TRUST BOARD MEETING - East Ayrshire Leisureeastayrshireleisure.com/media/related/pdf... · TRUST BOARD MEETING ANNUAL GENERAL MEETING ... Councillors Douglas Reid, Alan Brown and

TRUST BOARD MEETING

ANNUAL GENERAL MEETING

Date: 27 August 2015

Location: Reception Room, Grand Hall

Start time: 6pm

AGENDA

AGENDA ITEM FOR

NOTING

FOR

DISCUSSION

FOR

APPROVAL/

DECISION

1. Apologies for Absence

2. Declarations of Interest

3. Minutes of previous AGM - 19 August

2014 (page 1)

4. Annual Report and Accounts 2014/15

(pages 2-40)

5. AOCB

6. Retiral/Re-appointment of

Independent Trustees

7. Demise of office bearers

PLEASE NOTE: THE ANNUAL GENERAL MEETING IS OPEN TO THE PUBLIC

AND WILL BE ADVERTISED ON THE EAST AYRSHIRE LEISURE WEBSITE

For further information please contact: John Griffiths, Chief Executive

Email: [email protected] Tel: 01563 554710

mailto:[email protected]

Agenda Item 3

EAST AYRSHIRE LEISURE TRUST BOARD OF TRUSTEES

ANNUAL GENERAL MEETING

MINUTES OF MEETING HELD ON TUESDAY 19 AUGUST 2014 AT 1935

HOURS IN THE INGRAM ROOM, PALACE THEATRE, LONDON ROAD,

KILMARNOCK

PRESENT: Councillors Douglas Reid, Alan Brown and John McFadzean; and Independent

Trustees Jean Brown, Robin Hume, Edward Rutherford, Elizabeth Young and June Minnery;

and Alex McPhee, Executive Director of Finance and Corporate Support, East Ayrshire

Council, ex officio Trustee.

ATTENDING: John Griffiths, Chief Executive; Jackie Biggart, Central Support Manager;

Adam Geary, Cultural and Countryside Manager; and Chris Murphy, Interim Sport and

Community Venues Manager; all East Ayrshire Leisure Trust; and Lorraine Russell, Senior

Accountant and Gillian Hamilton, Democratic Services Officer, both East Ayrshire Council.

ALSO ATTENDING: Karen Jones, Scott Moncrieff.

APOLOGIES: Councillors Jim Buchanan and Neil McGhee and Elizabeth Morton, Depute

Chief Executive, East Ayrshire Council, ex officio Trustee.

CHAIR: Councillor Douglas Reid, Chair.

DECLARATIONS OF INTEREST

1. No Declarations of Interest were intimated.

ANNUAL REPORT AND ACCOUNTS 2013/14

2. There was submitted a report (copy enclosed) by the Chief Executive which presented the

Annual Accounts for 2013/14 for approval.

It was agreed:-

(i) to consider and approve the Annual Report and Accounts for 2013/14;

(ii) to note that a letter of representation required to be signed off to accompany the

accounts; and

(ii) otherwise, to note the contents of the report.

DEMISE OF OFFICE BEARERS

3. In terms of Clause 48 of the Constitution, the Chair and Vice-Chair ceased to hold office.

Under Clause 43, Councillor Douglas Reid was nominated for re-election as Chair, subject to

Clause 44. Elizabeth Young was then nominated for re-election as Vice-Chair. Both

appointments were confirmed at the AGM.

The meeting terminated at 1940 hours.

1

TRUST BOARD AGM

2014/15 REPORT AND ACCOUNTS

Date: 27 August 2015

Agenda Item: 4

Report by: John Griffiths, Chief Executive

Summary

This report presents the 2014/15 Report and Accounts for approval.

The report shows that the Trust has established sound procedures for financial management and our

external auditors, Scott-Moncrieff, are satisfied with accuracy of our accounts and the procedures that are

in place to manage our finances.

1 PURPOSE

1.1 The purpose of this report is to present the 2014/15 Report and Accounts for approval.

2 CONSIDERATIONS

2.1 East Ayrshire Leisure is required to submit its audited annual accounts to the Office of the Scottish

Charity Regulator (OSCR). Scott-Moncrieff are our External Auditors and their audit has been

produced following an intensive audit programme which required support and input from both Trust

and East Ayrshire Council staff.

2.2 The 2014/15 Report and Accounts is attached as Appendix 1. The Annual Accounts will be submitted

to OSCR once approved by the Trust Board. The report will also be published via the East Ayrshire

Leisure Website.

2.3 The Letter of Representation to accompany the accounts is attached as Appendix 2.

3 IMPLICATIONS

3.1 The approval and publication of the 2014/15 Report and Accounts report will satisfy the ongoing

requirements of OSCR and East Ayrshire Council.

Recommendation/s:

It is recommended that the Trust Board:

i. Approve the 2014/15 Report and Accounts; and

ii. Approve the Letter of Representation to accompany the accounts.

iii. Otherwise note the contents of this report.

2

TRUST BOARD AGM

Signature:

Designation: Chief Executive

Date: 6 August 2015

3

Appendix 1

East Ayrshire Leisure Trust

A Scottish Charitable Incorporated Organisation

Report and Accounts

For the year ended 31st March 2015

Charity Number SC043987

4

East Ayrshire Leisure Trust Contents

Page

Message from the Chair 1

Message from the Chief Executive 2

Scottish Charitable Incorporated Organisation Information 3

Trustees’ Report 4

Independent Auditor’s Report 11

Statement of Financial Activities 13

Balance Sheet 14

Cash Flow Statement 15

Notes to the Accounts 16

5

East Ayrshire Leisure Trust Message from the Chair

1

I have great pleasure in introducing the second Annual Report and Accounts for the East Ayrshire

Leisure Trust.

Having taken responsibility for a wide range of Leisure, Sport, Culture and Community services in July

2013, the Trust has continued to develop provision while also working with East Ayrshire Council to

support the Community Asset Transfer and Asset Rationalisation programmes. Once again, financial

performance has been strong and the Board has been able to invest in service improvements as a

result of its prudent management of resources.

Of the many events and activities provided by the Trust in 2014/15, two are perhaps the most

significant: in May 2014, Kasabian, one of the top rock bands in the world, played to a full house at the

Grand Hall, Kilmarnock and in August we welcomed the Scottish Senior Athletics Championships to

the Ayrshire Athletics Arena. In addition the Ayrshire Athletics Arena also hosted the Scottish

Athletics squad in the run up to the Commonwealth Games and the facilities were also used by

competitors from Canada and Ghana. These events show that East Ayrshire can host top class shows

and sports competitions, and we look forward to bringing more to East Ayrshire in future years.

I would like to thank the Board of Trustees and the staff teams for their continued commitment

throughout the year and also our partner organisations, including East Ayrshire Council, for their

support.

Councillor Douglas Reid

Chair, East Ayrshire Leisure Trust

6

East Ayrshire Leisure Trust Message from the Chief Executive

2

Our second year of operation has been a year of both consolidation and development. We have

continued to review our facility programmes to ensure that we meet customer expectations while

operating more efficiently. Attracting large scale events and exhibitions remains a high priority as this

brings visitors to East Ayrshire and also broadens our offer for local people.

We have continued to work with the East Ayrshire Council to support the Community Asset Transfer

and Asset Rationalisation programmes which will underpin the achievement of our financial targets in

2015/16 and beyond.

Our website (www.eastayrshireleisure.com) and new box office/bookings system are becoming

increasingly important in promoting and selling our services. Increased use of social media has also

improved our connection with customers and will be developed further in coming years.

I would like to thank the Board of Trustees and the Senior Management Team for their ongoing

support and commitment to our new organisation. I would also like to recognise and acknowledge

the efforts of all our staff who work tirelessly to deliver services across East Ayrshire and have coped

with significant change over the last two years.

John Griffiths

Chief Executive

7

http://www.eastayrshireleisure.com/

East Ayrshire Leisure Trust Scottish Charitable Incorporated Organisation Information


3

Trustees Appointment

date

Resignation

date

Partner Trustees Douglas Reid (Chair) 13th March 2013

Alan Brown 13th March 2013 25th June 2015

James Buchanan 13th March 2013 25th June 2015

Neil McGhee 13th March 2013

John McFadzean 13th March 2013 Iain Linton 25th June 2015

Eoghann MacColl 25th June 2015

Alex McPhee (ex officio) 13th March 2013

Elizabeth Morton (ex officio) 13th March 2013 31st March 2015

Independent Trustees Elizabeth Young (Vice Chair) 13th June 2013

Jean Brown 13th June 2013

Robin Hume 13th June 2013

June Minnery 13th June 2013

Eddie Rutherford 13th June 2013 Jackie Livingston 1st July 2015

Senior Management Team John Griffiths (Chief Executive)

Adam Geary (Cultural and Countryside Manager)

Chris Murphy (Sport and Community Venues Manager)

Jackie Biggart (Central Support Manager)

Dianne McGregor (Marketing and Development Manager)

Registered Office Dick Institute Telephone 01563 554710

14 Elmbank Avenue

Kilmarnock

KA1 3BU

Website www.eastayrshireleisure.com

Charity Number SC043987

Auditor Scott Moncrieff

Exchange Place 3

Semple Street

Edinburgh

EH3 8BL

Solicitors East Ayrshire Council

London Road Headquarters

Kilmarnock

KA3 7BU

Bankers Royal Bank of Scotland

8 John Finnie Street

Kilmarnock

KA1 1DD

8

http://www.eastayrshireleisure.com/

East Ayrshire Leisure Trust Trustees’ Report


4

The Trustees are pleased to present their Report and Accounts for the year ended 31st March 2015.

The accounts comply with the recommendations of the Statement of Recommended Practice

Accounting, and Reporting by Charities and current statutory requirements.

Structure, Governance and Management

Charitable Status

East Ayrshire Leisure is a Scottish Charitable Incorporated Organisation (SCIO) governed by its

constitution and has charitable status under the Charities and Trustee Investment (Scotland) Act 2005

and its Scottish Charity Number is SC043987. The SCIO was recognised by the Office of the Scottish

Charity Regulator (OSCR) on 2nd May 2013. The SCIO commenced trading on 1st July 2013.

Governing Document

The East Ayrshire Leisure Trust Constitution was approved by the Board of Trustees on 13th March

2013.

Trustee Recruitment and Appointment

There are 13 Trustees of which 6 are Independent Trustees (1 of which is a Trade Union nominee) 5

are Councillors nominated by East Ayrshire Council, and 2 are Executive Directors of East Ayrshire

Council (who have no voting rights at Board meetings). An Independent Trustee post which remained

vacant throughout 2014/15, was filled on 1st July 2015. An Executive Director Trustee position has

been vacant since 31st March 2015.

At the conclusion of the second AGM and each AGM occurring on every consecutive second year, 3

out of 6 Independent Trustees shall retire from office but may then be re-appointed. The Trustees

to reapply would consist of those who have been longest in office.

A Trustee appointed by East Ayrshire Council who has served for a period of 6 years shall retire from

office at the AGM which followed the end of the 6 year period and shall not then be eligible for

reappointment until a period of one year has elapsed.

Trustee Induction and Training

The on-going training needs of Trustees are considered by the Board from time to time and training

is made available as required. This is delivered through East Ayrshire Council’s Organisational

Development service.

Risk Management

The Board of Trustees has considered and identified the major strategic, operational and business

risks that the organisation faces and these risks are regularly reviewed by Trustees.

Indemnity Insurance

Trustee and Trust Fund Indemnity Insurance is in place with Zurich Municipal with a £5,000,000 limit

of indemnity.

9



5

Organisation Structure

The Board of Trustees met on a 6 weekly basis throughout 2014/15. The Trustees set the overall

strategy for the SCIO and monitor its performance. The Chief Executive and the Senior Management

Team are responsible for implementing the Board’s decisions.

Principal Activity

The SCIOs Principal Activity is the provision of leisure services on behalf of East Ayrshire Council in

accordance with the following charitable purposes:

1 To advance the arts, heritage, culture and science;

2 To advance public participation in sport;

3 To provide recreational facilities, and organise recreational activities with such

facilities/activities being made available to members of the public at large with the object of

improving their conditions of life;

4 To advance education;

5 To advance health;

6 To advance citizenship and/or community development (which may include the promotion of

civic responsibility, volunteering, the voluntary sector and/or the effectiveness or efficiency of

charities);

7 To relieve those in need by reason of age, ill health, disability, financial hardship or other

disadvantage; and

8 To promote, establish, operate and/or support other similar schemes and projects which

further charitable purposes;

Through the provision of services (including those entrusted to it by East Ayrshire Council), which

contribute to advancing well-being (primarily the wellbeing of residents of East Ayrshire) including (i)

the operation, management and development of galleries, museums and other facilities which provide

public access to collections of works of art, antiquities and objects of scientific interest; (ii) the

development and delivery of arts and cultural activities and events, artistic programmes, and

educational projects; (iii) the operation, management and development of libraries and provision of

library and archive services; (iv) the operation, management and development of indoor and outdoor

sports facilities (including arrangements to facilitate access to such facilities by those on lower incomes

or having special needs and to encourage wider participation in healthy exercise); (v) the development

and delivery of sports activities and events directed towards wider participation in sport; (vi) the

development and delivery of community learning and adult learning initiatives; (vii) country park and

countryside services management and (viii) the delivery of services focused on social renewal and the

needs of young people.

10



6

EAST AYRSHIRE LEISURE – WHAT WE MANAGE

CULTURE

AREA FUNCTION MAIN VENUES + FACILTIES

COLLECTION CARE + MANAGEMENT

CULTURAL DEVELOPMENT

ART GALLERY AND MUSEUM

MANAGEMENT

EXHIBITIONS + EVENTS + ENTERTAINMENT PROGRAMME

EDUCATION AND LEARNING

CONFERENCING AND CATERING

MANAGEMENT OF PALACE AND GRAND HALL COMPLEX

PUBLIC LENDING LIBRARY SERVICES

IMPRINT BOOK FESTIVAL AND

OTHER LIBRARY EVENTS

READER DEVELOPMENT - SUPPORT FOR LITERACY IN THE COMMUNITY

YOUNG PEOPLE’S SERVICES –

BOOKBUG, STORYTELLING, EVENTS.

REFERENCE AND COMMUNITY

INFORMATION SERVICES

LIFE-LONG LEARNING – FREE INTERNET ACCESS, TUTOR LED ICT

TRAINING

SPECIALIST SERVICES E.G. FOR

VISUALLY IMPAIRED

LOCAL HISTORY SERVICES AND

COLLECTIONS

GENEAOLOGY / FAMILY HISTORY RESEARCH AND SUPPORT SERVICES

CURRICULAR SUPPORT FOR

SCHOOLS

DEAN CASTLE MUSEUM

DICK INSTITUTE MUSEUM AND ART GALLERY

BAIRD MUSEUM AND ART GALLERY

DOON VALLEY MUSEUM

BURNS HOUSE MUSEUM

PALACE AND GRAND HALL COMPLEX

DICK INSTITUTE LIBRARY AND LEARNING CENTRE

18 COMMUNITY LIBRARIES

2 MOBILE LIBRARIES

SPORT


MANAGEMENT , PROMOTION AND DEVELOPMENT OF SPORTS/GAMES

HALLS

MANAGEMENT, PROMOTION AND

DEVELOPMENT OF COMMUNITY

HALLS

MANAGEMENT OF SPORT PITCHES AND PAVILIONS

MANAGEMENT, PROMOTION AND

DEVELOPMENT OF AYRSHIRE

ATHLETICS ARENA

EVENT PROMOTION

8 SPORTS/GAMES HALLS

STEWARTON SPORTS CENTRE

AYRSHIRE ATHLETICS ARENA

COMMUNITY HALLS

2 PPP LEISURE CENTRES AT ST JOSEPHS AND

GRANGE ACADEMIES

AUCHINLECK SPORTS CENTRE (DUAL USE)

LOUDOUN SPORTS CENTRE (DUAL USE)

DOON VALLEY LEISURE CENTRE SPORTS

CENTRE (DUAL USE)

11



7

EAST AYRSHIRE LEISURE – WHAT WE MANAGE

COUNTRYSIDE


COUNTRYSIDE RANGER SERVICE

COUNTRYSIDE DEVELOPMENT +

ACCESS

MANAGEMENT OF PATH NETWORK

DEAN CASTLE COUNTRY PARK MANAGEMENT

DEAN CASTLE COUNTRY PARK

CORE PATH NETWORK

RIVER AYR WAY

BUSINESS MANAGEMENT


POLICY AND STRATEGY DIRECTION

AND DEVELOPMENT

BUISNESS PLANNING

RISK MANAGEMENT

MARKETING & DEVELOPMENT


MARKETING & COMMUNICATIONS

PUBLICITY & PROMOTIONAL

ACTIVITY

CUSTOMER DEVELOPMENT

BRANDING, CORPORATE ID,

DESIGN & ADVERTISING

PRESS & PR

CUSTOMER FEEDBACK & COMPLAINTS HANDLING

MONITORING & EVALUATION

WEB DEVELOPMENT & DIGITAL

COMMUNICATIONS

MARKET RESEARCH, PERFORMANCE MONITORING & DATA ANALYSIS

SPONSORSHIP AND FUNDRAISING

THE PALACE COMPLEX (Temporary Offices)

CENTRAL SUPPORT


EA LEISURE BOARD

ADMINISTRATION & SERVICES

OSCR COMPLIANCE

FINANCIAL MANAGEMENT & BUDGET MONITORING

VAT COMPLIANCE

HR POLICY DEVELOPMENT

RECRUITMENT & DEVELOPMENT

INFORMATION MANAGEMENT &

ADMINISTRATION

HEALTH AND SAFETY POLICY

WESTERN ROAD (Temporary Offices)

12



8

Strategic Objectives

The organisation’s strategic objectives are reviewed and updated annually in the Business Plan that

requires both Board and East Ayrshire Council approval.

Financial Review

The period to 31st March 2015 was the charity’s second year of activity. In the period, East Ayrshire

Leisure reported an unrestricted surplus of £464,081.

At 31st March 2015, the FRS 17 pension valuation of the pension scheme resulted in a net pension

liability of £2,682,000 this being recognised in the Balance Sheet. The valuation has resulted in an

actuarial loss of £1,037,000 being recognised in the Statement of Financial Activities in the period. The

balance on the pension fund will change annually according to economic conditions and the trustees

will keep the position under review.

The Board is pleased that this has been a successful period of operation. Through the efforts of our

staff and effective planning coupled with the successful partnership work with the Council we have

achieved a positive financial position.

Key Figures

Budget – A significant favourable variance of £291,500 was achieved. A number of factors contributed

to this position, including: generation of income above target levels at key facilities; confirmation of

Non-Domestic Rate Relief for shared premises.

Attendances – Attendances showed some variations when compared to 2013/14: Culture and

Countryside facilities (excluding libraries) saw a reduction in total recorded attendances from

1,633,732 to 1,628,772. While the Palace Theatre/Grand Hall showed an increase in attendances,

other facilities showed reductions possibly due to competing attractions in summer 2014 such as the

Glasgow Commonwealth Games. Libraries continued to record a year on year reduction in overall

attendances and this was particularly notable where facilities were previously co-located with Local

offices which have now closed.

For Sport and Community Venues, recorded attendances at most larger facilities have continued to

increase, however, the overall figure shows a reduction of 6533 from 785,401 in 2013/14 to 778,868

in 2014/15. The figure for St Joseph’s Leisure Centre showed a reduction of over 29,000, much of

which was due to the closure of the Synthetic Grass Pitch. Other closures for maintenance and

weather related issues also contributed to a reduction in recorded attendances.

Employee absence levels remained below the target of 4% at 3.94%

In terms of external funding, Trust staff either directly secured or worked with East Ayrshire Council

to secure external funding support to a total value of £836,647.

13



9

Plans for Future Periods

Plans for the next financial year are contained in the Business Plan which is approved by the Board

prior to submission to East Ayrshire Council.

Income from East Ayrshire Council will reduce significantly over the next 2 financial years and it will

be necessary to work with the Council to rationalise the range of facilities and services provided by

the Trust. Managing this change will dominate plans for future periods.

It is imperative for the long term sustainability of the organisation that available funding matches service

delivery expectations.

Whilst working with the Council to rationalise facility and service provision the Trust will continue to

focus on the provision of high quality services for the whole community, improved marketing and

promotion, enhanced staff training and development, and ensuring that buildings are fit for purpose.

Principle Income Sources

The Trust’s principle income sources are the service payment from East Ayrshire Council and income

generated from customers using facilities. Further income is obtained from grant making bodies as

opportunities allow.

Reserves Policy

The Board agreed the organisations Financial Reserves Policy in February 2014. The policy is based

on 5% of incoming resources (£400k) as the target for unrestricted funds not committed or invested

in tangible fixed assets. This target has been achieved and the appropriate level of reserves is now in

place.

Proposals to utilise funds in excess of the agreed appropriate level were approved by the Trust Board

14 July 2015.

Equal Opportunities Policy

The Trust has adopted East Ayrshire Council’s Equal Opportunities Policy and is an organisation

committed to equal opportunities for its customers and staff.

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ annual report and the financial statements

in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom

Generally Accepted Accounting Practice).

The law applicable to charities in Scotland 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 charity and of the

incoming resources and application of resources of the charity 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;

14



10

make judgments and accounting estimates that are reasonable and prudent; and

prepare the financial statements on the going concern basis unless it is inappropriate to

presume that the charity will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable

accuracy at any time the financial position of the charity and enable them to ensure that the financial

statements comply with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities

Accounts (Scotland) Regulations 2006 (as amended) and the provisions for the charity’s constitution.

They are also responsible for safeguarding the assets of the charity and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial

information included on the charity’s website. Legislation in the United Kingdom governing the

preparation and dissemination of the financial statements may differ from legislation in other

jurisdictions.

Disclosure of Information to Auditors

To the knowledge and belief of each of the persons who are Trustees at the time the report is

approved:

So far as the Trustee is aware, there is no relevant information of which the charity’s auditor

is unaware; and

He/she has taken all the steps that he/she ought to have taken as a Trustee in order to make

himself/herself aware of any relevant audit information, and to establish that the charity’s

auditor is aware of the information.

Auditor

Following a competitive tendering process the audit was awarded to Scott-Moncrieff for a term of 2

accounting years.

Trustees’ Report

Approved by the Board on 27th August, 2015 and signed on its behalf by:

……………………………………… ………………………………………

Douglas Reid John Griffiths

Chair of the Board Chief Executive

15

East Ayrshire Leisure Trust Independent Auditor’s Report to the Trustees of East Ayrshire Leisure


11

We have audited the financial statements of East Ayrshire Leisure Trust for the period ended 31st

March 2015 which comprises the Statement of Financial Activities, Balance Sheet, Cash Flow Statement

and related notes. 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).

This report is made solely to the charity’s Trustees, as a body, in accordance with Section 44(1)(c) of

the Charities and Trustee (Scotland) Investment Act 2005 and regulations made under that Act. Our

audit work has been undertaken so that we might state to the charity’s Trustees those matters we

are required to state to them in an auditor’s 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 charity and its

Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditor

As explained more fully in the Trustees’ Responsibilities Statement set out on pages 9 and 10, the

Trustees are responsible for the preparation of the financial statements which give a true and fair view.

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment

(Scotland) Act 2005 and report in accordance with regulations made under that Act. Our

responsibility is to audit and express an opinion on the financial statements in accordance with

applicable law and International Standards on Auditing (UK and Ireland). Those standards require us

to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the Financial Reporting

Council’s web-site at www.frc.org.uk/auditscopeukprivate.

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31st March 2015 and of its

incoming resources and application of resources, 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 Charities and Trustee

Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland)

Regulations 2006 (as amended).

16

http://www.frc.org.uk/auditscopeukprivate

East Ayrshire Leisure Trust Independent Auditor’s Report to the Trustees of East Ayrshire Leisure


12

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Accounts

(Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

• the information given in the Trustees’ Annual Report is inconsistent in any material respect

with the financial statements; or

• proper accounting records have not been kept; or

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

• we have not received all the information and explanations we require for our audit.

Nick Bennett

Senior Statutory Auditor

For and on behalf of Scott-Moncrieff, Statutory Auditor

Chartered Accountants

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

Exchange Place 3

Semple Street

Edinburgh

EH3 8BL

Date:……………………….

17

East Ayrshire Leisure Trust Statement of Financial Activities


13

Notes

Operating

Fund

2015

Restricted

Funds

2015

2015

2014

£ £ £

Incoming resources

Incoming resources from generated funds:

- Voluntary income 2 56,720 - 56,720 -

- Investment income 3,523 - 3,523 1,911

─────── ─────── ─────── ─────── 60,243 - 60,243 1,911

Incoming resources from charitable

activities:

- Management service fee 2 6,109,380 - 6,109,380 4,520,514

- Provision of facilities and services 2 2,203,987 111,048 2,315,035 1,562,923

- Other finance income 8 122,000 - 122,000 72,000

─────── ─────── ─────── ─────── 8,435,367 111,048 8,546,415 6,155,437

─────── ─────── ─────── ─────── Total incoming resources 8,495,610 111,048 8,606,658 6,157,348

─────── ─────── ─────── ─────── Resources expended

Charitable expenditure 3,4 8,020,464 128,102 8,148,566 5,836,376

Governance costs 5 11,065 - 11,065 11,850

─────── ─────── ─────── ─────── Total resources expended 8,031,529 128,102 8,159,631 5,848,226

─────── ─────── ─────── ───────

Net movement in funds 464,081 (17,054) 447,027 309,122

Opening net pension asset 8 - - - 167,000

Actuarial gain/(loss) on retirement scheme 8 (1,037,000) - (1,037,000) (1,683,000)

─────── ─────── ─────── ─────── Net movement in funds after

retirement benefit scheme

(572,919) (17,054) (589,973) (1,206,878)

─────── ─────── ─────── ───────

Fund balances at 1st April 2014 (1,302,341) 95,463 (1,206,878) -

─────── ─────── ─────── ─────── Fund balances at 31st March 2015 (1,875,260) 78,409 (1,796,851) (1,206,878)

═══════ ═══════ ═══════ ═══════

None of the charity’s activities were acquired or discontinued during the above period. The notes on

pages 16 to 30 form part of these financial statements.

18

East Ayrshire Leisure Trust Balance Sheet

As at 31st March 2015

14

Notes 2015 2014

£ £

Fixed assets

Tangible assets 9 17,440 0

Heritage assets 10 34,920 0

Current assets

Stocks and work in progress 11 8,047 0

Debtors 12 1,154,705 1,008,842

Cash at bank and in hand 1,540,538 1,212,287

─────── ───────

2,703,290 2,221,129

Creditors: Amounts falling

due within one year

13

(1,870,501)

(1,923,007)

─────── ───────

Net current assets 832,789 298,122

─────── ─────── Total assets less current

liabilities excluding retirement

benefit scheme

885,149 298,122

Retirement benefit scheme

deficit

8 (2,682,000) (1,505,000)

─────── ─────── Net assets including

retirement benefit scheme

deficit

(1,796,851)

(1,206,878)

══════ ══════

Funds – Unrestricted

14 (1,875,260) (1,302,341)

Funds - Restricted 14 78,409 95,463

─────── ─────── Funds (1,796,851) (1,206,878)

═══════ ═══════

The notes on pages 16 to 30 form part of these financial statements

19

East Ayrshire Leisure Trust Cash flow statement


15

Notes 2015 2014

£ £

Cash Flow Statement

Net cash inflow (outflow) from operating

activities

15 381,448 1,212,287

Returns on investment and servicing of finance 3,523 -

Donated fixed assets/heritage assets (56,720) -

─────── ─────── Increase/(decrease) in cash 328,251 1,212,287

Opening Balance 1,212,287 -

─────── ───────

Net funds at 31st March 2015 1,540,538 1,212,287

═══════ ═══════

The financial statements were authorised for issue by the Board on …………………………………….

……………………………………………… ………………………………………………

Douglas Reid John Griffiths

Chair of the Board Chief Executive

20

East Ayrshire Leisure Trust Notes to the Financial Statements


16

1. Accounting Policies

Basis of accounting

The financial statements have been prepared under the historical cost convention and in accordance

with applicable accounting standards in the United Kingdom and Statement of Recommended Practice

–Accounting and Reporting by Charities (SORP 2005).

Incoming resources

Income from leisure, cultural and related activity is recognised in the period in which the charity is

entitled to receipt and the amount can be measured with reasonable certainty. Income is deferred

only when the charity has to fulfil conditions before becoming entitled to it.

Revenue grants, including those from government, are recognised in the Statement of Financial

Activities (SoFA) in the period in which the charity is entitled to receipt and the amount can be

measured with reasonable certainty. Such income is deferred when the charity has to fulfil conditions

before becoming entitled to it.

Management fees and other incoming resources are recognised in the period to which they relate.

Investment income is recognised in the period in which it is receivable.

Tangible Fixed Assets and Depreciation

It is the policy of the charity to capitalise expenditure of a capital nature in excess of £5,000.

Assets donated to the charity are included in the Balance Sheet and Statement of Financial Activities

at cost.

Depreciation is charged to write off the cost less the estimated residual value of fixed assets by equal

instalments over their estimated useful lives as follows:

Furniture and equipment: 5 years

Heritage Assets

Heritage Assets includes tangible fixed assets which are of historic, artistic or scientific importance

that are held to advance preservation and conservation objectives of the charity. Heritage Assets are

presented separately in the Balance Sheet from other Tangible Fixed Assets. Heritage Assets are

reported at cost. Depreciation has not been provided on heritage assets due to these assets having

indefinite long useful lives.

Lease commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities as incurred.

Stock

Stocks are valued at the lower of cost and net realisable value in the ordinary course of activities.

Net realisable value is based on estimated selling price less further costs to completion and disposal.

21



17

Pensions

The charity participates in a defined benefit scheme in respect of its employees. The assets of the

scheme are held in external funds managed by professional investment managers.

In accordance with ‘FRS 17 – Retirement Benefits’, the operating and financing costs of pension and

post retirement schemes (determined by a qualified actuary) are recognised separately in the

Statement of Financial Activities. Service costs are systematically spread over the service lives of the

employees and financing costs are recognised in the period in which they arise.

The difference between the actual and expected returns on assets during the period, and changes in

the actuarial assumptions, are also recognised in the Statement of Financial Activities.

VAT

The charity is partially exempt from VAT. Irrecoverable VAT is charged to the Statement of Financial

Activities as an expense.

Unrestricted funds

Surplus revenue funds held within unrestricted funds are carried forward to meet the cost of future

activities mainly of a revenue nature.

Commitments for specific activities and needs in the future are dealt with by making allocations to

designated funds.

Restricted funds

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which

meets these criteria is charged to the appropriate fund, together with a fair allocation of management

support costs where this is considered appropriate.

Expenditure recognition and allocation of expenditure

Expenditure is recognised when a liability is incurred.

Where possible, expenditure has been charged direct to charitable expenditure or governance cost.

Where this is not possible the expenditure is allocated on the basis of time spent by staff on each

activity.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and

services for its beneficiaries. Governance costs include those costs associated with meeting the

constitutional and statutory requirements of the charity and include the audit fees.

Taxation

The company has charitable status and is therefore exempt from taxation under Sections 466 to 493

Corporation Tax Act 2010 (CTA 2010).

22



18

Going concern

The financial statements have been prepared on the basis of accounting policies that are consistent

with the treatment of the charity as a going concern. The current funding agreement with East

Ayrshire Council covers up to the 31 March 2017. In the Trustee’s opinion, the charity will be able

to continue for the foreseeable future. East Ayrshire Leisure participates in a defined benefit

retirement scheme, excluding the deficit on this scheme (£2,682,000), the charity reported

unrestricted funds of £806,740.

2. Incoming resources

A management service fee of £6,109,380 was received from East Ayrshire Council for the year

(£4,520,514 for the period to 31st March 2014).

Following the 2014 Commonwealth Games, the Trust received donated assets to the value of

£21,800. These have been recognised as voluntary income in the Statement of Financial Activities.

The Trust also received donations from a number of sources towards the purchase of the Eglinton

Statue (£34,920 note 10).

Income from the provision of facilities and services is as follows:

2015 2015 2015

Operating

Fund

Restricted

Fund

Total

For the

period 2nd

May to

31st March

2014

£ £ £ £

Pay & Play 1,431,171 64,489 1,495,660 878,455

Facility Hire 367,316 - 367,316 256,773

Season Tickets 147,019 - 147,019 105,938

Grants and Donations 24,895 46,069 70,964 181,319

Library Income 53,111 - 53,111 44,383

Catering/Bar/Vending 93,359 - 93,359 37,769

Rental Income 32,657 - 32,657 33,061

Sales 29,154 - 29,154 15,022

Miscellaneous – Youth Theatre 22,051 490 22,541 10,203

Miscellaneous 95 - 95 -

Memberships 3,159 - 3,159

─────── ─────── ────── ────── Total income from provision of

facilities and services 2,203,987 111,048 2,315,035 1,562,923

═══════ ═══════ ══════ ══════

23



19

3. Charitable expenditure

Chief Executive

& Central Support

Marketing & Development

Cultural &

Countryside

Sport &

Community Venues Projects Total

For period 2nd May to

31st March 2014

£ £ £ £ £ £ £

Employee

costs 704,106 200,215 2,553,410 2,120,390 0 5,578,121 4,017,249

Property costs 7,427 0 323,591 569,542 0 900,560 824,526

Supplies and

Services 95,087 127,148 769,704 275,166 121,217 1,388,322 792,662

Transport

Costs 228 0 32,134 29,916 6,885 69,163 42,638

Support

Services 212,400 0 0 0 0 212,400 159,300

────── ─────── ────── ────── ──── ───── ──────

Total 1,019,248 327,363 3,678,839 2,995,014 128,102 8,148,566 5,386,375

══════ ═══════ ══════ ══════ ════ ═════ ══════

4. Support services

The following support services are provided by East Ayrshire Council:

2015

For period 2nd

May to 31st

March 2014

£ £

Health and Safety 4,400 3,300

Internal Audit 4,000 3,000

Human Resources 65,000 48,750

Corporate Infrastructure 40,000 30,000

Finance 54,000 40,500

Legal and Procurement Services 45,000 33,750

─────── ─────── 212,400 159,300

═══════ ═══════

5. Governance Costs

2015 For period 2nd

May to 31st

March 2014

£ £

Audit and other accountancy fees 11,065 11,850

─────── ─────── 11,065 11,850

═══════ ═══════ The costs associated with trustee indemnity insurance are met by East Ayrshire Council.

24



20

6. Staff Costs and Numbers

2015 For period 2nd

May to 31st

March 2014

£ £

Wages and salaries 4,185,211 3,083,913

Social security costs 241,726 185,265

Other pension costs 851,984 490,228

Other staff costs 299,200 257,843

────── ─────── 5,578,121 4,017,249

══════ ═══════ Employees receiving salaries, including benefits in kind, of more than £60,000 were as follows:

£70,000 - £79.999 1

The average number of employees during the period was made up as follows:

2015

Restated

2014

Number Number


Full-time 111 120

Part-time 135 164

─────── ─────── 246 284

═══════ ═══════

During the period no trustees received any remuneration or expenses.

7. Operating Surplus

2015 For period

2nd May to

31st March

2014

£ £

The operating surplus is stated after charging/(crediting)

Auditors’ remuneration (including expenses)

for audit 10,315 11,850

for other services

750 0

25



21

8. Pension Costs

The charity is an admitted body of the Strathclyde Pension Fund. The Superannuation Fund is a defined

benefit scheme into which employee’ and employer’s contributions, and interest and dividends from

investments are paid and from which pensions, lump sums and superannuation benefits are paid out.

Employees’ contributions are tiered and employer’s basic contributions are assessed every three years

by an actuary and are fixed to ensure the fund remains solvent and in a position to meet its future

liabilities. The actuarial method used is known as Projected Unit Credit Method. The last full actuarial

valuation of the Strathclyde Pension Fund was at 31st March 2014. Following this valuation, employer’s

contributions increased to 19.3% for the years ended 31st March 2015, 2016, 2017 and 2018

respectively. Actual employer’s contributions for the year ended 31st March 2015 amounted to

£589,984 (2014: £429,228).

As sponsoring authority, East Ayrshire Council has guaranteed to accept liability for any unfunded

costs which may arise with regard to the Trust relating to their membership in the Strathclyde Pension

Fund should they cease to exist.

In accordance with FRS 17 – Retirement Benefits – a valuation of the fund was carried out at 31st

March 2015, by Hymans Robertson, independent actuaries. Hymans Robertson calculated the pension

assets and liabilities as at 31st March 2015 by rolling forward its full actuarial valuation, allowing for the

changes in financial assumptions as prescribed under FRS 17.

The expected return on assets is based on the future expected investment return for each asset class

at the beginning of the period.

The main assumptions used in the calculations are:

31 March 2015

% per annum

31st March 2014

% per annum

Inflation / Pension Increase Rate 2.5% 2.9%

Salary Increase Rate 4.4% 5.2%

Expected Return on Assets 3.3% 6.0%

Discount Rate 3.3% 4.3%

Mortality

Life expectancy is based on the Fund’s VitaCurves with improvements in line with the CMI 2012 model

assuming current rates of improvements have peaked and will converge to a long term rate of 1.5%

p.a. for males and 1.25% p.a. for females. Based on these assumptions, the average future life

expectancies at age 65 are summarised below:

Males Females

Current Pensioners 22.1 years 23.6 years

Future Pensioners 24.8 years 26.2 years

26



22

The major categories of plan assets as a % of the total plan assets are as follows:

31st March 2015 31st March 2014

% %

Equities 75 76

Bonds 13 12

Property 11 7

Cash 1 5

The estimated employer contributions for the year to 31 March 2016 will be approximately £598,000.

27



23

The amounts recognised in the balance sheet are as follows:

31st March

2015 31st March 2014

£000s £000s

Present value of funded liabilities (17,188) (12,534)

Fair value of plan assets 14,506 11,029

─────── ─────── Net (under)/overfunding in funded plans (2,682) (1,505)

Present value of unfunded liabilities 0 0

Unrecognised past service cost 0 0

─────── ─────── Net asset/(liability) (2,682) (1,505)

═══════ ═══════ Amount in balance sheet

Liabilities (2,682) (1,505)

Assets 0 0

─────── ─────── Net asset/(liability) (2,682) (1,505)

═══════ ═══════

Analysis of the amount charged to net incoming resources:


£’000 £’000

Current service cost 856 453

Past Service Cost 0 0

Losses on curtailments and settlements 0 0

─────── ─────── Total 856 453

═══════ ═══════

Analysis of amount credited to incoming resources:


£’000 £’000

Expected return on employer assets 681 433

Interest on pension scheme liabilities (559) (361)

─────── ─────── Net return 122 72

═══════ ═══════

The actual return on plan assets was £1,485,000 (2014: £710,000).

28



24

Analysis of amounts included in other recognised gains and losses:


£’000 £’000

Actuarial Gains/(losses) (1,037) (1,683)

─────── ─────── Actuarial gain recognised in net movement of funds (1,037) (1,683)

═══════ ═══════ Cumulative Actuarial Gains and Losses (2,720) (1,683)

Changes in fair value of the scheme assets are as follows:


£’000 £’000

Opening fair value of employer assets 11,029 9,806

Expected return on assets 681 433

Contributions by members 181 121

Contributions by the employer 594 392

Contributions in respect of unfunded benefits 0 0

Actuarial gains/(losses) 2,118 277

Assets distributed on settlements 0 0

Assets acquired in a business combination 0 0

Exchange differences 0 0

Estimated unfunded benefits paid 0 0

Estimated benefits paid (97) 0

─────── ─────── Closing fair value of employer assets 14,506 11,029

═══════ ═══════

Reconciliation of defined benefit obligation:


£’000 £’000

Opening defined benefit obligation 12,534 9,639

Current service cost 856 453

Interest cost 559 361

Contributions by members 181 121

Actuarial losses/(gains) 3,155 1,960

Past service costs/(gains) 0 0

Loss/(gain) on curtailments 0 0

Liabilities extinguished on settlements 0 0

Liabilities assumed in a business combination 0 0

Exchange differences 0 0

Estimated unfunded benefits paid 0 0

Estimated benefits paid (97) 0

─────── ─────── Closing defined benefit obligation 17,188 12,534

═══════ ═══════

29



25

Amounts for the current and previous accounting period:


£’000 £’000

Present Value of Defined Benefit Obligation (17,188) (12,534)

Fair Value of Employer Assets 14,506 11,029

─────── ─────── Surplus/(deficit) (2,682) (1,505)

Experience gains/(losses) on assets 2,118 277

Experience gains/(losses) on liabilities (866) 0

The pension scheme was transferred to the charity with effect from 1st July 2013, at which date the

FRS 17 valuation showed an asset of £167,000.

9. Fixed Assets

Furniture &

Equipment

£

Total

£

Cost

As at 1st April 2014 - -

Additions 21,800 21,800

Disposals - -

─────── ─────── As at 31st March 2015 21,800 21,800

═══════ ═══════ Depreciation


Charge 4,360 4,360

On disposal - -

─────── ─────── As at 31st March 2015 4,360 4,360

═══════ ═══════ Net book value

As at 31st March 2014 - -

As at 31st March 2015 17,440 17,440

═══════ ═══════

30



26

10. Heritage Assets

In 2014/15, the Trust procured a silver gilt sculpture of Lord Eglinton. This asset was fully funded by

external providers and has been disclosed in the balance sheet with a net book value of £34,920 as at

31st March 2015.

Heritage

Assets

£

Total

£

Cost


Additions 34,920 34,920

─────── ─────── As at 31st March 2015 34,920 34,920

═══════ ═══════ Net book value

As at 31st March 2014 - -

As at 31st March 2015 34,920 34,920

═══════ ═══════

11. Stock

2015 2014

£ £

Goods for re-sale 8,047 -

═══════ ═══════

12. Debtors

2015 2014

£

£

Amounts due from East Ayrshire Council 986,583 818,142

Trade debtors 90,657 88,770

Other debtors and prepayments 77,465 101,930

─────── ─────── 1,154,705 1,008,842

═══════ ═══════

13. Creditors: Amounts falling due within one year

2015 2014

£ £

Amounts owed to East Ayrshire Council 296,063 392,841

Trade creditors 218,891 90,584

Other creditors 649,489 838,967

Accruals and deferred income 162,956 193,805

Taxation and social security 543,102 406,810

─────── ─────── 1,870,501 1,923,007

═══════ ═══════

31



27

14. Reserves

Funds

Unrestricted

Funds

£

Restricted

Funds

£

2015

Total

£

2014

Total

£

Balance at 31st March 2015

Represented by:

Fixed assets 52,360 - 52,360 -

Net current assets 754,380 78,409 832,789 298,122

Retirement benefit scheme

deficit

(2,682,000) - (2,682,000) (1,505,000)

─────── ─────── ─────── ─────── (1,875,260) 78,409 (1,796,851) (1,206,878)

═══════ ═══════ ═══════ ═══════

Unrestricted

Fund

Opening

Balance at

1st April

2014

£

Incoming

£

Outgoing

£

Transfers

£

Actuarial

Loss

£

Closing

Balance at

31st

March

2015

£

Unrestricted

fund

149,459 8,373,610 (7,716,329) - - 806,740

Designated

fund

53,200 - (53,200) - - -

Pension reserve (1,505,000) 122,000 (262,000) - (1,037,000) (2,682,000)

─────── ─────── ─────── ────── ────── ─────── (1,302,341) 8,495,610 (8,031,529) - (1,037,000) (1,875,260)

═══════ ═══════ ═══════ ══════ ══════ ═══════

Designated funds were established in 2014 for box office booking system and Dean Castle capital project

development.

32



28

Unsigned Unlimited is project funded by Creative Scotland to help young people to network and perform

and learn about the music industry. The young people in the project often feature in our event

programme.

Creative Place is funded from Creative Scotland to bring high quality events and exhibitions to

Kilmarnock, supporting regeneration and tourism.

Ayrshire Libraries Forum is a network partnership of the three Ayrshire councils, Ayrshire NHS, school,

prison and higher education libraries to be used towards the upkeep of Ayrshire Working Lives website.

Generation was funded from Creative Scotland to develop three exhibitions which ran concurrently

focusing on Dalziel and Scullion, Christine Borland and Graham Fagen in South West Scotland.

Generation Engagement received funding from Creative Scotland to bring new and sustained engagement

opportunities to young audiences in East Ayrshire.

Deep Roots received funding from HLF and Eventscotland to support our Homecoming 2014 project

for Dean Castle and Country Park. The project included two major events/education programmes in

October/November, tree planting programme for the creation of Boyd Wood and new exhibition about

the Boyds at the Castle. This was a highly successful project and balance of funds will be used to support

the Boyd wood development.

Scotland Creates (Legacy of Lace) is funding received from National Museums Scotland on behalf of the

Esmee Fairbairn Foundation, to engage young people in museums through development of exhibitions

and associated events.

Restricted Funds

Opening

Balance

2015

Incoming

Resources

2015

Resources

Expended

2015

Closing

Balance

£ £ £ £

Unsigned Unlimited 9,797 1,171 6,758 4,210

Creative place 24,639 - - 24,639

Ayrshire Libraries forum 4,796 - 210 4,586

Generation 7,500 9,500 17,000 0

Generation engagement 3,000 1,000 4,000 0

Deep roots 28,250 57,018 83,762 1,506

Scotland Creates (Legacy of Lace) 12,081 3,300 56 15,325

WW1 5,400 2,300 5,679 2,021

Wifi 0 11,590 - 11,590

Training in new technologies 0 10,000 - 10,000

Poet in residence 0 1,750 - 1,750

Textile team 0 1,114 - 1,114

Music Box 0 141 141 -

Ritcher Engagement 0 8,495 6,827 1,668

When We are Young 0 3,669 3,669 -

────── ────── ────── ────── Totals 95,463 111,048 128,102 78,409

══════ ══════ ══════ ══════

33



29

WW1 project received funding from Lottery Funding to help school pupils to research, record and

interpret East Ayrshire's Museum, Library and Archive collections relating to WW1 and specifically

Ayrshire's experience of the war. A full educational programme based around the collections, together

with an exhibition at the Baird Institute and digital archive, will be created.

The WiFi project is funded by the Scottish Library and Information Council for the installation, supply

and management of WiFi in the Dick Institute, Cumnock, Galston and Stewarton Libraries. A detailed

specification has been prepared and a tender is being created to identify the best value WiFi installation,

supply and management providers.

Training in New Technologies project is funded by the Scottish Library and Information Council to train

Library staff in new technologies such as tablet, smartphones and iPads. Once trained, the library staff

will be equipped to assist customers in making the most of their own devices.

Poet in Residence took place at Burns House Museum during March/April 2015 and was funded by

Museums Association and Scottish Book Trust to help develop new audiences from the museum.

Textile team is a team of volunteers that were originally funded by HLF to carry out restoration and

repair of textiles. The remaining funding supports the group to continue with its work.

The Richter Engagement programme is funded by the Artfund to allow young people between ages of

14 and 25 to participate in a high quality out-of-school visual arts activity, working alongside three artists

to investigate Richter’s work and develop their own new work inspired by the exhibition.

When We Are Young was a successful exhibition and event programme that took place at The Baird

and received funds from HLF to develop and deliver the exhibition and workshop programme.

15. Notes to the cash flow statement

Reconciliation of operating surplus to net cash

inflow from operating activities

2015

£

For the

period

2nd May

to 31st

March

2014

£

Net incoming / (outgoing) resources 447,027 309,122

Interest (3,523) -

Depreciation 4,360 -

FRS 17 costs 140,000 (11,000)

(Increase)/decrease in stock (8,047) -

(Increase)/decrease in debtors (145,863) (1,008,842)

Increase/(decrease) in creditors (52,506) 1,923,007

────── ────── Net cash inflow from operating activities 381,448 1,212,287

34



30

Analysis of changes in net debt

At 1st April

2014

Cash Flows

At 31st March

2015

£ £ £

Cash at bank and in hand 1,212,287 328,251 1,540,538

═══════ ═══════ ═══════

Reconciliation of net cash flow to movement in debt

2015

Net (decrease)/increase in cash 328,251

Net funds at 1st April 2014 1,212,287

Net funds 31st March 2015 1,540,538

16. Operating lease commitments

Annual lease commitments under leases expiring:

Other Other

2015 2014

£ £

In two to five years 7,690 -

═══════ ═══════

17. Related parties

East Ayrshire Council, the sole member of East Ayrshire Leisure, made a contribution in line with the

Services Agreement of £6,109,380 (2014: £4,520,514). Facilities were leased to East Ayrshire Leisure

for a peppercorn rent. East Ayrshire Council also provided various support functions including Legal,

Finance and IT for which the charity was charged £212,400 (2014: £159,300).

The relevant transactions and balances with East Ayrshire Council were:

2014/15 2013/14

Charges

to

Charges

from

Due

from

Due to Charges

to

Charges

from

Due

from

Due to

£ £ £ £ £ £ £ £

7,086,000 466,000 987,000 296,000 5,998,000 1,282,000 818,142 392,841

═════ ════ ════ ════ ═════ ═════ ═════ ══════

5 Trustees of East Ayrshire Leisure were elected members of East Ayrshire Council during the period

ended 31st March 2015.

35



31

18. Contingent Liabilities

There are currently five public liability cases ongoing. These are being handled via East Ayrshire Council’s

insurer (Zurich). If it is determined that the Trust is liable, it will need to pay the first £500 and the

remainder will be covered by the insurer. Until the Assessor has completed its work, the Trust accepts

no liability for these claims.

19. Post Balance Sheet Event

None

20. Non-Audit Services

In common with many other charities of a similar size, the charity’s auditor assists with the

preparation of the financial statements.

36

Chief Executive: John Griffiths

The Palace Complex

9 Green Street

Kilmarnock

KA1 3BN

T: 01563 554710 F: 01563 554730

E: [email protected]

Appendix 2

18th August 2015

Scott-Moncrieff

Exchange Place 3

Semple Street

Edinburgh

EH3 8BL

Dear Sirs


This representation letter is provided in connection with your audit of the financial statements of East

Ayrshire Leisure Trust for the period ended 31 March 2015 for the purpose of expressing an opinion

as to whether the financial statements give a true and fair view in accordance with UK Generally

Accepted Accounting Practice.

By a resolution of the board, passed today, I am directed to confirm to you, in respect of the financial

statements of the charity for the period ended 31 March 2015, the following:-

Financial statements and accounting records

1. We have fulfilled our responsibilities under the Charities and Trustee Investment (Scotland) Act

2005 and the Charities Accounts (Scotland) Regulations 2006 for preparing financial statements

which give a true and fair view in accordance with UK Generally Accepted Accounting and for

making accurate representations to you.

2. We have provided you with:

access to all information of which we are aware that is relevant to the preparation of the financial statements such as records, documentation and other matters.

additional information that you have requested from us for the purpose of the audit; and

unrestricted access to persons within the entity from whom you determined if necessary to

obtain audit evidence.

3. All transactions have been recorded in the accounting records and are reflected in the financial statements.

4. Except as disclosed in the financial statements, the results for the year were not materially affected

by:-

any change in accounting policies;

37

transactions of a type not usually undertaken by the trust;

circumstances of an exceptional or non-recurrent nature; or

charges or credits relating to prior records.

5. We have reviewed going concern considerations and are satisfied that it is appropriate for the

financial statements to have been drawn up on the going concern basis. In reaching this opinion

we have taken into account all relevant matters of which we are aware and have considered a

future period of at least one year from the date on which the financial statements are to be

approved.

6. We confirm the financial statements are free of material misstatements, including omissions.

Fraud

7. We acknowledge as trustees our responsibilities for the design and implementation of internal

control in order to prevent and detect fraud and to prevent and detect error.

8. In our opinion, the risks that the financial statements may be materially misstated as a result of

fraud are low for the following reasons:

measures have been put in place by management to reduce the risk of fraud and the improper

use, of misappropriation of assets.

the board undertakes a formal risk review once a year, covering a wide range of risks associated

with governance, operations, finance and compliance. The risk of fraud and misuse of assets is

specifically included in that review.

9. We have disclosed to you all information in relation to fraud or suspected fraud that we are aware

of and that affects the entity and involves:

management

employees who have significant roles in internal control.

others where the fraud could have a material effect on the financial statements.

10. We are not aware of any allegations of fraud or suspected fraud with a potential effect on the financial statements which have been communicated to us by employees, former employees,

regulators or other third parties.

Compliance with laws and regulation, and contractual agreements

11. We have disclosed to you all know instances of non-compliance or suspected non-compliance with

laws and regulations whose effects should be considered when preparing the financial statements.

12. The trust has compiled with all aspects of contractual agreements that could have a material effect

on the financial statements in the event of non-compliance.

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Accounting estimates

13. In our opinion the significant assumptions used by us in making accounting estimates are

reasonable.

Related Parties

14. We have disclosed to you the identity of the charity’s related parties and all related party

relationships and transactions of which we are aware.

15. Related party relationships and transactions have been appropriately accounted for and disclosed

in accordance with the requirements of UK Generally Accepted Accounting Practice.

16. In particular, no trustee, shadow trustee, their connected persons or other officers had any

indebtedness, during the year other than as indicated in financial statements.

Assets and liabilities

17. The following have been properly recorded and, when appropriate, adequately disclosed in the

financial statements:

losses arising from sale and purchase commitments;

agreements and options to buy back assets previously sold;

assets pledged as collateral.

18. We have disclosed to you all known actual or possible litigation or claims whose effects should be

considered when preparing the financial statements and that they have been accounted for and

disclosed in accordance with UK Generally Accepted Accounting Practice.

19. We have no plans or intentions that may materially alter the carrying value or classification of

assets and liabilities reflected in the financial statements.

20. We have no plans to abandon activities or other plans or intentions that will result in any excess

or obsolete stocks, and no stock is stated at an amount in excess of net realisable value.

21. The trust has satisfactory title to all assets and there are no liens or encumbrances on the charity’s

assets, other than as disclosed in the financial statements.

22. We have recorded or disclosed, as appropriate, all liabilities, both actual and contingent, and all

guarantees that we have given to third parties.

Subsequent events

23. All events subsequent to the date of the financial statements and for which UK Generally Accepted

Accounting Practice require adjustment or disclosure have been adjusted or disclosed. Should any

material events occur which may necessitate revision of the figures included in the financial

statements or inclusion in the notes thereto, we will advise you accordingly.

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Further representations

24. All grants, donations and other incoming resources, the receipt of which is subject to specific terms

and conditions, have been notified to you. There have been no breaches of terms and conditions

in the application of such incoming resources.

25. We confirm that there were no restrictions over the donations received and applied to the

purchase of the Eglinton Statue.

26. All income has been recorded, all restricted funds have been properly applied and all constructive

obligations have been recognised.

We confirm that the above representations are made on the basis of enquiries of management and

staff with relevant knowledge and experience (and, where appropriate, of inspection of supporting

documentation) sufficient to satisfy ourselves that we can properly make each of the above

representations to you.

Yours faithfully

Douglas Reid

Trustee

Signed on behalf of the board

On ………………………………………… (date)

The above trustee is signing this letter on behalf of all trustees confirming that:

a) so far as each trustee is aware, there is no relevant audit information of which the charity is

unaware; and

b) each trustee has taken all the steps that ought to have been taken as a trustee, including making

appropriate enquiries of fellow trustee and of the charity’s auditor for that purpose, in order

to be aware of any information needed by the charity’s auditor in connection with preparing

their report and to establish that the charity’s auditor is aware of that information.

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Documents

TRUST BOARD MEETING - East Ayrshire Leisureeastayrshireleisure.com/media/related/pdf... · TRUST BOARD MEETING ANNUAL GENERAL MEETING ... Councillors Douglas Reid, Alan Brown and