REGISTERED COMPANY NUMBER: 00622773 (England and Wales) REGISTERED CHARITY NUMBER: 301328
REPORT OF THE TRUSTEES AND
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
FOR
HARLOW AND DISTRICT SPORTS TRUST
Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH
HARLOW AND DISTRICT SPORTS TRUST
CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 March 2023
| Page | |
|---|---|
| Report of the Trustees | 1 to 3 |
| Report of the Independent Auditors | 4 to 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Cash Flow Statement | 9 |
| Notes to the Cash Flow Statement | 10 |
| Notes to the Financial Statements | 11 to 20 |
| Detailed Statement of Financial Activities | 21 to 22 |
HARLOW AND DISTRICT SPORTS TRUST
REPORT OF THE TRUSTEES for the Year Ended 31 March 2023
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. 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 Activities
The principle objective, as set out in the Memorandum and Articles of Association, is to provide or to assist in providing facilities for recreation, physical education or other leisure time occupation in or in connection with the town of Harlow and its neighbourhood. Such facilities to be available to the public at large, save that special facilities may be provided for persons whom by reason of their youth, age, infirmity or disability, poverty, or social or economic circumstances may have need of special facilities.
The Trust has remained true to its original objectives which have not changed throughout the sixty four years of its existence. In order to stay ahead of changing trends in sports and leisure the Trust has to invest in state of the art equipment and facilities which can be costly. It is therefore important to strike a balance between its social role to keep charges relatively affordable, and at the same time fulfilling its responsibilities of providing the highest level of customer service to its customers.
FINANCIAL REVIEW
Reserves policy
Restricted funds are those set aside due to specific restrictions placed upon the usage of the funds by the donors. restricted voluntary income received is immediately placed in a deposit bank account as required by its underlying funding agreement terms and conditions. Transfers are made from unrestricted funds to restricted reserves in addition to the above so as to make full provision for Lifecycle costs as recommended in the 30 year projection.
The Finance Committee holds regular quarterly meetings and examines income and expenditure each month to ensure that spending is according to budgets set. The short and long term goal of the Trust is to generate enough surplus such that six months of working capital, (i.e. unrestricted funds, excluding revaluation reserves, not committed or otherwise invested) is available at any point in time.
The Trust as a charitable organisation is entitled to mandatory rate relief of 80%. Harlow District Council (HDC) can also show discretion on the remaining 20% of the rates but HDC had been unable to provide this additional discretionary relief. Due to the extension of the Retail, Hospitality and Leisure Business Rates Relief scheme HDC did not charge the full amount for rates, and this year the rates had a 50% reduction.
The Trust agreed a financial strategy to reduce the operational costs each year, in order to be grant free by the year 2018, and this was achieved. The strategy is to continue to build reserves through planned operating surpluses in order to appropriately service the Lifecycle Fund and build a contingency for risks and new capital projects. Ever since the move to Leisurezone, the Trust has been operating under tough economic conditions. Reduced operational costs are based on improving the level of income achieved and efficiency savings. The Trust financial strategy has proven to be very successful and the building up of reserves has helped to sustain the organisation.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
Incorporated on 10 March 1959, under Companies Act 1948, the Trust is a company which is limited by the guarantees of its members to a maximum of £1 each. The Trust is governed by the terms of its Memorandum and Articles of Association. The company registration number is 622773. The company is also a registered charity, number 301328.
Governance
The Trust is strategically governed by 12 people, on the board of trustees to whom the three committees, namely the Finance Committee, Remuneration Committee and the Human Resources Committee are accountable. Trustees who served the charity during the year are listed in the report of trustees.
The chairperson of the board retires annually and a new one is elected every year. The current Chairman, Pat Hay has been in office since September 2007 and has been re-elected each year. The appointed Vice Chairman to the Board, Robin Alton, has also been in office for many years and has continued to take a leading role on various issues.
Trustee Recruitment, Induction and Training
The Trust has been fortunate enough to benefit from a relatively stable board of trustees during the last 17 years.
Page 1
HARLOW AND DISTRICT SPORTS TRUST
REPORT OF THE TRUSTEES for the Year Ended 31 March 2023
STRUCTURE, GOVERNANCE AND MANAGEMENT
Management
Tonia Gosling the Chief Executive Officer (CEO) is assisted in her duties by the Finance Manager Mujtaba Shafi and the Human Resources Manager Jacqui Cornaby, Facilities Manager, Jamie Hasler, Operations Manager Tim Gunning and Marketing Manager Nichola McKie. The team guides the growth of the Trust with the help of approximately two hundred and sixty employees (47.3 FTE's). Operationally the Trust is based at the £25m state of the art, wet and dry leisure centre, known as Leisurezone, which was completed in 2010.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
00622773 (England and Wales)
Registered Charity number 301328
Registered office
Harlow Leisurezone Second Avenue Harlow Essex CM20 3DT
Trustees
P Hay R Alton D Fenny C Cochrane T Crisp R Little J Wright G H Horecka L J Lomas J W Abbott L F Clark V A Livermore
Auditors Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH
Main Bankers
Lloyds Bank plc 29 Broad Walk The Harvey Centre Harlow CM20 1JF
Chief Executive
T Gosling
Solicitors
Whiskers LLP 6 Mitre Buildings Kitson Way Harlow Essex CM20 1DR
Page 2
HARLOW AND DISTRICT SPORTS TRUST
REPORT OF THE TRUSTEES for the Year Ended 31 March 2023
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees 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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"
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
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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.
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In so far as the trustees are aware:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
AUDITORS
The 2022 AGM agreed to extend the term of the current auditors, Brindley Millen Ltd.
Approved by order of the board of trustees on ............................................. and signed on its behalf by:
................................................................................. P Hay - Trustee
Page 3
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HARLOW AND DISTRICT SPORTS TRUST
Opinion
We have audited the financial statements of Harlow and District Sports Trust (the 'charitable company') for the year ended 31 March 2023 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Page 4
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HARLOW AND DISTRICT SPORTS TRUST
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:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
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:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant are those covered by the Statement of Recommended Practice for Charities (SORP 2019) and the Charities Act 2011. We assessed the risk of material misstatement in respect of fraud by making enquiries of management and trustees and by testing the implementation of accounting controls in place.
Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above by making enquiries with key personnel and reviewing relevant documentation such as minutes of Trustee meetings and correspondence with regulatory bodies. We considered the risk of fraud through management override by incorporation testing of journal entries and reviewing any requirements to meet performance targets. We also considered, and tested for, the possibility of unauthorised payments to related parties.
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 5
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HARLOW AND DISTRICT SPORTS TRUST
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Maurice Brindley FCA BSc (Senior Statutory Auditor) for and on behalf of Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH Date: .............................................
Page 6
HARLOW AND DISTRICT SPORTS TRUST
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 31 March 2023
| Unrestricted funds Notes £ INCOME AND ENDOWMENTS FROM External Contributions 2 - Charitable activities 4 Leisure Activities 5,059,522 Investment income 3 19,013 Total 5,078,535 EXPENDITURE ON Charitable activities 5 Leisure Activities 4,242,567 NET INCOME/(EXPENDITURE) 835,968 Transfers between funds 15 (496,964) Other recognised gains/(losses) Actuarial gains on defined benefit schemes 1,879,000 Net movement in funds 2,218,004 RECONCILIATION OF FUNDS Total funds brought forward 5,834,169 TOTAL FUNDS CARRIED FORWARD 8,052,173 |
Designated (Lifecycle) Funds £ - - 69,148 69,148 170,533 (101,385) 496,964 - 395,579 4,978,747 5,374,326 |
Restricted funds £ 8,898 - - 8,898 - 8,898 - - 8,898 70,217 79,115 |
31.3.23 Total funds £ 8,898 5,059,522 88,161 5,156,581 4,413,100 743,481 - 1,879,000 2,622,481 10,883,133 13,505,614 |
31.3.22 Total funds £ 5,788 4,628,051 16,516 |
|---|---|---|---|---|
| 4,650,355 4,073,294 |
||||
| 577,061 - |
||||
| 688,000 | ||||
| 1,265,061 9,618,072 |
||||
| 10,883,133 |
The notes form part of these financial statements
Page 7
HARLOW AND DISTRICT SPORTS TRUST (REGISTERED NUMBER: 00622773)
BALANCE SHEET
31 March 2023
| Unrestricted funds Notes £ FIXED ASSETS Tangible assets 11 4,345,592 CURRENT ASSETS Stocks 12 1,084 Debtors 13 105,367 Cash at bank and in hand 2,741,937 2,848,388 CREDITORS Amounts falling due within one year 14 (1,186,807) NET CURRENT ASSETS 1,661,581 TOTAL ASSETS LESS CURRENT LIABILITIES 6,007,173 PENSION ASSET 16 2,045,000 NET ASSETS 8,052,173 FUNDS 15 Unrestricted funds Restricted funds TOTAL FUNDS |
Designated (Lifecycle) Funds £ - - - 5,380,215 5,380,215 (5,889) 5,374,326 5,374,326 - 5,374,326 |
Restricted funds £ - - - 79,115 79,115 - 79,115 79,115 - 79,115 |
31.3.23 Total funds £ 4,345,592 1,084 105,367 8,201,267 8,307,718 (1,192,696) 7,115,022 11,460,614 2,045,000 13,505,614 13,426,499 79,115 13,505,614 |
31.3.22 Total funds £ 4,345,592 1,084 80,489 7,555,679 7,637,252 (1,265,711) 6,371,541 10,717,133 166,000 10,883,133 10,812,916 70,217 10,883,133 |
|---|---|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
............................................. P Hay - Trustee
The notes form part of these financial statements
Page 8
HARLOW AND DISTRICT SPORTS TRUST
CASH FLOW STATEMENT for the Year Ended 31 March 2023
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Cash flows from investing activities Interest received Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
31.3.23 £ 557,427 557,427 88,161 88,161 645,588 7,555,679 8,201,267 |
31.3.22 £ 1,059,495 |
|---|---|---|
| 1,059,495 | ||
| 16,516 | ||
| 16,516 | ||
| 1,076,011 6,479,668 |
||
| 7,555,679 |
The notes form part of these financial statements
Page 9
HARLOW AND DISTRICT SPORTS TRUST
NOTES TO THE CASH FLOW STATEMENT for the Year Ended 31 March 2023
1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Interest received Increase in stocks (Increase)/decrease in debtors (Decrease)/increase in creditors Net cash provided by operations |
31.3.23 £ 743,481 (88,161) - (24,878) (73,015) 557,427 |
31.3.22 £ 577,061 (16,516) (30) 79,435 419,545 1,059,495 |
|---|---|---|
2. ANALYSIS OF CHANGES IN NET FUNDS
| Net cash Cash at bank and in hand Total |
At 1.4.22 £ 7,555,679 7,555,679 7,555,679 |
Cash flow £ 645,588 645,588 645,588 |
At 31.3.23 £ 8,201,267 8,201,267 8,201,267 |
|---|---|---|---|
The notes form part of these financial statements
Page 10
HARLOW AND DISTRICT SPORTS TRUST
NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 March 2023
1. ACCOUNTING POLICIES
Basis of preparing the financial statements and assessment of going concern
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
The financial statements are presented in sterling (£).
Critical accounting judgements and key sources of estimation uncertainty
In preparing financial statements it is necessary to make certain judgements, estimated and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements.
Useful economic life of tangible fixed assets:
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
The fixed assets are recorded at cost except that the leasehold property is shown at market value. Tangible fixed assets are capitalised if they cost in excess £15,000 plus irrecoverable VAT.
Harlow and District Sports Trust have been granted a long leasehold interest of 125 years in the Leisurezone by Harlow District Council which expires in September 2135.
Depreciation is not charged against the property, as the trustees consider that the depreciated replacement cost to be equal with the valuation.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all directly attributable costs, less trade discounts, rebates and subsidies.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Debtors
Trade and other debtors are recognised at the settlement amount. Prepayments are valued as the amount prepaid.
Cash at bank and in hand
Cash at bank and in hand includes cash and a number of bank accounts. The charity has split its cash holdings across a number of financial institutions in order to manage risk.
continued...
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HARLOW AND DISTRICT SPORTS TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2023
1. ACCOUNTING POLICIES - continued
Creditors
Creditors are recognised where the charity has a present obligation resulting from a past event that will result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement amount.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Designated Funds represent funds set aside by the trustees on a regular basis to meet certain specific objectives.
Restricted funds can only be used for particular restricted purposes due to restrictions placed upon the usage of the funds by donors.
Pension costs and other post-retirement benefits
The Trust operates two types of pension schemes. One is a defined benefits scheme and the other is a defined contribution scheme.
The defined benefit pension scheme includes only a few of the existing employees, and is based on final pensionable pay. The assets of the scheme are held separately from those of the Trust. The contributions are determined by a qualified actuary and are charged to the Statement of Financial Activities so as to spread the cost of pensions over employees' working lives with the Trust.
Pension scheme liabilities are measured on an actuarial basis using the projected unit method of valuation. The pension scheme deficit is recognised in full on the balance sheet. There are no deferred tax implications.
The defined contribution pension scheme is operated for new employees, employer contributions are charged to the Statement of Financial Activities in the year that they are incurred.
Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially settled at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2. EXTERNAL CONTRIBUTIONS
| 2. | EXTERNAL CONTRIBUTIONS | ||
|---|---|---|---|
| 31.3.23 | 31.3.22 | ||
| £ | £ | ||
| Stadium lifecycle contribution | 8,898 | 5,788 | |
| 3. | INVESTMENT INCOME | ||
| 31.3.23 | 31.3.22 | ||
| £ | £ | ||
| Deposit account interest | 88,161 | 16,516 |
continued...
Page 12
HARLOW AND DISTRICT SPORTS TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 March 2023
4. INCOME FROM CHARITABLE ACTIVITIES
| Activity Income from Activities Leisure Activities General Income Leisure Activities Grants Leisure Activities Rental income from tenants Leisure Activities Studio, Service charge & misc Leisure Activities Grants received, included in the above, are as follows: Furlough grant received 5. CHARITABLE ACTIVITIES COSTS Leisure Activities 6. SUPPORT COSTS Leisure Activities 7. NET INCOME/(EXPENDITURE) Net income/(expenditure) is stated after charging/(crediting): Auditors' remuneration |
Direct Costs £ 1,419,005 Management £ 2,965,555 |
31.3.23 £ 4,499,369 108,443 - 422,903 28,807 5,059,522 31.3.23 £ - Support costs (see note 6) £ 2,994,095 Governance costs £ 28,540 31.3.23 £ 9,193 |
31.3.22 £ 3,964,233 100,413 38,180 455,527 69,698 |
|---|---|---|---|
| 4,628,051 | |||
| 31.3.22 £ 38,180 Totals £ 4,413,100 |
|||
| Totals £ 2,994,095 |
|||
| 31.3.22 £ 9,231 |
8. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.
The key management of personnel of the charity, comprise the trustees, CEO, Finance Manager and Personnel Manager. The total employee benefits of the key management of the charity were £221,670 (2022 £217,336)
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.
continued...
Page 13
HARLOW AND DISTRICT SPORTS TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 March 2023
9. STAFF COSTS
| Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was as follows: Management and administration Maintenance and grounds Customer service and other staff |
31.3.23 £ 1,586,277 83,790 112,455 1,782,522 31.3.23 11 2 35 48 |
31.3.22 £ 1,460,941 76,063 108,303 |
|---|---|---|
| 1,645,307 | ||
| 31.3.22 10 2 34 46 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| £90,001 - £100,000 10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Designated Unrestricted (Lifecycle) funds Funds £ £ INCOME AND ENDOWMENTS FROM External Contributions - - Charitable activities Leisure Activities 4,628,051 - Investment income 713 15,803 Total 4,628,764 15,803 EXPENDITURE ON Charitable activities Leisure Activities 4,019,459 53,835 NET INCOME/(EXPENDITURE) 609,305 (38,032) Transfers between funds (295,000) 295,000 Other recognised gains/(losses) Actuarial gains on defined benefit schemes 688,000 - Net movement in funds 1,002,305 256,968 RECONCILIATION OF FUNDS Total funds brought forward 4,831,864 4,721,779 |
31.3.23 1 Restricted funds £ 5,788 - - 5,788 - 5,788 - - 5,788 64,429 |
31.3.22 1 Total funds £ 5,788 4,628,051 16,516 |
31.3.22 1 Total funds £ 5,788 4,628,051 16,516 |
|---|---|---|---|
| 4,650,355 4,073,294 |
|||
| 577,061 - |
|||
| 688,000 | |||
| 1,265,061 9,618,072 |
continued...
Page 14
HARLOW AND DISTRICT SPORTS TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2023
10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
| TOTAL FUNDS CARRIED FORWARD 11. TANGIBLE FIXED ASSETS COST At 1 April 2022 and 31 March 2023 NET BOOK VALUE At 31 March 2023 At 31 March 2022 |
Unrestricted funds £ 5,834,169 |
Designated (Lifecycle) Funds £ 4,978,747 |
Restricted funds £ 70,217 |
Total funds £ |
|
|---|---|---|---|---|---|
| 10,883,133 | |||||
| Long leasehold £ 4,345,592 4,345,592 4,345,592 |
The leasehold property, Leisurezone, was valued by Strutt & Parker LLP, Chartered Surveyors. The valuation of £2,500,000 as at 31 March 2011 was for its then "existing use and present condition" as a fully-equipped operational entity, having regard to trading potential. The trustees have reviewed their valuation policy inclusive of auditor recommendations and on 26 October 2020 concluded that a policy of no further updating of the valuation would be necessary.
Subsequently the charity has capitalised additional items as shown below.
| Initial valuation Car park Trampoline park Total cost |
£ 2,500,000 1,045,920 799,672 |
|---|---|
| 4,345,592 |
These assets will be maintained in the same way as the property, therefore the trustees do not consider that depreciation should be charged.
12. STOCKS
| STOCKS | ||
|---|---|---|
| 31.3.23 | 31.3.22 | |
| £ | £ | |
| Miscellaneous | 1,084 | 1,084 |
continued...
Page 15
HARLOW AND DISTRICT SPORTS TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2023
13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade debtors Other debtors VAT CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Social security and other taxes VAT Other creditors Accruals and deferred income |
|
|---|---|
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
15. MOVEMENT IN FUNDS
| Unrestricted funds General fund Defined benefit pension scheme Designated (Lifecycle) Fund - Maintenance Designated (Lifecycle) Fund - Equipment Restricted funds Harlow Town Football Club TOTAL FUNDS |
At 1.4.22 £ 5,668,169 166,000 3,479,852 1,498,895 10,812,916 70,217 10,883,133 |
Net movement in funds £ 835,968 1,879,000 (125,593) 24,208 2,613,583 8,898 2,622,481 |
Transfers between funds £ (496,964) - 396,960 100,004 - - - |
At 31.3.23 £ 6,007,173 2,045,000 3,751,219 1,623,107 13,426,499 79,115 13,505,614 |
|---|---|---|---|---|
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Defined benefit pension scheme Designated (Lifecycle) Fund - Maintenance Designated (Lifecycle) Fund - Equipment Restricted funds Harlow Town Football Club TOTAL FUNDS |
Incoming resources £ 5,078,535 - 44,940 24,208 5,147,683 8,898 5,156,581 |
Resources expended £ (4,242,567) - (170,533) - (4,413,100) - (4,413,100) |
Gains and Movement losses in funds £ £ - 835,968 1,879,000 1,879,000 - (125,593) - 24,208 1,879,000 2,613,583 - 8,898 1,879,000 2,622,481 |
|---|---|---|---|
continued...
Page 16
HARLOW AND DISTRICT SPORTS TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2023
15. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund Defined benefit pension scheme Designated (Lifecycle) Fund - Maintenance Designated (Lifecycle) Fund - Equipment Restricted funds Harlow Town Football Club TOTAL FUNDS |
At 1.4.21 £ 5,353,864 (522,000) 3,526,171 1,195,608 9,553,643 64,429 9,618,072 |
Net movement in funds £ 609,305 688,000 (46,319) 8,287 1,259,273 5,788 1,265,061 |
Transfers between funds £ (295,000) - - 295,000 - - - |
At 31.3.22 £ 5,668,169 166,000 3,479,852 1,498,895 10,812,916 70,217 10,883,133 |
|---|---|---|---|---|
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Defined benefit pension scheme Designated (Lifecycle) Fund - Maintenance Designated (Lifecycle) Fund - Equipment Restricted funds Harlow Town Football Club TOTAL FUNDS |
Incoming resources £ 4,628,764 - 7,516 8,287 4,644,567 5,788 4,650,355 |
Resources expended £ (4,019,459) - (53,835) - (4,073,294) - (4,073,294) |
Gains and Movement losses in funds £ £ - 609,305 688,000 688,000 - (46,319) - 8,287 688,000 1,259,273 - 5,788 688,000 1,265,061 |
|---|---|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund Defined benefit pension scheme Designated (Lifecycle) Fund - Maintenance Designated (Lifecycle) Fund - Equipment Restricted funds Harlow Town Football Club TOTAL FUNDS |
At 1.4.21 £ 5,353,864 (522,000) 3,526,171 1,195,608 9,553,643 64,429 9,618,072 |
Net movement in funds £ 1,445,273 2,567,000 (171,912) 32,495 3,872,856 14,686 3,887,542 |
Transfers between funds £ (791,964) - 396,960 395,004 - - - |
At 31.3.23 £ 6,007,173 2,045,000 3,751,219 1,623,107 13,426,499 79,115 13,505,614 |
|---|---|---|---|---|
continued...
Page 17
HARLOW AND DISTRICT SPORTS TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2023
15. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Defined benefit pension scheme Designated (Lifecycle) Fund - Maintenance Designated (Lifecycle) Fund - Equipment Restricted funds Harlow Town Football Club TOTAL FUNDS |
Incoming resources £ 9,707,299 - 52,455 32,495 9,792,249 14,686 9,806,935 |
Resources expended £ (8,262,026) - (224,367) - (8,486,393) - (8,486,393) |
Gains and Movement losses in funds £ £ - 1,445,273 2,567,000 2,567,000 - (171,912) - 32,495 2,567,000 3,872,856 - 14,686 2,567,000 3,887,542 |
|---|---|---|---|
The Lifecycle Maintenance fund is for the maintenance of the organisations fixed assets
The Lifecycle Equipment fund is for the purchase of new equipment for the organisation
The Stadium Lifecycle fund is for the renewal of the 3G pitch at Harlow Town Football Club
16. EMPLOYEE BENEFIT OBLIGATIONS
The Harlow and District Sports Trust participates in the Local Government Pension Scheme (LGPS) and this is a defined benefit statutory scheme administered in accordance with the Local Government Pension Scheme Regulations 2013, and is contracted out of the State Second Pension and currently provides benefits based on career average revalued earnings.
The results include and allowance to reflect the Court of Appeal judgement in respect of the McCloud and Sargent cases which relate to age discrimination within the Judicial and Fire Pension schemes, respectively. These results, including the allowance, have been rolled forward and remeasured to obtain the accounting results as at 31 March 2023.
The scheme is now closed and is no longer available to new members. The estimated surplus as at 31 March 2023 was £2,045k.
Contributions are set every three years as a result of the actuarial valuation of the Fund required by the Regulations. The next actuarial valuation of the Fund will be carried out as at 31st March 2025 and will set contributions for the period from 1st April 2026 to 31st March 2029. There are no minimum funding requirements in the LGPS but the contributions are generally set to target a funding level of 100% using the actuarial valuation assumptions.
Pension contributions charged during the year amounted to £58,533 (2021/22 £57,232).
To assess the value of the scheme liability at 31 March 2023, Barnett Waddingham have rolled forward the value of the Employer's liabilities calculated for the funding valuation as at 31 March 2022, using financial assumptions that comply with FRS 102. The full actuarial valuation involved projecting future cashflows to be paid from the Fund and placing a value on them.
Barnett Waddingham are satisfied that the approach of rolling forward the previous valuation date to 31 March 2023 should not introduce any material distortions in the results provided that the actual experience of the Employer and the Fund has been broadly in line with the underlying assumptions, and that the structure of the liabilities is substantially the same as at the latest formal valuation. From the information Barnett Waddingam have received they consider there appears to be no evidence that this approach is inappropriate. As required under the FRS102 accounting standard, the projected unit credit method of valuation has been used.
The minimum employer contributions due for Harlow and District Sports Trust over the inter-valuation period is 26.1% of pensionable pay, plus a sum of £36,958 was paid by Harlow and District Sports Trust in 2022/23 towards the deficiency in the fund. The value of the scheme's assets at 31 March 2023, as per Barnett Waddingham, was sufficient to cover 144.4% (2022: 102.6%) of the benefits that had accrued to its members.
continued...
Page 18
HARLOW AND DISTRICT SPORTS TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2023
16. EMPLOYEE BENEFIT OBLIGATIONS - continued
Any payments to meet unfunded benefits which are recharged to the Trust, or financial strain payments made by Harlow and District Sports Trust are in addition to the above. Barnett Waddingham estimate the duration of the Employer's past service liability to be 13 years.
The estimated asset allocation of Harlow and District Sports Trust as at 31st March 2023 is as follows:
| 31.03.23 | 31.03.23 | 31.03.22 | 31.03.22 | |
|---|---|---|---|---|
| £000's | % | £000's | % | |
| Employer Asset Share - Bid Value | ||||
| Equities | 3,833 | 58% | 3,961 | 60% |
| Gilts | 97 | 1% | 157 | 2% |
| Other Bonds | - | -% | 289 | 4% |
| Property | 545 | 8% | 541 | 8% |
| Cash / temporary investments | 215 | 3% | 167 | 2% |
| Alternative assets | 1,053 | 16% | 815 | 12% |
| Other managed funds | 911 | 14% | 666 | 10% |
| Total | 6,564 | 100% | 6,596 | 100% |
Based on the above, the Employer's share of the assets of the Fund is approximately 0.07%
Asset and liability reconciliation:
| 2023 | 2022 | |
|---|---|---|
| £000's | £000's | |
| Reconciliation of defined benefit obligation | ||
| Liabilities at start of period | 6,430 | 6,586 |
| Current service cost | 98 | 105 |
| Interest cost | 165 | 127 |
| Change in financial assumptions | (2,125) | (240) |
| Change in demographic assumptions | (137) | - |
| Experience loss/(gain) on defined benefit obligation | 313 | 9 |
| Estimated benefits paid net of transfers in | (154) | (175) |
| Past service cost, including curtailments | - | - |
| Contributions by Scheme participants and other employers | 19 | 18 |
| Liabilities at end of period | 4,609 | 6,430 |
| 2023 | 2022 | |
| £000's | £000's | |
| Reconciliation of fair value scheme | ||
| Opening fair value of Fund assets | 6,596 | 6,064 |
| Interest in assets | 171 | 118 |
| Return on assets less interest | (147) | 485 |
| Other actuarial gains/(losses) | 79 | - |
| Administration expenses | (4) | (3) |
| Contributions by employer including unfunded | 94 | 89 |
| Contributions by Scheme participants and other employers | 19 | 18 |
| Estimated benefits paid plus unfunded net of transfers in | (154) | (175) |
| Closing Fair value of Fund assets | 6,654 | 6,596 |
The actuarial valuation carried out by Barnett Waddingham, used the following major assumptions:
| 2023 | 2022 | |
|---|---|---|
| %p.a. | %.p.a. | |
| Financial Assumptions | ||
| Salary Increases | 3.85% | 4.35% |
| Pension Increases | 2.85% | 3.35% |
| Discount Rate | 4.80% | 2.60% |
continued...
Page 19
HARLOW AND DISTRICT SPORTS TRUST
NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2023
16. EMPLOYEE BENEFIT OBLIGATIONS - continued
Life Assumptions - Life expectancy from age 65 Retiring today Retiring in 20 years
| 2023 | 2022 | ||
|---|---|---|---|
| Males | 21.1 | 21.6 | |
| Females | 23.5 | 23.7 | |
| Males | 22.3 | 23.0 | |
| Females | 25.0 | 25.1 |
Salaries are assumed at increase at 3.85% p.a. in addition to a promotional scale. This is consistent with the approach at the previous accounting date.
17. RELATED PARTY DISCLOSURES
During the year the trust spent £4,140 (2022: £9,060) with Derrick Wade Waters Limited, Chartered Surveyors in relation to property and site management. These sums represented good value for the trust and were on an arm's length basis. Mr R Little, a Harlow and District Sports Trust trustee, is also a director and shareholder of Derrick Wade Waters Holdings Limited, the parent company of Derrick Wade Waters Limited. He took no part in the decision making process and excluded himself from any discussions by the trustees in relation to the contract.
By its nature the Trust contracts with many local organisations and businesses. In some instances board trustees may also be involved with other organisations. Great care is taken to ensure that Conflicts of Interest are managed and avoided. A Register of Interests is maintained and updated regularly.
This page does not form part of the statutory financial statements
Page 20
HARLOW AND DISTRICT SPORTS TRUST
DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 March 2023
| INCOME AND ENDOWMENTS External Contributions Stadium lifecycle contribution Investment income Deposit account interest Charitable activities Income from Activities General Income Grants Rental income from tenants Studio, Service charge & misc Total incoming resources EXPENDITURE Charitable activities Wages Rent & rates Light and heat Other direct costs Support costs Management Wages Social security Pensions Insurance & security charges Light and heat Telephone Postage, stationery & advertising Sundries Grounds maintenance Buildings maintenance Cleaning Equipment repair & maintenance Collection charges Legal & professional Governance costs Senior management time Auditors' remuneration Carried forward |
31.3.23 £ 8,898 88,161 4,499,369 108,443 - 422,903 28,807 5,059,522 5,156,581 672,250 154,309 453,059 139,387 1,419,005 895,790 83,790 112,455 123,819 97,704 9,036 101,053 12,159 11,280 858,672 59,582 459,791 84,080 56,344 2,965,555 18,237 9,193 27,430 |
31.3.22 £ 5,788 16,516 3,964,233 100,413 38,180 455,527 69,698 |
|---|---|---|
| 4,628,051 | ||
| 4,650,355 618,261 128,758 270,906 109,646 |
||
| 1,127,571 824,930 76,063 108,303 102,474 83,219 11,822 185,434 6,595 7,770 1,003,689 85,557 298,106 65,210 58,513 |
||
| 2,917,685 17,750 9,231 26,981 |
This page does not form part of the statutory financial statements
Page 21
HARLOW AND DISTRICT SPORTS TRUST
| DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 March 2023 Governance costs Brought forward Trustee Indemnity Insurance Total resources expended Net income |
31.3.23 £ 27,430 1,110 28,540 4,413,100 743,481 |
31.3.22 £ 26,981 1,057 |
|---|---|---|
| 28,038 | ||
| 4,073,294 | ||
| 577,061 |
This page does not form part of the statutory financial statements
Page 22
HARLOW AND DISTRICT SPORTS TRUST
APPENDIX - STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 March 2023
| External Operations £ INCOME AND ENDOWMENTS FROM External Contributions - Charitable activities 3,752 Other incoming resources Rent receivable 100,000 Investment income 17,391 Total 121,143 RESOURCES EXPENDED Charitable activities 60,000 Total resources expended 60,000 Net incoming/(outgoing) resources of the year being net movement in funds 61,143 Transfers to lifecycle fund reserves - Surplus/(Deficit) 61,143 Reconciliation of management account surplus to net income: Surplus/(Deficit) (as above) Contributions to designated and restricted funds Investment income in designated funds Repair costs from lifecycle funds Transfers to lifecycle funds Movement on pension fund liability Net income/(expenditure) |
Leisurezone £ - 4,632,867 322,903 1,622 4,957,392 4,182,567 4,182,567 774,825 (496,964) 277,861 |
31.3.23 Total funds £ - 4,636,619 422,903 19,013 5,078,535 4,242,567 4,242,567 835,968 (496,964) 339,004 339,004 8,898 69,148 (170,533) 496,964 1,879,000 2,622,481 |
31.3.22 Total Funds £ - 4,172,524 455,527 713 4,628,764 4,019,459 4,019,459 609,305 (295,000) 314,305 314,305 5,788 15,803 (53,835) 295,000 688,000 1,265,061 |
|---|---|---|---|
This page does not form part of the statutory financial statements
Page 23