## **Charity registration number 1160374 (England and Wales)**
**Charity registration number SC048193 (Scotland)**
# **COMMUNITY LEISURE SERVICES PARTNERSHIP ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** J Beavis T Richardson H Braband Charity number (England and Wales) 1160374 Charity number (Scotland) SC048193 **Principal address** 43 Stickle Down Deepcut Surrey GU16 6GB
## **Auditor**
Alliotts LLP Friary Court 13-21 High Street Guildford Surrey GU1 3DL
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Statement of trustees' responsibilities|3|
|Independent auditor's report|4 - 7|
|Statement of financial activities|8|
|Balance sheet|9|
|Statement of cash flows|10|
|Notes to the financial statements|11 - 20|
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **TRUSTEES' REPORT** _**FOR THE YEAR ENDED 31 MARCH 2022**_
The trustees present their annual report and financial statements for the year ended 31 March 2022.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's constitution, the Charities Act 2011 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)”
## **Objectives and activities**
- The charity's objects are:
- A. To provide or assist in the provision of facilities and services for the public benefit for recreational, sporting or other leisure time occupation in the interests of social welfare, health improvement, community development and/or
- B. To promote community participation in healthy activity and/or
- C. To advance the education of the public in the benefit of healthy lifestyles and/or
- D. To advance the arts, culture and heritage and/or
- E. Such other charitable purposes beneficial to the community consistent with the objects above as the trustees shall in their absolute discretion determine.
The trustees have paid due regard to guidance issued by the Charity Commission in the area of public benefit.
## **Achievements and performance**
The membership recovery from Covid lockdowns during the year has been variable but we continue to deliver high-quality services at 9 health clubs in Croydon, Liverpool (2), Redditch, Scarborough, Aylesbury, Chandlers Ford, Bridlington, and Cupar.
## **Financial review**
It is the policy of the charity that unrestricted funds should be available for charitable purposes, however, the financial impact of the pandemic has continued to affect cash flow and funds continue to be retained. The Trustees will carefully monitor the financial position and take appropriate decisions when necessary.
At the year-end, the charity had no restricted or unrestricted reserves and a deficit of £176,947.
As the biggest creditor has not pursued payment of monies owed during the year, the charity had sufficient cash at the year-end, of £119,854, to be able to operate.
The trustees have assessed the risks to which the charity is exposed and are satisfied that systems are in place to mitigate the challenges arising from the residual impact of the lockdowns and the cost of the living crisis now facing the country.
- 1 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **Structure, governance and management**
The charity is a Charitable Incorporated Organisation (CIO). The charity is governed by a constitution with the charity trustees as the only voting members.
If the CIO is wound up, the members of the CIO have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.
The trustees who served during the year and up to the date 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 to:
- settle the terms of payment with suppliers when agreeing the terms of each transaction;
- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
- pay in accordance with the company's contractual and other legal obligations.
The charity’s Company Secretary, Clare Kennedy, oversees the duties and day to day management of the charity’s work. Ms. Kennedy is responsible for of the charity's banking and contractual relationships, reports to the trustees regularly and coordinates the trustee meetings.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
The trustees' report was approved by the Board of Trustees.
..............................
**T Richardson**
Trustee 24th Jan 2023 Dated: .........................
- 2 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
The trustees 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).
The law applicable to charities in England and Wales 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 of the charity for that year.
In preparing these accounts, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient 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 Charities Act 2011, the Charity (Accounts 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 taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 3 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **Opinion**
We have audited the financial statements of Community Leisure Services Partnership (the ‘charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2022 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 (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
## **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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and 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.
## **Material uncertainty related to going concern**
We draw your attention to Note 1.2 to the Financial Statements in relation to the current year’s results, cashflow and future budgets. The budget forecast for 22/23 continues to show a deficit position, however the budget for 23/24 shows a small surplus is forecast to be made and an improved cashflow. This, however, does not include plans or repayments factored into the cashflow to be able to repay a significant long term creditor balance and the recovery from covid-19 is slower than expected, giving rise to the material uncertainty.
The Trustees have prepared forecasts that indicate the charity can continue to pay its debts as they fall due and the long-term creditor has confirmed they are willing to continue to support the charity. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. Our opinion is not modified in this respect.
## **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 identified the material uncertainty above. We have not identified any further events or conditions that, individually or collectively, may cast significant doubt on the charity’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.
- 4 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **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 we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient and proper accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’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 cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.
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## **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 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:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the charity through discussions with Trustees and other management, and from our knowledge and experience of the sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act 2011, the Charities SORP 2019 and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
## **Audit response to risks identified**
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- reviewed all transactions listed;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation; and
- enquiring of management as to actual and potential litigation and claims.
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 is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
- 6 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **Use of our report**
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and the Christies Accounts (Scotland) Regulations 2006 (as amended). Our audit work has been undertaken so that we might state to the charity's Trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
**Alliotts LLP**
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.........................
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**Chartered Accountants Statutory Auditor**
Friary Court 13-21 High Street Guildford Surrey GU1 3DL
Alliotts LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
- 7 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|||**Unrestricted Unrestricted**|**Unrestricted Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2022**|**2021**|
||**Notes**|**£**|**£**|
|**Income and endowments from:**||||
|Donations and legacies|**3**|263,259|820,272|
|Charitable activities|**4**|2,123,055|698,678|
|Other trading activities|**5**|26,091|5,925|
|Other income|**6**|3,708|-|
|**Total income**||2,416,113|1,524,875|
|**Expenditure on:**||||
|Raising funds|**7**|42,687|14,226|
|Charitable activities|**8**|2,420,191|1,698,751|
|**Total expenditure**||2,462,878|1,712,977|
|**Net expenditure for the year/**||||
|**Net movement in funds**||(46,765)|(188,102)|
|Fund balances at 1 April 2021||(130,182)|57,920|
|**Fund balances at 31 March 2022**||(176,947)|(130,182)|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 8 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2022**_
|||**2022**||**2021**||
|---|---|---|---|---|---|
||**Notes**|**£**|**£**|**£**|**£**|
|**Fixed assets**||||||
|Tangible assets|**12**||7,630||31,913|
|**Current assets**||||||
|Debtors|**13**|209,410||123,753||
|Cash at bank and in hand||119,854||83,672||
|||329,264||207,425||
|**Creditors: amounts falling due within**||||||
|**one year**|**15**|(470,608)||(320,880)||
|Net current liabilities|||(141,344)||(113,455)|
|**Total assets less current liabilities**|||(133,714)||(81,542)|
|**Creditors: amounts falling due after**||||||
|**more than one year**|||(43,233)||(48,640)|
|**Net liabilities**|||(176,947)||(130,182)|
|**Income funds**||||||
|Unrestricted funds|||(176,947)||(130,182)|
||||(176,947)||(130,182)|
The financial statements were approved by the Trustees on .........................
.............................. T Richardson **Trustee** 24th Jan 2023
- 9 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**18**
**Net cash used in investing activities**
**Financing activities**
Repayment of bank loans
**Net cash (used in)/generated from**
**financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
(2,589)|**£**
38,771
-
(2,589)
36,182
83,672
119,854|**2021**
**£**
50,000|**£**
17,154
-
50,000|
|---|---|---|---|---|
|||||67,154
16,518|
|||||83,672|
- 10 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **Charity information**
Community Leisure Services Partnership is a charitable incorporated organisation registered with the Charity Commission for England and Wales and the Scottish Charity Regulator. The registered office is 43, Stickle Down, Deepcut, Surrey, GU16 6GB.
## **1.1 Accounting convention**
These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Charities Act 2011, the Charities and Trutsee Investment (Scotland) Act 2005 and UK Generally Accepted Accounting Practice as it applies from 1 January 2019. The charity is a Public Benefit Entity as defined by FRS 102.
The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
These financial statements are prepared on the going concern basis. The trustees have a reasonable expectation that the charity will continue in operational existence for the foreseeable future, however, the trustees are aware of certain material uncertainties which may cause doubt on the charity's ability to continue as a going concern. This relates to the current year results, cashflow and future budgets. The budget forecast for 22/23 continues to show a deficit position, however the budget for 23/24 shows a small surplus is forecast to be made and an improved cashflow. This, however, does not include plans or repayments factored into the cashflow to be able to repay a significant long term creditor balance and the recovery from covid-19 is slower than expected, giving rise to the material uncertainty.
The Trustees have prepared forecasts that indicate the charity can continue to pay its debts as they fall due and the long term creditor has confirmed they are willing to continue to support the charity. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. Our opinion is not modified in this respect.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
## **1.4 Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Shop income is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
The charity receives gym membership subscriptions and these are recognised in the accounts on receipt as there is no refund given for annual subscriptions should the member cease their membership.
- 11 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **(Continued)**
## **1.5 Resources expended**
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Trust to the expenditure and it can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Costs of raising funds are those costs incurred in attracting voluntary income, the costs of trading for fundraising purposes, investment management and certain legal fees.
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.
Irrecoverable VAT is charged against the category or resources expended for which it was incurred.
Tax recovered from voluntary income received under gift aid is recognised in the Statement of Financial Activities when the income is receivable and is allocated to the income category to which the income relates.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Individual fixed assets costing £100 or more are capitalised at cost.
Tangible fixed assets are depreciated over their estimated useful lives as follows:
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment depreciated over 2 to 5 years Fixtures and fittings depreciated over 2 to 5 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1 Accounting policies**
## **(Continued)**
## **1.9 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **Critical judgements**
The key judgement within these accounts relates to the treatment of deferred income. The charity receives some income relating to annual gym membership which is paid upfront. Per the terms and conditions of membership any amounts paid are non-refundable in the case of membership being cancelled before the year has finished. Therefore the income has been recognised as income in full upon receipt and not deferred.
## **3 Donations and legacies**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2022**|2021|
||**£**|£|
|Government grant income|263,259|820,272|
During the year funds were received under the government backed Coronavirus Job Retention Scheme (CJRS), Small Business Grant and and Hospitality and Leisure Grant Schemes. These funds were used to cover the salaries of staff furloughed under the scheme and overheads.
## **4 Charitable activities**
||**Unrestricted**|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2022**|**2021**|
||**£**|**£**|
|Membership fees|2,123,055|698,678|
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## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**5**
**6**
**7**
**8**|**Other trading activities**
**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
Shop income
26,091
5,925
**Other income**
**Unrestricted**
Total
**funds**
**2022**
2021
**£**
£
Other income
3,708
-
**Raising funds**
**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
Fundraising and publicity
Advertising
42,687
14,226
42,687
14,226
**Charitable activities**
**2022**
**2021**
**£**
**£**
Staff costs
917,307
845,498
Depreciation and impairment
24,283
29,146
Charitable expenditure
1,465,156
818,057
2,406,746
1,692,701
Share of governance costs (see note 9)
13,445
6,050
2,420,191
1,698,751|**Other trading activities**
**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
Shop income
26,091
5,925
**Other income**
**Unrestricted**
Total
**funds**
**2022**
2021
**£**
£
Other income
3,708
-
**Raising funds**
**Unrestricted**
Unrestricted
**funds**
funds
**2022**
2021
**£**
£
Fundraising and publicity
Advertising
42,687
14,226
42,687
14,226
**Charitable activities**
**2022**
**2021**
**£**
**£**
Staff costs
917,307
845,498
Depreciation and impairment
24,283
29,146
Charitable expenditure
1,465,156
818,057
2,406,746
1,692,701
Share of governance costs (see note 9)
13,445
6,050
2,420,191
1,698,751|
|---|---|---|
|||14,226|
|||**2021**
**£**
845,498
29,146
818,057|
|||1,692,701
6,050|
|||1,698,751|
- 15 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **9 Support costs**
|**Support costs**|||||
|---|---|---|---|---|
|Audit fees
Governance costs
Analysed between
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
-
7,445
-
6,000
-
13,445
-
13,445|**2022**
**£**
7,445
6,000
13,445
13,445|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
-
6,050
-
-
-
6,050
-
6,050|**2021**
**£**
6,050
-|
|||||6,050|
|||||6,050|
Governance costs comprises fees for managing the charity.
## **10 Trustees**
None of the trustees or any connected persons received any remuneration or benefits from the charity during the year.
## **11 Employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2022**
**Number**
76
**2022**
**£**
866,140
38,759
12,408
917,307|**2021**
**Number**
83|
|---|---|---|
|||**2021**
**£**
801,703
33,988
9,807|
|||845,498|
There were no employees whose annual remuneration was more than £60,000.
- 16 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**12**
**Tangible fixed assets**
**Plant and**
**equipment**
**Fixtures and**
**fittings**
**£**
**£**
**Cost**
At 1 April 2021
15,762
136,434
At 31 March 2022
15,762
136,434
**Depreciation and impairment**
At 1 April 2021
15,523
104,760
Depreciation charged in the year
-
24,283
At 31 March 2022
15,523
129,043
**Carrying amount**
At 31 March 2022
239
7,391
At 31 March 2021
239
31,674
**13**
**Debtors**
**2022**
**Amounts falling due within one year:**
**£**
Trade debtors
36,933
Other debtors
41,610
Prepayments and accrued income
130,867
209,410
**14**
**Loans and overdrafts**
**2022**
**£**
Bank loans
47,411
Payable within one year
4,178
Payable after one year
43,233|**Total**
**£**
152,196|
|---|---|
||152,196|
||120,283
24,283|
||144,566|
||7,630|
||31,913|
||**2021**
**£**
9,940
70,327
43,486|
||123,753|
||**2021**
**£**
50,000|
||1,360
48,640|
The long-term loans are not secured as this is for a Bounce back loan which is a 100% government backed guarantee loan.
- 17 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **15 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
|**Notes**
Bank loans
**14**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2022**
**£**
4,178
9,259
364,787
27,301
65,083
470,608|**2021**
**£**
1,360
6,848
175,743
86,335
50,594|
|||320,880|
Included within creditors, an amount £158,839 (2021: £123,598) owed to 3D Leisure Limited which included an amount of £1,704 relates to a hire purchase agreement that was taken out by 3D Leisure Limited on behalf of Community Leisure Services Partnership.
Community Leisure Services Partnership have an agreement with 3D Leisure Limited committing Community Leisure Services Partnership to paying the hire purchase agreement on behalf of 3D Leisure Limited. The legal title of the assets will be transferred upon completion of the hire purchase agreement to Community Leisure Services Partnership.
The assets covered by the hire purchase agreement are included within these accounts as fixed assets.
3D Leisure Limited provide this charity with facilities management and all transactions are on an arms length basis.
- 18 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **16 Operating lease commitments**
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Within one year
Between two and five years|**2022**
**£**
177,081
378,245
555,326|**2021**
**£**
202,829
665,142|
|---|---|---|
|||867,971|
## **17 Related party transactions**
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|6,000|6,000|
- 19 -
## **COMMUNITY LEISURE SERVICES PARTNERSHIP**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**17**|**Related party transactions**|||**(Continued)**|**(Continued)**|
|---|---|---|---|---|---|
||No related party transactions were noted this year (2021: £nil).|||||
|**18**|**Cash generated from operations**||**2022**|**2021**||
||||**£**|**£**||
||Deficit for the year||(46,765)|(188,102)||
||Adjustments for:|||||
||Depreciation and impairment of tangible fixed assets||24,283|29,146||
||Movements in working capital:|||||
||(Increase)/decrease in debtors||(85,657)|147,703||
||Increase in creditors||146,910|28,407||
||**Cash generated from operations**||38,771|17,154||
|**19**|**Analysis of changes in net funds**|||||
|||**At 1 April 2021**|**Cash flowsAt**|**31 March 2022**||
|||**£**|**£**|**£**||
||Cash at bank and in hand|83,672|36,182|119,854||
||Loans falling due within one year|(1,360)|(2,818)|(4,178)||
||Loans falling due after more than one year|(48,640)|5,407|(43,233)||
|||33,672|38,771|72,443||
- 20 -