Shottermill Recreation Ground and
Swimming Pool Trust
Report and Financial Statements
Year ended 31 March 2023
The Charity’s Accounts are detailed below and comprise:
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The Trustee’s Annual Report
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Accounting Policies
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Statement of Financial Activity – showing incoming resources and resources expended.
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Balance Sheet – showing assets and liabilities.
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Notes to the Accounts
The Trustee’s Annual Report
The Trustee presents its report together with the Annual Accounts for the financial year ended 31 March 2023.
The annual report and accounts for the year ended 31 March 2023 have been prepared by the Trustee in accordance with 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) and the Charities Act 2011 and UK Generally Accepted Practice.
The Trustees have also complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.
Charity name: Shottermill Recreation Ground and Swimming Pool Trust (working name: Haslemere Leisure Centre)
Charity number: 305060
Principal Office: Waverley Borough Council The Burys Godalming Surrey GU7 1HR
Name of Trustee: Waverley Borough Council (address as above) Contact: Mr R Bates
Bank details: The Trust currently uses the Bank Account of Waverley Borough Council. HSBC Bank plc 12a North Street Guildford GU1 4AF
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Independent Examiner: Azets Audit Services Limited Ashcombe Court Woolsack Way Godalming Surrey GU7 1LQ
Structure, governance and management:
The Governing Documents are the Declaration of Trust dated 5 November 1909 and Conveyance dated 18 July 1946. These documents refer to the former Haslemere Urban District Council as Trustee. Following the Local Government reorganisation in 1974, the Haslemere Urban District Council was merged, together with several other district councils, to form Waverley Borough Council. Waverley Borough Council was the owner of the land on which the original leisure facility was situated subject to the Declaration of Trust of 1909. This Declaration of Trust provided that the land was to be held for recreational purposes for the benefit of the people of Shottermill and its immediate neighbourhood.
Following the need for extensive repairs to the leisure facility on the original site, it was concluded that the only means of funding a new leisure facility was to sell the original site for redevelopment and, with the proceeds of sale, to acquire land and build a new leisure facility. The sale was effected under the provisions of the Charities Act 1993 and was completed on 20 December 1996. In accordance with the provisions of the Trust, the money raised was applied to the provision of a new leisure facility (Haslemere Leisure Centre) on the ‘Kings Road Site’ which is within a one-mile radius of the original leisure facility.
During 2014/2015 the leisure centre was refurbished at a cost of some £3.8m. Grant funding of £392k was received by Waverley Borough Council from Sport England towards the costs, the Trust contributed £205k and the remainder was paid for by Waverley Borough Council.
Waverley Borough Council is the sole Trustee of the Trust. Haslemere Leisure Centre was opened during 1998/1999 and the management of the leisure centre is wholly contracted out. The accounts shown below represent the costs of the Council as trustee in its capacity as a client of the management contractors.
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Decision Taking: In the event that a key decision needs to be taken a meeting will be called of Waverley Borough Council in its capacity of Trustee and will comprise the full Council members.
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Risk Exposure: Consideration has been given to the major risks to which the Trust is exposed. The legal rights and obligations of the Council are confined to its position as trustee, however, the Haslemere Leisure Centre is an important part of the Council’s Leisure Strategy and it is reasonable to assume that the Council would step in to cover it’s costs should it fall into financial difficulties.
Trustee Training: Any training requirements identified for the Trustee will be provided as the need arises.
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Aims and Objectives of the Charity for the public benefit:
The objectives of the Trust are the provision of recreation facilities for the area of Shottermill, Haslemere, Surrey, which were successfully achieved during the financial year.
In line with the requirement to report on the charity’s public benefit, the Trustees have considered the Charity Commission’s guidance on public benefit including the guidance on geographical restrictions and access to facilities.
In accordance with the governing document and aims and objectives of the charity, the beneficiaries are the people of Shottermill and the immediate neighbourhood. This is considered reasonable as a geographical and catchment area for a recreational facility.
The Trust complies with the requirements of The Disability Discrimination Act in ensuring that the facility is accessible by all.
Achievements and Performance:
The Trust achieved its objectives by the provision of a leisure centre run on behalf of the Trust by Places for People to the benefit of those set out in the governing document.
Financial Review: Expenditure totalled £111k (excluding Depreciation) against income of £176k. The surplus of £65k was transferred to the Unrestricted Funds Account, which remains in surplus.
Reserves Policy: The Trust will hold reserves at a minimum level of £125k. The reserves of the Trust will be used entirely in the execution of its aims and objectives.
Plans for the future: For the continued provision of recreation facilities for the Shottermill area.
The contract with Places for People has come to an end 1 July 2023. The Council has appointed a new contractor, Everyone Active, for the ongoing management of the Leisure Centre.
Independent The Independent Examination of the Trust’s annual report and accounts Examiner: was carried out by Azets Audit Services Limited. The reappointment of the Independent Examiner will be subject to review.
Richard Bates
Executive Head of Finance and Section 151 Officer of Waverley Borough Council
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Trustee's Responsibilities Statement
The trustee is responsible for preparing the Trustee's Annual Report and the financial statements in accordance with applicable law and regulations.
The Charities Act 2015 requires the trustee to prepare financial statements for each financial year. The trustee has to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The trustee must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the trustee is 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 Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures 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 charity will continue in business.
The trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2015, the Charity (Accounts and Reports) Regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustee confirms that:
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so far as the trustee is aware, there is no relevant audit information of which the charity's auditor is unaware; and
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the trustee has taken all the steps that it ought to have taken as a trustee in order to make itself aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
The trustee is responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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Statement of Main Accounting Policies
1. General Principles
The financial statements summarise the Shottermill Recreation Ground Trust’s transactions for the 2022/2023 financial year and its position at the year-end on 31 March 2023. The accounts have been prepared in accordance with 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) and the Charities Act 2011 and UK Generally Accepted Accounting Practice. The accounting convention adopted is historical cost with the exception of the revaluation of certain categories of tangible fixed assets.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS102) effective from 1 January 2019.
No material uncertainties that may cast significant doubt about the ability of the entity to continue as a going concern have been identified by the trustee, therefore, the entity is expected to continue as a going concern for at least 12 months from the balance sheet date.
2. Funds Structure
The Charity has two funds, which are:
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Unrestricted Funds – these are funds which are available to the trustees to apply for the general purposes of the charity as set out in its governing document. These are ‘general funds’ which are free to be used for any of the charity’s purposes.
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Endowment Funds – these are held on trust to be retained for the benefit of the charity as a capital fund. This fund is formed from the initial gift and any subsequent increases or decreases.
The Endowment Funds of this charity are classed as Permanent Endowment Funds as the trustees must maintain the whole of the fund. The Endowment Funds comprise the land held for recreation purposes as set out in the governing document and the subsequent building of the current leisure centre, which forms the fixed assets of the charity.
The analysis of the Charitable Funds is disclosed in note 8 on page 12.
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3. Incoming Resources
Income is accounted for in the year that the charity is entitled to it, not simply when cash is received. Where income has been recognised, but cash has not been received, a debtor for the relevant amount is recorded in the balance sheet.
Where the amount of an item of income relating to the financial year is not known at the 31 March, estimation techniques are applied to ensure that the accounts reflect the most likely position.
The following income is received:
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Investment income – the Shottermill Recreation Ground Trust uses Waverley Borough Council’s bank account. Interest is calculated on the working balance according to the interest rates obtained on Waverley’s investments. Interest earned for the year is credited at the year-end to the Shottermill Recreation Ground Trust.
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Management Fee – the private operator of the leisure centre retains admissions income and pays the Trust a management fee.
4. Resources Expended
Activity is accounted for in the year that it takes place, not simply when cash payments are made. Where expenditure has been recognised, but the payment not made, a creditor for the relevant amount is recorded in the balance sheet.
Where the amount of an item of expenditure relating to the financial year is not known at the 31 March, estimation techniques are applied to ensure that the accounts reflect the most likely position.
Costs of Generating Funds:
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The costs of administration is the charge from Waverley Borough Council for support services.
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Management Fee – a transfer of funds is made to Waverley Borough Council to the value agreed for the financial year, which is the net of total estimated support costs, fees and incoming resources.
5. VAT
Irrecoverable VAT is charged to the category of resources expended to which it was incurred.
6. Tangible Fixed Assets
Tangible fixed assets have physical substance and are held for use in the provision of services or for administrative purposes on a continuing basis.
Recognition: Expenditure on the acquisition, creation or enhancement of tangible fixed assets is capitalised on an accruals basis provided that it yields benefits for more than one financial year. Expenditure that secures but does not extend the previously assessed standard of performance of assets (e.g. repairs and maintenance) is charged to revenue as it is incurred.
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The de minimis level for the recognition of fixed assets is £1k for vehicles, plant and equipment and £10k for land and buildings.
Measurement: Assets are initially measured at cost, comprising all expenditure that is directly attributable to bringing the asset into working condition for its intended use. Assets are then carried in the balance sheet using the following measurement bases:
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Land and buildings – fair value
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Vehicles, plant and equipment – depreciated replacement cost
Assets included in the balance sheet at current value are revalued where there have been material changes in the value, but as a minimum every five years.
Impairment: following a determination of impairment, a loss in value is included in the Resources Expended section of the Statement of Financial Activities.
Depreciation: depreciation is provided for on all assets with a determinable finite life by allocating the value of the asset in the balance sheet over the periods expected to benefit from their use. It is accounted for in the Resources Expended section of the Statement of Financial Activities.
Depreciation is calculated on the following bases:
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Buildings – straight-line allocation over the life of the property as estimated by the valuer
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Vehicles, plant and equipment – straight-line allocation over the life of the individual asset as advised by a suitably qualified officer
Newly acquired/enhanced assets receive a full depreciation charge in their first year, regardless of the precise timing of the expenditure. Assets disposed of receive no depreciation charge in the year of disposal. Where an asset has major components with different estimated useful lives, these are depreciated separately.
Following a revaluation, a full year of depreciation is charged in the year of revaluation.
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Waverley Borough Council as Trustee of Shottermill Recreation Ground
Statement of Financial Activities
| 2021/2022 | 2022/2023 | |||
|---|---|---|---|---|
| Unrestricted | Endowment | Total | ||
| Funds | Funds | Funds | ||
| £'000 | £'000 | £'000 | £'000 | |
| Incoming Resources | ||||
| (1) | Investment Income (Interest on cash balance) | (2) | (2) | |
| 0 | Management Fee (paid by Operator to Trust) | (174) | (174) | |
| (1) | Total Incoming Resources | (176) | 0 | (176) |
| Resources Expended | ||||
| Charitable activities | ||||
| 10 | Building maintenance | 73 | 73 | |
| 2 | Independent examination fee | 0 | 0 | |
| 45 | Support costs | 38 | 38 | |
| 280 | Depreciation and Revaluation (see note 5.) | 307 | 307 | |
| 337 | Total Resources Expended | 111 | 307 | 418 |
| 336 | Net (incoming)/outgoing resources | (65) | 307 | 242 |
| Other recognised gains/losses | ||||
| (607) | (Gains)/losses on revaluation of fixed assets | (499) | (499) | |
| Loss on disposal of fixed assets | 5 | 5 | ||
| (271) | Net Movement in Funds | (65) | (187) | (252) |
| Reconciliation of Funds | ||||
| (13,716) | Funds brought forward as at 1 April 2022 | (127) | (13,860) | (13,987) |
| (271) | Net Movement in Funds | (65) | (187) | (252) |
| (13,987) | Funds carried forward as at 31 March 2023 | (192) | (14,047) | (14,239) |
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Balance Sheet as at 31 March 2023
The assets in this Balance Sheet comprise Haslemere Leisure centre and its plant and equipment.
| 31 | March 2022 | 31 March 2023 | |||
|---|---|---|---|---|---|
| Unrestricted | Endowment | Total | |||
| Funds | Funds | ||||
| £'000 | £'000 | £'000 | £'000 | ||
| Fixed Assets | |||||
| 13,820 | Land and Buildings | 14,027 | 14,027 | ||
| 40 | Plant and Equipment | 20 | 20 | ||
| 13,860 | Total Fixed Assets | 0 | 14,047 | 14,047 | |
| Current Assets | |||||
| 129 | Deposits with Waverley Borough Council | 192 | 192 | ||
| 129 | 192 | 0 | 192 | ||
| 13,989 | Total Assets | 192 | 14,047 | 14,239 | |
| Less: Current Liabilities | |||||
| (2) | Creditors | 0 | 0 | ||
| 13,987 | Total Assets less Current Liabilities | 192 | 14,047 | 14,239 | |
| The Funds of the Charity: | |||||
| (127) | Unrestricted Funds | (192) | (192) | ||
| (13,860) | Endowment Funds | (14,047) | (14,047) | ||
| (13,987) | Total Charity Funds | (192) | (14,047) | (14,239) |
The notes on pages 10 to 12 form part of these accounts
Richard Bates
Executive Head of Finance and Section 151 Officer of Waverley Borough Council
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Notes to the Financial Statements
1. Related Party Transactions
Disclosure is required of any transactions which the Trust or any institution connected with it has entered into with a related party. Such transactions might inhibit the charity from pursuing its own separate interests.
Transparency is important to ensure the reported financial position and results do not include transactions influenced by interests other than the Trusts.
Waverley Borough Council is sole trustee of the Trust and, therefore, the only related party. The accounts presented represent the costs of the Council as trustee in its capacity as client of the management contractors. The costs go through the Council's own finance system and bank account.
There are no related party transactions as at 31 March 2023 except as disclosed in note 3.
2. Officers' Emoluments
There are no employees with emoluments over £60,000 charged to the Shottermill Recreation Ground Trust in 2022/2023.
No remuneration was paid to the Trustee or persons connected with the Trustee.
3. Support Costs
Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. They cover costs incurred in supporting the governance of the charity as well as the general management, budgeting and accounting & human resources. The staff that support the Trust are paid by Waverley Borough Council and then recharged to the Trust accounts.
Charitable Activities
2021/2022 2022/2023 £'000 £'000 45 Support costs 38
The support costs are allocated at the year end on the basis of time spent on the charity. The charge includes overheads.
4. Independent Examiner Costs
The Shottermill Recreation Grount Trust was subject to Independent examination for 2022/2023.
The fee charged to 2022/2023 is the accrued fee for the Independent examination of the 2022/2023 accounts.
| 2021/2022 | 2022/2023 | |
|---|---|---|
| £'000 | £'000 | |
| 2 | External Independent Examiner Fees | 0 |
| 2 | 0 |
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5. Fixed Assets
Movement on Fixed Assets
| Movement on Fixed Assets | |
|---|---|
| Operational Assets Cost or Valuation At 1 April 2022 Additions Donations Disposals Reclassifications At 31 March 2023 Depreciation and Impairments At 1 April 2022 Charge for 2022/2023 Revaluations Disposals Reclassifications Depreciation written out in the Endowment Funds Depreciation written out in the Statement of Financial Activity At 31 March 2023 Balance Sheet amount at 31 March 2023 Balance Sheet amount at 31 March 2022 Revaluations increases/(decreases) recognised in the Endowment Funds Revaluations increases/(decreases) recognised in the Statement of Financial Activity |
Other Vehicles, Total Land and Plant and Buildings Equipment £'000 £'000 £'000 13,832 493 14,325 0 0 0 (12) (307) (319) 0 0 0 207 207 0 0 0 |
| 14,027 186 14,213 (12) (453) (465) (293) (14) (307) 293 293 12 301 313 0 0 0 |
|
| (0) (166) (166) |
|
| 14,027 20 14,047 |
|
| 13,820 40 13,860 |
Historical cost of the leisure centre
The historical cost of the leisure centre is shown below, this shows what the value of the leisure centre would have been at 31 March 2023 had it not been revalued.
£'000
| Historical cost Depreciation At 31 March 2023 |
9,000 (2,250) |
|---|---|
| 6,750 |
Depreciation Methods used
Land and Buildings
Depreciation on buildings has been calculated on a straight-line basis using asset lives estimated by Waverley Borough Council's Estates and Valuation Manager.
Vehicles, Plant and Equipment
Depreciation on vehicles, plant and equipment has been calculated on a straight-line basis using asset lives of between five and ten years, depending on the type of asset.
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6. Valuation Information
The valuation of the Council's assets:
Land and Buildings
The land and buildings were valued by Waverley Borough Council's external valuer, Montagu Evans, in accordance with the Royal Institute of Chartered Surveyors (RICS) Statement of Asset Valuation Practice and Guidance Notes (Red Book) as supplemented by the Manual of Valuation (White Book). The land and buildings are held at fair value, defined as net current replacement cost. The de minimis level for land and buildings has been set at £10,000.
Vehicles, Plant and Equipment
The value of vehicles, plant and equipment in the Balance Sheet, reflects their net current replacement value (ie what it would cost, at today's prices, to replace the asset in its current condition to perform its current function). The de minimis level for vehicles, plant and equipment is £1,000.
7. Creditors
| 31 March 2022 Closing Balance £'000 (2) Accruals (2) Total of Creditors |
31 March 2023 Closing Balance £'000 0 |
|---|---|
| 0 |
8. Analysis of Charitable Funds
| Unrestricted Funds Endowment Funds |
1 April 2022 31 March 2023 Opening Incoming Resources Other Recognised Closing Balance Resources Expended Gains/Losses Balance £'000 £'000 £'000 £'000 £'000 127 176 (111) 0 192 13,860 0 (307) 494 14,047 |
|---|---|
| 13,987 176 (418) 494 14,239 |
9. Approval of Accounts
The Accounts were approved by the Trustee and signed by Richard Bates, Executive Head of Finance and Section 151 Officer, of Waverley Borough Council on 11 December 2023.
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Independent Examiner's Report to the Trustee of Shottermill Recreation Ground and Swimming Pool Trust
I report to the trustee of Shottermill Recreation Ground and Swimming Pool Trust (“the charity”) on my examination of the accounts of the charity for the year ended 31 March 2023 which are set out on pages 1 to 12.
Responsibilities and basis of report
As the charity’s trustee, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts 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 accounts to be reached.
Alex Temlett CA CTA ACA
For and on behalf of Azets Ashcombe Court Woolsack Way Godalming Surrey GU7 1LQ
11 December 2023