The Basingstoke and Alton Cardiac Rehabilitation …...Ellis Whittam Limited Woodhouse Aldford...

Company Registration Number 2732756

Charity Number 1013238

The Basingstoke and Alton Cardiac Rehabilitation Charity Limited

(A Company Limited by Guarantee)

Trustees’ Annual Report and Unaudited Financial Statements

for the year ended 31 March 2017

The Basingstoke and Alton Cardiac Rehabilitation Company Registration Number 2732756

Charity Limited Charity Number 1013238

Contents of the Financial Statements


Contents Page

Directors, trustees, officers and advisers 2 - 3

Trustees’ Annual Report for the year ended 31 March 2017 4 - 10

Independent Examiner’s Report 11

Statement of Financial Activities 12

Balance Sheet at 31 March 2017 13

Cash flow statement for the year ended 31 March 2017 14

Notes to the Financial Statements 15 - 23

Detailed Statement of Financial Activities 24 - 25



Directors, Trustees, Officers and Advisers


Name and Registered Office of the Company

The Basingstoke and Alton Cardiac Rehabilitation Charity Limited

Chawton Park Road

Alton

Hampshire

GU34 1RQ

Registered Company Number

2732756

Registered Charity Number

1013238

Directors and Trustees

Dr Hugh J N Bethell

Mr Chris J Youngs - Chairman

Dr Andrew Bishop

Dr Mike G Hayward

Mrs Rosemary A Lewis

Mr Stephen J MacCormack - resigned 24 November 2016

Mr Jonathan C Pickering

Ms Christine Scholes

Patron

Sir James Scott

Company Secretary

Dr Hugh J N Bethell

General Manager

Mr Martin Lovell

Committees

Governance and Finance Committee:

Jonathan Pickering – Chair

Stephen MacCormack (resigned 24 November 2016)

Martin Lovell

Lynn Simpson - Secretary

Chris Youngs (from 24 November 2016)

Strategy and Fundraising Committee:

Christine Scholes - Chair

Denise Ellis

Rosemary Lewis

Martin Lovell - Secretary

Health Programme and Operations Committee:

Mike Hayward – Chair

Hugh Bethell

Denise Ellis

Sandra Letford

Martin Lovell – Secretary

Sally Turner



Directors, Trustees, Officers and Advisers (continued)


Advisers

Independent examiner and accountants

D A Sanders BA (Hons) FCA

Sheen Stickland

Chartered Accountants

4 High Street

Alton

Hampshire

GU34 1BU

Bankers

HSBC

74 High Street

Alton

Hampshire

GU34 1EZ

Solicitors

Bookers and Bolton

6 High Street

Alton

Hampshire

GU34 1BT

Human Resources and Health and Safety consultants

Ellis Whittam Limited Woodhouse

Aldford

Cheshire

CH3 6JD



Report of the Trustees


The Trustees present their annual report and the unaudited financial statements for the year ended 31 March 2017 under the

Charities Act 1993, as amended by the Charities Act 2006 and the Charities Act 2011; and the Companies Act 2016 and confirm

that the unaudited financial statements comply with the requirements of those Acts and the Charities SORP 2015 FRS 102 S1A.

The information on Trustees, officers and advisers on pages 2 and 3 forms part of this Trustees’ Annual Report.

Status and Structure

The Basingstoke and Alton Cardiac Rehabilitation Charity Limited (Cardiac Rehab) is a company limited by guarantee and a

registered charity.

Under the Articles of Association only members of the Company, other than the General Manager, shall be appointed to the

Board of Management (Trustees) of the Charity. The Trustees acting as trustees on behalf of the Company are responsible for

the accounts of the Company. The Company has charitable status for taxation purposes.

Governance and Management

Board of Trustees

Particulars of the Trustees who served during the year are given on page 2.

Recruitment and Training of Trustees

New trustees are appointed at a Board meeting on recommendation by an existing trustee. Nominations and suggestions are

invited from across the local community. The Board considers these in accordance with the requirements detailed in the Articles

of Association. Importance is placed on appointing new trustees who would attract support for the Charity within the local

community and on a national or international scale. Weight is also given to the specific experience and qualifications possessed

by retiring trustees, and by those due to retire within two years, to ensure continuity of representation of a broad variety of men

and women with a cross section of talents.

A formal induction is arranged for all new trustees. This ensures that they are familiar with the Charity, the way in which it

operates, and the current issues which face Trustees and Management. This involves provision of a comprehensive pack of

relevant papers, followed by meetings and visits to familiarise the trustee with the Charity and the key personalities including:

the Chairman, the General Manager, the Centre Manager and support staff. Training of Trustees is carried out through the

medium of internal seminars or presentations. Trustees are also encouraged to attend external seminars such as those run by

RSM.

Organisational Management

The Trustees, as the charity trustees, are legally responsible for the overall management and control of the Charity and normally

meet four times a year. During the past year, the Charity adopted a Governance Framework setting out the Charity’s governance

arrangements and the delegation of responsibilities and authorities. Much of the detailed work of the Charity is carried out by

the members of three committees which were formed in June 2016: the Governance and Finance Committee (GFC); the Strategy

and Funding Committee (SFC); and the Health Performance and Operations Committee (HPOC), who each meet in advance of

the full Board meetings and at other times as required. Other committees of Trustees are formed as required from time to time.

All committees report to the full Board of Trustees; the Chairman of Trustees is not a member of the SFC or the HPOC but

attends the meetings of each of the committees as an observer. The main responsibilities of each committee are:

Governance and Finance Committee:

to ensure compliance with the Charity’s Memorandum and Articles of Association and all relevant legislation, and to oversee

the financial affairs of the Charity, including the development of and compliance with appropriate policies; monitoring and

review of the Charity’s advisers and service providers; discharging the Trustees’ statutory duties in relation to the provision of

information; governance; and any external audit requirements.





Strategy and Fundraising Committee:

to develop, implement and monitor strategy and fundraising for the Charity and to make recommendations to the Board

accordingly.

Health Performance and Operations Committee:

to oversee all operational aspects of the Charity, including the provision of fitness assessments and exercise programmes to

persons referred to it (the exercisers); and the interface with the National Health Service Team.

Each committee has the responsibility and power to take decisions on all matters within their Terms of Reference, other than

those reserved to the Board or other committees, in order to enable the effective discharge of all relevant duties.

Day to day responsibility for the Charity’s fundraising and operational management is delegated by the Board to the General

Manager.

Risk Management

The Board of Trustees is responsible for the management of the risks faced by the Charity. The General Manager reports

regularly in accordance with the Risk Register that concerns all aspects of Charity life including health and safety, financial

borrowing, charitable status, disaster planning and governance and management. The management of risk is a routine part of all

Charity activities and appropriate procedures are in place. These are reviewed at the quarterly meetings of the Charity’s

Committees and a formal review of the Risk Register is conducted annually by Trustees.

The key controls used by the Charity include:

- formal agendas for all Committee and Board activity;

- detailed terms of reference for all Committees;

- comprehensive strategic planning, budgeting and management accounting;

- established organisational structure and lines of reporting;

- formal written policies;

- clear authorisation and approval levels, and

- vetting procedures as required by law for the protection of the vulnerable.

The major risks to which the Charity are exposed, as identified by the Trustees, have been reviewed and systems or procedures

are in place to manage those risks. It is recognised that systems can only provide reasonable but not absolute assurance that major

risks have been adequately managed.

Objectives and Activities

Charitable Objectives

The objectives, for which the Charity is established, are:

- the relief of persons suffering from, or at risk of, heart and coronary illness, and in particular of such persons receiving

treatment at the Hampshire Hospitals NHS Foundation Trust or on their discharge, by the provision and maintenance

of a Cardiac Rehabilitation Unit;

- the education and assistance of such persons so as to develop their understanding of the nature of heart disease, how to

avoid the onset or recurrence thereof, and of diet and exercise, that their conditions of life may be improved;

- the promotion and research into the cause and treatment of heart and coronary illness and the publication of the useful

results of such research.

In the furtherance of these objectives, but not further or otherwise, the powers of the Charity are set out in its Memorandum

and Articles of Association.

The accounting policies adopted in achieving the objectives of the charity are as set out in note 2 to these financial statements.

There have been no material changes in these policies.





Significant activities

The principal activities of the Charity continue to be the pursuit of the three objectives laid out above, making use of the Charity's

custom made building on a site leased from East Hampshire District Council adjoining Alton Sports Centre.

Review of Achievements and Performance for the Year

The Charity has continued to provide the setting for high quality rehabilitation and education for patients recovering from cardiac

illnesses. The number of rehabilitation exercise class attendances on long term programmes run by the Charity was maintained

at over 25,000 in the year. The Centre is open for a range of exercise sessions between 8:00am – 8:00pm Monday to Thursday,

7:45am – 5:30pm Friday and 8:00am – 11:30am on Saturdays. The Charity also continued to provide facilities for Hampshire

Hospitals NHS Foundation Trust to run its shorter-term, post-operative exercise and health education classes and Doctors’

clinics.

The Charity operates the Staywell Programme, intended to provide exercise classes and health education for those who have not

yet developed heart disease, but who are considered at high risk of doing so. A one-year pilot of the scheme was launched in

January 2009, forming part of East Hampshire District Council's Exercise Referral Scheme in which patients were referred by

local GPs. This service expands the Charity's activities to meet in full its objectives, which were extended in the year ended 31st

March 2008 to include those "at risk of heart or coronary illness". The Trustees are committed to increasing the number of

entrants to the Staywell Programme and have the objective of increasing the new referrals from 100 to 250 per year by the

financial year ending 31 March 2020.

Sources of income have included charitable fundraising and donations, legacies, fees paid by those attending exercise classes

and rental income from other organisations for use of parts of the building.

Expenses have included building overheads, staff salaries, staff education and the purchase of new equipment to enhance the

quality of the service provided.

The Charity has continued to maintain its profile locally, through fundraising events, the well-publicised Staywell Programme

and the distribution of newsletters to its supporter base. In its promotional activities the Charity is also known as Cardiac Rehab.

In November 2016 the Charity launched a weekly lottery, administered by a third party provider, to provide an additional and

significant income stream to its fundraising activities. It is hoped that in the first full year of operation this will provide income

of £20,000.

The Charity has a subsidiary company - The Basingstoke and Alton Cardiac Rehabilitation Enterprises Limited (“Enterprises”),

which undertakes trading activities. Profits earned are passed to the Charity by way of a donation. No payment was made in the

year [2016: nil]. Enterprises operates a charity shop in Alton and employs the shop management, but is dependent upon

volunteers for its staff. A summary of Enterprises income and expenditure for the year ended 31 March 2017 is given on page

8 of these financial statements.





Volunteers

There is a small number of volunteers to whom we are most grateful for the support that they generously provide to the Charity.

They can be grouped as follows:

Regular

Treadmill Testing: Dr Hugh Bethell, Trustee, provides, free of charge, treadmill testing for those new entrants to the Staywell

programme who have a previous history of cardiac or cardiovascular disease and for whom it is felt appropriate to complete a

test to prescribe an appropriate individual exercise regime. Dr Bethell administers an average of 3 tests per week;

Centre Volunteers: during evening sessions and Saturday mornings student volunteers provide an extra pair of hands to support

Instructors and Reception staff and assist in the event of a medical emergency;

Charity Shop Volunteers: the Shop, which is run by Enterprises, has a group of volunteers who provide assistance to the two

part-time staff in running the shop. The number of these volunteers varies, but on average there are eight.

Ad Hoc

There are approximately 50 individuals: exercisers, past and present, and friends of the Charity, who will, from time to time,

assist with running events; street or in-store collections; mailshots; and miscellaneous administrative tasks.

Developments in the year

Following the strategy review in 2015-16 the planned appointment of a Health Programme Manager (HPM), a Deputy HPM and

a Finance Officer were all completed by July 2016.

A Fundraiser was appointed late in November 2016 but left in April 2017. A replacement will be sought and appointment is

expected in Quarter 2 of 2017-18.

The Charity strengthened its governance by adopting the Governance Framework.

.

Operational Performance of the Charity

Statement on Public Benefit

The Trustees have complied with their duty in section 4 of the Charities Act 2011 to have due regard to the public benefit

guidance published by the Charity Commission.

It is well accepted that the use of exercise and health education is effective for both cardiac rehabilitation and the primary

prevention of heart disease. Both are encouraged by the NHS to meet the national public health agenda. In the Charity's locality

there is no public sector provision, or funding, of the type of service offered by the Charity. Accordingly, the Trustees are clear

that the Charity's services are provided for the public benefit.

The services that the Charity provides to individuals suffering from, or at risk of, heart and coronary illness, and in particular of

such persons receiving treatment at the Hampshire Hospitals NHS Foundation Trust or on their discharge, are available to all

who wish to use them, provided that (a) they are referred to the charity by a doctor or other health professional as meeting the

appropriate medical health or condition criteria; and (b) they are aged 18 years or more (as dealing with such health conditions

in minors requires more specialist facilities and expertise than the Charity possesses). Users pay for the services, but the fees are

subsidised in as much as they cover approximately 45% of the cost of providing the services. Reduced fees are available for

those on benefits, and free usage is offered in cases of exceptional economic hardship.

Users are referred to us (and accepted by us) strictly according to medical need. Accordingly, the Trustees are confident that our

services do not discriminate in terms of adult age, gender, ethnicity, disability or sexual orientation. Our users are, however, self-

selecting in that it is their choice as to whether our services, and, in particular, our gym-based exercise, are attractive to them.

Users cannot be referred to us without their consent.





Financial Review and Results for the Year

The results for the year are set out in the Statement of Financial Activities on page 12 and demonstrate that the Charity’s net

outgoing resources for the year were £39,993 [2016: £14,493].

Income in the year was £277,935, an increase of £33,870 over the previous year, partly reflecting fewer grants received offset

by increased income from fundraising events, particularly the popular Annual Lecture, which this year was given by Bill Bryson.

Expenditure on additional fundraising activities, and on organisational changes to the Charity, resulted in an increase of £59,370

in resources expended from £258,558 to £317,928. Enterprises ceased trading on 12 August 2017 and the historical balance of

£5,168 owed to Enterprises by the Charity has been written back in these accounts as a reversal of expenditure.

Restricted funds of £13,521 [2016: £2,470] were received during the year and expenditure on new chairs for the Centre

Reception, staff training, replacement gym equipment and the gym equipment service contract, totalling £11,440 [2016: £2,078]

was incurred.

Performance of subsidiary company

During the year the Charity’s subsidiary, Enterprises, made a loss of £6,976 [2016: £1,603]. As noted above, Enterprises ceased

trading on 12 August 2017, and the historical balance of £5,168 owed to Enterprises by the Charity has been written off as

expenditure in arriving at that loss. No donation was made to the Charity during the year.

Reserves Policy

In the financial year the Trustees adopted a Reserves Policy. The Trustees have examined the requirements for free, unrestricted

cash reserves and consider that the requirement falls within the range £120,000 to £170,000. The Reserves Policy will be

reviewed annually. As at 31 March 2017 the Charity had approximately £350,000 in free cash reserves. This sum gives flexibility

to cover working capital requirements, reductions in the amounts raised through fundraising and donations (which together

currently need to contribute approximately £200,000 p.a. to cover the Charity's expenditure) and contingency in the event of

interruption of the Charity's operations (and exerciser fee income stream).

Investment Policy and Objectives

The Charity’s unrestricted and restricted investments have been held in the form of deposits and bonds in a number of separate

bank and building society accounts. In May 2017 Trustees approved an Investment policy under which the Charity’s long-term

unrestricted and restricted investments will be managed by CCLA Management Limited and held in COIF Charities Investment

Fund. The Trustees’ policy is to achieve, over the long term, an increase in the fund’s capital value, in real terms (inflation

adjusted) whilst generating an income to support the on-going activities of the Charity.

Employee involvement

Regular meetings are held throughout the year with staff and instructors. The Trustees are committed to ensuring that the Charity

provides equality of opportunity in recruitment and employment. All applicants for employment and existing employees are

treated by reference to their particular aptitudes, abilities and relevant qualifications and receive equal treatment as provided by

law regardless of gender, sexual orientation, marital status, race, colour, nationality, ethnic or national origins, religious belief,

age or disability.





Future Plans

Following the establishment of a new organisational structure for the Charity and the making of the key appointments, the

Trustees’ focus in the coming year is to deliver the strategy as contained in the Strategy Framework document, which outlines

the short medium and long term goals. These include in the short term:

i) Securing financial stability of the Charity;

ii) further development of the Cardiac Rehab Staywell Programme;

iii) consolidation of the Phase IV programme; and

iv) review of the pricing structure to deliver greater public benefit.

Discussions continue with East Hants District Council (EHDC) concerning the replacement of the current Alton Sports Centre

and the impact of this on the Charity's Cardiac Rehab Centre. Expected development may commence as early as September

2017. EHDC has obtained outline planning but a detailed planning application has not yet been submitted. EHDC has appointed

Sport and Leisure Management Limited, trading as Everyone Active, as partner for the design, build and management of three

leisure centres, including Alton, within EHDC.

The implementation and continual review of the Strategy Framework, including the appointment of key personnel, endorses the

Trustees’ assessment that there are no significant doubts of the Charity’s ability to continue as a going concern.

Independent Examination

Sheen Stickland were appointed as Independent Examiner to the charitable Company in June 2010.

A resolution to re-appoint Sheen Stickland as Independent Examiner for the ensuing year was proposed at the annual general

meeting in accordance with section 485 of the Companies Act 2006.

As far as each Director is aware, there is no relevant information of which the charitable Company’s Independent Examiner is

unaware and each Director has taken all the steps that ought to have been taken as a director in order to make themselves aware

of any relevant information and to establish that the charitable Company’s Independent Examiner is aware of that information.

Statement of Trustees’ Responsibilities

The Trustees, who are also the directors of Basingstoke and Alton Cardiac Rehabilitation Charity Limited for the purposes of

company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law

and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law, the Trustees have

elected to prepare the charitable company financial statements in accordance with United Kingdom Generally Accepted

Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Trustees must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable

Company and of the incoming resources and application of resources, including the income and expenditure, for that period. In

preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently; • observe the methods and principles in the Charities SORP;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and

explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable

Company will continue in operation.



Statement of Financial Activities


Note Unrestricted Restricted Total Total

Funds Funds 2017 2016

£ £ £ £

Incoming Resources

Charitable activities

Provision of exercise facilities 3 117,916 - 117,916 125,494

Other ancillary activities 5 96,243 - 96,243 64,741

Incoming resources from generated funds

Activities for generating funds

Donations and legacies 4 45,490 13,521 59,011 48,784

Investment income 6 4,765 - 4,765 5,046

Total Incoming Resources 264,414 13,521 277.935 244,065

Resources Expended

Costs of generating funds

Cost of raising funds 7 47,925 - 47,925 22,879


Provision of exercise facilities 7 267,361 2,642 270,003 235,679

Total Resources Expended 315,286 2.642 317,928 258,558

Net incoming/(outgoing) resources for the year (50,872) 10,879 (39,993) (14,493)

Net movement in funds for the year (50,872) 10,879 (39,993) (14,493)

Fund balances at 1 April 2016 764,761 392 765,153 779,646

Fund balances at 31 March 2017 713,889 11,271 725,160 765,153

All activities are classed as continuing.

The notes on pages 15 to 23 form part of these financial statements.



Cash Flow Statement


Table 2017 2016

£ £

Cash generated from operating activities:

Net cash provided by (used in) operating activities 1 (25,268) 9,171

Cash flows from investing activities:

Cash flows from other sources:

Bank interest received 4,102 5,046

Application of cash:

Payment for tangible fixed assets (12,486) (5,587)

Net cash provided by (used in) investing activities (8,384) (541)

Cash flows from financing activities:

Movement in intercompany balance 5,301 (5,249)

Net increase/(decrease) in cash: (28,351) 3,381

Cash at bank and in hand at 1 April 2016 378,476 375,095

Cash at bank and in hand at 31 March 2017 350,125 378,476

Table 1:

Reconciliation of net income/(expenditure) to net cash flow from operation activities

2017 2016

£ £

Net income/(expenditure) for the reporting period (as per the Statement of

Financial Activities) (45,161) (14,493)

Depreciation charges 18,068 19,166

Interest received (4,102) (5,046)

Loss/(profit) on the sale of tangible fixed assets 3,885 -

(Increase)/decrease in stocks 253 (172)

(Increase)/decrease in debtors (6,350) -

Increase/(decrease) in creditors 8,139 9,716

Net cash (used in) provided by operating activities (25,268) 9,171

The notes on pages 15 to 23 form part of these financial statements.



Notes to the Financial Statements


1 Statement of Compliance

The Basingstoke and Alton Cardiac Rehabilitation Charity Limited is a charity, limited by guarantee, incorporated in

England, company registration number 2732756, and charity number 1013238. The registered office is Cardiac Rehab

Centre, Chawton Park Road, Alton, Hampshire GU34 1RQ.

The financial statements are presented in sterling which is the functional currency of the charity and are rounded to the

nearest pound.

The financial statements have been prepared in compliance with FRS 102 as it applied to the financial statements for the

year ended 31 March 2017.

The significant accounting policies applied in the preparation of these financial statements are set out below. These

policies have been consistently applied to all years presented unless otherwise stated.

2 Accounting policies

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared

in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended

Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable

in the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2015)’, Financial Reporting Standard 102

‘The Reporting Standard applicable in the United Kingdom and Republic of Ireland’ and the Companies Act 2006.

Basis of accounting

The financial statements are prepared in accordance with the historical cost convention.

In the opinion of the Board of Trustees, the charity and its subsidiary undertaking comprise a small group. Accordingly,

the charity has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 not to prepare

group accounts. These financial statements present information about the charity as an individual undertaking.

Resources arising - income

All income is recognised in the Statement of Financial Activities when the conditions for receipt have been met and there

is reasonable assurance of receipt. Where a claim for repayment of income tax has been or will be made, such income is

grossed up for the tax recoverable. The following accounting policies are applied to income:

a) Class fees and other activities

Fees receivable and charges for use of premises are accounted for in the period in which the service is provided.

b) Investment income

Investment income is accounted for when received.

c) Donations

Donations and all other receipts from fund-raising are reported gross and the related fund-raising costs are reported in

expenditure. Donations receivable for the general purposes of the charity are credited to Unrestricted Funds. Donations

for purposes restricted by the wishes of the donor are taken to Restricted Funds where these wishes are legally binding

on the Trustees of the charity.





2 Accounting policies (continued)

Resources expended

Expenditure is accounted for on an accruals basis and is allocated to expense headings on a direct cost basis. The

irrecoverable element of VAT is included with the item of expense to which it relates. Liabilities are recognised when an

obligation arises to transfer economic benefit as a result of past transactions or events.


Costs of generating funds comprise the cost of fundraising. Expenditure is accounted for on an accruals basis.

Direct charitable expenditure

Direct charitable expenditure includes all expenditure directly related to the objects of the Charity, and is accounted for

on an accruals basis.

Support costs

Support costs, which are not attributable to a single activity, are apportioned between fundraising and charitable activities

on the basis of direct expenditure incurred on those activities.

Fund accounting

The Charity maintains various types of funds as follows:

a) Restricted Funds

Restricted funds represent grants, donations and legacies received which are given by the donor for specific purposes

within the objects of the charity. Income on these investments is also restricted by the donor.

b) Unrestricted Funds

Designated funds comprise amounts set aside by the Trustees for specific purposes.

General unrestricted funds represent funds which are expendable at the discretion of the Trustees in the furtherance

of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation which is provided in equal annual instalments over the estimated

useful lives of the assets. Individual assets over a cost of £500 are capitalised; this was increased from £100 from April

2016. Properties are maintained throughout the year and an impairment review is carried out on an annual basis.

The rates of depreciation applied to assets are as follows:

Leasehold property - 2% on cost

Fitness equipment - 20% on cost

Office and computer equipment and furniture - 20% on cost

Investments

Investments in subsidiary undertakings are stated at cost. Other investments are stated at market value, with revaluation

adjustments being taken to the income and expenditure account.





2 Accounting policies (continued)

Stocks

Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving

items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Pension costs and other post-retirement benefits

The Charity operates a defined contribution pension scheme in the UK on behalf of the employees of the charitable

company. The amount charged to the SOFA represents the contributions payable in the year.

Donated assets

Donated assets are recognised as income when the charity has control over the item, any conditions associated with the

donated item have been met, the receipt of economic benefit from the use of the item by the charity is probable and that

economic benefit can be measured reliably.

On receipt, donated assets are recognised on the basis of the value of the gift to the charity, which is the amount the

charity would have been willing to pay to obtain the equivalent economic benefit on the open market; a corresponding

amount is then recognised in fixed assets in the period of receipt.

Where the value of donated assets cannot be reliably estimated, then no such adjustment is made.

Financial Instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic

financial instruments are initially recognised at transaction value and subsequently measured at their settlement date.

3 Income from Charitable Activities 2017 2016

£ £

Exercise classes 113,610 110,188

Room hire 3,640 3,280

Other income 160 5,526

Grants 506 6,500

117,916 125,494

2017 2016

Restated

£ £

Grants received, included in the above, are as follows:

Santander Community grant - 5,000

Persimmon grant - 1,000

East Hampshire County Council - 500

East Hampshire District Council 406 -

Alton Town Council 100 -

506 6,500





4 Donations and Legacies 2017 2016

£ £

Covenants 6,077 4,551

Donations and gifts 30,698 27,841

Legacies 598 5,435

In memoriam 8,117 8,487

Unrestricted income 45,490 46,314

Restricted income 13,521 2,470

Total income from donations and legacies 59,011 48,784

5 Other activities 2017 2016

£ £

Event takings 57,722 32,498

Grand draws 17,073 15,305

Sales 4,708 8,986

100 Club donations 2,650 2,621

Flag days and collection tins 9,945 5,331

Lottery 4,145 -

96,243 64,741

6 Investment income

2017 2016

£ £

Bank interest receivable 4,765 5,046

4,765 5,046





7 Resources expended


2017 2016

£ £

Staff costs 26,757 10,971

Publicity 5,275 2,675

Events expenses 12,523 6,670

Purchases 2,050 1,897

Support costs 1,320 666

47,925 22,879

Costs of charitable activities

2017 2016

£ £

Provision of exercise facilities:

Staff costs 122,215 97,001

Rent, rates and water 4,156 3,726

Insurance 1,764 2,881

Light and heat 9,358 7,746

Telephone 3,563 3,182

Postage, stationery and advertising 8,620 6,185

Sundries 96 -

Cleaning 7,932 6,765

Repairs and maintenance 9,704 5,440

Health and safety 154 -

Subscriptions 307 380

Travel expenses 654 897

Staff recruitment 2,536 990

Bank charges 239 219

Staff refreshments 1,073 1,355

Staff uniforms 224 -

Training 285 -

Physical training instructors 63,532 62,746

Research salaries - 2,419

Course management expenditure 72 987

IT costs 7,333 8,294

Depreciation 17,249 19,167

Loss on disposal of tangible assets 3,885 -

Support costs 7,578 5,299

272,529 233,601

Write back of intercompany balance (5,168) -

Unrestricted expenditure 267,361 233,601

Restricted expenditure

Staff training 576 -

Gym equipment maintenance 1,247 2,078

Depreciation on Restricted Assets 819 -

Restricted expenditure 2,642 2,078

Total costs of charitable expenditure 270,003 235,679





7 Resources expended (continued)


2017 2016

£ £

Support costs

Support costs of generating voluntary income 993 666

Support costs of charitable activities 7,905 5,299

8,898 5,965

Net incoming/(outgoing) resources for the year is stated after charging:

2017 2016

£ £

Depreciation – owned assets 18,068 19,167

Independent Examiner’s fee 1,560 2,172

Restricted income received during the year was used to purchase tangible fixed assets of £9,617 [2016: £nil].

8 Employee information 2017 2016

£ £

Total staff costs comprise:

Wages and salaries 143,053 105,906

Social security costs 5,278 4,485

Pension contributions 641 -

148,972 110,391

Cost of generating funds: staff costs 26,757 10,971

Cost of charitable activities: staff costs 122,215 99,420

Total staff costs 148,972 110,391

The average number of employees in the year was: 12 [2016: 11], full time equivalents 5 [2016: 4] and the number of

employees at the end of the year was 14 [2016: 13].

Staff who work in the retail shop, which is operated by the subsidiary company, Enterprises, are contractually

employed by the Charity; their salaries and associated staff costs are recharged to the subsidiary. The average number

of employees (full time equivalents) in the year recharged to the subsidiary was 1 [2016: 1].

No member of staff was paid more than £60,000 per annum (2016: nil).

Neither the Trustees of The Basingstoke and Alton Cardiac Rehabilitation Charity Limited nor persons connected with

them received any remuneration or other benefits from the Charity. Expenses for trustee training totalling £55 (2016:

nil) incurred in performing their duties were reimbursed to one (2016: nil) Trustee.





9 Tangible Fixed Assets

Leasehold Fitness Office

property equipment Equipment Total

£ £ £ £

Cost

At 1 April 2016 461,622 61,382 61,436 584,440

Additions - 8,912 3,574 12,486

Disposals (2,600) (4,709) (14,012) (21,321)

At 31 March 2017 459,022 65,585 50,998 575,605

Accumulated depreciation

At 1 April 2016 84,269 44,512 59,201 187,982

Charge for the year 9,180 8,004 884 18,068

On disposals (569) (3,814) (13,053) (17,436)

At 31 March 2017 92,880 48,702 47,032 188,614

Net book value

At 31 March 2017 366,142 16,883 3,966 386,991

At 31 March 2016 377,353 16,870 2,235 396,458

10 Investments held as fixed assets

The Charity has a 100% holding of 2 ordinary shares of £1 each in The Basingstoke and Alton Cardiac Rehabilitation

Enterprises Limited, a limited company registered in England and Wales.

11 Stocks 2017 2016

£ £

Merchandise 1,047 1,300

12 Debtors: amounts falling due within one year 2017 2016

£ £

Trade debtors - -

Prepayments and accrued income 6,350 -

Due from subsidiary undertaking - 133

6,350 133





13 Creditors: amounts falling due within one year 2017 2016

£ £

Trade creditors 9,739 5,435

Other taxation and social security 3,412 2,057

Other creditors and accruals 6,204 3,724

19,355 11,216

14 Movement in funds

At 1 April

2016

Net movement in

funds

Transfer between

funds

At 31 March

2017

£ £ £ £

Unrestricted Funds

General fund 754,761 (50,872) (10,000) 693,889

Capital expenditure 10,000 - 10,000 20,000

764,761 (50,872) - 713,889

Restricted Funds

Restricted funds

392 10,879 - 11,271

392 10,879 - 11,271

Total Funds 765,153 (39,993) - 725,160

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

Incoming

resources

Resources

expended

Net movement

before transfer

Transfer

between funds

Net movement

in funds

£ £ £ £ £

Unrestricted Funds

General fund 264,414 (315,286) (50,872) (10,000) (60,872)

Capital expenditure - - - 10,000 10,000

264,414 (315,286) (50,872) - (50,872)

Restricted Funds

Restricted funds 13,521 (2,642) 10,879 - 10,879

Total Funds 277,935 (317,928) (39,993) - (39,993)

Capital expenditure designated fund is a reserve for the purpose of investing in capital assets in future years.





15 Legal status of the Charity

The charity is a company incorporated in England and Wales and limited by guarantee. It has no share capital. The level

of guarantee for each member is limited to £10 per member.

16 Related party transactions

As at 31 March 2017 there is a balance due from The Basingstoke and Alton Cardiac Rehabilitation Enterprises Limited,

which is a subsidiary of the charity, of £nil (2016: £133).

17 Post Balance Sheet Events

Following a review of the business of The Basingstoke and Alton Cardiac Rehabilitation Enterprises Limited and its

prospects, it was decided that the shop could not be put onto a sustainable, profitable footing, and after the year end the

shop was closed. The inter-company balance of £5,168 owed to the Enterprises company by the Charity has been written

back in these accounts.

Martin Lovell, General Manager, resigned with effect from 15th September 2017. The appointment of Nikki Radcliffe,

Chief Executive Officer, has been made with effect from 11th September 2017.



Detailed Statement of Financial Activities


2017 2016

£ £

Incoming Resources

Donations and Legacies

Covenants 6,077 4,551

Donations and gifts 30,698 27.841

Legacies 598 5,435

In Memoriam 8,117 8,487

Unrestricted income 45,490 46,314

Restricted income 13,521 2,470

Total Donations and Legacies 59,011 48,784

Other activities

Events takings 57,586 32,498

Grand Draws 17,073 15,305

Lottery 4,145 -

Sales 4,709 8,986

100 Club donations 2,650 2,621

Corporate sponsorship 135 -

Flag days and collection tins 9,945 5,331

96,243 64,741

Investment income

Bank deposit income 4,765 5,046


Exercise classes 113,610 110,188

Room hire 3,640 3,280

Other income 160 5,526

Grants 506 6,500

117,916 125,494

Total incoming resources 277,935 244,065

This page does not form part of the statutory financial statements.



Detailed Statement of Financial Activities


2017 2016

£ £

Expenditure

Raising donations and legacies

Salaries 24,611 10,971

National Insurance contributions 1,946 -


Publicity 5,275 2,675

Events expenses 12,523 6,670

Purchases 2,050 1,897

46,605 22,213


Salaries 118,442 92,516

National Insurance contributions 3,332 4,485


Rent, rates and water 4,156 3,726

Insurance 1,764 2,881

Light and heat 9,358 7,746

Telephone 3,563 3,182

Postage and stationery 8,620 6,185

Sundries 96 -

Cleaning 7,932 6,765

Repairs and maintenance 9,704 5,440

Repairs and maintenance – ex Restricted Income 1,247 -

Health and safety 154 -

Subscriptions 307 380

Travel expenses 654 897

Staff recruitment 2,536 990

Bank charges 239 219

Staff refreshments 1,073 1,355

Staff uniforms 224 -

Training 285 -

Training – ex Restricted income 576 -

Physical training instructors 63,532 62,746

Research salaries - 2,419

Course management expenditure 72 987

IT costs 7,333 8,294

Depreciation – leasehold property 9,180 9,232

Depreciation – fitness equipment 7,144 8,737

Depreciation – fitness equipment – on Restricted Assets 760 -

Depreciation – office equipment 825 1,198

Depreciation – office equipment – on Restricted Assets 59 -

Loss on disposal of assets 3,885 -

Write back of intercompany balance (5,168) -

262,425 230,380

Support costs

Independent Examiner’s fee and

Accountancy fees 3,720 2,172

Legal fees - 1,980

Bookkeeping and payroll fees 1,963 1,813

Consultancy 3,215 -

8,898 5,965

Total resources expended 317,928 258,558

Net expenditure (39,993) (14,493)

This page does not form part of the statutory financial statements.

The Basingstoke and Alton Cardiac Rehabilitation …...Ellis Whittam Limited Woodhouse Aldford...

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