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2023-03-31-accounts

MAGNA VITAE

TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023

Charity Registration No. 1160156 Company Registration No. 09078400 (England and Wales)

MAGNA VITAE LEGAL AND ADMINISTRATIVE INFORMATION

Chairman of the Trustees Peter Helps

Community Trustees Ian Emmerson OBE (Vice Chairman) Ashley Lidgard Jonathan Stones David Warden Cate Atwater (appointed 20 October 2022) Michelle Howard (appointed 20 October 2022)

Local Authority Trustees

Cllr Sarah Parkin (resigned 24 May 2023) Cllr Steve Kirk (resigned 24 May 2023) Cllr Sam Kemp (appointed 24 May 2023) Cllr Robert Watson (appointed 24 May 2023)

Employee Trustee Ross Cameron (resigned 13th April 2022) James Brindle Executive Directors Aeneas Richardson

Charity number 1160156

Company number 09078400 Meridian Leisure Centre Registered office Wood Lane Louth, Lincolnshire LN11 8SA

Senior Leadership Team James Brindle, Executive Director Aeneas Richardson, Executive Director Sally Topham, Director of Finance James Turner, Director of Business Development Naomi Wilkinson-Baker, Director of Operations (from January 2023)

Independent Auditors

Streets Audit LLP Tower House Lucy Tower Street Lincoln, Lincolnshire LN1 1XW

Bankers

Barclays Bank PLC 1 Churchill Place LONDON E14 5HP

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TRUSTEES’ REPORT (INCLUDING THE STRATEGIC REPORT)

FOR THE YEAR ENDED 31 MARCH 2023

The Trustees (who are also Directors of the charity for the purposes of the Companies Act) are pleased to present their Annual Report together with the audited financial statements of Magna Vitae (the Trust) for the year ended 31 March 2023.

The Trustees confirm that the Annual Report and Financial Statements of the Trust have been prepared in accordance with the accounting policies set out in note 1 to the accounts and 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) (effective 1 January 2019).

Since the charity qualifies as small, under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director’s Report) Regulations 2013 is not required.

Objectives and Activities POLICIES AND OBJECTIVES

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

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

The charity’s revenues and any operating surpluses are re-invested to continually develop and improve outcomes for the people of East Lindsey.

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Magna Vitae has a strategic partnership with East Lindsey District Council (ELDC).

Our Vision, Mission and Values are encapsulated in Magna Vitae’s DNA:

Our Vision is to improve the wellbeing of our community, enabling people to live great lives.

Our Mission is to clearly demonstrate proactive and innovative leadership, that will generate positive changes in the areas of social and economic inequality. We are committed to empower local people by reaching out with humanity and compassion.

Our Values - We are in this together ; we embrace change ; we are always learning and we . celebrate difference

In This Embrace Always Celebrate Together change Learning Differences The team comes first. We innovate. We We constantly seek to We appreciate that we Everyone in our team identify the need to become the best version are all different. We has a voice and a place. change. We routinely of ourselves. A team capitalise on our We are a truly cohesive accept change and agree of human beings with cognitive diversity. We unit that routinely shows that change is necessary, a collective desire to are commited to togetherness, has a change is good. We do flourish in a safe learning minimising our individual positive drive, ambition change well. Our environment. We have blind spots by and holds each other dynamic approach is a growth mindset. We tapping into the accountable. We believe flexible and adaptable. positively blend our collective intelligence that we are stronger We embrace change. professional and of our team. We seek to together and that personal self. We take understand and respect together, we can lead responsibility and we each other’s perspective, the way. do it better every time. views and opinions and Being the best version of thereby maximise our ourselves will allow us to creative potential. better the lives of others.

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Our charitable Objectives form part of our Articles of Assocation

– To provide or assist in the provision of both indoor and outdoor facilities in the interests of social welfare for recreation or other leisure time occupation of individuals who have need

of such by reason of their youth, age, infirmity or disability, financial hardship or social circumstance or to the public at large with the object of improving their conditions of life; and/or

– To promote community participation in healthy recreational activities; and/or

– To provide or assist in the provision of community facilities to be available to all sections of the community without distinction, including use for meetings, lectures and classes and/or other forms of recreation and leisure time occupation with the object of improving the conditions of life for all who use the facilities; and/or

– To promote the education of the public through the provision of facilities for performing arts and/ or

– Such other charitable purposes as the Trustees in their absolute discretion may determine.

We have developed a five year Corporate Strategy 2022-2027 which has five main aims:

----- Start of picture text -----
AIM 1: Be a trusted
AIM 4: Lead a diverse
market leading team in
local team, enabled with
the delivery of wellbeing
efficient communication
and culture services
infrastructure and
within targeted
systems, towards high
communities through
performance delivery
service excellence,
across all service
innovation, and local
channels
partnerships.
AIM 3: Offer high
quality holistic wellness
solutions, visible and
available in-venue and
online, trusted by
customers and
supported by research
AIM 2: Be sustainably AIM 5: Create working
funded by local environments that
stakeholders and support career growth,
through measured continuous learning and
diversification projects diversity through
to grow our business teamwork,
portfolio and deliver transparency, and
value efficiently honest communication
----- End of picture text -----

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MARKET CONDITIONS

April 2022 to March 2023 marked a first full year free from COVID-19 disruption, a welcome milestone, as Magna Vitae continues to build back stronger, providing outstanding service to our customers, patrons and members throughout the Lincolnshire district of East Lindsey and the surrounding area.

According to census data (2021), the population of East Lindsey was 142,300, a figure projected to grow 11.4% by 2037. This projection includes a reduction in both the 0-15 and 16-64 age groups, whilst the population aged over 65 will continue to grow.

East Lindsey is ranked as the 33rd most deprived district in England (Indices of Multiple Deprivation, 2019.

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CURRENT PRINCIPAL ACTIVITIES

The Trust operates cultural and leisure venues across the East Lindsey area, owned by East Lindsey District Council.

These are:

In addition to physical venues, Magna Vitae is able to support our communities right across the East Lindsey area and beyond via:

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Achievements and Performance

REVIEW OF ACTIVITIES

Corporate

April 2022 to March 2023 marked a first full year free from COVID 19 disruption, a welcome milestone, as Magna Vitae continues to build back stronger, providing outstanding service to our customers, patrons and members throughout East Lindsey and the surrounding area.

From a business performance perspective, 2022 – 2023 has delivered very positive performance for the company, further re-cementing our foundation for continued success. Whilst the cost-of-living crisis poses huge challenges for our operations and customers going forward, the Trust finished the year very strongly and presently finds itself in a better position than originally estimated at the start of the year.

Our work continues to focus on serving communities through our diverse portfolio of facilities, programmes and events, something that caught national interest in the Summer 2022 when we were asked to present to the national Charity Finance Group as well as an All Party Parliamentary Group on Cultural Rural Touring. It is always a great pleasure to share our innovations and experiences with other operational partners and politicians.

Our leisure operations have witnessed extraordinary growth throughout the year, with record breaking performances in our fitness memberships, WaterWise swimming programme and Gymnastics club. Fitness membership growth has been spearheaded following a £300,000 investment by East Lindsey District Council to refurbish the fitness suite at Meridian Leisure Centre in June 2022.

Our WaterWise swimming programme continues to grow, with over 2,000 children learning to swim in our swimming pools every week. During the Summer, the hot weather and introduction of a new pool programming methodology at Skegness Outdoor Swimming Pool, saw the site record its highest ever attendances and casual swimming income in August. The Gymnastics club also continues to grow at the Meridian Leisure Centre, hitting over 260 members. The club was nominated and shortlisted for “Community Club of the Year” by British Gymnastics in March, a fantastic accolade and testament to the enthusiasm and hard work put in by the team.

Ongoing, external QUEST assessment has confirmed that all of our leisure venues exhibit high levels of cleanliness, are very well maintained and regularly demonstrate excellent customer service and value for money. All of our venues have now received “VERY GOOD” QUEST accreditation status. Testament to this was Horncastle Pool and Fitness Suite winning a national “best swimming pool member experience” award in November 2022!

The Embassy Theatre has had an extraordinary year, from sell-out shows with Strictly Come Dancing champion Giovanni Pernice, staging a leg of the Elvis World Tour, hosting Arts Council England’s National Conference through to its record breaking Beauty and the Beast pantomime. In February it showcased the nationally acclaimed, artwork installation InOrbit by renowned artist Luke Jerram, seeing all three planets (Gaia, Museum of the Moon & Mars), visiting one venue consecutively for the first time attracting 14,790 visitors. Huge excitement continues to build with regards to the proposed £1.4m “Town Fund” Culture House development, with works now currently scheduled to commence in January 2024 and be completed by the end of March 2025.

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SO Festival 2022 saw the return of the Community Stage as it once again provided three full days of awe-inspiring street theatre by local and international artists in Skegness and Mablethorpe. Later in the year SO Festival secured its place as a National Portfolio Organisation (NPO) for the third time running, along with a significant funding increase. This will enable us to further democratise the festival through developing and expanding our support for the sector, and delivering ambitious and accessible arts and cultural activities for East Lindsey.

The Community and Lifestyle teams continue to grow and offer successful free programmes for our communities to engage with and enjoy. Our ‘School’s Out’ programme saw 1,700 children in the school holidays participate in a variety of activities across 8 locations in the district. Whilst our Holiday Activity & Food (HAF) programme enabled 1,000 young people to have access to free hot meals and join in with physical activities, across 3 locations (Louth, Skegness and Mablethorpe). Alongside this, our Ageless and Agile participant numbers continued to grow to 143 participants, whilst our Community Team offered an increasingly wide-ranging variety of free activities within some of the more rural / isolated communities that do not routinely have access to any leisure facilities.

Our employees continue to figure at the heart of Magna Vitae as we strive for personal and professional growth, with many exciting opportunities arising over the year enabling development for both staff and our wider community partners. In the spirit of our DNA and ‘Always Learning’ we have offered placements for work experience across the company and apprenticeship opportunities in Leisure and Hospitality through our blossoming partnership with Lincoln College. There has also been an array of training opportunities offered within Magna Vitae including the ‘Skill Builder Programme’ funded by Coastal Communities, that resulted in 9 of the 35 enrolled students gaining employment with Magna Vitae. Furthermore, the successful application for “Multiply” funding (£10,000) from Lincolnshire County Council will be used to enrol ‘Multiply Champions’ within the workforce to assist colleagues and wider family/friends with mathematical needs that apply to daily life. Professional CPD Masterclasses also took place on all four themes connected to our core corporate values; on the theme of ‘In this Together’ a Masterclass was held by International Rugby Union player, Chris Wyles, on his career and learnings regards the importance of teamwork.

The success over the last 12 months has been an incredible achievement and continues to demonstrate the hard work, dedication and commitment of every single Magna Vitae staff member, as well as the extraordinary support from our ever-growing number of loyal customers. We are all in this together, and look forward to embracing the constant change and exciting developments planned for the next 12 months and beyond as we all contribute and strive to enable as many people as possible to “live great lives”.

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Physical Activity Opportunities

Meridian Leisure Centre

Skegness Pool & Fitness Suite

Horncastle Pool & Fitness Suite

Staton Sports Centre

Alttude 44, Skegness

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London Road Pavilion

The Pavilion saw over 50 teams, leagues and organisations train and participate in competitive football, cricket and hockey on a weekly basis throughout the year. The site also hosted a number of multi-school sport competitions across the academic year. Furthermore 2022 was the 200th anniversary of Louth Cricket Club, and the venue played host to a week-long cricket festival as well as the now annual Outfields Festival.

QUEST

Often described as ‘Ofsted for Leisure Centres’, Quest is a nationally recognised quality management accreditation scheme, endorsed by Sport England. It is also an independently administered quality and benchmarking scheme for the Leisure industry. It measures how effective organisations are at providing customer service. We are proud to announce that ALL our venues have been awarded ‘Very Good’; also acknowledging increasing numbers of specific service aspects classified as “Excellent”.

Booster Swimming Lessons

410 children took part in Booster Swimming Lessons during half terms and school holidays, with 89 taking part in additional workshops across the year.

Natonal Pool Lifeguard Qualifcaton (NPLQ)

20 candidates took part and passed their NPLQ course with Magna Vitae this year.

Holiday Actvity and Food Programme (HAF)

Our Holiday Activity and Food Programme took place over the Easter Holidays, Summer Holidays and Christmas Holidays through the year. All children that attended were offered a hot meal. 1,194 children participated at 3 locations with 34 days of delivery.

Activities participated in included ‘Dance Free’ silent disco sessions on Mablethorpe & Skegness beaches, pottery, soft play, bowling, music, various physical activities and arts and crafts.

A ‘Teenage’ offer, was also trialled where eligible teenagers were offered a slightly different programme where they could access the gym and swimming pool at the Meridian Leisure Centre independently rather than the more structured sessions offered to younger participants.

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Health Improvements

One You Lincolnshire Exercise on Prescripton programme

603 individuals were assessed on the programme, across the year. Across all venues:

Ageless & Agile

To further support those on Exercise on Prescription, we now deliver ‘Ageless & Agile’ which offers weekly drop-in sessions for members and those on the Exercise on Prescription programme.

4 Locations – 143 Participants

Participants are able to access health walks, nutritional advice, social coffee and natter and information on many other health & wellbeing topics, which is available at the Magna Vitae leisure venues. The Ageless and Agile sessions started week commencing 20th June and have been running weekly at our leisure venues.

In Louth, the Louth Rotary Club donated £500 to help keep the Sporting Memories programme running.

Magna Vitae have also been successful in securing funding from the Mental Health and Wellbeing Community Investment Sustainability Fund to further support the development of the Ageless and Agile project. This will provide £56,000 funding over 3 years securing the project until 31st March 2026.

Warm Spaces

To support our residents 8 Warm Spaces were created across the Magna Vitae leisure venues, providing a safe space with respect, dignity and warmth. The spaces offered places where local residents can come together to stay warm, socially interact and simultaneously enjoy a cup of tea and a biscuit.

Age Friendly Training

16 Magna Vitae staff attended a workshop delivered by YMCA Lincolnshire which aims to assist your organisation and staff to understand what is meant by ‘Age-friendly’, how ageing impacts on daily life, and equip staff with the skills to communicate effectively and identify accessibility issues.

2 sessions took place – At Meridian Leisure Centre in Louth, and Embassy Theatre in Skegness

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Sport, Physical Activity and Development

Community Actvites

In Binbrook & Brookenby the Fitness Circuit and YOGA Sessions have been well supported since they started in January with regular well attended sessions at both Binbrook Village Hall and Brockenby Community Centre.

5 Magna Vitae Staff went to Sleaford to attend a ‘Wellbeing Walks’ Training Day working with Lincolnshire Coop. This now allows walks to start in Binbrook and Wragby from April and to re-invigorate walks currently struggling in Horncastle and Louth.

School’s Out Programme

Throughout the year the team delivered numerous programmes across Alford, Binbrook, Coningsby, Horncastle, North Somercotes, Spilsby, Wainfleet and Wragby.

Delivery included Football, Multi Skills, Dance, Sports Day, Street Dance, Athletics, Dodgeball, Cricket and other non-sport related games such as Bulldog and Tag. As well as the activities, there were day trips out to ventures like Ascend Climbing, Jump Warriors and Altitude44 in Skegness.

The activity programme saw more family orientated acivities like Fairy Doors, Dance Free and Family Walking Groups added over the course of the year.

We introduced 3 new staff members to our programme, aged 16 - 17 years, all of whom are currently studying sports courses and have expressed a desire to pursue a career in sports coaching going forward.

8 Locations - 1,682 Participants

Diabetes Drop Ins

In June 2022, the team delivered on Diabetes drop in sessions during Diabetes Awareness Week. Some of these were brief chats but each still had the engagement and raised the awareness.

4 Sessions - 45 Participants

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Culture, Arts and Events

Embassy Theatre

A sold-out crowd for the much anticipated performance of Strictly Come Dancing champion Giovanni Pernice.

The opportunity to showcase our magnificent venue to delegates from Arts Council England as well as provide them with a taste of the East Coast was also delivered with very positive feedback received.

The Elvis World Tour was a wonderful coup, as the Embassy was one of only eight to be selected for a UK tour.

The relentless pace of August kept everyone on their toes with near daily activity – Megaslam Wrestling, a fantastic summer season spectacular courtesy of Stage Struck from the Janice Sutton Theatre School and screenings too, ensuring that every taste and budget was covered.

The weekends were pretty special too, with magnificent live shows paying tribute to iconic performers – from the nostalgic homage to The Hollies and The Searchers, to the blockbuster moves of Michael Jackson, Freddie Mercury and Tina Turner.

112 Live Performances - 22 Screened Events - 54 VIP Experience Events - 58 Other Events

The Magna Vitae Productions Pantomime, Beauty and the Beast, drew in crowds over the Christmas period with 9,572 patrons attending throughout the production period.

Santa and his elves made a special stop Upstairs at The Embassy for Afternoon Tea. Believers enjoyed an afternoon experience alongside their family pantomime visit.

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During February and March, The Embassy Theatre showcased 6 weeks of inOrbit, a unique artwork instillation from the renowned artist Luke Jerram made up of Gaia, Museum of the Moon and Mars.

The unique season saw all 3 pieces visiting one venue consecutively for the first time in the UK. In addition, Mars made it’s maiden voyage to Lincolnshire and the East Coast. Their six week stay saw the venue transformed from a traditional theatre into a space for reflection, observation and education.

5564 People Visited Gaia - 4893 People visited Museum of the Moon - 4333 People visited Mars

inOrbit drew in a new and diverse audience, showing a 33% increase in Under 14’s attending The Embassy for inOrbit in comparison with previous years venue programme.

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SO Festval

Natonal Portolio Organisaton (NPO)

Our flagship cultural event, SO Festival, has been awarded Arts Council England funding and secured its place as a National Portfolio Organisation (NPO) for the third time running. This crucial funding and uplift will not only allow us to continue to deliver ambitious, accessible, arts and cultural activities, increase team capacity and increase our programme, but also to set the cogs in motion to democratise SO Festival, collaborating closely with the coastal communities we are privileged to work amongst & alongside and taking their steer at every stage in the creative process.

On 24 March, 30 Lincolnshire based creatives flocked to the Embassy Theatre, Skegness, for the long-awaited return of The SOcial: SO Festival’s free, open, creative networking session, aimed at celebrating the Greater Lincolnshire art scene and providing a platform for local creatives to connect, collaborate and create!

The special return event was hosted ‘inOrbit’ of MARS - the latest, awe-inspiring art installation by renowned UK artist, Luke Jerram.

On the last day of Jerram’s popular exhibition in Skegness, local makers, movers and shakers in the cultural sector met with fellow like-minds, shared ideas and artistic solutions and forged new connections amongst their celestial surroundings.

Audio Tales

An immersive audio trail around East Lindsey, inviting audiences to explore the county, scanning QR codes to discover original pieces of writing about the district. Audio Tales launched in April 2022, and

has a positive response since. We have recently collaborated with the Lincolnshire Libraries network who have taken the maps out on their mobile deliveries.

Skegness Standard attend the launch event and have published an article about the project.

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Financial Review

OVERVIEW INCORPORATING KEY FINANCIAL PERFORMANCE INDICATORS

Full details of our financial performance during the year ended 31st March 2023 are shown in the financial statements and supporting notes. The table below shows the headline income and expenditure for 2022/23 compared to 2021/22 – excluding pension and donated services adjustments, and excluding any change in asset market valuation.

31 March 23 31 March 22
Income
Service Fee (ELDC) 1,523,308 1,527,732
Fees & Charges 410,269 257,575
Grant Income 250,525 1,013,725
Gym Membership 1,075,096 704,162
Hire Fees 261,847 234,769
Other Income 577,612 352,647
Pool Admissions 429,281 315,637
Rental Income 57,265 17,097
Show Income 972,124 519,574
Swimming Lessons 680,254 492,236
Total Income 6,237,581 5,435,154
Expenditure
Depreciaton -53,731 -67,643
Employees -2,877,502 -2,542,949
Premises -855,693 -638,646
Supplies & Services -1,983,994 -1,532,887
Transport -39,493 -41,814
Support Services -35,034 -34,550
Total Expenditure -5,845,447 -4,858,489
Defcit 392,134 576,665

Income

Income levels recovered well during the year, following the Covid-19 pandemic impacting previous years. Total income reached the same level as pre-Covid, and was a 15% increase on the previous year. We successfully applied the VAT cultural exemption to our theatre ticket income during the year, which also resulted in the recovery of VAT relating to previous years. This has increased the Show Income in the year.

Expenditure

Expenditure of £5.8m was incurred during the year, an increase of 20% on the prior year. This was in line with the increase in activities and income in the year. Staffing expenditure was our largest area of spend, as in all previous years, representing 49% of total expenditure. However, overall staffing costs were overall lower than pre-Covid.

The surplus for the year was £392,134 against an original deficit budget of £246,838.

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The current allocation of reserves is as follows:

he current allocaton of reserves is as follows: 31 March 23 31 March 22
Income £ £
Income Funds (restricted) 88,433 262,915
Income Funds (unrestricted including designated) 1,755,049 1,088,433
Pension Reserves (-defcit) 0 -968,000
Total Reserves 1,843,482 383,348

The trustees note the positive total reserves position of £1.8m at 31 March 2023. This has grown considerably due to the financial performance during the year and also the reduction of the Pension Reserve deficit to Nil. The actuarial report of the local government scheme pension, carried out for the year end 31 March 2023 showed a pension asset of £3.228m, however the balance has not been recognised on the basis that it is not deemed to be recoverable through reduced contributions in the future or through refunds from the plan.

GOING CONCERN

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Specific consideration has been given to the impact of inflationary cost pressures, particularly in relation to energy costs. Trustees have agreed a deficit budget in 2023/24 and have agreed to allocate unrestricted income reserves to part fund this deficit. Additionally, Magna Vitae continues to work alongside our main client and strategic partner East Lindsey District Council to mitigate the impact of energy cost pressures.

KEY CHALLENGES

We agreed a five-year business plan (2022-2027) with East Lindsey District Council including an ongoing service fee level, which also includes Community Commissioning work to further support our local community. This is in line with our Corporate Strategy referenced elsewhere in the report.

This partnership and relationship with the Council is key to ensuring that the Trust continues to thrive and support the wellbeing of our communities, residents and customers, so they can live a great life.

The key financial challenges facing Magna Vitae in 2023/24 and beyond relate to mitigating the impact of inflationary cost pressures, particularly gas tariffs which increased by over 200% in April 2023, decarbonisation of our venues, in conjunction with East Lindsey District Council, maintaining and further growing our core business areas, whilst achieving staffing resilience. This work will allow us to ensure focus on achieving our charitable objectives in line with community need whilst remaining financially viable and resilient.

These challenges will most effectively be met through partnership and collaboration with other strategic partners locally, regionally and nationally through a whole system approach.

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RESERVES POLICY

Whilst Magna Vitae is a not-for-profit organisation, it is aware that it needs to hold working surpluses in order to create a reserve for unforeseen circumstances. Unrestricted income funds stand at £1,755,049; however, £288,489 is tied up in Magna Vitae’s fixed assets. Therefore, current available or free reserves stand at £1,466,560, including £50,000 designated for Cultural Projects.

This reserves figure is higher than our Reserves Policy which is to hold £500,000 in unrestricted or free reserves. However, trustees have agreed to hold these reserves at 31 March 2023 whilst there is so much uncertainty around energy costs and other inflationary cost pressures. The reserves will be required to support Magna Vitae during the coming year and will part fund the budgeted deficit in 2023/24 arising due to increased gas prices from April 2023.

PRINCIPAL FUNDING

The principal income and funding streams for Magna Vitae were as follows: Service Fee from East Lindsey District Council; income from customers’ use of leisure venues and theatre income ticket sales; and grant income from Arts Council England and other grant funding bodies.

INVESTMENT POLICY

Magna Vitae’s investment policy is driven by four key factors:

Investments are restricted to:-

Investments are permitted in the following instruments:

A maximum of £500,000 is to be placed with any one bank/institution excluding day to day working capital accounts. Any figure above this amount requires the agreement of the Finance Sub-Group.

This policy is reviewed by the Finance Sub-Group and signed off by the Board of Trustees.

In 2022/23 the income from bank interest receivable amounted to £45,168.

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Structure, Governance and Management

CONSTITUTION

The Trust is a charitable company limited by guarantee, incorporated on 10th June 2014 and registered as a charity on 26th January 2015. East Lindsey District Council transferred its cultural and leisure services, comprising of sports facilities, arts activities and events, sports development and events, health improvement programmes and a theatre on 1st January 2015.

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

Magna Vitae operates, for an agreed service fee, certain culture, arts, recreational and sports activities on behalf of East Lindsey District Council, which leases to Magna Vitae buildings and other assets. The assets are provided at no charge to Magna Vitae on a 25 year lease/licence, which commenced on 1st January 2015 with the exception of Station Sports Centre that is on a 10 year lease. A new lease for the new Mablethorpe Station Leisure Centre will be entered into during 2023/24 and will be co-terminus with the other venue leases.

Magna Vitae is a company limited by guarantee and does not have share capital.

METHOD OF APPOINTMENT OF ELECTION OF TRUSTEES

As a limited company Magna Vitae is governed by its Members. There are two categories of Trustees: Community Trustees and Local Authority Trustees. During the year, the articles of association were amended to remove the requirement for an Employee Trustee. The Board of Trustees is fixed at a minimum of three and maximum of eleven, with Board composition consisting of up to two Local Authority Trustees, and up to nine Community Trustees, provided that the Community Trustees are at all times in the majority.

The Local Authority Trustees are selected and appointed by the local authority East Lindsey District Council for such period as the authority determines. Councillor Steve Kirk and Sarah Parkin resigned on 24 May 2023, with Councillors Sam Kemp and Robert Watson being appointed on the same date.

The Community Trustees are selected following a rigorous trustee recruitment process. A Community Trustee will be required to retire by rotation whereby one third of the Community Trustees shall be required to retire each year but will be eligible for reappointment. The Community Trustees required to retire will be those who have been longest in office or in the event of the Community Trustees serving the same period of office, those required to retire shall be determined by lot. The rotational retirement requirement for Community Trustees became effective from January 2018. In July 2022 Ashley Lidgard retired by rotation and was subsequently reappointed. During the year, Cate Atwater and Michelle Howard were appointed as new community trustees.

The requirement for an Employee Trustee was removed from Magna Vitae’s articles of association in the year. Ross Cameron was the Employee Trustee until April 2022. Links between the board of trustees and Magna Vitae were strengthened over the year via Staff Socials attended by the Chairman Peter Helps, and a trustee buddy system was developed and practically implemented for each venue/ service team/area.

Trustees are required to meet at least four times a year to review the management of the organisation. They employ managers to take on the day-to-day running of the activities.

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POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES

The induction process for Trustees includes an induction programme, supported by in-depth briefings from senior managers where required, and visits to our venues. Further training is arranged to meet the specific needs of individual Trustees.

PAY POLICY FOR SENIOR STAFF

Senior Leadership Team salaries are set strictly by the Board of Trustees. These are reviewed annually as part of the budget setting process, generally in January or April of each year. They were last reviewed in April 2023.

Trustees do not receive a salary, but are entitled to claim expenses for attending meetings or specific events.

ORGANISATIONAL STRUCTURE

The Trustees who served during the year and the Senior Leadership Team are listed on Page 2.

RELATED PARTIES

Trustees and the Senior Leadership Team members are asked to complete an annual Disclosure Statement to notify Magna Vitae of any involvement in any other organisations. This was most recently completed in May 2023.

A summary of transactions with related parties are set out in note 31 in the financial statements.

RISK MANAGEMENT

The Board of Trustees has overall responsibility for establishing and maintaining the whole system of internal control and reviewing its effectiveness.

The Trustees recognise that no system of internal control can provide absolute assurance against material misstatement or loss or eliminate all risk of failure to achieve the organisation’s objectives. The system of internal control is designed to manage key risks and to provide reasonable assurance that planned objectives and outcomes are achieved. This will also give reasonable assurance about the reliability of financial and operational information and the safeguarding of Magna Vitae’s assets and reputation. This approach includes the regular evaluation of the nature and extent of risks to which Magna Vitae is exposed.

The Board has developed a culture of strong corporate governance. Key elements of the control framework and the system for reviewing the effectiveness of the system of internal control are as follows:

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RISK REGISTER

The Trust’s Senior Leadership Team routinely documents, monitors and evaluates identified business risks through The Risk Register. This “live” document is reviewed quarterly by the Finance Subgroup who quantify financial impact of risk. Risks deemed to be extreme or high are reviewed at every board meeting and the whole risk register is reviewed annually.

PLANNING APPROVAL

Magna Vitae reviews new projects including identifying risks and controls. This combined with the budget process, which reviews risks and controls in existing processes, generates a comprehensive review of risks.

INTERNAL AUDIT

The Board together with the Senior Leadership Team reviews the major risks and assesses the effectiveness of controls in managing those risks. This includes setting an internal audit programme of activities to assess the effectiveness of controls. During the year a “back to basics” internal audit review was agreed by trustees – the audits themselves were undertaken at four venues in April 2023 by Forrester Boyd.

MONITORING AND CORRECTIVE ACTION

Financial reporting procedures include detailed budgets for the year ahead, detailed monthly management accounts, and longer-term financial plans used for strategic/business planning as part of the five year business plan. The Senior Leadership Team and wider Management Team review management accounts every month, and in depth performance monitoring also takes place at Quarterly Management Team away days. Reports are then considered and approved by the Trustees. Where objectives are not being met, the Senior Leadership Team report on actions being taken to correct performance, and these reports are also considered and approved by the Trustees.

Additionally, the Finance Sub-Group review in more depth the financial performance, forecasting, budgeting, business planning, audit reports and associated policies and procedures. The sub-group which consists of Community Trustees, the Executive Directors and the Director of Finance has Terms of Reference and reports regularly to the Board of Trustees.

22 magnavitae.org

HEALTH AND SAFETY Robust, corporately agreed & implemented policies, procedures & standards are vital to ensure the health, safety & welfare of employees, members of the public, customers, members & others, visiting MV sites and other service areas, including a variety of outreach work taking place in East Lindsey “inland conurbations”. Magna Vitae currently maintains a corporate H&S Manual, management system & implements a strict, annually planned, H&S and quality assurance/management (QUEST) auditing regime.

The H&S performance statistics included in this report are based on the last calendar year - January to December 2022. In part, the data is routinely compared with past performance & general comparative data taken from the previous calendar year, 2021.

The annual Magna Vitae “STITCH of the Nation” results compare very positively against the national benchmark data made available for 2022. Nb: Magna Vitae sites & service areas welcomed a total of 723,155 visits in 2022 compared to 246,855 in the previous twelve (12) months (note Covid recovery). The Magna Vitae 2022 accident to usage ratio was 0.01% compared to the national average of 0.10%. 87% of Magna Vitae accidents were uncontrollable in 2022 compared against a national average of 65%.

The total number of accidents recorded in 2022 = 93, compared to 51 in 2021. Representing an increase of 82% on the previous year. However, in this regard consideration must be given to the number of visits in relation to the number of accidents that occurred pre-Covid.

2022 – 723,155 visits = 93 Accidents = 0.012%. 2021 – 246,855 visits = 51 Accidents = 0.020%. 2019 – 922,704 visits = 162 Accidents = 0.017%.

Based on the data supplied above, it confirms that Magna Vitae’s H&S performance has slightly improved upon the previous year (2021) and also pre-pandemic levels.

As well as directly employing competently qualified and experienced senior managers, Magna Vitae’s commitment to Health and Safety establishes a positive health and safety culture throughout the workforce. Since inception in 2015, the Trust is supported by an annually retained external Health & Safety specialist consultancy (Right Directions Ltd). During 2022, Magna Vitae continued, for the eighth consecutive year, to invest and work in conjunction with Right Directions Ltd. This is a nationally renowned leisure industry consultancy, specializing in health & safety, quality assurance and environmental management support. Magna Vitae continues to annually invest approximately £10,000 - £12,000 in this service.

Right Directions Ltd provide Magna Vitae with expert advice (industry relevant updates) and support (includes access to 24/7 telephone advice support) to further develop, maintain & review the Magna Vitae H&S Manual and general management system(s). This also includes direct support with a variety of risk assessments, legislative changes, operational auditing and the STITCH accident/ incident monitoring management & control system.

More recently Magna Vitae has invested in another operational, digital system (MagNet) in collaboration with Right Directions. MagNet is a multi-functional, modular staff management, monitoring information system. MagNet provides one staff database referencing all employees, their job roles, locations they work and the workplace groups they form part of. Alongside this it forms a facilities database containing all locations, location staff, departments, and department administrators, all together this power the MagNet system and provides a one stop operational

23

reference library, comprehensively covering the work elements stated below:

MagNet has been designed to be an all-encompassing management information system, featuring multiple function applications all on one platform, and all powered by a single central database. One place for time, tasks, incidents, handovers, training, information, and communications, available to managers and staff anytime, anywhere, on any device and is having a positive impact on operations. This is gradually revolutionising operational management.

The continued, current level of investment made in these resources reflects the organization’s ongoing commitment and drive in developing a positive health & safety culture alongside Magna Vitae striving to continually improve its Health & Safety performance.

Health and Safety arrangements are also supported internally via a robust Health & Safety Working Group that meets quarterly with the meeting minutes being routinely submitted to the Magna Vitae Board of Trustees for update and information. These minutes, along with other supporting H&S performance data, are also circulated to ELDC (Client Contract Officer, PSPSL H&S Manager and ELDC / MV Working Group) as Magna Vitae’s main funding partner and landlord of the East Lindsey leisure venues presently operated / managed by Magna Vitae.

Magna Vitae’ health and safety performance data is routinely collated, monitored and analysed via the STITCH accident, incident and near miss reporting system. This data is also routinely provided to Board and ELDC for information; the data helps the trust benchmark health and safety performance internally (monthly) and nationally (quarterly & annually) against similar leisure facilities and services.

The Trust’s Senior Leadership Team (SLT) routinely documents, monitors and evaluates identified business risks through the update of its Risk Register. This “live” document is reviewed annually and shared with the Board of Trustees for update and information.

EQUALITY & DIVERSITY

Magna Vitae colleagues attend Community Leisure UK Equality, Diversity & Inclusion Special Interest Group quarterly, regular updates are communicated to managers and employees as necessary as well as HR team keeping up to date with legislation changes and sharing knowledge as appropriate.

Equality & Diversity mandatory training takes place with employees. The training is also mandatory for all new trustees as part of the existing trustees ongoing CPD programme.

24 magnavitae.org

TRUSTEES’ LIABILITY

Magna Vitae has indemnified the Trustees of Magna Vitae against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity provision was in force during the year.

None of the Trustees have any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of winding up.

FUTURE DEVELOPMENTS

The cost of living crisis and increased utility costs pose continuing challenges for our operations and customers as we are strive to continually improve the quality and value for money of the services we offer in our communities. Future developments will include improving our app and website, to improve customers’ online joining and booking experiences, and working with our strategic partner East Lindsey District Council to decarbonise our venues.

We are also excited to work with East Lindsey District Council on their development of the new Mablethorpe Leisure Centre, due to open in September 2024, and the Embassy Theatre Culture House.

A major focus for the coming year will be on staff development and wider community employability scheme developments.

EMPLOYEE INVOLVEMENT

We are committed to providing our employees with information about our activities, consulting with them on major changes and generally developing an open culture in the organisation. Regular meetings are held between managers and staff teams to allow free flow of information, and we hold team briefing and social sessions to update staff on strategy and other major developments on a regular basis.

We worked with TenSense during 2022/23 to engage with the workforce via an anonymous quarterly Employee Survey, a continued mechanism of allowing staff to be able to share their thoughts anonymously. The workforce is our most valued asset.

STAFF, VOLUNTEERS AND TRUSTEES

Finally, I would like to thank the staff, volunteers and Trustees of Magna Vitae for their undiminishing commitment, resolve and hard work throughout the past year.

25

TRUSTEES’ RESPONSIBILITIES STATEMENT

The Trustees, who are also the Directors of Magna Vitae for the purpose of company law, are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

In preparing these accounts, the Trustees are required to:

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

DISCLOSURE OF INFORMATION TO AUDITOR

Each of the Trustees has confirmed that:

This report was approved by the Trustees, on 4 October 2023 and signed on their behalf by:

Peter Helps, Chairman of Trustees

26 magnavitae.org

MAGNA V TAE TRUST FOR LEISURE & CULTURE Wood Lane Louth Lincolnshire LNII 8SA

MAGNA VITAE

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAGNA VITAE

Opinion

We have audited the financial statements of Magna Vitae (the 'trust') for the year ended 31 March 2023 which comprise the Statement of financial activities, the Balance sheet, the 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 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.

Page 28

(A company limited by guarantee)

MAGNA VITAE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAGNA VITAE (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 29

MAGNA VITAE

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAGNA VITAE (CONTINUED)

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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the trust’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Page 30

MAGNA VITAE

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAGNA VITAE (CONTINUED)

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Auditor's report.

Page 31

MAGNA VITAE

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MAGNA VITAE (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Robert Anderson (Senior statutory auditor)

for and on behalf of

Streets Audit LLP

Chartered Accountants & Statutory Auditor Tower House Lucy Tower Street Lincoln LN1 1XW

20 November 2023

Page 32

MAGNA VITAE

(A company limited by guarantee)

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

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net income/(expenditure) before net
gains on investments
Net gains on investments
16
Net income / (expenditure)
Transfers between funds
22
Net movement in funds before other
recognised gains/(losses)
Other recognised gains/(losses):
Actuarial gains on defined benefit
pension schemes
28
Defined benefit pension scheme asset
not recognised
28
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
185,481
5,886,162
1,622
75,294
6,148,559
40,353
5,759,590
5,799,943
348,616
100,000
448,616
(75,000)
373,616
4,489,000
(3,228,000)
1,634,616
120,433
1,634,616
1,755,049		 Restricted
funds
2023
£
7,847
266,425
-
-
274,272
-
523,754
523,754
(249,482)
-
(249,482)
75,000
(174,482)
-
-
(174,482)
262,915
(174,482)
88,433		 Total
funds
2023
£
193,328
6,152,587
1,622
75,294
6,422,831
40,353
6,283,344
6,323,697
99,134
100,000
199,134
-
199,134
4,489,000
(3,228,000)
1,460,134
383,348
1,460,134
1,843,482		 Total
funds
2022
£
220,825
5,327,217
70,440
1,922
5,620,404
103,554
5,307,185
5,410,739
209,665
-
209,665
-
209,665
1,854,000
-
2,063,665
(1,680,317)
2,063,665
383,348

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 37 to 68 form part of these financial statements.

Page 33

MAGNA VITAE (A company limited by guarantee) REGISTERED NUMBER: 09078400

BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
17
Investment property
16
Current assets
Stocks
18
Debtors
19
Investments
20
Cash at bank and in hand
Creditors: amounts falling due within one
year
21
Net current assets
Total assets less current liabilities
Net assets excluding pension asset /
liability
Defined benefit pension scheme asset /
liability
28
Total net assets		 25,349
137,173
1,294,520
2,313,140
3,770,182
(2,215,189)		 2023
£
28,994
9,494
1
250,000
288,489
1,554,993
1,843,482
1,843,482
-
1,843,482		 24,436
207,620
1,274,510
523,106
2,029,672
(900,670)		 2022
£
18,237
32,344
1
171,764
222,346
1,129,002
1,351,348
1,351,348
(968,000)
383,348

Page 34

MAGNA VITAE (A company limited by guarantee) REGISTERED NUMBER: 09078400

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023

Note
Trust funds
Restricted funds
22
Unrestricted funds
Unrestricted funds excluding pension
reserve
22
Pension reserve
22
Total unrestricted funds
22
Total funds		 1,755,049
-		 2023
£
88,433
1,755,049
1,843,482		 1,088,433
(968,000)		 2022
£
262,915
120,433
383,348

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 on 04 October 2023 and signed on their behalf by:

Peter Helps Chairman of Trustees

The notes on pages 37 to 68 form part of these financial statements.

Page 35

MAGNA VITAE

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Note
Cash flows from operating activities
Net cash provided by operating activities
25
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets
Purchase of intangible assets
Purchase of tangible fixed assets
Interest received
Rental income
Net cash withdrawn from / (placed in) investments
Net cash provided by/(used in) investing 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
26		 2023
£
1,773,825
-
(19,875)
(6,830)
32,798
30,126
(20,010)
16,209
1,790,034
523,106
2,313,140		 2022
£
734,235
5,750
-
-
1,922
-
(746,554)
(738,882)
(4,647)
527,753
523,106

The notes on pages 37 to 68 form part of these financial statements

Page 36

(A company limited by guarantee)

MAGNA VITAE

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

1. General information

Magna Vitae (the Trust) is a limited company by guarantee incorporated in England and Wales and a registered charity. The Trust's registered office is at Meridian Leisure Centre, Wood Lane, Louth, Lincolnshire, LN11 8SA . The Trust's principal activity is the operation of cultural and leisure facilities.

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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Magna Vitae 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.

2.2 Consolidation

These financial statements represent the figures of the Trust only. Consolidated financial statements have not been prepared on the basis that the subsidiary company is not material to the financial statements.

2.3 Going concern

The Trustees have reviewed its plans and forecasts and remain confident that the Trust will continue to maintain adequate resources to continue in operational existence for the foreseeable future.

The Trustees consider that it is appropriate to prepare the financial statements on the going concern basis.

2.4 Income

All income is recognised once the Trust 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 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.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Trust 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.

Page 37

MAGNA VITAE

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.5 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.

Expenditure on raising funds includes all expenditure incurred by the Trust to raise funds for its charitable purposes.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Trust's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Trust; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Intangible assets and amortisation

Intangible assets are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

Computer software - 5 years

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £5,000 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.

Page 38

MAGNA VITAE

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation (continued)

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.

The estimated useful lives range as follows:

Plant, machinery and fixtures - 3 - 6 years

2.9 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 Statement of financial activities.

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

2.10 Investment property

Investment property is initially recognised at cost and is subsequently measured at fair value at the balance sheet date. Revaluation gains or losses are shown in the heading gains / losses on investment property in the statement of financial activities incorporating income and expenditure account.

Investment property contains a balance in respect of cafe equipment which is initially recognised at cost and subsequently measured cost less an accumulated write-down. The write-down is charged so as to allocate the cost of the assets less their residual value over their estimated useful lives on a straight line basis. The estimated useful life of the assets is 2 years.

2.11 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.

2.12 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.

2.13 Cash at bank and in hand

Cash at bank and in hand represents cash held in bank current account and deposit account facilities that the Trust has instant access and cash floats.

Page 39

MAGNA VITAE

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.14 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 Trust 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.

2.15 Financial instruments

The Trust 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.

2.16 Pensions

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

The Trust operates a defined benefits pension scheme and the pension charge is based on an actuarial valuation dated 31 March 2023.

2.17 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 Trust and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Trust 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.

Investment income, gains and losses are allocated to the appropriate fund.

Page 40

(A company limited by guarantee)

MAGNA VITAE

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

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Intangible, tangible fixed assets and investment property are recognised at cost or valuation, less accumulated depreciation / amortisation and any impairment. Depreciation / amortisation takes place over the estimated useful life, down to the assessed residual value. The carrying amount of the Trust's fixed assets is tested as soon as changed conditions show that a need for impairment has arisen.

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 28, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2022 has been used by the actuary in valuing the pensions liability at 31 March 2023. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

4. Income from donations and legacies

Donations
Donated Services and Facilities
Donations
Donated Services and Facilities		 Unrestricted
funds
2023
£
231
185,250
185,481
Unrestricted
funds
2022
£
516
185,250
185,766		 Restricted
funds
2023
£
7,847
-
7,847
Restricted
funds
2022
£
35,059
-
35,059		 Total
funds
2023
£
8,078
185,250
193,328
Total
funds
2022
£
35,575
185,250
220,825

Page 41

MAGNA VITAE

(A company limited by guarantee)

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

5. Income from charitable activities

Culture
Health Improvement
Sports & Leisure
Theatre
Other
Culture
Health Improvement
Sports & Leisure
Theatre
Other		 Unrestricted
funds
2023
£
17,913
(1,760)
2,761,493
1,571,653
1,536,863
5,886,162
Unrestricted
funds
2022
£
47,282
44,876
1,960,610
713,668
1,549,108
4,315,544		 Restricted
funds
2023
£
219,657
-
44,368
400
2,000
266,425
Restricted
funds
2022
£
263,429
119,911
434,550
192,531
1,252
1,011,673		 Total
funds
2023
£
237,570
(1,760)
2,805,861
1,572,053
1,538,863
6,152,587
Total
funds
2022
£
310,711
164,787
2,395,160
906,199
1,550,360
5,327,217

Page 42

MAGNA VITAE

(A company limited by guarantee)

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

6. Income from other trading activities

Income from fundraising events

Cafe Income
Unrestricted
funds
2022
£
Cafe Income
65,438		 Unrestricted
funds
2023
£
1,622
Restricted
funds
2022
£
5,002		 Total
funds
2023
£
1,622
Total
funds
2022
£
70,440

7. Investment income

Rental Income
Bank Interest Receivable		 Unrestricted
funds
2023
£
30,126
45,168
75,294		 Total
funds
2023
£
30,126
45,168
75,294		 Total
funds
2022
£
-
1,922
1,922

Page 43

(A company limited by guarantee)

MAGNA VITAE

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

8. Expenditure on raising funds

Costs of raising voluntary income

Wages and Salaries
National Insurance
Pension Costs		 Unrestricted
funds
2023
£
7,725
852
2,505
11,082		 Total
funds
2023
£
7,725
852
2,505
11,082		 Total
funds
2022
£
7,500
806
2,364
10,670

Expenditure for activities for generating funds

Other Costs
Wages and Salaries
National Insurance
Depreciation		 Unrestricted
funds
2023
£
6,984
520
3
21,764
29,271		 Total
funds
2023
£
6,984
520
3
21,764
29,271		 Total
funds
2022
£
41,570
29,269
281
21,764
92,884

Page 44

MAGNA VITAE

(A company limited by guarantee)

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

9. Analysis of expenditure on charitable activities

Summary by fund type

Culture
Health Improvement
Sports & Leisure
Theatre
Other
Culture
Health Improvement
Sports & Leisure
Theatre
Other		 Unrestricted
funds
2023
£
139,654
261,111
3,658,343
1,700,482
-
5,759,590
Unrestricted
funds
2022
£
251,005
242,981
2,905,090
1,036,136
-
4,435,212		 Restricted
funds
2023
£
296,282
1,237
220,835
3,400
2,000
523,754
Restricted
funds
2022
£
268,204
88,479
305,591
208,447
1,252
871,973		 Total
2023
£
435,936
262,348
3,879,178
1,703,882
2,000
6,283,344
Total
2022
£
519,209
331,460
3,210,681
1,244,583
1,252
5,307,185

Page 45

MAGNA VITAE

(A company limited by guarantee)

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

10. Analysis of expenditure by activities

Culture
Health Improvement
Sports & Leisure
Theatre
Other		 Activities
undertaken
directly
2023
£
363,075
218,499
3,230,824
1,419,101
2,000
5,233,499		 Support
costs
2023
£
72,861
43,849
648,354
284,781
-
1,049,845		 Total
funds
2023
£
435,936
262,348
3,879,178
1,703,882
2,000
6,283,344
Culture
Health Improvement
Sports & Leisure
Theatre
Other		 Activities
undertaken
directly
2022
£
435,229
277,848
2,691,367
1,043,277
1,252
4,448,973		 Support
costs
2022
£
83,980
53,612
519,314
201,306
-
858,212		 Total
funds
2022
£
519,209
331,460
3,210,681
1,244,583
1,252
5,307,185

Page 46

MAGNA VITAE

(A company limited by guarantee)

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

10. Analysis of expenditure by activities (continued)

Analysis of direct costs

Pension Finance Cost
Staff Costs
Depreciation
Service Provision Costs
Goods for Resale
Performers and Entertainers
Other Employee Costs
Rent, Rates and Utilities
Repairs, Maintenance and Cleaning
Insurance
Travel Costs
Printing, Postage and Stationery
Advertising and Promotion
IT, Telephone and Internet
Other Costs
Bank Charges
Irrecoverable VAT		 Culture
2023
£
1,596
117,089
893
77,312
35
53,295
2,995
1,140
417
5,198
37,772
644
18,914
4,364
26,338
1,107
13,966
363,075		 Health
Improvement
2023
£
961
164,921
537
10,558
21
52
3,167
2,343
4,731
3,128
10,297
427
4,701
1,978
8,186
512
1,979
218,499		 Sports &
Leisure
2023
£
14,204
1,702,066
19,826
88,343
64,776
-
28,410
756,446
254,604
46,254
15,475
5,416
29,613
34,092
47,400
21,605
102,294
3,230,824		 Theatre
2023
£
6,239
357,757
10,713
44,368
73,993
533,600
10,588
118,859
19,634
21,787
4,683
5,712
17,524
29,881
38,232
21,882
103,649
1,419,101

Page 47

(A company limited by guarantee)

MAGNA VITAE

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

10. Analysis of expenditure by activities (continued)

Analysis of direct costs (continued)

Pension Finance Cost
Staff Costs
Depreciation
Service Provision Costs
Goods for Resale
Performers and Entertainers
Other Employee Costs
Rent, Rates and Utilities
Repairs, Maintenance and Cleaning
Insurance
Travel Costs
Printing, Postage and Stationery
Advertising and Promotion
IT, Telephone and Internet
Other Costs
Bank Charges
Irrecoverable VAT		 Other
2023
£
-
2,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,000		 Total
funds
2023
£
23,000
2,343,833
31,969
220,581
138,825
586,947
45,160
878,788
279,386
76,367
68,227
12,199
70,752
70,315
120,156
45,106
221,888
5,233,499

Page 48

MAGNA VITAE

(A company limited by guarantee)

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

10. Analysis of expenditure by activities (continued)

Analysis of direct costs (continued)

Pension Finance Cost
Staff Costs
Depreciation
Service Provision Costs
Goods for Resale
Performers and Entertainers
Other Employee Costs
Rent, Rates and Utilities
Repairs, Maintenance and Cleaning
Insurance
Travel Costs
Printing, Postage and Stationery
Advertising and Promotion
IT, Telephone and Internet
Other Costs
Bank Charges
Irrecoverable VAT		 Culture
2022
£
4,795
112,409
1,259
196,080
-
44,609
4,657
3,839
1,132
5,813
23,782
547
11,227
1,154
9,780
965
13,181
435,229		 Health
Improvement
2022
£
3,061
222,135
1,596
11,026
-
4,844
3,132
2,301
5,326
3,710
11,061
417
3,175
782
2,713
587
1,982
277,848		 Sports &
Leisure
2022
£
29,650
1,485,913
32,055
50,722
29,237
-
31,222
575,060
207,283
35,944
16,236
4,726
22,489
32,076
62,699
17,564
58,491
2,691,367		 Theatre
2022
£
11,494
356,353
11,922
20,145
39,134
321,866
10,711
100,348
57,307
13,933
3,402
4,212
25,966
7,642
26,501
30,130
2,211
1,043,277

Page 49

MAGNA VITAE

(A company limited by guarantee)

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

10. Analysis of expenditure by activities (continued)

Analysis of direct costs (continued)

Pension Finance Cost
Staff Costs
Depreciation
Service Provision Costs
Goods for Resale
Performers and Entertainers
Other Employee Costs
Rent, Rates and Utilities
Repairs, Maintenance and Cleaning
Insurance
Travel Costs
Printing, Postage and Stationery
Advertising and Promotion
IT, Telephone and Internet
Other Costs
Bank Charges
Irrecoverable VAT		 Other
2022
£
-
1,252
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,252		 Total
funds
2022
£
49,000
2,178,062
46,832
277,973
68,371
371,319
49,722
681,548
271,048
59,400
54,481
9,902
62,857
41,654
101,693
49,246
75,865
4,448,973

Page 50

MAGNA VITAE

(A company limited by guarantee)

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

10. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff Costs
Other Costs
Support Service Agreements
Governance Costs
Staff Costs
Other Costs
Support Service Agreements
Governance Costs		 Culture
2023
£
43,511
19,540
2,431
7,379
72,861
Culture
2022
£
47,097
22,666
4,092
10,125
83,980		 Health
Improvement
2023
£
26,185
11,760
1,463
4,441
43,849
Health
Improvement
2022
£
30,067
14,469
2,612
6,464
53,612		 Sports &
Leisure
2023
£
387,179
173,878
21,636
65,661
648,354
Sports &
Leisure
2022
£
291,236
140,166
25,302
62,610
519,314		 Theatre
2023
£
170,064
76,373
9,504
28,840
284,781
Theatre
2022
£
112,895
54,333
9,808
24,270
201,306		 Total
funds
2023
£
626,939
281,551
35,034
106,321
1,049,845
Total
funds
2022
£
481,295
231,634
41,814
103,469
858,212

11. Auditor's remuneration

2023 2022
£ £
Fees payable to the Trust's auditor for the audit of the Trust's annual
accounts 8,400 7,650

Page 51

(A company limited by guarantee)

MAGNA VITAE

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

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
Operating costs of defined benefit pension schemes		 2023
£
2,422,498
184,879
38,216
432,000
3,077,593		 2022
£
2,113,206
157,842
28,995
492,000
2,792,043

Wages and salaries above include a total of £nil (2022 - £19,670) relating to redundancy, PILON and other exit payments during the year.

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

Culture
Health Improvement
Sports & Leisure
Theatre
Management		 2023
No.
4
6
103
20
13
146		 2022
No.
4
11
76
15
13
119

The average headcount expressed as full-time equivalents was:

Culture
Health Improvement
Sports & Leisure
Theatre
Management		 2023
No.
3
5
65
12
13
98		 2022
No.
3
6
52
12
13
86

Page 52

MAGNA VITAE

(A company limited by guarantee)

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

12. Staff costs (continued)

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

2023 2022
No. No.
In the band £60,001 - £70,000 2 -
In the band £70,001 - £80,000 - 2
In the band £80,001 - £90,000 2 -

The key management personnel of the Trust comprise the Employee Trustee and the Senior Leadership Team as included in the Trustees Report. The total amount of employee benefits (including national insurance and employer pension contributions) received by key management personnel for their services to the Trust was £385,750 (2022 - £348,000).

13. Trustees' remuneration and expenses

The Employee Trustee received remuneration in the £0k - £5k (2022 - £25k - £30k) for the period they were a trustee. Retirement benefits accrued to the Employee Trustee during the current and previous year in respect of the defined benefit pension scheme.

Remuneration is received in respect of contracts of employment and not in respect of the role of Employee Trustee.

Other Trustees do not receive any remuneration from the Trust.

During the year ended 31 March 2023, expenses were reimbursed or paid directly to 2 Trustees (2022 - to 2 Trustees) broken down as follows:

Travel
Accommodation		 2023
£
300
111
411		 2022
£
260
-
260

Page 53

MAGNA VITAE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
14.
Intangible assets
Cost
At 1 April 2022
Additions
At 31 March 2023
Amortisation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Computer
software
£
45,593
19,875
65,468
27,356
9,118
36,474
28,994
18,237

Page 54

MAGNA VITAE

(A company limited by guarantee)

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

15. Tangible fixed assets

Cost or valuation
At 1 April 2022
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		 Plant,
machinery
and fixtures
£
265,897
265,897
233,553
22,850
256,403
9,494
32,344

16. Investment property

Valuation
At 1 April 2022
Surplus on revaluation
Write-down
At 31 March 2023		 Cafe
property
£
150,000
100,000
-
250,000		 Cafe
equipment
£
21,764
-
(21,764)
-		 Total
£
171,764
100,000
(21,764)
250,000

Cafe property was initially recorded at cost. The property has subsequently valued at fair value based on an independent valuation prepared by a suitably qualified third party as at 31 March 2023.

Cafe equipment has initially been recorded at cost and is being written down to its residual value over its useful economic life.

Page 55

MAGNA VITAE

(A company limited by guarantee)

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

17. Fixed asset investments

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

Principal subsidiaries

The following was a subsidiary undertaking of the Trust:

Name Company Principal activity Class of Holding
number shares
Magna Vitae Enterprises Limited 11788244 Dormant Ordinary 100%

As the subsidiary company is dormant, it has made neither a profit nor loss for the year ended 31 March 2023. Net assets at 31 March 2023 are £nil.

The registered office of the subsidiary company is the same as the Trust as disclosed on page 1.

18. Stocks

2023 2022
£ £
Finished goods and goods for resale 25,349 24,436

Page 56

(A company limited by guarantee)

MAGNA VITAE

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

19. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2023
£
39,041
2,750
95,382
137,173		 2022
£
33,112
32,941
141,567
207,620

20. Current asset investments

Cash investments in notice accounts
Creditors: Amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 April
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 March		 2023
£
1,294,520
2023
£
177,016
177,125
13,511
1,847,537
2,215,189
2023
£
442,688
1,600,188
(410,819)
1,632,057		 2022
£
1,274,510
2022
£
167,302
38,851
13,021
681,496
900,670
2022
£
487,732
350,664
(395,708)
442,688

21. Creditors: Amounts falling due within one year

Deferred income represents Grants and Other Income Received in Advance, Box Office Ticket Sales in Advance of Shows and Unspent Gift Vouchers. Deferred income also includes 50% of the 2023/24 service fee which has been invoiced and received in advance.

Page 57

MAGNA VITAE

(A company limited by guarantee)

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

22. Statement of funds

Statement of funds - current year

Unrestricted
Funds
Designated
Funds
Cultural and
Wellbeing
Projects
General Funds
Reserves
Pension
Reserve
Total
Unrestricted
Funds
Restricted
Funds
SO Festival
Theatre Grants
and Donations
Cultural / Health
Improvement
Projects
Sports Projects
Other
National
Leisure
Recovery Fund
Total of Funds		 Balance at 1
April 2022
£
50,000
1,038,433
(968,000)
120,433
18,841
52,080
5,521
10,006
-
176,467
262,915
383,348		 Income
£
-
6,148,559
-
6,148,559
152,760
7,238
67,906
44,368
2,000
-
274,272
6,422,831		 Expenditure
£
-
(5,506,943)
(293,000)
(5,799,943)
(263,660)
(3,400)
(33,859)
(44,368)
(2,000)
(176,467)
(523,754)
(6,323,697)		 Transfers
in/out
£
-
(75,000)
-
(75,000)
110,900
-
(35,900)
-
-
-
75,000
-		 Gains/
(Losses)
£
-
100,000
1,261,000
1,361,000
-
-
-
-
-
-
-
1,361,000		 Balance at
31 March
2023
£
50,000
1,705,049
-
1,755,049
18,841
55,918
3,668
10,006
-
-
88,433
1,843,482

Page 58

(A company limited by guarantee)

MAGNA VITAE

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

22. Statement of funds (continued)

Unrestricted Funds:

General Funds

General Funds are those funds not designated towards any project in particular and can be used towards any of the Trust's objectives.

At the year-end, the Trustees have designated £50,000 for cultural and wellbeing projects where the operational budgets may be insufficient or for the match-funding of any new projects.

Pension Reserve

The Pension Reserve represents the year-end balance on the Trust's pension scheme.

Any deficit is not an immediately crystalising liability and contributions have and will be made in line with the actuary's recommendations. East Lindsey District Council continues to act as a guarantor.

Material Restricted Funds:

SO Festival

SO Festival represents incoming resources (including specific funding from Arts Council England totalling £152,760) received to put on the annual SO Festival in August / September each year.

Theatre Grants and Donations

Theatre Grants and Donations represents grants and donations received towards Big Screen development and theatre recovery following the pandemic.

Cultural / Health Improvement Projects

This includes funding from Without Walls and Lincolnshire Coastal Destination BID which have been applied to the SO Festival. This also includes funding in relation to the People Power Partnership.

Sports Projects

This includes funding from Lincolnshire County Council in relation to the Holiday Activities and Food (HAF) Programme.

National Leisure Recovery Fund

The National Leisure Recovery Fund is a grant to support the recovery of leisure facilities following the lifting of pandemic restrictions.

Page 59

(A company limited by guarantee)

MAGNA VITAE

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

22. Statement of funds (continued)

Statement of funds - prior year

Unrestricted Funds
Designated Funds
Cultural and Wellbeing
Projects
General Funds
Reserves
Pension Reserve
Total Unrestricted Funds
Restricted Funds
SO Festival
Theatre Grants and Donations
Cultural / Health Improvement
Projects
Sports Projects
Other
COVID Support
Cultural Recovery Fund
National Leisure Recovery
Fund
Total of Funds		 Balance at
1 April 2021
£
50,000
641,529
(2,455,000)
(1,763,471)
18,841
35,492
18,815
10,006
-
-
-
-
83,154
(1,680,317)		 Income
£
-
4,568,670
-
4,568,670
152,760
34,002
180,144
10,000
65,643
145,061
159,557
304,567
1,051,734
5,620,404		 Expenditure
£
-
(4,171,766)
(367,000)
(4,538,766)
(152,760)
(17,414)
(193,438)
(10,000)
(65,643)
(145,061)
(159,557)
(128,100)
(871,973)
(5,410,739)		 Gains/
(Losses)
£
-
-
1,854,000
1,854,000
-
-
-
-
-
-
-
-
-
1,854,000		 Balance at
31 March
2022
£
50,000
1,038,433
(968,000)
120,433
18,841
52,080
5,521
10,006
-
-
-
176,467
262,915
383,348

Page 60

MAGNA VITAE

(A company limited by guarantee)

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

23. Summary of funds

Summary of funds - current year

Balance at
Balance at 1 Transfers Gains/ 31 March
April 2022 Income Expenditure in/out (Losses) 2023
£ £ £ £ £ £
Designated
funds 50,000 - - - - 50,000
General funds 70,433 6,148,559 (5,799,943) (75,000) 1,361,000 1,705,049
Restricted
funds 262,915 274,272 (523,754) 75,000 - 88,433
383,348 6,422,831 (6,323,697) - 1,361,000 1,843,482
Summary of funds - prior year
Balance at
Balance at Gains/ 31 March
1 April 2021 Income Expenditure (Losses) 2022
£ £ £ £ £
Designated funds 50,000 - - - 50,000
General funds (1,813,471) 4,568,670 (4,538,766) 1,854,000 70,433
Restricted funds 83,154 1,051,734 (871,973) - 262,915
(1,680,317) 5,620,404 (5,410,739) 1,854,000 383,348

Page 61

MAGNA VITAE

(A company limited by guarantee)

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

24. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Investment property
Current assets
Creditors due within one year
Total
Analysis of net assets between funds - prior year
Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Investment property
Current assets
Creditors due within one year
Provisions for liabilities and charges
Total		 Unrestricted
funds
2023
£
9,494
28,994
1
250,000
3,681,749
(2,215,189)
1,755,049
Unrestricted
funds
2022
£
32,344
18,237
1
171,764
1,766,757
(900,670)
(968,000)
120,433		 Restricted
funds
2023
£
-
-
-
-
88,433
-
88,433
Restricted
funds
2022
£
-
-
-
-
262,915
-
-
262,915		 Total
funds
2023
£
9,494
28,994
1
250,000
3,770,182
(2,215,189)
1,843,482
Total
funds
2022
£
32,344
18,237
1
171,764
2,029,672
(900,670)
(968,000)
383,348

Page 62

MAGNA VITAE

(A company limited by guarantee)

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

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

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Amortisation charges
Write down of other investment assets
Investment income
Loss/(profit) on the sale of fixed assets
Increase in stocks
Decrease in debtors
Increase in creditors
Pension scheme FRS102 actuarial adjustments
Gain on revaluation of investment property
Net cash provided by operating activities
26.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
27.
Analysis of changes in net debt
At 1 April
2022
£
Cash at bank and in hand
523,106
Liquid investments
1,274,510		 2023
£
199,134
22,850
9,118
21,764
(75,294)
-
(913)
82,817
1,321,349
293,000
(100,000)
1,773,825
2023
£
2,313,140
2,313,140
Cash flows
£
1,790,034
20,010		 2022
£
209,665
37,713
9,119
21,764
(1,922)
(953)
(8,376)
33,495
66,730
367,000
-
734,235
2022
£
523,106
523,106
At 31 March
2023
£
2,313,140
1,294,520

Page 63

(A company limited by guarantee)

MAGNA VITAE

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

28. Pension commitments

The Trust operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Trust in an independently administered fund. The pension cost charge represents contributions payable by the Trust to the fund and amounted to £38,149 (2022 - £29,415). Total contributions amounting to £9,020 (2022 - £8,156) were payable to the fund at the balance sheet date which is included in other creditors.

The Trust operates a defined benefit pension scheme.

The Trust's employees belong to the Local Government Pension Scheme (LGPS), which is managed by Lincolnshire County Council. The pension costs are assessed in accordance with the advice of independent qualified actuaries. The LGPS is subject to a triennial valuation.

The LGPS is a funded defined benefit scheme, with assets held in separate trustee-administered funds. Details of the total contributions during the year are given in the analysis below. The latest tri-ennual valuation was undertaken to 31 March 2022 which set the agreed contribution rate for the 3 years commencing 1 April 2023 at 10.0% for the Trust. Employee contributions remain at various levels based on bandings with a maximum of 12.5%.

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

At 31 March At 31 March
2023 2022
% %
Discount Rate 4.80 2.55
Salary Increase Rate 3.90 1.00
Pension Increase Rate 2.90 3.05
At 31 March At 31 March
2023 2022
Years Years
Mortality rates (in years)
- for a male aged 65 now 19.8 21.2
- at 65 for a male aged 45 now 21.1 22.1
- for a female aged 65 now 22.9 23.7
- at 65 for a female aged 45 now 24.4 25.1

Page 64

(A company limited by guarantee)

MAGNA VITAE

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

28. Pension commitments (continued)

Sensitivity analysis

At 31 March At 31 March
2023 2022
£ £
Discount rate +0.1% (173,000) (350,000)
Discount rate -0.1% 179,000 361,000
Mortality assumption - 1 year increase 209,000 443,000
Mortality assumption - 1 year decrease (203,000) (426,000)
CPI rate +0.1% 167,000 302,000
CPI rate -0.1% (161,000) (292,000)

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

Equities
Bonds
Property
Cash / Temporary Investments
Infrastructure
Absolute Return Fund
Total fair value of assets		 At 31 March
2023
£
5,831,000
1,381,000
787,000
333,000
394,000
1,715,000
10,441,000		 At 31 March
2022
£
7,540,000
1,323,000
1,150,000
411,000
-
-
10,424,000

The actual return on scheme assets was £(108,000) (2022 - £1,010,000) .

The amounts recognised in the Statement of financial activities are as follows:

Current service cost
Past service cost
Interest income
Interest cost
Administrative expenses
Total amount recognised in the Statement of financial activities		 2023
£
432,000
-
(267,000)
290,000
8,000
463,000		 2022
£
490,000
2,000
(193,000)
242,000
7,000
548,000

Page 65

(A company limited by guarantee)

MAGNA VITAE

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

28. Pension commitments (continued)

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

Opening defined benefit obligation
Current service cost
Interest cost on defined benefit obligation
Contributions by scheme participants
Changes in assumptions
Benefits paid
Past service costs
Closing defined benefit obligation
Movements in the fair value of the Trust's share of scheme assets were as follows:
Opening fair value of scheme assets
Interest income on plan assets
Return on assets less interest and other actuarial gains / (losses)
Contributions by employer
Contributions by scheme participants
Benefits paid
Administration expenses
Closing fair value of scheme assets		 2023
£
11,392,000
432,000
290,000
71,000
(4,864,000)
(108,000)
-
7,213,000
2023
£
10,424,000
267,000
(375,000)
170,000
71,000
(108,000)
(8,000)
10,441,000

The actuarial report valued a pension scheme surplus of £3,228,000 as set out by the disclosures above. This balance has not been recognised on the basis that the balance is not deemed to be recoverable through reduced contributions in the future or through refunds from the plan.

Page 66

MAGNA VITAE

(A company limited by guarantee)

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

29. Operating lease commitments

At 31 March 2023 the Trust had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 2023
£
70,000
280,000
822,740
1,172,740		 2022
£
70,000
280,000
892,740
1,242,740

The following lease payments have been recognised as an expense in the Statement of financial activities:

2023 2022
£ £
Operating lease rentals 70,000 70,000

30. 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 67

(A company limited by guarantee)

MAGNA VITAE

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

31. Related party transactions

The following transactions and balances have been undertaken whcih require disclosure in line with the requirements of the Charities SORP:

Magna Vitae Enterprises Limited:

Magna Vitae Enterprises Limited is a wholly owned subsidiary of Magna Vitae. Magna Vitae Enterprises Limited is a dormant company.

The balance previously outstanding was written off during the year and associated provision released. The balance outstanding at the year-end is £nil (2022 - £11,031 with an associated provision of £11,031).

Trustees:

A R Lidgard has significant influence and control over Brackenborough Limited. During the year, the company provided hospitality services at a cost of £697 (2022 - £3,978). There was no balance outstanding at either year-end.

Key Management Personnel:

The spouse of James Brindle runs First Cricket. During the year, the club was invoiced for hire costs of £1,801 (2022 - £2,072). The balance outstanding at the year was £302 (2022 - £769) which is included in trade debtors.

James Brindle is a part owner of Greenwich House School. During the year, the school was invoiced for swimming lessons of £1,068 (2022 - £986). There was no balance outstanding at either year-end.

Page 68