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2021-03-31-accounts

Charity number: 52123

THE GREATER MANCHESTER TRUST FOR RECREATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS
Charity Information 1
Charity Chair and Chief Executive Statement 2
Trustees’ Report 3 – 11
Independent Examiner’s Report 12
Statement of Financial Activities 13
Balance Sheet 14
Notes to the Financial Statements 15 – 25

THE GREATER MANCHESTER TRUST FOR RECREATION CHARITY INFORMATION 31 MARCH 2021

PRESIDENT Sir Peter Fahy QPM
PATRONS Sir Warren Smith
Sean Anstee CBE
TRUSTEES Gavin Evans Chair of Trustees
Roger Bateson Trustee (Resigned January 2021)
Robert Denson Trustee
Andrew Johnston Trustee
Daniel Jones Trustee
Emma O’Reilly Trustee
Helen Robinson Trustee (from November 2020)
Glyn Potts Trustee (from May 2021)
PRINCIPAL OFFICE Office 317, 3rdFloor
Stockport Business & Innovation Centre
Broadstone Mill
Broadstone Road
Stockport
SK5 7DL
ACCOUNTANTS Donnelly Bentley Limited
Chartered Accountants
Hazelmere
70 Chorley New Road
Bolton
BL1 4BY
BANKERS Barclays Bank plc
INVESTMENT MANAGERS Brewin Dolphin
Asset Management Division
1 The Avenue
Spinningfields Square
Manchester
M3 3AP
SOLICITORS Myerson LLP
Grosvenor House
20 Barrington Road
Altrincham
WA14 1HB
CONSULTANT Sophia Fleming Consulting Ltd
5 Ash Mount Court
Heaton Mersey
Stockport
SK4 3BL
CHARITY PERSONNEL Chief Executive Karen Wilson DL
Operations Manager Lisa Hall
Duke of Edinburgh and
Clubs’ Engagement Officer Grace Beasley

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THE GREATER MANCHESTER TRUST FOR RECREATION TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Charity Chair and Chief Executive Statement

For the last 9 years, Greater Manchester Trust for Recreation has been operating as Boys and Girls clubs of Greater Manchester. As part of a Strategic Review carried out by the Trustees and staff during 2021, it has been decided that the operating name needs to be altered so that it is more inclusive and, reflects more accurately, the Charity aims. Our operating name is now Greater Manchester Youth Federation. Our new logo is on the front cover. The badge gives a nod to our past logo and history whilst the splash of colour is vibrant and dynamic.

We also gave considerable thought to the words we use in describing our role:

“Supporting Aspiration. Creating Opportunities”

We aim to use these words to give us direction and focus in our work going forwards. We hope that when you read what we have been doing and what we aim to do in the future, you will have a greater understanding of this.

The period of COVID19 restrictions has now spanned two annual reports and it has been a difficult time for our affiliated members as explained further in our report. For us, we have used the time to give careful thought to our future both in strategic terms and financially. We give an enormous vote of thanks to our Trustees and staff who have engaged fully with this process and brought some exciting ideas to all of us. The support they give all of us as we go about our work is tremendous and we give them a huge vote of thanks.

During 2022 we hope to move into our new premises in Partington, Trafford. This will be the first time in over 100 years that the Charity has acquired premises for its own use enabling it to deliver its charitable objectives directly. It is an incredibly exciting time and we are grateful to Trafford MBC for allowing us this opportunity and for being great partners with us during the process. We now hope to work with many other partners to deliver our services.

Gavin Evans, Chair of Trustees

Karen Wilson DL, Chief Executive

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THE GREATER MANCHESTER TRUST FOR RECREATION TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees’ present their annual report and the financial statements of The Greater Manchester Trust for Recreation (‘the Charity’) for the year ended 31 March 2021. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 of the accounts and comply with the Charity's Trust Deed, the Charities Act 2011 and 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 2015).

STRUCTURE GOVERNANCE AND MANAGEMENT

The original Charity was founded in 1907 as Manchester and Salford Playing Fields Society, whose objects were the provision of playing fields for children, youths and young adults in the cities of Manchester and Salford. From 1923 the Society was governed by a Scheme of the Charity Commission. In 1997, following discussions with the Commission, the scheme was adapted, enabling the Charity to take over the assets of the Greater Manchester Federation of Boys' Clubs. The combination of these two charities has widened the objectives of the Charity to include the provision of services, grants, advice and activities to clubs for young people throughout Greater Manchester, as well as the provision of playing fields for young people.

The Charity is governed by the Trustees at Board Meetings. The governing document now allows for a maximum of ten trustees, each appointed for a term of three (previously five) years. The Trustees must hold at least two ordinary meetings in each year although currently we hold six such meetings. The current trustees are:

Robert Denison (re-appointed December 2020)

Gavin Evans (Chair) (appointed April 2019) Andrew Johnston (re-appointed May 2015) Daniel Jones (re-appointed December 2020)

Emma O’Reilly (appointed April 2019)

Glyn Potts (appointed May 2021)

Helen Robinson (appointed November 2020)

Andrew Johnston has decided to step down after many years of excellent service and we thank him for his contribution during that time.

We also have our two patrons, Sir Warren Smith, Lord Lieutenant of Greater Manchester and Sean Anstee CBE. Each of these patrons brings a wealth of knowledge of Greater Manchester and we are very grateful for their kind attention to our work.

The Charity is a member of a variety of organisations including:

National Council for Voluntary Organisations (NCVO)

SportEd

National Youth Agency

all of which provide comprehensive advice on good practice and changes in the law affecting charities.

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THE GREATER MANCHESTER TRUST FOR RECREATION TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Risk Management

In pursuit of the Charity's objectives, the Trustees are agreed that they will not take any financial or ethical risk in the management of the Charity's assets. They will endeavour to ensure that all newly recruited trustees have appropriate qualities to serve in that capacity. In events and activities, delegated management (as directed by the Trustees), endeavour to ensure that appropriate skills and qualifications are held to undertake the specific activity.

Safeguarding is a priority and safeguarding related policies have been reviewed and, where necessary, updated. During the year we have engaged external consultants to update our policies and deliver staff training. Our consultants are also involved in training our club volunteers. As part of our affiliation requirements for 2022 we are seeking to ensure that all of our affiliated clubs have safeguarding as a priority and have appropriate training and Designated Safeguarding Leads in place.

GDPR provisions are up to date and remain monitored. As part of our ongoing review we have now moved our IT system to a cloud-based system using a Microsoft suite of programmes and very little information is now kept on hard drives. Any computer (laptops) used outside of the office are encrypted for enhanced security.

Collaboration with other charities and organisations

The Charity collaborates with and supports the member organisations, many of which are themselves registered charities. Our main collaboration is with the clubs who are organisations involved in providing sport and youth club activities and facilities to young people. We aim to be a supportive partner providing help, assistance and direction to our clubs.

Most of our affiliated clubs are run by volunteers with very few paid staff.

Custodian Trusteeship

The Charity, or its wholly owned subsidiary company Greater Manchester Federation of Boys Clubs, acts as custodian Trustee for the following organisations, segregating such assets from its own. Should any of these organisations fail to meet their obligations under the leases the ultimate responsibility would lie with the Charity.

Norbrook Youth Club, Garthorp Road, Northern Moor, Manchester.

In August 2005 The Greater Manchester Trust for Recreation entered into a 125-year lease with Manchester City Council, Greater Manchester Passenger Transport Executive and Norbrook Youth Club.

Haughton Green Young People’s Centre, Lancaster Road, Denton, Tameside.

In February 1998 Greater Manchester Federation of Boys Clubs entered into a 40-year lease with Tameside Metropolitan Borough Council on behalf of the club.

Whitemoss Club for Young People, Southdown Crescent, Blackley, Manchester.

In February 2020 The Greater Manchester Trust for Recreation entered into a 25-year lease with Manchester City Council on behalf of the club.

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THE GREATER MANCHESTER TRUST FOR RECREATION TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

West End Amateur Football Club, Windsor Road, Denton, Tameside.

In June 2000 Greater Manchester Federation of Boys Clubs entered into a 21-year lease with Tameside Metropolitan Borough Council on behalf of the club. The lease is in the process of being renewed directly with Tameside Metropolitan Borough Council and West End Amateur Football Club.

Jimmy Egans Boxing Academy, Kings Mission Church, Royalthorn Drive, Wythenshawe, Manchester. In June 2008 The Greater Manchester Trust for Recreation entered into a 99-year lease with Willow Park Housing Trust on behalf of the club.

Ormside Mill Residential Centre Limited

The Charity worked with the Lancashire Association of Boys and Girls Clubs (LABGC) to set up the separate charity, Ormside Mill Residential Centre Limited (charity number 1078029) in 1998. This is a company limited by guarantee and its two shareholders are ourselves and LABGC. In 1999, Ormside Mill Residential Centre Limited, purchased Ormside Mill in Appleby in Westmorland which is run as a residential centre for young people. Two of our trustees and our Chief Executive, Karen Wilson, are also Directors of Ormside Mill Limited.

At the current time, Ormside Mill has only just resumed operations due to Covid-19 restrictions on its use. Notwithstanding the loss of income during the period we are not anticipating that this will give rise to any extra cost to us as the management committee have had success in raising grant funding to cover costs.

CHARITABLE OBJECTIVES AND ACTIVITIES

The Charity’s objectives are:

The area of benefit is Manchester, Salford and elsewhere in the surrounding towns and districts.

In furtherance of these objects the Trustees have the following powers:

The Trustees have taken advice on whether the above objects and powers are sufficient to allow the Charity to operate as Greater Manchester Youth Federation and have concluded that they are sufficient.

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THE GREATER MANCHESTER TRUST FOR RECREATION TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

ACHIEVEMENTS PERFORMANCE AND PUBLIC BENEFIT

Wholly Owned Assets

The Charity owns five playing fields in Manchester and Salford. All these fields are Functional Endowment Assets. No value is placed on these fields in the Fixed Assets of the Charity.

Simon Playing Fields in Didsbury is leased to a sports club, who are responsible for all the maintenance of the field. The land sits in the River Mersey flood basin. The rental is at a commercial rate and is subject to five yearly rent reviews. The sports club is an affiliated member. During Covid, the sports club had to close and had no income with which to pay the rent. We have supported them by allowing them rent free use of the premises. This has allowed them to keep all the facilities running. It is of immense importance that we support the club as they serve the sporting needs of many ages. They also do excellent work in managing the flood risk to the land from the River Mersey and during the floods of January 2021 when the land became overwhelmed by flooding they worked tirelessly to remedy the damage caused.

Duncan Matheson Playing Fields in Salford is currently used by Swinton Football Club on an annual basis. We have agreed a 3-year lease with Swinton FC to allow a longer term partnership to be created with us. The club is an affiliated member. Since Swinton FC took over the care and maintenance of the playing fields we have been incredibly impressed with their work. We continue to look for funds to build a club facility on the site.

Melland Playing Fields and Sports Hall are currently unused as there are insufficient users to meet the costs of maintaining the playing fields. In February 2021 the sports hall was demolished after planning permission was received allowing us to do this. It was not capable of safe or economic use and was becoming a target for vandalism. We were also being charged business rates of circa £65k p.a. which threatened to undermine our financial position.

Harry Dalton site remains unused after St Bede’s School terminated its lease 5 years ago.

Godfrey Ermen is now a designated Town and Village Green. We have recently supported the locality by mowing the field so that it is more capable of being used for informal sports.

The Trustees are now seeking to redevelop Melland and Harry Dalton. We are hoping to replace the sports hall at Melland with a new sport and community facility plus outdoor sports facility. The funds to do this will come from disposing of part of the site for residential development. Harry Dalton is more difficult to redevelop as it is a small site and not capable of hosting a full-size football pitch with associated changing rooms and parking areas. It may be that Harry Dalton is sold for redevelopment with the funds raised being put to use elsewhere for our charitable activities.

Custodian Facilities

We continue to support those clubs for whom we have taken custodian leases.

Currently we are in discussions with Jimmy Egan Boxing Academy about the best way to construct a new mezzanine floor in the building allowing for more boxers to use the club. We are working with the head landlord and associated solicitors to try and simplify the process for a licence allowing the works.

Norbrook continues to run its activities support by youth workers from a local housing association. It is a well-run facility and its trustees are chaired by our own chair, Gavin Evans.

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THE GREATER MANCHESTER TRUST FOR RECREATION TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

We have been closely involved in the renegotiation of the lease for West Denton FC. and are pleased that the new lease will be taken by them in their own name. This reflects well on their growth and development as an independent Charity.

New Development - Partington

During 2021 we received approval from Trafford MBC to take a 99 yr. lease (at a peppercorn rent) of a 1960’s purpose built youth centre in Partington that has been largely unused for 10yrs. Our consultants estimate that the cost of bringing this back to a good standard will be in the region of £500k. We have agreed with Trafford MBC that we will spend £250k from our endowment funds to carry out the first phase of work that will bring it to a useable standard. We anticipate carrying out this work in early 2022 with a view to having the centre open for use by end March 2022. We will move our head office to the building reducing our outgoings for rent. The balance of £250k is going to need to be raised from grant funding and we are in discussions with consultants about the best way of seeking and applying for such funds.

Partington is an area of deprivation and is ranked the most deprived area in Trafford. We have never previously had a presence in Trafford other than through a youth club in Partington. Our intention is to use the building as a hub for all of our activities and to run youth club and related activities from the building for as many evenings as possible. Our business planning envisages that the building and its uses will become self-sufficient in three years by offering it as premises that can be rented out at various times.

General Activities

All usual activities offered to clubs have been suspended due to Covid-19 restrictions. At the time of writing this report the restrictions have been removed but we are aware that the various lockdowns have now presented our clubs with new challenges. It is becoming increasingly difficult to find volunteers to be involved in the life of the clubs especially when they are general youth clubs and not directed towards a specific sport such as football or boxing. There are also problems working with 14+ yrs. age group who seem reluctant to engage with clubs and when they do, their behaviour can be difficult for the clubs to manage safely. As a charity we are now looking into ways that we can support our clubs and their volunteers and we may need to seek grant funding to employ youth workers capable of supporting our volunteers.

Duke of Edinburgh Award Scheme

During the course of 2020 and 2021 the Charity has been reviewing its offer to the clubs against its charitable objectives. We decided to employ a full-time member of staff with responsibility for the delivery of the Duke of Edinburgh Award scheme to our clubs. We have had great support from DofE North in both set up and delivery, providing us with free subscriptions for our young people, free training for volunteers and many different types of equipment. Our new employee, Grace Beasley, is a well-qualified outdoor pursuits leader who has delivered DofE in many locations across the world. She also has a DofE Gold Award. Grace has now established the Award Scheme in two of our clubs and is working with a third. We aim to steadily increase the number of clubs involved each year. We are also in discussion with third party organisations about delivering the Award to young people and adults who might otherwise find it difficult to access, for example, young people in care.

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THE GREATER MANCHESTER TRUST FOR RECREATION TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Ormside Mill

Another part of our review of activities has led us to a decision to invest more of time and resources into using Ormside Mill. The Trustees have decided to fund 40 nights at the Mill for our affiliated clubs during 2022/23. This will involve 2 nights away involved in outdoor based activities for 15 young people and 2 volunteers. Grace will also be present and will be available to lead on outdoor activities commensurate with her training. We believe that outdoor pursuits enable young people to build new skills, resilience, teamwork and generally have some fun. We have selected times for our visits that coincide with school holidays when young people may be most bored.

FINANCIAL REVIEW

Overview

The Charity’s main, consistent source of funding is investment income generated from its investments, together with grants from various trusts and funders, and donations from the business community and private individuals.

In the year, the Charity had net outgoing resources on unrestricted funds, (before transfers, realised and unrealised losses) of £20,744 (2020: £52,451) which reflects the Trustees willingness to commit historic reserves to supporting ongoing work. However, the Trustees are well aware of the need to increase income from other sources and reduce expenditure to enable the Charity’s work to be financially sustainable in the medium term.

Under the requirements of the Guidelines on Accounting and Reporting by Charities, the Trustees have assessed the format of financial statements and are satisfied that the appropriate systems are in place.

These procedures will be reviewed annually to ensure that they still meet the needs of the charity. Management accounts are prepared on a quarterly basis and are reviewed at each Trustee Board Meeting during the year.

Investment policy and performance

The Investment portfolio provides the basis of the reserves of the Charity, with the intention to hold these assets for the longer term. The Board of Trustees sets the investment policy for the Charity having taken advice from its investment managers, Brewin Dolphin and CCLA Investment Management Limited. In respect of Revenue funds, the Trustees have sought to maximise income to support the work of the Charity.

The investment portfolio has seen an unrealised gain of £894,537 (2020: unrealised loss of £453,642). The portfolio and other investments have generated income in dividends and interest of £105,773 (2020: £130,967). The Trustees were content with the level of return in 2020/21 having taken into account ongoing fluctuations in market performance.

The cost of managing the portfolio has been £26,041 (2020: £28,295).

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THE GREATER MANCHESTER TRUST FOR RECREATION TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Reserves

Total funds held by the Charity at the end of the accounting period stood at £4,950,083 including unrealised gains £894,537. Of these funds, £2,052,525 represents permanent endowment funds and £94,206 is restricted funds.

The Trustees continue to monitor the opportunities for investing in functional assets - such as land and buildings - in order to enhance the public benefit provided by the Charity whilst balancing the need for the investment income to support its existing activities which provide so much public benefit.

During the course of the current financial year the Charity will once again be reviewing its reserves policy given its current activities.

Transfers between Funds

At its most basic level, the term “permanent endowment” refers to property - cash, investments, and land - held by the Charity which cannot be spent as though it were income. There is a restriction on expenditure of these capital assets created by the donor to provide the Charity with a gift that will endure into the future. However, permanent endowment is not necessarily always “permanent” and The Charities Act 2006 introduced flexibility for Charities to better achieve their charitable purposes. The Trustees had previously determined that the Charity requires free reserves – unrestricted funds not invested in tangible assets or designated – of at least £3m, which would allow the Charity the freedom to further develop its long term strategic plan, deliver tangible benefit to its beneficiaries and avoid the current situation whereby the Charity has insufficient day to day funding. Following the sale of charitable land in a previous year, the Trustees applied to the Charity Commission for consent and authorisation to release £3m held in permanent endowment, setting out the reasons why the Trustees believed that it would be in the Charity’s best interest to now spend both the capital and income, and this consent was received dated 17 February 2021.

PLANS FOR THE FUTURE

The Trustees and employees have given a great amount of thought to the future of the Charity. We have changed our working name to Greater Manchester Youth Federation (as referred to in the introduction) and decided that our future is to be centred around “Supporting Aspiration. Creating Opportunities”.

We aim to create new opportunities and aspiration through:

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THE GREATER MANCHESTER TRUST FOR RECREATION TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

In the background we are also upgrading our website generally and hoping to create a members area within it to help promote cohesion amongst our affiliated clubs. We will make available a raft of policies and training for the clubs to review.

We are offering safeguarding training and first aid qualifications during 2022 for the first time ever and so far the uptake from the clubs has been superb. We aim to have safeguarding at the heart of what we and our clubs do.

Finally, we are also exploring training for our volunteers to enable them to gain youth work qualifications whilst they carry out their volunteer work with us. We think it is important to recognise the work of our volunteers and to create pathways that further their knowledge and ambitions.

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The charity Trustees are responsible for preparing a Trustees’ Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing the 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 Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. The Trustees are also responsible for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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THE GREATER MANCHESTER TRUST FOR RECREATION TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

APPROVAL

This report was approved by the Trustees on 11 January 2022 .and is signed on their behalf by:

Gavin Evans – Chair and Trustee

Daniel Jones - Trustee

11

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE GREATER MANCHESTER TRUST FOR RECREATION YEAR ENDED 31 MARCH 2021

Respective responsibilities of trustees and examiner

The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

Nicholas Baxendale FCA

For and on behalf of Donnelly Bentley Ltd Chartered Accountants Hazelmere,

70 Chorley New Road, Bolton,

BL1 4BY Date: 11 January 2022

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THE GREATER MANCHESTER TRUST FOR RECREATION

STATEMENT OF FINANCIAL ACTIVITIES (Including Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2021

Notes
INCOME AND ENDOWMENTS
Donations and legacies
2
Charitable activities
3
Other Income
4
Investments
5
TOTAL INCOME
EXPENDITURE
Raising funds
Investment management costs
6
Charitable activities
7
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE) BEFORE
GAINS/(LOSSES) ON INVESTMENTS
Net gains/(losses)
Realised gains/(losses) on investments
Unrealised gains/(losses) on investments
Realised gains on fixed assets
NET INCOME/(EXPENDITURE) BEFORE
TRANSFERS
Transfers
13
NET MOVEMENT IN FUNDS
FUND BALANCES BROUGHT FORWARD
FUND BALANCES CARRIED FORWARD		 Restricted
Endowment
Unrestricted
Funds
Fund
Total
Total
Funds
2021
2020
£
£
£
£
£
333
2,997
-
3,330
50,956
1,728
-
-
1,728
22,316
11,494
-
-
11,494
-
105,773
4
-
105,777
130,991
119,328
3,001
-
122,329
204,263
-
-
26,041
26,041
28,295
140,072
10,320
15,394
165,786
268,964
140,072
10,320
41,435
191,827
297,259
(20,744)
(7,319)
(41,435)
(69,498)
(92,996)
-
-
-
-
-
-
-
894,537
894,537
(453,642)
-
-
(13,945)
(13,945)
-
(20,744)
(7,319)
839,157
811,094
(546,638)
3,000,000
-
(3,000,000)
-
-
2,979,256
(7,319)
(2,160,843)
811,094
(546,638)
(175,904)
101,525
4,213,368
4,138,989
4,685,627
2,803,352
94,206
2,052,525
4,950,083
4,685,627

13

THE GREATER MANCHESTER TRUST FOR RECREATION BALANCE SHEET

AT 31 MARCH 2021

BALANCE SHEET
AT 31 MARCH 2021
Notes
FIXED ASSETS
Tangible Assets
9
Investments
10
CURRENT ASSETS
Debtors
11
Short term deposits
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one
year
12
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted
13
Restricted
13
Endowment
14
TOTAL FUNDS
14		 2021
£
£
136,022
4,686,848
4,822,870
45,128
56,003
37,181
138,312
11,099
127,213
4,950,083
2,803,352
94,206
2,052,525
4,950,083		 2020
£
£
104,772
3,921,352
4,026,124
56,918
46,749
46,762
150,429
37,564
112,865
4,138,989
(175,904)
101,525
4,213,368
4,138,989
4,026,124
112,865
150,429
37,564
4,138,989
(175,904)
101,525
4,213,368
4,138,989

The notes on pages 15 to 25 form part of these financial statements.

Approved by the Trustees, authorised for issue on 11 January 2022 and signed on their behalf by:-

Gavin Evans – Chair and Trustee

Daniel Jones – Trustee

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THE GREATER MANCHESTER TRUST FOR RECREATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial statements are set out below.

General information and basis of preparation

The Greater Manchester Trust for Recreation is involved in the provision and maintenance of facilities for the recreation and other leisure-time occupation of young people and adults, who are resident in the area, to help and educate them.

The registered office of the Trust is Office 317, 3rd Floor, Stockport Business Centre, Broadstone Mill, Broadstone Road, Stockport.

The Trust is governed by a scheme approved by the Charity Commission.

Basis of preparation

The financial statements have been prepared under the historic cost convention, with the exception of investments which are included at market value, and the going concern basis.

The financial statements 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Greater Manchester Trust for Recreation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

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 applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Fund accounting

General funds are available at the discretion of the Trustees in furtherance of the general objectives of the Charity. Designated funds are those set aside by the Trustees for specific purposes and may be released to general funds at their discretion. Restricted funds are funds subject to specific restrictions and conditions imposed by donors or by the purpose of the grantor other funds received. Amounts currently classed as Permanent Endowment funds are capital funds which have been given to the Charity to be held as capital and there is no automatic right to convert them to income. Although the capital must be retained for the longer term benefit of the Charity, any investment income arising from it (e.g. dividends from shares) is then available for general purposes to support the work of the Charity.

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THE GREATER MANCHESTER TRUST FOR RECREATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares and it is included when the amount can be measured reliably. Investment income is recognised as the charity’s right to receive payment is established.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Costs are defined as follows:

Costs of raising funds

Include those costs associated with attracting voluntary income and in applying for new funding and sponsorship and the costs associated with investment management.

Charitable expenditure The costs delivering the charitable activities.

All costs are allocated between expenditure categories of the SOFA on a basis designed to reflect the use of resources. Costs directly relating to a particular activity are allocated directly and other costs (support costs) are allocated on an appropriate basis to reflect the usage of resources, in line with the Trustees estimate of core staff time spent on the various activities.

The Charity is not registered for VAT and therefore all its input tax is irrecoverable. Expenditure is analysed inclusive of VAT, where this has been incurred.

16

THE GREATER MANCHESTER TRUST FOR RECREATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Grants paid

The Trust administers the Young Peoples Fund which makes grants on application, to support the activities of affiliated clubs and enable them to carry out capital improvements. Grants are accounted for in the year in which they are awarded, and the Trust does not make multiple year awards.

Pensions

The Trust operates a defined contributions pension fund for full time staff.

Fixed asset capitalisation and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Costs include costs directly attributable to making the asset capable of operating as intended.

Assets costing less than £500, and not forming part of a related series, are not capitalised but written off to revenue in the year of acquisition. Depreciation is provided on the cost of tangible fixed assets in order to write off the cost after taking account of scrap values over the expected useful lives as follows:

Tractor, plant and equipment 25% reducing balance
Freehold buildings and fencing 2% straight line
Melland sports hall 2.5%/10%/20% straight line
Furniture, fittings and equipment 20% straight line

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transactions value and subsequently measured at their settlement value.

Concessionary loans

Concessionary loans include those receivable from third parties which are interest free or below market interest rates and are made to advance charitable purposes. All such loans are measured at cost, less impairment.

Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in net gains/(losses) on investments in the SOFA if the shares are publicly traded or their fair value can be measured reliably. Other investments are measured at cost less impairment.

Funds are invested to produce the best possible financial return with an acceptable level of risk and to balance income and capital returns. The charity has appointed two professional investment management firms to manage these assets on a discretionary basis and in line with this policy. Managers are required to produce a valuation and performance report quarterly.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Cash flow statements

The Board of Management have elected to take advantage of the exemption under Update Bulletin 1 of the Charities SORP (FRS 102) not to prepare a cash flow statement.

17

THE GREATER MANCHESTER TRUST FOR RECREATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Going concern

The Trustees have reviewed the circumstances of The Greater Manchester Trust for Recreation and consider that adequate resources continue to be available to fund the activities of the charity for the foreseeable future. The Trustees are of the view that the charity is a going concern.

Significant judgements and estimates

The preparation of these financial statements require certain judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

2 DONATIONS AND LEGACIES

ONATIONS AND LEGACIES
Grants and donations for activities:
Donations
Grants
Grants Returned		 Un-
restricted
Restricted
Endow-
ment
Total
2021
Total
2020
£
£
£
£
£
333
-
-
333
215
17,164
-
17,164
50,741
-
(14,167)
-
(14,167)
-
333
2,997
-
3,330
50,956

3 INCOME FROM CHARITABLE ACTIVITIES

Playing Fields income
Income from sports for affiliated clubs
Other income
NABGC Boxing Finals		 Un-
restricted
Restricted
Endow-
ment
Total
2021
Total
2020
£
£
£
£
£
2,728
-
-
2,728
12,757
-
-
-
-
211
(1,000)
-
-
(1,000)
1,543
-
-
-
-
7,805
1,728
-
-
1,728
22,316
4
Other Income
Salford Council Covid
Grant
Job Retention Grant		 Un-
restricted
Restricted
Endow-
ment
Total
2021
Total
2020
£
£
£
£
£
10,000
-
-
10,000
-
1,494
-
-
1,494
-
11,494
-
-
11,494
-

18

THE GREATER MANCHESTER TRUST FOR RECREATION NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

5
INVESTMENT INCOME
Bank and other interest
Income from UK
Investments		 Un-
restricted
Restricted
Endow-
ment
Total
2021
Total
2020
£
£
£
£
£
41
4
-
45
471
105,732
-
-
105,732
130,520
105,773
4
-
105,777
130,991

Allocated to restricted funds as follows:

Allocated to restricted funds as follows:
Fund
J G for
Buckley Young Total Total
Fund People 2021 2020
£ £ £ £
Bank and other interest 4 - 4 24
Income from UK investments - - - -
4 - 4 24
6
INVESTMENT MANAGEMENT COSTS
Investment fund management costs		 Un-
restricted
Restricted
Endowment
Total
2021
Total
2020
£
£
£
£
£
-
-
26,041
26,041
28,295
-
-
26,041
26,041
28,295

19

THE GREATER MANCHESTER TRUST FOR RECREATION NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

7

Activities, Fields, Grants etc
Cost of Activities
Field Maintenance/Repairs/ Equip Repairs
NABGC Boxing Finals Expense
Grants, Projects, Exchange Trip
Staff Costs
Admin. Salaries
Wages - Melland
Wages - Duncan Matheson
Employers Pension
Training Costs
Establishment Costs
Rent and Rates
Premises Insurance
Heat and Light
Repairs and Renewals
Travelling Costs
Motoring Expenses
Travelling
Financial
Accountancy
Professional Fees
Bank Charges
Consultancy
Professional Fees Capitalised
Other Costs
Printing and Postage
Software
Stationery and Adverts
Telephone
Miscellaneous Expenses
Subscriptions
Insurance
Depreciation
Total Charitable Activities Costs
Raising Funds
Investment Mgt Costs
TOTAL EXPENDITURE		 Total
Total
Un-
restricted
Restricted
Endow-
ment
2021
2020
£
£
£
£
£
405
2,930
-
3,335
6,488
-
17,257
-
7,644
7,390
-
7,390
46,220
405
10,320
-
10,725
77,609
94,355
-
-
94,355
73,644
-
- -
-
9,645
-
- -
-
1,072
5,937
- -
5,937
5,411
(387)
-
-
(387)
984
99,905
-
99,905
90,756
(17,812)
- -
(17,812)
42,629
1,444
- -
1,444
1,446
183
- -
183
1,178
4,956
- -
4,956
-
(11,229)
-
-
(11,229)
45,253
229
- -
229
3,071
40
- -
40
1,691
269
-
-
269
4,762
7,070
-
-
7,070
6,034
32,748
-
18,726
51,474
16,136
108
-
-
108
121
1,080
-
9,720
10,800
13,500
-
-
(18,726)
(18,726)
-
41,006
-
9,720
50,726
35,791
111
-
-
111
626
1,365
-
-
1,365
570
2,822
-
-
2,822
1,341
2,379
-
-
2,379
1,939
135
-
-
135
265
882
-
-
882
1,877
3,210
-
-
3,210
3,383
(1,188)
-
5,674
4,486
4,792
9,716
-
5,674
15,390
14,793
140,072
10,320
15,394
165,786
268,964
-
-
-
26,041
26,041
28,295
140,072
10,320
41,435
191,827
297,259

Any expenses incurred in the administration, or protection, of endowment investments are charged to capital.

20

THE GREATER MANCHESTER TRUST FOR RECREATION NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

8
EMPLOYMENT COSTS
Salaries
Employer pension contributions
Social Security costs
Redundancy Costs		 2021
£
66,148
5,937
2,707
25,500
100,004		 2020
£
79,884
5,411
4,476
-
89,771

No trustees, who are the only key management personnel, received any remuneration for their services.

No trustees received reimbursed expenses from the Trust.

No employees received total employee benefits of more than £60,000.

There were no outstanding or prepaid pension contributions at the balance sheet date.

The average number of employees, some of whom are part time, was as follows:-

Raising funds
Direct charitable		 2021
Number
-
3
3		 2020
Number
-
4
4

9 TANGIBLE FIXED ASSETS

Cost
As at 1 April 2020
Additions
Capitalised expenditure
Disposals
As at 31 March 2021
Depreciation
As at 1 April 2019
Provided
Disposals
As at 31 March 2021
Net Book Value
As at 31 March 2021
As at 31 March 2020		 Other
assets
Melland
Sports
Hall /
Land
Plant &
Equipment
Furniture
fixtures &
Equipment
Motor
Vehicles
Total
£
£
£
£
£
£
79,293
197,115
35,845
10,434
15,117
337,804
-
30,047
-
909
-
30,956
18,726
-
-
-
-
18,726
-
(197,115)
-
-
-
(197,115)
98,019
30,047
35,845
11,343
15,117
190,371
-
179,411
34,104
2,511
15,117
231,143
-
1,869
348
2,269
-
4,486
-
(182,170)
-
-
-
(182,170)
-
-
34,452
4,780
15,117
53,459
98,019
30,047
1,393
6,563
-
136,022
79,294
15,815
1,741
7,923
-
104,772

21

THE GREATER MANCHESTER TRUST FOR RECREATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9 TANGIBLE FIXED ASSETS (continued)

Where the Charity acts as custodian Trustee the properties are not included in the accounts.

The Charity also owns the following playing fields which were conveyed to it on the dates shown, although there are no records of the original values at the dates of conveyance.

The Trustees do not consider that the fields have any significant value as yet, given the strict land use restrictions placed upon them.

10 FIXED ASSET INVESTMENTS

10
FIXED ASSET INVESTMENTS
Unrestricted
Restricted
Endowment
£
£
£
As at 31 March 2020
-
-
3,921,352
Quoted investments
As at 1 April 2020
-
-
3,813,852
Net movements
-
-
(129,040)
Net realised gains
-
-
894,537
Net unrealised losses
-
-
-
As at 31 March 2021
-
-
4,579,349
Other investments
Long term loan to Ormside Mill
Residential Centre b/f and c/f
-
-
107,500
-
-
107,500
As at 31 March 2021
-
-
4,686,848
2021
11
DEBTORS
£
Income receivable
-
Prepayments
5,128
Concessionary Loan to Barton Athletic Club
40,000
45,128		 Unrestricted
Restricted
Endowment
£
£
£
-
-
3,921,352		 Total
£
3,921,352
3,813,852
(129,040)
894,537
-
4,579,349
107,500
107,500
4,686,848
2020
£
1374
15,544
40,000
-

-

-

-
 -
3,813,852
-
(129,040)
-
894,537
-
-
-
 -
4,579,349
-
 -
107,500
-
 -
107,500
-
 -
4,686,848
2021
£
-
5,128
40,000
45,128
56,918

22

THE GREATER MANCHESTER TRUST FOR RECREATION NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

12
CREDITORS: falling due within one year
Trade creditors
Accruals and deferred income
Other taxes and social security		 2021
£
2,111
7,409
1,579
11,099		 2020
£
31,222
5,175
1,167
37,564

13 STATEMENT OF FUNDS

Unrestricted
Funds:
General fund
Restricted Funds:
J G Buckley
Fund for Young
People
Grants
Endowment
Funds:
Endowment
Total Funds		 Balance
01/04/20
Net
Income
Expenditure
Gains/
Losses
Transfers
Balance
31/03/21
£
£
£
£
£
£
(175,904)
119,328
(140,072)
-
3,000,000
2,803,352
(175,904)
119,328
(140,072)
-
3,000,000
2,803,352
3,862
4
-
-
-
3,866
62,492
-
-
-
-
62,492
35,171
3,001
(10,320)
-
-
27,848
101,525
3,001
(10,320)
-
-
94,206
4,213,368
-
(41,435)
880,592
(3,000,000)
2,052,525
4,138,989
122,329
(191,827)
(880,592)
-
4,950,083

Transfers between Funds

At its most basic level, the term “permanent endowment” refers to property - cash, investments, and land - held by the Charity which cannot be spent as though it were income. There is a restriction on expenditure of these capital assets created by the donor to provide the Charity with a gift that will endure into the future. However, permanent endowment is not necessarily always “permanent” and The Charities Act 2006 introduced flexibility for Charities to better achieve their charitable purposes. The Trustees had previously determined that the Charity requires free reserves – unrestricted funds not invested in tangible assets or designated – of at least £3m, which would allow the Charity the freedom to further develop its long term strategic plan, deliver tangible benefit to its beneficiaries and avoid the current situation whereby the Charity has insufficient day to day funding. Following the sale of charitable land in a previous year, the Trustees applied to the Charity Commission for consent and authorisation to release £3m held in permanent endowment, setting out the reasons why the Trustees believed that it would be in the Charity’s best interest to now spend both the capital and income, and this consent was received dated 17 February 2021.

23

THE GREATER MANCHESTER TRUST FOR RECREATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31 March 2021 are represented by:-

Fixed assets
Investments
Net current
assets		 Un-
restricted
Funds
£
7,956
-
2,795,396
2,803,352		 J G
Buckley
Fund
Fund
for
Young
People
Other
Restricted
£
£
£
-
-
-
-
-
-
3,866
62,492
27,848
3,866
62,492
27,848		 Endow-
ment
funds
£
128,066
4,686,848
(2,762,389)
2,052,525		 Total
£
136,022
4,686,848
127,213
4,950,083

Restricted funds

J G Buckley Fund

Created in memory of a former Chief Executive to provide bursaries for young people in education. No applications were received in the year.

Fund for Young People The fund provides grant support to affiliated clubs to support their activities and to enable them to carry out capital works. It also supports the work of the Charity. Grants are made by the Trustees through a formal application process.

Endowment Fund

The amount currently classed as endowment fund was created by the sale of Christie Fields and section of Melland Playing Field. The income is available to support the general activities of the Charity and the capital may be used for the purchase and renovation of other land and buildings for charitable activities.

15 TAXATION

The Trust is a registered Charity and is entitled to claim annual exemption from UK Corporation Tax, under sections 466 to 493 of the Corporation Tax Act 2011.

24

THE GREATER MANCHESTER TRUST FOR RECREATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16 CONTINGENT LIABILITIES

The Charity, or its wholly owned subsidiary company Greater Manchester Federation of Boys Clubs, acts as custodian Trustee for the following organisations, segregating such assets from its own.

Should any of these organisations fail to meet their obligations under the leases the ultimate responsibility would lie with the Charity.

Norbrook Youth Club, Garthorp Road, Northern Moor, Manchester.

In August 2005 The Greater Manchester Trust for Recreation entered into a 125-year lease with Manchester City Council, Greater Manchester Passenger Transport Executive and Norbrook Youth Club.

Haughton Green Young People’s Centre, Lancaster Road, Denton, Tameside.

In February 1998 Greater Manchester Federation of Boys Clubs entered into a 40-year lease with Tameside Metropolitan Borough Council on behalf of the club.

Whitemoss Club for Young People, Southdown Crescent, Blackley, Manchester.

In February 2020 The Greater Manchester Trust for Recreation entered into a 25-year lease with Manchester City Council on behalf of the club.

West End Amateur Football Club, Windsor Road, Denton, Tameside.

In June 2000 Greater Manchester Federation of Boys Clubs entered into a 21-year lease with Tameside Metropolitan Borough Council on behalf of the club. The lease is in the process of being renewed directly with Tameside Metropolitan Borough Council and West End Amateur Football Club.

Jimmy Egans Boxing Academy, Kings Mission Church, Royalthorn Drive, Wythenshawe, Manchester. In June 2008 The Greater Manchester Trust for Recreation entered into a 99-year tenant repairing lease to rent the premises in Wythenshawe known as Kings Mission Church from Willow Park Housing Trust to provide a home for the Boxing Club, an affiliated organisation, at an initial premium of £25,000 and thereafter at a peppercorn rent for 25 years. The lease and its terms have been passed on to the Boxing Club in a lease of 25 years.

25