Charity Registration No. 1065641
Company Registration No. 3227336 (England and Wales)
KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2021
KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Directors
Dr S H Anderson W J Darwin N R Oakley J Hall J E Hall
Charity number 1065641 Company number 3227336 Registered office Y Morfa Leisure Centre Cader Avenue Kinmel Bay Rhyl LL18 5HU Independent examiner Christopher Henderson BSc BFP FCA Unit 32, Llys Edmund Prys St Asaph Business Park St Asaph Denbighshire LL17 0JA
KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
CONTENTS
| Page | |
|---|---|
| Directors' report | 1 - 2 |
| Statement of Directors' responsibilities | 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 15 |
KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2021
The Directors present their report and financial statements for the year ended 31 July 2021.
Objectives and activities
The Charity's object ive s are to provide or to assist in providing services and facilities for recreation, physical and other educational or leisure time occupation within the community of Kinmel Bay and Towyn.
The Directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
The main activity undertaken in relation to the objectives is the provision of a sports centre and recreational areas for the inhabitants of Kinmel Bay and Towyn.
Achievements and performance
The charity continued to be able to provide facilities for the development and promotion of sports and leisure activities within the Kinmel Bay and Towyn area. Without these facilities, local residents would have to travel further distances to use similar facilities.
Financial review
The Directors are pleased with the charity's financial performance and position at the end of the period.
It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between two and four years ’s expenditure. The Directors considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The Directors has assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The charity is a private company, limited by guarantee without share capital. It is governed by its Memorandum and Articles of Association 9 July 1997 as amended by special resolution on 4 September 1997 .
The Directors who served during the year and up to the date of signature of the financial statements were: Dr S H Anderson
W J Darwin N R Oakley J Hall J E Hall
Trustees are appointed by the board.
None of the Directors has any beneficial interest in the company.
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021
The Directors' r eport was approved by the Board of Directors.
W J Darwin
Director Dated: 21 April 2022
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
STATEMENT OF DIRECTORS' RESPONSIBILITIES
FOR THE YEAR ENDED 31 JULY 2021
The directors, who also act as trustees for the charitable activities of #cd2, are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Directors are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
INDEPENDENT EXAMINER'S REPORT
TO THE DIRECTORS OF KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
I report to the Directors on my examination of the financial statements of Kinmel Bay & Towyn Sports And Recreation Association Limited (the Charity) for the year ended 31 July 2021.
Responsibilities and basis of report
As the Directors of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 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 financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . 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
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 financial statements to be reached.
Christopher Henderson BSc BFP FCA
Unit 32, Llys Edmund Prys St Asaph Business Park St Asaph Denbighshire LL17 0JA
Dated: 21 April 2022
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2021
| Unrestricted Restricted funds funds 2021 2021 Notes £ £ Income from: Grants 3 10,100 22,051 Charitable activities 4 1,248 - Other trading activities 5 - - Total income 11,348 22,051 Expenditure on: Charitable activities 6 15,479 15,401 Other 10 1,784 - Total resources expended 17,263 15,401 Net (expenditure)/income for the year/ Net movement in funds (5,915) 6,650 Fund balances at 1 August 2020 32,150 62,424 Fund balances at 31 July 2021 26,235 69,074 |
TotalUnrestricted Restricted funds funds 2021 2020 2020 £ £ £ 32,151 15,100 69,360 1,248 13,093 - - 562 - 33,399 28,755 69,360 30,880 19,792 6,936 1,784 2,050 - 32,664 21,842 6,936 735 6,913 62,424 94,574 25,237 - 95,309 32,150 62,424 |
Total 2020 £ 84,460 13,093 562 98,115 26,728 2,050 28,778 69,337 25,237 94,574 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
BALANCE SHEET
AS AT 31 JULY 2021
| Notes Fixed assets Tangible assets 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Income funds Restricted funds 14 Unrestricted funds |
2021 £ 1,824 11,298 13,122 (360) |
£ 82,547 12,762 95,309 69,074 26,235 95,309 |
2020 £ 5,428 15,232 20,660 (720) |
£ 74,634 19,940 94,574 62,424 32,150 94,574 |
|---|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 July 2021.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Directors on 21 April 2022
W J Darwin Trustee
Company Registration No. 3227336
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021
1 Accounting policies
Charity information
Kinmel Bay & Towyn Sports And Recreation Association Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Y Morfa Leisure Centre, Cader Avenue, Kinmel Bay, Rhyl, LL18 5HU.
1.1 Accounting convention
The financial statements have been prepared in accordance with the the Companies Act 2006 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 2016). The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the Charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Directors have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Directors in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.
1.4 Income
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised on an accrual basis as a liability is incurred
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Equipment 10% straight line Fixtures and fittings 15% reducing balance
The gain or loss arising on the 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.
1.7 Impairment of fixed assets
At each reporting end 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 ) .
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 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 recognised 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.
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021
1 Accounting policies
(Continued)
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 p aymen ts 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 method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
2 Critical accounting estimates and judgements
In the application of the Charity’s accounting policies, the Directors 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 experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing 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.
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021
| 3 Grants Unrestricted Restricted funds funds 2021 2021 £ £ Donations and gifts 300 - Grants received 9,800 22,051 10,100 22,051 Grants receivable for core activities Emergency Relief Fund Grant - - Capital Expenditure Grant - - Rhyl Flats Community Grant - - Towyn Council Height Restriction Barrier Grant - 1,000 Rhyl Flats Mower and Lighting Grant - 9,695 Gwyn Y Mor Mower and Lighting Grant - 9,695 Conwy Grant for Covid Fogger and Sanitary Equipment - 1,439 Towyn Council Skip Hire Grant - 222 Moondance Covid Assistance Grant 6,000 - Sportslot Covid Assistance Grant 3,800 - 9,800 22,051 4 Charitable activities Sales within charitable activities |
TotalUnrestricted Restricted funds funds 2021 2020 2020 £ £ £ 300 100 - 31,851 15,000 69,360 32,151 15,100 69,360 - 5,000 - - - 69,360 - 10,000 - 1,000 - - 9,695 - - 9,695 - - 1,439 - - 222 - - 6,000 - - 3,800 - - 31,851 15,000 69,360 2021 £ 1,248 |
Total 2020 £ 100 84,360 84,460 5,000 69,360 10,000 - - - - - - - 84,360 2020 £ 13,093 |
|---|---|---|
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021
5 Other trading activities
| Refreshment machine income Charitable activities Depreciation and impairment Insurance Repairs and renewals Sundry expenses Printing, postage and stationery Power, light and heat Rates Volunteer costs Bad and doubtful debts Share of governance costs (see note 7) Analysis by fund Unrestricted funds Restricted funds |
TotalUnrestricted funds 2021 2020 £ £ - 562 2021 2020 £ £ 10,218 8,483 10,601 2,649 1,928 1,884 65 137 10 67 5,122 8,365 1,911 4,283 - 500 665 - 30,520 26,368 360 360 30,880 26,728 15,479 19,792 15,401 6,936 30,880 26,728 |
|---|---|
6 Charitable activities
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021
7 Support costs
| Support costs Governance costs £ £ Accountancy - 360 - 360 Analysed between Charitable activities - 360 |
2021 Support costs Governance costs £ £ £ 360 - 360 360 - 360 360 - 360 |
2020 £ 360 360 360 |
|---|---|---|
8 Directors
None of the Directors (or any persons connected with them) received any remuneration or benefits from the Charity during the year.
9 Employees
The average monthly number of employees during the year was:
| 2021 | 2020 | |
|---|---|---|
| Number | Number | |
| 6 | 6 | |
| Other | ||
| Unrestricted | Unrestricted | |
| funds | funds | |
| 2021 | 2020 | |
| Refreshment machine purchases | - | 266 |
| Refreshment machine leases | 1,784 | 1,784 |
| 1,784 | 2,050 |
10 Other
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021
| 11 Tangible fixed assets Equipment Fixtures and fittings £ £ Cost At 1 August 2020 87,079 7,851 Additions 18,132 - At 31 July 2021 105,211 7,851 Depreciation and impairment At 1 August 2020 15,355 4,942 Depreciation charged in the year 9,782 436 At 31 July 2021 25,137 5,378 Carrying amount At 31 July 2021 80,074 2,473 At 31 July 2020 71,724 2,910 12 Debtors 2021 Amounts falling due within one year: £ Trade debtors 1,344 Prepayments and accrued income 480 1,824 13 Creditors: amounts falling due within one year 2021 £ Trade creditors - Accruals and deferred income 360 360 |
Total £ 94,930 18,132 113,062 20,297 10,218 30,515 82,547 74,634 2020 £ 2,333 3,095 5,428 2020 £ 360 360 720 |
|---|---|
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021
14 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Movement | in funds | Movement | in funds | ||||
|---|---|---|---|---|---|---|---|
| Incoming | Resources | Balance at | Incoming |
Resources | Balance at | ||
| resources | expended | 1 August 2020 | resources |
expended | 31 July 2021 | ||
| £ | £ | £ | £ |
£ | £ | ||
| MUGA Capital expenditure | |||||||
| fund | 69,360 | (6,936) | 62,424 |
- |
(6,936) | 55,488 | |
| Height restriction barrier | |||||||
| fund | - | - | - | 1,000 |
- | 1,000 | |
| Mower fund | - | - | - | 13,444 |
(1,344) | 12,100 | |
| Lighting system fund | - | - | - | 5,946 |
(5,946) | - | |
| Fogger and sanitary | |||||||
| equipment fund | - | - | - | 1,439 |
(1,175) | 264 | |
| Skip hire fund | - | - | - | 222 |
- | 222 | |
| 69,360 | (6,936) | 62,424 |
22,051 |
(15,401) | 69,074 | ||
| 15 | Analysis of net assets between funds | ||||||
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total | ||
| funds | funds | funds | funds | ||||
| 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | ||
| £ | £ | £ | £ | £ | £ | ||
| Fund balances at 31 | |||||||
| July 2021 are | |||||||
| represented by: | |||||||
| Tangible assets | 14,959 | 67,588 | 82,547 | 12,210 | 62,424 | 74,634 | |
| Current assets/ | |||||||
| (liabilities) | 11,276 | 1,486 | 12,762 | 19,940 | - | 19,940 | |
| 26,235 | 69,074 | 95,309 | 32,150 | 62,424 | 94,574 |
16 Operating lease commitments
At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
| Within one year Between two and five years |
2021 £ 144 - 144 |
2020 £ 1,724 144 1,868 |
|---|---|---|
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KINMEL BAY & TOWYN SPORTS AND RECREATION ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021
17 Related party transactions
There were no disclosable related party transactions during the year (2020 - none).
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