**Charity Registration No. 301569** ## **LYDNEY RECREATION TRUST** ## **ANNUAL REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 MARCH 2022** ## **LYDNEY RECREATION TRUST** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1| |Independent examiner's report|2| |Statement of financial activities|3| |Balance sheet|4| |Statement of cash flows|8| |Notes to the financial statements|5 - 12| ## **LYDNEY RECREATION TRUST** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **Trustees** Lydney Town Council **Charity number** 301569 **Address** Claremont House High Street Lydney Gloucestershire GL15 5DX **Independent examiner** Ian Price 20 Newerne Street Lydney Gloucestershire GL15 5RA ## **LYDNEY RECREATION TRUST** ## **TRUSTEES' REPORT** ## _**FOR THE YEAR ENDED 31 MARCH 2022**_ The trustees present their annual report and financial statements for the year ended 31 March 2022. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Charities Act 2011 and the Statement of Recommended Practice, "Accounting and Reporting by Charities" (applicable to charities preparing their accounts in accordance with the FRS102 ). ## **Objectives and activities** The objectives of the charity as set out in its governing document are the provision and maintenance of playing fields, and other recreational premises providing public benefit through healthful and enjoyable recreational activities. The trustees’ have complied with their duty to have regard to the guidance on Public Benefit published by the Charity Commission in exercising their powers and duties. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. ## **Achievements and performance** The charity has continued its work in maintaining Lydney Recreation Ground in furtherance of Public Benefit. A drainage scheme has been put in place across all the sporting pitches. ## **Financial review** The trustees believe that the charity has adequate reserves to finance its activities for the immediate future. It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level sufficient to ensure that, in the event of a significant drop in funding, the charity’s current activities can be continued while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. No funds are in deficit. The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. The plans for future periods are to continue the charity's existing work. ## **Structure, governance and management** The charity was established by a charitable trust deed on 3 April 1946 and an order dated 6 June 1968. The trustees, who served during the year were: Lydney Town Council No other trustees will be recruited or appointed. The trustees' r eport was a uthorised by the Trust Secretary and signed on behalf of the Trust. Trust Secretary Dated: 27 July 2022 - 1 - ## **LYDNEY RECREATION TRUST** ## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LYDNEY RECREATION TRUST** I report to the trustees on my examination of the financial statements of Lydney Recreation Trust (the charity) for the year ended 31 March 2022. ## **Responsibilities and basis of report** As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act). I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. ## **Ian Price** 20 Newerne Street Lydney Gloucestershire GL15 5RA Dated: 27 July 2022 - 2 - ## **LYDNEY RECREATION TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |||**Unrestricted Unrestricted**|**Unrestricted Unrestricted**| |---|---|---|---| |||**funds**|**funds**| |||**2022**|**2021**| ||**Notes**|
**£**|**£**| |**Income and endowments from:**|||| |Donations and legacies|**3**|20,515|30,515| |Charitable activities|**5**|25,742|19,801| |Investments|**4**|19|736| |Other income|**6**|-|184| |**Total income**||46,276|51,236| |**Expenditure on:**|||| |Charitable activities|**7**|59,912|56,788| |Net gains/(losses) on investments|**10**|-|13,340| |**Net movement in funds**||(13,636)|7,788| |Fund balances at 1 April 2021||353,814|346,026| |**Fund balances at 31 March 2022**||340,178|353,814| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure is unrestricted, and derives from continuing activities. - 3 - ## **LYDNEY RECREATION TRUST** ## **BALANCE SHEET** ## _**AS AT 31 MARCH 2022**_ |**Notes**
**Fixed assets**
Tangible assets
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**13**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds
Designated funds
General unrestricted funds|**2022**
**£**
10,516
209,891
220,407
(830)
67,488
272,690|**£**
120,601
219,577
340,178
340,178
340,178|**2021**
**£**
7,133
210,032
217,165
(3,109)
37,699
316,115|**£**
139,758
214,056
353,814
353,814
353,814| |---|---|---|---|---| The financial statements were approved by the Trustees on 27 July 2022 Lydney Town Council **Trustee** - 4 - ## **LYDNEY RECREATION TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** ## **Charity information** Lydney Recreation Trust is a charitable trust. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102. The accounts are prepared in sterling , which is the functional currency of the charity . The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. Resources expended are recognised in the period in which they are incurred. - 5 - ## **LYDNEY RECREATION TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** **(Continued)** ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Land and buildings 10% straight line basis Fixtures, fittings & equipment 20% straight line basis The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities . ## **1.7 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) . ## **1.8 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.9 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 in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when 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 debtors 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. Financial assets classified as receivable within one year are not amortised. - 6 - ## **LYDNEY RECREATION TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **1 Accounting policies** ## **(Continued)** ## _**Basic financial liabilities**_ Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled. ## **1.10 Employee benefits** The cost of employee benefits, including any unused holiday entitlement , is recognised in the period in which the employee’s services are received. ## **1.11 Restricted Funds** Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets this criteria is charged to the fund. ## **1.12 Unrestricted Funds** Unrestricted funds are incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds. - 7 - ## **LYDNEY RECREATION TRUST** ## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2022**_ |**Notes**
**Cash flows from operating activities**
Cash generated from operations
**16**
**Investing activities**
Purchase of tangible fixed assets
Proceeds on disposal of investments
Investment income received
**Net cash (used in)/generated from**
**investing activities**
**Net cash used in financing activities**
**Net (decrease)/increase in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**£**
(224)
-
19|**£**
64
(205)
-
(141)
210,032
209,891|**2021**
**£**
(20,610)
58,507
736|**£**
25,732
38,633
-
64,365
145,667
210,032| |---|---|---|---|---| - 8 - ## **LYDNEY RECREATION TRUST** ## **STATEMENT OF CASH FLOWS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **3 Donations and legacies** ||**Unrestricted**|Total| |---|---|---| ||**funds**|| ||**2022**|2021| ||**£**|£| |Lydney Town Council & other grants|20,515|30,515| |**Investments**||| ||**Unrestricted**|Unrestricted| ||**funds**|funds| ||**2022**|2021| ||**£**|£| |Income from listed investments|-|712| |Interest receivable|19|24| ||19|736| |**Charitable activities**||| ||**2022**|2021| ||**£**|£| |Charitable rental income|25,742|19,801| ## **4 Investments** ## **5 Charitable activities** - 9 - ## **LYDNEY RECREATION TRUST** ## **STATEMENT OF CASH FLOWS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **6 Other income** |Other income
**Charitable activities**
Depreciation and impairment
Office costs
Insurance
Water, electricity, rates
Grass cutting, grounds, general maintenance
Litter picking, dog waste bins & bags
Skateboard park maintenance
Health and safety (incl tree works)
Independent examiners fees|**Total**Unrestricted
funds
**2022**
2021
**£**
£
-
184
**2022**
**2021**
**£**
**£**
19,381
19,359
432
109
5,788
5,983
2,194
3,631
11,269
13,088
12,025
12,210
7,172
918
821
700
830
790
59,912
56,788| |---|---| ## **7 Charitable activities** ## **8 Trustees** None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. ## **9 Employees** The average monthly number of employees during the year was: ||**2022**|**2021**| |---|---|---| ||**Number**|**Number**| |Total|-|-| There were no employees whose annual remuneration was more than £60,000. - 10 - ## **LYDNEY RECREATION TRUST** ## **STATEMENT OF CASH FLOWS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **10 Net gains/(losses) on investments** |Revaluation of investments
**11**
**Tangible fixed assets**
**Cost**
At 1 April 2021
Additions
At 31 March 2022
**Depreciation and impairment**
At 1 April 2021
Depreciation charged in the year
At 31 March 2022
**Carrying amount**
At 31 March 2022
At 31 March 2021
**12**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**13**
**Creditors: amounts falling due within one year**
Accruals and deferred income|**Total**Unrestricted
funds
**2022**
2021
**£**
£
-
13,340
**Land and**
**buildings**
**Fixtures,**
**fittings &**
**equipment**
**Total**
**£**
**£**
**£**
294,804
4,187
298,991
-
224
224
294,804
4,411
299,215
156,601
2,632
159,233
18,712
669
19,381
175,313
3,301
178,614
119,491
1,110
120,601
138,203
1,555
139,758
**2022**
**2021**
**£**
**£**
1,688
1,011
589
855
8,239
5,267
10,516
7,133
**2022**
**2021**
**£**
**£**
830
3,109| |---|---| - 11 - ## **LYDNEY RECREATION TRUST** ## **STATEMENT OF CASH FLOWS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2022**_ ## **14 Designated Funds** The income funds of the charity include the following designated funds , all held within current assets, which have been set aside out of unrestricted funds by the trustees for specific purposes: b/f 2021 Transfers Inc/exp c/f 2022 £ £ £ £ Drainage 37,699 9,883 - 47,582 Projects - 16,906 - 16,906 Garage Repair - 2,000 - 2,000 Path - 1,000 - 1,000 Total 37,699 29,789 - 67,488 ## **15 Related party transactions** Income for the year ended 31 March 2022 includes £20,515 (2021-£20,515) grant income from Lydney Town Council. |**16**|**Cash generated from operations**|**2022**|**2021**| |---|---|---|---| |||**£**|**£**| ||(Deficit)/surpus for the year|(13,636)|7,788| ||Adjustments for:||| ||Investment income recognised in statement of financial activities|(19)|(736)| ||Fair value gains and losses on investments|-|(13,340)| ||Depreciation and impairment of tangible fixed assets|19,381|19,359| ||Movements in working capital:||| ||(Increase)/decrease in debtors|(3,383)|10,412| ||(Decrease)/increase in creditors|(2,279)|2,249| ||**Cash generated from operations**|64|25,732| ## **17 Analysis of changes in net funds** The charity had no debt during the year. - 12 -