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2020-09-30-accounts

Phoenix Sports and Recreation (Rotherham) (A Charitable Company Limited by Guarantee) Report and Consolidated Financial Statements For the year end 30 September 2020

Company No. 09446920

Charity No. 1166774

Phoenix Sports and Recreation (Rotherham) (A Charitable Company Limited by Guarantee)

Report and Consolidated Financial Statements For the year end 30 September 2020

Contents Page
Report of the Trustees 1
Report of the Independent Auditors 8
Consolidated Statement of Financial Activities 10
Balance Sheets 11
Consolidated Statement of Cash Flows 12
Notes to the Financial Statements 13

1

Phoenix Sports and Recreation (Rotherham) (A Charitable Company Limited by Guarantee)

Report of the Trustees For the year end 30 September 2020

REFERENCE AND ADMINISTRATIVE DETAILS

Charity Name Phoenix Sports and Recreation (Rotherham)
Charity Registration Number 1166774
Registered Company Number 09446920 (England and Wales)
Registered Office Address Pavilion Lane
and Principal Office Off Bawtry Road
Brinsworth
Rotherham
South Yorkshire
S60 5PA
Trustees Mr N Watkins Chair
Mr C Brown Treasurer
Mr M Windle
Mr M Evison
Mr M Read
Mr K Dyson
Mr J Carpenter
Mr R Spencely
Mr S Robinson (resigned 13 March 2020)
Company Secretary Mr B Watkins
Company Management
Business Manager Mr B Watkins
Auditors Allotts Business Services Ltd, Statutory Auditor
Chartered Accountants
The Old Grammar School
13 Moorgate Road
Rotherham
South Yorkshire
S60 2EN
Solicitors Wrigleys Solicitors LLP
19 Cookridge Street
Leeds
LS2 3AG
Bankers Santander
Bootle
Merseyside
L30 4GB

2

Phoenix Sports and Recreation (Rotherham) (A Charitable Company Limited by Guarantee)

Report of the Trustees For the year end 30 September 2020

The annual report serves the purposes of both a trustee’s report, and a director's report under company law.

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the consolidated financial statements of the charity for the year ended 30 September 2020. 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).

OBJECTIVES AND ACTIVITIES

Our objectives as set out in our Articles of Memorandum are to promote physical and mental health and wellbeing by the provision of sporting and cultural facilities.

The Objects are specifically restricted to the following, for the public benefit:

The strategies employed to achieve the charity’s aims and objectives are to: -

  1. present a broad range of facilities and activities for the enjoyment and education of our local community;

  2. offer opportunities for a broad range of people to get involved in sporting leisure and cultural activities.

In putting these strategies together we have three major areas of activity: -

  1. Organised “sections” where members can partake individually or collectively in teams, both in competitive and non-competitive environments.

  2. Non section members where use of the facilities can be on a “one off” basis or a term basis such as the use of football facilities throughout the football season by Brinsworth Whitehill Junior Football Club.

  3. Casual use

In implementing these strategies the sections are encouraged to include and where feasible encourage participation by all members of the community.

2 3

Phoenix Sports and Recreation (Rotherham) (A Charitable Company Limited by Guarantee)

Report of the Trustees For the year end 30 September 2020

Our Facilities

We aim to provide affordable access to a wide range of facilities for a whole range of sports and cultural activities these include but are not restricted to: -

Sports Facilities for Archery Badminton Bowls Cricket Football Golf Squash Table Tennis Weight Training

In addition the Charity provides administration and other support for Bridge Bowls (indoor) Drama Free and Easy, aged social gatherings. Hockey Ravenfield Country Park

The Charity relies on the income from fees and charges it has to make to cover its operating costs and is constantly striving to ensure that these are affordable to all.

Volunteers

The charity is grateful for the work carried out by its Trustees and also those who help to run the various sporting and leisure sections of the charity.

Public benefit

The Trustees have had regard to the guidance issued by the Charity Commission in relation to Public Benefit in determining the actions and objectives of the Charity. The Trustees also confirm that they have complied with the duty in Section 4 of the Charities Act 2011.

The charity’s services are available to all.

The Trustees feel it is clear from the Charity's objectives and aims, the targets set for the Charity and in providing its facilities, support for the local community and opportunities to gain improved physical and mental wellbeing, the charity brings substantial public benefit.

ACHIEVEMENTS AND PERFORMANCE

On 1 October 2016, the assets, liabilities and activities of Phoenix Sports and Social Club, an unincorporated members club were transferred to the charity and its subsidiary Phoenix Pavilion Ltd, and the charity commenced its activities on that date. The trading activities are undertaken by Phoenix Pavilion Limited.

During the period the charity achieved its aims in providing the facilities required to meet the demands of the community. An unprecedented global pandemic impacted significantly on the Charities turnover. The Charities response in focusing on cash management and access to governing bodies grants etc, should be viewed as an achievement given the challenges in the hospitality and recreational sectors.

5 4

Phoenix Sports and Recreation (Rotherham) (A Charitable Company Limited by Guarantee)

Report of the Trustees For the year end 30 September 2020

Key Performance Indicators

The charity measures its success by the number of members and the number of people using their charitable facilities.

The charity exceeded expectations regarding the membership levels of two of our outdoor sports offerings (Golf and Angling). As both were two of the offerings that returned sooner post lockdown than other things such as holidays and hospitality, both benefited from an increased uptake, so much so that we currently have a waiting list for 7 day golf members and multi-rod carp fishing.

The charity's income is influenced by public attitudes to health and leisure activities.

Financial Review

In the third year of activities the group received income of £435,478 (2019 £465,155) from section membership and pay to play activities with additional income of £121,881 (2019 £9,917) from grants. A further £27,018 (2019 £25,555) was raised in fundraising and £627,975 (2019 £960,388) from the trading subsidiary.

Operating costs for the charity amounted to £636,330 (2019 £721,626) on charitable activities, £23,700 (2019 £21,000) in fundraising activities and £597,835 (2019 £787,578) relating to the trading activities of the subsidiary.

Capital Expenditure amounted to £42,186 (2019 £75,930).

After inclusion of the results of Phoenix Pavilion Ltd the group had a consolidated deficit of £30,178 (2019 £56,465). Fund balances at the end of the year totalled £3,537,827 (2019 £3,568,005).

The charity received gift aid from its trading subsidiary Phoenix Pavilion Ltd of £25,565 (2019 £27,376).

The Trustees whilst acknowledging the deficit also re-emphasise the success in responding to the macro challenges, changing its operating models on multiple occasions. This approach managed the risk to staff, the public and the business.

The main challenge faced in the year was the impact of Covid-19 on the group’s activities. Lockdowns and restrictions resulted in the closure of the facilities at times during the period.

As noted above the re-opening of outdoor facilities and sections such as golf and angling before other social activities benefitted the charity in terms of an increased uptake in membership such that membership of these two sections exceeded expectations.

The real impact of Covid-19 was felt in the charity’s trading subsidiary Phoenix Pavilion Ltd. We were closed for 15 weeks of the financial year due to the lockdown, and in addition, the weeks we were open were significantly impacted by the restrictions forced upon us (rule of 6, social distancing, substantial meal requirements to buy alcohol etc.).

The group benefitted from government Covid grants where eligible including the Coronavirus Job Retention Scheme and “Eat Out to Help Out”.

The fact that the charity has come out of such a difficult time in the shape we are in is credit to everyone involved.

The charity’s principal funding sources are the general public.

Fundraising

The charity normally undertakes a minimal amount of fundraising (a weekly draw). In recognising the external business challenges, the Charity did initiate a successful GoFundMe targeting users of Ravenfield Park. Our policy remains - no commercial fundraisers are used and there is no pressure for anyone to donate or participate in fundraising activities.

5

Phoenix Sports and Recreation (Rotherham) (A Charitable Company Limited by Guarantee)

Report of the Trustees For the year end 30 September 2020

Going Concern

The trustees are aware of the year end net current liabilities of the company and group, partly due to the impact of the pandemic Covid-19 on the company’s activities as well as in part due to deferred income relating to 2020/21 subscriptions of £39,061. The Board of Trustees have considered the continuing impact of Covid-19 restrictions on the charitable company and group and have taken steps to ensure the charity and group has adequate financial resource to continue activities for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies.

Reserves

The Trustees review the reserve levels of the group at the end of each financial year as part of its budget planning process. This review encompasses the nature of income and expenditure streams, the need to match income with commitments and the nature of reserves along with necessary consideration/responses to developmental/change processes initiated in house or required by changes in national scenarios.

The trustees also recognise that there is a variation in income across the year and deemed that, variation not withstanding unrestricted reserves should not fall below £3,9850,000, that being the approximate equivalent to the net book value of fixed assets and three months operating expense.

The reserves as at 30 September 2020 were £3,537,827, of which £3,284 are restricted funds. Of these funds £3,578,324 can only be realised by disposing of tangible fixed assets.

Unrestricted reserves were £3,534,543, but included £3,578,324 of fixed assets, meaning that unrestricted free reserves were £43,781 overdrawn.

The Trustees constantly review opportunities, financial performance and budgets to identify opportunities to increase free reserves to the required level. This includes a review of utility costs, a review of the catering pricing structures and monies from “easements” on the golf course.

PLANS FOR FUTURE PERIODS

The charity plans to continue to provide the provision of the facilities for public use. In addition, the charity has engaged with a number of existing and new customers, exploring partnerships and further opportunities to utilise redundant land. The charity and trading arm have untapped potential and with a strong reputation on core offerings are upbeat on its capability to maximise income for the coming year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The company is a private company.

Recruitment and appointment of new trustees

The charity is managed by the trustees. The Trustees form the governing body of the charity and are responsible for ensuring the organisation is working within the bounds of the Memorandum and Articles.

New Trustees are appointed by the Board. New trustees are re-elected at the charity’s Annual General Meeting.

Our Trustees have a wealth and diversity of professional skills, experience and knowledge to contribute to the development of the organisation, and are committed to the concept and values of the charity.

Trustees are fully aware of their responsibilities regarding the organisation.

6

Phoenix Sports and Recreation (Rotherham) (A Charitable Company Limited by Guarantee)

Report of the Trustees For the year end 30 September 2020

On appointment new trustees are invited to have a tour of the charity’s facilities, are provided with an induction pack and are briefed by the Chairman and other trustees on their role and responsibilities. Trustees will receive appropriate training as required.

Organisational Structure

Day to day management of the charity is delegated to the Business Manager B Watkins with major decisions made by the Board of Trustees who meet monthly.

Arrangements for Setting the Pay of Key Management Personnel

The remuneration of the Business Manager is determined by the Board of Trustees and is based on market rates for the role.

Risk Assessment

The trustees have reviewed the major risks to the operation and are confident that all preventative measures that can be are in place.

The principal risks facing the charity are the obtaining of adequate funding and control over cash.

The emphasis on cash management whilst successful, in isolation does not position the charity to invest and extend its offerings. The trustees understand the criticality of cash and continue to focus on a number of opportunities to secure windfalls and strengthen partnerships that improve underlying operational results.

The Trustees review the cash flow projections at their regular meetings to ensure adequate resources are available.

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also the directors of Phoenix Sports and Recreation (Rotherham) for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:-

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

7 6

Phoenix Sports and Recreation (Rotherham) (A Charitable Company Limited by Guarantee)

Report of the Trustees For the year end 30 September 2020

In so far as the trustees are aware:-

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 4 May 2021 and signed on its behalf by:

Mr N Watkins – Trustee ..................................................................

8

Report of the Independent Auditor to the Trustees of Phoenix Sports and Recreation (Rotherham)

Opinion

We have audited the financial statements of Phoenix Sports and Recreation (Rotherham) for the year ended 30 September 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Company Balance Sheets, the Consolidated Statement of Cash Flows 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

9

Report of the Independent Auditor to the Trustees of Phoenix Sports and Recreation (Rotherham)

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 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that act.

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.

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

Use of our Report

This report is made solely to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Allotts Business Services Ltd Chartered Accountants Statutory Auditor The Old Grammar School 13 Moorgate Road Rotherham S60 2EN

4 May 2021

Allotts Business Services Ltd is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

10.

Phoenix Sports and Recreation (Rotherham)

Consolidated Statement of Financial Activities (Including Income and Expenditure Account) For the Year ended 30 September 2020

Note
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
TOTAL INCOME AND ENDOWMENTS
EXPENDITURE ON
Raising funds
7
Charitable activities
8
TOTAL EXPENDITURE
NET (EXPENDITURE) FOR THE YEAR
11
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Fund balances brought forward:
Net movement in funds
Fund balances carried forward
23		 Unrestricted
Funds
2020
£
4,776
545,286
654,993
5,142		 Restricted
Funds
2020
£
-
17,490
-
-
17,490
-
14,206
14,206
3,284
3,284
-
3,284		 Total
Funds
2020
£
4,776
562,776
654,993
5,142
1,227,687
621,535
636,330
1,257,865
(30,178)
(30,178)
3,568,005
(30,178)
3,537,827		 Total
Funds
2019
£
7,414
475,072
985,943
5,310
1,210,197 1,473,739
621,535
622,124		 808,578
721,626
1,243,659 1,530,204
(33,462) (56,465)
(33,462) (56,465)
3,568,005
(33,462)		 3,624,470
(56,465)
3,534,543 3,284 3,568,005

The notes attached form part of these financial statements.

11.

Phoenix Sports and Recreation (Rotherham) (Company number 09446920)

Consolidated and Company Balance Sheets

30 September 2020

Notes
FIXED ASSETS
Tangible Assets
13
Investments
14
CURRENT ASSETS
Stock
15
Debtors
16
Cash at bank and in hand
CREDITORS: falling due within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
Unrestricted Funds
Restricted Funds
TOTAL CHARITY FUNDS
23		 Group
2020
2019
£
£
3,578,324
3,601,736
-
-
3,578,324
3,601,736
14,532
18,640
31,090
36,898
163,635
132,353
209,257
187,891
(249,754)
(221,622)
(40,497)
(33,731)
3,537,827
3,568,005
3,537,827
3,568,005
3,534,543
3,568,005
3,284
-
3,537,827
3,568,005		 Group
2020
2019
£
£
3,578,324
3,601,736
-
-
3,578,324
3,601,736
14,532
18,640
31,090
36,898
163,635
132,353
209,257
187,891
(249,754)
(221,622)
(40,497)
(33,731)
3,537,827
3,568,005
3,537,827
3,568,005
3,534,543
3,568,005
3,284
-
3,537,827
3,568,005		 Company
2020
2019
£
£
3,578,324
3,601,736
1
1
3,578,325
3,601,737
-
-
58,638
29,050
126,471
86,251
185,109
115,301
(216,899)
(174,597)
(31,790)
(59,296)
3,546,535
3,542,441
3,546,535
3,542,441
3,543,251
3,542,441
3,284
-		 Company
2020
2019
£
£
3,578,324
3,601,736
1
1
3,578,325
3,601,737
-
-
58,638
29,050
126,471
86,251
185,109
115,301
(216,899)
(174,597)
(31,790)
(59,296)
3,546,535
3,542,441
3,546,535
3,542,441
3,543,251
3,542,441
3,284
-
3,601,737
-
29,050
86,251
115,301
(174,597)
(59,296)
3,542,441
3,542,441
3,542,441
-
3,568,005 3,546,535 3,542,441

For the year ending 30 September 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies but as this company is a charity, it is subject to audit under the Charities Act 2011.

Directors' responsibilities:

o The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476:

o The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies.

The financial statements were approved by the trustees on 4 May 2021 and are signed on its behalf by

Mr N Watkins - Trustee

12.

Phoenix Sports and Recreation (Rotherham)

Consolidated Statement of Cash Flows For the Year ended 30 September 2020

2020 2019
£ £
Cash flow from operating activities 72,005 35,248
Cash flow from investing activities
Investment income 5,142 5,310
Purchase of fixed assets (42,186) (71,084)
Sale of fixed assets 1,167 -
Cash used in investing activities (35,877) (65,774)
Cash flow from financing activities
Finance lease payments (4,846) (9,750)
Finance lease interest - (1,034)
Cash used in financing activities (4,846) (10,784)
Increase in cash and cash equivalents in the year 31,282 (41,310)
Cash and cash equivalents at the start of the year 132,353 173,663
Cash and cash equivalents at the end of the year 163,635 132,353
Reconciliation of Income and Expenditure to Cash Flow from Operating Activities
2020 2019
£ £
Net (expenditure) / income (30,178) (56,465)
Depreciation 65,598 61,282
Adjustment on disposal of fixed assets (5,417) -
Investment income (5,142) (5,310)
Finance lease interest - 1,034
Change in stock 4,108 (2,941)
Change in debtors 10,058 (9,304)
Change in creditors 32,978 46,952
72,005 35,248
Analysis of Cash and Cash Equivalents
2020 2019
£ £
Cash at bank and in hand 163,635 132,353
Non-Cash Transactions
2020 2019
£ £
New finance lease - 4,846

13.

Notes to the Financial Statements For the Year ended 30 September 2020

Phoenix Sports and Recreation (Rotherham)

1 STATUTORY INFORMATION

Phoenix Sports and Recreation (Rotherham) is a private charitable company, limited by guarantee, registered in England and Wales. The company's registered number and registered office address can be found in the reference and administrative details section of the trustees report. Its principal activity is the operation of a sports and recreation facility in furtherance of its charitable objects as listed in the Report of the Trustees.

The liability in respect of the guarantee is limited to £10 per member.

The presentation currency is pounds sterling and the accounts are rounded to the nearest £1.

2 ACCOUNTING POLICIES

The financial statements of the charitable company, 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 Companies Act 2006.

The financial statements have been prepared under the historical cost convention.

The charity constitutes a public benefit entity as defined by FRS102.

b) Going Concern

The trustees are aware of the year end net current liabilities of the company and group, partly due to deferred income relating to 2020/21 subscriptions of £39,061. The trustees have taken steps to ensure the group has adequate financial resource to continue activities over the next twelve months and have produced forecasts which show that the group can continue to operate within its financial resources for twelve months from the date of this report and management accounts indicate these projections should be achieved. Consequently the directors are confident that the financial statements are properly prepared on a going concern basis.

These financial statements consolidate the accounts of the charity and its subsidiary undertaking, which is made up to 30 September, on a line by line basis. Transactions between group companies are eliminated on consolidation. No Statement of Financial Activities is presented for the charity alone.

d) Fund Accounting

Funds held by the charity are either:

14.

Phoenix Sports and Recreation (Rotherham)

Notes to the Financial Statements

For the Year ended 30 September 2020

2 ACCOUNTING POLICIES

e) Income

Income is recognised in the Statement of Financial Activities (SoFA) when the charity has entitlement to the funds, any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Donations are recognised on a receivable basis (where there are no performance conditions), where it is probable that the income will be received and the amount can be measured reliably.

Grant income is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.

Membership generally runs to 30 September and income is recognised in the period to which it relates. Membership for some sporting sections runs to 31 March, but as these are seasonal summer sports with no activity after 30 September, the membership fees for these sections are recognised in the period to which the season relates.

Admissions, playing fees and trading income is recognised when goods or services have been supplied and entitlement is due.

Interest income is recognised on an accruals basis.

Where the donated good is a fixed asset it is measured at fair value unless it is impractical to measure this reliably, in which case the cost of the item to the donor is used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the charity's accounting policies.

g) Resources Expended

Expenditure is recognised where 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 for settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been categorised under headings that aggregate all costs 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. Expenditure is categorised under the following headings:

• Costs of other trading activities includes the costs of the charity's fundraising activities and the group's non-charitable trading subsidiary.

• Expenditure on charitable activities includes direct and indirect costs of delivering the group's charitable activities.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed they have been allocated based on the estimated use of resources.

The company makes contributions to the B&CE benefit scheme defined contribution scheme. The charge represents contributions paid by the company to the fund in respect of the year for current employees.

15.

Phoenix Sports and Recreation (Rotherham)

Notes to the Financial Statements

For the Year ended 30 September 2020

2 ACCOUNTING POLICIES

i) Corporation tax

The company is exempt from corporation tax on its charitable activities.

j) Tangible fixed assets

Individual tangible fixed assets costing £250 or more are capitalised and included at cost including any incidental expenses of acquisition.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write-off the cost of fixed assets, less their estimated residual value, over their expected useful life on the following basis:

Buildings over 50 years straight line Plant and machinery over 5-10 years straight line Fixtures and fittings over 5-10 years straight line

Assets acquired by donation are depreciated over their individually assessed estimated useful economic life at the date of donation.

k) Stocks

l) Debtors

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

m) Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

n) Hire purchase

Property, plant and equipment acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future finance charges, are included in creditors.

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease

16.

Phoenix Sports and Recreation (Rotherham)

Notes to the Financial Statements For the Year ended 30 September 2020

3 DONATIONS AND LEGACIES

Donations Unrestricted
Funds
2020
£
4,776
4,776		 Restricted
Funds
2020
£
-
-		 Total
Funds
2020
£
4,776
4,776		 Total
Funds
2019
£
7,414
7,414

The charity benefits from the involvement and support of its volunteers as outlined in the annual report. In accordance with FRS102 and the Charities SORP (FRS 102), the economic contribution of volunteers is not recognised in the accounts.

4
CHARITABLE ACTIVITIES
Income
Sporting and leisure activities:
Memberships
Admissions and playing fees
Grants
Sale of fixed assets
Expenditure:
Sporting and leisure activities
Direct costs (Note 8a)
Support costs (Note 8b)
5
OTHER TRADING ACTIVITIES
Fundraising draws and events
Other trading activities (note 14)
6
INCOME FROM INVESTMENTS
Bank interest
Rental income		 Unrestricted
Funds
2020
£
336,330
99,148
104,391
5,417
545,286
£
565,228
56,896
622,124
Unrestricted
Funds
2020
£
27,018
627,975
654,993
Unrestricted
Funds
2020
£
151
4,991
5,142		 Restricted
Funds
2020
£
-
-
17,490
-
17,490
£
14,206
-
14,206
Restricted
Funds
2020
£
-
-
-
Restricted
Funds
2020
£
-
-
-		 Total
Funds
2020
£
336,330
99,148
121,881
5,417
562,776
£
579,434
56,896
636,330
Total
Funds
2020
£
27,018
627,975
654,993
Total
Funds
2020
£
151
4,991
5,142		 Total
Funds
2019
£
335,450
129,705
9,917
-
475,072
£
659,163
62,463
721,626
Total
Funds
2019
£
25,555
960,388
985,943
Total
Funds
2019
£
319
4,991
5,310

17.

Phoenix Sports and Recreation (Rotherham)

Notes to the Financial Statements For the Year ended 30 September 2020

7 EXPENDITURE ON RAISING FUNDS

8 Fundraising draws and events
Other trading activities (note 14)
CHARITABLE EXPENDITURE
a) DIRECT COSTS
Staff costs
Grounds maintenance, equipment and other direct
sporting and leisure activity related costs
Security
Irrecoverable VAT
Insurance
Premises
Cleaning
Depreciation
Power
Finance costs
Other direct costs
b) SUPPORT COSTS
Staff costs
Hire of equipment
Advertising
Telephone
Cleaning
Postage and stationery
Power
Professional fees
Other support costs
Governance costs
Audit fees
Non-audit services
TOTAL CHARITABLE EXPENDITURE		 2020
£
23,700
597,835
621,535
2020
£
284,254
111,020
2,665
14,093
14,733
10,436
13,611
65,598
51,924
6,494
4,606
579,434
2020
£
31,584
1,369
420
5,987
716
3,087
2,464
2,537
1,503
4,350
2,879
56,896
636,330		 2019
£
21,000
787,578
808,578
2019
£
306,751
143,178
3,070
13,234
15,290
24,574
14,728
61,282
63,640
7,899
5,517
659,163
2019
£
34,084
1,391
600
3,662
775
4,436
3,350
1,509
4,176
4,325
4,155
62,463
721,626

18.

Phoenix Sports and Recreation (Rotherham)

Notes to the Financial Statements For the Year ended 30 September 2020

9
STAFF COSTS
2020
£
Salaries and wages
545,088
Social security costs
30,861
Pension costs
8,381
584,330
The above includes
Key management personnel remuneration
50,960
The average monthly head count of employees during the year, analysed by category, was:
Charitable activities
12
Trading subsidiaries
35
47
No employees earned over £60,000. (2019: None)		 2019
£
612,825
34,830
7,852
655,507
45,957
13
38
51

10 TRUSTEES' REMUNERATION AND BENEFITS

C R Brown, trustee received remuneration of £550 for the year ended 30 September 2020 (2019 £1,100) for accounting services provided to the charity. The payment is allowable under the constitution of the charity.

Trustees' expenses

Other than as disclosed above there were no trustees' expenses paid for the year ended 30 September 2020 nor for the period ended 30 September 2019.

11 NET (EXPENDITURE) FOR THE YEAR

2020 2019
This is stated after charging:- £ £
Auditors' remuneration (group) - audit services 4,350 4,325
- non-audit services 2,879 4,155
Interest - 1,034
Depreciation 65,598 61,282
Operating lease rentals 1,369 1,391

19.

Notes to the Financial Statements For the Year ended 30 September 2020

Phoenix Sports and Recreation (Rotherham)

12 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Other trading activities
Investments
TOTAL INCOME AND ENDOWMENTS
EXPENDITURE ON
Raising funds
Charitable activities
TOTAL EXPENDITURE
NET INCOME FOR THE YEAR
Transfers between funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Fund balances brought forward:
Net movement in funds
Fund balances carried forward		 Unrestricted
Funds
2020
£
7,414
475,072
985,943
5,310		 Restricted
Funds
2020
£
-
-
-
-
-
-
-
-
-
-
-		 Total
Funds
2019
£
7,414
475,072
985,943
5,310
1,473,739
808,578
721,626
1,530,204
(56,465)
-
(56,465)
3,624,470
(56,465)
3,568,005		 Total
Funds
2018
£
42,255
432,958
823,327
6,603
1,473,739 1,305,143
808,578
721,626		 671,013
658,919
1,530,204 1,329,932
(56,465)
-		 (24,789)
-
(56,465) (24,789)
3,624,470
(56,465)		 3,649,259
(24,789)
3,568,005 - 3,624,470

20.

Phoenix Sports and Recreation (Rotherham)

Notes to the Financial Statements For the Year ended 30 September 2020

13 TANGIBLE ASSETS Company and Group

COST
At 1 October 2019
Additions
Disposals
At 30 September 2020
DEPRECIATION
At 1 October 2019
Charge for year
Eliminated on disposal
At 30 September 2020
NET BOOK VALUE
At 30 September 2020
At 30 September 2019		 Land
£
1,590,000
-
-
1,590,000
-
-
-
-
1,590,000
1,590,000		 Buildings
£
2,023,545
6,635
-
2,030,180
125,279
45,095
-
170,374
1,859,806
1,898,266		 Plant and
machinery
£
127,902
27,986
(3,333)
152,555
40,102
14,598
(3,333)
51,367
101,188
87,800		 Fixtures
and fittings
£
37,217
7,565
(7,110)
37,672
11,547
5,905
(7,110)
10,342
27,330
25,670		 Total
£
3,778,664
42,186
(10,443)
3,810,407
176,928
65,598
(10,443)
232,083
3,578,324
3,601,736

Included in the above is plant and machinery held under hire purchase with net book value of £Nil (2019 £9,891) and depreciation charge for the year of £Nil (2019 £2,937)

14 INVESTMENTS

Shares in subsidiaries at cost
At 1 October 2019
Additions
At 30 September 2020		 Group
2020
2019
£
£
-
-
-
-
-
-		 Company
2020
2019
£
£
1
1
-
-
1
1		 Company
2020
2019
£
£
1
1
-
-
1
1
1

The charity owns the entire ordinary share capital of Phoenix Pavilion Limited, a company registered in England and Wales (company number 09736674).

The subsidiary operates the trading activities previously associated with the Phoenix Sports and Social Club, Brinsworth, Rotherham.

The results of the company are included within these consolidated financial statements on a line by line basis in the appropriate income and expenditure headings.

21.

Phoenix Sports and Recreation (Rotherham)

Notes to the Financial Statements For the Year ended 30 September 2020

14 INVESTMENTS (continued)

A summary of the subsidiary's trading results is shown below.

Turnover
Cost of sales
Gross profit
Grants
Administrative expenses
non-group
group
Interest received and other income
Net (loss)/profit for the year
Retained earnings brought forward
Gift Aid distribution
Retained earnings carried forward
Non-group expenditure above
Cost of sales
Administrative expenses
Assets
Liabilities
Net (liabilities)/assets
Called up share capital
Profit and loss account		 2020
£
627,975
(260,681)
367,294
73,478
(337,154)
(112,341)
16
(8,707)
25,565
(25,565)
(8,707)
(260,681)
(337,154)
(597,835)
59,546
(68,252)
(8,706)
1
(8,707)
(8,706)		 2019
£
960,388
(386,684)
573,704
-
(400,894)
(147,275)
30
25,565
27,376
(27,376)
25,565
(386,684)
(400,894)
(787,578)
79,263
(53,697)
25,566
1
25,565
25,566
15 STOCKS
Goods for resale		 Group
2020
2019
£
£
14,532
18,640
14,532
18,640		 Company
2020
2019
£
£
-
-
-
-		 Company
2020
2019
£
£
-
-
-
-
-

22.

Phoenix Sports and Recreation (Rotherham)

Notes to the Financial Statements For the Year ended 30 September 2020

16 DEBTORS
Trade debtors
Amount owed by subsidiary
Other debtors
Prepayments and accrued income		 Group
2020
2019
£
£
875
3,042
-
-
6,674
4,514
23,541
29,342
31,090
36,898		 Company
2020
2019
£
£
-
-
35,396
6,671
6,674
4,514
16,568
17,865
58,638
29,050

17 CREDITORS (Amounts falling due within one year)

Trade creditors
Amount due to subsidiary
Social security and other tax
Other creditors
Accruals
Deferred income
Hire purchase		 Group
2020
2019
£
£
59,195
53,303
-
-
30,299
32,179
23,667
23,466
63,975
73,527
72,618
34,301
-
4,846
249,754
221,622		 Company
2020
2019
£
£
36,125
30,993
-
-
29,585
31,209
23,667
23,466
59,361
58,069
68,161
26,014
-
4,846
216,899
174,597

The hire purchase was secured by a charge over the related plant and machinery

18 DEFERRED INCOME

Balance brought forward
Income received
Income released to SOFA
Balance carried forward		 Group
2020
2019
£
£
34,301
37,323
72,618
34,301
(34,301)
(37,323)
72,618
34,301		 Company
2020
2019
£
£
26,014
24,906
68,161
26,014
(26,014)
(24,906)
68,161
26,014		 Company
2020
2019
£
£
26,014
24,906
68,161
26,014
(26,014)
(24,906)
68,161
26,014
26,014

Deferred income relates to membership fees received in advance and other income where entitlement is not due until the next period.

Phoenix Sports and Recreation (Rotherham)

23.

Notes to the Financial Statements For the Year ended 30 September 2020

19 CONTINGENT LIABILITIES

Former employee claim 2020
£
-		 2019
£
5,571

20 PENSION COSTS

The company makes payments on behalf of employees to the B&CE benefit scheme. It is a funded defined contribution scheme, with the assets held in separate trustee-administered funds.

21 RESULTS OF PARENT CHARITY

Income
Gift aid donation from trading subsidiary
Expenditure
Increase / (Decrease) in funds
Total funds brought forward
Total funds carried forward
Restricted funds
Unrestricted funds		 2020
£
907,051
25,565
(928,522)
4,094
3,542,441
3,546,535
3,284
3,543,251
3,546,535		 2019
£
976,376
27,376
(1,058,406)
(54,654)
3,597,095
3,542,441
-
3,542,441
3,542,441

24.

Phoenix Sports and Recreation (Rotherham)

Notes to the Financial Statements For the Year ended 30 September 2020

22 MOVEMENTS IN FUNDS

Unrestricted funds
General funds
Unrestricted funds
General funds
Total funds		 Opening
Balance
£
3,568,005
3,568,005
-
-
3,568,005		 Incoming
Resources
£
1,210,197
1,210,197
17,490
17,490
1,227,687		 Outgoing
Resources
£
(1,243,659)
(1,243,659)
(14,206)
(14,206)
(1,257,865)		 Transfers &
Gains/losses
£
-
-
-
-
-		 Closing
Balance
£
3,534,543
3,534,543
3,284
3,284
3,537,827

Unrestricted funds are the retained surpluses of the group and are available to be used for any purpose specified within the trust's objectives and are the only funds that are available for use at the discretion of the trustees.

Restricted funds represent unspent balances on grants received for specific projects. The restrictions are generally imposed by the funding body and often include the type of expenditure allowed or a specific activity or purpose to be supported.

23 ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS

Fund balances at 30 September 2020 are represented by

Group
Tangible fixed assets
Current assets
Creditors due within one year
Net assets
Company
Tangible fixed assets
Investments
Current assets
Creditors due within one year
Net assets		 Restricted
Funds
£
-
3,284
-
3,284
Restricted
Funds
£
-
-
3,284
-
3,284		 Unrestricted
Funds
£
3,578,324
205,973
(249,754)
3,534,543
Unrestricted
Funds
£
3,578,324
1
181,825
(216,899)
3,543,251		 Total
£
3,578,324
209,257
(249,754)
3,537,827
Total
£
3,578,324
1
185,109
(216,899)
3,546,535

Phoenix Sports and Recreation (Rotherham)

25.

Notes to the Financial Statements For the Year ended 30 September 2020

23 ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS (CONTINUED)

Fund balances at 30 September 2019 are represented by

Group
Tangible fixed assets
Current assets
Creditors due within one year
Net assets
Company
Tangible fixed assets
Investments
Current assets
Creditors due within one year
Net assets		 Restricted
Funds
£
-
-
-
-
Restricted
Funds
£
-
-
-
-
-		 Unrestricted
Funds
£
3,601,736
187,891
(221,622)
3,568,005
Unrestricted
Funds
£
3,601,736
1
115,301
(174,597)
3,542,441		 Total
£
3,601,736
187,891
(221,622)
3,568,005
Total
£
3,601,736
1
115,301
(174,597)
3,542,441

24 RELATED PARTY TRANSACTIONS

There we no related party transactions during the year (2019: nil).