Charity Registration No. 1160374 (England and Walasl Charity Registration No. SC048193 (Scotlandl COMMUNITY LEISURE SERVICES PARTNERSHIP ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 COMMUNITY LEISURE SERVICES PARTNERSHIP LEGAL AND ADMINISTRATIVE INFORMATION Trustees J Beavis T Richardson H Braband Charity number (England and Wales) 1160374 Charity number Iscotlandl SC048193 Principal address 43 Slickle Down Deepcut Surrey GU16 6GB Auditor Alliolls LLP Friary Court 13-21 High Street Guildford Surrey GU1 3DL COMMUNITY LEISURE SERVICES PARTNERSHIP CONTENTS Page Trustees, report Slalemenl of Iruslees. responsibilities Independent auditor's report Slalemenl of financial activities Balance sheet 10 Slalemenl of cash flows Notes to the financial statements 12-21 COMMUNITY LEISURE SERVICES PARTNERSHIP TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2021 The trustees present their report and financial slalemenls for the year ended 31 March 2021. The accounts have been prepared in accordance with the accounting policies sel out in note 1 to the accounts and comply with the charity's con51ilution, the Charities Act 2011 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accoLJnts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 Jan uary 20151" Objective8 and activities The charity's objects, per ils constitution document, are.. A. To provide or assist in the provision of facilities and ServI￿S for the public benefit for recreational, sporting or other leisure time occupation in the interests of social welfare, health improvement, community development andlor B. To promote community participation in healthy activity andlor C. To advan￿ the education of the public in the benefit of healthy lifestyles andlor D. To advance the arts, cultLJre and heritage andlor E. Such other charitable purposes beneficial to the community consistent with the objects above as the trustees shall in their absolute discretion determine. The charity operated eight health clubs during the year. The trustees have paid due regard lo guidance issued by the ChaTily Commission in the area of public benefit. Achievements and performance From March 2020, clubs were shut in acwrdance with Covid-19 regulations, re-opening when allowed with a number re-closing due to local regulations. This obviously impacted significantly on our ability lo deliver services. The Charity did, however, continue to deliver high quality services al ils 8 health clubs in Croydon, Liverpool 121, Redditch, Scarborough, Aylesbury, Chandlers Ford and Cupar when they re-opened and whilst slow, membership numbers gradually grew. Flnanclal revlew It is the policy of the charity that unreslricled funds should be maintained at a level equivalent lo be￿een three- and six-monlhs expenditure. The trustees consider our reserves will be severely impacted by the Coronavirus pandemic. The charity expects lo be able to continue its current activities, bul the Trustees will carefully monitor the financial position and tske appropriate, difficult decisions where necessary. Al the year end the Charity had no restricted or unrestricted reserves and a deficit of £130,182, due to the impact of the coronavirus pandemic. The charity had sufficient cash levels al the year end, of £83,672, to be able to operate in the short term and due to the decision of the largest creditor to defer receipt for p8ymenl of monies owed during the year, the charity has resources lo be able lo continue as a Going Concern for the foreseeable future. COMMUNITY LEISURE SERVICES PARTNERSHIP TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place lo miligale the risks arising from the Coronavirus pandemic. Structure. governance and management The charity is a Charitable Incorporated Organisation ICIOI. The charity is governed by a constitLJtion with the charity Iruslees as the only voting members. If the CIO is wound up, the members of the CIO have no liability to contribute lo its assets and no personal respon5ibilily for sellling ils debts and lisbililies. The trustees who served during the year and up to the dale of signature of the financial statements were.. J Beavis T Richardson H Braband In selecting individual trustees for appointment, the charity trustees must have regard for the skills. knowledge and experience needed for the effective administration of the CIO. The company's current policy concerning the payment of trade creditors is lo.. settle the letms of payment with suppliers when agreeing the letms of each Iransaclion", ensure that suppliers are made aware of the terms of payment by Inclusion of the relevant terms in contracts," and pay In accordan￿ with the company's conlraclual and other legal obligab'ons. The Charity's Company Secretary, Clare Kennedy. oversees the duties and day lo day management of the charity's work. Ms Kennedy is responsible for of the charity's banking and contractual relationships, reports to the trustees regularfy and coordinates the trustee meetings. No preferen￿ dividends were paid. The directors do not recommend payment of a final dividend. Appointment of new trustees follows appropriate advertising. Suitable applicants will be invited lo meet with a trustee & Company Secretary. Suitable candidates will then be invited to attend a trustee meeting as an observer and will receive further information regarding the role of being a trustee. Appointment will then follow a successful interview. The charity does not use exlem81 professional fundraisers. We ensure any fundraising is legal, open, honest and respecttul., there have been no complaints about our fundraising aclivilies. COMMUNITY LEISURE SERVICES PARTNERSHIP TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 The Board of Trustees are cognizant of the Charity Commission's advice on reporting on how the Coronavirus Pandemic has impacted on the charity's perf0rnan￿ and operation. How the virus control measures affected the charity's activities All 8 health clubs were shut from 23 March 2020 as required by the Government. Signrficant reductions in membership was noti￿able when clubs re-opened but numbers did begin a good recovery which has ¢ontinued into 202112022. Explain any financial uncertainties regarding financial sustainability and going concern The health clubs operate on light margins to ensure their a¢￿$$1b111fy and affordability lo the public. The uncertainty of when clubs could re-open and thus begin to recover the lost income whilst still having to pay fixed costs made forecasting very difficLJIt. In addition, our clubs in Liverpool were subject to local closure rules and Cupar was subject lo a longer restriction on re-opening, both of which had significant impact. How the contribution of any volunteers assisted in managing in the changed circumstances The Trustees. all volunteers. were involved in the strategic decisions relating to the clubs, closurels, ongoing maintenance, fudough decisions and preparations for r&opening and operating the clubs in a Covid safe manner lo protect members and staff. The irnpact on the charity's ability to fundraise The charity does not fundraise through grants or donations bul through the fees paid for health club services. All members were wrillen lo and informed that memberships had been frozen, and no direct debits were drawn down until the clubs re-opened. Several members chose to cancel both during and soon after the health clubs re-opened but membership sales have been possible but the continued uncertainty 8nd location of some clubs in areas were positive cases continued lo rise negatively affected the charity's recovery. How the outbreak of the virus has affected staff, volunteers and beneficiaries and the implications for the charity's operations and activities Members were unable to access facilities and thus all memberships were frozen during the periodls of closure. The principal risks and uncertainties facing the charity during the reporting period The lack of ￿rtaInty over a re-opening date coupled with the burden of fixed costs such as Rent has made il diffi'cult lo predict an eventual outcome, but the Board of Trustees have discussed contingency plans in the evenlualily of further closures,. nationally or locally. Any impact on the charity's re8eNe8 policy The Iruslees have noted that reserves are severely impacted in order lo sustain cash flow with income being severely degraded. Impact on tha future aims and activities of the charity The impact of the Coronavirus control measures will prevent any support of local community projects designed to encourage greater participation in healthy, active Iifeslyles,. particularly amongst young people for the foreseeable future. 11 also had significant impact on investment in the facilities in the short term. The trustees, report was approved by the Board of Trustees. T Richardson, Trustee 15th Feb, 2022 Dated. COMMUNITY LEISURE SERVICES PARTNERSHIP STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2021 The trustees are responsible for preparing the Trustees. Report and the accounts in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice). The law applicable lo Charities in England and Wales requires the Iruslees 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 ￿sOUrceS and application of resources of the charity for that year. In preparing these accounts, the trustees are required to.. select suitsble accounting policies and then apply them consislenlly., obseNe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., slate whether applicable accounting stsndards have been followed, subject lo any material departures disclosed and explained in the accounts,. and prepare the accounts on the going con￿rn basis unless il is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping SLJfficient accounting records that disclose with reasonable accuracy al any lime the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity IAccounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities. COMMUNITY LEISURE SERVICES PARTNERSHIP INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF COMMUNITY LEISURE SERVICES PARTNERSHIP Opinion We have audited the financial slalemenls of Community Leisure Services Partnership Ithe 'charity'l for the year ended 31 March 2021 which comprise the statement of financial activities. the balance sheet, the stslement of cash flows and the notes lo the financial ststemenls, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financi&l Reporting Standard applicable in the UK and Republic of Ireland Iuniled Kingdom Generally Accepted Accounting Practi￿1. In our opinion, the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared In accordance with the requirements of the Charities Act 2011, the Charities and Trustee Investment (Scollandl Act 2005 and regulation 8 of the Charities Accounts (S￿lIand) Regulations 2006 las amended). Basis for opinion We conducted our audit in accordan￿ with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those stsndards are further described in the Audilorts responsibilities for the audit of the finsncial slslemenls section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial slalemenls In the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden￿ we have obtained is sufficient and appropriate to provide a basis for our opinion. Material uncertainty related to going concern We draw your attention to Note 1.2 to the Financial Slalemenls in relation to the current year's results, cashflow and future budgets. The budget forecast for 21122 continues lo show a deficit position, however the budget for 22123 shows a sm811 surplus is forecast lo be made and an improved cashflow. This, however, does not include plans or repayments factored into the cashflow lo be able to repay a significant long temi creditor balanTr and the recovery from ¢ovid-19 is slower than expected, giving rise lo the material uncertainly. The Trustees h8ve prepared fore¢asts that indicate the Charity can continue to pay ils debts as they fall due and the long-lerm creditor has confirmed they are willing lo continue lo support the charity. Thus, the Trustees Continue lo adopt the going concern basis of accounting in preparing the financial slalemenls. Our opinion is not modified in this respect. Conclusions relating to going concern In auditing the financial slalemenls, we have concluded that the Iruslees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfonred, we have identified the material uncertainty above. We have not identified any further events or conditions that, individually or collectively, may cast Signifi￿nI doubt on the charity's ability to continue as a going con￿rn 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 con￿rn are described in the relevant sections of this report. COMMUNITY LEISURE SERVICES PARTNERSHIP INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF COMMUNITY LEISURE SERVICES PARTNERSHIP Other infomiation The other information comprises the infomiation included in the annual report other than the financial statements and our auditor's report thereon. The Iruslees are responsible for the other information contsined within the annual report. Our opinion on the financial statements d￿S not cover the other information and we not express any form of assurance conclusion Ihereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsislenl with the financial slalemenls or our knowledge obtained In the course of the audit, or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misslalemenls, we are required lo determine whether this gives rise lo a material misststemenl in the financial statements themselves. If, based on the work we have perfomied, we conclude that there is a material misslalemenl of this other Information, we are required lo report that fact. We have nothing lo report in this regard. Matt&rs on which we are required to report by oxception We have nothing to report in respect of the following matters in relation to which the Charities IA¢wunts and Reports) Regulations 2008 and the Charities Accounts (Scollandl Regulations 200618s amended) require us to report to you if, in our opinion.. the infomalion given in the financial ststements is inconsistent in any material respect with the ttustees, report., or sufficient and proper accounting records have not been kept,. or the financial statements are not in agreement with the accounting rewrds.. or we have not received all the information and explanations we require for our audit. Rgspon$ibilitle$ of trust¢es As explained more fully in the slalemenl of trustees, responsibilities, the Iruslees are responsible for the preparation of the financial ststemenls 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 misslalement, whether due lo fraud or error. In preparing the financi81 statements, the trustees are responsible for assessing the charity's ability to continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Iruslees either intend to cease operations, or have no realistic alletnative bul to do so. Auditorfs re8ponsibilitie$ for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and section 4411 Ilcl of the Charities and Trustee Investment (Scotlandl Act 2005 and report in a¢wrdan¢e with the Acts and relevant regulations made or having effect thereunder. Our objectives are lo 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 bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when il exists. Misslalemenls can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expe¢led lo influence the economic decisions of users taken on the basis of these financi81 statements. Irregularities, including fraud, are Instsn￿s of non-complian￿ with laws and regulations. We design procedures in line with our responsibilities, outlined above. lo delecl material misstatements in respect of irregularities, including fraud. The exlenl lo which our procedures are capable of delecling irregularities, including fraud, is detailed below. COMMUNITY LEISURE SERVICES PARTNERSHIP INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF COMMUNITY LEISURE SERVICES PARTNERSHIP Extent to which the audit was considered capable of detecting irregularities, including fraud Our approach lo identifying and assessing the risks of material misslalemenl in respect of irregularities. including fraud and non-compliance with laws and regulations, was as follows. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non