OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-03-31-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 2024

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 2024

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 31
Detailed Statement of Financial Activities 32 to 33

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Reference and Administrative Details for the Year Ended 31st March 2024

TRUSTEES L M Fish
A G Gilmour
J J O'Toole
S M Scriven
D J Strutt (Chair)
P E Sugg
J H W Teal (resigned 6.12.23)
R Widdowson (resigned 3.9.24)
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 2024

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 2024. 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 for the public benefit, to promote community participation in healthy recreation, primarily in Herefordshire and Worcestershire, by:

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:

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.These activities ended on 31 March 2024.

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.

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.

Page 2

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Report of the Trustees for the Year Ended 31st March 2024

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The year saw us progress through year three of our five year funding award with Sport England. We continue to develop and embed our work locally following the national strategy (Uniting the Movement) aspirations. We have made progress in connecting with the broader VCS (Voluntary Community Sector) and developed strong relationship with both Public Health Teams and Integrated Care System. This ensures that whilst we adhere to principle and headlines of Uniting the Movement we reflect local circumstances and priorities. Our work with school continued with a successful calendar of School Games events across the two counties, This Girl Can events (a project focusing on girls and young women), continued support for primary schools in the delivery of their primary school sport premium resources, and welcomed the return of Opening School Facilities. Our Adult work continued to support partners previous funded (in previous years) to embed and sustain their physical activity programmes and develop new opportunities, put real momentum into Our Community Can (a community lottery funded programme) which is in its final year. As a partnership we have embraced to Code of Good Governance and have reviewed the criteria to ensure that we remain compliant and work with Sport England and others to ensure that this is an on-going exercise.

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:

2024 2023
£ £
General unrestricted funds 233,705 224,581
Designated reserve funds 400,000 400,000
Restricted funds 332,603 352,358
Total reserves 966,308 976,939

Further information regarding the designated reserve funds and the restricted funds can be found in note 19.

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

Principal funding sources

The charity is currently dependent on Sport England funding to fulfil its objects as a charity and its objectives as an organisation. Sport England funding accounted for 75% (2023 - 86%) 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 2024

FINANCIAL REVIEW

Reserves policy

The charity's primary funding is in the form of a single annual restricted fund grant from Sports England, which the charity aims to fully spend in the year of receipt.

All other restricted funds relating to specific projects are planned to be fully expensed over the period of the project to which they relate.

See note 19 for further details of individual restricted funds.

The charity has the following designated funds:

Operational Reserve

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 (2023 - £250,000), based on approx. 6 month's budgeted expenditure (excluding some activities funded by fund providers other than Sport England).

Redundancy Fund

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 (2023 - £50,000).

Pension Fund

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 (2023 - £100,000).

In addition, Sport England annual funding is usually received several months after the start of the period to which it relates, so the charity is required to hold cash reserves to fund all relating expenditure to be allocated against this income prior to the receipt of this funding.

At the year end the charity had general unrestricted reserves of £233,705 (2023 - £224,581). Excluding the book value of tangible fixed assets held within general unrestricted funds at the year end of £11,136 (2023 - £13,281), the charity has free reserves of £222,569 (2023 - £211,300). The trustees of the charity plan to use these funds as follows:

Going concern

The charity's primary funding agreement with Sports England is expected to continue for the foreseeable future, with the current primary funding agreement running until 31st March 2027.

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 2024

FINANCIAL REVIEW

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 we look forward to the next year of a system partner funding we seek to increase the awareness of the growing evidence base of the benefits sport and physical activity being built into everyday lives and influence local policy makers and delivery partners. We aim to use data (through Active Lives data) an intelligence (local evaluation of projects and programmes) to do this developing the conversation into tangible action. As the Integrated Care System evolves we are adding weight to the preventative messaging and continue to play a role in the development of the Voluntary and Community Sector (VCS) as trusted delivery partners. As always there are changes in personnel across the 'system' so we seek to establish and maintain good working relationship across the two counties. We continue to expand our training offer to include more than the traditional safeguarding and first aid course and developed funding workshops, mental health first aid and others to reflect need and demand locally. We seek to expand this offer in the coming year and will endeavour to reach a broader audience. We intend to continue to build on the good work of previous years in continuing School games, our support for Primary School Sport Premium and This Girls Can and look to further develop opportunities through Opening Up school Facilities (OSF). Through some additional funding via Sport England we have employed a Sport Welfare Officer who's objective is to raise awareness and offer support with NGBs and local organisation around the importance of safeguarding and providing safe environments for people to be active.

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.

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.

Page 5

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Report of the Trustees for the Year Ended 31st March 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT 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.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

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

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

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

In so far as the trustees are aware:

Page 6

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 2024 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 21 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.

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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we have:

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.

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

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 2024

Notes
INCOME AND ENDOWMENTS
FROM
Donations and legacies
3
Charitable activities
6
Sports delivery and participation
Postural stability
Other trading activities
4
Investment income
5
Total
EXPENDITURE ON
Charitable activities
7
Sports delivery and participation
Postural stability
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
19
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD		 2024
Unrestricted
fund
Unrestricted
discontinued
Restricted
Total
funds
activities
funds
funds
£
£
£
£
-
-
760,049
760,049
-
-
39,232
39,232
-
85,330
-
85,330
6,015
-
-
6,015
4,696
-
-
4,696
10,711
85,330
799,281
895,322
9,107
-
815,238
824,345
-
81,608
-
81,608
9,107
81,608
815,238
905,953
1,604
3,722
(15,957)
(10,631)
7,520
(3,722)
(3,798)
-
9,124
-
(19,755)
(10,631)
624,581
-
352,358
976,939
633,705
-
332,603
966,308		 2023
Total
funds
£
810,897
33,218
80,607
6,575
759
932,056
904,834
71,347
976,181
(44,125)
-
(44,125)
1,021,064
976,939

CONTINUING OPERATIONS

The charity's postural stability contract with Worcestershire County Council came to an end on 31 March 2024.

All other income and expenditure relates to continuing activities.

The notes form part of these financial statements

Page 11

Balance Sheet
31st March 2024
2024 2023
Notes £ £
FIXED ASSETS
Tangible assets 15 11,136 13,281
CURRENT ASSETS
-
Debtors		 16 35,568 92,249
Cash at bank 948,975 957,983
984,543 1,050,232
CREDITORS
Amounts falling due within one year 17 (29,371) (86,574)
NET CURRENT ASSETS 955,172 963,658
TOTALASSETS LESS CURRENT LIABILITIES 966,308 976,939
NET ASSETS 966,308 976,939
FUNDS 19
Unrestricted funds 633,705 624,581
Restricted funds 332,603 352,358
TOTAL FUNDS 966,308 976,939

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Cash Flow Statement for the Year Ended 31st March 2024

2024 2023
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 (9,906) 458,448
Net cash (used in)/provided by operating activities (9,906) 458,448
Cash flows from investing activities
Purchase of tangible fixed assets (3,798) (12,463)
Interest received 4,696 759
Net cash provided by/(used in) investing activities 898 (11,704)
Change in cash and cash equivalents in
the reporting period (9,008) 446,744
Cash and cash equivalents at the
beginning of the reporting period 957,983 511,239
Cash and cash equivalents at the end of
the reporting period 948,975 957,983

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 2024

1.
RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES
2024
£
Net expenditure for the reporting period (as per the Statement of
Financial Activities)
(10,631)
Adjustments for:
Depreciation charges
5,943
Interest received
(4,696)
Decrease in debtors
56,681
(Decrease)/increase in creditors
(57,203)
Net cash (used in)/provided by operations
(9,906)
2023
£
(44,125)
8,100
(759)
445,231
50,001
458,448

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.23 Cash flow At 31.3.24
£ £ £
Net cash
Cash at bank 957,983 (9,008) 948,975
957,983 (9,008) 948,975
Total 957,983 (9,008) 948,975

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 2024

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 using the effective interest method.

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.

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 2024

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.

TAXATION

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

FUND ACCOUNTING

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

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

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

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.

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 2024

1. ACCOUNTING POLICIES - continued

FINANCIAL INSTRUMENTS

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.

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.

The charity is in receipt of a multi-year National Lottery grant award. The charity is receiving this in 6 monthly instalments based on annual budgets. These budgets were initially agreed with the National Lottery when the grant was first awarded, but were later amended due to the relating project being suspended last year as a result of Covid-19, during which the the National Lottery suspended making grant payments to the charity. Grant income due under this grant award to be received in future years has not been accrued for on the basis that the charity may not be entitled to spend part or all of that income in advance of its budgeted years without the further prior approval of the National Lottery. At the year end expected future income under this award of £43,248 (2023 - £129,747) relating to a further 6 months (2023 - 18 months) of project activity.

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 2024

3. DONATIONS AND LEGACIES

Grants
Grants received, included in the above, are as follows:
Sport England
The National Lottery Community Fund
Ignite CIC
Education and Skills Funding Agency
Other grants
4.
OTHER TRADING ACTIVITIES
Course income
PSI takings
Commercial income
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 received, included in the above, are as follows:
Worcestershire County Council
Black Country Consortium Limited
Active Partnerships
WMVS Children in Care Foundation		 2024
£
760,049
2024
£
673,050
86,499
-
-
500
760,049
2024
£
1,400
-
4,615
6,015
2024
£
4,696
2024
£
39,232
85,330
124,562
2024
£
85,330
10,000
21,030
8,202
124,562		 2023
£
810,897
2023
£
801,993
-
6,904
2,000
-
810,897
2023
£
1,340
4,935
300
6,575
2023
£
759
2023
£
33,218
80,607
113,825
2023
£
80,607
15,000
13,218
5,000
113,825

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 2024

7. CHARITABLE ACTIVITIES COSTS

Direct
Costs (see
note 8)
£
Sports delivery and participation
170,202
Postural stability
46,255
216,457
8.
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
Depreciation
9.
GRANTS PAYABLE
Sports delivery and participation
The total grants paid to institutions during the year was as follows:
Active Always Community Wellbeing CIC
All Active Academy CIC
Bromsgrove Gymnastics Club
Open Trail
Press Red Limited
Redditch Community Boxing and Mentoring Limited
The Redditch Self Defence Association
Redgate Sports - Community Interest Company
Saint Mary's RC High School
Sandycroft Centre
Stride Active
Turning Point
University of Worcester
Worcester Community Trust
Worcester Warriors Community Foundation
Worcestershire Cricket Board Limited
Worcestershire Disability Football Club
Sundry small grants (less than £5,000 each)		 Grant
funding of
activities
(see note
9)
£
77,930
-
77,930		 Support
costs (see
note 10)
£
576,213
35,353
611,566
2024
£
8,170
15,725
50,790
93,388
14,216
3,641
1,300
310
27,997
920
216,457
2024
£
77,930
2024
£
-
-
-
3,000
5,130
-
-
2,500
-
-
3,000
-
4,488
-
-
-
-
59,812
77,930		 Totals
£
824,345
81,608
905,953
2023
£
4,214
15,059
20,546
90,393
1,712
3,455
733
8,336
22,168
1,346
167,962
2023
£
289,407
2023
£
7,190
4,950
11,886
11,810
5,387
7,874
15,028
12,500
250
12,305
26,454
5,300
2,400
7,500
10,105
7,076
8,607
132,785
289,407

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 2024

10. SUPPORT COSTS

Governance
Management
costs
£
£
Sports delivery and participation
556,253
19,960
Postural stability
35,353
-
591,606
19,960
Support costs, included in the above, are as follows:
2024
Sports
delivery
and
Postural
Total
participation
stability
activities
£
£
£
Wages
374,879
34,620
409,499
Social security
29,142
-
29,142
Pensions
44,772
-
44,772
Rent
11,988
-
11,988
Insurance
4,577
-
4,577
Telephone
2,415
-
2,415
Postage and office supplies
3,502
717
4,219
Advertising and marketing
-
-
-
Sundries
6,535
16
6,551
Subscriptions
13,586
-
13,586
Training
8,022
-
8,022
Travel
6,688
-
6,688
Computer
7,330
-
7,330
Professional fees
37,710
-
37,710
Bank charges
84
-
84
Depreciation
5,023
-
5,023
Auditors' remuneration
4,125
-
4,125
Auditor's fees for other services
15,835
-
15,835
576,213
35,353
611,566		 Totals
£
576,213
35,353
611,566
2023
Total
activities
£
334,193
29,226
37,768
12,235
4,465
2,274
2,586
774
15,193
9,905
2,603
6,824
10,509
34,727
100
6,754
3,885
4,791
518,812

11. NET INCOME/(EXPENDITURE)

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

2024 2023
£ £
Auditors' remuneration 4,125 3,885
Auditor's fees for other services 15,835 4,791
Depreciation - owned assets 5,943 8,100
Other operating leases 11,988 12,235

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 2024

12. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st March 2024 nor for the year ended 31st March 2023.

TRUSTEES' EXPENSES

There were no trustees' expenses paid for the year ended 31st March 2024 nor for the year ended 31st March 2023.

13. STAFF COSTS

2024
£
Wages and salaries
409,499
Social security costs
29,142
Other pension costs
44,772
483,413
The average monthly number of employees during the year was as follows:
2024
Average number of employees
16
The number of employees whose employee benefits (excluding employer pension and employer
exceeded £60,000 was:		 2024
£
Wages and salaries
409,499
Social security costs
29,142
Other pension costs
44,772
483,413
The average monthly number of employees during the year was as follows:
2024
Average number of employees
16
The number of employees whose employee benefits (excluding employer pension and employer
exceeded £60,000 was:		 2024
£
Wages and salaries
409,499
Social security costs
29,142
Other pension costs
44,772
483,413
The average monthly number of employees during the year was as follows:
2024
Average number of employees
16
The number of employees whose employee benefits (excluding employer pension and employer
exceeded £60,000 was:		 2023
£
334,193
29,226
37,768
401,187
2023
14
N.I. costs)
2023
-
2024
£60,001 - £70,000 1

Total remuneration (including employer pension and employer N.I. costs) paid to key management personnel totalled £80,638 (2023 - £76,689).

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 2024

14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Sports delivery and participation
Postural stability
Other trading activities
Investment income
Total
EXPENDITURE ON
Charitable activities
Sports delivery and participation
Postural stability
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
15.
TANGIBLE FIXED ASSETS
COST
At 1st April 2023
Additions
Disposals
At 31st March 2024
DEPRECIATION
At 1st April 2023
Charge for year
Eliminated on disposal
At 31st March 2024
NET BOOK VALUE
At 31st March 2024
At 31st March 2023		 Unrestricted
funds
£
-
-
-
1,640
759
2,399
7,234
-
7,234
(4,835)
25,673
20,838
603,743
624,581
Sports
equipment
£
16,368
-
-
16,368
12,329
919
-
13,248
3,120
4,039		 Unrestricted
fund
discontinued
activities
£
-
-
80,607
4,935
-
85,542
-
71,347
71,347
14,195
(14,195)
-
-
-
Fixtures
and
fittings
£
2,716
-
-
2,716
1,389
248
-
1,637
1,079
1,327		 Restricted
funds
£
810,897
33,218
-
-
-
844,115
897,600
-
897,600
(53,485)
(11,478)
(64,963)
417,321
352,358
Computer
equipment
£
24,562
3,798
(4,338)
24,022
16,647
4,776
(4,338)
17,085
6,937
7,915		 Total
funds
£
810,897
33,218
80,607
6,575
759
932,056
904,834
71,347
976,181
(44,125)
-
(44,125)
1,021,064
976,939
Totals
£
43,646
3,798
(4,338)
43,106
30,365
5,943
(4,338)
31,970
11,136
13,281

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 2024

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

16.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Accrued income
Prepayments
17.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Accrued expenses		 2024
£
6,515
2,800
26,253
35,568
2024
£
11,887
17,484
29,371		 2023
£
13,334
70,121
8,794
92,249
2023
£
54,606
31,968
86,574

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

General
Restricted Designated unrestricted Total
funds funds funds funds
£ £ £ £
Tangible fixed assets - - 11,136 11,136
Debtors 35,520 - 48 35,568
Cash at bank 323,429 400,000 225,546 948,975
Creditors - due within 1 year (26,346) - (3,025) (29,371)
Total funds 332,603 400,000 233,705 966,308

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 2024

19. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
Unrestricted funds
General unrestricted fund
Discontinued unrestricted activities
Designated fund
Redundancy fund
Pension fund
Restricted funds
Primary Role
Children and Young People - Dept. for
Education
Sports Welfare Officers
Commonwealth Legacy School Games
Tackling Inequalities Fund - Sport England
Tackling Inequalities Fund -
Worcestershire County Council
Tackling Inequalities Fund - Herefordshire
Council
Grass Roots
My Age Can
Active Communities
Other Youth Development
Ignite CIC
TOTAL FUNDS		 At 1.4.23
£
224,581
-
250,000
50,000
100,000
624,581
212,605
5,365
-
495
37,926
6,940
8,500
3,000
8,306
39,397
22,920
6,904
352,358
976,939		 Net
movement
in funds
£
1,604
3,722
-
-
-
5,326
54,652
-
19,248
(495)
(37,926)
(6,940)
(8,500)
(3,000)
(8,306)
(3,522)
(21,168)
-
(15,957)
(10,631)		 Transfers
between
funds
£
7,520
(3,722)
-
-
-
3,798
(2,192)
-
(1,606)
-
-
-
-
-
-
-
-
-
(3,798)
-		 At
31.3.24
£
233,705
-
250,000
50,000
100,000
633,705
265,065
5,365
17,642
-
-
-
-
-
-
35,875
1,752
6,904
332,603
966,308

Page 24

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Notes to the Financial Statements - continued for the Year Ended 31st March 2024

19. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General unrestricted fund
Discontinued unrestricted activities
Restricted funds
Primary Role
Sports Welfare Officers
Commonwealth Legacy School Games
Tackling Inequalities Fund - Sport England
Tackling Inequalities Fund -
Worcestershire County Council
Tackling Inequalities Fund - Herefordshire
Council
Grass Roots
My Age Can
Active Communities
Other Youth Development
Opening School Facilities Programme fund
TOTAL FUNDS		 Incoming
resources
£
10,711
85,330
96,041
602,250
27,300
-
44,000
-
-
-
-
86,499
18,202
21,030
799,281
895,322		 Resources
Movement
expended
in funds
£
£
(9,107)
1,604
(81,608)
3,722
(90,715)
5,326
(547,598)
54,652
(8,052)
19,248
(495)
(495)
(81,926)
(37,926)
(6,940)
(6,940)
(8,500)
(8,500)
(3,000)
(3,000)
(8,306)
(8,306)
(90,021)
(3,522)
(39,370)
(21,168)
(21,030)
-
(815,238)
(15,957)
(905,953)
(10,631)

Page 25

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Notes to the Financial Statements - continued for the Year Ended 31st March 2024

19. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General unrestricted fund
Discontinued unrestricted activities
Designated fund
Redundancy fund
Pension fund
Restricted funds
Primary Role
Children and Young People - Sport
England
Children and Young People - Dept. for
Education
Satellite Clubs
Workforce
Commonwealth Legacy School Games
Tackling Inequalities Fund - Sport England
Tackling Inequalities Fund -
Worcestershire County Council
Tackling Inequalities Fund - Herefordshire
Council
Grass Roots
My Age Can
Active Communities
Other Youth Development
Macmillan
Ignite CIC
TOTAL FUNDS		 At 1.4.22
£
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		 Net
movement
in funds
£
(4,835)
14,195
-
-
-
9,360
211,433
(73,348)
-
(23,033)
(12,802)
(10,950)
24,538
(38,922)
(61,244)
(27,000)
(35,300)
(29,018)
16,200
(943)
6,904
(53,485)
(44,125)		 Transfers
between
funds
£
25,673
(14,195)
-
-
-
11,478
(11,478)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(11,478)
-		 At
31.3.23
£
224,581
-
250,000
50,000
100,000
624,581
212,605
-
5,365
-
-
495
37,926
6,940
8,500
3,000
8,306
39,397
22,920
-
6,904
352,358
976,939

Page 26

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Notes to the Financial Statements - continued for the Year Ended 31st March 2024

19. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General unrestricted fund
Discontinued unrestricted activities
Restricted funds
Primary Role
Children and Young People - Sport
England
Satellite Clubs
Workforce
Commonwealth Legacy School Games
Tackling Inequalities Fund - Sport England
Tackling Inequalities Fund -
Worcestershire County Council
Tackling Inequalities Fund - Herefordshire
Council
Grass Roots
My Age Can
Active Communities
Other Youth Development
Macmillan
Apprenticeship fund
Ignite CIC
Opening School Facilities Programme fund
TOTAL FUNDS		 Incoming
resources
£
2,399
85,542
87,941
601,751
-
-
-
60,000
140,242
-
-
-
-
-
20,000
-
2,000
6,904
13,218
844,115
932,056		 Resources
Movement
expended
in funds
£
£
(7,234)
(4,835)
(71,347)
14,195
(78,581)
9,360
(390,318)
211,433
(73,348)
(73,348)
(23,033)
(23,033)
(12,802)
(12,802)
(70,950)
(10,950)
(115,704)
24,538
(38,922)
(38,922)
(61,244)
(61,244)
(27,000)
(27,000)
(35,300)
(35,300)
(29,018)
(29,018)
(3,800)
16,200
(943)
(943)
(2,000)
-
-
6,904
(13,218)
-
(897,600)
(53,485)
(976,181)
(44,125)

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 a Local Government Pension Scheme (LGPS). 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 changes in actuarial projections.

Page 27

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Notes to the Financial Statements - continued for the Year Ended 31st March 2024

19. 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

System Partner fund

Sport England funding received for the purpose of creating a healthier Herefordshire & Worcestershire by harnessing the power of physical activity, focussing on those populations that are the least engaged and would most benefit from regular opportunities.

From April 2022 Sport England now issues a single combined grant which incorporates funding previously received separately as Children and Young People and Workforce funding.

Children and Young People 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.

From April 2022 this fund has been incorporated into the System Partner funding.

Children and Young People (DfE) fund

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

Sports Welfare Officers

Sport England funding received for the purpose of creating a professional, national network of Sport Welfare Officers in England who will promote good practice and safe sport on a local level.

Satellite Clubs fund

Sport England funding originally received to establish new and regular opportunities for inactive people aged 14-19 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.

From September 2020 this fund has been replaced by the Children and Young People fund (which in turn was replaced by the System Partner funding from April 2022).

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.

From April 2022 this fund has been incorporated into the System Partner funding.

Tackling Inequalities Fund

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

Page 28

continued...

Sports Partnership Herefordshire And Worcestershire

Trading as Active Herefordshire & Worcestershire

Notes to the Financial Statements - continued for the Year Ended 31st March 2024

19. MOVEMENT IN FUNDS - continued

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.

Ignite CIC fund

Funding received to support community development in Herefordshire.

Opening School Facilities Programme fund

Dept. for Education funding received to use school's sports facilities outside of the school's regular day, after school, and during weekends or holidays.

TRANSFERS BETWEEN FUNDS

During the year tangible fixed asset additions totalling £3,798 paid out of restricted funds were transferred to general funds on purchase.

20. RELATED PARTY DISCLOSURES

The spouse of one of the trustees was paid a total of £854 (2023 - £1,200) in regards to photography services.

21. 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.

Page 29

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Notes to the Financial Statements - continued for the Year Ended 31st March 2024

21. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES - continued

22. 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.

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 22.5% for the next 3 years. Employees pay contributions at variable rates depending on their level of gross wages received each month. In addition, 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.

Employer pension costs for the year were as follows:

Employer pension costs for the year were as follows:
2024 2023
£ £
Multi-employee defined benefit schemes 13,784 15,251
Defined contribution schemes 30,988 22,518
44,772 37,769

At the year end the charity had no outstanding pension creditors (2023 - no pension creditors).

23. INCOME RECEIVED FROM PUBLIC INVESTORS

Worcester
-shire Hereford Other
Sports County -shire Public Other
England Council Council Sector Income Total
£ £ £ £ £ £
Income
Grant income 673,050 85,330 - 117,529 8,702 884,611
Trading income - - - - 6,015 6,015
Bank interest - - - - 4,696 4,696
Total income 673,050 85,330 - 117,529 22,809 895,322
Expenditure
Programme management 68,720 2,128 - 22,540 - 93,388
Other direct delivery costs 64,245 44,127 702 12,575 1,420 123,069
Grants issued 71,748 - 5,927 255 - 77,930
Staff costs 318,061 41,560 10,004 97,422 16,366 483,413
General overheads 114,797 733 3,173 4,427 5,023 128,153
Total expenditure 637,571 88,548 19,806 137,219 22,809 905,953
Reallocations(see below) (3,798) (3,722) - - 7,520 -
Surplus/(deficit) for year 31,681 (6,940) (19,806) (19,690) 4,124 (10,631)
Funds as at 1.4.23 251,026 6,940 19,806 62,682 636,485 976,939
Funds as at 31.3.24 282,707 - - 42,992 640,609 966,308

Page 30

continued...

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Notes to the Financial Statements - continued for the Year Ended 31st March 2024

Comparatives for income received from public investors


Worcester
-shire Hereford Other
Sports County -shire Public Other
England Council Council Sector Income Total
£ £ £ £ £ £
Income
Grant income 801,993 80,607 - 30,218 11,904 924,722
Trading income - - - - 6,575 6,575
Bank interest - - - - 759 759
Total income 801,933 80,607 - 30,218 19,238 932,056
Expenditure
Programme management 72,826 13,767 - 3,800 - 90,393
Other direct delivery costs 49,240 23,959 2,065 2,305 - 77,569
Grants issued 214,301 7,532 67,324 250 - 289,407
Staff costs 263,779 51,114 45,000 33,494 7,800 401,187
General overheads 86,009 16,196 9,155 6,265 - 117,625
Total expenditure 686,115 112,568 123,544 46,114 7,800 976,181
Reallocations(see below) (11,478) (6,961) - - 18,439 -
Surplus/(deficit) for year 104,360 (38,922) (123,544) (15,896) 29,877 (44,125)
Funds as at 1.4.22 146,666 45,862 143,350 78,578 606,608 1,021,064
Funds as at 31.3.23 251,026 6,940 19,806 62,682 636,485 976,939

Reallocations

Reallocations include Sports England funding totalling £3,798 (2023 - £11,478) spent on tangible fixed asset additions transferred to unrestricted funds on purchase.

Reallocations also include the surplus in the year of £3,722 (2023 - surplus of £6,961) on a Worcestershire County Council contract for services provided which has been allocated to unrestricted funds (rather than restricted funds).

Omission of cash received and deferred grant reconciliation

Charity SORP requires that charities account for grant income under the "performance" model, and cannot apply the "accruals" model instead.

Under the "performance" model, grants that do not impose specified future performance-related conditions on the recipient is recognised in income when the grant proceeds are received or receivable and grants that impose specified future performance-related conditions on the recipient is recognised in income only when the performance-related conditions are met.

The charity has no deferred income at either the end of the current year end or at the end of the previous year.

Under the "accruals" model, grants are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. If grant income had been accounted for under the "accruals" model, then the charity would have at the year end deferred income approximately equal to the balance of restricted funds.

Page 31

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Detailed Statement of Financial Activities for the Year Ended 31st March 2024

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
Depreciation of sports equipment
Grants to institutions
Support costs
Management
Wages
Social security
Pensions
Rent
Insurance
Telephone
Postage and office supplies
Advertising and marketing
Sundries
Subscriptions
Training
Travel
Computer
Professional fees
Carried forward		 2024
£
760,049
1,400
-
4,615
6,015
4,696
124,562
895,322
8,170
15,725
50,790
93,388
14,216
3,641
1,300
310
27,997
920
77,930
294,387
409,499
29,142
44,772
11,988
4,577
2,415
4,219
-
6,551
13,586
8,022
6,688
7,330
37,710
586,499		 2023
£
810,897
1,340
4,935
300
6,575
759
113,825
932,056
4,214
15,059
20,546
90,393
1,712
3,455
733
8,336
22,168
1,346
289,407
457,369
334,193
29,226
37,768
12,235
4,465
2,274
2,586
774
15,193
9,905
2,603
6,824
10,509
34,727
503,282

This page does not form part of the statutory financial statements

Page 32

Sports Partnership Herefordshire And Worcestershire Trading as Active Herefordshire & Worcestershire

Detailed Statement of Financial Activities for the Year Ended 31st March 2024

2024 2023
£ £
Management
Brought forward 586,499 503,282
Bank charges 84 100
Depreciation of fixtures and fittings 247 332
Depreciation of computer equipment 4,776 6,422
591,606 510,136
Governance costs
Auditors' remuneration 4,125 3,885
Auditor's fees for other services 15,835 4,791
19,960 8,676
Total resources expended 905,953 976,181
Net expenditure (10,631) (44,125)

This page does not form part of the statutory financial statements

Page 33