Erewash Indoor Bowls Centre - Charities report - 21.2

REGISTERED COMPANY NUMBER: 09931923 (England and Wales)

REGISTERED CHARITY NUMBER: 1165757

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2021

FOR

EREWASH INDOOR BOWLS CENTRE

Page

Report of the Trustees

1

to

3

Report of the Independent Auditors

4

to

6

Statement of Financial Activities

7

Balance Sheet

8

Notes to the Financial Statements

9

to

15

The Trustees present their report and the audited financial statements of the charity for the year ended 31 May 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's governing document, 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 United Kingdom and Republic of Ireland published in October 2019.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects of the charity are:

- the promotion of community participation in healthy recreation for the benefit of the inhabitants of the area of benefit in particular by the provision of facilities for the playing of indoor bowls; and

- to provide or assist in the provision of facilities in the interests of social welfare for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age infirmity or disability, financial hardship or social circumstances with the object of improving their conditions of life.

The charity provides premises and facilities for leisure and the advancement of indoor bowling for all age groups.

Significant activities

At the beginning of the year, we were unable to open the Centre until Lockdown eased in mid-August. John Arnett immediately set about contacting team captains to see if their teams would be playing in the winter league program. We were able to run most leagues but only as a triples format.

The year progressed until early November when once again we were forced to close for the rest of the financial year.

We have been fortunate enough to receive the Government Small Business grants amounting to a total of approximately £25000 and a further £5000 from Sport England in this financial year. Hiscox our insurers have agreed a one-off payment of £25000 for business interruption insurance cover held by us during the Pandemic. Staff have been furloughed and so wage costs have been reduced. There have been a number of repairs carried out during the closed season these included upgraded fire alarm system and emergency lighting, heating system pump replacement and many smaller repairs.

On reading the accounts you will observe the position looks stable once again, but consideration must be given to the fact we have had very little income from our bowling rinks. Our main income stream this year apart from grants has been through subscriptions and the result of our successful application for gift aid.

At the time of writing, we await to see how many people will return to Bowls during the winter months and will we be able to return to our usual format of fours thus increasing the possibility of a greater income.

Our report would not be complete without a mention of the great fundraising work carried out during the year and donations made by several members past and present.

Finally, our thanks must go to John and his team for their sterling work in making the center the unique facility it has become and to the Trustees and Bowls Committee for the work they do on your behalf.

Public benefit

The Charity's activities are undertaken to further its purposes for the public benefit and the trustees have had regard to the Charity Commission's guidance on public benefit.

FINANCIAL REVIEW

Reserves policy

The Trustees consider that a reserves policy of £20,000 is appropriate to equate broadly to two months normal running costs. It is considered that future cash flows and bank balances will be adequate to achieve this. The unrestricted reserves (net current assets) at 31 May 2021 are £73,989.

FUTURE PLANS

The Trustees have reviewed the impact of coronavirus on the future trading of the charity and are happy that the centre can continue to operate for the foreseeable future.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated 30 December 2015 together with related bye laws.

Recruitment and appointment of new trustees

Trustees are appointed by ordinary resolution of the Charity members and are selected for their skills and personal qualities appropriate to the aims and objectives of the Charity.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

09931923 (England and Wales)

Registered Charity number

1165757

Registered office

29 Arboretum Street

Nottingham

NG1 4JA

Principal address

Grange Park

Station Road

Long Eaton

Nottinghamshire

NG10 2EE

Trustees

Mrs C Chisholm (resigned 7.10.20)

R Cowell

D A Eite

Mrs A Hewitt

Mrs S O Jordan-Smith

K Soundy

Mrs N A Hazzledine

Mrs L E Fryatt Director (appointed 7.10.20)

Company Secretary

K Soundy

Auditors

Lemans

Statutory Auditor

29 Arboretum Street

Nottingham

Nottinghamshire

NG1 4JA

Bankers

NatWest Plc

Long Eaton

Nottingham

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also directors of Erewash Indoor Bowls Centre 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 these financial statements, the trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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:

- there is no relevant audit information of which the charitable company's auditor is unaware; and

- 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 auditor is aware of that information.

AUDITORS

The auditors, Lemans, 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 10 August 2021 and signed on its behalf by:

R Cowell - Trustee

Opinion

We have audited the financial statements of Erewash Indoor Bowls Centre (the 'charitable company') for the year ended 31 May 2021 which comprise the Statement of Financial Activities, the Balance Sheet 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:

-	give a true and fair view of the state of the charitable company's affairs as at 31 May 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	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:

-	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

-	the Report of the Trustees has been prepared in accordance with applicable legal requirements.

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:

-	adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of trustees' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	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.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Exercise professional judgment and maintain professional scepticism throughout the planning and performance of the audit;

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion;

- Obtain an understanding of the internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity's internal control;

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;

- Make enquiries of management and those charged with governance of any instances of non-compliance with laws and regulations and of any actual and potential litigation and claims;

- Review financial statement disclosures to supporting documentation to assess compliance with applicable laws and regulations

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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.

Karen Mealand (Senior Statutory Auditor)

for and on behalf of Lemans

Statutory Auditor

29 Arboretum Street

Nottingham

Nottinghamshire

NG1 4JA

11 August 2021

31.5.21

31.5.20

Unrestricted

Total

fund

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

3

104,720

57,968

Other trading activities

4

31,530

144,400

Total

136,250

202,368

EXPENDITURE ON

Charitable activities

General

116,339

167,463

NET INCOME

19,911

34,905

RECONCILIATION OF FUNDS

Total funds brought forward

569,907

535,002

TOTAL FUNDS CARRIED FORWARD

589,818

569,907

31.5.21

31.5.20

Unrestricted

Total

fund

funds

Notes

£

£

FIXED ASSETS

Tangible assets

9

582,421

596,680

Investments

10

36

36

582,457

596,716

CURRENT ASSETS

Debtors

11

29,926

12,661

Cash at bank and in hand

66,584

69,206

96,510

81,867

CREDITORS

Amounts falling due within one year

12

(22,521

)

(28,644

)

NET CURRENT ASSETS

73,989

53,223

TOTAL ASSETS LESS CURRENT LIABILITIES

656,446

649,939

CREDITORS

Amounts falling due after more than one year

13

(66,628

)

(80,032

)

NET ASSETS

589,818

569,907

FUNDS

17

Unrestricted funds

589,818

569,907

TOTAL FUNDS

589,818

569,907

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 10 August 2021 and were signed on its behalf by:

R Cowell - Trustee

S O Jordan-Smith - Trustee

1.	STATUTORY INFORMATION

Erewash Indoor Bowls Centre is a company limited by guarantee, registered in England and Wales. The company's registered number and registered office address can be found in the Report of the Trustees.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The charity constitutes a public benefit entity as defined by FRS 102. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Income

All income is recognised in the Statement of Financial Activities once the charity has legal entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Property improvements

-

2% on cost

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

33% on cost

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.

Hire purchase and leasing commitments

Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Debtors and creditors

Debtors and creditors receivable or payable within one year are recorded at transaction price.

Fixed asset investments

Fixed asset investments relate to the shares held in Erewash Indoor Bowling Club Ltd.

Cash at Bank

The charity holds sufficient funds in order to meet its short-term cash commitments as they fall due.

3.	DONATIONS AND LEGACIES

The charity has received the following government grants in connection with the Coronavirus, which have been included in grants received:

Small Business Interruption grant

2,950

Furlough scheme

23,144

Lockdown grant

2,000

Start up grant

12,000

Business support grant

3,143

Erewash Borough Council

9,357

52,594

4.	OTHER TRADING ACTIVITIES

31.5.21

31.5.20

£

£

Fundraising events

937

3,399

Rink fees

10,206

106,521

League fees

480

2,584

Club competition entry fees

-

614

National competition entry fees

-

290

Guest fees

7

26

Membership fees

18,721

27,224

Door fobs

(35

)

95

Locker keys

725

2,475

Sales (not bar)

83

840

Miscellaneous income

56

187

Room Hire

350

145

31,530

144,400

5.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.5.21

31.5.20

£

£

Auditors' remuneration

1,080

1,080

Depreciation - owned assets

16,691

16,602

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 May 2021 nor for the year ended 31 May 2020.

Trustees' expenses

Travelling and telephone expenses of £100 (2020 - £400) were paid to one Trustee during the year.

7.	STAFF COSTS

The average monthly number of employees during the year was as follows:

31.5.21

31.5.20

Employees

6

5

No employees received emoluments in excess of £60,000.

8.	PENSION COMMITMENTS

The charity operates a defined contribution scheme. The assets are managed independently of the charity and contributions are charged to the Statement of Financial Activities in the period they are made. The charge for the year was £1,300 (2020 - £1,300).

9.	TANGIBLE FIXED ASSETS

Fixtures

Property

and

Computer

improvements

fittings

equipment

Totals

£

£

£

£

COST

At 1 June 2020

623,806

42,277

1,225

667,308

Additions

-

2,000

432

2,432

At 31 May 2021

623,806

44,277

1,657

669,740

DEPRECIATION

At 1 June 2020

49,904

19,836

888

70,628

Charge for year

12,477

3,667

547

16,691

At 31 May 2021

62,381

23,503

1,435

87,319

NET BOOK VALUE

At 31 May 2021

561,425

20,774

222

582,421

At 31 May 2020

573,902

22,441

337

596,680

The charity leases the land from Erewash Borough Council under a 99 year lease dated 11 August 1982 and a supplemental lease dated 11 March 1999, the rent for which is renegotiated every 5 years.

The cost above relates to the building of the club facilities from which the centre operates.

10.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST LESS IMPAIRMENT

At 1 June 2020 and 31 May 2021

36

NET BOOK VALUE

At 31 May 2021

36

At 31 May 2020

36

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:

Erewash Indoor Bowling Club Limited (Reg. No.01641261)

Registered office: 29 Arboretum Street, Nottingham, NG1 4JA

Nature of business: provision of beverages and catering

%

Class of share:

holding

Ordinary

100

31.5.21

31.5.20

£

£

Aggregate capital and reserves

7,012

9,203

Loss for the year

(2,191

)

(706

)

11.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.21

31.5.20

£

£

Amount owed by group

undertaking

3,355

8,687

Other debtors

26,571

3,974

29,926

12,661

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.21

31.5.20

£

£

Bank loans and overdrafts (see note 14)

13,495

13,495

Other loans (see note 14)

-

8,279

Trade creditors

1,844

782

Social security and other taxes

-

637

Accrued expenses

7,182

5,451

22,521

28,644

13.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.5.21

31.5.20

£

£

Bank loans (see note 14)

66,628

80,032

14.

LOANS

An analysis of the maturity of loans is given below:

31.5.21

31.5.20

£

£

Amounts falling due within one year on demand:

Bank loans

13,495

13,495

Members Loans

-

8,279

13,495

21,774

Amounts falling between one and two years:

Bank loans - 1-2 years

14,103

14,103

Amounts falling due between two and five years:

Bank loans - 2-5 years

46,233

46,233

Amounts falling due in more than five years:

Repayable by instalments:

Bank loans more 5 yr by instal

6,292

19,696

15.	LEASING AGREEMENTS

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

31.5.21

31.5.20

£

£

Within one year

3,675

13,500

Between one and five years

439

2,250

4,114

15,750

16.	SECURED DEBTS

The following secured debts are included within creditors:

31.5.21

31.5.20

£

£

Bank loans

80,123

93,527

The bank loan is secured by a legal charge over the Charity's property and fixtures at Grange Park, Long Eaton, Nottingham.

17.	MOVEMENT IN FUNDS

Net

movement

At

At 1.6.20

in funds

31.5.21

£

£

£

Unrestricted funds

General fund

569,907

19,911

589,818

TOTAL FUNDS

569,907

19,911

589,818

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

136,250

(116,339

)

19,911

TOTAL FUNDS

136,250

(116,339

)

19,911

Comparatives for movement in funds

Net

movement

At

At 1.6.19

in funds

31.5.20

£

£

£

Unrestricted funds

General fund

535,002

34,905

569,907

TOTAL FUNDS

535,002

34,905

569,907

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

202,368

(167,463

)

34,905

TOTAL FUNDS

202,368

(167,463

)

34,905

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.6.19

in funds

31.5.21

£

£

£

Unrestricted funds

General fund

535,002

54,816

589,818

TOTAL FUNDS

535,002

54,816

589,818

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

338,618

(283,802

)

54,816

TOTAL FUNDS

338,618

(283,802

)

54,816

18.	RELATED PARTY DISCLOSURES

During the year donations of £nil (2020 - £14,000) were received from the Charity's subsidiary Erewash Indoor Bowling Club Ltd.

At 31 May 2021 £3,355 (2020 - £8,687) was due from the subsidiary.