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2022-03-31-accounts

REGISTERED CHARITY NUMBER: 1162650

Report of the Trustees and

Financial Statements for the Year Ended 31 March 2022

for

The Peter Ashley Activity Centres CIO

The Peter Ashley Activity Centres CIO

Contents of the Financial Statements for the Year Ended 31 March 2022

Page
Reference and Administrative Details 1
Chairman's Report 2
Report of the Trustees 3 to 11
Report of the Independent Auditors 12 to 14
Statement of Financial Activities 15
Balance Sheet 16
Cash Flow Statement 17
Notes to the Cash Flow Statement 18
Notes to the Financial Statements 19 to 28

The Peter Ashley Activity Centres CIO

Reference and Administrative Details for the Year Ended 31 March 2022

TRUSTEES Lyn Ashley President
Graham Bryant
Colin Brooks
Daniel Hawley
Bruce Strugnell Chair
Paul Bishopp Vice Chair
Holly Saunders
Alan Cufley
Deborah Hodson
Stuart Seagrove
Elizabeth Weston
PRINCIPAL ADDRESS Fort Purbrook
Peter Ashley Lane
Portsdown Hill Road
Portsmouth
PO6 1BJ
REGISTERED CHARITY 1162650
NUMBER
AUDITORS JWR Audit Limited
Statutory Auditor
24 Picton House
Hussar Court
Waterlooville
Hampshire
PO7 7SQ
BANKERS NatWest
69-73 High Street
Cosham
PO6 3DA
SOLICITORS Coffin Mew Solicitors
1000 Lakeside North Harbour
Western Road
Portsmouth
PO6 3EN
ACCOUNTANTS Maximus Accountancy Services Limited
47 Kensington Road
Chichester
West Sussex
PO19 7XS

Page 1

The Peter Ashley Activity Centres CIO

Chairman's Report for the Year Ended 31 March 2022

The long-term future of the charity is now assured following the signing of a 99-year lease for each fort. Added to this is operational activity at levels which so far have exceeded those we predicted as pandemic restrictions were eased and then lifted. Provided this position is sustained there is hope that we can re-build reserves and look to developing our future plans. Alongside all of this comes the new facet to our occupation of these historic buildings, that of the responsibility for repair and conservation.

I am delighted to report that our first project - the conservation and repair of the eight footbridges at Fort Purbrook is now nearing completion. The successful award of a grant of £263,662 from Historic England, supplemented by £15,000 from the Trust and £35,000 From Portsmouth City Council, means that there is now full accessibility to the site and the rooms that we use. As the Conservation Management Plans for each fort have identified urgent work totalling in excess of £10m this is a small but nonetheless a very important achievement. This has been made possible by our partners The Goddard Partnership who provided the architectural and conservation expertise and R J Winnicott our contractors who managed not only the challenges of working in a Victorian fortification, but also succeeded in limiting the impact on our day-to-day operational activity. Finally, to Topp & Co. For the conservation work on the cast iron beams enabling one bridge to be conserved in pretty much its original state.

None of the above would be possible were it not for the continued support from my trustees and especially were it not for the sustained enthusiasm, perseverance, and dedication of all our staff who all went 'the extra mile' during lockdown as well as during the construction work to ensure that our re-emergence and recovery were possible, and as it currently seems, in short order.

I simply hope that going forward we can enjoy a period of sustained stability to enable financial reserves to gradually be replenished and to allow plans (put on hold during the pandemic) to be further developed. Alongside this will be further consideration of the urgent conservation and repair work and efforts to seek funding for some of the major items needing attention. This will include finalising arrangements with Portsmouth City Council to permit access to the £250k awarded for these purposes.

Exciting, challenging, demanding, rewarding - all these will be features of the next twelve months, and seeing the faces of our clients around the forts and as they leave them tells me that it makes both a crucial and positive impact on their lives as well as ours.

Mr Bruce Strugnell - Chairman

Page 2

The Peter Ashley Activity Centres CIO

Report of the Trustees for the Year Ended 31 March 2022

The trustees present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The report of the trustees has been prepared by the Chief Executive on behalf of the trustees of The Peter Ashley Activities Centres CIO (charity number 1162650). The primary purpose of the report is to ensure that the charity is publicly accountable to its stakeholders for the stewardship and management of the funds it holds.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The vision that shapes our annual activities is to: "Provide meaningful and challenging opportunities in a unique environment". This is supported by the wider mission of the charity which is to: "Contribute to the development of young people to be the best they can be whilst using the Victorian Forts for the benefit of all". By embedding the above Vision and Mission statements into the work of the charity we can meet the following aims.

The aims of the charity are:

  1. To provide young people with opportunities to experience and participate in activities in a semi-rural setting away from the immediate pressures and distractions of modern life.

  2. To provide activities and pursuits that are challenging, stimulating, and character building.

  3. To promote equal access for all regardless of ability, gender, ethnicity, social background, and to promote community spirit and teamwork.

  4. To provide work experience for young people.

  5. To provide facilities for community use subject to these supporting the main aims directed towards young people.

  6. To assist in protecting and preserving for future generations the two Victorian Forts and their immediate environment which are part of the United Kingdom's rich heritage whilst enabling them to be regularly used and enjoyed by local, national, and international visitors.

The objects employed to achieve the charity's aims are:

Page 3

The Peter Ashley Activity Centres CIO

Report of the Trustees for the Year Ended 31 March 2022

OBJECTIVES AND ACTIVITIES Significant activities

Putting these strategies into action we have two core areas of activity which are: Leisure Activities (including our residential provision) and Equestrian Activities. To complement our core areas of activities the charity generates income from other trading activities, these include:

By ensuring there is a wide range of sustainable income streams into the charity we are able to heavily subsidise the cost associated with participating in our core activities. As we continue to recover from the impact of the pandemic, we strived to continue to provide opportunities for our community to engage in activities, as well as to learn and understand more about the building's heritage for a wide range of visitors.

Leisure Activities

We strive to provide a wide range of activities within our Leisure Department, based at Fort Purbrook, for the community to engage in. This programme achieves a well-balanced mix of physical activities and team building experiences. Key to the ongoing success of the programme has been our ability to develop a programme of accessible activities, serving a wide range of disabled service users. Our leisure activity programme includes:

The leisure activities also include a comprehensive club offering, which includes:

Equestrian Activities

Our diverse Equestrian provision continues to expand. The success of our Riding for the Disabled Association (RDA) programme has enriched the programme offer and allows the charity to provide cost effective access to equestrian activities for disabled service users. Our Equestrian programme includes:

Page 4

The Peter Ashley Activity Centres CIO

for the Year Ended 31 March 2022

Report of the Trustees

OBJECTIVES AND ACTIVITIES

The Equestrian activities also include a strong club offer, including:

Public benefit

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'Public benefit: running a charity (PB2)'. As the Covid-19 pandemic evolved and the UK Government issued its 'living with Covid Strategy' the charity continued to rely on grants and donations as well as the limited income from fees and charges to cover its operating costs. The charity has started to recover from the impacts of Covid-19; it is pleasing to report that the charity has experienced an increase in both our levels of engagement and operational income. The charity has continued to adopt a sustainable approach to securing grant aid, legacy income and donations to support achieving the aims and objectives of the charity. The staff have continued to promote positive and productive relationships with a wide range of professional organisations, such as Historic England, National Lottery Heritage Fund as well as new relationships being developed with funders and initiatives such as the Big Give Campaign.

The charity continued to actively encourage all within our community to take part in the restricted programme of activities offered by the charity during the pandemic.

Page 5

The Peter Ashley Activity Centres CIO

for the Year Ended 31 March 2022

Report of the Trustees

ACHIEVEMENT AND PERFORMANCE Charitable activities

Well, what a difference a year makes!

As the charity has been able to open its gates and welcome members of its community back to both Fort Purbrook and Fort Widley, we have been able to focus our efforts on re-engaging and developing links with our community members!

During the 2021-22 period the charity was able to achieve an increase in total visitor engagement. We are pleased to be able to report that our total visitor engagement was 56,240 for the year! This level of engagement has surpassed our expectation and is testament to how well rooted the charity is in its community. As we continue to work through our 5-year strategy we will continue to see our levels of engagement raised to pre-pandemic levels.

The charity would not have been able to make such significant progress in its recovery from the pandemic without the amazing members of staff who work so hard to deliver a successful programme of activities. Even when faced with the challenges of responding to the pandemic! Trustees and wider stake holders will be forever grateful for their enthusiasm and dedication. Thank you.

The increased levels of engagement have been seen across all aspects of the charity's offer, except for our Open Day. The sad decision was taken to once more postpone the annual event to ensure we adhered to the relevant government advice and kept our community safe.

While the charity strived to increase our residential opportunities during the 2021-22 period, it was important that we worked with groups and members of our community to understand the challenges and concerns of taking part in our residential offer as the whole country transitioned towards Living with Covid. This approach enabled us to welcome back a number of groups and once more ensure the groundwork was in place for very successful residential period in 2021-22.

Our core areas of activities (Leisure and Equestrian) were able to welcome back groups and visitors, and it is extremely pleasing to be able to say that both our Leisure and Equestrian departments have not only recovered well but have experienced an increase in engagement level when compared to the 2019-20 (pre-pandemic) period. The trustees and staff are truly grateful to our community and how they continue to support us in all that we do.

The Trustees are pleased to report that significant progress has been made in our conservation efforts, as referred to by our Chair of Trustees. The trustees would once again like to extend their thanks to all involved with the project. This is the first of many conservation challenges the charity will tackle, and we could not have asked for a better outcome.

As the charity continues to rollout our 5-year strategy, we look forward to welcoming more members of our community, old and new, to our sites over the coming months.

Monitoring

The trustees have to monitor and assess the charity's performance against the following criteria:

Impact Assessment

The impact our offer has on the service users in relation to the aims and objectives of the charity is monitored closely. Throughout this process the charity uses three main data collection opportunities; participant feedback, targeted questioning and case studies. All the data collected is reviewed, with changes and improvements to our opportunities undertaken as identified.

Page 6

The Peter Ashley Activity Centres CIO

Report of the Trustees for the Year Ended 31 March 2022

ACHIEVEMENT AND PERFORMANCE

Increased Participation

The charity continues to focus on increasing awareness of its work. A key indicator to this is to assess the number of participants accessing the facilities and monitoring its growth. The charity seeks to develop a wider understanding of where the service users originate from and as such uses data to analyse our impact on both the local and wider communities.

Financial Sustainability

It is important that the financial sustainability is assessed throughout the year. As such it is reviewed quarterly by the charity and performance is measured both compared to the budgets and year to year comparison. The charity's principle aim of budget setting is to achieve a break-even position at the end of the fiscal year. To better safeguard the charity's finances the charity continues to incorporate a 5% contingency fund into the budget setting process.

FINANCIAL REVIEW

Financial review

The charity's principle aim of budget setting continues to be to achieve a break-even position at the end of the fiscal year. As the charity transitioned toward Living with Covid the trustees continued to undertake a robust quarterly review programme to ensure the charity was best placed to respond to any unforeseen financial challenges presented during this time.

The trustees are pleased to be able to announce that through the increased level of engagement and being able to access the relevant Government support schemes, we were able to surpass our principle aim and achieve a surplus of £39,857 for the 2021-22 period.

The primary income streams to the charity itself were its Charitable Activities, with Leisure income achieving £189,324 and accounting for a surplus of £26,031 in this activity area. This is testament to the financial controls that have been implemented by the trustees and staff, as this has been achieved despite income derived from its residential activities being well below pre-pandemic levels.

Through effective herd management and extending our opening hours, the income from our Equestrian Activities over the 2021-22 period has gone on to surpass pre-pandemic levels and achieve £231,563 for the period. The trustees are very pleased to have been able to increase the Equestrian offer and meet the growth in demand for the provision.

The charity is pleased to report that other trading and investment income has totalled £285,417 and again shows an increase when compared to pre-pandemic income. In addition to this income there was £11,030 of income through donations as well as significant income through grants, achieving £279,360, with the majority of this grant income being restricted to the Bridge Conservation project.

The charity continues to maintain an appropriate reserves policy of holding three-months operational costs whenever possible, in case the charity becomes insolvent. The trustees are pleased to report that as of 31 March 2022 the charity held £223,801 of unrestricted reserves, of which £161,787 was represented by tangible fixed assets, leaving £62,014 of free reserves. This includes the allocation of a 10% contingency fund for emergency works and resources due to the ongoing risks highlighted in the Charities Risk Management Strategy. The charity also held £94,528 of restricted reserves as of this date.

Page 7

The Peter Ashley Activity Centres CIO

for the Year Ended 31 March 2022

Report of the Trustees

PLANS FOR FUTURE PERIODS

The future plans of the charity are set out in the Charity Strategy document developed last year.

The Charity Strategy takes a complete view of Peter Ashley Activity Centres (PAAC). This includes an analysis of financial performance to date as well as the charity's current resilience and response to the last 12 months of the pandemic. This is then projected forward into the 'Recovery' phase as the lockdown eases and looks to what the future could look like under a 'Thrive' scenario. The charity is making good progress through the Respond Phase and should be in a position to move to the Recover Phase early in the 2022-23 period.

This Charity Strategy is broken down into the following main sections:

Section 1: Respond Phase (last year and into the next 12 months)

In January 2021 when this work began, the charity was still in the 'Respond Phase' to COVID-19 with this phase still very much about 'surviving'. The work on the Charity Strategy looked at and reviewed the actions to date.

Key tasks include:

From this work the charity will have a 'base plan' which is a 'survival mode' based on the excellent work done by staff and trustees to date to keep the charity viable over the last year.

Section 2: Recover Phase (from years 1 to 2 of this plan)

It is anticipated that, with the positive effect of the Coronavirus vaccine, by 2022 the charity will be into the 'Recover Phase'. This phase is about developing and building on the work done in phase one; the relationship building, marketing, fundraising and income generation work done to date and thinking about what the charity will look like soon and later.

This work also acknowledges that part of 'Recover Phase' is about going out into the community to understand how they think the recovery should look and how they can be a part of it.

Key tasks:

These tasks will help staff and trustees think about where the charity is currently now, where they see it soon and then some point in the future. This work is then supported by analysing the current client base and services and considering how these could change in the future (later), right through to complete client (customer) and service (product) differentiation.

Section 3: Thrive Phase (from 3 years onwards)

Assuming the charity continues to respond appropriately, and the recovery continues (and the pandemic is managed), what would a thriving charity look like in 4 to 5 years' time? This part of the Charity Strategy will build on the 'Recover Phase', and in particular the tasks and activities under LATER of the one-page strategy and the latter stages of the growth matrix.

This section will be blue-sky, aspirational and set out the key steps for the strategy.

Key tasks include:

Page 8

The Peter Ashley Activity Centres CIO

for the Year Ended 31 March 2022

Report of the Trustees

Conclusion and action points for PAAC

The final part of this Charity Strategy sets out key action points for the charity from NOW, SOON and LATER with approximate timelines. This work should be based on research and analysis and in many cases, needs to be delivered in partnership.

This will include partnerships (and collaboration) with nurseries and primary schools all the way through to FE and vocational colleges and universities. There is a clear role for local authorities and Portsmouth City Council (PCC) and other public bodies, heritage and conservation organisations, the private sector and of course, the local community.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The Peter Ashley Activity Centres is a Charitable Incorporated Organisation (CIO) governed by its Constitution dated 3 June 2015. It is registered as a charity with the Charity Commission. The members of the CIO shall be its charity trustees for the time being. The only persons eligible to be members of the CIO are its charity trustees. Membership of the CIO cannot be transferred to anyone else. Any member and charity trustee who ceases to be a charity trustee automatically ceases to be a member of the CIO. If the CIO is wound up the charity trustees have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.

Recruitment and appointment of new trustees

The charity has a standard process for the selection and induction of trustees and our Constitution allows for a maximum of 12 trustees. A candidate needs to satisfy trustees that they have relevant experience and expertise and can commit the necessary time to work on behalf of the charity.

The trustee selection process is:

  1. Initial approach

  2. Submission of CV

  3. Interview

  4. Invitation to attend a Board Meeting

  5. Induction as a trustee

The charity would expect a candidate to be able to commit to learning about all the facets of the charity by spending time in the various areas and then to use their experience and skills to further the charity.

As set out in the Constitution on the first anniversary of the registration of this constitution with the Charity Commission one-third of the first charity trustees shall retire from office and on the second anniversary a further third of the first charity trustees shall retire from office. If the number of charity trustees is not a multiple of three, then the number nearest to one-third shall retire from office. When considering co-opting trustees, the trustees must have regard to the skills, knowledge and experience needed for the effective operation of the CIO.

Page 9

The Peter Ashley Activity Centres CIO

Report of the Trustees for the Year Ended 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure

The Board of Trustees, which can have up to 12 members but no less than 3, administers the charity. The Board normally meets quarterly and there are sub-committees covering personnel, finance and audit which meet regularly. The Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and charity related activities.

The charity's arrangements for setting pay for key management personnel are strictly governed by the personnel sub-committee. Salaries have been set in accordance with industry expectation and current market rates, while ensuring appropriate key performance indicators (KPI's) have been set to monitor the employee's performance. Key management personnel pay is reviewed annually in line with the overall performance of the charity.

Key Management Personnel

The key management personnel to whom the trustees delegate the day to day management of the Trust are as follows:

Chief Executive: Darren Bridgman Head of Operations: Lisa Wheatley Centre Manager (Fort Widley): Jodie Thackeray Centre Manager (Fort Purbrook): Tom Weaver (appointed 14 February 2022) Finance Officer: Charly McCarroll Health & Safety Officer: Duncan Judge

Induction and training of new trustees

New trustees undergo orientation to brief them on their legal obligations under charity law, the Charity Commission guidance on public benefit, and inform them of the content of the Constitution, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the induction, they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role and are directed to the Charity Commissions website to consult the wealth of advice that is available.

Related parties and cooperation

None of our Trustees receive remuneration or other benefit from their work with the charity. A charity trustee must declare the nature and extent of any interest, direct or indirect, which he or she has in any proposed transaction or arrangement with the charity or any transaction or arrangement entered into by the charity which has not previously been declared, and absent himself or herself from any discussion of the charity trustees in which it is possible that a conflict of interest will arise between his or her duty to act solely in the interests of the charity and any personal interest (including but not limited to any financial interest). Any charity trustee absenting himself or herself from any discussions in accordance with this clause must not vote or be counted as part of the quorum in any decision of the charity trustees on the matter.

Page 10

The Peter Ashley Activity Centres CIO

Report of the Trustees for the Year Ended 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The trustees have a Risk Management Strategy which comprises:

This work has identified that financial sustainability which includes elements associated with the restoration of the building, is the major financial risk for the charity. A key component in the management of financial risk is a regular review of available funds to undertake planned repairs, settle debts as they fall due, regular liaison with the bank, and active management of trade debtors' and creditors' balances to ensure enough working capital is held by the charity. Consequently, the major focus must be in achieving substantial grant aid to halt deterioration and to restore much of the buildings to enable their continuing use.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements 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 charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements 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.

Approved by order of the board of trustees on 19 October 2022 and signed on its behalf by:

Bruce Strugnell - Trustee

Page 11

Report of the Independent Auditors to the Trustees of The Peter Ashley Activity Centres CIO

Opinion

We have audited the financial statements of The Peter Ashley Activity Centres CIO (the 'charity') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

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 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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Page 12

Report of the Independent Auditors to the Trustees of The Peter Ashley Activity Centres CIO

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations.

We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

Procedures performed by the audit team included:

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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

Page 13

Report of the Independent Auditors to the Trustees of The Peter Ashley Activity Centres CIO

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. 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 and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

JWR Audit Limited Statutory Auditor 24 Picton House Hussar Court Waterlooville Hampshire PO7 7SQ

21 October 2022

Page 14

The Peter Ashley Activity Centres CIO

Statement of Financial Activities

for the Year Ended 31 March 2022

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
40,561
Charitable activities
Leisure
189,324
Equestrian
231,563
Other trading activities
3
285,394
Investment income
4
19
Total
746,861
EXPENDITURE ON
Raising funds
6
1,226
Charitable activities
7
Leisure
161,301
Equestrian
198,243
Administration
94,023
Building costs
270,864
Finance costs
19,125
Total
744,782
NET INCOME/(EXPENDITURE)
2,079
Transfers between funds
17
(29,162)
Net movement in funds
(27,083)
RECONCILIATION OF FUNDS
Total funds brought forward
250,884
TOTAL FUNDS CARRIED FORWARD
223,801		 Restricted
funds
£
249,829
-
-
-
4
249,833
-
1,992
715
-
209,348
-
212,055
37,778
29,162
66,940
27,588
94,528		 2022
Total
funds
£
290,390
189,324
231,563
285,394
23
996,694
1,226
163,293
198,958
94,023
480,212
19,125
956,837
39,857
-
39,857
278,472
318,329		 2021
Total
funds
£
308,219
30,837
57,625
151,969
112
548,762
163
123,087
182,224
78,739
223,702
22,675
630,590
(81,828)
-
(81,828)
360,300
278,472

The notes form part of these financial statements

Page 15

The Peter Ashley Activity Centres CIO

Balance Sheet

31 March 2022

Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
12
161,787
CURRENT ASSETS
Debtors
13
65,860
Cash at bank
132,402
198,262
CREDITORS
Amounts falling due within one year
14
(136,248)
NET CURRENT ASSETS
62,014
TOTAL ASSETS LESS CURRENT
LIABILITIES
223,801
CREDITORS
Amounts falling due after more than one year
15
-
NET ASSETS
223,801
FUNDS
17
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Restricted
funds
£
-
-
183,630
183,630
(89,102)
94,528
94,528
-
94,528		 2022
Total
funds
£
161,787
65,860
316,032
381,892
(225,350)
156,542
318,329
-
318,329
223,801
94,528
318,329		 2021
Total
funds
£
157,551
45,648
190,810
236,458
(110,078)
126,380
283,931
(5,459)
278,472
250,884
27,588
278,472

The financial statements were approved by the Board of Trustees and authorised for issue on 19 October 2022 and were signed on its behalf by:

Bruce Strugnell - Trustee

The notes form part of these financial statements

Page 16

The Peter Ashley Activity Centres CIO

Cash Flow Statement for the Year Ended 31 March 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
Capital repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2022
£
182,883
182,883
(43,308)
2,000
23
(41,285)
(16,376)
(16,376)
125,222
190,810
316,032		 2021
£
(52,679)
(52,679)
(10,166)
2,650
112
(7,404)
(16,375)
(16,375)
(76,458)
267,268
190,810

The notes form part of these financial statements

Page 17

The Peter Ashley Activity Centres CIO

Notes to the Cash Flow Statement for the Year Ended 31 March 2022

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Loss/(profit) on disposal of fixed assets
Interest received
Increase in debtors
Increase in creditors
Net cash provided by/(used in) operations		 2022
£
39,857
35,098
1,974
(23)
(20,212)
126,189
182,883		 2021
£
(81,828)
42,126
(1,050)
(112)
(15,777)
3,962
(52,679)

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.21 Cash flow At 31.3.22
£ £ £
Net cash
Cash at bank 190,810 125,222 316,032
190,810 125,222 316,032
Debt
Finance leases (21,834) 16,376 (5,458)
(21,834) 16,376 (5,458)
Total 168,976 141,598 310,574

The notes form part of these financial statements

Page 18

The Peter Ashley Activity Centres CIO

Notes to the Financial Statements for the Year Ended 31 March 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income from events and activities is recognised in the accounting period in which the activity occurs and is deferred to the extent to which it relates to activities which will take place in future accounting periods.

Income from grants is recognised when the charity has received written confirmation of the offer of funding or when any conditions relating to the grant have been met.

Income from donations is recognised when it is received.

Income from legacies is recognised when it is probable that the legacy will be received and the amount receivable can be estimated with sufficient accuracy.

Rental income is recognised in the accounting period to which it relates.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

The majority of costs can be directly attributed to the various activities of the charity based on what the expenditure is for. Where costs are apportioned, this is on a basis consistent with the use of resources, such as headcount.

Tangible fixed assets

Assets purchased for the continuing use of the charity are carried in the balance sheet at their cost less depreciation. Fixed assets costing less than £500 are not capitalised.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Property improvements - 25% reducing balance Equestrian equipment - 25% reducing balance Leisure and office equipment - 20% reducing balance Motor vehicles - 20% reducing balance

Depreciation is not charged on the riding school horses as the trustees are of the opinion that their value to the charity exceeds their book value. The carrying value of the horses is reviewed at each year end and any impairment is reflected in the Statement of Financial Activities in the year in which it occurs.

Taxation

The charity is exempt from tax on its charitable activities.

continued...

Page 19

The Peter Ashley Activity Centres CIO

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

1. ACCOUNTING POLICIES - continued

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Heritage assets

The charity operates from two Victorian forts, Fort Purbrook and Fort Widley. During the year ended 31 March 2022 the charity entered into 99-year leases of both forts from Portsmouth City Council, at a peppercorn rent. Whilst the forts are of significant heritage value, the charity is not dependent on them to deliver its activities and, given enough time, could be relocated to alternative premises. However, the aims of the charity include protecting and preserving the forts and their immediate surroundings for future generations, as part of the United Kingdom's heritage, and on this basis the forts could be classed as heritage assets.

There is no information available on the cost or valuation of the forts and, given the size and complexity of the fortifications it is not possible to obtain a valuation without incurring significant expense. Any such valuation is further complicated by the fact that there is a conservation deficit of approximately £10m across the two forts.

As the cost of providing any such information significantly outweighs any benefit to the users of the accounts, the heritage assets are not recognised on the balance sheet.

Debtors and creditors due within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
Donations
Grants		 2022
£
11,030
279,360
290,390		 2021
£
24,067
284,152
308,219

continued...

Page 20

The Peter Ashley Activity Centres CIO

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

2. DONATIONS AND LEGACIES - continued

Grants received, included in the above, are as follows:

Historic England
Portsmouth City Council
Other
Riding for the Disabled Association
Retail Hospitality and Leisure Grant
C-19 Emergency Trading Income Support Scheme
Lottery Community Fund
British Horse Society
Architecture Heritage Fund
Sport England
Local Restrictions Support Grant
Coronavirus Job Retention Scheme
Havant Borough Council - stock fencing		 2022
£
241,661
3,000
3,000
1,000
4,000
-
-
-
-
-
24,000
2,699
-
279,360		 2021
£
-
3,000
1,000
3,000
50,000
25,000
10,000
2,350
11,400
7,795
30,643
137,464
2,500
284,152

The grants from Historic England are to assist with the conservation of the historic fort at Fort Purbrook.

3. OTHER TRADING ACTIVITIES

3. OTHER TRADING ACTIVITIES
2022 2021
£ £
Adult leisure 13,231 4,839
Catering income 2,153 -
Adult riding 62,119 18,346
Miscellaneous income - leisure 3,116 180
Miscellaneous income - equestrian 16,163 15,360
Rental income - Purbrook 78,307 8,587
Rental income - Widley 110,305 104,657
285,394 151,969
4. INVESTMENT INCOME
2022 2021
£ £
Deposit account interest 23 112

continued...

Page 21

The Peter Ashley Activity Centres CIO

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

5. INCOME FROM CHARITABLE ACTIVITIES

2022
Activity
£
Youth leisure activities
Leisure
143,201
Youth rental
Leisure
46,123
Youth riding
Equestrian
231,563
420,887
RAISING FUNDS
Other trading activities
2022
£
Purchases
1,226
CHARITABLE ACTIVITIES COSTS
Support
Direct
costs (see
Costs
note 8)
£
£
Leisure
163,293
-
Equestrian
198,958
-
Administration
8,205
85,818
Building costs
9,418
470,794
Finance costs
-
19,125
379,874
575,737
SUPPORT COSTS
Governance
Management
costs
£
£
Administration
85,818
-
Building costs
470,794
-
Finance costs
14,716
4,409
571,328
4,409		 2021
£
26,942
3,895
57,625
88,462
2021
£
163
Totals
£
163,293
198,958
94,023
480,212
19,125
955,611
Totals
£
85,818
470,794
19,125
575,737

6. RAISING FUNDS

7. CHARITABLE ACTIVITIES COSTS

8. SUPPORT COSTS

Governance costs includes £2,000 (2021: £2,000) payable to the auditor in respect of the audit, and Nil (2021 £1,000) for other services.

continued...

Page 22

The Peter Ashley Activity Centres CIO

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

2022 2021
£ £
Trustees' expenses 1,409 202

No trustees were reimbursed for any expenses during the year or during the prior year.

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2022
£
419,202
27,831
6,946
453,979		 2021
£
380,081
24,309
6,568
410,958

The average monthly number of employees during the year was as follows:

Leisure
Equestrian
Management
No employees received emoluments in excess of £60,000.
11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
266,215
Charitable activities
Leisure
30,837
Equestrian
57,625
Other trading activities
151,969
Investment income
112
Total
506,758
EXPENDITURE ON
Raising funds
163
Charitable activities
Leisure
122,014
Equestrian
173,332
Administration
78,739		 2022
9
10
6
25
Restricted
funds
£
42,004
-
-
-
-
42,004
-
1,073
8,892
-		 2021
10
7
6
23
Total
funds
£
308,219
30,837
57,625
151,969
112
548,762
163
123,087
182,224
78,739

continued...

Page 23

The Peter Ashley Activity Centres CIO

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

Building costs
Finance costs
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
12.
TANGIBLE FIXED ASSETS
Improvements
to
property
£
COST
At 1 April 2021
194,221
Additions
22,838
Disposals
(1,595)
At 31 March 2022
215,464
DEPRECIATION
At 1 April 2021
103,069
Charge for year
24,442
Eliminated on disposal
(1,311)
At 31 March 2022
126,200
NET BOOK VALUE
At 31 March 2022
89,264
At 31 March 2021
91,152		 Plant and
machinery
£
50,987
18,100
(5,426)
63,661
14,894
4,537
(2,997)
16,434
47,227
36,093		 Unrestricted
fund
£
223,702
13,175
611,125
(104,367)
8,495
(95,872)
346,756
250,884
Fixtures
and
fittings
£
26,337
2,370
(2,038)
26,669
13,353
2,654
(1,469)
14,538
12,131
12,984		 Restricted
funds
£
-
9,500
19,465
22,539
(8,495)
14,044
13,544
27,588
Motor
vehicles
£
38,517
-
(1,780)
36,737
21,195
3,465
(1,088)
23,572
13,165
17,322		 Total
funds
£
223,702
22,675
630,590
(81,828)
-
(81,828)
360,300
278,472
Totals
£
310,062
43,308
(10,839)
342,531
152,511
35,098
(6,865)
180,744
161,787
157,551

The net book value of assets held under finance leases and similar hire purchase agreements at the balance sheet date was £23,603 (2021 £31,471), and is included in improvements to property.

continued...

Page 24

The Peter Ashley Activity Centres CIO

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£ £
Trade debtors 36,741 14,619
Other debtors 29,119 31,029
65,860 45,648
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£ £
Hire purchase (see note 16) 5,458 16,375
Trade creditors 48,014 13,010
Taxation and social security 6,514 4,728
Other creditors 165,364 75,965
225,350 110,078
Other creditors includes £62,032 (2021 £60,287) of deferred income, which represents amounts received in
advance of activities and rental income in respect of future periods.
15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2022 2021
£ £
Hire purchase (see note 16) - 5,459
16. LEASING AGREEMENTS
Minimum lease payments fall due as follows:
Hire purchase contracts
2022 2021
£ £
Net obligations repayable:
Within one year 5,458 16,375
Between one and five years - 5,459
5,458 21,834
Non-cancellable operating
leases
2022 2021
£ £
Within one year 6,191 5,660
Between one and five years 22,391 1,714
28,582 7,374

Operating lease payments made during the year amounted to £9,217 (2021 £9,263).

Page 25

continued...

The Peter Ashley Activity Centres CIO

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

17. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Restricted funds
Riding for Disabled Fund
Historic England
National Heritage Timeline Fund
Lord Mayor's Fund 2020
Horse Welfare Fund
Lottery Community Fund
Purbrook Stock Fencing
Sport England
TOTAL FUNDS
Net movement in funds, included in the above are as
Unrestricted funds
General fund
Restricted funds
Riding for Disabled Fund
Historic England
National Heritage Timeline Fund
Lord Mayor's Fund 2020
Horse Welfare Fund
Purbrook Stock Fencing
Sport England
TOTAL FUNDS		 At 1.4.21
£
250,884
5,987
-
7,479
730
350
9,400
977
2,665
27,588
278,472
follows:		 Net
movement
in funds
£
2,079
8,168
40,773
(7,479)
(730)
(350)
-
(977)
(1,627)
37,778
39,857
Incoming
resources
£
746,861
8,168
241,665
-
-
-
-
-
249,833
996,694		 Transfers
between
At
funds
31.3.22
£
£
(29,162)
223,801
-
14,155
38,500
79,273
-
-
-
-
-
-
(8,300)
1,100
-
-
(1,038)
-
29,162
94,528
-
318,329
Resources
Movement
expended
in funds
£
£
(744,782)
2,079
-
8,168
(200,892)
40,773
(7,479)
(7,479)
(730)
(730)
(350)
(350)
(977)
(977)
(1,627)
(1,627)
(212,055)
37,778
(956,837)
39,857

Page 26

continued...

The Peter Ashley Activity Centres CIO

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

17. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement
At 1.4.20
in funds
£
£
Unrestricted funds
General fund
346,756
(104,367)
Restricted funds
Riding for Disabled Fund
5,335
652
National Heritage Timeline Fund
7,479
-
Lord Mayor's Fund 2020
730
-
Purbrook Kitchen Refurbishment
-
753
Horse Welfare Fund
-
350
Lottery Community Fund
-
10,000
Architectural Heritage Fund
-
1,900
Purbrook Stock Fencing
-
2,500
Sport England
-
6,384
13,544
22,539
TOTAL FUNDS
360,300
(81,828)
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
506,758
Restricted funds
Riding for Disabled Fund
652
Purbrook Kitchen Refurbishment
753
Horse Welfare Fund
8,904
Lottery Community Fund
10,000
Architectural Heritage Fund
11,400
Purbrook Stock Fencing
2,500
Sport England
7,795
42,004
TOTAL FUNDS
548,762		 Transfers
between
At
funds
31.3.21
£
£
8,495
250,884
-
5,987
-
7,479
-
730
(753)
-
-
350
(600)
9,400
(1,900)
-
(1,523)
977
(3,719)
2,665
(8,495)
27,588
-
278,472
Resources
Movement
expended
in funds
£
£
(611,125)
(104,367)
-
652
-
753
(8,554)
350
-
10,000
(9,500)
1,900
-
2,500
(1,411)
6,384
(19,465)
22,539
(630,590)
(81,828)

The Historic England Fund is grants received towards the repair of Fort Purbrook, less the related expenditure up to the balance sheet date.

The Riding for the Disabled Fund consists of donations given to purchase horses and equipment suitable for use by the profoundly disabled.

The National Heritage Timeline Fund is a grant received to develop historical exhibits at the Forts.

The Lord Mayors Fund 2020 is money received towards the purchase of leisure and equestrian equipment.

continued...

Page 27

The Peter Ashley Activity Centres CIO

Notes to the Financial Statements - continued for the Year Ended 31 March 2022

17. MOVEMENT IN FUNDS - continued

The Purbrook Kitchen Refurbishment was a restricted fund received and spent in accordance with the restrictions during the prior year. A further donation towards the project was received during the year and this has been transferred to the general fund to reflect the expenditure already incurred that was in excess of the original grant.

The Horse Welfare Fund consists of grants and donations to help pay for the horses' keep during the period when the equestrian centre was closed due to the pandemic.

The Lottery Community Fund consists of a grant for the provision of free activities for key workers.

The Architectural Heritage Fund was a grant to enable the charity to develop a 5-Year Strategy Plan.

The Purbrook Stock Fencing Fund is a grant from Havant Borough Council to assist with improving the fencing at Fort Purbrook.

The Sport England Fund is a Return to Play grant intended to help the charity encourage a return to activities following the pandemic.

18. RELATED PARTY DISCLOSURES

The charity charged Woodland Crafts Limited, a business connected with Paul Bishopp, a trustee, £520 (2021: £1,426) in total for the use of the charity's facilities during the year. None of this amount was unpaid at the balance sheet date.

During the year the charity purchased a horse from the finance officer, at its market value of £2,000. Prior to the sale of the horse it was kept at livery at the riding centre and the finance officer paid the market price for this service. There were no amounts owed by either party at the balance sheet date.

There were no other transactions with related parties during the year to be disclosed.

Page 28