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2023-03-31-accounts

Registered number: 09021431 Charity number: 1158606

THE CHELTENHAM TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

THE CHELTENHAM TRUST

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1 - 2
Chairman's Statement 3 - 4
Trustees' Report 5 - 14
Independent Auditors' Report on the Financial Statements 15 - 18
Consolidated Statement of Financial Activities 19
Consolidated Balance Sheet 20 - 21
Charity Balance Sheet 22 - 23
Consolidated Statement of Cash Flows 24
Notes to the Financial Statements 25 - 49

THE CHELTENHAM TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023

Trustees

Louis Eperjesi, Chair Duncan Smith (resigned 30 September 2022) Benjamin Averis Cllr Barbara Clark Cllr Steve Harvey (appointed 19 July 2022) Julie Jordan (appointed 1 October 2022) Cllr Alisha Lewis (resigned 18 July 2022) - Jacqueline Meekings Davis (resigned 30 September 2022) Sian Morgan Elizabeth Narey Sunita Nelson - Gary Hasley Nejrup (appointed 1 October 2022) Jeremy Owen (resigned 30 September 2022) Kate Peden Clive Rawlings Gemma Taylor Daniel Wilson (appointed 25 May 2022)

Company registered number

09021431

Charity registered number

1158606

Registered office

Cheltenham Town Hall Imperial Square Cheltenham Gloucestershire GL50 1QA

Chief executive officer & Senior management team

Laurie Bell, Chief Executive Officer Tracey Larsson, Head of Finance (Resigned 31 October 2023) Sara Oliver, Head of Communications (Resigned 25 July 2023) Lisa Edgar, Head of Culture

Independent auditors

Randall & Payne LLP Chartered Accountants & Statutory Auditors Shurdington Road Shurdington Cheltenham Gloucestershire GL51 4GA

Page 1

THE CHELTENHAM TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Bankers

Lloyds Bank PLC 130 High street Cheltenham Gloucestershire GL50 1EW

Solicitors

Willans LLP 28 Imperial Square Cheltenham Gloucestershire GL50 1RH

Financial and Human Resources Advisors

Publica Group Limited Trinity Road Cirencester Gloucestershire GL7 1PX

Page 2

THE CHELTENHAM TRUST

CHAIRMAN'S REPORT FOR THE YEAR ENDED 31 MARCH 2023

The chairman presents his report for the year.

I am pleased to present this annual report and account for The Cheltenham Trust for the year ending 31st March 2023.

Following the challenges of surviving and recovering from the Covid19 pandemic since 2019, this year’s report reflects another difficult and challenging trading period brought about by the unexpected severe economic downturn and cost of living crisis.

The financial downturn drove up the cost of supplies, materials and operational costs, and negatively impacted on customer confidence and spending, placing cash flow and income under further pressure. Whilst the trust continued to grow and generate income, the charity recognised that immediate action was required to manage and reduce costs, and to take action to mitigate a projected end of year deficit.

Actions taken to reduce the projected deficit included reviewing procurement and resources, delivering additional free and inclusive events and activities to increase income and continuing to seek opportunities to secure local and national funding and grants. A key strategy has been the donations scheme whereby customers and visitors are encouraged to make a donation and support the trust as a charity with the message that together we can do so much more. This income has contributed to the delivery of the inclusive free to access community cultural programme.

The year-end deficit outturn, while significantly reduced following management action, impacted the trust’s financial reserves, largely funds awarded by the Arts Council to support organisations to recover and be financially resilient following the impact of the pandemic.

As the guardian of much of the town’s heritage The Cheltenham Trust has a major role in sustaining these important, historic venues. The business model of this resilient and ambitious, forward looking organisation blends culture, community and commercial to strive for financial sustainability and continued investment in the heritage buildings, and its programme of inclusive and accessible free events and activities for visitors and the local community.

The Cheltenham Trust is an independent charity and the lead provider of culture and heritage, entertainment, sport and leisure in Cheltenham. Through the five iconic and contemporary venues and two orangery cafes that it manages; Pittville Pump Room and the Heritage Cafe, The Wilson Art Gallery and Museum and The Wilson Kitchen café; Cheltenham Town Hall and the Garden Bar, Leisure at Cheltenham and the Prince of Wales Stadium, the trust contributes actively to the local and visitor economy, and to the provision of community social activities that promote and improve health and wellbeing.

Balancing culture, community and commercial in a severe, and ongoing, economic downturn is a significant challenge. Hard times demand hard decisions, and the trust has been swift to take decisions focused on reducing costs and continuing to grow income and footfall. The five-year business plan was reviewed to respond to the new financial challenges, and changes made to focus on core business; reduce costs; improve efficiencies and maximise opportunities to strengthen financial resilience and future sustainability.

The trust has continued to deliver quality venues, services and facilities; to identify and target new audiences and income streams; reviewed unaffordable legacy hire arrangements for its venues; and built on the opportunities to expand engagement and new partnerships afforded by its high profile and reputation.

Page 3

THE CHELTENHAM TRUST

CHAIRMAN'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The trust’s inclusive, free to access cultural programme has played an important role during the cost-of-living crisis, enabling the community to benefit from free events and activities at a time when household budgets have been stretched. These events have included the Christmas lights switch on at the pump room; live music and dance; creative artisan markets; children’s fun days and they attracted thousands of visitors and established further the venues and outdoor park and garden spaces as major visitor attractions and community destinations in the town.

This financial year has been a year of further challenge and the trust has, again, had to act swiftly to adapt, to review its operation and to identify and maximise opportunities for growth. It has continued to pursue an agile and entrepreneurial approach which has been effective in helping to mitigate the negative impact of the economic downturn. The charity will continue to drive efficiencies, be more cost effective and financially robust and recognise opportunities to generate additional income through its careful blend of culture, community and commercial.

I would like to extend my thanks to all the staff, the trustees, our stakeholders and partners, and our customers for their ongoing support.

................................................ Louis Eperjesi Chair of Trustees

Date:

Page 4

THE CHELTENHAM TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Trustees are pleased to present their annual directors’ report together with the consolidated financial statements of the charity and its subsidiary for the year ending 31 March 2023 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The Cheltenham Trust, a company limited by guarantee (No. 09021431), was incorporated on 1 May 2014 and obtained charitable status on 18 September 2014. It is governed by its Memorandum and Articles of Association.

The Cheltenham Trust commenced operations on 1 October 2014 and currently manages on behalf of Cheltenham Borough Council, The Wilson Art Gallery and Museum, Leisure at Cheltenham and the Prince of Wales stadium, Cheltenham Town Hall and Pittville Pump Room.

Cheltenham Leisure and Culture Ltd is a trading subsidiary of The Cheltenham Trust.

The Trust’s charitable objectives are set out below. Any financial surplus achieved by the Trust is re invested in the charitable aims and objectives.

a. Policies and objectives

Objectives and vision

The Trust has been established for the following charitable purposes:

Vision

As an independent charitable trust and the lead provider of culture and leisure in Cheltenham our vision to blend culture, community and commercial activities and services to actively contribute to the local and visitor economy and to improve the health and wellbeing of the local community.

As a registered not for profit charity, the Trust manages Cheltenham’s most iconic and contemporary venues – The newly refurbished Wilson Art Gallery and Museum; the Grade I listed Pittville Pump Room and Heritage Cafe; the Grade II listed Cheltenham Town Hall, Garden Bar and Skillicorne Garden, and the popular Leisure at Cheltenham and Prince of Wales stadium.

The Trust supports the local and visitor economy, community, cultural and social offer providing arts, culture and heritage, entertainment, sport and leisure. Through its outreach work and community events the trust enables access and inclusivity to a diverse range of cultural and leisure services, events and activities.

Page 5

THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The main activities at each of the Trust’s five sites are:

The Wilson Art Gallery & Museum

The Wilson hosts a rich programme of exhibitions and events that are supported by its new and vibrant arts café. The Wilson is available to hire as an alternative, contemporary venue for events and meetings with a difference. Its outdoor roof terrace is a unique setting for hosting events. The venue regularly hosts launch parties, dinners, as well as a diverse range of community events, activities, workshops and talks.

The Wilson re-opened to the public in July 2022 following major refurbishment to create a new community arts and exhibition gallery, artist studios hosting nine artists in residence and a popular and immersive arts café.

Pittville Pump Room

The magnificent Grade I Pittville Pump Room is the jewel of Cheltenham’s regency architecture. Its location in the beautiful Pittville Park has made this award winning, landmark building one of Gloucestershire’s most impressive venues for weddings, dinners, exhibitions, dances, corporate events and conferencing and community events and activities. It also hosts the extremely popular outdoor Heritage Café.

Cheltenham Town Hall

The elegant Edwardian Grade II listed Town Hall is a popular venue for entertainment attracting local residents and visitors. It has a year-round programme of live entertainment, attracting more than 90,000 visitors each year to enjoy comedy and celebrity speakers, music, concerts, dance and theatre. It is also available for hire for a wide range of events and activities, festivals, meetings and weddings. The Garden Bar Orangery and Skillicorne Garden, adjacent to the Town Hall, offer a cafe bar and a secret walled garden for an alternative al fresco event.

Leisure at Cheltenham and the Prince of Wales stadium

Leisure at Cheltenham attracts more than 2,5000 visitors each day and provides state of the art leisure facilities with four pools: a fitness suite and more than 75 fitness classes each week. The Prince of Wales stadium regularly hosts sports and track events including a local running club, rugby club and an annual family sports day. The recently re-furbished sports bar is available to hire for events, parties and corporate meetings.

Management Agreement

The Trust operates independently, occupying buildings owned by Cheltenham Borough Council. A Management Agreement has been established between Cheltenham Borough Council and The Cheltenham Trust to deliver services for the community aligned to the agreed fee.

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

b. Activities during the year

Pittville Pump Room

Cheltenham Town Hall

Leisure at Cheltenham and the Prince of Wales stadium

The Wilson Art Gallery and Museum

Partnership working

c. Activities for achieving objectives

The Trust continued to strengthen, establish and nurture new partnerships to increase its community profile. The goal is for The Cheltenham Trust, and its venues, to be the go to destination of choice for arts, culture, heritage, leisure and sport attracting increased footfall from residents and visitors.

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

d. Main activities undertaken to further the charity's purposes for the public benefit

The Trust supports the local community by providing free access to venues and to its community events creating space to come together as a community to participate, learn, enjoy and socialise creating a positive impact on the overall health and wellbeing of the community.

The Trust recognises that the blend of community, commercial and cultural activity is critical in supporting future sustainability of the venues and services provided. The venues all have hireable spaces to host a diverse range of events and activities. These spaces and opportunities are promoted and marketed across the partnership base and business and community networks that the Trust supports.

Page 8

THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance

a. Key financial performance indicators

During 2022/23 the Trust had total incoming resources of £8,128k (21/22 £8,143k) of which £337k (21/22 £432k) was restricted grant funds.

Net operating deficit for the year was £329k (21/22 surplus £812k) on unrestricted funds (excluding FRS102 pension costs) . As a not-for profit-charity the Trust reinvests all surpluses within the business.

Cheltenham Leisure and Culture Ltd

The Trust’s wholly owned trading subsidiary, Cheltenham Leisure and Culture Ltd, generated turnover of £2,579k (21/22 £2,125k) and made a profit of £593k (21/22 £193k) for the year. These profits are being gift-aided to the charity.

The principal activities of the trading company during 2022/23 were predominantly café and bar operations; venue hires for events and weddings and sales of retail items.

b. Investment policy and performance

The Trustees have the power to invest the monies of the organisation in such investments as they see fit. In order to support the growth and investment strategy of the Trust and maintain a positive cash flow at all times, surpluses are invested in interest bearing deposit accounts where appropriate.

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance (continued)

Financial review

a. Going concern and events since the Balance Sheet date

The Trust continued to consolidate, repurpose, learn and adapt in the changing times and markets and has forecast its budget plan for 2023/24 and out for a further 3 years, and will keep monitoring and updating this forecast.

This forecast has been developed to ensure financial resilience and a robust organisation that can achieve its vision and ambitious programme.

Having considered all these factors, the Trustees believe there are no material uncertainties about the Trust’s ability to continue as a going concern and therefore the financial statements have been prepared on this basis.

b. Reserves policy

The Trustees’ focus on building sufficient reserves to ensure that the Trust is able to deliver its charitable objectives and is resilient and sustainable in the long term. The policy is to utilise any surpluses to build income generating capacity.

The Trust holds unrestricted reserves, excluding the pension surplus of £991k as at 31 March 2023.

The use of reserves is monitored by the Trust’s Finance Committee.

The pension surplus of £1,264k is explained in note 24, along with Cheltenham Borough Council’s role as guarantor for any LGPS liability in the name of the Trust.

c. Principal funding

Cheltenham Borough Council is our key partner and principal funder of the Trust. During the reporting period, through a Management Fee representing 7.5% of total income.

Structure, governance and management

a. Constitution

The company and the Group is registered as a charitable company limited by guarantee and was set up by a Trust deed on 18 May 2014.

The company and the Group is constituted under a Trust deed dated 18 May 2014 and is a registered charity number 1158606.

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

The Board shall be composed of at least seven and not more than fifteen Trustees, including two Council appointed Trustees nominated by Cheltenham Borough Council. The Trustees are appointed on a three year term, with an option to extend for a further three years. The Board meets on a minimum of five occasions during the year.

The process to select new Trustees is based on the skills and competencies required by the Board at the time the vacancy arises.

c. Policies adopted for the induction and training of Trustees

On joining the organisation, Trustees are given an induction and introduced to the organisation’s culture.

Trustees have significant experience from various professions and use their skills to inform their responsibilities to ensure the good governance of the charity. The Board membership includes a balance of backgrounds and capabilities relevant to the overall strategic requirements of the Trust, and there is a recognised commitment by the Board to maintain this balance. The Board of Trustees participate in board development opportunities, and the overall board is subject to an annual skills audit that is aligned to the strategic direction of the Trust.

d. Directors indemnities

The Trust holds indemnity insurance with Zurich insurance for the directors with liability cover of £1 million (2022: £1 million).

e. Organisation

The business of the charitable company is delegated to and managed on a day to day basis by the Chief Executive, who is supported by an Executive Management Team of senior managers.

The Board of Trustees has established a Finance Committee, a Governance Committee, Commercial Board and Culture and Communities Committee so that specific issues delegated can be studied in detail and recommendations made back to the Board.

The Chief Executive and the Executive Team advise the Board on strategy development and support for the Board’s governance activities and have responsibility for operating the services of the charity on a day to day basis. The Board undertakes its role using the Code of Conduct for Good Governance and agrees the overall strategic direction of the Trust.

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management (continued)

f. Related party relationships

None of our Trustees receive remuneration from their work with the charity. Any connection between a Trustee or senior manager of the charity with a production company, contracted actor, performer or exhibitor must be disclosed to the full board of Trustees in the same way as any other contractual relationship with a related party.

In the current year no such related party transactions were reported.

Two Trustees are nominated representatives of Cheltenham Borough Council. Transactions between the Trust and CBC, along with other related party disclosures are recorded in note 27.

The charity’s wholly owned subsidiary, Cheltenham Leisure and Culture Ltd was established to operate commercial activities including retail activities, cafes and catering, venue hires and wedding packages.

g. Pay policy for senior staff

The senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Trust on a day-to-day basis.

The pay of the Chief Executive and key management personnel is benchmarked against pay levels in similar professions when recruiting to these roles.

h. Trust staff

During 2022/23 the Trust employed an average of 204 staff.

The Trustees and Executive Management Team support the involvement and engagement of staff in the day to day running, policy making and general management of the charity. Members of staff are kept informed on matters affecting them as employees and on various factors affecting the performance of the Trust.

The policy of the Trust is to offer the same opportunities to a diverse range of people in respect of recruitment and career progression.

i. Risk management

The Trustees have adopted a risk management policy from which they have identified potential risks and the likelihood of their occurrence. In addition, they have identified measures to be put in place to mitigate the risks and further action that might be necessary to limit that risk.

The Board receives quarterly risk information at board meetings and sufficient commitments are made to cover known liabilities. The Board and its committees receive regular financial information and manage financial risk accordingly.

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Plans for future periods

Future developments

The priority for the Trust is to continue to ensure its financial resilience and that as a robust organisation it can achieve its vision and ambitious programme. It will build and consolidate on its core business continuing to fully utilise and maximise the value of its venues for the community.

The Trust will continue to seek opportunities to access local and national grant schemes to secure funds to improve and increase its reach in the community through its new trust-wide membership scheme and through donating in venues or online, or paying a suggested donation for free activities, events and workshops. All donations help the Trust to continue its year-round extensive, inclusive cultural programme for all the community to enjoy.

Cheltenham Borough Council (CBC) as lead partner and sponsor supports the Trust’s plans to achieve growth and to meet the vision and goals. In partnership improvement in all the venues will be scheduled to increase the number of visitors and their experience, to attract new audiences and to access to services and facilities.

We will continue to grow and further strengthen our position and reputation as Cheltenham’s leading cultural and leisure provider and a major contributor in boosting the local and visitor economy and helping to improve the health and wellbeing of the local community.

Information on fundraising practices

Fundraising activities are carried out directly by the Trust, by the Trust’s employees.

Fundraising activities involve identifying external grants and funding opportunities available to support our charitable, cultural and community activities, and inviting donations by those using and enjoying our facilities within the local community, in order that we can continue to invest in and develop in our facilities and programmes.

Access to our services

The Trust remains committed to equal access to our services for everyone. The Trust strives to be an open employer; welcoming staff and volunteers from all backgrounds. The Trust aims to reflect the diversity of the population in both our user group and our staffing and Trustee mix.

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THE CHELTENHAM TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity 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).

Company law requires the Trustees to prepare financial statements for each financial . 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 Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity 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 Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Auditors

A resolution to appoint Randall & Payne LLP as auditor of the company was approved at a meeting of Trustees on 21st June 2019 and is renewed annually.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ Louis Eperjesi Chair of Trustees Date:

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THE CHELTENHAM TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CHELTENHAM TRUST

Opinion

We have audited the financial statements of The Cheltenham Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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.

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THE CHELTENHAM TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CHELTENHAM TRUST (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company'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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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THE CHELTENHAM TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CHELTENHAM TRUST (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our audit planning process gave consideration to the risk of material misstatement in the financial statements, using the calculated materiality level which itself factored in the nature of the Charity’s operations and the interpreted levels of inherent and control risk.

In assessing the risk of fraud we reviewed management’s own assessment of potential for fraud within the entity and reviewed judgements made by management to identify possible bias, in addition to any opportunity and incentive for fraud that are in inherent in the nature of the Charity’s operations. Our detailed testing included review of accounting estimates and judgements and validation of prime ledger entries.

We confirmed our knowledge of the legal and regulatory environment of the entity through discussions with management. We analysed all information available to us in respect of relevant laws and regulations, including the Companies Act 2006, Charities Act 2011, relevant UK tax legislation and we enquired with management as to any possible breached in the aforementioned.

We agreed the accuracy of the financial statements to the supporting management information provided by the client and tested individually on a sample basis the income and expenditure in the financial statements to consider the business rationale behind the transactions and the accuracy of the financial records.

Our audit testing did not identify and issues in respect of the matters listed above, including fraud.

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

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

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THE CHELTENHAM TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CHELTENHAM TRUST (CONTINUED)

Ryan Moore CA (Senior statutory auditor) For and on behalf of Randall & Payne LLP Chartered Accountants & Statutory Auditors Shurdington Road Cheltenham Gloucestershire GL51 4GA

Date:

Randall & Payne LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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THE CHELTENHAM TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Total income
Expenditure on:
Raising funds
Charitable activities
6
Total expenditure
Net movement in funds before other
recognised gains/(losses)
Actuarial gains on defined benefit
pension schemes
24
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2023
£
-
336,538
-
336,538
-
502,239
502,239
(165,701)
-
(165,701)
302,832
(165,701)
137,131		 Unrestricted
funds
2023
£
-
5,212,581
2,579,293
7,791,874
1,986,418
6,134,485
8,120,903
(329,029)
1,864,000
1,534,971
(681,319)
1,534,971
853,652		 Total
funds
2023
£
-
5,549,119
2,579,293
8,128,412
1,986,418
6,636,724
8,623,142
(494,730)
1,864,000
1,369,270
(378,488)
1,369,270
990,783		 Total
funds
2022
£
9,484
6,009,013
2,124,902
8,143,399
1,932,306
5,384,269
7,316,575
826,824
1,165,000
1,991,824
(2,370,312)
1,991,824
(378,488)

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 25 to 49 form part of these financial statements.

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THE CHELTENHAM TRUST REGISTERED NUMBER: 09021431

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Tangible assets
11
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Net assets excluding pension asset /
liability
Defined benefit pension scheme asset /
liability
24
Total net assets
Charity funds
Restricted funds
18
Unrestricted funds
General funds
18
Unrestricted funds excluding pension asset
18
Pension reserve
18
Total unrestricted funds
18
Total funds		 109,467
321,602
2,249,850
2,680,919
(1,913,267)
853,652
853,652
-		 2023
£
223,131
223,131
767,652
990,783
990,783
-
990,783
137,131
853,652
990,783		 78,207
271,839
2,545,730
2,895,776
(1,653,010)
1,054,681
1,054,681
(1,736,000)		 2022
£
114,747
114,747
1,242,766
1,357,513
1,357,513
(1,736,000)
(378,487)
302,832
(681,319)
(378,487)

Page 20

THE CHELTENHAM TRUST REGISTERED NUMBER: 09021431

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023

The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 151 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

Louis Eperjesi Chair of Trustees

Date:

The notes on pages 25 to 49 form part of these financial statements.

Page 21

THE CHELTENHAM TRUST REGISTERED NUMBER: 09021431

CHARITY BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current liabilities / assets
Total assets less current liabilities
Net liabilities / assets excluding pension
asset / liability
Defined benefit pension scheme asset /
liability
24
Total net assets
Charity funds
Restricted funds:
Restricted funds
18
Restricted funds excluding pension asset
18
Total restricted funds
18
Unrestricted funds
General funds
18
Unrestricted funds excluding pension asset /
liability
18
Pension reserve
18
Total unrestricted funds
18
Total funds		 272,962
1,243,175
1,516,137
(2,181,583)
137,131
137,131
(608,188)
(608,188)
-		 2023
£
194,388
1
194,389
(665,446)
(471,057)
(471,057)
-
(471,057)
137,131
(608,188)
(471,057)		 506,039
1,256,681
1,762,720
(1,381,060)
302,831
302,831
185,716
185,716
(1,736,000)		 2022
£
106,886
1
106,887
381,660
488,547
488,547
(1,736,000)
(1,247,453)
302,831
(1,550,284)
(1,247,453)

Page 22

THE CHELTENHAM TRUST REGISTERED NUMBER: 09021431

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023

The Charity's net movement in funds for the year was £ 776,395 (2022 - £1,799,228) .

The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 151 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

Louis Eperjesi Chair of Trustees Date:

The notes on pages 25 to 49 form part of these financial statements.

Page 23

THE CHELTENHAM TRUST

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Cash flows from operating activities
Net cash generated in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 25 to 49 form part of these financial statements		 2023
£
(112,987)
(182,892)
(182,892)
-
(295,879)
2,545,729
2,249,850		 2022
£
814,455
(73,176)
(73,176)
-
741,279
1,804,450
2,545,729

Page 24

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. General information

The Cheltenham Trust, a company limited by guarantee (No. 09021431), was incorporated on 1 May 2014 and obtained charitable status on 18 September 2014. It is governed by its Memorandum and Articles of Association. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

The Cheltenham Trust commenced operations on 1 October 2014 and currently operates ‘The Wilson’ Art Gallery and Museum, ‘Leisure At’ Recreational Facilities at Pittville including the Prince of Wales Stadium, plus the Cheltenham Town Hall and Pittville Pump Room entertainment venues on behalf of Cheltenham Borough Council.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Cheltenham Trust 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.

The Statement of Financial Activitie (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

In preparing these accounts, the Trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required.

No restatements were required.

The financial statements consolidate the accounts of The Cheltenham Trust and all of its subsidiary undertakings ('subsidiaries').

The company has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Income and Expenditure Account.

Page 25

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.2 Going concern

The Trust continued to consolidate, repurpose, learn and adapt in the changing times and markets and has forecast its budget plan for 2023/24 and out for a further 3 years, and will keep monitoring and updating this forecast.

This forecast has been developed to ensure financial resilience and a robust organisation that can achieve its vision and ambitious programme.

Having considered all these factors, the Trustees believe there are no material uncertainties about the Trust’s ability to continue as a going concern and therefore the financial statements have been prepared on this basis

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees' Report for more information about their contribution.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Page 26

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.4 Expenditure (continued)

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.

The Trust capitalises items of Fixtures and Fittings and Office Equipment for central activities and does not recognise assets for leasehold properties or leasehold improvements made to assets operated by the Trust under the Management Agreement with Cheltenham Borough Council.

At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Page 27

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

2.12 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 28

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.13 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

The Group also operates a defined benefit pension scheme and the pension charge is based on a full actuarial valuation dated 31 March 2017. Further details regarding this scheme are included in Note 24 to the financial statements.

2.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

3. Income from donations and legacies

Unrestricted
funds
2023
£
Donations
-
Total 2022
9,484		 Total
funds
2023
£
-
9,484		 Total
funds
2022
£
9,484

Page 29

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

4. Income from charitable activities

Public engagements
Commercial and customer services
Content and programming
Corporate Income
Coronavirus Job Retention Scheme (CJRS)
Insurance income receivable
Arts Council Funding
Total 2022		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
23,277
1,501,159
-
1,122,386
313,261
1,776,809
-
812,227
-
-
-
-
-
-
336,538
5,212,581
432,358
5,576,655		 Total
funds
2023
£
1,524,436
1,122,386
2,090,070
812,227
-
-
-
5,549,119
6,009,013		 Total
funds
2022
£
942,878
1,257,197
1,374,393
1,324,756
53,623
77,004
979,162
6,009,013

Included within Corporate Income is £711,281 (2022: £811,281) in respect of management fees receivable from Cheltenham Borough Council. Further details regarding all transactions made with Cheltenham Borough Council are included in Note 27. .

5. Income from other trading activities

Income from non charitable trading activities

Unrestricted
funds
2023
£
2,579,293
Sales
2,579,293
Total 2022
2,124,902		 Total
funds
2023
£
2,579,293
2,579,293
2,124,902		 Total
funds
2022
£
2,124,902
2,124,902

Page 30

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6. Analysis of expenditure on charitable activities

Summary by fund type

FRS102 Pension adjustment
Public engagements
Commercial and customer services
Content and programming
Corporate
Total 2022		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
-
128,000
23,039
509,439
-
2,509,910
479,200
1,568,922
-
1,418,214
502,239
6,134,485
417,418
4,966,851		 Total
2023
£
128,000
532,478
2,509,910
2,048,122
1,418,214
6,636,724
5,384,269		 Total
2022
£
168,000
520,388
1,715,566
1,149,047
1,831,268
5,384,269

Summary by expenditure type

FRS102 pension cost
Public engagements
Commercial and customer services
Content and programming
Corporate
Total 2022		 Staff costs
2023
£
79,000
381,112
1,447,098
279,256
626,154
2,812,620
2,192,012		 Other costs
2023
£
49,000
151,366
1,062,812
1,768,866
792,060
3,824,104
3,192,257		 Total
2023
£
128,000
532,478
2,509,910
2,048,122
1,418,215
6,636,724
5,384,269		 Total
2022
£
168,000
520,388
1,715,566
1,149,047
1,831,268
5,384,269

Page 31

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

7. Analysis of expenditure by activities

FRS102 pension cost
Public engagements
Commercial and customer services
Content and programming
Corporate
Total 2022		 Activities
undertaken
directly
2023
£
128,000
532,478
2,509,910
2,048,122
(1,438)
5,217,072
4,094,608		 Support
costs
2023
£
-
-
-
-
1,419,653
1,419,653
1,289,661		 Total
funds
2023
£
128,000
532,478
2,509,910
2,048,122
1,418,215
6,636,724
5,384,269		 Total
funds
2022
£
168,000
520,388
1,715,566
1,149,047
1,831,268
5,384,269

8. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £9,000 (2022 - £9,500) , and Fees payable to the Charity's auditor in respect of all other services of £4,025 ( 2022 - £4,000 ).

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2023
£
2,402,409
243,145
212,234
2,857,788		 Group
2022
£
1,818,911
176,248
235,618
2,230,777		 Charity
2023
£
2,402,409
197,977
212,234
2,812,620		 Charity
2022
£
1,818,911
137,483
235,618
2,192,012

Redundancy payments totalling £NIL (2022: £9,605) were made to 0 employees (2022:6 employees) during the year ended 31 March 2023. All amounts were recognised within expenditure during the year with no amounts outstanding at the year end.

Page 32

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

9. Staff costs (continued)

The average number of persons employed by the Charity during the year was as follows:

Group Group
2023 2022
No. No.
Average monthly headcount 204 176

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2023 2022
No. No.
In the band £80,001 - £90,000 1 1

The key management personnel of the charity, The Cheltenham Trust, comprise the Trustees and the senior management team as listed on page 1. The total amount of employee benefits (including employer pension contributions and employer national insurance) received by key management personnel of the Trust was £299,136 (2022: £316,510).

No staff are directly employed by the subsidiary, Cheltenham Leisure and Culture Ltd.

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .

During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - £NIL) .

11. Tangible fixed assets

Group

Cost or valuation
At 1 April 2022
Additions
At 31 March 2023		 Fixtures and
fittings
£
16,464
29,006
45,470		 Office
equipment
£
272,570
153,886
426,456		 Total
£
289,034
182,892
471,926

Page 33

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11. Tangible fixed assets (continued)

Group (continued)

Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
Charity
Cost or valuation
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Fixtures and
fittings
£
8,604
8,123
16,727
28,743
7,860		 Office
equipment
£
165,683
66,385
232,068
194,388
106,887		 Total
£
174,287
74,508
248,795
223,131
114,747
Office
equipment
£
272,570
153,886
426,456
165,683
66,385
232,068
194,388
106,887

Page 34

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

12. Fixed asset investments

Investments in subsidiary companies Charity £ Cost or valuation At 1 April 2022 1 At 31 March 2023 1 Net book value At 31 March 2023 1 At 31 March 2022 1

13. Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name Company Registered office or principal Principal activity number place of business Cheltenham Leisure & Culture 09133998 Cheltenham Town Hall, Imperial Leisure & culture Limited Square, Cheltenham, activities on behalf of Gloucestershire, GL50 1QA the council Class of Holding Included in shares consolidation Ordinary 100% Yes

The financial results of the subsidiary for the year were:

Name Income Expenditure Profit/(Loss) Net assets
£ £ / Surplus/ £
(Deficit) for
the year
£
Cheltenham Leisure & Culture Limited 2,579,293 (1,986,418) 592,875 589,064

Page 35

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

14. Stocks

Group Group
2023 2022
£ £
Finished goods and goods for resale 109,467 78,207

15. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income
Amounts owed by group undertakings		 Group
2023
£
233,938
6,489
81,175
-
321,602		 Group
2022
£
167,746
57,037
47,056
-
271,839		 Charity
2023
£
67,660
124,126
81,176
-
272,962		 Charity
2022
£
53,503
218,890
47,056
186,590
506,039

Page 36

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

16. Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income
Deferred income at 1 April 2022
Resources deferred during the year
Amounts released from previous periods		 Group
2023
£
425,050
-
154,528
8,460
1,325,229
1,913,267
Group
2023
£
994,945
893,160
(994,945)
893,160		 Group
2022
£
190,453
-
15,911
3,617
1,443,029
1,653,010
Group
2022
£
1,423,749
994,945
(1,423,749)
994,945		 Charity
2023
£
426,449
691,073
-
7,890
1,056,171
2,181,583
Charity
2023
£
843,734
725,126
(843,734)
725,126		 Charity
2022
£
86,041
-
-
3,199
1,291,820
1,381,060
Charity
2022
£
1,256,977
843,734
(1,256,977)
843,734

Deferred income comprises advance ticket sales relating to various performances at the Town Hall in 2023-24 and for advance memberships at the recreation centre and for venue hires.

Page 37

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

17. Financial instruments

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Financial assets
Financial assets measured at fair value
through income and expenditure 2,249,850 2,545,730 1,243,175 1,256,681

Financial assets measured at fair value through income and expenditure comprise cash at bank and in hand.

Page 38

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds - all funds
Share capital
Pension reserve
Restricted funds
Archaeology
Memory Café
Arts award
GEM - Go the Extra Mile
Navigator Developer
Community Takeover
Exhibition
Cheltenham Borough Council -
Accreditation & Social Grants
Friends of the Wilson Project
Charles Irving Trust
Pittville Pump Room Heritage
Cafe Project
Summerfield Trust
The Wilson Gallery
Refurbishment Project
Total of funds		 Balance at 1
April 2022
£
1,054,680
1
(1,736,000)
(681,319)
4,319
1,000
2,000
-
6,050
-
6,000
217,643
63,420
2,400
-
302,832
Balance at 1
April 2022
£
(378,487)		 Income
£
7,791,874
-
-
7,791,874
2,870
-
-
23,277
-
21,655
-
250,000
-
8,736
30,000
336,538
Income
£
8,128,412		 Expenditure
£
(7,992,903)
-
(128,000)
(8,120,903)
(2,692)
-
-
(23,277)
-
(21,655)
(6,000)
(446,620)
-
-
(1,995)
(502,239)
Expenditure
£
(8,623,142)		 Gains/
(Losses)
£
-
-
1,864,000
1,864,000
-
-
-
-
-
-
-
-
-
-
-
-
Gains/
(Losses)
£
1,864,000		 Balance at
31 March
2023
£
853,651
1
-
853,652
4,497
1,000
2,000
-
6,050
-
-
21,023
63,420
11,136
28,005
137,131
Balance at
31 March
2023
£
990,783

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THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds - all funds
Share capital
Pension reserve
Restricted funds
Archaeology
Memory Café
Hidden Trails
Arts award
#FuelThursdays
GEM - Go the Extra Mile
Navigator Developer
Community Takeover
Exhibition
Cheltenham Borough Council -
Accreditation & Social Grants
Friends of the Wilson Project
Charles Irving Trust
Pittville Pump Room Heritage
Cafe Project
Summerfield Trust
Cheltenham Borough Council/
National Leisure Recovery
Fund
Total of funds		 Balance at
1 April 2021
£
74,796
1
(2,733,000)
(2,658,203)
4,849
1,000
5,000
2,000
17,804
-
6,050
-
6,000
245,188
-
-
-
287,891
(2,370,312)		 Income
£
7,711,041
-
-
7,711,041
-
-
-
-
-
30,557
-
38,952
-
-
125,345
2,400
235,104
432,358
8,143,399		 Expenditure
£
(6,731,157)
-
(168,000)
(6,899,157)
(531)
-
(5,000)
-
(17,804)
(30,557)
-
(38,952)
-
(27,545)
(61,925)
-
(235,104)
(417,418)
(7,316,575)		 Gains/
(Losses)
£
-
-
1,165,000
1,165,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,165,000		 Balance at
31 March
2022
£
1,054,680
1
(1,736,000)
(681,319)
4,318
1,000
-
2,000
-
-
6,050
-
6,000
217,643
63,420
2,400
-
302,831
(378,488)

Page 40

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Statement of funds (continued)

Details of the Restricted Funds are as follows:

Archaeology - Contributions from local archaeology groups towards shelving and storage for finds.

Memory Café - A monthly meet for people with dementia to visit The Wilson and engage with objects that may trigger memories. Presently digital due to covid.

Arts Award - Funding to support an arts award programme.

#Fuel Thursdays - National Lottery funding a programme of positive activities such as sport, cooking, music, art and life skills for young people in the community.

GEM – Go The Extra Mile Navigator Developer - Funding for Navigator Developer roles supporting those who are furthest away from employment in to employment.

Community Takeover Exhibition - Funding from The Community Resilience Fund to support community artists exhibit their work.

Cheltenham Borough Council - Accreditation & Social Grants, Researching and documenting of The Wilson's Collection supporting Accreditation; Funding a programme of local music performances in Cheltenham parks

.

Friends of The Wilson - Friends of the Wilson funding supporting specific projects at The Wilson.

Charles Irving Trust - A bequest supporting a new community art and exhibition gallery at The Wilson, where local artists and groups will have an opportunity to display their work, and network as a creative community.

The Wilson Refurbishment Project - Funding supporting a new community art and exhibition gallery at The Wilson, where local artists and groups will have an opportunity to display their work, and network as a creative community,

Pittville Pump Room Heritage Café Project - Funding to support Heritage café development project.

Cheltenham Borough Council/ National Leisure Recovery Fund - Covid-19 support funding to enable leisure centres to reopen and recover as sustainable operations.

The Summerfield Trust - Community exhibition project where young people in Cheltenham designed and made new costumes from clothes destined for landfill.

Hidden Trails – A project encouraging community exploration of Cheltenham through guided maps and clues.

Page 41

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

19. Summary of funds

Summary of funds - current year

General funds
Restricted funds		 Balance at 1
April 2022
£
(681,319)
302,832
(378,487)
Balance at
1 April 2021
£
(2,658,203)
287,891
(2,370,312)		 Income
£
7,791,874
336,538
8,128,412
Income
£
7,711,041
432,358
8,143,399		 Expenditure
£
(8,120,903)
(502,239)
(8,623,142)
Expenditure
£
(6,899,157)
(417,418)
(7,316,575)		 Gains/
(Losses)
£
1,864,000
-
1,864,000
Gains/
(Losses)
£
1,165,000
-
1,165,000		 Balance at
31 March
2023
£
853,652
137,131
990,783
Balance at
31 March
2022
£
(681,319)
302,831
(378,488)
Summary of funds - prior year
General funds
Restricted funds

20. Analysis of net assets between funds Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
-
223,131
137,131
2,543,823
-
(1,913,305)
137,131
853,652		 Total
funds
2023
£
223,131
2,680,954
(1,913,304)
990,783

Page 42

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

20. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Provisions for liabilities and charges
Total		 Endowment
funds
2022
£
-
15,911
(15,911)
-
-		 Restricted
funds
2022
£
-
302,831
-
-
302,831		 Unrestricted
funds
2022
£
114,747
2,577,034
(1,637,099)
(1,736,000)
(681,318)		 Total
funds
2022
£
114,747
2,895,776
(1,653,010)
(1,736,000)
(378,487)

21. Reconciliation of net movement in funds to net cash flow from operating activities

22.

Net income/expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Increase in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Other cash flow adjustments
Net cash provided by/(used in) operating activities
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Group
2023
£
(494,730)
74,508
(31,260)
36,591
173,903
128,001
(112,987)
Group
2023
£
2,249,850
2,249,850		 Group
2022
£
826,824
35,802
(25,910)
(30,399)
(219,630)
227,768
814,455
Group
2022
£
2,545,730
2,545,730

Page 43

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

23. Analysis of changes in net debt

Cash at bank and in hand At 1 April
2022
£
2,545,730
2,545,730		 Cash flows
£
(295,880)
(295,880)		 At 31 March
2023
£
2,249,850
2,249,850

24. Pension commitments

The Group operates a defined benefit pension scheme.

On 1 October 2014 the charitable company became a scheduled member into the Local Government Superannuation Scheme. At that date the liability relating to employees transferred under TUPE became the liability of the charitable company.

Under the transfer arrangements between Cheltenham Borough Council and the Trust, the net liability on the pension scheme remains a liability for the Trust but the Council is guarantor for any liability for the Local Government Pension Scheme in the name of the Trust.

This is a funded defined benefit scheme. This is a closed scheme for new employees unless the Transfer of Undertakings (Protection of Employment) Regulations 2006 apply. The contribution rates are those recommended by the fund's actuary, Hymans Robertson, and were set on the basis of:

The actuarial valuation was based on economic and statistical assumptions, the main ones being:

The latest formal valuation of the fund for the purpose of setting employer's actual contributions was as at 31 March 2019 with the next formal valuation due currently.

The market value figures below are based on assumptions required by FRS 102 standards. The assumptions that have the most significant effect on the results of the FRS102 valuation are detailed below. Mortality follows the standard tables known as PFA92 and PMA92 with improvements in line with the Medium Cohort. The life expectancy used is based upon mortality assumptions. Assuming retirement at age 65, the life expectancies in years used in the valuation are as follows:

Page 44

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

24. Pension commitments (continued)

Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):

Discount rate
Future salary increases
Future pension increases
Mortality rates (in years)
- for a male aged 65 now
- at 65 for a male aged 45 now
- for a female aged 65 now
- at 65 for a female aged 45 now		 At 31 March
2023
%
4.75
3.45
2.95
At 31 March
2023
Years
20.7
22.1
24.3
25.5		 At 31 March
2022
%
2.75
3.45
3.15
At 31 March
2022
Years
21.7
22.6
24.1
25.8

The Group's share of the assets in the scheme was:

Equities
Corporate bonds
Property
Cash and other liquid assets
Total fair value of assets		 At 31 March
2023
£
3,866,000
1,230,000
703,000
59,000
5,858,000		 At 31 March
2022
£
4,429,000
1,185,000
562,000
62,000
6,238,000

The actual return on scheme assets was £-105,444 (2022 - £436,660) .

The amounts recognised in the Consolidated Statement of Financial Activities are as follows:

Current service cost
Interest income
Interest cost
Total amount recognised in the Consolidated Statement of Financial
Activities		 2023
£
167,000
(172,000)
221,000
216,000		 2022
£
206,000
(119,000)
176,000
263,000

Page 45

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

24. Pension commitments (continued)

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation
Interest cost
Contributions by scheme participants
Actuarial gains
Benefits paid
Current service cost
Closing defined benefit obligation		 2023
£
7,974,000
221,000
24,000
(2,453,000)
(75,000)
167,000
5,858,000		 2022
£
8,505,000
176,000
25,000
(879,000)
(59,000)
206,000
7,974,000

Movements in the fair value of the Group's share of scheme assets were as follows:

Opening fair value of scheme assets
Expected return on assets
Actuarial (losses)/gains
Contributions by employer
Contributions by scheme participants
Benefits paid
Closing fair value of scheme asset		 2023
£
6,238,000
172,000
(589,000)
88,000
24,000
(75,000)
5,858,000		 2022
£
5,772,000
119,000
286,000
95,000
25,000
(59,000)
6,238,000

Page 46

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

25. Net pension asset/liability

Present value of liabilities
Fair value of plan assets
Surplus restriction
Closing net asset/liability		 2023
£
(4,594,000)
5,858,000
(1,264,000)
-		 2022
£
(7,974,000)
6,238,000
-
(1,736,000)

The actuarial valuation for the year ended 31 March 2023 showed a scheme surplus of £1,264,000. In determining whether a surplus on the scheme is recognisable on the balance sheet, the Trustees reviewed the requirements of Para 28, FRS 102 which states that the Charity "shall only recognise a plan surplus as a defined benefit asset only to the extent that is is able to recover the surplus, either through reduced contributions in the future, or through refunds from the plan."

Under the transfer arrangements between Cheltenham Borough Council and the Trust, the net liability which has historically been recognised, remains a liability for the Trust, but the Council acts as guarantor for any liability arising for The Cheltenham Trust in being the sponsor employer for the Local Government Pension Scheme. Further, the contributions made by the Charitable Company into the scheme are included in the agreed annual recharge mechanism between the Trust and the Borough Council. In reviewing the guidance available in FRS 102, the Trustees bore in mind the above circumstances and determined that in substance, the Trust would have no entitlement to any pension asset in the future and therefore it should not be accounted for in the year ended 31 March 2023.

Accordingly, the pension asset has been restricted and a £nil balance has been presented on the balance sheet of the Trust.

26. Members' liability

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.

Page 47

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

27. Related party transactions

The Cheltenham Trust was set up to operate the leisure, entertainments and cultural facilities of Cheltenham Borough Council (CBC). Trustees Councillor B Clark, Councillor S Harvey and Councillor A Lewis are elected members of Cheltenham Council and are the CBC nominated Trustees. Trustee Councillor A Lewis resigned 18 July 22. D Smith, Trustee, is Alderman of Cheltenham. Trustee D Smith resigned 30 September 22.

During the period the Trust received income amounting to £1,104,073 from Cheltenham Borough Council which included income relating to management fees received under a Management Agreement, venue hires and project funding (2022: £1,365,594). At the period end there was £9,859 outstanding (2022: £25,030).

The Trust receives administrative and other support services from various related bodies including Publica (an employment company jointly owned by Cotswold, West Oxfordshire, and Forest of Dean District Councils and Cheltenham Borough Council) that delivers finance, HR, and ICT services. These bodies associated with CBC provide services under service level agreements with expenditure during the year as follows:

Cheltenham Borough Council
Cotswold District Council		 2023
£
510,390
77,530
587,920		 2022
£
411,416
126,278
537,694

Of these amounts £77,530 (2022: £61,352) was owing to Cotswold District Council at the year end and £119,770 (2022: £114,795) was owing to Cheltenham Borough Council.

During the year, the Trust made sales of £500 for venue hires (2022: £750) to Cheltenham Borough Homes Ltd, a subsidiary company of Cheltenham Borough Council. £nil was outstanding at year end (2022: £nil) . The Trust received goods and services from Cheltenham Borough Homes Ltd of £nil (2022: nil).

Ms J Meekings-Davis was appointed as a Trustee in October 2017 and resigned 30 September 2022. She is a Trustee of the Friends of The Wilson Art Gallery & Museum.

During the year the charity received £30,000 from the Friends (2022: £nil) and held a balance of £28,005 at 31 March 2023 (2022: £6,000). Expenditure in relation to Friends of the Wilson amounted to £nil (2022: £nil) for the year ended 31 March 2023.

See note 13 in respect of The Cheltenham Trust's subsidiary undertaking, Cheltenham Leisure and Culture Ltd (CLC Ltd). Advantage is taken of the FRS102 exemption from disclosure of certain intergroup transactions.

Page 48

THE CHELTENHAM TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

28. Post balance sheet events

Subsequent to the year end, The Cheltenham Trust agreed a 5 year extension to its existing Management Agreement with the Cheltenham Borough Council which allows for the Trust to continue to deliver its Charitable objectives and to independently operate buildings owned by Cheltenham Borough Council for the agreed term.

On October 25th 2023, the ballroom of Pitville Pump Rooms was closed following routine maintenance checks which identiied the need for urgent remedial works at the site. The closure is not expected to have a material impact on the trading operations of the Trust and Management are working with customers to transfer event bookings to alternative venues in the Town. It is not currently known when the site will re-open. The costs of performing the remedial works are attributable to the Cheltenham Borough Council.

Phase I of a refurbishment project at The Wilson Art Galley and Museum was completed in July 2022. Subsequent to the end of the reporting period, The Cheltenham Trust committed to a significant capital contract for Phase II of the Wilson refurbishment project. The outstanding capital commitment at the date of approval of these financial statements is c.£350k. This project will be funded by grants received from DCMS and Friends of the Wilson.

Page 49