REGISTERED COMPANY NUMBER: 02042583 (England and Wales) REGISTERED CHARITY NUMBER: 518586
REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
FOR
EXERCISE REHABILITATION ASSOCIATION LTD
Saxon & Co. Statutory Auditors Chartered Accountants Kings Chambers Queens Cross High Street Dudley West Midlands DY1 1QT
EXERCISE REHABILITATION ASSOCIATION LTD
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 4 |
| Report of the Independent Auditors | 5 | to | 8 |
| Statement of Financial Activities | 9 | ||
| Balance Sheet | 10 | to | 11 |
| Cash Flow Statement | 12 | ||
| Notes to the Cash Flow Statement | 13 | ||
| Notes to the Financial Statements | 14 | to | 21 |
EXERCISE REHABILITATION ASSOCIATION LTD (REGISTERED NUMBER: 02042583)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021
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 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES Objectives and aims
The charity provides a cardiovascular rehabilitation service that helps people who suffer from heart or vascular related conditions. These aims are mainly achieved via its clinical activities at the Action Heart Centre at Russells Hall Hospital in Dudley, West Midlands.
The trustees have had due regard for guidance published by the Charity Commission, including guidance on public benefit.
Action Heart serves its local community via its 'core service' the cardiac rehabilitation programme which receives referrals from the Dudley Health economy and also from certain catchment areas within Sandwell, Staffordshire, Worcestershire, Wolverhampton and Birmingham health economies. The above geographical areas result in Action Heart serving a population in excess of 400,000. Action Heart also runs exercise programmes for patients with other conditions, such as diabetes, obesity and cancer.
Although Action Heart receives funding for the above clinical activities the charity continues to trade through its wholly owned subsidiary, Action Heart (Trading) Ltd, in order to generate additional funding to further the charity's objectives. Fundraising activities include sporting events, exercise classes and sales of goods. Its performance during the year is detailed in note 12 of the financial statements.
The charity's work is also underpinned by the wonderful service it receives from its 100+ volunteers, many of whom are ex-patients or carers of Action Heart's services. Indeed, the volunteers are an integral part of Action Heart's service and receive appropriate training and support to carry out their activities.
ACHIEVEMENT AND PERFORMANCE
All of Action Heart's services were significantly affected by the COVID-19 pandemic and the various changes in government guidance.
For long periods of time the Action Heart Centre was closed, being repurposed, initially as a warehouse and more latterly as a vaccination centre.
This resulted in the Action Heart staff offering 'virtual' services to its patients for Cardiovascular Rehabilitation, Exercise Referral, Cancer Rehabilitation and Phases (Action Heart's child weight management service).
The staff worked wonderful, hosting a helpline, producing patient videos and maintaining contact with all existing and new patient referrals. These tasks were undertaken by a 'core team', as finances dictated that some of the Action Heart team would have to be furloughed whilst income streams were adversely affected by the pandemic. The furloughed staff responded exceptionally well, fully understanding the situation and supporting Action Heart all the way, even though their personal income was reduced, as per the furlough guidelines.
Action Heart's patients also responded extremely well to the situation, appreciating the reasons for why there was only a virtual service available at certain times during the year.
Action Heart's core team not only supported the new virtual services but volunteered to work for the hospital's Proning Team, helping to prone patients in Critical Care. Action Heart's Trustees are very proud of the staff response, which involved going well above and beyond the call of duty, potentially placing themselves in harm's way.
Although NHS services were drastically affected by the pandemic, referrals to Action Heart remained fairly stable and all patients were contacted and offered the virtual service. This has helped to keep waiting lists under control and puts Action Heart in a strong position to resume normal services as soon as the opportunity arises.
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EXERCISE REHABILITATION ASSOCIATION LTD (REGISTERED NUMBER: 02042583)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021
FINANCIAL REVIEW
At the beginning of this financial year the country had just entered into the first Covid-19 lockdown. Action Heart's commissioners, Dudley CCG and Dudley Public Health quickly assured Action Heart that normal funding would be continued during the pandemic, irrespective of any changes to the usual contract Key Performance Indicators.
Although Action Heart's key income streams continued, the charity lost the vast majority of its fundraising and health club income. However, the furlough scheme and successful COVID-19 grant applications enabled the charity to balance its finances to the end of the financial year.
At the close of the financial year, Action Heart appeared to be in a stable position, from both a financial and operational perspective.
The charity was compensated for the loss of the Action Heart Centre to the NHS vaccination drive. This additional income stream helped to cover loss of income in other areas.
FUTURE PLANS
Since the year end, the successful nationwide vaccination programme meant that government restrictions were eased, and the full exercise rehabilitation programme resumed. We welcomed back existing patients and work with new referrals also recommenced. Action Heart was also asked to receive "long covid" referrals as it is highly likely that these patients will also benefit from the rehabilitation programme. This additional patient group will help us to meet our clinical activity targets. Fundraising activities have also re-commenced and the health club re-opened. The current focus is to rebuild the charity's activities to pre-pandemic levels.
With the recent onset of the Omicron variant uncertainty remains. The latest available data indicates that the shutdown of most non-COVID-19 services in the first Covid-19 wave, combined with drastic changes in patient behaviour, mean the NHS is facing a large backlog of non-COVID-19 care and therefore demand for our programme should only increase.
The trustees will continue to closely monitor the charity's income and expenditure levels.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity constitutes a limited company registered in England & Wales, limited by guarantee, as defined by the Companies Act 2006. It is controlled by its Memorandum and Articles of Association, which form its governing document. The charity is known as 'Action Heart'.
Recruitment and appointment of new trustees
The directors of the company are also charity trustees for the purpose of charity law and under the company's Articles are known as members of the Council of Management.
Under the requirements of the Memorandum and Articles of Association one third of the longest serving members of the council must retire from office each year. (If their number is not three or a multiple of three, then the number nearest one third shall retire from office). A retiring member of the council can be re-elected at the next Annual General Meeting or a new member, who must have been recommended by the council, can be appointed by resolution.
Organisational structure and key management
The board of directors, who are also the trustees, are the charity's key management personnel. The day to day decision making and management of the charity is performed by Russell Tipson. Any major decisions are made by the Trustees. Russell Tipson's remuneration is authorised by the charity commission and is set by the other trustees who review it on an annual basis. The charity trades through a 100% owned subsidiary Action Heart (Trading) Ltd and its performance is detailed in note 12 of the accounts.
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EXERCISE REHABILITATION ASSOCIATION LTD (REGISTERED NUMBER: 02042583)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT
Induction and training of new trustees
The charity has procedures in place to train new trustees and this includes making them aware of their legal obligations under charity and company law, briefing them on charity commission guidance and trustee resources and making them aware of the contents of the governing document.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
02042583 (England and Wales)
Registered Charity number
518586
Registered office
22a Navigation Drive Hurst Business Park Brierley Hill West Midlands DY5 1UT
Trustees
L D Dugmore R J Tipson P A Owen R J Ennis
Company Secretary
R J Tipson
Auditors
Saxon & Co. Statutory Auditors Chartered Accountants Kings Chambers Queens Cross High Street Dudley West Midlands DY1 1QT
Solicitors
Rees Page 8/12 Waterloo Road Wolverhampton WV1 4BL
Bankers
Lloyds Bank PLC 63 High Street Dudley West Midlands DY1 1PY
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EXERCISE REHABILITATION ASSOCIATION LTD (REGISTERED NUMBER: 02042583)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of Exercise Rehabilitation Association Ltd for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
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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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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.
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 auditors, Saxon & Co., will be proposed for re-appointment at the forthcoming Annual General Meeting.
Approved by order of the board of trustees on 21 December 2021 and signed on its behalf by:
P A Owen - Trustee
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EXERCISE REHABILITATION ASSOCIATION LTD
Opinion
We have audited the financial statements of Exercise Rehabilitation Association Ltd (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 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; 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.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EXERCISE REHABILITATION ASSOCIATION LTD
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.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EXERCISE REHABILITATION ASSOCIATION LTD
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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks to obtain sufficient appropriate audit evidence on which to base our opinion.
To identify and assess risks of material misstatement in respect of irregularities, including fraud, we conduct general and specific risk assessment procedures which include considering:
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The nature of the entity and the industry in which it operates, business performance and the control environment.
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The laws and regulations applicable to the entity.
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Management's own assessment of the risk of fraud occurring and non-compliance with laws and regulations.
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The operating effectiveness of management's controls established to mitigate the risks of fraud or non-compliance with laws and regulations.
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Whether management know of any instances of fraud or non-compliance with laws and regulations.
We also hold an audit engagement team meeting to discuss how and where fraud might occur, if any opportunities and incentives may exist within the business and assess any potential indicators of fraud.
As a result of our procedures we identify direct and indirect laws and regulations applicable to the entity. Direct laws and regulations are those that effect the financial statements and indirect laws and regulations are those that may be central to the entity's ability to operate. The direct laws and regulations identified are the Companies Act, Charities Act, UK GAAP (FRS 102 SORP) and UK Tax Legislation. Indirect laws and regulations identified are the charity's governing document, charity law and the Charity Commission public benefit.
Our response to the risks identified include:
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Reviewing the financial statement disclosures and testing supporting documentation.
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Enquiring of management concerning actual or potential litigation claims.
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Performing analytical procedures to identify any unusual or unexpected variances that may be indicators of material misstatement due to fraud.
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Assessing the risk of management override of controls and bias by testing the appropriateness of journal entries and estimates within the financial statements.
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Obtaining an understanding of related parties and evaluating related party transactions and any significant transactions outside the normal course of business.
We also communicate the requirement to maintain professional skepticism to all members of the engagement team and ensure they are aware of relevant identified laws and regulations, related parties and potential fraud risks and remain alert to any indicators of fraud or non-compliance with laws and regulations throughout the audit.
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.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EXERCISE REHABILITATION ASSOCIATION LTD
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.
Anthony Saxon (Senior Statutory Auditor) for and on behalf of Saxon & Co. Statutory Auditors Chartered Accountants Kings Chambers Queens Cross High Street Dudley West Midlands DY1 1QT
21 December 2021
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EXERCISE REHABILITATION ASSOCIATION LTD
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021
| 2021 Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations, legacies, charitable and other trading activities 2 573,277 Investment income 3 32,843 Total 606,120 EXPENDITURE ON Charitable activities 4 General 521,677 NET INCOME/(EXPENDITURE) 84,443 RECONCILIATION OF FUNDS Total funds brought forward 187,301 TOTAL FUNDS CARRIED FORWARD 271,744 |
2020 Total funds £ 450,765 111,930 562,695 587,125 (24,430) 211,731 187,301 |
|---|---|
The notes form part of these financial statements
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EXERCISE REHABILITATION ASSOCIATION LTD (REGISTERED NUMBER: 02042583)
BALANCE SHEET 31 MARCH 2021
| 2021 Unrestricted fund Notes £ FIXED ASSETS Tangible assets 10 21,805 Investments 11 2 21,807 CURRENT ASSETS Debtors 12 14,623 Cash at bank 253,903 268,526 CREDITORS Amounts falling due within one year 13 (18,589) NET CURRENT ASSETS 249,937 TOTAL ASSETS LESS CURRENT LIABILITIES 271,744 NET ASSETS 271,744 FUNDS 16 Unrestricted funds 271,744 TOTAL FUNDS 271,744 |
2020 Total funds £ 28,658 2 28,660 35,033 153,143 188,176 (29,535) 158,641 187,301 187,301 187,301 187,301 |
|---|---|
The notes form part of these financial statements
continued...
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EXERCISE REHABILITATION ASSOCIATION LTD (REGISTERED NUMBER: 02042583)
BALANCE SHEET - continued 31 MARCH 2021
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 21 December 2021 and were signed on its behalf by:
P A Owen - Trustee
R J Tipson - Trustee
R J Ennis - Trustee
The notes form part of these financial statements
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EXERCISE REHABILITATION ASSOCIATION LTD
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by/(used in) 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 |
2021 £ 100,733 100,733 27 27 100,760 153,143 253,903 |
2020 £ (13,550) (13,550) 129 129 (13,421) 166,564 153,143 |
|---|---|---|
The notes form part of these financial statements
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EXERCISE REHABILITATION ASSOCIATION LTD
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2021
1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES
| ACTIVITIES | ||
|---|---|---|
| Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Loss on disposal of fixed assets Interest received Decrease in debtors Decrease in creditors Net cash provided by/(used in) operations |
2021 £ 84,443 6,843 10 (27) 20,410 (10,946) 100,733 |
2020 £ (24,430) 9,046 8 (129) 28,781 (26,826) |
| (13,550) |
2. ANALYSIS OF CHANGES IN NET FUNDS
| At 1.4.20 | Cash flow | At 31.3.21 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 153,143 | 100,760 | 253,903 |
| 153,143 | 100,760 | 253,903 | |
| Total | 153,143 | 100,760 | 253,903 |
The notes form part of these financial statements
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EXERCISE REHABILITATION ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1. ACCOUNTING POLICIES
Basis of preparation
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, with the exception of investments which are included at market value.
There are no material uncertainties about the charity's ability to continue as a going concern.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Income derived from the provision of goods and services is stated net of VAT.
Donated resources are recognised as income once the subsequent sale of the donated goods is made.
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.
Governance costs
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
| Equipment | - 25% on reducing balance |
|---|---|
| Fixtures and fittings | - 15% on reducing balance |
| Computer equipment and software | - 25% on reducing balance |
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
continued...
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EXERCISE REHABILITATION ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021
1. ACCOUNTING POLICIES - continued
Leasing commitments
Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the period of the lease.
Financial instruments
The charity only has basic financial instruments. Basic financial instruments are measured at amortised cost.
Government grants
Once the recognition criteria have been met the charity recognises grants using either the performance model or the accruals model. Covid-19 grants are revenue based grants and are therefore recognised immediately.
2. DONATIONS, LEGACIES, CHARITABLE AND OTHER TRADING ACTIVITIES
| Donations and legacies Income from charitable activities Income from other trading activities Government Covid-19 grants 3. INVESTMENT INCOME Covenant- Action Heart (Trading) Limited Interest received 4. CHARITABLE ACTIVITIES COSTS Direct Costs £ General 518,428 |
2021 | 2020 | |
|---|---|---|---|
| £ | £ | ||
| 60,869 | 152,466 | ||
| 286,945 | 279,200 | ||
| 624 | 19,099 | ||
| 224,837 | - | ||
| 573,275 | 450,766 | ||
| 2021 £ 32,816 27 32,843 Support costs (see note 5) £ 3,249 |
2020 £ 111,801 129 111,930 Totals £ 521,677 |
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EXERCISE REHABILITATION ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021
5. SUPPORT COSTS
| SUPPORT COSTS | ||
|---|---|---|
| Governance | ||
| costs | ||
| £ | ||
| General | 3,249 | |
| Support costs, included in the above, are as follows: | ||
| 2021 | 2020 | |
| Total | ||
| General | activities | |
| £ | £ | |
| Auditors' remuneration | 2,749 | 3,549 |
| Auditors' remuneration for non audit work | 500 | 500 |
| 3,249 | 4,049 | |
| NET INCOME/(EXPENDITURE) | ||
| Net income/(expenditure) is stated after charging/(crediting): | ||
| 2021 | 2020 | |
| £ | £ | |
| Auditors' remuneration | 2,749 | 3,549 |
| Other non-audit services | 500 | 500 |
| Depreciation - owned assets | 6,844 | 9,046 |
| Deficit on disposal of fixed assets | 10 | 8 |
| TRUSTEES' REMUNERATION AND BENEFITS | ||
| 2021 | 2020 | |
| £ | £ | |
| Trustees' salaries | 60,227 | 60,550 |
6. NET INCOME/(EXPENDITURE)
7. TRUSTEES' REMUNERATION AND BENEFITS
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.
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EXERCISE REHABILITATION ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021
| 8. | STAFF COSTS | ||
|---|---|---|---|
| 2021 | 2020 | ||
| £ | £ | ||
| Wages and salaries | 405,694 | 459,366 | |
| Social security costs | 30,324 | 36,463 | |
| Other pension costs | 7,122 | 8,964 | |
| 443,140 | 504,793 | ||
| The average monthly number of employees during the year was as follows: | |||
| 2021 | 2020 | ||
| Staff | 31 | 32 | |
| The number of employees whose employee benefits (excluding employer pension costs) | exceeded £60,000 was: | ||
| 2021 | 2020 | ||
| £60,001 - £70,000 | 1 | 1 | |
| 9. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES | ||
| Unrestricted | |||
| fund | |||
| £ | |||
| INCOME AND ENDOWMENTS FROM | |||
| Donations, legacies, charitable and other trading | |||
| activities | 450,765 | ||
| Investment income | 111,930 | ||
| Total | 562,695 | ||
| EXPENDITURE ON | |||
| Charitable activities | |||
| General | 587,125 | ||
| NET INCOME/(EXPENDITURE) | (24,430) | ||
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 211,731 | ||
| TOTAL FUNDS CARRIED FORWARD | 187,301 |
continued...
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EXERCISE REHABILITATION ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021
10. TANGIBLE FIXED ASSETS
| COST At 1 April 2020 Disposals At 31 March 2021 DEPRECIATION At 1 April 2020 Charge for year Eliminated on disposal At 31 March 2021 NET BOOK VALUE At 31 March 2021 At 31 March 2020 11. FIXED ASSET INVESTMENTS MARKET VALUE At 1 April 2020 and 31 March 2021 NET BOOK VALUE At 31 March 2021 At 31 March 2020 |
Equipment £ 219,626 (9,800) 209,826 206,334 3,324 (9,791) 199,867 9,959 13,292 |
Fixtures and fittings £ 54,539 - 54,539 51,315 484 - 51,799 2,740 3,224 |
Computer equipment and software Totals £ £ 25,448 299,613 - (9,800) 25,448 289,813 13,306 270,955 3,036 6,844 - (9,791) 16,342 268,008 9,106 21,805 12,142 28,658 Shares in group undertakings £ 2 2 2 |
|---|---|---|---|
There were no investment assets outside the UK.
The company's investments at the balance sheet date in the share capital of companies include the following:
Action Heart (Trading) Limited
Registered office: 22a Navigation Drive, Hurst Business Park, Brierley Hill, West Midlands, DY5 1UT. Nature of business: Supply of goods and services
| % | |||
|---|---|---|---|
| Class of share: | holding | ||
| Ordinary | 100 | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Aggregate capital and reserves | 3,309 | 3,489 | |
| Profit for the year | 32,736 | 111,690 |
continued...
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EXERCISE REHABILITATION ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021
| 12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Amounts owed by group undertakings Other debtors Taxation and social security Prepayments and accrued income 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Social security and other taxes Other creditors Accrued expenses 14. LEASING AGREEMENTS Minimum lease payments under non-cancellable operating leases fall due as follows: Within one year Between one and five years 15. SECURED DEBTS |
2021 £ 3,573 - 3,090 7,960 14,623 2021 £ 7,055 2,234 9,300 18,589 2021 £ 15,158 - 15,158 |
2020 £ 21,640 447 2,523 10,423 |
|---|---|---|
| 35,033 | ||
| 2020 £ 8,209 11,496 9,830 |
||
| 29,535 | ||
| 2020 £ 18,190 15,158 |
||
| 33,348 | ||
Lloyds TSB has a first legal charge over monies held in deposit agreement known as Businv A/C 07666835 held at 309275.
16. MOVEMENT IN FUNDS
| Unrestricted funds General fund TOTAL FUNDS |
At 1.4.20 £ 187,301 187,301 |
Net movement in funds £ 84,443 84,443 |
At 31.3.21 £ 271,744 |
|---|---|---|---|
| 271,744 |
continued...
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EXERCISE REHABILITATION ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021
16. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Incoming resources £ Unrestricted funds General fund 606,120 TOTAL FUNDS 606,120 Comparatives for movement in funds At 1.4.19 £ Unrestricted funds General fund 211,731 TOTAL FUNDS 211,731 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 562,695 TOTAL FUNDS 562,695 A current year 12 months and prior year 12 months combined position is as follows: At 1.4.19 £ Unrestricted funds General fund 211,731 TOTAL FUNDS 211,731 |
Resources Movement expended in funds £ £ (521,677) 84,443 (521,677) 84,443 Net movement At in funds 31.3.20 £ £ (24,430) 187,301 (24,430) 187,301 Resources Movement expended in funds £ £ (587,125) (24,430) (587,125) (24,430) Net movement At in funds 31.3.21 £ £ 60,013 271,744 60,013 271,744 |
|---|---|
continued...
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EXERCISE REHABILITATION ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021
16. 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:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 1,168,815 | (1,108,802 ) | 60,013 |
| TOTAL FUNDS | 1,168,815 | (1,108,802 ) | 60,013 |
17. RELATED PARTY DISCLOSURES
Rees Page Solicitors charged the charity £2,067 during the year (2020- £4,154). Mr R J Ennis is a partner in the firm.
R Tipson was paid a salary of £60,227 during the year (2020- £60,550). This remuneration was approved by the charity commission.
Action Heart (Trading) Ltd, a 100% owned subsidiary, paid the charity by way of covenant £32,816 during the year (2020- £111,801) and £Nil (2020- £32,493) for service recharges. At the 31st March 2021 the subsidiary owed the charity £3,573 (2020 -£21,640).
Pleagrove Ltd charged the charity £13,920 (2020- £13,920) for bookkeeping and payroll services. Mr P A Owen is a director and shareholder in this company.
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