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
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
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
East Ayrshire Leisure Trust Scottish Charitable Incorporated Organisation Information
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Trustees’ Report
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Trustees’ Report
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Trustees’ Report
For the year ended 31st March 2015
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
AREA FUNCTION MAIN VENUES + FACILTIES
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
East Ayrshire Leisure Trust Trustees’ Report
For the year ended 31st March 2015
7
EAST AYRSHIRE LEISURE – WHAT WE MANAGE
COUNTRYSIDE
AREA FUNCTION MAIN VENUES + FACILTIES
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
AREA FUNCTION MAIN VENUES + FACILTIES
POLICY AND STRATEGY DIRECTION
AND DEVELOPMENT
BUISNESS PLANNING
RISK MANAGEMENT
MARKETING & DEVELOPMENT
AREA FUNCTION MAIN VENUES + FACILTIES
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
AREA FUNCTION MAIN VENUES + FACILTIES
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
East Ayrshire Leisure Trust Trustees’ Report
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Trustees’ Report
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Trustees’ Report
For the year ended 31st March 2015
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
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Independent Auditor’s Report to the Trustees of East Ayrshire Leisure
For the year ended 31st March 2015
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
For the year ended 31st March 2015
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
For the year ended 31st March 2015
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
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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:
31st March 2015 31st March 2014
£’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:
31st March 2015 31st March 2014
£’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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
24
Analysis of amounts included in other recognised gains and losses:
31st March 2015 31st March 2014
£’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:
31st March 2015 31st March 2014
£’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:
31st March 2015 31st March 2014
£’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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
25
Amounts for the current and previous accounting period:
31st March 2015 31st March 2014
£’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
As at 1st April 2014 - -
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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
As at 1st April 2014 - -
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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
East Ayrshire Leisure Trust Notes to the Financial Statements
For the year ended 31st March 2015
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
Appendix 2
18th August 2015
Scott-Moncrieff
Exchange Place 3
Semple Street
Edinburgh
EH3 8BL
Dear Sirs
East Ayrshire Leisure Trust
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;
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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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