**REGISTERED COMPANY NUMBER: CE009368 (England and Wales) REGISTERED CHARITY NUMBER: 1170729**
Report of the Trustees and Financial Statements for the Year Ended 31 March 2021
for
Holywell Leisure Centre Canolfan Hamdden Treffynnon
J V Banks Chartered Accountants and Statutory Auditors Banks House Paradise Street Rhyl Denbighshire LL18 3LW
Holywell Leisure Centre Canolfan Hamdden Treffynnon
## Contents of the Financial Statements for the Year Ended 31 March 2021
||Page|
|---|---|
|Report of the Trustees|1 to 4|
|Report of the Independent Auditors|5 to 7|
|Statement of Financial Activities|8|
|Statement of Financial Position|9|
|Statement of Cash Flows|10|
|Notes to the Statement of Cash Flows|11|
|Notes to the Financial Statements|12 to 18|
|Detailed Statement of Financial Activities|19 to 20|
Holywell Leisure Centre Canolfan Hamdden Treffynnon
## Report of the Trustees
## for the Year Ended 31 March 2021
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. 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). Holywell Leisure Centre - Canolfan Hamdden Treffynnon (HLC-CHT) is a Charitable Incorporated Organisation (CIO) registered with the Charity Commission (registration number 1170729). Its constitution was adopted on 12 October 2016 and it was entered on the Charity Commission Register on 13 December 2016. The transfer of the asset from Flintshire County Council (FCC) was completed on 1 April 2017.
## **Structure, governance and management Type of governing document**
The charity is governed by its constitution dated 12 October 2016. The charity is a Charitable Incorporated Organisation (CIO) Registered charity number 1170729.
## **Trustees**
The working group was set up in 2015 by six volunteers and the centre manager who negotiated the transfer of the asset from Flintshire County Council. They gained charitable status in December 2016 and had 7 trustees as of March 2021 who were the only voting members. Since then, Tudor Jones has retired as Chair (May 2021) and Paul Islip has succeeded him. We have also recruited 2 new Trustees this Spring, Dr Mark Rowlands and Carmel McCarth. The board is assisted by non-voting voluntary associates who provide specialist and expert assistance (when required) and the contracted centre management team of three.
## **The board members during the year and since the year end are:**
|Tudor Jones – Chair|appointed|12 Oct 16 resigned 26 May 21|
|---|---|---|
|Paul Islip – Secretary|appointed|12 Oct 16|
|Magali Lovell-Pascal – Treasurer appointed||12 Oct 16|
|Anne Blundell|appointed|12 Oct 16 resigned 26 May 21|
|Helen Crich|appointed|1 Apr 17|
|Daniel Oliver|appointed|12 Oct 16|
|Adam Parry|appointed|12 Oct 16|
|Theresa Murray|appointed|21 Feb 19|
|Carmel McCarth|appointed|1 Apr 21|
|Dr Mark Rowlands|appointed|1 Apr 21|
There must be at least four trustees with the maximum number at twelve at any given time. The board of trustees meets once a month to direct the management and governance of the enterprise. This includes reviews of matters relating to health and safety, finance, risks, maintenance, staff, volunteers, activities, marketing, compliance with regulations, grants and the development of the business. There are specific subcommittees for the oversight of finance, human resources and marketing.
The trustees oversee the affairs of the CIO and exercise all the powers of the CIO including the appointment of new trustees, staff and consultants.
## **Objectives of the CIO**
The objectives of the charity are to provide a range of leisure, sporting, health and social facilities primarily run by the community for the community, seeking to deliver these activities with inclusivity for all. In so doing, it aims to cater and improve upon the physical and mental wellbeing of all its members and visitors whatever their economic circumstances.
## **Activities of the CIO**
The centre provides a wide range of various competitive and personal fitness sports, leisure pursuits, social activities and health benefits to all age groups and abilities and strives to be as inclusive as possible. Users can access a variety of facilities, swimming pools, sports hall, community/dance studio, café, soft play, squash courts, library, meeting rooms, health suite and fitness gym as well as access to sports facilities at Ysgol Treffynnon High School (sports hall and 4G AstroTurf pitch).
Page 1
Holywell Leisure Centre Canolfan Hamdden Treffynnon
Report of the Trustees for the Year Ended 31 March 2021
## **Public benefit**
The trustees have referred to guidance contained in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in planning future activities. In particular they have considered how the activities offered will contribute to the aims and objectives set. The trustees are committed to equal access for all.
## **Investment policy**
The trustees intend that all future surplus income is retained by HLC-CHT and reinvested back into the facility. Funds are held by HSBC which although at low interest rates allow for easy access and management of accounts.
## **Reserves policy**
The centre has a general contingency fund to guard against unforeseen events. 3% of each months’ balance was set aside for this purpose however this process was paused in May 2020 due to the draw on funds created by the pandemic. We used some of the fund to support the centre and the current value is £15,723. We plan to resume adding the 3% to the fund each month from March 2022.
## **Restricted funds**
We had one restricted grant of £100,000 for capital works provided through the European Regional Development Fund via the Welsh Government in 2019 for the replacement of boilers, pumps, control systems and related works. Payments were made on presentation of invoices and were settled in total in January 2021.
## **Commitments and liabilities**
There are legal requirements for the business to meet predetermined standards and for regular testing and certification related to the safety of our customers and workforce. These include chlorine levels in the swimming pool, Legionella in the water supply, alarm testing and fire equipment inspections. The fitness gym loan, which was taken out five years ago, concludes this financial year with a balance of £11,825 paid in January 2021.
## **Achievement and performance Transfer of ownership**
HLC-CHT took control of the leisure centre on 1 April 2017 from Flintshire County Council with a lease of 27 years, 2017 – 2044. Achievements prior to March 2020 can be reviewed in previous annual reports of the charity.
## **Achievements in the year ended 31 March 2021**
This financial year was seriously impacted by the Covid pandemic and the centre spent periods completely closed , or operating under Welsh Government restrictions.
|20 March 20 to 16 August 20|– Closed|
|---|---|
|17 August 20 to 23 October 20|– Open under Covid restrictions|
|24 October 20 to 8 November 20|– Closed|
|9 November 20 to 19 December 20|– Open under Covid restrictions|
|20 December 20 to 3 May 21|– Closed|
## **Covid 19 restrictions and impact**
Each time the centre closed, we cleaned and mothballed all areas ready for the next re-opening announcement from the Welsh Government. The management team did an excellent job to ensure that each time the centre opened, it could operate under the latest Covid restrictions. For example:
- One way system throughout the centre
- Social distancing
- Specific activities allowed and others not.
- Restricted numbers for each activity.
Throughout this period, the health and safety of our staff and customers was paramount in all the decisions made.
Page 2
Holywell Leisure Centre Canolfan Hamdden Treffynnon
## Report of the Trustees
## for the Year Ended 31 March 2021
From the outset of the Covid restrictions, we took action to reduce costs to ensure the future sustainability of the business by taking the following measures:
- Reduce outgoings
- Freeze all direct debits (customers have been incredibly supportive with only a handful of complaints received)
- Reduce services and purchase costs
- Reduce immediate staffing costs and utilise the Coronavirus Job Retention Scheme (Furlough)
- To reduce future staffing costs by granting holiday leave during furlough periods.
- Apply for every grant support available from the UK Government, Welsh Government, Local Authority and Town Council.
Given the ever changing Covid situation, and the potential for irreparable damage to the business, the board decided to be clear on our actions should we be faced with insolvency.
Should the financial forecast show that in 3 months’ time, of any given date, that the centre is no longer viable and has exhausted all reserves and financial support, then the process to wind up the charity would begin. It would be our intention to be debt free at the point of closure and the landlord, sub-tenants and staff would be informed at the start of the process. Prior to this point, the trustees, management team and staff will do all they can to remain viable.
Thankfully, the trigger was not reached in the financial year and we remained a viable business, albeit with significant Covid support funding.
## **Financial impact in the year**
In a normal trading year, the centre would have expected sales income to be in the region of £695,000. Sales income in this year due to the impact of Covid was £83,786, a reduction of 87%.
“Income Loss Support”, “Economic Resilience Funding” and the “Coronavirus Job Retention Scheme” were all successfully applied for from the Welsh and UK Governments and were essential to our survival. We worked closely with Flintshire County Council to provide transparency of our finances by completing a quarterly “Financial Tracker” to demonstrate the support required. During the spring, we were also approached by the local NHS Maternity Unit to take over part of the centre to run their operations from April to August for which we received £7,800 rent.
The statement of Financial Activities below confirms a recorded total income to 31 March 2021 of £698,891 in sales turnover and grant support. This includes sales income of £83,786 with grants of £597,554 in total. Expenditure totalled £637,362 which has resulted in a surplus of £61,529 of which; after three years gives us a contingency bank balance of £15,723 and a carry forward of £165,178 (Business Account) and £6,094 (Grants Account) which is a total of £186,994 as of 31 March 2021.
There is also £31,563 release from High School Astroturf reserve (a fund we put aside to eventually replace the pitch surface that is no longer required)
This was a remarkable result under the circumstances and reflects the work that the Board and Management team instigated to reduce costs, safely manage the closures and openings of the centre under Covid restrictions and successfully apply for Covid support funding.
## **Current financial situation**
At the time of writing this report, the centre has regained 78% of the pre-Covid income and is on track to achieve the 100% target by the end of March 2022 at the latest. We still operate under people capacity restrictions in certain areas, such as swimming, however we have also introduced some new income streams such as new classes (Boot Camp, Yoga, Spin) and partnerships with the local Health Board.
## **Local grant funding**
In addition to the Government “Income Loss Support” funding which continues to the end of March 2022, we also continue to receive grants from the local town and county councils Flintshire County Council - £90,357
Holywell Town Council £12,000
We have also recently approached 13 local village councils for support and have received £2,000 to date.
Page 3
Holywell Leisure Centre Canolfan Hamdden Treffynnon
Report of the Trustees for the Year Ended 31 March 2021
## **Future plans**
Throughout the pandemic and up to the present date, the board and management have continued to meet either by Zoom or a blended meeting of face to face and Zoom and staff have been kept up to date with monthly newsletters. Our main focus this year has been to restore all activities as quickly and as safely as possible for the health, social and wellbeing benefit of the local community after spending over a year under lockdown restrictions.
As well as introducing new classes and facilities, we have some exciting new plans to improve the centre, the overall offer to the customer and our income.
- The current centre manager and admin manager (Chris and Jill Travers) retired at the end of the year. One of the current deputy managers has been appointed to take over and we are using the opportunity to re-structure the management team.
- We are advertising for 4 new trustees to strengthen the current board of 8.
- We continue to search and apply for appropriate grant funding.
- We are planning significant investment in a new health suite and spa which will be as accessible to everyone as possible. This will increase income and be financed from a low cost loan provided through the County Council.
- We have received the low cost “Bounceback Loan” of £50,000 and will use this to further increase income by providing new equipment next year.
- We have engaged the services of a marketing company to ensure that all promotions, facilities and classes are advertised to the local community on social media, print and banners.
- The 5-aside pitch will have a new surface installed in the spring, all funded by Flintshire County Council.
- We look to develop closer business and local organisation partnerships.
We are currently preparing our new 5 year business plan and assume that there will no longer be any Covid support funding from March 2022 onwards. The board and management team are confident that the new staff structure, income initiatives and greater inclusivity of the centre will secure the future of the charity for the benefit of the community as a whole.
Paul Islip Chair of Trustees 31 December 2021
Page 4
Report of the Independent Auditors to the Trustees of Holywell Leisure Centre Canolfan Hamdden Treffynnon
## **Opinion**
We have audited the financial statements of Holywell Leisure Centre Canolfan Hamdden Treffynnon (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Statement of Financial Position, the 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 (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:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 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**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **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.
Page 5
Report of the Independent Auditors to the Trustees of Holywell Leisure Centre Canolfan Hamdden Treffynnon
## **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:
- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
- the charitable company has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
## **The extent to which the audit was considered capable of detecting irregularities including fraud**
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; -we identified the laws and regulations applicable to the company through discussions with trustees and other management, and from our commercial knowledge and experience of the sector;
-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act 2011, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
Page 6
Report of the Independent Auditors to the Trustees of Holywell Leisure Centre Canolfan Hamdden Treffynnon
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
-performed analytical procedures to identify any unusual or unexpected relationships;
-tested journal entries to identify unusual transactions;
-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
-investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-agreeing financial statement disclosures to underlying supporting documentation;
-reading the minutes of meetings of those charged with governance;
-enquiring of management as to actual and potential litigation and claims; and
-reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
## **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 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 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.
C E Davies
J V Banks Chartered Accountants and Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Banks House Paradise Street Rhyl Denbighshire LL18 3LW
31 December 2021
Page 7
## Holywell Leisure Centre Canolfan Hamdden Treffynnon
## Statement of Financial Activities
## for the Year Ended 31 March 2021
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
Other trading activities
3
Investment income
4
**Total**
**EXPENDITURE ON**
Raising funds
5
**NET INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|31.3.21
Unrestricted
fund
£
597,554
83,786
17,551
698,891
637,362
61,529
138,939
200,468|31.3.20
Total
funds
£
134,072
663,296
27,914|
|---|---|---|
|||825,282
792,747|
|||32,535
106,404|
|||138,939|
The notes form part of these financial statements
Page 8
## Holywell Leisure Centre Canolfan Hamdden Treffynnon
## Statement of Financial Position 31 March 2021
|Notes
**FIXED ASSETS**
Tangible assets
11
**CURRENT ASSETS**
Stocks
12
Debtors
13
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
14
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**CREDITORS**
Amounts falling due after more than one
year
15
**NET ASSETS**
**FUNDS**
17
Unrestricted funds
**TOTAL FUNDS**|31.3.21
Unrestricted
fund
£
292,468
200
93,140
218,759
312,099
(98,437)
213,662
506,130
(305,662)
200,468
200,468
200,468|31.3.20
Total
funds
£
60,673
600
35,313
272,566
308,479
(146,575)
161,904
222,577
(83,638)
138,939
138,939
138,939|
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.
The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.
The trustees acknowledge their responsibilities for
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.
The financial statements were approved by the Board of Trustees and authorised for issue on 31 December 2021 and were signed on its behalf by:
Paul Islip Chair of Trustees
The notes form part of these financial statements
Page 9
## Holywell Leisure Centre Canolfan Hamdden Treffynnon
## Statement of Cash Flows
|for the Year Ended 31 March 2021
Notes
**Cash flows from operating activities**
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
**Cash flows from financing activities**
New loans in year
Loan repayments in year
Net cash provided by/(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**|31.3.21
£
157,859
(1,680)
156,179
(249,903)
62
(249,841)
50,000
(10,145)
39,855
(53,807)
272,566
218,759|31.3.20
£
194,205
-
194,205
(26,845)
175
(26,670)
-
(15,768)
(15,768)
151,767
120,799
272,566|
|---|---|---|
The notes form part of these financial statements
Page 10
Holywell Leisure Centre Canolfan Hamdden Treffynnon
## Notes to the Statement of Cash Flows
for the Year Ended 31 March 2021
## **1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net income for the reporting period (as per the Statement**
**of Financial Activities)**
**Adjustments for:**
Depreciation charges
Interest received
Interest paid
Decrease in stocks
(Increase)/decrease in debtors
Increase in creditors
**Net cash provided by operations**|31.3.21
£
61,529
18,108
(62)
1,680
400
(57,827)
134,031
157,859|31.3.20
£
32,535
9,970
(175)
-
-
6,664
145,211
194,205|
|---|---|---|
## 2. **ANALYSIS OF CHANGES IN NET FUNDS**
|**Net cash**
Cash at bank and in hand
**Debt**
Debts falling due within 1 year
Debts falling due after 1 year
**Total**|At 1.4.20
£
272,566
272,566
(10,145)
-
(10,145)
262,421|Cash flow
£
(53,807)
(53,807)
10,145
(50,000)
(39,855)
(93,662)|At 31.3.21
£
218,759
218,759
-
(50,000)
(50,000)
168,759|
|---|---|---|---|
The notes form part of these financial statements
Page 11
Holywell Leisure Centre Canolfan Hamdden Treffynnon
Notes to the Financial Statements
for the Year Ended 31 March 2021
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
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.
## **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.
## **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.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 20% on reducing balance Fixtures and fittings - 20% on reducing balance
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **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.
## **Hire purchase and leasing commitments**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
## **Pension costs and other post-retirement benefits**
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
continued...
Page 12
Holywell Leisure Centre Canolfan Hamdden Treffynnon
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
|**2.**
**GRANTS, DONATIONS AND LEGACIES**
Grants
CJRS
Grants received, included in the above, are as follows:
Other grants
**3.**
**OTHER TRADING ACTIVITIES**
Sales
**4.**
**INVESTMENT INCOME**
Rents received
Deposit account interest
**5.**
**RAISING FUNDS**
**Other trading activities**
Opening stock
Purchases
Closing stock
Bad debts
Support costs||31.3.21
£
423,306
174,248
597,554
31.3.21
£
423,306
31.3.21
£
83,786
31.3.21
£
17,489
62
17,551
31.3.21
£
600
1,434
(200)
1,670
633,858
637,362||31.3.20
£
134,072
-
134,072
31.3.20
£
134,072
31.3.20
£
663,296
31.3.20
£
27,739
175
27,914
31.3.20
£
600
6,081
(600)
-
786,666
792,747|
|---|---|---|---|---|
||||||
||||||
||||||
||||||
||||||
continued...
Page 13
Holywell Leisure Centre Canolfan Hamdden Treffynnon
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
## **6. SUPPORT COSTS**
|Other trading activities|Finance
£
3,930|Other
£
622,876|Governance
costs
£
7,052|Totals
£
633,858|
|---|---|---|---|---|
## **7. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
|Auditors' remuneration
Depreciation - owned assets
Hire of plant and machinery
Other operating leases|31.3.21
£
1,896
18,108
7,825
827|31.3.20
£
1,800
9,969
8,016
827|
|---|---|---|
## **8. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.
## **9. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs|31.3.21
£
338,928
14,805
38,440
392,173|31.3.20
£
401,908
21,319
44,295|
|---|---|---|
|||467,522|
The average monthly number of employees during the year was as follows:
|Leisure centre staff|31.3.21
38|31.3.20
40|
|---|---|---|
No employees received emoluments in excess of £60,000.
continued...
Page 14
Holywell Leisure Centre Canolfan Hamdden Treffynnon
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
## **10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|**INCOME AND ENDOWMENTS FROM**
Donations and legacies
Other trading activities
Investment income
**Total**
**EXPENDITURE ON**
Raising funds
**NET INCOME**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED**
**FORWARD**
**TANGIBLE FIXED ASSETS**
**COST**
At 1 April 2020
Additions
At 31 March 2021
**DEPRECIATION**
At 1 April 2020
Charge for year
At 31 March 2021
**NET BOOK VALUE**
At 31 March 2021
At 31 March 2020|
Short
leasehold
£
22,967
240,949
263,916
957
8,989
9,946
253,970
22,010|Plant and
machinery
£
63,435
8,954
72,389
29,046
8,264
37,310
35,079
34,389|Fixtures
and
fittings
£
8,348
-
8,348
4,074
855
4,929
3,419
4,274|Unrestricted
fund
£
134,072
663,296
27,914
825,282
792,747
32,535
106,404
138,939
Totals
£
94,750
249,903
344,653
34,077
18,108
52,185
292,468
60,673|
|---|---|---|---|---|
||||||
||||||
||||||
||||||
||||||
## **11. TANGIBLE FIXED ASSETS**
continued...
Page 15
Holywell Leisure Centre Canolfan Hamdden Treffynnon
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
|**12.**
**STOCKS**
31.3.21
£
Stocks
200
**13.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
31.3.21
£
Trade debtors
12,374
Prepayments and accrued income
80,766
93,140
**14.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
31.3.21
£
Other loans (see note 16)
-
Trade creditors
59,388
Social security and other taxes
2,906
Other creditors
4,108
Accruals and deferred income
30,139
Accrued expenses
1,896
98,437
**15.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
31.3.21
£
Bank loans (see note 16)
50,000
Accruals and deferred income
31,437
Deferred government grants
224,225
305,662
**16.**
**LOANS**
An analysis of the maturity of loans is given below:
31.3.21
£
Amounts falling due within one year on demand:
Other loans
-
Amounts falling due between two and five years:
Bank loans - 2-5 years
50,000||31.3.20
£
600
31.3.20
£
18,701
16,612|
|---|---|---|
|||35,313|
|||31.3.20
£
10,145
29,873
6,230
4,866
90,537
4,924|
|||146,575|
|||31.3.20
£
-
63,000
20,638|
|||83,638|
|||31.3.20
£
10,145|
|||-|
continued...
Page 16
Holywell Leisure Centre Canolfan Hamdden Treffynnon
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
## **17. MOVEMENT IN FUNDS**
|At 1.4.20
£
**Unrestricted funds**
General fund
138,939
**TOTAL FUNDS**
138,939
Net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
698,891
**TOTAL FUNDS**
698,891
**Comparatives for movement in funds**
At 1.4.19
£
**Unrestricted funds**
General fund
106,404
**TOTAL FUNDS**
106,404
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
825,282
**TOTAL FUNDS**
825,282|Net
movement
in funds
£
61,529
61,529
Resources
expended
£
(637,362)
(637,362)
Net
movement
in funds
£
32,535
32,535
Resources
expended
£
(792,747)
(792,747)|At
31.3.21
£
200,468
200,468
Movement
in funds
£
61,529
61,529
At
31.3.20
£
138,939
138,939
Movement
in funds
£
32,535
32,535|
|---|---|---|
continued...
Page 17
Holywell Leisure Centre Canolfan Hamdden Treffynnon
Notes to the Financial Statements - continued for the Year Ended 31 March 2021
## **17. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|At 1.4.19
£
106,404
106,404|Net
movement
in funds
£
94,064
94,064|At
31.3.21
£
200,468|
|---|---|---|---|
||||200,468|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
Resources
resources
expended
£
£
1,524,173
(1,430,109)
1,524,173
(1,430,109)|Movement
in funds
£
94,064
94,064|
|---|---|---|
## **18. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 March 2021.
Page 18
## Holywell Leisure Centre Canolfan Hamdden Treffynnon
|Detailed Statement of Financial Activities
for the Year Ended 31 March 2021
**INCOME AND ENDOWMENTS**
**Grants, donations and legacies**
Grants
CJRS
**Other trading activities**
Sales
**Investment income**
Rents received
Deposit account interest
**Total incoming resources**
**EXPENDITURE**
**Other trading activities**
Opening stock
Purchases
Bad debts
Closing stock
**Support costs**
**Finance**
Bank charges
Bank interest
**Other**
Wages
Social security
Pensions
Hire of plant and machinery
Other operating leases
Rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Sundries
Carried forward|31.3.21
£
423,306
174,248
597,554
83,786
17,489
62
17,551
698,891
600
1,434
1,670
(200)
3,504
2,250
1,680
3,930
338,928
14,805
38,440
7,825
827
6,892
20,537
100,328
3,847
447
-
532,876|31.3.20
£
134,072
-
134,072
663,296
27,739
175
27,914
825,282
600
6,081
-
(600)
6,081
3,772
-
3,772
401,908
21,319
44,295
8,016
827
28,911
27,317
118,373
1,600
1,977
82
654,625|
|---|---|---|
This page does not form part of the statutory financial statements
Page 19
## Holywell Leisure Centre Canolfan Hamdden Treffynnon
## Detailed Statement of Financial Activities for the Year Ended 31 March 2021
|**Other**
Brought forward
Staff training
Cleaning
Chemicals
Work wear
Service contracts
Licenses
IT hardware and software
Repairs and renewals
Travel
External instructors
Short leasehold
Plant and machinery
Fixtures and fittings
**Governance costs**
Auditors' remuneration
Accountancy and legal fees
Legal fees
Total resources expended
**Net income**|31.3.21
£
532,876
377
10,106
4,328
-
15,571
4,246
19,123
17,284
-
857
8,989
8,264
855
622,876
1,896
3,466
1,690
7,052
637,362
61,529|31.3.20
£
654,625
4,217
7,742
8,841
1,695
14,447
4,413
8,492
58,269
31
3,101
957
7,944
1,069|
|---|---|---|
|||775,843
1,800
2,285
2,966|
|||7,051|
|||792,747|
|||32,535|
This page does not form part of the statutory financial statements
Page 20