``` REGISTERED CHARITY NUMBER: 1170729 ``` ``` Report of the Trustees and Audited Financial Statements for the Year Ended 31 March 2022 ``` ``` for ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## `Contents of the Financial Statements for the Year Ended 31 March 2022` ||`Page`| |---|---| |`Report of the Trustees`|`1 to 6`| |`Report of the Independent Auditors`|`7 to 10`| |`Statement of Financial Activities`|`11`| |`Balance Sheet`|`12`| |`Cash Flow Statement`|`13`| |`Notes to the Cash Flow Statement`|`14`| |`Notes to the Financial Statements`|`15 to 21`| |`Detailed Statement of Financial Activities`|`22 to 23`| ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## `Report of the Trustees` ## `for the Year Ended 31 March 2022` ``` Thetrustees,presenttheirreportwiththefinancialstatementsofthecharityfortheyearended31 March 2022.ThetrusteeshaveadoptedtheprovisionsofAccountingandReportingbyCharities:Statement of RecommendedPracticeapplicabletocharitiespreparingtheiraccountsinaccordancewiththe Financial ReportingStandardapplicableintheUKandRepublicofIreland(FRS102)(effective1January 2019). HolywellLeisureCentre-CanolfanHamddenTreffynnon(HLC-CHT)isaCharitable Incorporated Organisation(CIO)registeredwiththeCharityCommission(registrationnumber1170729).Its constitution wasadoptedon12October2016anditwasenteredontheCharityCommissionRegisteron13 December 2016. The transfer of the asset from Flintshire County Council (FCC) was completed on 1 April 2017. ``` ## **`OBJECTIVES AND ACTIVITIES`** ## **`Objectives and aims`** ``` Theobjectivesofthecharityaretoprovidearangeofleisure,sporting,healthandsocialfacilities primarily runbythecommunityforthecommunity,seekingtodelivertheseactivitieswithinclusivityforall.In so doing,itaimstocaterandimproveuponthephysicalandmentalwellbeingofallitsmembersand visitors whatever their economic circumstances. ``` ## **`Significant activities`** ``` Thecentreprovidesawiderangeofvariouscompetitiveandpersonalfitnesssports,leisurepursuits, social activitiesand healthbenefitsto all age groupsand abilitiesand strivesto be as inclusiveas possible.Users can accessavarietyoffacilities,swimmingpools,sportshall,community/dancestudio,café,softplay, squash courts,library,meetingrooms,healthsuiteandfitnessgymaswellasaccesstosportsfacilitiesat Ysgol Treffynnon High School (sports hall and 4G AstroTurf pitch). ``` ## **`Public benefit`** ``` ThetrusteeshavereferredtoguidancecontainedintheCharityCommission'sgeneralguidanceon public benefitwhenreviewingtheiraimsandobjectivesandinplanningfutureactivities.Inparticularthey have consideredhowtheactivitiesofferedwillcontributetotheaimsandobjectivesset.Thetrustees are committed to equal access for all. ``` ``` Page 1 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ``` for the Year Ended 31 March 2022 ``` ## `Report of the Trustees` ## **`ACHIEVEMENT AND PERFORMANCE`** ``` Transfer of ownership ``` ``` HLC-CHTtookcontrolof theleisurecentreon 1 April2017fromFlintshireCountyCouncilwitha leaseof 27 years, 2017 - 2044. ``` ``` Achievements in the year ended 31 March 2022 ``` ``` ThisfinancialyearwasseriouslyimpactedbytheCovidpandemicandthecentrewascompletelyclosed, or operating under Welsh Government restrictions until the autumn. ``` ``` 20 December 20 to 3 May 21 - Closed 21 May 21 to 7 August 2021 - Open with restrictions and lower capacities in all areas. ``` ``` Throughoutthisperiod,thehealthandsafetyofourstaffandcustomerswasparamountinallthe decisions made. ``` ``` Fromtheoutsetofthecovidrestrictions,we tookactiontoreducecoststoensurethefuturesustainability of the business by taking the following measures: ``` ``` o Reduce outgoings ``` ``` oFreezealldirectdebits(customershavebeenincrediblysupportivewithonlyahandfulof complaints received) ``` ``` o Reduce services and purchase costs ``` ``` o Reduceimmediatestaffingcostsand utilisethe CoronavirusJob RetentionScheme(Furlough- this scheme finished in Sept 2021) ``` ``` o To reduce future staffing costs by granting holiday leave during furlough periods. ``` ``` o Apply for every grant support available from the UK Government, Welsh Government, Local Authority and Town Council. ``` ``` GiventheeverchangingCovidsituation,andthepotentialforirreparabledamagetothebusiness,the board decided to be clear on our actions should we be faced with insolvency. ``` ``` Shouldthe financialforecastshow that in 3 months'time, of any given date,that the centreis no longer viable andhasexhaustedallreservesandfinancialsupport,thentheprocesstowindupthecharitywouldbegin. It wouldbe our intentionto be debt free at the pointof closureand the landlord,sub-tenantsand staffwould be informedatthestartoftheprocess.Priortothispoint,thetrustees,managementteamandstaffwilldo all they can to remain viable. ``` ``` Thankfully,thetriggerwasnotreachedinthefinancialyearandweremainedaviablebusiness,albeit with significant Covid support funding. ``` ``` Page 2 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ``` for the Year Ended 31 March 2022 ``` ## `Report of the Trustees` ## **`FINANCIAL REVIEW`** ## **`Financial position`** ``` Inanormaltradingyear,thecentrewouldhaveexpectedtradingsalesincometobeintheregion of £695,000. Sales income in this year due to the impact of Covid was £475,315, a reduction of 31.6%. "IncomeLossSupport","EconomicResilienceFunding"andthe"CoronavirusJobRetentionScheme" were allsuccessfullyappliedforfromtheWelshandUKGovernmentsandwereessentialtooursurvival. We workedcloselywithFlintshireCountyCounciltoprovidetransparencyofourfinancesbycompleting a quarterly "Financial Tracker" to demonstrate the support required. ``` ``` The statementof FinancialActivitiesconfirmsa recordedtotalincometo 31 March2022 of £760,339in sales turnoverandgrantsupport.Thisincludessalesincomeof£475,315withgrantsof£250,676in total. Expendituretotalled£751,668whichhasresultedin a surplusof £8,671of which;afterthreeyearsgivesus a contingencybank balanceof £15,723and a carryforwardof £108,247(BusinessAccount)and £8,120 (Grants Account) which is a total of £132,090 as of 31 March 2022. ``` ``` Thiswasa remarkableresultunderthecircumstancesandreflectstheworkthattheBoardand Management teaminstigatedtoreducecosts,safelymanagetheclosuresandopeningsofthecentreunder Covid restrictionsandsuccessfullyapplyforCovidsupportfunding.Therehasalsobeenarealdriveto increase income, particularly in swimming lessons which are now more than pre-covid levels. ``` ## `Current financial situation` ``` Atthetimeof writingwe forecasta tradingincometotalof £640,000toMarch2023.We anticipatethat this will deliver at least a break even position for the year ended 31 March 2023.. ``` ## `Local grant funding` ``` In additionto the Government"IncomeLossSupport"and" CovidEmergency" funding,we alsocontinue to receive grants from the local town and county councils Flintshire County Council - £90,357 annual grant Holywell Town Council £10,000 ``` ``` We also approached 13 local community councils for support and received £3,000 in the year. ``` ## **`Investment policy and objectives`** ``` ThetrusteesintendthatallfuturesurplusincomeisretainedbyHLC-CHTandreinvestedbackinto the facility.Fundsareheldby HSBCwhichalthoughatlowinterestratesallowforeasyaccessand management of accounts. ``` ## **`Reserves policy`** ``` Thecentrehasageneralcontingencyfundtoguardagainstunforeseenevents(£15,723asof31March 22). 3% of eachmonth'sbalancewas setasideforthispurposehoweverthisprocesswas pausedin May2020 due tothedrawon fundscreatedby thepandemic.We usedsomeof thefundtosupportthecentretogether with WelshGovernmentfinancialsupport.Wehaveworkedhardtoincreaseourincomeandplanto resume adding the 3% to the fund once the trigger point of pre-pandemic income levels has been achieved. ``` ## `Commitments and liabilities` ``` Therearelegalrequirementsforthebusinesstomeetpredeterminedstandardsandforregulartesting and certificationrelatedtothesafetyofourcustomersandworkforce.Theseincludechlorinelevelsin the swimmingpool, Legionellain the watersupply,alarmtestingand fire equipmentinspections.We received the HSBC"Bouncebackloan"of£50,000whichwestartedrepayinginNovember2021at£10,400pa(5 year loan). ``` ``` WealsohadanEUgrantof£60,000againstthenewboilerinstallationin2019Repaymentistriggered by reaching turnover figures way in excess of our current projections. We will monitor this annually. ``` ``` Page 3 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ``` for the Year Ended 31 March 2022 ``` ## `Report of the Trustees` ## **`FUTURE PLANS`** ``` Throughoutthepandemicanduptothepresentdate,theboardandmanagementhavecontinuedto meet eitherby Zoomora blendedmeetingoffacetofaceandZoom.Staffhavebeenkeptuptodatewith monthly newslettersandnowwithregularstaffmeetings.Ourmainfocusthisyearhasbeentorestoreallactivities as quicklyandassafelyaspossibleforthehealth,socialandwellbeingbenefitofthelocalcommunity after spending over 18 months under restrictions. ``` ``` Aswellasintroducingnewclassesandfacilities,wehavesomeexcitingnewplanstoimprovethecentre, the overall offer to the customers and our income. ``` ``` o The previouscentremanager,adminmanager(ChrisandJillTravers)andaccountantallretiredat the end of2021.JamesKerrigan,acurrentManager,waspromotedtoCentreManagerinOctober2021.He has implementeda new staffstructuredesignedto enhancejob roles,providecareerprogressionandgive greater management flexibility of the centre. ``` ``` Itshouldbe notedhoweverthatthetransitiontothenewmanagerialandaccountspersonnelallatonce has caused a delay in completing and auditing the year end accounts. This is seen as a one off occurrence. o The Board of Trustees has also been strengthened with broader skills and experience. ``` ``` oWehavesuccessfullyappliedfor£81,000fundingfromthe"CovidEmergencyFund"through Flintshire CountyCouncilfora commercialManagerforthecentre,moneytofundgymmembershippromotions, new cricket nets and our income loss support for Q1and Q2. ``` ``` o We have successfullyappliedto SportsWalesfor a £227,000grantto pay for SolarPanelsand LED lighting to helpoffsetthe massiveincreasesin energycosts.SportsWalesprovide80% andFlintshireCC have agreed to supply the remaining 20%. ``` ``` o Wehavereceivedthelowcost"BouncebackLoan"of£50,000andwillusethistofurtherincrease revenue streams. ``` ``` oWehaveengagedtheservicesofanexternalHRcompanyandanexternalH&Scompany.Bothhave been used effectively since we started working with them , providing advice and expertise that we do not have. o The 5-aside pitch will have a new surface installed in the spring, all funded by Flintshire County Council. oWewilllooktodevelopcloserbusinessandlocalorganisationpartnershipsonceweappoint the "Commercial Manager" in 2023. ``` ``` Increasingenergycostswillbeourgreatestchallengein2023.Overallhowever,weareoptimisticfor the futureofHolywellLeisureCentre, withexcitingplanstogrowincomethatwillbe deliveredbyan extremely motivated and experienced management team. ``` ## **`STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document`** ``` Thecharityisgovernedbyitsconstitutiondated12October2016.ThecharityisaCharitable Incorporated Organisation (CIO) Registered charity number 1170729. ``` ## **`Trustees`** ``` Theworkinggroupwassetupin2015bysixvolunteersandthecentremanagerwhonegotiatedthe transfer oftheassetfromFlintshireCountyCouncil.TheygainedcharitablestatusinDecember2016andhad 5 trusteesasofMarch2021whoweretheonlyvotingmembers.SincethenTudorJoneshasretiredas Chair (May2021)andPaulIsliphas succeededhim. 6 Trusteeshaveleftand4 new appointmentsmade.The board isassistedbynon-votingvoluntaryassociateswhoprovidespecialistandexpertassistance(when required) and the contracted centre management team of three. ``` ``` Theremustbeatleastthreetrusteeswiththemaximumnumberattwelveatanygiventime.Theboard of trusteesmeetsonceamonthtodirectthemanagementandgovernanceoftheenterprise.This includes reviewsofmattersrelatingtohealthandsafety,finance,risks,maintenance,staff,volunteers, activities, marketing,compliancewithregulations,grantsandthedevelopmentofthebusiness.Thereare specific subcommittees for the oversight of finance, human resources and marketing. ``` ``` ThetrusteesoverseetheaffairsoftheCIOandexerciseallthepowersoftheCIOincludingthe appointment of new trustees, staff and consultants. ``` ``` Page 4 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ``` for the Year Ended 31 March 2022 ``` ## `Report of the Trustees` ## **`REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number`** `1170729` ## **`Principal address`** ``` North Road Holywell Flintshire CH8 7TQ ``` ## **`Trustees`** ``` P Islip M Lovell-Pascall L Jones (appointed 26.1.22) H Crich (resigned 10.2.23) A Lewis (appointed 26.1.22) (resigned 30.1.23) A Parry C McCarth (appointed 1.4.21) Dr M Rowlands (appointed 1.4.21) T Jones (resigned 26.5.21) A Blundell (resigned 26.5.21) D Oliver (resigned 27.3.22) T Murray (resigned 13.9.22) ``` ## **`Auditors`** ``` J V Banks Chartered Accountants and Statutory Auditors Banks House Paradise Street Rhyl Denbighshire LL18 3LW ``` ## **`STATEMENT OF TRUSTEES' RESPONSIBILITIES`** ``` ThetrusteesareresponsibleforpreparingtheReportoftheTrusteesandthefinancialstatements in accordancewithapplicablelawandUnitedKingdomAccountingStandards(UnitedKingdom Generally Accepted Accounting Practice). ``` ``` The lawapplicabletocharitiesin EnglandandWales,theCharitiesAct2011,Charity(Accountsand Reports) Regulations2008andtheprovisionsofthetrustdeedrequiresthetrusteestopreparefinancial statements foreachfinancialyearwhichgive a trueandfairview of the stateof affairsof the charityandof the incoming resourcesandapplicationofresources,includingtheincomeandexpenditure,ofthecharityforthat period. In preparing those financial statements, the trustees are required to ``` - `select suitable accounting policies and then apply them consistently;` - `observe the methods and principles in the Charity SORP;` - `make judgements and estimates that are reasonable and prudent;` - `state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;` - `prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.` ``` Thetrusteesareresponsibleforkeepingproperaccountingrecordswhichdisclosewithreasonable accuracy atanytimethefinancialpositionofthecharityandtoenablethemtoensurethatthefinancial statements complywiththeCharitiesAct2011,theCharity(AccountsandReports)Regulations2008andthe provisions ofthetrustdeed.Theyarealsoresponsibleforsafeguardingtheassetsofthecharityandhencefor taking reasonable steps for the prevention and detection of fraud and other irregularities. ``` ``` Page 5 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## `Report of the Trustees` ## `for the Year Ended 31 March 2022` ``` Approved by order of the board of trustees on 29 March 2023 and signed on its behalf by: ``` ``` P Islip - Trustee ``` ``` Page 6 ``` ``` Report of the Independent Auditors to the Trustees of Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## **`Opinion`** ``` WehaveauditedthefinancialstatementsofHolywellLeisureCentreCanolfanHamddenTreffynnon (the 'charity')for the yearended31 March2022 whichcomprisethe Statementof FinancialActivities,the Balance Sheet,theCashFlowStatementandnotestothefinancialstatements,includingasummaryof significant accountingpolicies.Thefinancialreportingframeworkthathasbeenappliedintheirpreparation is applicablelawandUnitedKingdomAccountingStandards(UnitedKingdomGenerallyAccepted Accounting Practice). ``` ``` In our opinion the financial statements: ``` - `give a true and fair view of the state of the charity's affairs as at 31 March 2022 and of its incoming resources and application of resources, for the year then ended;` - `have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and` - `have been prepared in accordance with the requirements of the Charities Act 2011.` ## **`Basis for opinion`** ``` WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UK)(ISAs(UK)) and applicablelaw.Ourresponsibilitiesunderthosestandardsarefurtherdescribedinthe Auditors' responsibilitiesfortheauditofthefinancialstatementssectionofourreport.Weareindependentof the charityinaccordancewiththeethicalrequirementsthatarerelevanttoourauditofthefinancial statements intheUK,includingtheFRC'sEthicalStandard,andwehavefulfilledourotherethicalresponsibilities in accordancewiththeserequirements.Webelievethattheauditevidencewehaveobtainedissufficient and appropriate to provide a basis for our opinion. ``` ## **`Conclusions relating to going concern`** ``` Inauditingthefinancialstatements,wehaveconcludedthatthetrustees'useofthegoingconcernbasis of accounting in the preparation of the financial statements is appropriate. ``` ``` Basedon the workwe have performed,we have notidentifiedanymaterialuncertaintiesrelatingto events or conditionsthat,individuallyor collectively,may castsignificantdoubton the charity'sabilityto continueas a goingconcernforaperiodofatleasttwelvemonthsfromwhenthefinancialstatementsareauthorised for issue. ``` ``` Ourresponsibilitiesandtheresponsibilitiesof thetrusteeswithrespecttogoingconcernaredescribedin the relevant sections of this report. ``` ## **`Other information`** ``` Thetrusteesareresponsiblefortheotherinformation.Theotherinformationcomprisesthe information includedintheAnnualReport,otherthanthefinancialstatementsandourReportofthe Independent Auditors thereon. ``` ``` Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationand,excepttothe extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. ``` ``` Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheother information and,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththe financial statementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If we identifysuchmaterialinconsistenciesorapparentmaterialmisstatements,wearerequiredto determine whetherthisgivesrisetoamaterialmisstatementinthefinancialstatementsthemselves.If,basedon the workwe haveperformed,we concludethatthereis a materialmisstatementof thisotherinformation,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`** ``` WehavenothingtoreportinrespectofthefollowingmatterswheretheCharities(Accountsand 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` - `sufficient accounting records have not been kept; 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.` ``` Page 7 ``` ``` Report of the Independent Auditors to the Trustees of Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## **`Responsibilities of trustees`** ``` AsexplainedmorefullyintheStatementofTrustees'Responsibilities,thetrusteesareresponsiblefor the preparationofthefinancialstatementswhichgiveatrueandfairview,andforsuchinternalcontrolas the trusteesdetermineisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrom material misstatement, whether due to fraud or error. ``` ``` Inpreparingthefinancialstatements,thetrusteesareresponsibleforassessingthecharity'sability to continueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthe going concernbasis of accountingunlessthe trusteeseitherintendto liquidatethe charityor to ceaseoperations, or have no realistic alternative but to do so. ``` ``` Page 8 ``` ``` Report of the Independent Auditors to the Trustees of Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## **`Our responsibilities for the audit of the financial statements`** ``` WehavebeenappointedasauditorsunderSection145oftheCharitiesAct2011andreportin accordance with the Act and relevant regulations made or having effect thereunder. ``` ``` Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasa wholeare free frommaterialmisstatement,whetherduetofraudorerror,andtoissueaReportofthe Independent Auditorsthatincludesouropinion.Reasonableassuranceis a highlevelofassurance,butis nota guarantee thatanauditconductedinaccordancewithISAs(UK)willalwaysdetectamaterialmisstatementwhen it exists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorin the aggregate,theycouldreasonablybe expectedtoinfluencetheeconomicdecisionsofuserstakenonthe basis of these financial statements. ``` ``` Ourapproachtoidentifyingandassessingtherisksofmaterialmisstatementinrespectof irregularities, including fraud and non-compliance with laws and regulations, was as follows: -theengagementpartnerensuredthattheengagementteamcollectivelyhadtheappropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; -weidentifiedthelawsandregulationsapplicabletothecompanythroughdiscussionswithtrustees and other management, and from our commercial knowledge and experience of the sector; ``` ``` -wefocusedonspecificlawsandregulationswhichweconsideredmayhaveadirectmaterialeffecton the financialstatementsor the operationsof the charity,includingthe CharitiesAct 2011, taxationlegislation and data protection, anti-bribery, employment, environmental and health and safety legislation; ``` ``` -weassessedtheextentofcompliancewiththelawsandregulationsidentifiedabovethrough making enquiries of management and inspecting legal correspondence; and ``` ``` -identifiedlawsandregulationswerecommunicatedwithintheauditteamregularlyandtheteam remained alert to instances of non-compliance throughout the audit. ``` ``` Weassessedthesusceptibilityofthecompany'sfinancialstatementstomaterialmisstatement, including obtaining an understanding of how fraud might occur, by: ``` ``` -makingenquiriesofmanagementastowheretheyconsideredtherewassusceptibilitytofraud, their knowledge of actual, suspected and alleged fraud; and ``` ``` -consideringtheinternalcontrolsinplacetomitigaterisksoffraudandnon-compliancewithlaws 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; ``` ``` -assessedwhetherjudgementsandassumptionsmadeindeterminingtheaccountingestimates were indicative of potential bias; and ``` ``` -investigated the rationale behind significant or unusual transactions. Inresponsetotheriskofirregularitiesandnon-compliancewithlawsandregulations,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 ``` ``` -reviewingcorrespondencewithHMRC,relevantregulatorsincludingtheHealthandSafetyExecutive, and the company's legal advisors. ``` ``` Thereareinherentlimitationsinourauditproceduresdescribedabove.Themoreremovedthatlaws and regulationsarefromfinancialtransactions,thelesslikelyitisthatwewouldbecomeaware of non-compliance.Auditingstandardsalsolimitthe auditproceduresrequiredto identifynon-compliance with lawsandregulationstoenquiryofthedirectorsandothermanagementandtheinspectionofregulatory and legal correspondence, if any. ``` ``` Materialmisstatementsthat arise due to fraudcan be harderto detectthan thosethat arise from erroras they may involve deliberate concealment or collusion. ``` ``` Afurtherdescriptionofourresponsibilitiesfortheauditofthefinancialstatementsislocatedon the FinancialReportingCouncil'swebsiteat www.frc.org.uk/auditorsresponsibilities.This descriptionforms part of our Report of the Independent Auditors. ``` ``` JVBanksiseligibleforappointmentasauditorofthecharitybyvirtueofitseligibilityforappointment as auditor of a company under section 1212 of the Companies Act 2006. ``` ``` Page 9 ``` ``` Report of the Independent Auditors to the Trustees of Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## **`Use of our report`** ``` Thisreportismadesolelytothecharity'strustees,asabody,inaccordancewithPart4ofthe Charities (AccountsandReports)Regulations2008. Ourauditworkhas been undertakenso thatwe mightstateto the charity'strusteesthosematterswearerequiredtostatetotheminanauditors'reportandforno other purpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyone other thanthe charityand the charity'strusteesas a body,for our auditwork,for this report,or for the opinions we have formed. ``` ``` J V Banks Chartered Accountants and Statutory Auditors Banks House Paradise Street Rhyl Denbighshire LL18 3LW ``` ``` 29 March 2023 ``` ``` Page 10 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## `Statement of Financial Activities` ## `for the Year Ended 31 March 2022` |`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`**|`31.3.22`
`Unrestricted`
`fund`
`£`
`250,676`
`475,315`
`34,348`
`760,339`
`751,668`
`8,671`
`200,468`
`209,139`|`31.3.21`
`Total`
`funds`
`£`
`597,557`
`83,783`
`17,551`| |---|---|---| |||`698,891`| |||`637,362`| |||`61,529`
`138,939`| |||`200,468`| ## **`CONTINUING OPERATIONS`** ``` All income and expenditure has arisen from continuing activities. ``` ``` The notes form part of these financial statements ``` ``` Page 11 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## `Balance Sheet` ## `31 March 2022` |`Notes`
**`FIXED ASSETS`**
`Tangible assets`
`10`
**`CURRENT ASSETS`**
`Stocks`
`11`
`Debtors`
`12`
`Cash at bank and in hand`
**`CREDITORS`**
`Amounts falling due within one year`
`13`
**`NET CURRENT ASSETS`**
**`TOTAL ASSETS LESS CURRENT`**
**`LIABILITIES`**
**`CREDITORS`**
`Amounts falling due after more than one`
`year`
`14`
**`NET ASSETS`**
**`FUNDS`**
`16`
`Unrestricted funds`
**`TOTAL FUNDS`**|`31.3.22`
`Unrestricted`
`fund`
`£`
`308,239`
`712`
`53,306`
`132,307`
`186,325`
`(32,653)`
`153,672`
`461,911`
`(252,772)`
`209,139`
`209,139`
`209,139`|`31.3.21`
`Total`
`funds`
`£`
`292,468`
`200`
`93,140`
`218,759`
`312,099`
`(98,437)`
`213,662`
`506,130`
`(305,662)`
`200,468`
`200,468`
`200,468`| |---|---|---| ``` The financialstatementswereapprovedby theBoardof Trusteesandauthorisedforissueon 29 March 2023 and were signed on its behalf by: ``` ``` P Islip - Trustee ``` ``` The notes form part of these financial statements ``` ``` Page 12 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## `Cash Flow Statement` ## `for the Year Ended 31 March 2022` |`Notes`
**`Cash flows from operating activities`**
`Cash generated from operations`
`1`
`Interest paid`
`Net cash (used in)/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 (used in)/provided by 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`**|`31.3.22`
`£`
`(48,091)`
`(505)`
`(48,596)`
`(33,924)`
`5`
`(33,919)`
`-`
`(3,937)`
`(3,937)`
`(86,452)`
`218,759`
`132,307`|`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`| |---|---|---| ``` The notes form part of these financial statements ``` ``` Page 13 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## `Notes to the Cash Flow Statement for the Year Ended 31 March 2022` ## **`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`
`(Increase)/decrease in stocks`
`Decrease/(increase) in debtors`
`(Decrease)/increase in creditors`
**`Net cash (used in)/provided by operations`**|`31.3.22`
`£`
`8,671`
`18,154`
`(5)`
`505`
`(512)`
`39,834`
`(114,738)`
`(48,091)`|`31.3.21`
`£`
`61,529`
`18,108`
`(62)`
`1,680`
`400`
`(57,827)`
`134,031`
`157,859`| |---|---|---| ## `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 1.4.21`
`£`
`218,759`
`218,759`
`-`
`(50,000)`
`(50,000)`
`168,759`|`Cash flow`
`£`
`(86,452)`
`(86,452)`
`(9,568)`
`13,504`
`3,936`
`(82,516)`|`At 31.3.22`
`£`
`132,307`
`132,307`
`(9,568)`
`(36,496)`
`(46,064)`
`86,243`| |---|---|---|---| ``` The notes form part of these financial statements ``` ``` Page 14 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ``` Notes to the Financial Statements for the Year Ended 31 March 2022 ``` ## **`1. ACCOUNTING POLICIES`** ## **`Basis of preparing the financial statements`** ``` Thefinancialstatementsofthecharity,whichisapublicbenefitentityunderFRS102,have been preparedinaccordancewiththeCharitiesSORP(FRS102)'AccountingandReportingby Charities: StatementofRecommendedPracticeapplicabletocharitiespreparingtheiraccountsin accordance withtheFinancialReportingStandardapplicableintheUKandRepublicofIreland(FRS 102) (effective1January2019)',FinancialReportingStandard102'TheFinancialReporting Standard applicablein the UK and Republicof Ireland'and the CharitiesAct 2011. The financialstatements have been prepared under the historical cost convention. ``` ## **`Income`** ``` All incomeis recognisedin the Statementof FinancialActivitiesonce the charityhas entitlementto the funds, it is probable that the income will be received and the amount can be measured reliably. ``` ## **`Expenditure`** ``` Liabilitiesarerecognisedasexpenditureassoonasthereisalegalorconstructive obligation committingthecharitytothatexpenditure,itisprobablethatatransferofeconomicbenefitswill be requiredinsettlementandtheamountoftheobligationcanbemeasuredreliably.Expenditure is accountedforonanaccrualsbasisandhasbeenclassifiedunderheadingsthataggregateall cost relatedto the category.Where costscannotbe directlyattributedto particularheadingsthey have been allocated to activities on a basis consistent with the use of resources. ``` ## **`Tangible fixed assets`** ``` Depreciationis providedat the followingannualratesin orderto write off each assetover its estimated useful life. ``` ## **`Stocks`** ``` Stocksare valuedat the lowerof costandnetrealisablevalue,aftermakingdue allowancefor obsolete and slow moving items. ``` ## **`Taxation`** ``` The charity is exempt from tax on its charitable activities. ``` ## **`Fund accounting`** ``` Unrestrictedfundscanbeusedinaccordancewiththecharitableobjectivesatthediscretionof the trustees. ``` ``` Restrictedfundscanonlybeusedforparticularrestrictedpurposeswithintheobjectsofthe charity. Restrictionsarisewhenspecifiedbythedonororwhenfundsareraisedforparticular restricted purposes. ``` ``` Furtherexplanationofthenatureandpurposeofeachfundisincludedinthenotestothe financial statements. ``` ## **`Hire purchase and leasing commitments`** ``` RentalspaidunderoperatingleasesarechargedtotheStatementofFinancialActivitiesona straight line basis over the period of the lease. ``` ## **`Pension costs and other post-retirement benefits`** ``` Thecharityoperatesadefinedcontributionpensionscheme.Contributionspayabletothe charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ``` ``` continued... ``` ``` Page 15 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## `Notes to the Financial Statements - continued for the Year Ended 31 March 2022` |**`2.`**
**`DONATIONS AND LEGACIES`**
`Fundraising`
`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`||`31.3.22`
`£`
`27`
`221,035`
`29,614`
`250,676`
`31.3.22`
`£`
`221,035`
`31.3.22`
`£`
`475,315`
`31.3.22`
`£`
`34,343`
`5`
`34,348`
`31.3.22`
`£`
`200`
`1,684`
`(712)`
`-`
`750,496`
`751,668`||`31.3.21`
`£`
`3`
`423,306`
`174,248`
`597,557`
`31.3.21`
`£`
`423,306`
`31.3.21`
`£`
`83,783`
`31.3.21`
`£`
`17,489`
`62`
`17,551`
`31.3.21`
`£`
`600`
`1,434`
`(200)`
`1,670`
`633,858`
`637,362`| |---|---|---|---|---| |||||| |||||| |||||| |||||| |||||| ``` continued... ``` ``` Page 16 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## `Notes to the Financial Statements - continued for the Year Ended 31 March 2022` ## **`6. SUPPORT COSTS`** |||||`Governance`|| |---|---|---|---|---|---| ||`Management`|`Finance`|`Other`|`costs`|`Totals`| ||`£`|`£`|`£`|`£`|`£`| |`Other trading activities`|`20,559`|`4,462`|`712,964`|`12,511`|`750,496`| ## **`7. TRUSTEES' REMUNERATION AND BENEFITS`** ``` Therewerenotrustees'remunerationorotherbenefitsfortheyearended31March2022norfor the year ended 31 March 2021. ``` ## **`Trustees' expenses`** ``` Therewerenotrustees'expensespaidfortheyearended31March2022norfortheyear ended 31 March 2021. ``` ## **`8. STAFF COSTS`** |`31.3.22`
`£`
`Wages and salaries`
`384,631`
`Social security costs`
`18,924`
`Other pension costs`
`42,131`
`445,686`
`The average monthly number of employees during the year was as follows:`
`31.3.22`
`Leisure centre staff`
`43`
`No employees received emoluments in excess of £60,000.`
**`9.`**
**`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`|| |---|---| ||| ``` continued... ``` ``` Page 17 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ``` Notes to the Financial Statements - continued for the Year Ended 31 March 2022 ``` ## **`9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued`** |**`TOTAL FUNDS CARRIED`**
**`FORWARD`**
**`10.`**
**`TANGIBLE FIXED ASSETS`**
`Short`
`leasehold`
`£`
**`COST`**
`At 1 April 2021`
`263,916`
`Additions`
`2,520`
`At 31 March 2022`
`266,436`
**`DEPRECIATION`**
`At 1 April 2021`
`9,946`
`Charge for year`
`9,072`
`At 31 March 2022`
`19,018`
**`NET BOOK VALUE`**
`At 31 March 2022`
`247,418`
`At 31 March 2021`
`253,970`
**`11.`**
**`STOCKS`**
`Stocks`
**`12.`**
**`DEBTORS: AMOUNTS FALLING DUE WITHIN ONE`**
`Trade debtors`
`Other debtors`
`Prepayments and accrued income`|`Plant and`
`machinery`
`£`
`72,389`
`31,404`
`103,793`
`37,310`
`8,397`
`45,707`
`58,086`
`35,079`
**`YEAR`**||`Fixtures`
`and`
`fittings`
`£`
`8,348`
`-`
`8,348`
`4,929`
`684`
`5,613`
`2,735`
`3,419`
`31.3.22`
`£`
`712`
`31.3.22`
`£`
`23,524`
`5,771`
`24,011`
`53,306`|`Unrestricted`
`fund`
`£`
`200,468`
`Totals`
`£`
`344,653`
`33,924`
`378,577`
`52,185`
`18,153`
`70,338`
`308,239`
`292,468`
`31.3.21`
`£`
`200`
`31.3.21`
`£`
`12,374`
`-`
`80,766`
`93,140`| |---|---|---|---|---| |||||| |||||| |||||| |||||| |||||| |||||| ``` continued... ``` ``` Page 18 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## `Notes to the Financial Statements - continued for the Year Ended 31 March 2022` |**`13.`**
**`CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR`**
`Bank loans and overdrafts (see note 15)`
`Trade creditors`
`Social security and other taxes`
`Other creditors`
`Accruals and deferred income`
**`14.`**
**`CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE`**
`Bank loans (see note 15)`
`Accruals and deferred income`
`Deferred government grants`
**`15.`**
**`LOANS`**
`An analysis of the maturity of loans is given below:`
`Amounts falling due within one year on demand:`
`Bank loans`
`Amounts falling due between two and five years:`
`Bank loans - 2-5 years`
**`16.`**
**`MOVEMENT IN FUNDS`**

`At 1.4.21`
`£`
**`Unrestricted funds`**
`General fund`
`200,468`
**`TOTAL FUNDS`**
`200,468`
`Net movement in funds, included in the above are as follows:`
`Incoming`
`resources`
`£`
**`Unrestricted funds`**
`General fund`
`760,339`
**`TOTAL FUNDS`**
`760,339`|**`13.`**
**`CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR`**
`Bank loans and overdrafts (see note 15)`
`Trade creditors`
`Social security and other taxes`
`Other creditors`
`Accruals and deferred income`
**`14.`**
**`CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE`**
`Bank loans (see note 15)`
`Accruals and deferred income`
`Deferred government grants`
**`15.`**
**`LOANS`**
`An analysis of the maturity of loans is given below:`
`Amounts falling due within one year on demand:`
`Bank loans`
`Amounts falling due between two and five years:`
`Bank loans - 2-5 years`
**`16.`**
**`MOVEMENT IN FUNDS`**

`At 1.4.21`
`£`
**`Unrestricted funds`**
`General fund`
`200,468`
**`TOTAL FUNDS`**
`200,468`
`Net movement in funds, included in the above are as follows:`
`Incoming`
`resources`
`£`
**`Unrestricted funds`**
`General fund`
`760,339`
**`TOTAL FUNDS`**
`760,339`|`31.3.22`
`£`
`9,568`
`-`
`-`
`412`
`22,673`
`32,653`
**`YEAR`**
`31.3.22`
`£`
`36,496`
`-`
`216,276`
`252,772`
`31.3.22`
`£`
`9,568`
`36,496`
`Net`
`movement`
`in funds`
`£`
`8,671`
`8,671`
`Resources`
`expended`
`£`
`(751,668)`
`(751,668)`|| |---|---|---|---| ||||| ||||| ||||| ||||| ||||| ``` continued... ``` ``` Page 19 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ``` Notes to the Financial Statements - continued for the Year Ended 31 March 2022 ``` ## **`16. MOVEMENT IN FUNDS - continued`** ## **`Comparatives for movement in funds`** |**`Unrestricted funds`**
`General fund`
**`TOTAL FUNDS`**
`Comparative net movement in funds, included in the above a`
**`Unrestricted funds`**
`General fund`
**`TOTAL FUNDS`**|`At 1.4.20`
`£`
`138,939`
`138,939`
`re as follows:`
`Incoming`
`resources`
`£`
`698,891`
`698,891`|`Net`
`movement`
`in funds`
`£`
`61,529`
`61,529`
`Resources`
`expended`
`£`
`(637,362)`
`(637,362)`|`At`
`31.3.21`
`£`
`200,468`
`200,468`
`Movement`
`in funds`
`£`
`61,529`
`61,529`| |---|---|---|---| ``` A current year 12 months and prior year 12 months combined position is as follows: ``` |**`Unrestricted funds`**
`General fund`
**`TOTAL FUNDS`**|`At 1.4.20`
`£`
`138,939`
`138,939`|`Net`
`movement`
`in funds`
`£`
`70,200`
`70,200`|`At`
`31.3.22`
`£`
`209,139`| |---|---|---|---| ||||`209,139`| ``` A currentyear12 monthsandprioryear12 monthscombinednetmovementin funds,includedin the above are as follows: ``` |**`Unrestricted funds`**
`General fund`
**`TOTAL FUNDS`**|`Incoming`
`Resources`
`resources`
`expended`
`£`
`£`
`1,459,230`
`(1,389,030)`
`1,459,230`
`(1,389,030)`|`Movement`
`in funds`
`£`
`70,200`
`70,200`| |---|---|---| ``` continued... ``` ``` Page 20 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ``` Notes to the Financial Statements - continued for the Year Ended 31 March 2022 ``` ## **`17. RELATED PARTY DISCLOSURES`** ``` There were no related party transactions for the year ended 31 March 2022. ``` ``` Page 21 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## `Detailed Statement of Financial Activities` ## `for the Year Ended 31 March 2022` |**`INCOME AND ENDOWMENTS`**
**`Donations and legacies`**
`Fundraising`
`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`**
**`Management`**
`Advertising`
**`Finance`**
`Bank charges`
`Bank interest`
`Bank loan interest`
**`Other`**
`Wages`
`Social security`
`Pensions`
`Hire of plant and machinery`
`Other operating leases`
`Rates and water`
`Insurance`
`Carried forward`|`31.3.22`
`£`
`27`
`221,035`
`29,614`
`250,676`
`475,315`
`34,343`
`5`
`34,348`
`760,339`
`200`
`1,684`
`-`
`(712)`
`1,172`
`20,559`
`3,961`
`-`
`501`
`4,462`
`384,631`
`18,924`
`42,131`
`1,861`
`1,311`
`8,754`
`22,320`
`479,932`|`31.3.21`
`£`
`3`
`423,306`
`174,248`
`597,557`
`83,783`
`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`
`428,254`| |---|---|---| ``` This page does not form part of the statutory financial statements ``` ``` Page 22 ``` ``` Holywell Leisure Centre Canolfan Hamdden Treffynnon ``` ## `Detailed Statement of Financial Activities for the Year Ended 31 March 2022` |**`Other`**
`Brought forward`
`Light and heat`
`Telephone`
`Postage and stationery`
`Sundries`
`Staff training`
`Cleaning`
`Chemicals`
`Workwear`
`Service contracts`
`Licences`
`IT hardware and software`
`Repairs and renewals`
`External instructors`
`Short leasehold`
`Plant and machinery`
`Fixtures and fittings`
`Other interest`
**`Governance costs`**
`Auditors' remuneration`
`Accountancy and legal fees`
`Professional fees`
`Total resources expended`
**`Net income`**|`31.3.22`
`£`
`479,932`
`101,599`
`2,372`
`1,376`
`340`
`4,107`
`8,711`
`10,410`
`1,550`
`11,159`
`2,123`
`11,681`
`56,937`
`2,509`
`9,073`
`8,397`
`684`
`4`
`712,964`
`1,992`
`3,650`
`6,869`
`12,511`
`751,668`
`8,671`|`31.3.21`
`£`
`428,254`
`100,328`
`3,847`
`447`
`-`
`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`| ``` This page does not form part of the statutory financial statements ``` ``` Page 23 ```