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2022-03-31-accounts

REGISTERED COMPANY NUMBER: 02042583 (England and Wales) REGISTERED CHARITY NUMBER: 518586

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR

EXERCISE REHABILITATION ASSOCIATION LTD

Saxon & Co Accountants Ltd 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 2022

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 22
Detailed Statement of Financial Activities 23 to 24

EXERCISE REHABILITATION ASSOCIATION LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

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 2022. 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 charity is a public benefit entity. 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 cardiovascular 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 rehabilitation 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 11 of the financial statements.

The charity's work is also underpinned by the wonderful contribution 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 continued to be affected by the COVID-19 pandemic in line with most other health providers in the UK.

For long periods of time the Action Heart Centre's capacity was reduced with approximately one third of its area being repurposed to host the hospital's vaccination centre. This resulted in the Action Heart staff continuing to offer 'virtual' services, in place of face to face services, to its patients for Cardiovascular Rehabilitation, Exercise Referral, Cancer Rehabilitation and Phases (Action Heart's child weight management service).

The Action Heart staff worked wonders, hosting a helpline, producing patient videos and maintaining contact with all existing and new patient referrals. Furloughed staff returned to work at the end of the furlough period and were able to start offering more face to face rehabilitation, as COVID 19 guidelines relaxed a little. It is envisaged that Action Heart's 'forced' adoption of virtual services will help the charity to develop 'hybrid' rehabilitation services in the future, a combination of virtual and face to face contact.

Action Heart's new and maintenance 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 and why the Action Heart Centre had to give up some of its floor space to the vaccination centre.

Although NHS services were drastically affected by the pandemic, referrals to Action Heart remained fairly stable and all patients were contacted and offered either virtual or face to face rehabilitation. This 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.

Page 1

EXERCISE REHABILITATION ASSOCIATION LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

FINANCIAL REVIEW

At the beginning of this financial year, Action Heart's commissioners, Dudley CCG and Dudley Public Health quickly assured Action Heart that normal funding would be continued, 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 income, with health club income significantly reduced. However, the furlough scheme and successful COVID-19 grant applications helped reduce the impact of this lost income.

At the close of the financial year, Action Heart appeared to be in a stable position, from both a financial and operational perspective.

FUTURE PLANS

Since the year end, normal face to face services have continued to increase. Action Heart continued to receive 'Long Covid' referrals and it is highly likely that such patients will be requiring support for some while, resulting in Action Heart developing another exercise rehabilitation 'specialism'. This additional patient group will help us to meet our clinical activity targets. Fundraising activities have started to recover and health club income has slowly increased. The current focus continues to be to rebuild the charity's activities to pre-pandemic levels.

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 11 of the accounts.

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

Page 2

EXERCISE REHABILITATION ASSOCIATION LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Registered office

5 Baird House Dudley Innovation Centre Pensnett Estate Dudley West Midlands DY6 7YA

Trustees

L D Dugmore R J Tipson P A Owen R J Ennis

Company Secretary

R J Tipson

Auditors

Saxon & Co Accountants Ltd 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

Use of Other Names

The charity also operates under the name "Action Heart".

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).

Page 3

EXERCISE REHABILITATION ASSOCIATION LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

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

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

In so far as the trustees are aware:

AUDITORS

The auditors, Saxon & Co Accountants Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 15 December 2022 and signed on its behalf by:

P A Owen - Trustee

Page 4

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 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and 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:

Page 5

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:

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.

Page 6

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:

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 charity 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:

We exercise professional judgement and 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.

Page 7

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.

Matthew Saxon (Senior Statutory Auditor) for and on behalf of Saxon & Co Accountants Ltd Kings Chambers Queens Cross High Street Dudley West Midlands DY1 1QT

15 December 2022

Page 8

EXERCISE REHABILITATION ASSOCIATION LTD

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

2022
Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations, legacies, charitable and other trading
activities
2
372,343
Investment income
3
43,013
Total
415,356
EXPENDITURE ON
Charitable activities
4
General
513,067
NET INCOME/(EXPENDITURE)
(97,711)
RECONCILIATION OF FUNDS
Total funds brought forward
271,744
TOTAL FUNDS CARRIED FORWARD
174,033		 2021
Total
funds
£
573,277
32,843
606,120
521,677
84,443
187,301
271,744

The notes form part of these financial statements

Page 9

EXERCISE REHABILITATION ASSOCIATION LTD

BALANCE SHEET 31 MARCH 2022

2022
Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
10
20,341
Investments
11
2
20,343
CURRENT ASSETS
Debtors
12
28,024
Cash at bank
143,096
171,120
CREDITORS
Amounts falling due within one year
13
(17,430)
NET CURRENT ASSETS
153,690
TOTAL ASSETS LESS CURRENT
LIABILITIES
174,033
NET ASSETS
174,033
FUNDS
15
Unrestricted funds
174,033
TOTAL FUNDS
174,033		 2021
Total
funds
£
21,805
2
21,807
14,623
253,903
268,526
(18,589)
249,937
271,744
271,744
271,744
271,744

The notes form part of these financial statements

continued...

Page 10

EXERCISE REHABILITATION ASSOCIATION LTD

BALANCE SHEET - continued 31 MARCH 2022

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 15 December 2022 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

Page 11

EXERCISE REHABILITATION ASSOCIATION LTD

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Covenant
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		 2022
£
(148,820)
(148,820)
(5,000)
42,998
15
38,013
(110,807)
253,903
143,096		 2021
£
67,917
67,917
-
32,816
27
32,843
100,760
153,143
253,903

The notes form part of these financial statements

Page 12

EXERCISE REHABILITATION ASSOCIATION LTD

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
Net (expenditure)/income for the reporting period (as per the Statement
of Financial Activities)
Adjustments for:
Depreciation charges
Loss on disposal of fixed assets
Interest received
Covenant
(Increase)/decrease in debtors
Decrease in creditors
Net cash (used in)/provided by operations		 2022
£
(97,711)
6,414
51
(15)
(42,998)
(13,402)
(1,159)
(148,820)		 2021
£
84,443
6,843
10
(27)
(32,816)
20,410
(10,946)
67,917

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.21 Cash flow At 31.3.22
£ £ £
Net cash
Cash at bank 253,903 (110,807) 143,096
253,903 (110,807) 143,096
Total 253,903 (110,807) 143,096

The notes form part of these financial statements

Page 13

EXERCISE REHABILITATION ASSOCIATION LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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.

The company is a parent and prepares separate financial statements that present information about the charity as an individual undertaking and not as a group. The charity is exempt from preparing consolidated financial statements by virtue of its size..

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. Contributions from unpaid general volunteers are not recognised.

The charity is given use of facilities at Russell Hall NHS hospital from which to conduct its activities. These donated facilities are not recognised as income because the value of such specialist facilities cannot be reliably measured.

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.

continued...

Page 14

EXERCISE REHABILITATION ASSOCIATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES - continued

Fund accounting

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.

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

2022 2021
£ £
Donations and legacies 57,303 60,869
Income from charitable activities 245,241 286,945
Income from other trading activities 8,722 624
Government Covid-19 grants 61,077 224,837
372,343 573,275

The amount received from non-exchange transactions included in the above amounts is £58,193 (2021- £54,417). These relate to donations and sales of donated goods.

3.

INVESTMENT INCOME

Covenant- Action Heart (Trading) Limited
Interest received		 2022
£
42,998
15
43,013		 2021
£
32,816
27
32,843

Page 15

continued...

EXERCISE REHABILITATION ASSOCIATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

4. CHARITABLE ACTIVITIES COSTS

General
5.
SUPPORT COSTS
General
Support costs, included in the above, are as follows:
Auditors' remuneration
Auditors' remuneration for non audit work
6.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Other non-audit services
Depreciation - owned assets
Deficit on disposal of fixed assets
7.
TRUSTEES' REMUNERATION AND BENEFITS
Trustees' salaries
Trustees' expenses		 Direct
Costs
£
508,817		 Support
costs (see
note 5)
Totals
£
£
4,250
513,067
Governance
costs
£
4,250
2022
2021
Total
General
activities
£
£
3,750
2,749
500
500
4,250
3,249
2022
2021
£
£
3,750
2,749
500
500
6,413
6,844
51
10
2022
2021
£
£
59,137
59,351

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Page 16

continued...

EXERCISE REHABILITATION ASSOCIATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

8.
STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Staff
No employees received emoluments in excess of £60,000.
9.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
INCOME AND ENDOWMENTS FROM
Donations, legacies, charitable and other trading
activities
Investment income
Total
EXPENDITURE ON
Charitable activities
General
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 2022
2021
£
£
397,584
405,694
28,255
30,324
7,369
7,122
433,208
443,140
2022
2021
26
31
Unrestricted
fund
£
573,277
32,843
606,120
521,677
84,443
187,301
271,744		 2022
2021
£
£
397,584
405,694
28,255
30,324
7,369
7,122
433,208
443,140
2022
2021
26
31
Unrestricted
fund
£
573,277
32,843
606,120
521,677
84,443
187,301
271,744
606,120
521,677
84,443
187,301
271,744

continued...

Page 17

EXERCISE REHABILITATION ASSOCIATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

10. TANGIBLE FIXED ASSETS

COST
At 1 April 2021
Additions
Disposals
At 31 March 2022
DEPRECIATION
At 1 April 2021
Charge for year
Eliminated on disposal
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021
11.
FIXED ASSET INVESTMENTS
MARKET VALUE
At 1 April 2021 and 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 Equipment
£
209,826
-
(5,650)
204,176
199,867
2,477
(5,599)
196,745
7,431
9,959		 Fixtures
and
fittings
£
54,539
-
-
54,539
51,799
412
-
52,211
2,328
2,740		 Computer
equipment
and
software
Totals
£
£
25,448
289,813
5,000
5,000
-
(5,650)
30,448
289,163
16,342
268,008
3,524
6,413
-
(5,599)
19,866
268,822
10,582
20,341
9,106
21,805
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:

continued...

Page 18

EXERCISE REHABILITATION ASSOCIATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

11. FIXED ASSET INVESTMENTS - continued

Action Heart (Trading) Limited

Registered office: 5 Baird House, Dudley Innovation Centre, Pensnett Estate, Dudley, West Midlands, DY6 7YA. Nature of business: Supply of goods and services

Nature of business: Supply of goods and services
%
Class of share:
holding
Ordinary
100
Aggregate capital and reserves
Profit for the year		 2022
£
3,240
42,929		 2021
£
3,309
32,736
Summary financial information of subsidiary: 2022 2021
£ £
Turnover 107,985 56,576
Expenditure (65,056) (23,840)
Profit for the year 42,929 32,736
Assets 26,225 20,542
Liabilities (22,985) (17,233)
Net Assets 3,240 3,309

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Amounts owed by group undertakings
Taxation and social security
Prepayments and accrued income		 2022
£
16,986
2,054
8,984
28,024		 2021
£
3,573
3,090
7,960
14,623

continued...

Page 19

EXERCISE REHABILITATION ASSOCIATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

13.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Social security and other taxes
Other creditors
Accrued expenses		 2022
£
6,470
2,204
8,756
17,430		 2021
£
7,055
2,234
9,300
18,589

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years
MOVEMENT IN FUNDS
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS		 At 1.4.21
£
271,744
271,744
Incoming
resources
£
415,356
415,356		 2022
2021
£
£
18,190
15,158
34,865
-
53,055
15,158
Net
movement
At
in funds
31.3.22
£
£
(97,711)
174,033
(97,711)
174,033
Resources
Movement
expended
in funds
£
£
(513,067)
(97,711)
(513,067)
(97,711)		 2021
£
15,158
-
15,158
At
31.3.22
£
174,033		 2021
£
15,158
-
15,158
174,033
(97,711)

15. MOVEMENT IN FUNDS

continued...

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EXERCISE REHABILITATION ASSOCIATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

15. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1.4.20
£
Unrestricted funds
General fund
187,301
TOTAL FUNDS
187,301
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
606,120
TOTAL FUNDS
606,120
A current year 12 months and prior year 12 months combined position is as follows:
At 1.4.20
£
Unrestricted funds
General fund
187,301
TOTAL FUNDS
187,301		 Net
movement
At
in funds
31.3.21
£
£
84,443
271,744
84,443
271,744
Resources
Movement
expended
in funds
£
£
(521,677)
84,443
(521,677)
84,443
Net
movement
At
in funds
31.3.22
£
£
(13,268)
174,033
(13,268)
174,033

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 1,021,476 (1,034,744 ) (13,268)
TOTAL FUNDS 1,021,476 (1,034,744 ) (13,268)

continued...

Page 21

EXERCISE REHABILITATION ASSOCIATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

16. RELATED PARTY DISCLOSURES

Rees Page Solicitors charged the charity £653 during the year (2021- £2,067). Mr R J Ennis is a partner in the firm.

R Tipson was paid a salary of £59,137 during the year (2021- £59,351). This remuneration was approved by the charity commission.

Action Heart (Trading) Ltd, a 100% owned subsidiary, paid the charity by way of covenant £42,998 during the year (2021- £32,816) and £13,413 (2021- £Nil) for service recharges. At the 31st March 2022 the subsidiary owed the charity £16,823 (2021 -£3,573).

Pleagrove Ltd charged the charity £13,920 (2021- £13,920) for bookkeeping and payroll services. Mr P A Owen is a director and shareholder in this company.

Page 22

EXERCISE REHABILITATION ASSOCIATION LTD

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

2022
Unrestricted
funds
£
INCOME AND ENDOWMENTS
Donations, legacies, charitable and other trading activities
Income
311,266
Grants
61,077
372,343
Investment income
Covenant- Action Heart (Trading) Limited
42,998
Interest received
15
43,013
Total incoming resources
415,356
EXPENDITURE
Charitable activities
Trustees' salaries
59,137
Wages
338,447
Employers national insurance
28,255
Pensions
7,369
Insurance
7,406
Light and heat
2,809
Postage, stationery, telephone and advertising
1,907
Repairs, maintenance and training
986
Computer expenses, software and support
14,643
Sundries and subscriptions
4,159
Motor and travelling expenses
1,430
Professional charges
14,573
Equipment spares and accessories
2,808
Rent and service charge
18,343
Bank charges
80
Depreciation equipment
2,478
Depreciation fixtures and fittings
412
Depreciation computer equipment
3,524
Loss on sale of tangible fixed assets
51
508,817
Support costs		 2021
Total
funds
£
348,440
224,837
573,277
32,816
27
32,843
606,120
59,351
346,343
30,324
7,122
7,112
2,090
1,390
65
15,661
1,250
675
16,615
4,403
19,174
-
3,323
484
3,036
10
518,428

This page does not form part of the statutory financial statements

Page 23

EXERCISE REHABILITATION ASSOCIATION LTD

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

DETAILED STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 MARCH 2022
2022
Unrestricted
funds
£
Support costs
Governance costs
Auditors' remuneration
3,750
Auditors' remuneration for non audit work
500
4,250
Total resources expended
513,067
Net income
(97,711)		 2021
Total
funds
£
2,749
500
3,249
521,677
84,443

This page does not form part of the statutory financial statements

Page 24