COVID-19 pandemlc and our obvious loss of all revenue. In prevlous years Advan Northumbedand gave a charitable donation of up to £1.00 million to Active Northumbedand however this arrangeThnt has now ended. Due lo the cessation of the arrangement it was agreed at the meeling of the County Council on 19 February 2020 that th8 Council would in￿aSe the managem8nt fe8 in 2019-20 and the subsequent two years by up to £1.00 million. Page 17 Trustees'Annual Reportforthe yearended 31 March 2021 Discussions contin ue to take place beiween Active Northumberland and the Coundl, and an open book process has been in operdtion since the very beginning of the pandemic in order that they are fully aware of the continuing levels of revenue support that will be required to ensure liquidity of the business. In Febnjary 2021 the Counal confim8d it would provide significant addib.onal financial support during the 2020-21 financial year to enable Active Northumberland lo deliver financial balance and to maintain its current level of reserves. During 2021-22 the Council expects to be able to access additional national funding on behalf of Active Northumbertand. ReF)Orts on Financial Perf0m￿nCe for 2020-21 have been produced on a monthly basis from August 2020. The reports are ag￿ed with the Executive Team and are reported to the Financeand Auditcommittee and1heAclive Northumberland Board. WO￿ has been ongoing throughoutthe year to model budgets based on estimated lockdown restrictions and occupancy levels. Following the Govemments -roadqmap" announcement on 22 February 2021 mre detailed budget planning has commenced based on the stepped phases of Ihis plan. The Charity's unrestiicted reserves are £1.328 million. Fu nds in D8ficit All employ8rswilh final salary pension schemes must include the financial posib'on of tha pension fund in Iheir own account4 in accordancewith FRS 102. At 31 March 2021 the Cha￿ty'$shareofIheTYneandweaTPension Fund deficrtW8s£6.534.000 which is shoAn in the balance sheetas a liability(31 March 2020: £4,072,000). Following the merger of Northumberland County Council Pension Fund inlo Tyne and Wear Pension Fund fftVPF) on 1 April 2020, Acb've Northumberfand became a LGPS 8dmlsslon body In TWPF. Northumberfand County Council has given a guarantee to TWPF In respect of Active Northumberland's LGPS liabilities. The guarantee can be called on should Active Northunknerland defaulton its obligats'ons to TWPF. Due to changes in pension legislation. and the Icmg-term uncertainty about P8nsic schem8 costs, Actlve Northumberland undertook a rigorous 8valuab.on process andpned the SPORTA pension scheme. Friends Lrfe. andthis provider is nowthe vehidefor"auto- enrolmenfforemployees. Funds Held as Custodian Trustee on Behalf of Othe Acllve Nothumberland holds cash funds on behalf of Blyth Valley Trust for Youth, a reglstered Chatlty (number 514145) wllh obfrdlves of Ihe advancement of educaticn wellbeing of young peoplefrom the borough of Blyth Valley. Details of the amounts at the d can be found in note 28. Page 18 Trustees'Annual Reportforthe yearended 31 March 2021 FUTURE PLANS INCLUDING RISKS AND UNCERTAINTIES Working with Northumberland Countycounciland ourpartnerswe will be very busy in the year ahead.fulure plans are summarised as follows: Furlher develop the look and feel of our website and App based upon custom8r feedbackand introduce an industy leading customerpu meyand reception experi￿ across Ihe estate. Full opening of our Innovative new leisure centre in Ponteland, glving us additi(￿al revenue eamlng potentlal over the current facility which will be denx)lished during phase two of th8 transformation propct of the new school and lelsure facllity. Develop a bespoke corporate wellness service offer using the leaming achieved f￿)M the EXOS.WesffieldHealth.TechnogymandSheffield HallamUnrrfer5itytestandleJn proi&cL Conb'nue to develop our Exercise on Referral Scheme including the Introduction of a weightmanagementcompon8ntwith our PublicHealth Team partners, Momenta Edinburgh Napieruniversity. Continueto develop our new caterfng and vending brand that seamlessly allgnswlth our vision to provlde great places to relax. work and socialise with hlgh qUa￿ty nutritional options and solutions for our customeys. Introduce a Quality Management Framework to drive the successfu l achievement of Questaccreditation al our larger facilib'es. Re4ntroduce our aquallcs programme consistenlly at all facili￿eS and dellver bespoke recruitrnent and development programme for swlmmlng ieach6rs wlth Ixjr partners the Instituteof Swimmlng. Continue to develop ou r Group exercise programme maklng L8s Mills a core fealmre at 811 our facilities. Develop and roll outour new outdoor Bootcamp productacross Ihe portfolio to promote vigorous and healthy outdoor physical exercise. Furtier develop community volunteering to grow and sustain activities to combat postnatal depression with our parlners Sport England and the University cl Northumbrla. Continue with the second phase of our Leadership Continuing PrOfeSs*￿al Development programme wilh a long4emi conNnitrnent to developing leadership, qualifications, and skills. Produ ce our Workforce Development Plan to fundamentally transform our workfory from a fitressfocus to wellnessfocuswith ourpartners Fuknre FIL Introduce a leading4dg8 PE and school sport Continuing Professional D8velcprrffit programme for teachers with ou r partner schools to drive the consistent offer of high- quality PE and school sport countywide. Page 19 Trusteos'Annual Reportforthe year ended 31 March 2021 Acknowledge and celebrate our employee achlevements culmlnaling Sn an awards evening atan extemal venue. Complete the transformab'on of ourheadofficespace at Concordia Leisure Centre Ihat will occupy the forrner Cramlington library spa(*. Complete the design and planning phases forBefwick, Morp8th, Newbiggin, and Btrjth Sport and Leisure Centreswith ourparkners AdvanceNorthumberfand,GT3 andJDDK architects. Complete energy efficiencyaudits and produce a new progressive anergy effiCi￿C and recycling plan to reduce ourcartx)n footprinL Develop and roll out revised Company Goals and Vision to the workforce thnigh marketing campaigns and road shows. Investment in L•lsur• Facilltle• Nothumberfand County Councd has invested Signif￿nlY in sport and laisure provis across Northumberfand and continues to provide investrnent In leisure facililes thrw busin8ss plansb8ing submitted and agreed with Active Northumberfand. This has resu in £0.70 million to ￿fU￿1$h the gym and r8C8ption ar8a at Wenttvorth (Hexham)which was completed in September 2019. coupled with the relocation of Northumberfand Adult Leaming into four new r8furbished classrooms. Futher mapr Investrnents invdbe rebuilding stste of the art leisure facilities in Ponteland, 8eThvick and Morpeth, and Ihe refurbishrnenVredevelopmentof8lyth Sports Centre. A new propct has commenced vthv wlll see an investment of £1.50 million to refu￿lsh the Newbiggin Community Centre. Comblned committed capital investrnent is circa £65.00 million. In additi4￿, Northumberland County Council has invested in a planned programme of major repalrs and backlog maintenance work which is appropriately scheduled on an annual basis. Workforc• Requlrements The workforce will continue to be kept under review to ensure the Company has the capability to deliverlhe strategic obpcts'ves idents'fied in theTransformation Strategy, whilst maintaining an efficAentemployee cost base. Eff8ctiv8 racwitment and training will on￿ that the Company continues to provide equal opportunities in employment and that the workforce continue lo have the relevant skills and abilities for the organisation's Cur￿n1 and futsjre needs. To supportthis, a leadership developmentpwramme has been designed and was rolled outfrom June2019. and the Worf(force Development Plan will be enhancedto indudea progressive range of new indu5ty leading professional developmentopportunities. The Board recognise that faced with the challenge of transforning services in increasingly competitive trading enwronn*nt with a reducing management fee. the Company mustdevelopand ￿tsIn the expertise and skills n8c8ssarylo d811v8rinv8stm￿l andgrowth, andmost importantylo ensurethatthecompanyrernainslwe to its charitab objects. Page 20 Trustees'Annual Reportforthe yearended31 March 2021 Approved by the Board and signed on its behalf by: Jane Riley Vice Chair Date: Page 21 Trusteos'AnnualReportforthe yearended31 March 2021 Trustees Responsibilty Ststement The Trustees (who are also Directors of Active Northumberfand for th8 purposes of Companylaw) are responsiblefor preparing Ihe Trustees, Annual Reportand the finaniial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom G8nerally Accepted Accounts'ng Practice) including FRS 102 'The Financial Reporting Slandard applicable in the UK and Republicof Ireland.. Charity and Company law requires1he Trustees to prepare financial statements for each financialyearwhich givea true andfairwewoflhe stste of affairsofthe charitsblecompany (and the Group) and of the incoming resourcesand application of resources, induding the Income and expendlture. of th6 charttable Company and Group forthat period. In preparhg Ihese finanrAal ststements, Ihe Trustees are requSred lo: select suitable accounllng polldes and then apply them consistently. ob8eprfe the methods and prinriples In tha Charltles SORP. make fvdgernents and eslimate8 thal are reasonable and prudenL stst8 whetherapplicable UKAccounting Standards have been followed:and. prepare Ihefinancial statements on a going concem basis unless It Is Inapproprlate to presume thatlhe Charitable Companyand Ihe Group wlll continue in business. The Trustees are responsible for keeplng adequate accoUn￿n9 records thal disclose wlth reasonableaccuracyat anytime thefinancial position ofthecharltsbleCompanyandGroup and enable Ihem to ensure that Ihe financial statements comply wlth the Companies Act 2006. They are also responsible for safeguarding lh8 assets of the charftable Compa)y (and Ihe Group) and hence for tsking reasonable steps for the pr8venllon and det6Ctlon of fraudand other irregularits'es. In so faras the TNstees are aware: there is no relevant audit inf0m￿tion of which the charitable Company and Qoup's auditoris unaware., and, the TTUStees have taken all steps that they oughtto have tsken to make themselves aware of any relevant audit information and to establish that the audilor is aware of that information. The Trustees are responslble for tha maintenance and Integrity of the corporate and financial inforniation included on the charitsble COmpan￿S website. Leglslatlon In the United Kingdom govemingthe preparation and dissemination of financial statem8nts may differfrom legislation In otheriurisdiclions. Approved by the Board and signed on its behalf by: Jane Riley Vice Chair Date: Page 22 IndependentAuditorfs Reportto the MembersofActive Northumberland Independent auditorf8 r•port to the Irustws of Active Northumberland Limited Oplnlon We hav8 audited the financial statements of Active Northumberland Limited (the'parent charity')and its subsidiary{the'group')forthe year ended 31 March 2021 which comprise th8 Consolidated Statementof FinancBI Aclivitses, the Balance Sheet('parentchanty and 'group'),the Ststement of Cash Flowsand notes lo the fin8nclal state￿nts. Including a summary of significantaccounting policies.Thelinancial reporting framewoTkthat has been applied in their preparation is applicable law and United KingdomAccounting Stsndards. including FRS 102 Yhe Financial Reporting Standard applicable in the UK and Republicof Ireland. (United Kingdom GenerallyAccepted Accounting Practlce). In ouropinion, Ihefinancial statements: Ive a true andfairview ofthe state of the group'sand parentcharity's affairsas at 1 March 2021 and of thegroup's Income and eXpendi￿refOr theyear then ended: have been property prepared In accordance with Unlted Klngdom Generally Accepted Accounting Practice: and have been prepared in acrdance with the requlrements of Ihe Companies Act 2006. Balls for oplnlon We conducted ouraudit In accordancewlth Intematlonal Standardson Audlllng (UK) (ISAS (UK)) and applicable law. responsibilit'es underthose Standards8￿ further described In theAudilols responsibilities forthe audit ofthe financial statements section of ourreport We are independentofthecompany in accordance with theethical requirementsthat are relevantto ouraudit oflhe financial statements in Ihe UK, including the FRC'S Elhical Standard, and we havefulfilled ourotherethical responsibilities In accordancewilh these requlrements. We believe thatthe auditevidencewe have obtsined is sufficientand appropriateto provlde a basis for our oplnion. Concluslons rnlating to golng concern In auditing theflnancial ststements,we hav8concluded thatth8 trust88S' US8of the going concem basis of a(￿Unting in the preparation of thefinancial statements is approprlate. Based on the work we have perforn￿d. we have not idenb'fied any material unc8rtainti88 relat'ngto events or conditionsthaL individualtyorcollectively. may cast significantdoubt on Active Northumbertand Limited's abilityto continue as a going concem for a period of al leastlwelve monthsfrom when thefinancial statements are authorised for Issue. r responsibilities and the responsibilities of thetruslees with respect to going concem are described in the relevant seclions of this repo Other infomiatlon The trustees are responslble forthe other informalion. The olher infomiation comprfses the information inckjded in IheTrustees' Annual Reportand Financial Staternents other Ihan thefinancial statements and ourauditorfs report thereon. Our oplnion on the financial statements does not cover the other infomiation and, except to lh8 extent otherwise explicitly stated in our report. we do not express any fomi of assurance conclusion thereon. In conneclion wth ourauditoflhe financ￿1 statements, our responsibility isto read the other Information and. in doing so, (Jjnsiderwhelherthe otherinformation is materially inconsistentwlth thefinancial slatementsorourknowledge obtsined in the auditor IndependentAuditoVs Reportto the Members ofActive Northumberland othenvise appears to be materially misststed. If we identify such material inconsistencies or apparent material misstatements, we are required to detemine whetherthere is a material misstatement in the financial statementsor a material misstatement oflhe other infonnation. If, based on the work we have performed, we conclude thatthere is a material misstatement of th is other infomatson, we are required to report Ihat facL We have nothing to report in thisregard. Oplnlons on other mattors presCrIb￿ by thè Companbes Act 2006 In ouropinion, based on the WO￿ undertaken in the courseof Ihe audit: the infom)ation given in the Trustees. Repor( which includes the Strategic ReFK)rt and the Twstees, Report prepared for the purposes of company law, for the financial yearfor which thefinanaal statements are prepared is consistentwith the financial statsments.and Ih e Strategic Report and the Trustees. Report induded wilhwi the Trustees, Report have been prepared in accordance with applicable legal requirem8nts. Matt•r3 on whkh we ar• requlr•d to r•port by exceptlon In lightof the knowledge and understsnding of thecompanyand its environmentobtained In Ihe course of the audlt.we have not identified material misststements in the Stralegic Report or the Trustees. Report induded within the Trustees. Report. We have nothlng to report In respect of the following matters in relation to whlch the CompaniesAct 2006 requires us to report to you if, in ouropinion: adequateaccounting records have not been kept, or ￿tUrnS adequatefor ouraudit have not been received from branches notvisited by us.or the flnanclal staterrtsnts are not in agreement with Ih8accounting recordsand returns: or ceitsln dlsclosures of trustees. remuneratlon speclfled by law are nol made; or we have not received all the infomiatlon and explanab'onswe requireforouraudlL Respon51bllllles of Trust••• As explained more fullyin theTNstees' Responslblltystatementset outon page 22, the trust88s (who are also the trustees of the parentcharity for the purposes of company law) are responsible forthe preparation of Ihe financial statements and for being satisfied that they give a tNe andfair view, andfor such intemal control as the tnjstees deternine is necessaryto enable the preparation of financial slatements thalare free from material misstatemenc whetherdueto fraud or error. In preparlng the flnancSal ststements. the trustees are responsible forassessing the company's abllltyto contlnue asa going concern, disclosing, as applicable, matters related to golng concem and using Ihe going concem basisof accounting unlesslhe trnste8S 8ith8r intendto liquidatethe companyor to cease operats'ons.or have norealistlc altemative butto do so. IndependentAudltorfs Reportto the mernbe￿ of Active Northumberland Audltorfs rosponslb511Ues for the audlt of th• financial stst•m•nts Our obkctives are to obtsin reasonable assuranc8 aboutwhe1herthe financial statements as a whole are free from material misstatemenL whetherdueto fraud oremr, and to issue an auditorfs report that includes ouropinion. Reasonable assurance isa high level of assurance butis not a guarantsethal an auditconducted in accordancewith ISAS (UK) will alwaysdetect a material misstatement when it exists. Misstatements can arise from fraud or error and ar8 considered material if. individuallyorin the aggregate, theycould reasonably be expecled to inflU￿Cethe economicdeosions of users taken on the basls of thefinanclal ststements. Irregularities, includwig fraud. are instances of nonwcornpliancewith lawsand regulations. We design procedures in line with our responsibilities. ou111n￿l above, to detect material misstatements in respect of irregularities, includingfraud. Based on our understandingof the companyand its indus . we identified thatthe principal risks of non-compllancewith laws and regulations relate to a numberof Local f￿VeMMent Acts via Nexus the parent body, along wilh employmentregulations. health and safety regulations. anti-bribery, corruptlon andfraud. money laundering and we considered theextentto which non- compliance mighthavea material effecton the financial ststern8nts. We also considered those laws and regul81ions Ihathave a direct impact on the preparation of the financial statements, such as the Companies Acl 2006. We evaluated the Irustees, and management's Incents'ves and opportunitiesforfraudulent manlpulation ofthefinancial state￿￿nts (includyig the risk of override of controls)and detemiined thatthe principal risks were related to posting manual ioumal 8ntriesto man5puIatefln￿clal perf0m￿nCe, and slgnificantonewoff orunusual transadons. Ourauditprocedures were d8slgned to respond to those Identr'fied risks, Including non- Compliancèwith lawsand regulalions (Irregularlts'es)and fraudthatare matertal to the financial statements. Our auditprocedures induded butwere not limited to: Discussing with thetrustees and managementtheirpoliciesand procedures regarding compliance with laws and regulations. Communicating identified laws and regulationsthroughoutourengagementteam and remaining alertlo any indlcationsof non rts Consolidated Ststementof Flnanclal Actlvltles (including Income and Expenditur8Account} for the yearended 31 March 2021 Unr•strKtsd FuThJs Totsl Fund¥ Gen•ialFunds Deslgnated FuTrJi 2021 202 Net bncomel(expendi￿r?l {609WOI 38?08 (571.092) 1719,006 Trdnsfprsb8trMonfimds 19 Not {r￿￿￿expOnd￿jr8l before other reco9nlsed ga andlos (609,0001 38.908 1570,092 1719.006 Oth•rr•¢ogthedg•kn&ffjosseg1 Remeasuremèntc4the nèl dèfin8d bgnefrtpensi liabilty (1I53X4)01 11.053,0001 1441,1)JO NET PKJVEMENT IN FUNDS PJ62,0001 38,908 12A23,092} 11,160,ryJ6 R•con¢latkJnoffvnd¥ Total fijnds tKovghtkn¥ard Totsl lunds caTriedl)rward 1327,548 11072.000) 16,534,01101 153.940 {2,$90,512} {5,013,604} 11,430.506 12,590,512 1327,548 192 All gains and losses recognised in Ihe year are induded in Ihe consolidaled statement of financial activits'es. There arn no materfal differences between Ihe net income for Ihe yèar and the hislDri¢al cost equivalents. Page 28 Balance Sheet as at 31 March 2021 Group 2021 Char 2021 Not• 2020 2020 oda8iets TangitAefix8d as86ts Longt8m inv8strn8nt 11 196229 240,827 196229 240.821, Ciirrnntass•ts 13 49P06 3A31.796 26,72Q 3￿07￿21 59,037 3537068 31.010 37,556 3J31A78 24170 3,493,904 Debbrs 14 3,527,014 28,51 3,577,288. Cash al bankand in hand 25 3,627,915 Lkbltl•s Credilor8'.IZr￿nts due ￿thin0 yeai Shorttsmi prolAs￿n N•l￿rren1 assets 15 11,993,735) 12.149J21) {1 980,1181 {2,098,695 16 1,513,787 1,478594 1,513,786 1,478,593, Tolalas$8ts1oss wrrenlliab4ilies 1,710I16 1.719,421 1,710N16 1,719,42 l Long t•rni Ilabldos CredIto￿..AnyMJnts due inTrm than e year Deffined benefilpen$on Ilablllty 17 {189M20) {237.933} 1189,620) 1237,9331 2122 16,534,000) 14P72,OLWJ) {6S34,000) 14,072,OOOt 16,723ffi20) 14.309.933) {6,723,620} 14,309,9331 NEfLMILrriES 15,013N4) 125W512) 15,013,604) 12,59J,5121 Fvnds olth• Charfty: UnrnstiitsJfund$ P•nsionfeserve 1 J27J48 1327Y8 1,327 1,327,548 6I34.000 4P72,0Tr) &534,000 4,072.CiOO . 15206A52} 12,744.452) {5206,4521 (2.744,4521 18 ' R•stsleied fvnds Rln -fenced rants 19 192 192148 153,940 153,940 192,848 192,848 153,940 153,940 TOTALFUNDS (5,0131041 12%05121 15I13MQ4} (2,590,512) Approved by the Board and signed on its behalf by". Jane Riley Vice Chair Date: Company Reglstratlon Nun*er. 08484436 Page 29 ststementofcash Flows as at 31 March 2021 Note 2021 2020 2021 202 h from operalingacS￿￿6s sh flowsfrom inv8*in98thitie&' st recei 42A85 29,899 43,135 30.43 l ¢a8h prnirided bY1n￿l￿g￿liits$ hlcws Inandngathb8& epaymenl0fb0rrth￿ng el cash wed byfinencirvj ￿*¥1￿￿5 146.77SI {46,7751 {45259) {45259) 146.7751 146.7751 145259 145259 hangein cath and￿th gquibpknbin è reporlfVJ P8dod hand cath 6quSY4kntsat glnnlng olthé reporb'r,g perfod ashand cash equivalontsath8 e rwrbThJ p8rfod 25 14JOI 115J60) 13,6401 114,825 31,010 46.370 28,510 43J3 21,720 311110 2U70 2851 Page 30 Notes to the Consolidated Financial Statements forthe year ended 31 March 2021 Accountlng Pollcles 1.1 Basls of Preparatlon of the Flnanclal Statements The financial ststements are prepared under the historical cost convention and in accordancewith the Statement of Recommended Practice"Aco)u nting and Repo￿ng by Charities (SORP 2019)" applicable to charities preparing their accounts in accordancewllh the Flnancial Reporting Standard applicat4e in the UKand Republ of Ireland (FRS 102), affeclive 1 January 2019: and the CompanlesAd 2006. The paitcular accou nling policies adopted are described below and have been appli￿1 consistentlyin the currentand prior year. Adive Norfhumberland meets the definilKXI of a public benefitentity under FRS 102. Assets and liabilits'esare initially recognis&J at hlstorlcal cost or transaction value unless other4vise stated In the relevant accounllng pollcy note{s). Going concem The Aclive North umberland Board agreed a negative budget for the financial year due to the uncertainty caused around Ihe forced dosures as a result of the COVID- 19 pandemlc and our obwous loss of all revenue. In previous years Advan Northumberland gave a charitable donation of up to £1.00 million to Active Northumbedand howev8rthis arrangemont has now ended. Du8to Ihe cessation of the arrangementit was agreed at the meeling of the County Council on 19 February 2020 Ihat the Council would increase the managerrent fee in 2019-20 and the subsequenttwo years by u p to £1.00 mllllon. Discusslonscontinuetotake place between Activ8 NOrfhUm￿rIand and thecoundl. and an open l)ook process has b88n in op8ration since the very beginnlng of the pandemicin order thatthey are fullyawareoflhe continulnglevelsofrevenuesupp(xt that will be required to ensure liquidtyof Ihe business. In February2021 the Coun¢il confirned it would provide signifi￿laddItiOna1rlnanclal SUPFK>rtdu￿ngthe202o-2l financial year whlch will enable Active Northumberland to deliver financlal balan and to malntsln Its current level of reser4es. Durlng 2021-22 the Councll expects to be able to access additional national funding on behalf of Aclive Northumberland. Reports on Financial PerfO￿nanCe for 2020-21 have been produced on a month basis from August2020. The reports are agreed with Ihe Executive Team and are reported lo the Finance and Auditcommittee and the Aclive Northumberfand BO8￿. Work has been ongoing 1hrough￿Il￿e year to model budgets based on estimated lockdown restrictions and occupancylevels. Followingthe Govemments°road-map" announcementon 22 Febwary 2021 mre detailed budget planning has commen¢xl based on Ihe stepped phases of this plan. The Charity's unrestricted reserves are £1.328 million. Page 31 Notss to the Consolldated Financial Statements forthe year ended 31 March 2021 Pension obligatiffis of £6.534 millicm shov•n in note 22 have been provided in Ihe finanaal ststements in accordance wlth FRS 102. The pension deficit does not direclly affect the ability for Active Norlhunl)erfand to continue trading and the liability 15 drawn up using acluarial assumptions. The ex8Ct value of the liabilty cannotbe accurat81y quanb'fi&J dueto the uncertaintyoffutureevents. Th8 P8ns liability does notfall due immediatsly as it relat6S to fuliiree¥Ents. Given the explanation above. the Board is of the vlew that Active NorthunknrlandLs a going concem and ableto meet its liabilltiesasthey fall due. 1.2 Basls of Consolidation These financial ststements con501idate the results of the Charity and its whcAIy ownedsubsldlaryActive Northumberland Trading Llmlted on a Ilne-by41ne basls for the year ended 31 March 2021. The charitsble Company has elected to lake the exemption under section 408 of the Companies Act 2006 not to present the parent charitable Company ststemenl of financial aclivitie8.A¢tive Northumberfand Tradlng Llmited Ss exempt from Ihe requirements of the Compani88Act 2006 relating to the auditof accountsunderseclion479A. Thè résults of Ihe subsldiaryare shown in no 12 Incomè Income Is recognised when the Group and Charfty has enllljementto the funds; ￿Y performance conditions attached to Ihe itempendI￿re arising from the ptycts Is shown as r6*rict8d activitie& Where grants related to perfonnanceand specific deli%erables, theyare accou ntedfor as the Charity eams the rightto consideration by its performance. Where Income is received in advance, recognition is deferred and included in creditors; and, whwe entidernentarises before incomeisreceived the incomeis accNed. Page 32 Notes to the Consolidated Financial Statements forlhe year ended 31 March 2021 1.5 Expendlture E>penditure is recognised when a liability is inajfred. Contraclual arrangemen and perfomiance related grants are accounted for as goods and s8rvic8s are supplied. Resources eypended are indudedon the 8tatement of financial activitl8S on an accruals basis. inclusive of any VATwhich cannot be recovered. Expenditu￿ is classified underthefollowing activity headin￿. Ralslng fu ndsare those costs Incurred in Ihe delivwy of trading activitles. Charitable ac1ivities indude exPendI￿re assodated wlth the provlslon of leSsure and health prOn￿￿'on actiyities. These include both direct and related co￿% Expenditu re on charitsble activities inthdes direct costs of deliverfng grants and seThices. and support costs, These are the functionsthat assist th8 work of the Charity butdo notdireclly undertake tharitable activities. includng manag￿lt and back office costs. These costs are shown In more detall In note 6. Govamance wsts Include e>pendI￿re incuff8d on complying wilh cons11￿ti￿al and aatutory requirements. 1.6 Taxation The parent Companyis a registarod Charityand has nollabllityfor corporation tsx its charitable activities underthe Coryx)ration Tax Act 2010 (chapters 2 and 3 of part 11, sedon 466 onwards) or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent surpluses are applled to Its charftable purposes. 1.7 TangibleAssets and Deproclatlon Tangible fixed assets are carrfed at cost less depreciatlon and Impalrmenl. Depreciation 15 provided at rates calculated to write off the cost of the fiy£d assets over their expected useful lives on the followingbasis: Fixture, fitiings, and equipThnt- 15years. 1.8 Investments Investments in subsidiaryundertakingsare held at cost less impaIn￿t. 1.9 Stock Stock is valued at the Icwer d costand net realisablevalue. No provision against obsolele or damaged stock is deemed necessary. Page 33 Notes to the Consolidated Flnanclal Statements forthe year ended 31 March 2021 1.10 P•nslon Costs Defined Contribution PensK)n Plan The Charity op8rat8s a defined wntribution plan for its employees. A defnaj contribution plan is a pension plan underwhich Ihe Charity pays fixed contributicms Into a separate ents'ty. Once the contributions have been paid the Charity has no furtherpayment obligations. The contribUb'onsa￿ recognised as an expense in the consolidated statemenl of fIn￿CIal activities. Th8 assets of the plan are h&J separately from the Charlty In Independenly administered funds. Teachers employed by the Charity have membershlp of the Teachefs. Penscn Scheme. administered by the Teachers, Pensions Agency. It provides teachers wih defined benefits upon thalr rellremonL The scheme Is a defined benefit final salary scheme. It is notpossibleforthe Charityto Idenofyltsshareoftheunderlying liab11￿.es in the scheme and it is therefore classed as a defined contribution scheme for the purposes of the a¢o)unting requlremantsof FRS 102 anddoes not form part of the pension deficil. Defined Benefit Pension Plan The Charity operates a defined banefit plan forcertain employees. A defined beneft plan defines the pension benefitthat the arnployee will receive on retiremenL usually dependentupon several factors Indudlng but not1Smlted to age, lenglh of service and remuneration. A defined boneflt plan Is a penslon plan that is not a defin￿1 contribution plan. The liabilityrecognised in the balance sheet in respecl of the defined benefitplan Is the presentvalueof the definedbenefitobligation attheendof the reportlng date less the fairvalue of plan a&8ets at Ihe reporting date (If any) out if whlch the obligatths are to be settled. The defined benefit obligation is calculated using the propcted unitcredlt method. Annualty the Chanty engages independenl acluaries to calcu lat8 the obligallon. The present value is deterrnlned by discountlng the eslimaled future payments using market yields on high quality corporats bonds Ihat are denominated In sterflng and Ihat have terms approximatSng lo the esti￿ted period of the future pay￿nts ('discount rate,). The fair value of the plan assets is measured in accordan￿ wlth Ihe FRS 102 falr value hierarchy and in accordancewith the Charity's policyfor similarlyheld assets. This includes the useof appropriate valuation technlques. Actuarial gains and losses arising from experiance adfvstrnents and changes In actuarial assumpts'ons are charged or credited to other recognised gainsl{losses). These amounts togetherwith the rettjm on plan assets. less amounts included in net interes( are disclosed as 8thJarial gainl(loss)on deflned beneflt penslon schemes. The cost of the defined benefitplan. Tecognised in profit or loss as employee costs, except where indu(knd in the cost of an asseL comprises: Page 34 Notes to the Consolidated Financial Statements forthe yearended 31 March 2021 The increase in net pension benefit liability arising from ernployee seNice during the perlod. and. The cost of plan introductions, benefitchanges. curtailments. and setuements. The net interest cost is calculatsd by applying th8 discountrate to the n8t balance of deflned b6nefltobllgation and the fairvalue of plan assets. The Charityoperates a defined benefits pension schemand the penslon charge Is based on a full actuarial valuationdaled 31 March 2019. Ihe Charity is an admltted body of Ihe Tyne and Wear Pension Fund (IGPS.) provides penslon arrangements to Its employees. The scheme Ss classified as defined benefit scheme based on flnal pensionable pay and as such must comply with reporting stsndard FRS 102. This requires the Charity to disclose cArtain Infomialon concemlng a&sets. liabilities, income, and expendiknre related to the scheme for Its employees. These dlsclosures havebeen prepared byAON Hewlttthe actuaryofthe Tyne andwear Pension Fund.The purposeofthe penslons, disclw is to provide Glear inforrnatr'on on the impact of the Charity's obligation to fund the retirement benefitsof its staff on its financial posits'on and performance. Even wh&B thls obligatlon Ss discharged through a pen8lon fund, the Charfty Ss responsible for employerfs contrSbutions setat a level to ensurethe liabilities ofthe fund can be met. The liabilities of the pension scheme altribulable tt> Ihe Charity are included in the balanc8 sheet on an athjarial basls uslng the pr0￿cted unlt method. that Is, an assessmentof theful￿r8paYmentsthatwIII be made In relalon to retirement benefi eamed to date by employees based on assumptions about mortality rates, employee lumover rales and projections of eam ings forcurrentemployees. Assets have been valued at bld value in accordance with FRS 102. Referto note21 forfurtherdetail.The nei pension liabilityisanalysed into Ihe following components: c￿￿ent Service Costs The Increase in liabilities as a result of years of servica eamed this year is allocated to the consolidated ststernent of fIn￿CIal activities. Past Service Costs The Increase In 118blllll&s arlslng from current year decisions that affect years of service eamed in previous years. Interest Costs The expected Increase in Ihe presentvalueof liabilities duringtheyearas theymove oneyear closer to belng paid. Expected Retum on Assets The annual investrnentretum on thefund assets attributabl8to the Charity based on an average of the expected long4enn return. Page 35 Notes to the Consolidatsd Flnanclal Statements forthe yearended 31 March 2021 Aciuarial Gains and Losses Changes in the net pension liabilitythat arises because events have not coincKI￿1 with assumptions made at the last acknarial valuation orbecausethe acknaries hav8 updated their assumptions. 1.11 Funds Fundsheld bythe Charity are eilher. Unrestricted funds- these are funds which can be used in accordance wilh the charitable obpcts al Ihe discre1ion of the Trustees. Restrlcted funds - these are funds Ihat can only be used for a particular purpose as speafled by the donor or when funds have been raised for a partlcular pU￿)Se. Deslgnated funds - these are funds that Ihe Trustses have set aside for a partlcular puwise. 1.12 Financial knstruments Financia instruments are classified and accounted for. according to the substanca of the contractua1a￿angernenc8$ eitherfinancialassets,financial liabilities,orequty instruments. An equlty instrumentis any contractthat evidencesa residual interest in the assets of the Corrpanyafter deduclingall of its liaix'lib'es. The Charity and Group only have flnandal assets and flnandal Ilabilities of a kind that quallfies as baslc financial instruments. Ba￿¢ finandal Instruments are Inits'ally recognised at transacllon value and subsequently measured at their selllement value. Trdde and other debtors are recognlsed al the Settle￿nI amountdue after anytrade dlscount offered. Prepayrnents are valued at the an￿Unt prepaid net of any trade dlscountsdue. Cash at bank and eash in hand Include5 cash and short tern highty liquidinvestmentswhereapplicable. Provisionsarerecognisedwherethe Charityhas a presentobligation resulb'ngfrom 8 past 8ventthat will probably resultin the trans of fundsto a thlrd paty and theamounlduelo settle Ihe obligation can be measu or estimated reliably. Credltors and provisions are nomwlly recognised at their settiement amuntalter allowingforanytrade discounts due. Critkal Accounting Judgements and Key Sources of Estimation Uncertainty In the application of tho Group's accounllng polldes. whSch are described in note 1, the Trustees are required to make judgements. estimales and assumpts'ons abouttle carying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and assoclated assumpb'ons are based on histori(21 experience and other factors that are conSide￿d to be relevanL Actual results may differ from these estimates. The estirnates and underlying assumpts'ons review&J on an ongoing basis. Revislonslo accounting estimatss are recognised in the period in which the estimate is revised if th8 revision affects only that period or in the period of the revision and futureperiods if the revision affects both currentand futsj re periods. Page 36 Notss to the Consolldated Flnanclal Statements forthe year ended 31 March 2021 The area of estimation uncertainty incknded in Ihe finan(xal ststements are: At 31 March 2021, Active Northumberland had a nel deflned pension liability of £6.534 million. Estimation of the net liability to pay pensions depends on a nu mber of complex judgements ￿l81'ng to Ihe discount rate used, the rate at which salaries are projected to increase, changes in reb'rement ages, mortality rates and expected fetums on pension fund assets (as shown in the table below). A finn of consulting acluaries is engaged to provide the Charity wilh expert advice about the assumptions to be applied. The effects on the net penslon liabllity of Changes In Indlvidual assumptions can be measured. For instsnce. a 2.40k increase in the discount rate assumption would result in a decrease in Ihe pension liability of £0.803 million. However, the assumptions Interdct in complex ways. Duflng 2020-21, the Charity's actuary advlsed that the net penslon Ilabillty for funded LGPS benefits had increased by £7.060 mllllon due to thanges In acbjarlal assumptlon8. knpaotoThth• d•1k￿db•n•1*QbWkn kn¢r••Mkn Dq¢rn*•• In th••ch•me umptitin 181umpllon •Mumptitin •s$umplknn 1justrnenl to dlscJ)unlrats (w•Me¢rdgN¢W 1803,0001 12A) 103,IIOD 2A ljustrmnl (o salaryinuease ral8 {IrrA•w•ty thrus•ty0.1%1 luslmenlto pen*onincTra86rats 100,000 oj {100,000) {03) 702,000 1702000} Allustmenlto rnrtallty age ratiivJ wSurnptson5Li￿V¢1y.dVIqp￿•Y 1204.000 3A 11.171,(100} {3J) Page 37 Notes lo the Consolidated Financial Statements forthe year ended 31 March 2021 Flnanclal Perforniance of the Charltablocompany The consolldaled statementd finanaal acti￿tieS includesthe results of the Charitys wholly owned subsitsry whth Op￿aleS￿e caterng faolitss and MerCh￿d￿ng s*8 at the leiwre faalitses. The wmm8ry financial performanceoftheCharityalon8 i& 2021 2020 Incomg 11384,378 14,489,192 43 iftaKlfrom th'diaryCo￿anY 11284,378 14,469,235 Expend￿JIe0n￿arilabIe8c*'￿ties Defin8dF￿8l0n Ilabllity N•t In¢om• 111I54A701 115,1882411 11153,0001 1441.0001 2A23,0921 {1.160.0061 Donallons and Legacl•$ Funds Funds 2021 202 gnessRate Grants 419,947 419,947 1081,649 Furfoiuh Grant Fooball Foundab'c ational L8isur&Recov8ry Fund INLFR ools 4,081,649 225,000 225,1)(10 ,550 69,786 4893,432 98￿50 69,786 166J36 95,73 ort England 69,78 165524 4,n7,096 Page 38 Notes to the Consolidated Financial Statements forthe year ended 31 March 2021 other Trdding Activities Trndkng 2021 2020 kn(Jn 320979 193282 1,014261 1,918,919 1693282) 16932821 {1.370.0041 320179 ,915 ￿pendi￿re 320979 Other actlvitle5 prlmar*y relate to income from hire of faclibgs and income from the GP Referral Sch8me. The expend6ture Sho5￿ also includes the audt fee alIC£a￿ to oth tradlng activiks of £1,920. Trading acllvltss Income alg) Inchjdes £503.549 of grantlncx)me. The charltable co￿VanY has a wholly owned subsidlary, Active Northumberkmd Tradlng Limited, incorporated in England and Wales (Company number 09243253) and pays all Its profits to the charftsble Company under th8 gift aid scheme. Active Northumberfand Trading Limited operates Ihe bar. catering and all other commerdal trading operalions with the leisu￿ fadlltles managed by Actlve Northumberland, A summaryof the Trading results is thown below. The summaryfinancial perfomwnceof the subsidiaryalone i& 2020 Tumover 693382 1.370,047 {6932821 11.370,004) Cost of sales 8ndadffinistrdbveeypenses Profilljr the year Ar￿Unts gift aidédb) Charity 43 The asseb and tiabilibesofth8 gJbgdiaryweTe: Currenlassets 85A75 87.416 185.5741 187,415) Cvrrenlllabllithes Page 39 Notes to the Consolldated Financial Statements forthe yearended 31 March 2021 Analysis of Expenditwe on ch￿able Actlvllles UnrnslrKt•d D•¥lgnated R•¥trktod Funds Funds Funds nk charges fer8nce.course$. owlallty. and pron￿lIC nsu1121Xy 8pr8aati quipmenl olidaypay ired seNces 53,911 53,911 111,419 26074 6,981 33155 105.551 140 140 39,830 H598 44,S98 44,598 111388 253282 11,745 111A71 248.815 373,444 123,603) 34234 14A6n 12,585 surancaand sundry mium costs 18990 $2216 18,99Q 20,5 & Sof￿are $2,218 910A21 43,918 69,085 1,047,282 gal & pro18ssional rkebng ostsge, prinfing.slalJonèry. nd tel&￿10n0 &nts 902255 39￿4 129.187 n,689 62,756 876,389 5,784 79A73 62.756 99,899 epairsarwj nwintenance taff costs 876.389 1,120.448 7,557,946 609,000 335,755 8A02,701 9,442.618 52J30 334,861 ndrye¥pen88S blits'es 51,098 815,328 815J28 1.683,435 AT parti81exeryiOon 190,0391 1,338 188,7011 360,209 11,831209 15.166,581 473.907 10I62mD 619.000 Nots.. The figures in brad(ets tepresenta reduclion in the provision for holidaypay VAT rebates accrued at Ihe year4nd which are expected on ub'lities. Page 40 Notes to the Consolidated Financial Ststements forthe year ended 31 March 2021 Included in Ihe previous table are sjpport o)8ts of.. 2021 2020 Bonkthatges Conferenceeynses knwrnnceand sundryF)renNumfA)sts Postsgo, prfnting, ststso￿ry, andtslefv Stsff costs 42J40 78.065 16A15 47,066 974 974 35220 24.824 440y6 727,446 ndryexpenses VAT partialexempts'on 427300 647,748 I6￿86) 956,609 74,139 1,600262 Service Levol Agre8m8nts'. Shared Services Procur8mnl Team Communicab'ons Health and Safety Inf0m￿￿on Servlcos Human Resources and (￿nisatiOnal DevelopThnt Corporate Financial Services Energy Reactive Repairs and P18nned Maintenance Statutory Maintsnance. Tesling and Inspection Audit and Strateglc Rlsk Serrflce level agreement costs paid lo Norlhumberland County Council.. 2021 2020 Northuthdandcountycouncil 715,646 722.998 715NO .722,998 Page 41 Notes to the Consolidated Financlal Statements forthe year ended 31 March 2021 Other ExpendI￿re 2021 202 udilf8 23.333 21,79 rusleeliabilityinsuran 25,181 23,64 This relates to themain auditfee of £19.500andcosts in relation toother auditservices for£3.833. The fee in relallon to Mazar8 LLP audit of the 2020-21 TNstees' Annual Report Flnandal Statements Is £22.450 and was accrued in year, analysed between different elements; audlt fee £19,500, teacher5. penslon retum £950 and other services for £2,000. Costs In relation to other seDii¢es were charged in yearfor£1,050 and there is a furtherdifferonca of £167which islhe variance between the accNal raised at the end of 2019-20 and the acbjal charges received in 2020-21. Anatysls of Staff Costs, Trustse Romunwatlon and Exp•ns•s roup umborol Emp￿￿.. 2021 No. 202 y manage￿￿nIper9jnneI neratingljnds harilab1eactiv￿.es 12 684 787 The total employee benefits of the key management personnel of the Charity were £356,245 (2019-20: £348.763). Page 42 Notes to the Consolidated Financial Ststements forlhe yearended 31 March 2021 roup Remuneration ￿mpri￿d. )pr8nlbc*ship16¥y Holidaypay nionfXJ8ts 2021 2020 23M4 30,eJ)7 248115 123,6031 320263 505,774 7.730,499 8,512575 423.172 482094 Salanes&wages sécjjrtty Cjjsts TerrTdnaticffibenèfits 11116 10137 56054 33,435 B,769,156 9,598536 Travel andotherslaff costs enurt¢rolknpknys*thOteafinuaIwr￿II￿Ornnll￿thBn th,ootr. - 2021 2020 £60,000- £69.999 £120,IXM)-£129,999 £130,OC¥)-£139,999" Thisin¢bJdesknmNnation benefjts rrranal(￿ Beneffts 2021 2020 CornFens8lonl8xgrab'a R8dundanknry 4,592 55,930 7,524 11166 924 Tennination benefits are payabl8 when employment Is temiinal6d by thè Group b8for8 the nomwl retirement date. or whenev8ran employe6 accepts volu ntary redundancy In exchangeforthese benefits. The fyoup recognises termination benefitswhen it is demonstrably committed to elther: teminalng the employment of currenl employees according to a detslled formal plan wlthout PO&8lblllty of withdrawal; or, providing termination benefits as a resull of an offer made *) en(x)urage voluntsry redundancy. The Trusteeswere not paid and did not receive anyolher benefitsfrom employmwt wilh Ihe charitsble Company or its subsidiary during the year (2019-20: nil). No Trustees wara fftimbursedfor tra￿￿1 e>penses in 2020-21 (2019-20: £311). Page 43 Notss to the Consolidated Financialstatements forthe yearended 31 March 2021 Net kncomeExpendlturefix the y This is stated after charging: 2021 2020 Ikpreuation l￿dillee & Tru*e latm'lityinsurarte 44,598 25,181 23,640 10. Corporatlon Tax Thecharitable Company is exempt from tax on incorneandgainsfalling within $8ctic 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable C*ins Act 1992 of the extent that these are applied to its charitsbleobpcts. 11. Tanglble Flxed Assets Fixtur•,Ming & •qulprne at1 Ipril 2020 dibons 515251 31 Marc* 2021 515,351 prndaoon.. 1 ￿ri12020 8r98trth8 year 31 Marth2021 274,524 44,598 319,122 bookvalue". At 31 MaT¢h 2021 196,229 240127 12. Investments The charitablo Company has a wholly owned trading subsidiary Company, Activ8 Northumberland Trading Limited, incorporated in England and Wale& The activities and resultsof the trading Company a￿ wmmarised in note 5. Page 44 Notes to the Consolidated Financial Statements forthe yearended 31 March 2021 13. Stock Gmup 2021 Charly 2021 2020 2020 Loisures*xk 49,006 491#)6 59.037 37,556 59m7 Pll 37A56 21,76T 21,787 14. Debtors - Group 2021 Charfty 2021 2020 Trndedebtrf5 408J63 364201 407,191 362,637 2,078,841 Otherd8bknrs 2.078.841 Pffjpaymntsand accn*d Sn¢)) Pmmwnforbad debt 3,074.061 150.6281 W1,796 1,139.084 144258} 3J3716 3.on,724 149N371 JA31h71 1,129,664 144,131> 3,527P11 15. Creditors:knxnts duowlthln one year 2Q21 2020 2021 2029 Trade Lyeditrxs 51J95 40,589 51,684 71,958 121A64 1299,934 319047 48J13 66118 40,787 36,790 509,598 1.342.185 97,361 46,775 25,199 2￿￿96 knunts owedto subsidiary T•xalon & socaals8oJrity rnialidel8rr8d h)cor( Holidaypayaccnjal Otherloans 121A64 509,598 1J51,044 1,421,974 354,001 105,188 48213 46,775 66118 25,199 11•3135 1149J21 Other(%edib) Deferred income relates to facilities hi￿. fithess dasses and course bookings paid for in advance of partj'cipation. A provision has been r8cognised in relakn'on to a legal matter and the liability is includedwithin the accrualldeferred inco￿￿ balance. Page 45 Notes to the Consolidated Financial Ststements forthe yearended 31 March 2021 16. ShortTerm Provlslon Job Evaluation Grnup 2021 Chafty 2021 2020 20 penirffjbalance 'lised in ￿ar Ihwdedinyear 862.860 1862,860) 862,880 1862,860) The Job Evaluab'on provision has been fullyuts'lised in 2019-20. 17. Credltors: Amounts dueln morethan ornye¥ Ovoup 2021 Ch•rty 2021 2020 2020 ¢h8rloans 189,620 237.933 189,620 237,933 aWsofloan& *>lwho1lyrepaya￿eWthIn Ilvèjea vlh0llyrepayabk￿￿Infj¥eye8 34.942 34,942 249,760 237933 249,766 237,933 237933 284.708 237,933 284.70 bK4Lkled in oJThentliabilittes 148J13} 146.7751 {48,3131 146,779 b@￿e&n one to t*oyears b8tse&n blree to years in nKJrn than ffive years 49,903 139,717 48,313 154,678 34,942 49,903 139,717 48311 154,671 34y2 119 237933 189,620 237933 Page 46 Notes to the Consolidated Financlal Statements forthe year ended 31 March 2021 18. Unrestrictod Funds 1 Aprf12020 In￿rnIng Resou￿5 Transfers Resources Expended Gainsl 31 March 2021 Losses Umstric*edfiJnd Generdlfund 1 J27y8 11,577.680 111.577,680) 1J27,548 D8Stgnat8d fiJnd Ponson reserve (4lJ72,000} (609,((Q) 741A521 11577fi￿ (12.186 11,853,OCQI 16,534MOO} (1053mOI {$3OIM521 Du¢rWnoffvTrJ Ggneralfvnd D•KrWtlon,n•tsJ•,•nd puwluoflund T￿.free r888rves' aftDra1lowingkJr8lld88ignatsd￿nd$. nson ￿SeTh? - relats8 tr) the FRS102deSn8d bgneffil pension l￿bility, Dosignatsd fvnds 19. Restrlcted Funds l AP￿ urca8 Tr4n8kn 2020 Rewjrces Eypended 31 March 2021 Sthool Games 7A82 410 328,449 {313,7221 22JOg 410 Young al Heart ¢tiMty FuThJ 22A98 Pnmlhcé F(￿lball Sp)diNJClub- Renewals 30150 Sporbng Club Bedlingt￿- &'nking Fund 62AOO Sporting Club Bedlmgtffi-Renewals 30mO 153J40 399W 1361,oni ~. 71531 147,3501 46,779 30,850 62.500 39,000 PJ192W Page 47 Notes lo the Consolidated Flnanclal Statements forthe year ended 31 March 2021 Transfers There has been no transfers of funds. ool Games Project funded by SFrf)rt England to organise 8(*00l gBm85. PfonK•bng o)mpetslive sporting aclvities Ix 5￿Unger peoplè (Soulh East and Nobth Nothun*erfandl. Funds kn support disabled people b access fithe *vitiesatPnJdhoèW8tèrworfd. ung atHgart A projedt* engage wwon are exp&riendry cr are al nsk ol developing posb)alal dèpresslon 1> partiopate in 30rThnules o18c*wtyeach week. A renewals fund br fvknre rein*sbnenl in ladlw evekpmert A ￿nd ly rein*sknwlinto thg 3G ptth. A fenwals fund Ix ffijbjre rein￿S￿￿nI kn fadl dhce Foolball SpoibryJClub- Renewals rting Club 8edling*￿- &'nknNJ Fund r¥ng Club Bedlin . Rgnewals Page 48 Notes to the Consolidated Financial Statements forthe year ended 31 March 2021 20. Anatysis of Assets and Liabilities between Funds Gen¢fal Deslgnat•d R•strkt•d 2020 Flxedassets 196229 196229 240,827 N•lwrrenlassets 1 320,939 192 1,513,787 1,478,594 Creditorsduè rt￿rethan one year (189,6201 1189.6201 P37P331 (6.534.000> 14,072,000) 191W IWI604) 125905121 Pensic￿thjnd liabillty 16.534.000) 21. Pension Arrangements Defined Contribution Schem8 Th8 Charltyoperates a defined contn'bution scheme. which is offered to all n6W employeas. Th8 assets of th8 schema aro held sePara￿lY from those of the Charity in an independently administered fund. An amount of £68,586 (2019-20: £83215) was paid into the schemeduringthe financialyear. In 2020-21 Active Northumberfand also paid £46,336 (2019-20: £48,537) to th8 Teachers. Pensions Agency in respect of teachers, retirement bénefits represen15ng 23.68 /0 of teachers, penslonable pay for the period 1 April 2020 to 31 March 2021. The pension rate InC￿aSed from 16.48% to 23.68% In September 2019. Defined B￿efitsCherne On 1 Odober 2014 when the management of the leisure facilities within Northumberfand moved into Aclive Northumberfand the Local Govemment Penlon Scheme {LGPS) r61ating to these staff transferred Into Ihe charltstle Company. The LGPS provides defined benefits. based on1he membe¢s final pensK>nablesalary. Due to changes in pension legislaticx). and the long-term uncertainty about pensm scheme costs, Aclive Northumberland has closed the local govemment pensh)n schemeto new members. Following the mergerof Northumberfand County Councll Penslcm Fund into Tyn8 and Wear Pension Fund fftVPF)on 1 April 2020.Active Northumberlandbecamea LGPS admission body in TWPF. Northumberland Countycounal hasgiven a guarantee to IWPF in respect of Actlve Norfh umberland's L(¥S liabilities. The guarantee can be called on should Aclive NorthumberlarKI defaulton Its obllgatlons to IWPF. Page 49 Notes to the Consolidated Financial Statements forthe year ended 31 March 2021 In accordance with Secllon 28 of FRS102 dlsclosureofcertain inf0m￿￿n LX)nLwning assets, liabilities, income,and expendilure relatingto penslLM schemes Is requlred. The latest valuaticn was Undertak￿ on 31 Marth 2019. Th8 duration of liabil￿eS is 242 years and revalualicn is undertaken every 3 years. The durab'on of liabilrties is the average period, expressed in Ihe numberof years, b81w88n the calcul*icn daÈ and thedate on whiththe schm benefitfalls due. The principalassumpti￿$ us&1 by Ihe independent qualiffied acluaries in updating the lat8St ValuatiC￿ of the Fund for the purposesof FRS 102were'. scounlfate for liats'lid8S 11P1 Inflatson 2.1% 2.3% l inflation 2.7% 1.9% 1.9% 1.9% 3.4% nsion increases 2.7% Pensiona¢￿)vn￿rPy41Uafion i* 8Blaryincwses rtality rakn Mal8s- Pensiown*mberaged 65 al acxounti da13 Males- kl'v• Tr*n*Jer4ed 4581 afX¥)ufibng dat8 Femalès. Pensicmefnwrrthraged 65 al accouningda18 Fernales. n￿thraged 45al acc£MJnlng dat£ 2.7% 42% 21.9 222 23.6 232 24 26.9 26J) 31 *rth2021 31 %)20 Equities pety ,13ovemmenlbonds ' Ctyrrt)rate bonds , Cash 55 65 7J 22 411 16A 71 19A 4. 10.6 5J 100 100 Page 50 Notes to the Consolidated Financial Statements forthe year ended 31 March 2021 R•wicihtknnoffundod slthlo baknc•sh••t 31 March 2020 £m Farvalueol assèts 26.909 21250 Presenlvalue of ￿n{Ied￿e￿ntdber￿fit0￿lgation P3.443} 125.322) 17 thin¢lala¢ltr*Tlde• 31 Ma￿h 2021 31 March 2020 £m CurrentseTrice costs 0.748 0.799 $1 se￿1￿ fmts Fln8neing C¥Jsts- netlnl*rnsltt*st PenIone>pg￿fo￿￿18¢dlnthDynoendO￿dl￿T8 0.091 0fj74 OfjTa 31 Mw¢h2021 31 V••th 2020 £m tgain￿l￿>s5es)0nSjngduringthO period Llabilitygaln￿{los5P5)ari5lngd￿ri￿jth$ ￿n0d 5207 16.668) 6227 17.060) VJ531 10,H1) Ch•ngo8toth• pr•s•nIva￿0DI d•fth•d b•MfftoWJaloM 31 March 2021 £m 31 March 2020 £m Opening d8ffinedb8nefilobligation CuThenlseMrA co* 25.322 30.383 0.748 0.799 htsrest exp8ns8on definedbèmffitobligation Conlributionsbypartifipants L￿ana1 bs8eson118bilities 0.579 0.755 0.121 0.136 16227) 10.524) Nelbenefib paid out Past seNce cost (0.387} Netincreasel{decreaselin ItalylilesfromdisFwalthiUisti￿S CbgngdefinedtenefftoNigation 33A43 25222 Page 51 Notes to the Consolidated Flnanclal Statements forthe yearended 31 March 2021 th2621 Opn1￿ fairvalu8ofassets 18r8St 1￿C￿M& onassets 21250 27.203 0fj81 asurernntga1n￿{IO$SeS1￿aS$ets Conlribulionsby omdoyer eonlnbutionsbypartiapan15 l trenefits paidoul Npl incr8ase4deuea8e}in assets from disposal4agJui%tiors 5207 16.668) 0.422 0230 0.121 0.136 10.3871 (0.524) 21250 31 Maffh2021 31 k*rch 2020 knteresl income ona550ts OA88 0.681 Gainlllosslon assets ' kwal rebjm ￿ a&8ets S207 16.688) 15.98n 5.695 22. Pensk•n - Mov•monts In R•s•rv 31 Much2Q2T ?1 Marth 2d20' rrentS8M￿ ￿51 (748,000) 1799,000) stse￿￿ Tr)st I P&ldecreaseln assets from disposavacquisl'ons 'EmployerLxntributons& netpen3ion 230,000 422,000 1518,DOO) 191,000} 1609,rth} 5207,1>00 1377,000} 174,0001 1451,0001 16,668,000) l#eresl on liabil￿e$ P*￿easure￿￿1gai￿oSSeS)On8s5ots | l*tdecreasein liabilioesfrorndwosavacquiwtior ' pthrialgain￿lkJSSPs)0n babir￿eS 17,06D,0001 11153,11001 14P710001 16.534.000) 6,227,L 1441,0001 13,180.DrKI) 14,072,OM) Opening posilon ' Cb%'ngposthon Page 52 Notes to the Consolidated Financlal Statements forthe yearended 31 March 2021 23. Cash flow from Operating Activilies Group 31 ltsrch 2021 31 2020 31 March2021 31 March 2020,,, N81 rMv8m8nlin funds brthè beforetranskrs andexdudir¥J Interest I￿0,092) (719m61 (510,0921 (719,0061 justr￿nts tr. Doprecialionon lan9iUeass8ts nsioncharyes lknaseydeueasein debè) kNxeaselldm8selin (sediky5 exduding loan knuea6olldena59lin (k￿￿8$0)￿•￿tasèIn 8tod( K*easel{decrease}in baddebl 44,S98 M598 44,S98 609,000 90227 44,598 451,000 754,357 451,(K(i 743Jn 99,702 (157,1241 341.241 1120,1151 349,667 (8620601 16.108 1862,8601 12,6401 15,318 30h34 10,031 6J70 115,789) SJ06 15,445 43,135 'R•conclthffoin•td•6t.Qrnup 1 Apr112020 31 Mirch2021 15851 {3,705) (4290) 11,538) 48,313 19,415 7,305 Cashequiv8th1 11.010 Lo4n5falllThJduevAthin￿￿ year Loansfalliryjduealkr thancffle year 146,7751 1237,9331 148,3131 1189,6201 1211,2131 R•e•Kllthnofn•ld•bt.Chwly 1 Aprf2020 CMh4kn 31 M•rch2021 Cash {585) 13,0551 13,640) 11,5381 48313 19.415 5,455 C8$heq￿1yalenI 8510 Loansfalliro du8wilhinoM J Loansfalling duealkr rw Ihanone year {46,77S) {237.933) 1256,198) 148,313) 1189,620) 1213,063} Page 53 43,135 Notes to the Consolidated Financial Statements for the yearended 31 March 2021 24. Analysls of Net Cash Re8our¢•8 l Aprf2020" . )1 Mareh202 tharges tcash Group tcash Chari 31.010 I4.￿) 3,640. 26,72 24 25. Cash and Cash EquNalents at tho End of the Reporting Perlod Group Ch•rrty 31 Mar¢h 2021 31 Marth 2020 31 March 2021 31110rth 202 Decr8as8in cashduring the year cwnin9 cash Qo8ingc8sh {42901 31￿10 115.3601 46.370 (3,6401 28,510 114,82 43,33 26.720 31.010 24.870 28.51 26. Contlngent Asset Followlng the mergerof Northumberland Countycouncil Pensi￿ Fund intoTyne Wear Penslon Fund(PIrfPF)on 1 Aprll 2020.Aclive Northumberland becamea LGPS admlsslon body In TWPF. Norlhurnberland Countycounal has given a guaranteeto TWPF in respect of Aclive Norlhumberland's LGPS liabilities. The guarantee can be called on shouldActive Norlhumberfand defaullon itsobligationstoTWPF. 27. Controlling Party The Charityiscontrolledby the Board ￿ TNsb8& 28. Funds held as Custodian During the year fundswere held on behalfof Bl>th ValleyTrust for Youth, an amount of £25.199 (2019-20: £25.199) is shown asa creditor at the year end. Page 54 Notes to the Consolidated Financial Statements forthe yearended 31 March 2021 29. Related Party Transactlons All transactions bet4Yeen the Charity and its subsidiary, Active Northumberfand Trading Limited are eliminated on consolidats'on. The 2020-21 agreed managemenl fee from North umberfand County Council was £2.46 million (2019-20.. £2.66 million). In addition, further funding of £2.26 milliorl was agreed (201￿20. £0.23 mill1c￿). £0.39 million was received duringtheyear and a debtor of £1.87 million was raised at yearend. There were also other goods and seNlces provided to Northumberland County Council of £0.36 million (2019-20: £0.71 million) and other goods and services recelved from Nothumberland County Council of £1.29 million (2019-20: £1.51 mllllon ). Aclive Northumberfand uses North urnberland County Councll's Oracle CkKJd Application5forall expendituretransactions and reporting through thegeneral ledger. At th8 end of 2020-21 Acb've Norlhumberland owed Nothumberland County Counal £0.04 million {2019-20:£2.08 million was owed to Active Northumberland). In 2020-21 there have been goods or service received from Crosland Consukng Limlted- nll{2019-20: £311), Northumbrian WaterLTD - nil (2019-20: £218) andNWG Business- £62,55712019:20 £239.759), and goods or serrfices provlded to Ashing Academy - nil (2019-20: £480), Norlhumbria Healthcare NHS Foundation TfUSt- £705 (2019-20: £1.131). Pele Twst- £65 (2019-20: £61,994>, and Tri Northumberfand-nll (2019-20: £325). 30. Conllng•nt Liabilllie8 There were no contingentliabilities identified as at 31 March 2021. (31 March 2020.. 31. Post Balance Sheet Events There are no post balance sheetevents to reporL Page 55 Notes to the Consolldated Flnanclal Statements for the yearended 31 March 2021 32. Flnanclal knstrumonts Group 2021 Charity 2021 2020 2020 Fhancialassetsn*asurndat oitsedcost ,Tradedeblnrs 108J63 364201 407,191 362,637 , knounts owed b Group undertaking5 , Ckn&rd&btors | incoff Fkn8ncialliabilkngswsuredal I mith'sedcost 2.078.841 2,078.841 3I13,809 1,056.019 3M14,146 1,065,438 THlecfeditors 51J95 40,589 SI￿84 40,78T Idmunts owed b rolatsdpaty knunts owedto Groupundertakings OtherCred￿rS 71J58 66,818 66118 25.199 25,199 1,502,604 1.194,503 48.313 46.775 1A16,740 1,106,890 48313 46.7TS Lianfrom relafed party Page 56