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2020-12-31-accounts

Company Number: 3412274

GYMNASTICS IN IPSWICH

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Charity Number: 1064714

GYMNASTICS IN IPSWICH

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

CONTENTS PAGE
Reference & Administrative Information 1
Directors’ & Trustees’ Report 2 - 6
Independent Examiner’s Report to the Trustees of Gymnastics In Ipswich 7
Statement of Financial Activities 8
Balance Sheet 9
Statement of Cash Flows 10
Notes to the Financial Statements 11 – 19
The following pages do not form part of the
Statutory Financial Statements
Detailed Income and Expenditure Account 20 - 21

GYMNASTICS IN IPSWICH

REFERENCE & ADMINISTRATIVE INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2020

HONORARY CO - PRESIDENTS: Mr. J. Hodgson Mr. A. Whetstone THE BOARD OF DIRECTORS & TRUSTEES: Mr. B. Bartlett Trustee and Director Mrs. R. Day Trustee, Director and Vice-Chairperson Mr. M.J.J. Doyle Trustee, Director and Company Secretary Mr. J. Garnham Trustee and Director Mr. C.R. Hackett Trustee and Finance Director Mrs. E. Woollard Trustee, Director and Chairperson COMPANY SECRETARY: Mr. M.J.J. Doyle KEY MANAGEMENT PERSONNEL: ADMINISTRATION / FINANCE MANAGER: Mrs. L. J. Stopher FACILITIES MANAGER Mr. S. Kemp COMPANY NUMBER: 3412274 CHARITY NUMBER: 1064714 REGISTERED OFFICE: 7 Braziers Wood Road IPSWICH Suffolk IP3 0SP BANK: Lloyds Bank plc Cornhill IPSWICH IP1 1AQ INDEPENDENT EXAMINERS: Ensors Accountants LLP Connexions 159 Princes Street IPSWICH IP1 QJ

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GYMNASTICS IN IPSWICH

DIRECTORS’ & TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The Directors and Trustees present their Report and Financial Statements for the year ended 31st December, 2020.

The information on Page 1 forms part of this Report.

Objectives of the Charity, Principal Activities and Organisation of its Work

The Charity is constituted as a Company Limited by Guarantee and is therefore governed by a Memorandum and Articles of Association.

The Charity’s objectives and principal activities continue to be that of providing facilities, equipment and expert coaching for the benefit of the community of Ipswich and the surrounding area to teach gymnastics, physical education and development of social welfare in order to enable participants to reach their full potential.

When reviewing these aims and objectives, the Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit.

The Charity’s Board of Directors meets, on a bi-monthly basis, to manage its’ affairs. Our coaching management and coordination arrangements are provided by four Heads of Department - each of whom specialise in one of the Charity’s four major gymnastic activity arenas. The Heads of Department are responsible for inclusive participation - along with gymnast and staff development - in their respective areas of expertise and they are all employed on a full-time basis.

Covid-19

At the very beginning of 2020, the Company was presented with a series of challenges emanating from the onset of the Covid-19 pandemic.

As of 21st March, 2020, sports facilities were instructed by national Government to close - with immediate effect - in order to protect public health from Covid-19 whilst helping to curb its’ spread. Due to the extreme and unprecedented nature of the virus, this imposition of lockdown stayed in place until 25[th] July, 2020. The Centre was then able to re-open on a ‘phased return’ basis to fit in line with Government and gymnastics’ governing body instructions. Due to social distancing measures, class numbers had to be reduced and ‘ social distancing bubbles’ of staff and customers was adopted.

A second national lockdown came into effect from 4[th] November to 2[nd] December and finally a local ‘ Tier 4’ shutdown was introduced from 26[th] December leading into 2021. To cover these successive periods of proscribed access to our Centre, the majority of our staff were furloughed with effect from 22[nd] March and the Company was registered with the Governments’ Coronavirus Job Retention Scheme. During the course of the year, the Company made claims on the Government’s CJRS totaling £154,484.

In Centre management and service provision terms, a number of key actions were taken by the Charity’s management in response to the pandemic. These included:

All of the actions listed were introduced to protect Company assets and income, to minimise expenditure, to be compliant with regards to planning and delivering changes; to provide pastoral support for staff; to enable communication with members via e-mail and social media channels and to generate ‘ virtua l’ activities for members to maintain their engagement and interest.

Due to the reduction in the Centre’s capacity due to social-distancing rules, the Charity needed to reduce the number of new enrolees. This negatively impacted on our self-generating income for the foreseeable future although squad membership income is expected to be maintained. Unfortunately, it is the more profitable Recreational and Pre-School Classes that are bearing the brunt financially of these essential restrictions. The Company’s management team is carefully monitoring staffing levels and expenditure on these service areas to ensure best levels of safety, service, manageability and profitability.

The Trustees are confident that the Charity is still very much viable despite profiling a trading deficit in 2020. With careful planning for 2021 and beyond - including frequent reviews and timely decisive actions - we feel confident that Gymnastics In Ipswich can survive the ‘ storm ’ of 2020. We believe that 2021will be equally challenging but we have every confidence in the entire Gymnastics In Ipswich team - with its’ established and knowledgeable staff base, loyal customers, a well-maintained facility and a reasonable reserve of funds.

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GYMNASTICS IN IPSWICH

DIRECTORS’ & TRUSTEES’ REPORT (Cont’d)

FOR THE YEAR ENDED 31 DECEMBER 2020

Developments, Activities and Achievements during the past Twelve Months

The Directors consider the performance of the Charity for the year ended 31 December 2020 as pleasing - given the trials that this unprecedented time has thrown at us. They would like to acknowledge and thank those members of staff who were not furloughed for their strong leadership and adaptability in thinking outside the box. During lockdowns, these staff ran classes on-line to keep gymnasts engaged both sportingly and socially. Fundraising and donations from parents in lieu of fees played a very large part of the income for the year. Without their generosity the club would have ended the year in a much worse situation than the 2020 out-turn demonstrates. We are very lucky to be a Club that can rely on its people, whether they be clients, employees or volunteers.

During the lockdown periods, the Charity also made use of the ‘ dead time’ inside the facility to carry out its routine servicing and repairs contracts, thus minimising downtime once we were given the go ahead to re-open.

The overhead heating and gas boilers were serviced along with PAT and Fixed electrical tests. The pandemic has seen the Centre review its procedures and the flow of customers around the building to ensure that we were able to allow people to socially distance and to ensure that we maintained a building that was as safe and secure as possible.

Recreational and Pre-School Classes

Recreational Class numbers were at capacity pre-lockdown. Following the implementation of social distancing regulations from 25[th] July, the revised maximum numbers were 30% lower than pre-pandemic levels. To manage demand for those wanting to return, a waiting list was introduced to phase the return of gymnasts to this, our largest and most heavily financial grossing department. This reduced capacity, in turn, meant that, post-lockdown, we were not able to sign up any new members for the whole of 2020. Any spaces that came up were needed to welcome back members who were current at the time of closure. The effect this has had on our waiting list for new starters means that we are now anticipating an average ‘ wait time’ of 1 year to join.

Pre-School Classes likewise had reduced capacity of 20% immediately post re-opening. Whilst this caused some disruption in the early days, by September - when children started school - the revised capacity levels became more manageable and we were able to welcome some new children from the waiting list.

It has been a challenging year for our coaches not only to keep themselves and their colleagues safe, but to ensure that Covid protocols are adhered to in a manner that does not frighten the children - all whilst providing a progressive and fun gymnastics session for children who have little comprehension of what social distancing actually means. They have worked in ‘bio-secure bubbles’ and have been flexible in their working days and times to enable these.

Elite / Performance Gymnastics

There have been no competitions during 2020. The Club’s main focus has been to keep our members safe, healthy and sociably engaged whilst being systematic and sympathetic when returning to ‘ in gym’ training. In this context, it has proven important to ensure that gymnasts were not pressured to return too quickly to pre-lockdown levels and, in the process, risk unnecessary injuries.

Gymnasts that were selected for County, Regional and National Squads for 2020 have had their places rolled over to 2021.

Casual Classes & Parties

Post-lockdown, we restarted our Casual Sessions from mid-September. Due to the “ free roaming ” style of these classes, we had to cut capacity by 70%. This had a major impact on the overall year-end income for this Department. Likewise, our Party format and pricing also needed major adjustment and suffered the same financial consequences.

Competition Usage

Suspended. Hosting of County and Regional Competitions that are contracted will have the missing year added to the end of the current contract.

Administration and “Front of House”

The “ Front of House ” team have adapted well to the trials and tribulations of staying on track with bookings and payments in a ‘ stop / start’ year. The key to the smooth return of members has been regular and clear communication, taking time to explain and reassure our members that we are open for business. Also diplomatically asking for fees to be donated in part or whole towards our fund raising efforts, whilst being mindful of their personal situation.

The Reception desk has had Perspex screening installed to help reduce the risk of virus transmission between staff and customers. A new one-way system of entry into and exit from the building was created to provide a Covid secure facility which also included the purchase of a thermal temperature system to be used on entry to the building. Risk assessments were reviewed and a Covid specific one was created. This has been updated throughout the pandemic and displayed on our website.

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GYMNASTICS IN IPSWICH

DIRECTORS’ & TRUSTEES’ REPORT (Cont’d)

FOR THE YEAR ENDED 31 DECEMBER 2020

Future Development

The two development projects listed in last year’s accounts are still under consideration for the future and are listed below. However, a period of consolidation is now required whilst we recover from the deficits caused by the pandemic. We need to spend a period of time rebuilding our financial stability by taking every opportunity to generate income whilst limiting spending to essential items only.

The overhead heating in the Main Gymnasium is over 20 years old and coming towards the end of its’ efficient lifespan. Contractors have been invited to submit recommendations for a modern improved heating system that is easier to service and maintain. It is planned to upgrade the current heating system with one that does not require high level maintenance and will have a ground-level plant room located externally at the rear of the gymnasium. This will minimize future servicing disruption to gymnasium bookings and will provide a system maintaining a constant temperature in each room whilst reducing gas consumption via a hot-air circulatory system. This was initially planned to take place during August 2020; however, the Covid-19 pandemic has obliged the project to be put on hold until early 2022.

With the ever-growing waiting lists and the limitations placed on us by the current confines of our facility, serious consideration is again being given to the practicalities of expansion - by way of the acquisition of a 3[rd] gymnastics hall. Ipswich Borough Council are presently unable to offer us a shared use of their adjacent sports Centre but, at the same time, the Council has advised that they have appointed consultants to look at the use of their sporting facilities as a whole and have invited the Charity to submit a business case setting out our proposals for a facility extension.

Transactions and Financial Position

The Statement of Financial Activities (Page 8) shows total income for the year as £646,350 (2019: £975,354). Expenditure during the period amounted to £793,892 (2019: £954,769) - resulting in net expenditure of £147,542 (2019: a surplus of £20,585). However, this deficit includes equipment depreciation, loss on disposal of equipment totaling £70,572 (2019: £77,298). The Charity’s operating deficit - before the provisions for these costs - was (£76,970) (2019: a surplus of £97,883). In addition to the above, the charity also received £95,000 following a successful claim under its business interruption insurance in relation to the disruption caused by the COVID-19 pandemic.

Fundraising

In normal times, the Charity is in the fortunate position of being able to internally generate its’ own funds through the provision of gymnastics classes, competitions, room hire and the sales of clothing, food and drink. However, during the year and as a result of the restrictions imposed by COVID-19, the Charity has been much more reliant upon government provided grants and donations from other external funders.

During the year the Charity has claimed under the Government Coronavirus Job Retention Scheme (CJRS), raised additional funds through a gofundme page and has undertaken radio interviews to generate voluntary donations. The Charity has not used any third parties to raise funds on its behalf and has not received any complaints regarding fundraising.

Reserves Policy

The Trustees review the Charity’s reserves at all regular Trustees’ meetings. In line with the recommendations of the Charity Commissioners and Companies House, the level of contingency funds held in reserve is set taking into account parameters such as staff numbers, monthly expenditure, notice periods, existing commitments and future outlook. These recommendations suggest that the Charity should hold a reserve equating to six months of normal trading requirement.

The Charity’s free reserves (see page 9) were £467,988 at the year-end. The Charity’s operating costs for 2020 totalled £793,892 which indicates that, at this time, a balance of £396,946 is needed to be held in reserves. At first sight, therefore, the Charity’s current free reserves appear to be adequate - some £71,042 more than the prescribed level. However, the Board are of the view that our spending levels in 2020 are hardly representative of the Charity’s normal operating costs - constrained as they have been by our prolonged periods of inactivity because of the pandemic. If we again use the 2019 spending volume as a more realistic measure of our operating costs, we need free reserves of £477,385 and our current balance sits slightly below this amount by £9,397. This position has been aided significantly by the receipt of £95,000 following a successful claim under the Charity’s business interruption insurance policy. This was somewhat unexpected as it was initially uncertain whether the Charity would be able to claim.

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GYMNASTICS IN IPSWICH

DIRECTORS’ & TRUSTEES’ REPORT (Cont’d)

FOR THE YEAR ENDED 31 DECEMBER 2020

Risk Management

At their regular Board meetings, the Trustees actively review the major risks faced by the Charity. The Charity’s risk management policies are subject to regular, close scrutiny as part of the Charity’s performance monitoring arrangements. The principal risks identified by the Trustees and the control procedures used to mitigate against these risks are:

Investment Policy

All funds are initially held in a commercial current account with Lloyds Bank plc. Whenever any of these funds become available for investment - on a short term basis - they are transferred to one of five investment / deposit accounts to secure the best rate of return available in accordance with Trustees’ instructions and approvals. This investment policy and its application are regularly subject to review by the Trustees.

Staff Remuneration Policy

In framing its’ staff remuneration policy, the Trustees have adopted an approach which takes account of the Charity’s need to be competitive and economical whilst safeguarding the staff’s entitlement to a “ fair day’s pay for a fair day’s work ”. The Charity utilises a pay rate structure which relates to both coaching and administrative staff and recognises the pay differentials required for application to all staff by virtue of age, status, qualifications, experience and the span of individual responsibilities. Our minimum pay rates comply with the government’s advice re the recommended National Living Wage whilst our highest pay rates are regularly re-assessed and validated by comparison with our gymnastic and sporting competitors throughout East Anglia. To this end, the Charity conducts an annual pay review which takes account of increases in the ‘ cost of living’ , changes in our competitors’ pay rates and the need to reward our staff for performance over and above the Charity’s expectations.

Trustees and Directors

The Trustees and Directors of the Company throughout the year unless otherwise stated are as shown on Page 1. ( Nobody has any beneficial interest in the Company.)

Appointment of Directors and Trustees

When a vacancy occurs for a co-opted Trustee, the remaining Trustees seek to appoint an individual with skills and experience which they feel will be of benefit to the Charity. All prospective Trustees are given a copy of the document “Roles and Responsibilities of a Trustee” and have the opportunity to ‘ sit-in’ at a regular Board of Directors’ meeting. There is no formal induction and training programme but individual Trustees attend seminars and other functions to update themselves.

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GYMNASTICS IN IPSWICH

DIRECTORS’ & TRUSTEES’ REPORT (Cont’d)

FOR THE YEAR ENDED 31 DECEMBER 2020

TRUSTEES' RESPONSIBILITIES

The Charity’s Trustees (all of whom are also Directors of Gymnastics In Ipswich for the purposes of company law) are responsible for preparing a Trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Charity’s Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the Charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company for that period. In preparing the financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence 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 Charitable Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees’ report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Signed on behalf of the Company:

Mrs. E. Woollard Trustee, Director and Chairperson Approved by the Board of Directors on ……………………………….

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GYMNASTICS IN IPSWICH

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF GYMNASTICS IN IPSWICH

FOR THE YEAR ENDED 31 DECEMBER 2020

I report to the trustees on my examination of the accounts of Gymnastics in Ipswich (the Charity) for the year ended 31 December 2020.

Responsibilities and basis of report

As the trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’) and the Charities Act 2011 (‘the 2011 Act’).

Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement – matter of concern identified

The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of The Institute of Chartered Accountants in England and Wales (ICAEW).

I have completed my examination. As disclosed within note 1A to the financial statements, it is considered that there is a material uncertainty in relation to going concern as a result of the adverse impact caused by the COVID-19 pandemic. The Charity operates in an industry which has been significantly affected by the mitigation measures put in place by the UK government in response to the COVID-19 pandemic. The industry’s ability to continue its activities at commercially viable levels is dependent upon the continuing policy decisions of the UK government in response to the COVID-19 pandemic and the level of demand in the industry once restrictions are lifted. The uncertainty behind these conditions indicate an existence of a material uncertainty which may cast doubt on the Charity’s ability to continue as a going concern.

I confirm that no other material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Mrs. H. Rumsey FCA

Ensors Accountants LLP Connexions 159 Princes Street IPSWICH IP1 1QJ

27th September 2021 Date……………………….

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GYMNASTICS IN IPSWICH

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 DECEMBER 2020

INCOME FROM:
Donations, Grants and Legacies
Charitable Activities
Trading Activities
Other Income
Investment Income
TOTAL INCOME
EXPENDITURE ON:
Raising Funds
Charitable Activities
TOTAL EXPENDITURE
NET INCOME / EXPENDITURE
Extraordinary items
Transfers between Funds
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total Funds Brought Forward
TOTAL FUNDS CARRIED FORWARD		 Notes
2
3
4
5
6
7
8
12
19
13		 Unrestricted
Funds
£
164,810
437,584
19,784
662
172
623,012
(15,700)
(703,169)
(718,869)
(95,857)
95,000
(4,880)
(5,737)
473,725
467,988		 Designated
Funds
£
22,283
-
-
-
-
22,283
-
(74,724)
(74,724)
(52,441)
-
4,880
(47,561)
1,461,154
1,413,593		 Restricted
Funds
£
-
-
1,055
-
-
1,055
(299)
-
(299)
756
-
-
756
3,398
4,154		 Total
2020
£
187,093
437,584
20,839
662
172
646,350
(15,999)
(777,893)
(793,892)
(147,542)
95,000
-
(52,542)
1,938,277
1,885,735		 Total
2019
£
-
823,184
147,639
4,277
254
975,354
(74,345)
(880,424)
(954,769)
20,585
-
-
20,585
1,917,692
1,938,277

All of the above results are derived from continuing activities.

The Company has no recognised Gains or Losses other than the results for the year as shown above.

The Notes on pages 11 to 19 form part of the Financial Statements.

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GYMNASTICS IN IPSWICH

BALANCE SHEET

AS AT 31 DECEMBER 2020

FIXED ASSETS
Tangible Assets
CURRENT ASSETS
Stocks
Debtors
Cash at Bank and in Hand
CURRENT LIABILITIES
Creditors: Amounts falling due within one year
NET CURRENT ASSETS
NET ASSETS
THE FUNDS OF THE CHARITY:
Unrestricted
Designated
Restricted		 Notes
14
15
16
17
19
20		 £
£
1,413,593
6,645
96,000
418,072
520,717
(48,575)
472,142
1,885,735
467,988
1,413,593
4,154
1,885,735
2020		 £
£
1,461,154
8,123
2,937
530,179
541,239
(64,116)
477,123
1,938,277
473,725
1,461,154
3,398
1,938,277
2019		 £
£
1,461,154
8,123
2,937
530,179
541,239
(64,116)
477,123
1,938,277
473,725
1,461,154
3,398
1,938,277
2019
1,938,277
473,725
1,461,154
3,398
1,938,277

These Financial Statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

In respect of 2020 the Board of Directors and Trustees are of the view that the charitable company meets the conditions for exemption from an audit as set out in the Charities Act 2011.

Accordingly, the Directors and Trustees hereby declare that;

The company is eligible to take advantage of the audit exemptions;

The members have not required the company to obtain an audit of its' financial statements for the year in accordance with section 476 of the Act; and

The Board of Directors and Trustees acknowledge the charitable company's obligations to keep proper accounting records and to prepare financial statements which give a true and fair view of the state of the company's affairs and of its' profit or loss for the period.

Approved by the Board of Directors and Trustees on …................................................ and signed on their behalf by:

Mrs. E. Woollard Mrs. L. J. Stopher Trustee, Director and Chairperson Administration / Finance Manager

Company No. 3412274

The Notes on pages 11 to 19 form part of the Financial Statements.

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GYMNASTICS IN IPSWICH

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash Provided by Operating Activities
25
Cash Flows from Investing Activities:
Interest Income
Purchases of Tangible Fixed Assets
Cash Used in Investing Activities
Increase/(Decrease) in Cash and Cash Equivalents in the year
Cash and Cash Equivalents at the beginning of the year
Total Cash and Cash Equivalents at the end of the year		 Total
2020
£
(89,268)
172
(23,011)
(22,839)
(112,107)
530,179
418,072		 Total
2019
£
101,896
254
(87,897)
(87,643)
14,253
515,926
530,179

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GYMNASTICS IN IPSWICH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (as amended for accounting periods commencing from 1 January 2019) and the Companies Act 2006.

Gymnastics In Ipswich meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest pound.

Due to the Covid-19 pandemic and the UK Government’s subsequent restrictions on the sector to prohibit access to sporting facilities, the Trustees consider there to be an uncertainty which exists that may cast significant doubt on the Charity’s ability to continue as a going concern in the future. There is, however, no expectation that the Charity will not remain a going concern for the twelve months subsequent to the signing of these financial statements. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

B. BASIS OF FUND ACCOUNTING

General Funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for, or restricted to, other purposes.

Designated Funds are funds that have been set aside by the Trustees for a particular purpose.

Restricted Funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the Notes to the Financial Statements.

C. TANGIBLE FIXED ASSETS FOR USE BY THE CHARITY AND DEPRECIATION

Tangible fixed assets for use by the Charity are stated at cost less depreciation.

Depreciation is provided at rates calculated to write off the cost of fixed assets less their estimated residual value, over their estimated useful lives, on the following bases;

Permanent Centre – over the remaining lease term Fixtures, Fittings and Equipment - 15% reducing balance.

The gain or loss arising upon disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in net income / (expenditure) for the year.

At each reporting date, the Charity reviews the carrying amounts of its’ tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Charity estimates the recoverable amount of the cash-generating unit to which the asset belongs.

D. INCOME

Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Activity fees are charged principally to casual users and also to members as and when facilities are used. Voluntary income and donations are accounted for as and when received by the Charity. Income from fund raising activities is shown gross with associated costs included as fund raising expenditure. The income is accounted for by the Charity as and when received.

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GYMNASTICS IN IPSWICH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (Cont’d)

E. INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the Bank.

F. EXPENDITURE AND IRRECOVERABLE VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly; others are apportioned on an appropriate basis.

G. STOCKS

Stocks are valued at the lower of cost and net realisable value.

H. CASH AT BANK AND IN HAND

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

I. TAXATION

Gymnastics in Ipswich is exempt from corporation tax on charitable activities.

J. TRUSTEES’ REMUNERATION

No remuneration was paid to any member of the Board of Directors.

K. OPERATING LEASES

Rentals payable under operating leases are charged against income on a straight-line basis over the lease term.

L. PENSIONS

The Charity operates a defined contribution pension scheme for all qualifying employees. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.

12

GYMNASTICS IN IPSWICH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (Cont’d)

M. EMPLOYEE BENEFITS

The cost of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

N. FINANCIAL INSTRUMENTS

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its’ financial instruments. Financial instruments are recognised in the Charity’s balance sheet when the Charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognisable amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method.

O. CRITICAL ESTIMATES AND JUDGEMENTS

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical and other factors that are considered to be relevant.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period or in the period of the revision and future periods where the revision affects both current and future periods.

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in useful economic lives and residual values of assets.

13

GYMNASTICS IN IPSWICH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Donations
Grants
Comparative Total
Club Classes
Club Fees
Room Hire
Affiliation and Competition Fees
Other
Comparative Total
Tuck Shop and Vending Sales
100 Club
Xmas Pudding / Egg Hunt
Quizzes, Raffles and Draws
Summer Camp
Christmas Show
Recreational Competitions
Presentation Evening
Sales of Clothing
Other Fund Raising
Comparative Total
Comparative Total
Comparative Total
Bank & Building Society Interest
3. CHARITABLE ACTIVITIES
4. TRADING ACTIVITIES
5. OTHER INCOME
Miscellaneous Income
6. INVESTMENT INCOME
2. DONATIONS, GRANTS AND LEGACIES		 Unrestricted
Funds
£
326
164,484
164,810
-
162,503
239,501
24,516
9,969
1,095
437,584
823,184
9,161
936
1,068
408
-
150
-
4,122
3,928
11
19,784
142,319
662
662
4,277
172
172
254		 Designated
Funds
£
16,258
6,025
22,283
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
300
-
-
-
-
-
-		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,055
1,055
5,020
-
-
-
-
-
-		 Total
2020
£
16,584
170,509
187,093
162,503
239,501
24,516
9,969
1,095
437,584
9,161
936
1,068
408
-
150
-
4,122
3,928
1,066
20,839
662
662
172
172		 Total
2019
£
-
-
-
-
346,513
397,459
54,794
22,370
2,048
823,184
823,184
40,878
840
1,550
1,104
30,428
6,468
29,748
3,004
23,857
9,762
147,639
147,639
4,277
4,277
4,277
254
254
254

14

GYMNASTICS IN IPSWICH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Designated
Funds
Funds
£
£
7. ANALYSIS OF EXPENDITURE ON RAISING FUNDS
Tuck Shop and
Vending Purchases (Adjusted)
(6,653)
-
100 Club
(324)
-
Xmas Pudding / Egg Hunt
(375)
-
Summer Camp
-
-
Presentation Evening
(2,680)
-
Christmas Show
(16)
-
Clothing Purchases (Adjusted)
(3,068)
-
Other Fund Raising Expenses
(2,584)
-
(15,700)
-
Comparative Total
(67,775)
-
8. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
GYMNASTICS
Staff Costs
(607,251)
-
Affiliation Fees
(1,190)
-
Competition Fees & Expenses
(3,245)
-
Gymnasium Chalk & Tape
(797)
-
Other
(17,639)
(252)
Governance Costs (see Note 10)
(14,342)
-
Support Costs (see Note 11)
(58,705)
(74,472)
(703,169)
(74,724)
Comparative Total
(780,038)
(100,386)		 Designated
Funds
£
-
-
-
-
-
-
-
-
-		 Restricted
Funds
£
-
-
-
-
-
-
-
(299)
(299)		 Total
2020
£
(6,653)
(324)
(375)
-
(2,680)
(16)
(3,068)
(2,883)
(15,999)
(607,251)
(1,190)
(3,245)
(797)
(17,891)
(14,342)
(133,177)
(777,893)		 Total
2019
£
(25,659)
(433)
(377)
(11,402)
(1,324)
(2,055)
(21,163)
(11,932)
(74,345)
(6,570)
-
-
-
-
-
-
-
-
-		 (74,345)
(640,868)
(5,015)
(13,258)
(2,036)
(25,006)
(14,881)
(179,360)
(880,424)
(880,424)

9. STAFF COSTS

Staff Costs are detailed as follows;

Contractual Pay Costs
Salaries & Wages
Employer's National Insurance
Employer's Pension Contributions
Their Whole-Time Equivalence was
Number of Employees earning £60,000 p.a. or more
The Average Number of Employees during the year was		 2020
£
(3,934)
(564,874)
(29,932)
(8,511)
(607,251)
Nil
57.68
26.03		 2019
£
(5,354)
(594,518)
(33,315)
(7,681)
(640,868)
Nil
58.75
25.81

15

GYMNASTICS IN IPSWICH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

10. GOVERNANCE COSTS
Audit Fees
Examination Fees
Accountants' Fees
Other Professional Fees
Bank Charges
Comparative Total		 Unrestricted
Funds
£
(3,770)
(1,500)
(7,496)
(13)
(1,563)
(14,342)
(14,881)		 Designated
Funds
£
-
-
-
-
-
-		 Restricted
Funds
£
-
-
-
-
-
-		 Total
2020
£
(3,770)
(1,500)
(7,496)
(13)
(1,563)
(14,342)		 Total
2019
£
(6,550)
-
(6,130)
-
(2,201)
(14,881)
(14,881)

No remuneration was paid to any member of the Board of Directors. (2019: £Nil).

No expenses were re-imbursed to any member of the Board of Directors. (2019: £Nil)

During 2020, the key management personnel of the Charity comprised the Trustees, the Administration / Finance Manager and the Facilities Manager.

As a result, the total employee benefits of the key management personnel of the Charity were £75,704 (2019: £75,430).

11. SUPPORT COSTS
Premises Costs
Administrative Expenses
Depreciation
Loss on Disposal of Tangible Fixed Assets
Other Expenses
Comparative Total		 (45,234)
(8,309)
-
-
(5,162)
(58,705)
(87,561)		 (2,828)
(338)
(67,962)
(2,610)
(734)
(74,472)
(91,799)		 -
-
-
-
-
-
-		 (48,062)
(8,647)
(67,962)
(2,610)
(5,896)
(133,177)		 (71,568)
(21,434)
(67,243)
(10,055)
(9,060)
(179,360)
(179,360)

12. EXTRAORDINARY ITEMS

The Charity has received a £95,000 insurance payment under its business interruption policy in relation to the disruption caused by the COVID-19 pandemic.

The payment has been deemed an extraordinary item as the outcome of the insurance claim was unexpected and is not expected to be recurring in normal conditions. The proceeds of the insurance claim were received in full after the year end.

13. NET MOVEMENTS IN FUNDS FOR THE YEAR

The net movement in funds for the year ended 31 December, 2020 is stated after charging:

2020 2019
£ £
Operating Leases - Equipment (2,994) (4,996)
Net Loss on Disposals of Tangible Fixed Assets (2,610) (10,055)
Depreciation of Tangible Fixed Assets for use by the Charity (67,962) (67,243)
Auditor's / Examiner's Fees (5,270) (6,550)
Accountants' Fees (7,496) (6,130)
Other Professional Fees (13) -

16

GYMNASTICS IN IPSWICH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

14. TANGIBLE FIXED ASSETS

LEASEHOLD
PROPERTY
£
COST
At 1st January 2020
1,893,685
Additions
7,005
Disposals
(1,598)
At 31st December 2020
1,899,092
DEPRECIATION
At 1st January 2020
(561,746)
Depreciation Charge
(46,180)
Depreciation on Disposals
618
At 31st December 2020
(607,308)
NET BOOK VALUE
At 31st December 2020
1,291,784
At 31st December 2019
1,331,939
15. STOCKS
Stocks for Re-sale
16. DEBTORS
Trade debtors
Pre-payments
Other debtors
17. CREDITORS
Amounts falling due within one year:
Trade Creditors
Accruals and Deferred Income
Social Security and other Taxes
Deferred Income
Balance at 31 December 2019
Amounts released to income earned from charitable activities
Amounts deferred in the year
Balance at 31 December 2020		 FIXTURES,
FITTINGS &
EQUIPMENT
£
343,576
16,006
(6,919)
352,663
(214,361)
(21,782)
5,289
(230,854)
121,809
129,215
2020
£
6,645
736
264
95,000
96,000
(4,161)
(36,495)
(7,919)
(48,575)
35,353
(35,353)
14,708
14,708		 TOTALS
£
2,237,261
23,011
(8,517)
2,251,755
(776,107)
(67,962)
5,907
(838,162)
1,413,593
1,461,154
2019
£
8,123
2,189
748
-
2,937
(12,163)
(41,933)
(10,020)
(64,116)
40,859
(40,859)
35,353
35,353

Deferred Income relates to receipts in respect of 2021 bookings and courses received in advance.

18. MEMBERS' GUARANTEES

The Company is limited by guarantee and does not have a share capital. Every member of the Company undertakes to contribute to the assets of the Company if it is wound up during the time that he or she is a member, or within one year thereafter, for payment of the debts and liabilities of the Company contracted before the time at which he or she ceases to be a member and of the costs of winding up and for adjustments of the rights of the contributors among themselves such amount as may be required not exceeding £1.

17

GYMNASTICS IN IPSWICH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

19. DESIGNATED FUNDS

For the year ended 31 December 2020
Leasehold Property
Fixtures, Fittings and Equipment
Contingency Fund - Emergency Repairs & Renewals
Corona Return Project
"Sage" Accounting Project		 Balance
1 January
2020
£
1,331,939
129,215
-
-
-
1,461,154		 Income
£
-
-
6,025
16,258
-
22,283
Movement in		 Expenditure
£
(47,160)
(23,412)
(721)
(2,697)
(734)
(74,724)
Resources		 Transfers
from
Unrestricted
Funds
£
7,005
16,006
(5,304)
(13,561)
734
4,880		 Balance
31 December
2020
£
1,291,784
121,809
-
-
-
1,413,593

Each of the above provisions represent commitments approved by the Trustees for which the funds required have been set aside by the Charity from its' own resources. In each case, the Transfers to and from Unrestricted Funds serve to finance the net (surplus) / deficit resulting from the current year's income and expenditure.

For the year ended 31 December 2019
Leasehold Property
Fixtures, Fittings and Equipment
Contingency Fund - Emergency Repairs & Renewals
Internal Building Adaptations - Facilities Manager
"Sage" Accounting Project
Gas Boiler Heating System
Replacement Fire Doors		 Balance
1 January
2019
£
1,303,891
146,664
-
-
-
-
-
1,450,555		 Income
£
-
-
300
-
-
-
-
300
Movement in		 Expenditure
£
(46,810)
(30,488)
(11,044)
(4,633)
(4,248)
(2,159)
(1,004)
(100,386)
Resources		 Transfers
from
Unrestricted
Funds
£
74,858
13,039
10,744
4,633
4,248
2,159
1,004
110,685		 Balance
31 December
2019
£
1,331,939
129,215
-
-
-
-
-
1,461,154
20. RESTRICTED FUNDS
For the year ended 31 December 2020
International Events		 Balance
1 January
2020
£
3,398
3,398		 Income
£
1,055
1,055
Movement in		 Expenditure
£
(299)
(299)
Resources		 Transfers
from
Unrestricted
Funds
£
-
-		 Balance
31 December
2020
£
4,154
4,154

The above project has been approved by the Trustees for implementation, subject to its' costs being agreed and financed - in whole or in part - by Grants and Donations from external sources.

The "International Events " Fund was initiated in conjunction with a number of Donors to enable the Charity's gymnasts and coaches to participate in international events and competitions as part of their "Elite" coaching and development. The balance as at 31st December, 2020 represents the value of funds remaining to continue the project, year-on-year, in accordance with the Donors' wishes.

For the year ended 31 December 2019
International Events		 Balance
1 January
2019
£
4,948
4,948		 Income
£
5,020
5,020
Movement in		 Expenditure
£
(6,570)
(6,570)
Resources		 Transfers
from
Unrestricted
Funds
£
-
-		 Balance
31 December
2019
£
3,398
3,398

18

GYMNASTICS IN IPSWICH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

For the year ended 31 December 2020
Tangible Fixed Assets
Current Assets
Current Liabilities
For the year ended 31 December 2019
Tangible Fixed Assets
Current Assets
Current Liabilities		 Unrestricted
£
-
516,563
(48,575)
467,988
Unrestricted
£
-
537,841
(64,116)
473,725		 Designated
£
1,413,593
-
-
1,413,593
Designated
£
1,461,154
-
-
1,461,154		 Restricted
£
4,154
-
4,154
Restricted
£
-
3,398
-
3,398		 Total
£
1,413,593
520,717
(48,575)
1,885,735
Total
£
1,461,154
541,239
(64,116)
1,938,277

22. COMMITMENTS

At 31st December 2020, the Charity was committed to making the following payments under non-cancellable operating leases:

Within one year
Within two to five years		 2020
£
2,215
5,537
7,752		 2019
£
2,215
3,322
5,537

At 31st December, 2020 the Charity had capital commitments to be met in 2021 costing £Nil (2019: £Nil)

23. PENSIONS

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund. In 2020, the charge to profit or loss in respect of the defined contribution scheme was £8,511 (2019: £7,681).

24. RELATED PARTY TRANSACTIONS

During the year, the Charity made a payment of £570 (2019: £570) to SBS Matters, a company owned by the husband of the Charity's Administration / Finance Manager - Linda Stopher. The single payment related to the Charity's annual contract for I.T. support services and was on terms equivalent to those that prevail in arms' length transactions. £Nil (2019: £Nil) was outstanding at year-end.

In 2019, in like fashion, the Charity also made a payment of £1,800 to Laser Lights, a company owned by the husband of the Charity's Trustee, Director and Chairperson - Emma Woollard. This single payment related to the company's provision of sound and lighting facilties at that year's annual 'Christmas Show ' and was also on terms equivalent to those that prevail in arms' length transactions. In 2020, however, no such payment was required - because of the Covid-19 pandemic, the 'Christmas Show' was cancelled.

Immediate family members of L. Stopher (Finance & Administration Manager) and J. Garnham (Trustee) were employed by the Charity during the current and prior year. The remuneration paid to these individuals was on the same basis as for other employees and totalled £41,698 (2019 £48,281), none of which was outstanding at the year end.

The Trustees received no remuneration during either year and were not reimbursed for any expenses. No donations were made by the Trustees during the year (2019: £nil).

25. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net Movement in Funds
Add back Depreciation Charge
Add back Loss on Disposal of Tangible Fixed Assets
Deduct Interest Income shown in Investing Activities
Decrease / (Increase) in Stocks
(Increase) / Decrease in Debtors
Increase / (Decrease) in Creditors		 T
2		 otal
020
£
(52,542)
67,962
2,610
(172)
1,478
(93,063)
(15,541)
(89,268)		 Total
2019
£
20,585
67,243
10,055
(254)
(1,465)
1,292
4,440
101,896

19