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2022-03-31-accounts

REGISTERED COMPANY NUMBER: 08822764 (England and Wales) REGISTERED CHARITY NUMBER: 1184297

Report of the Trustees and Audited Financial Statements for the Year Ended 31st March 2022

for

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Richards Sandy Audit Services Limited (Statutory Auditor) Thorneloe House 25 Barbourne Road Worcester WR1 1RU

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 7
Report of the Independent Auditors 8 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 27
Detailed Statement of Financial Activities 28 to 29

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Reference and Administrative Details for the Year Ended 31st March 2022

TRUSTEES L M Fish
A G Gilmour
J J O'Toole
S M Scriven
D J Strutt
P E Sugg (appointed 14 May 2021)
J H W Teal (Chair)
R Widdowson
COMPANY SECRETARY S L Brewster
REGISTERED OFFICE Hines Building
University of Worcester
Henwick Grove
Worcester
Worcestershire
WR2 6AJ
REGISTERED COMPANY NUMBER 08822764 (England and Wales)
REGISTERED CHARITY NUMBER 1184297
INDEPENDENT AUDITORS Richards Sandy Audit Services Limited
(Statutory Auditor)
Thorneloe House
25 Barbourne Road
Worcester
WR1 1RU
CHIEF EXECUTIVE OFFICER S L Brewster
BANKERS Lloyds Bank
4 The Cross
Worcester
WR1 3PY

Page 1

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Report of the Trustees for the Year Ended 31st March 2022

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

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity's objects are:

Significant activities

The charity works across the eight local authority areas across Herefordshire and Worcestershire. Key Stakeholders include the local authorities, two public health teams, Sport England, the University of Worcester, National Governing Bodies of Sport and the local clubs affiliated to them as well as other key voluntary sector organisations to lead on the delivery and discovery of sport and physical activity across Herefordshire and Worcestershire.

As well as the general promotion of sport and physical activity, the charity also provides:

A programme funded by Sport England National Lottery funding, designed to deliver competitive school sport to all young people.

Uses funding from Sport England to support local, eligible schools to spend their PPSP funding effectively.

Provides training and support for volunteering and professional sports coaches.

Exercise classes aimed at preventing falls in older people.

The Active Lives Survey (ALS) for Children and Young people is undertaken to gain a detailed insight into the current physical activity habits of the nation's children and young people (aged 5 to 16).

Public benefit

The trustees confirm that they have complied with the duty in Section 4 of Charities Act 2011 to have due regard to the guidance issued by the Charity Commission concerning public benefit.

Grantmaking

The charity provides grant funding to local organisations as part of its strategies to promote and deliver sports activities within the local area. Individual grants are of usually low value grants (typically less than £5,000 each) and are awarded based on applications made by local organisations to the charity. Many of these projects are funded out of grants received by the charity specifically to make such grants to local organisations, in line with national policies set by Sport England.

The charity also pays larger grants to institutions where the charity has received funding for a specific project and the grants issued out of that funding were a specific element of the funding application.

Page 2

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Report of the Trustees for the Year Ended 31st March 2022

OBJECTIVES AND ACTIVITIES

Volunteers

Whist the charity does not itself directly benefit from the use of volunteers in undertaking its activities, part of the charity's purpose is to support local sports organisations, many of which are run by or rely on the use of volunteers.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Despite working with and around the various COVID restriction the charity remained agile in our delivery with a mix of face to face delivery and online. Anxiety from participants to return to face to face delivery was evident, but this gradually improved through the year. The charity have been fortunate in receiving additional funding from Sport England, Herefordshire Council and Worcestershire County Council to help communities and schools to recovery from the effects of COVID restriction and to address the drop off in participation.

Through this additional funding the charity were able to support groups and participants to return to regular activity in sport and physical activity whilst addressing broader social issues e.g. social isolation and loneliness amplified by the various lockdown and restrictions. Organisations ranged from small local clubs who have suffered from a drop in memberships to larger charities ensuring that they could use sport and physical activity to get people back to feeling connected.

The charity continued to encourage walking which had grown in popularity over the last twelve months with a specific project aimed at consolidating all existing walking opportunities and to address gaps in provision, the charity also saw a return to running larger events such as school games (adhering to the covid guidance at the time).

With Sport England having launched their new strategy we were given the opportunity to apply for 'System Partner' funding which aligned to the ambitions within 'Uniting the Movement'. The charity were successful and worked towards reshaping delivery in line with this funding.

Boards meeting switched from online to a hybrid model with a mix of face to face an online with sub groups meeting as needed to look at the various funding opportunities and grants available to the Partnership.

Fundraising activities

The charity does not solicit members of the public for donations or engage in any other trading activity that does not directly relate to the charitable purpose of the charity.

FINANCIAL REVIEW

Financial position

At the year end the charity had reserves as follows:

General unrestricted funds
Designated reserve funds
Restricted funds
Total reserves		 2021
£
203,743
400,000
417,321
**1,021,064 **		 2020
£
201,524
395,900
240,987
838,411

During the year the charity received several large grants relating to assisting the sport and physical activity sector both during the coronavirus outbreak and to help recover afterwards. Many of the relating projects were still ongoing at the year end and the charity held unspent restricted funds at the year end relating to these projects.

The normal activities of the charity were disrupted by the coronavirus outbreak in both the current and previous years and with the charity focussing on projects relating to the coronavirus outbreak the charity has accumulated unspent restricted funding on its primary Sport England funded activities.

Principal funding sources

The charity is currently very dependent on Sport England funding to fulfil its objects as a charity and its objectives as an organisation. Sport England funding accounted for 60% (2021 - 76%) of the charity's total income.

Page 3

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Report of the Trustees for the Year Ended 31st March 2022

FINANCIAL REVIEW (continued)

Reserves policy

Most of the charity's restricted fund income is received as a single annual grant for a period that overlaps the financial year end of the charity, so that at the year end the charity has received (or has accrued for) grant income that is partly to be spent in the first part of the next financial year.

All restricted funds relating to specific projects held at the year end is planned to be expended by the end of the annual grant period to which such funding relates. See note 20 for further details of individual restricted funds.

The charity has the following designated funds:

The trustees have agreed to put reserves to one side so that if significant funding is lost, time is allocated to seek alternatives. If alternative sources of funding are not secured and the charity had to be wound down this can be managed and any commitments honoured. This includes salaries, commitments to stakeholders and other obligations to ongoing programmes. The level of this reserve is set at £250,000 (2021 - £250,000), based on approx. 6 month's budgeted expenditure (excluding some activities funded by fund providers other than Sport England).

Redundancy costs not an eligible cost for any of the grants / contract that the charity currently run. In order to ensure that, in the event that the charity needs to cease operations, redundancies are fully funded, the charity has set aside an additional amount of £50,000 (2021 - £50,000).

When the charity was created a number of staff were TUPEd across from Worcester City Council. As part of the TUPE transfer, the charity became a member of the Worcestershire Local Government Pension Scheme (a defined benefit scheme). At the point of transfer Worcester City Council absorbed the pension deficits relating to these staff, on the understanding that all future liabilities were the responsibility of the charity. The charity has set an amount aside in case in future years there are significant unfavourable actuarial movements for which the charity will be expected to contribute, additional top up contributions over and above contributions paid in the past. The amount set aside for this purpose is £100,000 (2021 - £95,900).

In addition, Sport England annual funding is usually received after the period to which it relates, so the charity is required to hold cash reserves to fund all related expenditure prior to the receipt of this funding.

At the year end the charity had general unrestricted reserves of £203,743 (2021 - £201,524). Excluding the book value of tangible fixed assets held within general unrestricted funds at the year end of £8,918 (2021 - £9,164), the charity has free reserves of £194,825 (2021 - £192,360). The trustees of the charity plan to use these funds as follows:

Going concern

The charity's core funding agreement with Sport England is expected to continue for the foreseeable future, although this is susceptible to changes in government policy.

The charity is considered to have sufficient reserves to continue operating. There are no currently known issues that may cause the charity to cease operating within the foreseeable future.

Page 4

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Report of the Trustees for the Year Ended 31st March 2022

FINANCIAL REVIEW (continued)

Covid-19

Some of the operations of the charity were postponed or adapted due to the coronavirus outbreak.

Two of the charity's major funders (Sport England and Community Lottery Fund) were quick to confirm that all existing funding was secure and could be re-purposed to support the community in staying active. All KPIs have also been suspended as face to face delivery has been suspended.

Our face to face delivery of the postural stability instruction programme was suspended, but with the support of the funder (Worcestershire County Council) the resources re-purposed to support the Here2Help initiative.

Income generated through delivery was significantly impacted but this has been mitigated with additional grants from Sport England in tacking inequalities.

The charity's staff have worked from home, as the charity's office at the University of Worcester was closed down for the duration of the outbreak.

Principal risks and uncertainties

The principal risk to the charity is the withdrawal of funding from Sport England. In order to mitigate this, the charity holds specific designated funds to cover the operating of the charity over a short period, during which the charity could search for alternative funding, or if this was unsuccessful make staff redundancies.

The charity also holds reserves in case it is required to make additional contributions to the LGPS that it belongs.

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

FUTURE PLANS

As mentioned the charity were successful in our application to Sport England for 'System Partner' funding so will review our own strategy to align with Uniting the Movement. This is not a departure from our core business, it just allows us to add capacity into our team and go further in certain areas for example allowing our work to resonate more broadly with health partners, active environment, schools and communities. To do this the charity will be recruiting new team members focused on specific areas of work. Our local authority partners are also reviewing, consulting and publishing action plans and strategies and part of our work continues to be part of that process and advocate for sport and physical activity.

Sport England and our other funding partners continue to remain flexible and the charity recover from the after effects of covid and now face cost of living increases. This will undoubtedly put different pressures on activity habits and we continue to explore with other organisation what support is needed whether that be funding, training or messaging.

The team have been consulted on 'Hybrid Working' a mixture of office based and working from home, this remains a flexible as possible but under review as more partners; but not all, are wishing to return to face to face meeting and discussions. The Board will move in this direction too, with a continue mix of face to face meeting and online.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charitable company is controlled by its governing document, its Articles of Association, and constitutes a limited company registered in England and Wales, limited by guarantee, as defined by Companies Act 2006.

Recruitment and appointment of new trustees

New trustees are recruited by the existing trustees via 'open' process, focused on addressing gaps identified via the skill matrix or replacing a trustee who has reached the end of their term of office. No individual may be appointed as a trustee until they have provided the charity a declaration of good character.

The charity has a plan to recruit more trustees from under-represented groups.

The Articles of Association require that the number of trustees be between three and twelve.

Page 5

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Report of the Trustees for the Year Ended 31st March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Organisational structure

The trustees delegate day-to-day management of the charity to the chief executive officer.

The trustees meet regularly in order to establish a clear vision and strategic direction for the charity and to monitor and evaluate performance against vision and strategic direction, including holding the chief executive officer accountable for the achievement of the charity's strategic objectives and goals.

Induction and training of new trustees

Trustees have a responsibility to learn about their roles, to keep abreast of current developments in the sector and to keep their skills up-to-date.

There is a documented Induction process including one-on-one meetings with the chief executive officer and the provision of essential reading/documentation.

All governance documents will be made available to any new trustees and support provided to engage them in current partnership working. This will include a meeting with the chair of the trustees and the chief executive officer.

The Partnership will support trustee development within available resources.

Key management remuneration

The trustees review annually the level of wages paid to the chief executive officer.

The chief executive officer pays into the LGPS and the charity is required to make employer contributions in line with the rules set by the LGPS.

Wider network

We are part of a network of Active Partnerships across England. We work with the eight local authorities, the two public health teams, Sport England, the University of Worcester, National Governing Bodies of Sports (NGBs) and other key organisations.

Active Partnerships

There are 42 Active Partnerships across England who work collaboratively with local partners to create the conditions for an active nation using the power of sport and physical activity to transform lives.

Active Partnerships are strategic organisations that recognise activity levels are affected by a complex system of influences and no single organisation or programme create sustainable change at scale. So by adopting a collaborative whole system approach, Active Partnerships seek to make active lifestyles the social norm for everyone and address the worrying levels of inactivity in society.

They do this by creating an in-depth understanding of the needs of the local community, brokering cross sector partnerships, supporting the development of a welcoming and inclusive workforce, engaging communities and share learning of what works locally.

In particular, Active Partnerships focus their efforts on inactive people and under represented groups who will benefit the most from an active lifestyle.

A unique feature of the Active Partnerships is their independence, working across all sports, activities, providers and audiences, focused on the needs of their local communities.

Trustee indemnity provisions

The Articles of Association state that the charity shall indemnify the trustees against any liability incurred by them in their capacity as trustees, to the extent permitted by sections 232 to 234 of Companies Act 2006.

Page 6

Sports Pather5hlp Heveff>ntshlr• And Wo￿$t8[$hIr0 Trndh19 •B A¢￿¥6 H•￿t0￿hlre & Wor￿Ste￿hlrn Report of the Trust••6 f¢r tho Y•ar Endod 31st M•f¢h 2022 STATEMENT OF TRUSTEES, RESPONSIBLtllES The trustee5 Iwho are a150 the directors d Sports Parb)e￿hIp Hereliwdshire And WoTce$tefshir8 for Ihe purprA8es of corrpany lawl ar8 re5ponsit4e for weparing the Report of the Trustees the financKg1 statoments in accordance Wrth applic8b18 law and United Kiwm A¢￿UntiNj Slandarts (United lth"ngthi GenefJly Accepte¢J knunb.ng Practico}. Cimpany law requires tho trus18e5 to prepare finartlal stalements for each financi81 year %thich grve 8 true and f8ir vlèw ofthe stste of affalrs ofthe charitsN& LY)mpany and of thè Incorr4ThJ and application of resources, inrJudiThJ thè income anil expenditure. of th8 charits￿e tcryany for that ￿[￿l¥j. In prnparlng Ihc6e tr8rKig1 statomonts, the truslg9¥ rèquir8d to select suitable BccountiThJ and then aPFty them ¢xr•. obseN6 the methods Bnd p1w￿p￿S In th8 Charity SORP: rnake I￿gements and estmates that art rèasonable and PTrkJenf prepare tho finantlal statèmènts C￿ ¢he wirg contsm basis unkn8 tt Is Inappropriaie to Pfgsm that th8 charitabK8 eompany wil c4)ntinug in ￿5Th$s. Th8 Irustees a￿ r&s￿nSIble for kgwng proper aLt￿￿"Thj re¢oryJs disdose with masonab￿ accurary at any Omg the finandal p05rt￿n ofthe charft8trAe crmpany and to enthtr Ihom to •nsure thal the finaroal $tstemenls Comply with the Compan￿$ A¢i 2006. Thèy ar8 also resp)n￿tA@ lor $8feguarding th8 assets of the (arilaN¢ wmpany ¥rKI honco lor toking rnasonable slops for th? pr8v¥ntson detect¥)n of Iraud and other irreg￿. In 80 far ￿ th• Iru8teos aro w8re'. thore is no r￿￿aTrI audlt Inlomallon ol whth the thwitable cryrp8nl$ wJditO￿ 8r• Lmware,. and th8 tNslees have 18ken all steps that th•y ought to taken to [r￿ke Ihgrnselves 8W8re ol any rel￿an1 aud lrfonnatk)n to 86tabli8h that the auditorB of Ihat in(omwlkn. This r•port been wepwed in •¢c¢do￿ th th• sp•dd wovlskrfw of Part 15 of Iho coM￿r Act 20C6 ml8tlng to Imall Compa￿08. Approved by ordtrol th• board of Innt•88 t￿... *n•d on K8 bthall by.. Pagg 7

Report of the Independent Auditors to the Members of Sports Partnership Herefordshire And Worcestershire

Opinion

We have audited the financial statements of Sports Partnership Herefordshire And Worcestershire (the 'charitable company') for the year ended 31st March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 the provisions available for small entities, in the circumstances set out in note 22 to the financial statements, 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Page 8

Report of the Independent Auditors to the Members of Sports Partnership Herefordshire And Worcestershire

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are 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', the Companies Act 2006 (and related legislation), the Charities Act 2011 (and related legislation) and regulations relating to the employment and payment of staff including, but not limited to, the Employment Rights Act 1996, the National Minimum Wage Act 1998 and the Pensions Act 2008.

We performed audit procedures to detect non-compliances which may have a material impact on the financial statements, which included reviewing the financial statement disclosures and sample testing of monthly payroll records for the calculation of gross wages, payroll taxes and pension costs.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the timing of recognition of grant and contract income, and the allocation by management of wage and support costs to individual restricted funds. Our audit procedures to respond to these risks included, testing of a sample of grant and contract income against the terms of the funding agreements and the requirement of the Charities SORP (FRS 102), sample testing on the posting of journals and reviewing accounting estimates for biases.

We have also reviewed a sample of project cost returns submitted to Sport England to review whether or not the basis for expenditure allocation included within these financial statements has been calculated on a basis consistent with how such expenditure is reported back to Sport England.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Page 9

Roport of Ihe Independent Auditors to the M•mb•rs of Sports Partnwshlp Herford&hlr• And Wor¢•¥t•wshlre Use ol our report This rotx)rt is made solely to th• charitabl• membèrs. as a bcwty. in accorda￿8 with Chapl8r 3 ofPart 16 ofthe OMpan￿ Act 2006. Our a￿111 has been undertaken 50 Ihat we might state to the rthar1tab￿ eompany'5 m8M￿r$ Ih058 mattets we aro r8qUi slate tolhern in an auditors. reportand fornoolh8rpurpose. To thg fullgst extent pem)illed by 18W, Wg do not a or a￿8￿￿ re5portsiblty to anyone Other the tharitabl• company and the charttable compan￿$ members a body. for our wdrt 7hvk. ts this Tw1. w for the OPWlKffj8 we have fom)￿. Nlchdas Paul Sandy FCA Isenio Stattrtory Auditor) for 8nd on behalf of Richards Sandy SerV￿8s knnted (Statutory Auditor Thomeloe House 25 8art>oumè Road Worcesler WR1 1RU Page 10

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31st March 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
Charitable activities
Sports delivery and participation
Postural stability
Training and workforce
Other trading activities
4
Investment income
5
Total
EXPENDITURE ON
Charitable activities
7
Sports delivery and participation
Postural stability
Training and workforce
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
20
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
-
-
76,365
1,803
14,424
40
92,632
19,892
70,474
-
90,366
2,266
4,053
6,319
597,424
603,743		 Restricted
funds
£
681,579
367,017
-
48,108
-
-
1,096,704
867,968
-
48,349
916,317
180,387
(4,053)
176,334
240,987
417,321		 2022
Total
funds
£
681,579
367,017
76,365
49,911
14,424
40
1,189,336
887,860
70,474
48,349
1,006,683
182,653
-
182,653
838,411
**1,021,064 **		 2021
Total
funds
£
306,182
294,964
76,365
56,847
270
101
734,729
651,165
76,121
39,745
767,031
(32,302)
-
(32,302)
870,713
838,411

The notes form part of these financial statements

Page 11

Sports Partn•rshlp H•t•fordshir• And Woreost•rshlr• Tvading ￿ Acti￿ HeT•fordshtrv & Worc•sl•r•hlr• Balane• Sh••t 31st March 2022 2022 2021 FIXED ASSETS Tanglbl• assots 15 8.918 9.164 CURRENT ASSErs Dèbtors C85h at bank 16 537A80 511 239 115,103 1,048.719 859,111 cRE￿￿OR8 Arno￿ls falling &J• cTh ye 17 {36,5731 128,4641 NET CURRENT A88Ef8 1 012 141 TOTAL A88ET3 LESS CURRENT UABILMES 1,021.064 839.811 CREDITORS knounts lalllng duo aft8r than LTh yoor 18 11,4001 NET ASSETS 1021064 838.411 FUNDS Unresfficted fvnd$ Restricted funds 003.743 417 321 597.424 240,987 TOTAL FUNDS 1021064 838411 Th•s• fin￿da1 slat•m•nts hav• b￿n pr•par•d tAlh th• p￿￿1￿ aFP1kab￿ to charilabh ￿mpanI•S $ubj$ei to tha small tA)mpani8s regime. The fi'nancAal statemonts worn awov•d bythe Board olTnto8s and ault￿•d lorlswM ￿.... and w•r• 8hJned on 118 b•half ty. JHWT usl P899 12

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Cash Flow Statement
for the Year Ended 31st March 2022
2022
Notes
£
Cash flows from operating activities
Cash generated from operations
1
(228,756)
Net cash (used in)/provided by operating activities
(228,756)
Cash flows from investing activities
Purchase of tangible fixed assets
(4,053)
Interest received
40
Net cash used in investing activities
(4,013)
Change in cash and cash equivalents in the reporting period
(232,769)
Cash and cash equivalents at the beginning of the reporting period
744,008
Cash and cash equivalents at the end of the reporting period
511,239		 2021
£
376,870
376,870
(6,228)
101
(6,127)
370,743
373,265
744,008

The notes form part of these financial statements

Page 13

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

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

ACTIVITIES
2022 2021
£ £
Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities) 182,653 (32,302)
Adjustments for:
Depreciation charges 4,299 3,954
Interest received (40) (101)
(Increase)/decrease in debtors (422,377) 417,853
Increase/(decrease) in creditors 6,709 (12,534)
Net cash (used in)/provided by operations **(228,756) ** 376,870
2. ANALYSIS OF CHANGES IN NET FUNDS
At 1.4.21 Cash flow At 31.3.22
£ £ £
Net cash
Cash at bank 744,008 (232,769) 511,239
744,008 (232,769) 511,239
Total 744,008 (232,769) 511,239

The notes form part of these financial statements

Page 14

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

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, except in regard to the treatment of the LGPS as if it was a defined contribution scheme rather than if it was a defined benefit scheme, which is a departure from the requirement of FRS 102 done on the basis that accounting for the LGPS as a defined benefit scheme is inconsistent with the requirement to give a true and fair view (see the accounting policy for pension costs for more details).

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

The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1.

GOING CONCERN

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the charity’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

INCOME

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

Income from grants and donations is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. Income from grants is only deferred when the charity has to fulfil conditions not yet met before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Income from the provision of courses and other commercial services are recognised on delivery of those services.

Interest income is recognised for all interest-bearing instruments on an accrual basis.

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.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

ALLOCATION AND APPORTIONMENT OF COSTS

All direct costs that can be identified to a specific fund are allocated to that fund.

Wage costs are split between individual funds based on estimated split of time spent on the activities of each fund for each individual staff member.

General support costs are split between funds based on estimated staff hours spent on the activities of each fund.

TAXATION

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

Page 15

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

1. ACCOUNTING POLICIES - continued

TANGIBLE FIXED ASSETS

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

Sports equipment - 25% on reducing balance Fixtures and fittings - 20% on reducing balance Computer equipment - 33% on cost

All fixed assets are initially measured at cost and depreciated as detailed above. Items under £250 are not capitalised.

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.

OPERATING LEASES

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

The company operates both a defined contribution pension scheme and participates in a Local Government Pension Scheme.

Contributions payable to the company's defined contribution pension scheme are charged to profit or loss in the period to which they relate.

The Local Government Pension Scheme (LGPS) is a funded multi-employer defined benefit scheme and the assets are held separately from those of the company in separate trustee administered funds. Whilst it would be possible to obtain an actuarial valuation of the charity's share of the LGPS to which the charity belongs, the trustees of the charity believe that to account for the LGPS as a defined benefit scheme, rather than as a defined contribution scheme, would be inconsistent with the requirement to give a true and fair view. This is because the trustees do not consider their annual contributions relating to settling their share of the LGPS's current forecast deficit to be material to the accounts of the charity (based on the information provided within the most recent triennial actuarial valuation of the relevant LGPS) and also due to the very low number of members of the LGPS allocated to the charity compared to the overall number of members of the relevant LGPS, it is considered probable that an actuarial valuation of the charity's share of the deficit would likely be significantly below the level of materiality of the LGPS's own full actuarial valuation and as such the charity would be disproportionately affected by any significant uncertainty in assumptions or errors compared to other scheme employers. In addition, the minority of employees of the charity that belong to the LGPS includes the chief executive officer and accounting for the LGPS as a defined benefit scheme would likely cause adjustments to disclosures concerning the remuneration paid to key management personnel in such a way that is not likely to be accurately determined on an individual employee basis and would likely be less comparable year on year due to changes in actuarial assumptions applied each year. The trustees therefore believe that accounting for their payments to the LGPS as a defined contribution scheme better reflects the actual financial impact to the charity.

Where the charity has entered into an agreement with the LGPS that determines how the charity will fund a deficit, the charity recognises at that point a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense is recognised within the statement of financial activities.

FINANCIAL INSTRUMENTS

The charity has elected to apply the provisions of Section 11' Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the charity becomes party to contractual provisions of the instrument.

Financial assets are offset, with the net amounts presented in the accounts where there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Page 16

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

1. ACCOUNTING POLICIES - continued

Basic Financial Assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic Financial Liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts, discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of the operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction.

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical areas of judgement

The Local Government Pension Scheme is a funded multi-employer defined benefit scheme and the assets are held separately from those of the company in separate trustee administered funds. There is deemed to be insufficient information available without incurring costs deemed to outweigh the benefit to users of the accounts to apply defined benefit accounting of the Local Government Pension Scheme. The Local Government Pension Scheme is therefore accounted for as if it was a defined contribution plan, with contributions payable to the Local Government Pension Scheme charged to profit or loss in the period to which they relate.

The allocation of staff costs between individual unrestricted and restricted funds is based on the estimated split of staff time for each individual employee of the charity. The allocation of general support costs is between individual unrestricted and restricted funds is directly linked to the assumptions made in allocating staff costs between individual unrestricted and restricted funds.

3. DONATIONS AND LEGACIES

4.

DONATIONS AND LEGACIES
Grants
Grants received, included in the above, are as follows:
Sport England
Herefordshire Council
Worcestershire County Council
Education and Skills Funding Agency
OTHER TRADING ACTIVITIES
Course income
PSI takings
Commercial income		 2022
£
681,579
2022
£
432,579
155,000
92,000
2,000
681,579
2022
£
167
8,606
5,651
14,424		 2021
£
306,182
2021
£
306,182
-
-
-
306,182
2021
£
270
-
-
270

Page 17

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

5. INVESTMENT INCOME

Bank interest
6.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Grants and contract income
Sports delivery and participation
Grants and contract income
Postural stability
Grants and contract income
Training and workforce
Grants received, included in the above, are as follows:
Sport England
Worcestershire County Council
The National Lottery Community Fund
Herefordshire Council
YMCA Worcester
West Midlands Combined Authority
Herefordshire and Worcestershire Chamber Of Commerce
Young Solutions
Neighbourly Community Fund		 2022
£
40
2022
£
367,017
76,365
49,911
493,293
2022
£
281,707
76,365
86,496
45,000
-
-
1,803
1,922
-
493,293		 2021
£
101
2021
£
294,964
76,365
56,847
428,176
2021
£
253,467
77,365
86,496
-
5,701
2,500
2,247
-
400
428,176

7. CHARITABLE ACTIVITIES COSTS

Direct
Costs (see
note 8)
£
Sports delivery and participation
133,538
Postural stability
35,943
Training and workforce
16,589
186,070
DIRECT COSTS OF CHARITABLE ACTIVITIES
Equipment
Venue hire
Coaching and tutor fees
Programme management
Courses
Hospitality and refreshments
Design and printing
Photography and videography
Branded merchandise
Bad debts
Depreciation		 Grant
funding of
activities
(see note
9)
£
371,929
-
2,000
373,929		 Support
costs (see
note 10)
£
382,393
34,531
29,760
446,684
2022
£
1,374
6,894
25,019
103,079
8,150
2,452
870
3,957
33,171
(35)
1,139
186,070		 Totals
£
887,860
70,474
48,349
1,006,683
2021
£
13,771
(102)
25,736
93,764
6,292
423
4,438
1,359
4,023
209
1,519
151,432

8. DIRECT COSTS OF CHARITABLE ACTIVITIES

Page 18

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

9. GRANTS PAYABLE

Sports delivery and participation
Training and workforce
The total grants paid to institutions during the year was as follows:
Active Youth Outreach Services CIC
Age UK Herefordshire and Worcestershire
All Active Academy CIC
Avidean Ltd t/a The Droitwich Sign and Print Co
Bewdley Rowing Club
Bodyshot Boxing Redditch
Bromsgrove Gymnastics Club
Chadsgrove School
Demi Mooton
Dimensions UK
Droitwich Spa Town Council
Freedom Leisure
Hereford Rowing Club
Heart of Worcestershire College
Holy Trinity School and Sixth Form Centre
Hunderton Community Gardens Association
Ignite CIC
The Odell Trust
Pitcheroak School
Really Rural - Outdoors for All CIC
The Redditch Self Defence Association
Redgate Sports - Community Interest Company
Saint Mary's RC High School
Sandycroft Centre
Services for Independent Living
Springfield Mind
Stride Active
Trinity High School and Sixth Form Centre
University of Worcester
Vale of Evesham School
Whitecross Hereford
Worcestershire Acute Hospitals Charity
Wigmore High School
Sundry small grants (less than £5,000 each)		 2022
£
371,929
2,000
373,929
2022
£
5,260
26,339
7,900
5,000
11,573
6,805
12,645
5,000
5,845
6,520
7,991
5,694
7,001
-
6,800
6,480
7,957
-
5,000
-
-
6,600
12,855
-
7,976
8,790
19,995
5,000
6,181
5,000
-
-
13,000
148,722
373,929		 2021
£
151,530
(2,960)
148,570
2021
£
1,480
10,000
6,940
-
-
-
-
-
-
-
-
6,456
-
(6,600)
-
-
35,231
5,000
-
5,163
11,219
-
-
9,999
-
-
-
-
-
-
4,650
8,502
-
50,530
148,570

During the previous year Heart of Worcestershire College returned a grant issued to them in 2020, as they were unable to use the funds for the purpose for which the grant was originally paid to them.

Page 19

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

10. SUPPORT COSTS

Sports delivery and participation
Postural stability
Training and workforce
Support costs, included in the above, are as follows:
Wages
Social security
Pensions
Rent
Insurance
Telephone
Postage and office supplies
Advertising and marketing
Sundries
Subscriptions
Training
Travel
Computer
Professional fees
Bank charges
Depreciation
Auditors' remuneration
Auditor's fees for other services		 2022
£
382,393
34,531
29,760
446,684
2022
£
298,604
23,555
38,319
9,481
3,685
1,653
7,480
2,908
3,410
11,945
1,272
2,232
18,995
8,699
166
3,160
4,950
6,170
**446,684 **		 2021
£
398,439
39,010
29,580
467,029
2021
£
346,769
25,687
44,415
12,119
2,426
1,673
1,813
2,198
527
7,247
2,235
926
8,793
641
129
2,435
3,060
**3,936 **
467,029

11. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration
Auditor's fees for other services
Depreciation - owned assets
Other operating leases		 2022
£
4,950
6,170
4,299
**9,481 **		 2021
£
3,060
3,936
3,954
12,119

12. TRUSTEES' REMUNERATION AND BENEFITS

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

TRUSTEES' EXPENSES

There were no trustees' expenses paid for the year ended 31st March 2022 nor for the year ended 31st March 2021.

Page 20

continued...

Sports Partnership Herefordshire And Worcestershire

Trading as Active Herefordshire & Worcestershire

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

13. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Average number of employees		 2022
£
298,604
23,555
38,319
360,478
2022
13		 2021
£
346,769
25,687
44,415
416,871
2021
14

No employees received employee benefits (excluding employer pension and employer N.I. costs) of more than £60,000 in either the current or previous years.

Total remuneration (including employer pension and employer N.I. costs) paid to key management personnel totalled £76,372 (2021 - £74,859).

14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
-
Charitable activities
Sports delivery and participation
-
Postural stability
76,365
Training and workforce
2,247
Other trading activities
270
Investment income
101
Total
78,983
EXPENDITURE ON
Charitable activities
Sports delivery and participation
17,353
Postural stability
76,121
Training and workforce
28,432
Total
121,906
NET INCOME/(EXPENDITURE)
(42,923)
Transfers between funds
5,094
Net movement in funds
(37,829)
RECONCILIATION OF FUNDS
Total funds brought forward
635,253
TOTAL FUNDS CARRIED FORWARD
597,424		 Restricted
funds
£
306,182
294,964
-
54,600
-
-
655,746
633,812
-
11,313
645,125
10,621
(5,094)
5,527
235,460
240,987		 Total
funds
£
306,182
294,964
76,365
56,847
270
101
734,729
651,165
76,121
39,745
767,031
(32,302)
-
(32,302)
870,713
838,411

Page 21

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

15. TANGIBLE FIXED ASSETS

Fixtures
Sports
and
equipment
fittings
£
£
COST
At 1st April 2021
14,400
1,400
Additions
984
-
At 31st March 2022
15,384
1,400
DEPRECIATION
At 1st April 2021
9,844
973
Charge for year
1,139
84
At 31st March 2022
10,983
1,057
NET BOOK VALUE
At 31st March 2022
4,401
343
At 31st March 2021
4,556
427
16.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Accrued income
Prepayments
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Pension creditor (see note 23)
Accrued expenses
18.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Pension creditor (see note 23)		 Computer
equipment
£
11,330
3,069
14,399
7,149
3,076
10,225
4,174
4,181
2022
£
6,721
-
518,825
11,934
537,480
2022
£
18,729
1,400
16,444
36,573
2022
£
-		 Computer
equipment
£
11,330
3,069
14,399
7,149
3,076
10,225
4,174
4,181
2022
£
6,721
-
518,825
11,934
537,480
2022
£
18,729
1,400
16,444
36,573
2022
£
-		 Totals
£
27,130
4,053
31,183
17,966
4,299
22,265
8,918
9,164
2021
£
355
600
103,988
10,160		 Totals
£
27,130
4,053		 Totals
£
27,130
4,053
31,183
17,966
4,299
22,265
8,918
9,164
115,103
2021
£
20,904
1,400
6,160
28,464
2021
£
1,400

Page 22

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Debtors
Cash at bank
Creditors - due within 1 year
Inter-fund loans
Total funds		 Restricted
funds
£
-
530,643
295,340
(32,112)
(376,550)
417,321		 Designated
funds
£
-
-
215,899
-
184,101
400,000		 General
unrestricted
funds
£
8,918
6,837
-
(4,461)
192,449
203,743		 Total
funds
£
8,918
537,480
511,239
(36,573)
-
**1,021,064 **

At the year end the charity was owed grant income from Sport England. Cash reserves that would otherwise have been allocated to the general unrestricted and designated funds has been used to finance restricted fund expenditure ahead of this grant income being received. This has been accounted for as inter-fund loans in the above table.

20. MOVEMENT IN FUNDS

Transfers
Incoming
Resources
between
At 1.4.21
resources
expended
funds
At
£
£
£
£
Unrestricted funds
General unrestricted fund
201,524
92,632
(90,366)
(47)
Designated fund
250,000
-
-
-
Redundancy fund
50,000
-
-
-
Pension fund
95,900
-
-
4,100
597,424
92,632
(90,366)
4,053
Restricted funds
Primary Role
20,723
206,182
(210,202)
(4,053)
Children and Young People -
Sport England
38,578
233,599
(198,829)
-
Children and Young People -
Dept. for Education
5,365
-
-
-
School Games Herefordshire
10,075
-
(10,075)
-
Satellite Clubs
79,573
-
(56,540)
-
Workforce
13,043
48,108
(48,349)
-
Opening Schools Facilities
-
140,897
(140,897)
-
Commonwealth Legacy
School Games
-
35,500
(24,055)
-
Tackling Inequalities Fund -
Sport England
15,054
50,000
(51,666)
-
Tackling Inequalities Fund -
Worcestershire County Council
-
92,000
(46,138)
-
Tackling Inequalities Fund -
Herefordshire Council
-
105,000
(35,256)
-
Grass Roots
-
50,000
(20,000)
-
My Age Can
-
45,000
(1,394)
-
Active Communities
52,665
86,496
(70,746)
-
Other Youth Development
4,968
1,922
(170)
-
Macmillan
943
-
-
-
Apprenticeship
-
2,000
(2,000)
-
240,987
1,096,704
(916,317)
(4,053)
TOTAL FUNDS
838,411
1,189,336
(1,006,683)
-
 31.3.22
£
203,743
250,000
50,000
100,000
603,743
12,650
73,348
5,365
-
23,033
12,802
-
11,445
13,388
45,862
69,744
30,000
43,606
68,415
6,720
943
-
417,321
**1,021,064 **

Page 23

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

20. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Transfers
Incoming
Resources
between
At 1.4.20
resources
expended
funds
At
£
£
£
£
Unrestricted funds
General unrestricted fund
239,353
78,983
(121,906)
5,094
Designated fund
250,000
-
-
-
Redundancy fund
50,000
-
-
-
Pension fund
95,900
-
-
-
635,253
78,983
(121,906)
5,094
Restricted funds
Primary Role
48,032
206,181
(233,491)
-
Children and Young People -
Sport England
-
83,846
(45,268)
-
Children and Young People -
Dept. for Education
-
14,600
(4,141)
(5,094)
Primary PE and Sport Premium
8,751
-
(8,751)
-
School Games Worcestershire
27,961
-
(27,961)
-
School Games Herefordshire
39,668
-
(29,592)
-
Satellite Clubs
53,833
115,022
(89,282)
-
Workforce
7,714
42,500
(37,171)
-
Tackling Inequalities Fund -
Sport England
-
100,000
(84,946)
-
Active Communities
42,656
86,496
(76,487)
-
Other Youth Development
5,633
7,101
(7,766)
-
Macmillan
1,212
-
(269)
-
235,460
655,746
(645,125)
(5,094)
TOTAL FUNDS
870,713
734,729
(767,031)
-		 31.3.21
£
201,524
250,000
50,000
95,900
597,424
20,722
38,578
5,365
-
-
10,076
79,573
13,043
15,054
52,665
4,968
943
240,987
838,411

PURPOSE OF DESIGNATED FUNDS

Operational reserve fund

The trustees have put reserves to one side so that if significant funding is lost, time is allocated to seek alternatives. If alternative sources of funding are not secured and the charity had to be wound down this can be managed and any commitments honoured.

This designated fund is not expected to be expended within the foreseeable future.

Redundancy fund

Redundancy costs are not an eligible cost for any of the grants or contracts that the charity currently receives. The charity has set aside a redundancy reserve in case that the charity's funding agreements with its primary funding provider Sport England end or is significantly reduced, as that would necessitate the charity to make some or all of its staff redundant.

Whilst the activities of Sport England are subject to government policy and are therefore subject to changes in government, there is currently no indication that Sport England will cease funding the charity within the foreseeable future. The remaining balance in this designated fund is therefore not expected to be expended within the foreseeable future.

Pension fund

The charity has both current and past employees who are members of Worcestershire Pension Fund (a Local Government Pension Scheme). The trustees have set aside a pension reserve in case the charity is called upon to pay additional lump sum pension contributions to cover their share of any actuarial deficits in the LGPS, including those created in future periods following significant future changes in actuarial projections.

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continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

20. MOVEMENT IN FUNDS - continued

Based on Worcestershire Pension Fund's triennial actuarial valuation results as at 31 March 2022 the charity's share of the scheme is forecast to be in surplus as at that date.

However there is an additional complication in that the staff who are members of this pension scheme (both current and past) were originally employed by Worcester City Council who were transferred to the charity under TUPE Regulations when the charity was first set up. Whilst Worcester City Council is responsible for the share of the Worcestershire Pension Fund relating to the employment of these staff up to the date that their employment was transferred to the charity, there is the possibility that the charity may be called upon to make additional contributions to the Worcestershire Pension Fund to cover Worcester City Council’s share of these pension obligations.

PURPOSE OF RESTRICTED FUNDS

Primary Role

Sport England funding received for the purpose of achieving a strong granular understanding of the place and people, an ability to broker and facilitate a much wider range of relationships, where necessary supporting projects and relationships on Sport England’s behalf and supporting local authorities by consent.

Children and Young People (SE) fund

Sport England funding received for the purpose of having a strong understanding of young people (people and place), and work with local structures to develop and deliver positive experiences for young people (over 5) in order to increase the number of children and young people who have a positive attitude towards sport and physical activity. This includes continuing to deliver School Games Festivals, Active Lives Children and Young People Survey and Volunteer Leaders & Coaches Programme.

Children and Young People (DfE) fund

Additional funding received from Dept. for Education relating to the Children and Young People (SE) fund.

Primary PE and Sport Premium fund

The Primary PE and Sport Premium (PPSP) is ring fenced money to primary schools in order to improve the quality of primary PE. A significant focus of the premium is how it can be used to provide sustained development of sport, physical activity and PE within schools.

From September 2020 this fund has been replaced by the Children and Young People fund.

School Games Worcestershire and School Games Herefordshire funds

The School Games is a government led programme designed to deliver competitive school sport to all young people. A network of School Games Organisers (SGOs) and Local Organising Committees (LOCs) have worked alongside the Youth Sport Trust in delivering three distinct levels of competition since the Games' inception in 2010 - ranging from intra-inter school activity, in addition to the National Finals, which is supported by National Governing Bodies.

From September 2020 this fund has been replaced by the Children and Young People fund.

Satellite Clubs fund

Sport England funding originally received to establish new and regular opportunities for inactive people aged 1419 to participate in sport or physical activity.

Since then Sport England has expanded the purpose for which the remaining unspent funding can be used for to include any costs that can otherwise be allocated to the Children and Young People fund.

Opening Schools Facilities

Sport England funding received for the purpose of helping schools open their facilities to the public once the coronavirus (Covid-19) pandemic is over.

Commonwealth Legacy School Games

Sport England funding received for the purpose of using the Birmingham 2022 Commonwealth Games as a catalyst to help get more people active.

Workforce fund

Funding used in helping to recruit, develop and deploy a quality and diverse workforce through the charity's work with sport and non-sport partners and sectors.

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continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

20. MOVEMENT IN FUNDS - continued

Tackling Inequalities Fund

Funding received to help the sport and physical activity sector through the coronavirus (Covid-19) crisis.

Grass Roots

Herefordshire Council funding received to be used to assist non-government affiliated sports clubs from recommencing activities following Covid.

My Age Can

Herefordshire Council funding received to be used both increase rural led walks across Herefordshire and deliver 12 weeks of PA taster opportunities within communities and workplaces, focussing on activities, such as, but not limited to walking sports, thai chi, Nordic walking, chair based exercises, gentler activity.

Active Communities fund

Funding to encourage participation in local rural areas and obtain support from local community leaders to help to sustain projects in the long term.

Other Youth Development fund

Funding to deliver a programme of diversionary activities for at risk youth.

Macmillan fund

Funding for the Move-More Coordinator - to engage with patients whose lives have been affected by cancer and help them to become more active.

Apprenticeship fund

Funding received from ESFA to assist with employing an apprentice member of staff.

TRANSFERS BETWEEN FUNDS

During the year tangible fixed asset additions totalling £4,053 was paid out of core restricted funds was transferred to general funds on purchase.

£4,100 was transferred from general unrestricted funds to the pension fund to bring the pension fund in line with the trustees reserve policy.

21. RELATED PARTY DISCLOSURES

There were no related party transactions for either the current or comparative years.

22. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

23. PENSION COMMITMENTS

The charity's employees belong to two principal pension schemes, being the Local Government Pension Scheme (LGPS), which is managed by Worcestershire Pension Fund, for the staff who were employed by the charity when it was first incorporated and had their transferred to the charity under TUPE Regulations, and a defined contribution scheme for all other staff.

Employer pension costs for the year were as follows:

Multi-employee defined benefit schemes
Defined contribution schemes		 2022
£
16,356
21,963
38,319		 2021
£
17,171
27,244
44,415

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continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

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

23. PENSION COMMITMENTS - continued

The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds. The agreed contribution rates for employers is 21.5% for the next financial year and are expected to pay 22.5% for the 3 years after that. Employees pay contributions at variable rates depending on their level of gross wages received each month. In addition the charity is paying lump sum deficit contributions payments totalling £4,100 over the three years between 2021 and 2023. Based on Worcestershire Pension Fund's triennial actuarial valuation results as at 31 March 2022 the charity's share of the scheme is forecast to be in surplus and the charity is expected to receive a total of £8,800 back in the form of reduced employer contribution payable to the pension fund between 2024 and 2026 (although these figures have yet to be confirmed and as such has not been provided for in the current year's financial statements).

At the year end the charity had the following pension creditors:

Creditors: amounts falling due within one year (note 17)
Creditors: amounts falling due after more than one year (note 18)
Multi-employee defined benefit schemes - lump sum top-up payments		 2022
£
1,400
-
1,400
1,400
1,400		 2021
£
1,400
1,400
2,800
2,800
2,800

Page 27

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Detailed Statement of Financial Activities for the Year Ended 31st March 2022

INCOME AND ENDOWMENTS
Donations and legacies
Grants
Other trading activities
Course income
PSI takings
Commercial income
Investment income
Bank interest
Charitable activities
Grants and contract income
Total incoming resources
EXPENDITURE
Charitable activities
Equipment
Venue hire
Coaching and tutor fees
Programme management
Courses
Hospitality and refreshments
Design and printing
Photography and videography
Branded merchandise
Bad debts
Depreciation of sports equipment
Grants to institutions
Support costs
Wages
Social security
Pensions
Rent
Insurance
Telephone
Postage and office supplies
Advertising and marketing
Sundries
Subscriptions
Training
Travel
Computer
Professional fees
Bank charges
Depreciation of fixtures and fittings
Depreciation of computer equipment		 2022
£
681,579
167
8,606
5,651
14,424
40
493,293
1,189,336
1,374
6,894
25,019
103,079
8,150
2,452
870
3,957
33,171
(35)
1,139
373,929
559,999
298,604
23,555
38,319
9,481
3,685
1,653
7,480
2,908
3,410
11,945
1,272
2,232
18,995
8,699
166
84
3,076
435,564		 2021
£
306,182
270
-
-
270
101
428,176
734,729
13,771
(102)
25,736
93,764
6,292
423
4,438
1,359
4,023
209
1,519
148,570
300,002
346,769
25,687
44,415
12,119
2,426
1,673
1,813
2,198
527
7,247
2,235
926
8,793
641
129
105
2,330
460,033

This page does not form part of the statutory financial statements

Page 28

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Detailed Statement of Financial Activities for the Year Ended 31st March 2022

Governance costs
Auditors' remuneration
Auditor's fees for other services
Total resources expended
Net income/(expenditure)		 2022
£
4,950
6,170
11,120
1,006,683
182,653		 2021
£
3,060
3,936
6,996
767,031
(32,302)

This page does not form part of the statutory financial statements

Page 29