2020-12-31-accounts - SALTO Gymnastics Charitable Foundation Ltd

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REGISTERED COMPANY NUMBER: 04794043 (England and Wales)

REGISTERED CHARITY NUMBER: 1099407

REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 FOR THE SALTO FOUNDATION LIMITED

FKCA Limited 260 - 270 Butterfield Great Marlings Luton Bedfordshire LU2 8DL

THE SALTO FOUNDATION LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 DECEMBER 2020

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THE SALTO FOUNDATION LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS for the Year Ended 31 DECEMBER 2020

TRUSTEES	MrRPowell
	Mr J C Richardson
	MrE J Phillips
	MrM AD'Arcy
	MsM Griffin
REGISTEREDOFFICE	260 -270
	Butterfield
	Great Marlings
	Luton
	Bedfordshire
	LU2 8DL
REGISTEREDCOMPANY	04794043 (England andWales)
NUMBER
REGISTERED CHARITY	1099407
NUMBER
INDEPENDENTEXAMINER	FKCALimited
	260 - 270 Butterfield
	GreatMarlings
	Luton
	Bedfordshire
	LU2 8DL
ADVISERS	Legal Advisors Machins Solicitors
	28 Dunstable Road
	Luton
	LUI 1DY
	(Salto Gymnastics Club)
	Debenhams Ottaway Solicitors
	Ivy House,107 StPeters Street
	St Albans
	Hertfordshire
	AL13EW

ADVISERS

Page 1

THE SALTO FOUNDATION LIMITED

CHAIRMAN'S REPORT

for the Year Ended 31 DECEMBER 2020

Firstly, it is a pleasure to be able to confirm that SALTO has come through the worst of the impact of the COVID-19 pandemic and subject to the HM Government Road Map, SALTO restarted activities on 19 April 2021, albeit under COVID-19 Safe restrictions. This is in no small part as the direct generous support from the majority of our members, that could afford to maintain their minimum £10 donations, during the various imposed lockdown periods and for this we extend our warmest gratitude.

SALTO Reorganisation

On 28 October 2020, the SALTO Gymnastics Club membership, overwhelmingly endorsed the Board of Trustees' recommendation, that the charity, known as SALTO Gymnastics Club, be dissolved and its assets, liabilities and activities be transferred to The SALTO Foundation Limited, in accordance with the provisions of SALTO Gymnastics Club's charity constitution. The main reasons for the change being, to simplify the organisation structure and realise long term cost efficiencies made more important as we responded to the financial impact of the COVID-19 virus global pandemic. Following further detailed legal and financial advice the Charity Commission, made an order on 22 December 2020, pursuant to Section 105 of the Charities Act 2011. On 24 December 2020 the SALTO Gymnastics Club Board executed the approved the Transfer Agreement, and SALTO Gymnastics Club, as a charity, was dissolved on 31 December 2020.

COVID-19 Timeline

The main sequence of events affecting SALTO in 2020 have been:

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January 2020 — Early reports ofCOVID-19
February Board developed financial/operational contingency plans in response to COVID-19
March Closure of SALTO Centre to comply First National Lockdown
April/June Development of alternative support and delivery for members online and social media
July Luton delayed relaxation of social distancing rules but club remained closed for classes until
September. Developed pilot delivery of outdoor exercise classes.
August Roll out of limited programme of outdoor classes
September/ After making SALTO Centre a COVID-19 Secure facility, reopened a very restricted programme
October of classes for squads and recreationa] gymnasts.
November Closure of SALTO Centre to comply Second National Lockdown. Developed pilot new online
"ZOOM" classes for all disciplines
December Reopened temporarily then closed due to New Tiering System
January 2021 Continued Closure due to Third National Lockdown and ongoing.
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A special note of thanks must go to Amanda Dando, General Manager. For she and her team have worked tirelessly throughout ever changing and challenging times during the year to maintain contact and engagement with members, their families, and the coaching staff to create and deliver a range of new services and communications. We know from the kind feedback that these efforts have been appreciated.

I am proud to report that collective strength of our management team, staff, and club members has ensured that SALTO not only survived the ravages of COVID-19, but we are also positioned well to reopen. SALTO is a not-for-profit organisation that relies on subscription income, grants and sponsorship.

The function of The SALTO Foundation has been to:

Act as custodian of the SALTO Centre and during 2020, the Board has invested significant sums and made major changes to the SALTO Centre to make it COVID-19 Secure. As we started the year, we fully expected to continue our long-standing commercial mortgage debt reduction strategy. In response to the anticipated negative impact of COVID-19-on SALTO revenue, the Board requested two capital repayment holidays on its Commercial Mortgage. We also managed to secure reductions in some contract payment obligations or temporary suspension of services during lockdowns.
- Be the holding company for SALTO Leisure Limited, its trading company subsidiary. We planned to continue the reduction of the intra-company indebtedness between SALTO Leisure Limited and its parent. The Board decided to reduce the rental charged by SALTO Leisure Limited to SALTO Gymnastics Club and in tum reduce SALTO Leisure Limited's ability to reduce its indebtedness to its parent. Full details in the report that follows.

Page 2

THE SALTO FOUNDATION LIMITED

CHAIRMAN'S REPORT

for the Year Ended 31 DECEMBER 2020

The SALTO Gymnastics Club Board initially decided to borrow £100,000 under the HM Government backed Coronavirus Business Interruption Loan Scheme (CBILS). Later, in anticipation of the transfer of liabilities from SALTO Gymnastics Club to The SALTO Foundation Limited, it was decided to refinance the original CBILS facility with a new CBILS facility taken by The SALTO Foundation Limited. Following the merger, The SALTO Foundation Limited will continue to deliver all the activities ofSALTO Gymnastics Club. All the measures taken and detailed in this report have enabled the The SALTO Foundation Board to ensure 2021 activities will commence in a secure financial position. The financial reports look very different this year, as we must prepare this report in compliance with the provisions of the principles related to merged organisations. So even though the merger of the SALTO Gymnastics Club Charity with The SALTO Foundation Limited Charity was completed as at 31 December 2020, the reports must show the combined figures, as if they had been merged for all of 2020. This also involved restating the 2019 comparable figures and the detailed remarks in the Trustee Annual Report will also assist the reader assess the impact of COVID-19 on the Charity's financial position and its future plans. (Please see notes 27 and 28) : The report will show in detail the devastating impact that COVID-19 has had on our finances and our activities. It can be seen that we experienced a reduction of almost 50% fin income our Primary Purpose Trading income (which is predominantly member subscription income). This reduction was partly off-set by making sure SALTO received all the Government Business Support Grants it was entitled to, as well as securing a record level of other Grant funding that helped to cover not only some of our core costs essential to keep SALTO ticking over, but also to finance some major investments in the SALTO Centre to enhance lighting and ventilation to make the building even more COVID-19 secure than before the latest lockdown.

At Board level, Mrs Pauline Young has agreed to join the Board of Trustees. Pauline was a SALTO Gymnastics Club trustee prior to its dissolution. I am also pleased to report that Ms Louise Hanley and Ms Laura Baird will be joining our Board and bring considerable new expertise needed to face the new challenges. All three will be formally appointed and relevant documents submitted as soon as the practicalities of the transfer from SALTO Gymnastics Club to The SALTO Foundation Limited have been concluded. SALTO faces a second incredibly uncertain year and has done everything possible to mitigate the huge financial impact of the COVID-19 virus. The long-term impacts in respect of sustainability are somewhat more difficult to quantify, but I am confident that SALTO will continue to ASPIRE, to INSPIRE, to DELIVER and to SUCCEED.

Ray Powell, Chair

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THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES for the Year Ended 31 DECEMBER 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of 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) (effective 1 January 2019).

The Board of Trustees have assessed the Charity on a going concern basis, prior to the merger and subsequently. The impact of COVID 19 has seen a major disruption to our activities. In 2021, there will be continued additional costs associated with maintenance and hygiene arrangements associated with H&S COVID-19 Secure measures. Furthermore, our income will be significantly constrained in 2021 as the HM Government Road Map out of COVID-19 Social Distancing Restrictions is only expected to liberalise the country, no earlier than 21 June 2021. At the date of approval of the accounts, it is too early to state with certainty what the further impact of COVID 19 will have on the 2021 financial performance. Some of the measures taken in 2020 and 2021 are detailed in this report.

The Charity and its property are managed and administered in accordance with its Memorandum and Articles of Association, by its Board of Trustees/Directors.

OBJECTIVES AND ACTIVITIES

Objectives and activities

The objects of the Charity, in common with SALTO Gymnastics Club, shall be:-

(a) The promotion of community participation, in a range of healthy sporting, recreational and educational physical activities, for the benefit of in particular but not exclusively, the children and young people (referred to as Inhabitants) of Luton and surrounding rural towns and villages (referred to as area of benefit), by the provision of facilities for participation in the aforementioned activities.
(b) To advance education for the benefit of, in particular but not exclusively, Inhabitants of the Area of benefit), through the provision facilities for coaching in gymnastics sports and through the support of gymnastics coaching courses and leadership skills.
(c) The relief of such Inhabitants with physical or learning disabilities by the provision of the aforementioned facilities and activities.
(d) For the public at large in the interests of social welfare and with the object of improving the condition of life of the said Inhabitants who have need of such facilities and activities, by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances

Taking reasonable care and attention is given to the physiological and mental wellbeing needs of such inhabitants, with a view to furthering these objects and any other charitable purpose.

Our vision is: To Aspire; To Inspire; To Deliver; To Succeed.

SALTO is more than "Gymnastics"

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THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES

for the Year Ended 31 DECEMBER 2020

OBJECTIVES AND ACTIVITIES

Public benefit

The trustees confirm that they have referred to the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity’ (PB2), when reviewing The SALTO Foundation Limited's aims and objectives, as well as in planning future activities. We strive to improve the health, wellbeing and future prospects of the "Inhabitants", by becoming one of the leading providers and promotors of gymnastics and other activities, in our "Area of "Benefit", from the use of the SALTO Centre by SALTO Gymnastics Club and SALTO Leisure Limited. The difference made by The SALTO Foundation Limited arises from the use of the SALTO Centre by SALTO Gymnastics Club and SALTO Leisure Limited.

Following the merger of the SALTO Charities, The SALTO Foundation Limited shall receive the income directly from the continued activities of SALTO Gymnastics Club such as member subscriptions and fees. The affordability and access to SALTO Gymnastics Club programmes is important to us and is reflected in the pricing policy. This pricing policy reflects the strategy of enabling as many “Inhabitants” as possible within our "Area of Benefit", to take part in activities, to attend or participate in events, by making these as affordable as possible, having due regard to the general levels of deprivation in the "Area of Benefit" and pricing of similar sporting or leisure activities available locally. The pricing policy and other careful financial management by the Trustees ensures that it generates a modest surplus.

The strategies employed to achieve The SALTO Foundation Limited Charity's aims and objects are:

enable SALTO Gymnastics Club to present a broad range of activities and gymnastics classes for all age groups in as many disciplines as possible, subject to availability of qualified coaches.
- enable SALTO Gymnastics Club to develop innovative programmes, such as, classes for "Home Educated” children.
- enable SALTO Gymnastics Club to develop "Partner" programmes with local schools, groups working with children with specific educational needs.
provide facilities for community amateur sports groups to run classes at the SALTO Centre at discounted rates for hire of space.
create opportunities for volunteering, developing coaching skills and employment
- create an open, welcoming, safe environment to bring families together whilst they watch their children participate in their classes fostering a sense of community cohesion.
- create a state-of-the-art training facility, to inspire the gymnasts to reach their full potential and motivate others to become members too.

SALTO is aware that it must demonstrate the difference made through the achievement of our aims and objectives through the delivery of our inputs, activities, outputs, outcomes and impacts. Our first Impact Assessment Report was published in 2020. Our aspiration is that this will be produced on an annual basis in future. Although SALTO monitors ‘performance against Key Performance Indicators (KPIs), set within annual operating plans, these results have not been expressed in societal terms. This is still an area for improvement in our performance but there are challenges and measurement problems associated with some of our activities. Subject to GDPR compliance, we also aim to share data with "Partner" organisations to improve the quality of our reporting

SALTO operates in Sundon Park, one of the most deprived areas in Luton, as evidenced by ONS IMD statistics.

Luton is 70th of 317 ofEngland's most deprived areas.
- 4Local Super Output Areas (LSOA's) in the top 10% most deprived areas in England. - 29 LSOA's are in the top 10-20% most deprived areas, including, Sundon Park. - Only 4 LSOA's have improved their overall IMD raking 2015-2019

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for the Year Ended 31 DECEMBER 2020

THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES

ACHIEVEMENT AND PERFORMANCE

Charitable activities In the year under review, the SALTO centre was closed for 8 months of the year, first closure in March 2020 and barely reopening again in September before the November closure. The December closure only ended on 19 April 2021 as part of the Government Road Map.

Children and Young People:

SALTO'S membership is drawn from every ward in Luton and reflects Luton's superdiverse, plural, ethnic population. 95% live in Luton the remainder in nearby rural villages and towns. 40% white : 40% BAME : 20% Other, including mixed race origin,

SALTO started 2020 with great optimism and looking forward to delivering its core gymnastics training and other activities seven days a week to over 1000 children and young people aged 0 to 18 years, 95% girls. We provide structured Gymnastics Classes to 3 years upwards from Pre-School, Tumbling, General & Recreational Gymnastics, Men's & Women's Artistic Gymnastics, Acrobatic Gymnastics and Trampoline

Fewer children had the opportunity to participate in extra activities from their normal gym class after March. We were only able to deliver a fraction of the planned normal schedule of events during the few short weeks when we could open. These events included gym camps, 1-2-1 lessons, and a few badge clinics.

Our three, weekly PlayGym drop-in sessions that have grown in popularity and attended by almost 6000 in 2019 had to be suspended and then reopened in a very restricted, COVID-19 Secure, pre-booked basis until the latest closure.

Sadly, during the year under review, the inevitable consequences of the protracted lockdowns has resulted in a reduction in registered members of just over 1000 Pre-COVID-19 to about 650 for the end of 2020 and nowa little over 500. Approximately 50% reduction. This is of course reflected in the financials but most importantly in the lives of those children and young people. As conditions and capacity permits, we shall aim to try to attract these former members back to SALTO.

Gymnastics is a competitive sport and SALTO works to provide gymnasts with the opportunity to compete with their peers in many disciplines. Previously we would have reported on all the fantastic achievements and activities of those attending SALTO and its events, but these were all suspended under COVID-19 rules. Indeed, it is unclear when these will resume but the HM Government Roadmap may provide a little hope that the latter part of 2021 will see a gradual resumption of such activities.

We are a fully inclusive club. Members are attracted by SALTO's reputation, siblings of members, attendance at events as well as our online presence, which has been vital throughout lockdown. This is a summary of the engagement from March to December in and out of lockdown and changing tier systems.

March -July - closed we sent a variety of Fitness Plans weekly to our Pre-School / Recreation Gymnasts that were provided by British Gymnastics (BG) from the Gymfit Program, along with BG issued wordsearches and colouring sheets.
- We hada private Club Facebook Group -Approved videos were uploaded along with home workout pictures provided by parents. We had a fairly good engagement with this Group. Coaches also pre-recorded fitness for children to copy at home. In general, the Group was lively and participation was good.
- We made a phenomenal start to 2020, classes were full, our numbers were over 1000 Gymnasts in structured classes, Play Gym, drop-in was booming, and we had concerns over numbers attending, prompting us to think of scheduling extra sessions
- We sent out Fitness Plans via email weekly and posted session plans to Squads. Communication was maintained with Parents, providing regular updates on any guidance issued. When Flexible Furlough was introduced, this allowed us to offer an Outdoor Fitness Program from late July, for five weeks. We delivered to over 300 children per week, limited by BG guidance; 1 coach to five gymnasts, a maximum of 20 children in any session, delivering fitness for 45 minutes. It was a huge success.
- We re-opened indoors September 2020 and made it to the end of October before November a new lockdown closed us again. In November, we ventured into the world of "Zoom" and launched a program which ran Monday to Friday every week, delivering to an average of 985 children each week for the four weeks.

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THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES

for the Year Ended 31 DECEMBER 2020
We re-opened (again) early December, but with infection rates rising, closed Saturday 19th December and shortly after we were once again closed by Government Guidance. This closure continued until 19 April 2021.

Facilities and Infrastructure: During 2020 the focus has been to ensure the SALTO Centre is as safe and ready to receive staff, gymnasts and visitors whenever permitted to do so. Actions taken include: - Deep Cleaning of the facility including "fogging" disinfectant" of all public areas. - Easy Clean covers fitted to all major apparatus. - New access and one way movement systems introduced for ingress and egress. - New social distancing directional signage. - Social distancing measures introduced to spectator areas - reducing capacity. - 6 new heat exchange ventilation units ordered in 2020 and installed in February 2021. - 4 new rooflight windows and remote controlled ventilation ordered in 2020 and installed in March 2021 - New energy efficient lighting system installed in December 2020 - New hot water system installed in November 2020. - New cleaning regime devised with each coach having their own personal cleaning caddy for use before, during and after sessions. - The migration of member records to our new Club Membership database has proven to be invaluable as this has simplified communications to members during lockdowns and simplified payment administration. - SALTO achieved another creditable compliance rating of 96% in 2020 in its independent Health and Safety Annual Audit (which included COVID-19 measures) and had no reportable accidents during the year and we received no serious complaints. These results reflect the Board's commitment to the robust Health and Safety Management System policies and procedures that are part of the daily fabric of how we deliver activities within the SALTO Centre. This never more important as had to adapt to Government social distancing guidelines to protect the health and wellbeing of all staff, members, and visitors.

Workforce

We have trained all staff on new and safe methods of delivering Gymnastics Outdoors and Indoors. We have a robust Health and Safety Management System and Hygiene regime to mitigate risk of transmission.

The pandemic hit swiftly and suddenly we were closed by the Government Friday 20th March 2020. We furloughed all our staff, apart from our General Manager, and did our best to provide a digital program for everyone. The coaching team have been amazing under very difficult circumstances throughout most of 2020. We have all been out of our comfort zone on many occasions but remain committed to delivering gymnastics for all ages and abilities as best we can under the circumstances.

All workforce development and coach education courses were suspended during 2020 and is now only showing the green shoots of a slow resumption, if the current progress on the HM Government Roadmap continues. Those staff that were undergoing formal training from BG will be called back first before new courses are opened-up. There has been a shift to on-line and distance learning as part of the new Coach Education program. The SALTO Centre is an accredited training facility and hosted 8 BG coach development courses and master classes. We continue to recruit from the local community and train the coaching and administrative staff to maintain the high standard of coaching expected from SALTO.

We provide a Workplace Pension scheme for qualifying Management and Staff but open to all, evidencing our commitment to invest in our staff. Average monthly headcount was 39 in 2020 ( 39 in 2019). This underlines our ability, with the support of the Coronavirus Job Retention Scheme, to keeping all our staff even, if Furloughed for much of the year, in readiness for reopening. Coming out of lockdown may present some challenges to retain some staff who may now have advanced to further or higher education or other fulltime work, a year on.

We will invest in management skills training courses and seminars to continue our Management team's continued professional development, as opportunities arise.

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THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES

for the Year Ended 31 DECEMBER 2020

Volunteers

SALTO relies on voluntary help to support its Management Team, Coaching and Administrative Staff. Volunteers assist with stewarding events and performances, banking arrangements, stock control. SALTO does not attribute a financial equivalent to the value of our volunteers’ contribution to the Charity however it is nevertheless of greater worth than the mere saving in paid staff costs. Most volunteers have long standing associations with SALTO or are members of the cohort of Young Leaders at the start of their coaching. Whilst the opportunities were fewer during 2020, we are looking forward to welcoming them back in 2021 and recruiting more.

Community Engagement

SALTO faced a major challenge to maintain contact and therefore interest from its members and their families. On the few occasions we could reopen during 2020, even under the strictest COVID-19 Secure measures, , we were encouraged that those we could accommodate, did return and this gives us the confidence that this will be repeated in 2021, as Social Distancing rules are relaxed.

During the year, we embraced new technologies.

Initially, as mentioned we had a private Club Facebook Group "closed" pilot sessions. Then later, investing in more professional "Zoom" software, to develop a range of fitness sessions for all ages from Pre-school to Squad Gymnasts. Initially a few sessions a week and increasing to daily, including a Saturday morning.

In 2021, we became increasingly aware that gymnast and staff wellbeing was an issue to try to address. We therefore held several simply fun sessions. From "Storytime with Viv" to healthy nutrition master classes to make Smoothies. There were Coffee and Cake and Pizza creation sessions too. Hot Chocolate, Ballet, Quiz's, Dance, Mindfulness Week, Meditation and Teddy Bear’s Picnic to name but a few.

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THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES for the Year Ended 31 DECEMBER 2020

FINANCIAL REVIEW

Financial review 2 The Board of Trustees / Directors are pleased to present a satisfactory financial performance during the year to 31 December 2020, notwithstanding all financial challenges presented by COVID-19. As mentioned at the outset, we must present the financial reports by employing Merger Accounting rules to reflect the merger of the SALTO Gymnastics Club with The SALTO Foundation Limited, as if they had been one organisation, since the beginning of 2020. Furthermore, we have restated the 2019 data, so there are comparable figures, to aid interpretation and understanding. The Statement of Financial Activities, Balance Sheet and where applicable the Notes will show the Financial Data for Salto Gymnastics Club and The SALTO Foundation Limited separately and then the combined figures for the merged organisation. (Please see notes 27 and 28)

It must be noted COVID-19 it has had a massive negative impact upon these two charities in 2020 both in terms of delivery and upon its finances. The remarks below will mainly reference the merged entity totals but will, for clarity, reference the separate Charity, in detail to the matter being reported upon.

Financial Highlights

Overall,

1) We must acknowledge that despite our best efforts and for the reasons set out below, merged financial position will show a net Deficit for the year of (£39k). This was funded in part by a £100k, CBILS facility arranged by the Trustees to ensure liquidity throughout 2020.
2) As pledged in 2019, The SALTO Board had the SALTO Centre revalued and the resulting increase to the current fair value. The revaluation reserve has been increased by £250k. Although this substantially increases the Unrestricted Reserves in the Balance Sheet, this is not included in the definition and calculation of "free reserves", as set out in Charity’s Reserves Policy, approved March 2021. The balance sheet reflects a very positive impact of the valuation of the SALTO Centre, our main asset, further strengthening the overall financial position for the future.
3) The Total Funds of the merged organisation stands at £1,303,978 in 2020 (£1,093,246) demonstrating our ability to weather the short term financial shock brought about by COVID-19.

Income

1) After the initial lockdown, Member donations were maintained throughout 2020, despite little prospect of SALTO being able to deliver any normal services and activities. We adapted and delivered virtual sessions and later outdoor activities, to maintain a level of engagement with the children and young people. In 2020 members subscription income fell to £214k in 2020. (£406k in 2019). This represents an almost 50% reduction in normal income compared to what was, arguably a record year in 2019.
2) We were able to claim £11.7k of GiftAid on eligible member payments on 2020 payments (£10k in 2019). The SALTO Foundation Limited has been recognised by HMRC Charities for Gift Aid purposes for 2021.
3) At the outset of the lockdown, we had no idea of the nature, scope or likely future financial contribution of various HM Government Schemes. SALTO received all the grants and support it was eligible to, SALTO borrowed £100,000 under the CBILS arrangements. This loan is repayable over 60 months with interest for the first 12 months covered by HM Government. The loan taken to secure liquidity without knowing the extent of the other government support that followed during 2020 and continues into 2021 nor how fantastic the support has been from the membership. It is important to note that contributions from Government Schemes, excluding the CBILS facility, mounted to £83K in 2020 (N/A 2019), without which SALTO's financial position would be in a perilous state today.

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THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES for the Year Ended 31 DECEMBER 2020

4) SALTO was very successful in its fundraising efforts during 2020. Initially we secured a pledge of £10k from the Garfield Weston Foundation, provided we could secure a further £10k in funding from third party organisations. This was initially to support ambitious plans to mark SALTO Gymnastics Club's 25th Anniversary Year as a Charity. We successfully secured two grants of £5k each, before the advent of COVID-19. Then fundraising efforts initially focussed on securing support for key core costs. We secured Emergency COVID-19 response grants amounting to £15k. Later in the year, we secured grants and pledges amounting to £55k (£5k drawn in 2020. £50k Sport England grant was partially claimed in 2020 but most has been claimed in 2021). This funding was restricted to fund investment in a new Air, Heat and Light designed to improve ventilation in response to COVID-19 by reducing airborne transmission risks (the ahead of the current government “Hands, Face, Space and Fresh Air" Mantra. and to improve long term sustainability by introducing low energy LED lighting to the main hall. We also launched our first Crowd Funder appeal but the proceeds of this were not received until February 2021 and this included 2 new Corporate Sponsorship contributions.
5) Non-core activities and other trading was suspended from March 2020 and so it is evident that the total contribution from these activities was 25% of that achieved in 2019.

Whilst all the above measures managed to stem the lost revenue resulting in an overall 25% reduction to £438k (£580k in 2019) the real reduction would have been 40% had we not received the HM Government support available.

The Board also focused its attention upon SALTO's expenditure. The strategy being to eliminate or reduce all costs where possible and working with suppliers and creditors to achieve this in a mutually satisfactory fashion. An overall saving of £96k was achieved reducing costs to £477k in 2020 (£573k in 2019). This represents savings achieved of approximately 16%-17% during the year which goes some way to offset the 25% fall in income but still resulted in the small overall deficit.

Expenditure

1) The major reduction in SALTO expenditure was the two Capital Repayment Holidays (CRH) negotiated and agreed with Barclays Bank plc. As a result, SALTO did not reduce the outstanding balance of its commercial mortgage as much as would have been the case. However, the effect made a significant positive contribution to Cashflow throughout 2020 and into 2021. The current CRH is due to end in May 2021 and repayments will restart at £6k per month (£5.2k at before the CRH).
2) SALTO secured Rental Payment holidays of different durations and amounts on each of its Asset Finance Agreements. Again, extending the term of these agreements or adjusting future payments had a positive contribution to cashflow during 2020. These savings are mainly reflected in The SALTO Foundation Limited's subsidiary, SALTO Leisure Limited.
3) Non-essential supplier contracts were cancelled, suspended of scope of supply was reduced. These arrangements all contributed to savings in costs. This is reflected in most expenditure line-item costs compared with 2019.
4) SALTO did however see unplanned additional costs associated with Health & Safety measures to make the SALTO Centre COVID-19 Secure and facilitate the few short lived reponing of the SALTO Centre as well as being prepared for the relaxation of control measures under the current HM Government Road Map. Some will remain as ongoing costs associated with Hygiene rated consumables, some will be non-recurring costs associated with signage, fixtures and fittings, crowd-control queueing systems. Some of these costs were covered by one-off emergency restricted grants mentioned. This is reflected in an increase in Repair and Renewal costs to £17.4k (12k in 2019)
5) The Air, heat and Light Project was initiated in December 2020, and certain costs incurred were covered by restricted grants.
6) It is also noteworthy that although SALTO received a welcome £74k in Coronavirus Job Retention Scheme Grants the was an additional £4k of payroll processing costs, excluding internal management time administering this scheme. That said, we are proud to have not made any member of staff redundant during 2020.

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THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES for the Year Ended 31 DECEMBER 2020

FINANCIAL REVIEW

Sources of income SALTO's income is generated from the following sources

Coronavirus Business Interruption Loan Scheme Coronavirus Job Retention Scheme Membership Subscriptions (minimum nominal £10 Trading Activity (Suspended pending reopening) donation during lockdown) Membership Fees (Suspended pending reopening) External Hire (Suspended pending reopening) GiftAid (Claims made for 2020) Sponsorship (Suspended pending reopening) Non Gymnastics Core Activities(Suspended pending Donations/Grants/Bursaries/Crowdfunding reopening)

Fund Raising Events (emergency grants and new appeals to be launched before reopening)

Coronavirus Business Interruption Loan Scheme Facility (Not strictly income but a source of liquidity) A £100,000 HM Government backed facility has been approved and drawdown. This is the main source of liquidity to cover SALTO's short-term needs during the COVID-19 disruption to normal operations.

Coronavirus Job Retention Scheme Grant(s) This is a HM Government scheme has been invaluable during 2020 and has ensured SALTO has not made any member of staff redundant and using the furloughed scheme to retain valued members of SALTO staff. The benefit of scheme is tapering off and will cease on 30 September 2021.

Prior to COVID-19, generally predictable within a reasonable tolerance. Variable based upon the subscription fee rate and the number of participants/members. Previously this represented the largest contribution to the charity's Primary Trading Income. This income is regular, paid monthly and the majority is via pre-authorised card payments collected via our membership system and designated payment service provider. The cost of subscription fees were last changed in April 2019. During the 3 lockdowns, the vast majority of members, able to do so, have donated a minimum of £10 per member per month which has been invaluable financial support.

Membership Fees

Generally predicable within a reasonable tolerance. Variable based upon the actual membership fee rate and the number of participants/members. This is an annual fee. It is collected when members start their membership and annually thereafter in October.

GiftAid HMRC has granted a concession to SALTO to enable GiftAid claims on eligible member payments for which we hold valid gift aid declaration received in the previous financial year. We have a budget for a minimum £10,000 contribution for 2021. Following the merger of SALTO Gymnastics Club and The SALTO Foundation Limited, the latter has been recognised for by HMRC Gift Aid purposes.

Neate ‘cet ae

We look to develop innovative ways to offer activities that promote health and wellbeing to members and non-members taking advantage of time when the SALTO Centre is not fully occupied by our core-activities. Normally, this not only contributes to our charitable objects but also provides a strong and reliable source of revenue. (suspended pending reopening)

Trading Activity A long track record has enabled the Club to make reasonable projections, but this is variable. Although this makes a valuable contribution this represents approximately 10% of annual income. This income is ongoing and contributes on a weekly basis. SALTO has been introducing a range of its own merchandise on a trial basis and this is making a positive modest additional contribution.

Page 11

THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES

for the Year Ended 31 DECEMBER 2020

FINANCIAL REVIEW

External Hire

A long track record has enabled the Club to make reasonable projections, but this is variable. There are different forms of external hire from Parties, Competitions and Events, Community Club hire and Coach Education Courses. This source of income makes an increasing valuable contribution and now represents approximately 10 % of annual income. (suspended pending reopening). External hire, with the exception of Parties is now charged through SALTO Leisure Limited. SALTO now also pays SALTO Leisure Limited to hire the SALTO Centre. The hall hire cost is broadly similar and referenced to commercial business rental costs in the area for similar commercial premises. These payments continue to cover the liquidity needs of SALTO Leisure Limited

Donations/Grants/Bursaries/Fund Raising Events/Crowdfunding Appeal

This is entirely linked to the volume and success of such activities. These are generally linked to a project or planned expense and the funds raised are either Restricted Reserves or Designated Reserves. There are long lead times between applications and any funding received with the exception of specific events. This is not predicable. Increasingly applications are being made for support for core costs.

SALTO secured several COVID-19 emergency grants and two COVID-19 restricted grants for a lighting and ventilation project in 2020.

SALTO launched a project related Crowdfunding campaign at the end of 2020 but closed in February 2021. This raised £7581, which will feature in the 2021 financial report. We will launch another campaign later in 2021 to try to build on the success of the initial campaign.

Sponsorship

Sponsorship is new to SALTO and not yet a predicable or making a meaningful contribution to the income mix. This said, two new sponsors came forward, as part of our crowdfunding campaign.

Intra Company Loan Repayments

SALTO Leisure Limited acts on behalf of The SALTO Foundation Limited has resulted in hall hire revenue being generated by charging SALTO Gymnastics Club for the use of the SALTO Centre and all its facilities and support services. This revenue is used to make ad-hoc repayments of the intra~company loans made by The SALTO Foundation Limited to SALTO Leisure Limited providing The SALTO Foundation Limited can also meet its obligations as the fall due. These arrangements are subject to review as a result of the merger of SALTO Gymnastics Club with The SALTO Foundation Limited. (See Note 22 to the Financial Statements.)

Page 12

THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES

for the Year Ended 31 DECEMBER 2020

FINANCIAL REVIEW

Investment powers and policy The combined value of Charity's restricted and/or unrestricted reserves does not warrant establishing a detailed investment policy. The Trustees, having regard to the liquidity requirements of operating SALTO, have kept available funds in an interest-bearing deposit account and seek to achieve the best available rate of interest, commensurate with the amount invested and ease of access required.

Reserves policy and going concern

The Charities Commission guidelines state that it expects trustees to decide, publish, implement, and monitor their charity's reserves policy (the Policy) so that they can comply with their legal duties to:

act in the interests of their charity and its beneficiaries. - protect and safeguard the assets of their charity. - act with reasonable care and skill. - ensure their charity is accountable.

The occurrence of a global pandemic in the form of COVID-19 or similar long lasting catastrophic event was not considered in any risk assessment or planning. At the end of February 2020, unrestricted reserves were approximately £20,000. This Policy has been revised in light of this experience. In March 2020, SALTO was forced to close. This policy document sets out:

a medium term plan for the restoration of reserves, - the basis for the establishment of the level of reserves, - the purpose and approved use of such reserves.

The Trustees are responsible for establishing this policy and to regularly monitor and review its effectiveness in the light of the changing funding and financial climate and other risks. Reserves are essential to ensure all spending commitments and potential liabilities can be fulfilled and assists with the mitigation of the impact of unplanned events on the Charity, its members, staff and volunteers.

This policy is reviewed, at least annually in line with the financial accounts review. The most recent review and approval was at the Trustees’ meeting on 23 March 2021. It has been at the heart of most fiscal decision making during 2020 and will remain in sharp focus throughout 2021. Our aim is to maintain our reserves to ensure our financial resilience and sustainability, including protecting ourselves against new, unexpected, shocks to SALTO activities that are not insurable risks.

The Policy sets out new aspirational target reserves levels and the key principles by which we manage surpluses or deficits compared with the targets. Our aim is to strike the appropriate balance between ensuring a sustainable financial position and using our funds to fulfil our charitable objects.

Types of Reserve

Restricted funds fall outside the definition of unrestricted reserves. In SALTO's case, it may during the normal course of its fund-raising activities, receive the proceeds of donations or grants, which may be received with conditions attached regarding their use. Such funds will be held in a separate designated account and such funds shall be employed in strict accordance with the conditions attached and/or the purpose stated in the application for such funds. As such, these funds are not included in the calculation of the Unrestricted Reserves considered prudent for the day-to-day operation of the club.

Designated Reserves:

SALTO may decide to accumulate reserves in anticipation of a future project or material expense. These are detailed in the table below. As such it may set aside funds from its normal income and/or general fund-raising activities with a view to utilizing such reserves at the appropriate time to facilitate the project or meet the liability of the planned expense. The Trustees may, at their discretion, re-designate the application of such funds to meet a new priority, provided such is in furtherance of its charitable objects.

Page 13

THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES

for the Year Ended 31 DECEMBER 2020

FINANCIAL REVIEW

Unrestricted Reserves Sometimes referred to as "free reserves":

The Charity may decide to accumulate general reserves to ensure that the Charity may fulfil its normal day to day activities, contractual commitments, and operating expenses to mitigate the risk, however small, of an adverse change to anticipated future revenues or adverse impact of an unplanned or significantly larger expense than that which was included in the budget. As such, it may set aside funds from its normal income and/or general fund-raising activities with a view to utilising such reserves at the appropriate time to avoid the need to cease delivery of scheduled activities in furtherance of its charitable objects. Unrestricted reserves are funds that are not specifically defined as Restricted Reserves but may include Designated Reserves.

These unrestricted reserves must be freely available to spend on any of the Charity's purposes. The starting point for calculating the amount of unrestricted funds held by a charity. However, just as in SALTO's case, some, or all, of the unrestricted funds may not be immediately available for spending. This is because spending those funds may adversely impact on the Charity's ability to deliver its aims, or they are not easily convertible to cash or illiquid.

Such items must be excluded from the calculation of unrestricted reserves, include:

Tangible Fixed Assets used to carry on the Charities activities, such as land and buildings. In The SALTO Foundation Limited's balance sheet, its reports the current Valuation of the SALTO Centre as £1,500,000 with a Commercial Mortgage outstanding of £446,901. The net fixed asset value, £1,053,098 is excluded from the calculation of free reserves as this equity is not easily realized into cash.
Programme- related investments those held solely to further the Charity's purposes.
- Designated Funds set aside to meet essential future spending, such as funding a project that could not be met from future income
Commitments that have not been provided for as a liability in the accounts.

Level of Unrestricted Reserves The Board has set targets for unrestricted reserves in this Policy, in accordance with Charity Commission guidelines (currently set out in CC-19), noting that reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergency repairs and other expenditure. The board has designated and established targets for Contingency, Financial Management and Strategic Reserves.

The Board shall always act with reasonable care and skill, using information and advice, as it deems appropriate, to set an annual budget, with a view to funding the delivery of scheduled activities and future development goals, in furtherance of its charitable objects. Such budget is set with due regard to prevailing operating income and expenditure, as well as prudent forecasting, based upon known intemal and external factors. The budget also aims to create a modest surplus to contribute to an increase to the balance of unrestricted reserves towards the stated targets.

The Trustees considers the ideal medium target level of reserves is £50,000 by 2022. Although it will take some time for activities to reach pre-COVID-19 levels, the prudent financial management in 2020 has resulted in a stronger than anticipated financial position so we have revised our target for reserves to be £50,000 by the end of 2021.

However, in the short term, the focus must be maintaining liquidity to meet obligations as they fall due. The Board approved a plan to borrow £100,000 Coronavirus Business Interruption Loans Scheme facility to ensure immediate liquidity needs were met. The proceeds of this loan were received on 15 May 2020.

In addition, subsequent to the enforced temporary closure of the SALTO Centre, the Board and Management have adopted a process of controlled cost reduction measures to ensure critical services are maintained during temporary closure. This is evident from the figures reported in the Statement of Financial Activities.

Page 14

THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES for the Year Ended 31 DECEMBER 2020

FINANCIAL REVIEW	FINANCIAL REVIEW
Description	Purposeofreserves	Target Amount 2021	Actual Amount 2021	Target Amount 2020
Contingency Reserve	Ensureshortterm solvency incaseofextreme event.Buysometimeinthe eventofaserious income shockEnable the organization to function	£20,000	£20,000	£10,000
	while action istaken(including business
	interruption insurance claim)Ensure charitable
	commitments can be met.
Financial	VolatilityCoverage forpermanentchanges in	£10,000	£10,000	£10,000
Management Reserves	circumstances adjustments tobephased inovera longer timeperiodUsablereservesfromadverse fluctuation inexpenses, such as increase in hall
	hire costdue to adverse interestchange.
Strategic Reserves	DeliveryofSALTO Strategy.Non-recurringcostof	£20,000	ENIL	£20,000
(*Establish Sinking	majorprojects and initiatives.
Fund) TotalReserves	This istheunrestricted balance onthe reserves	£50,000	£30,000	£30,000
	account.This excludesany balance ofCoronavirus
	Business Interruption LoanSchemeAccount This
	excludes balances on currentaccounts from timeto
	time.

Page 15

THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES for the Year Ended 31 DECEMBER 2020

FUTURE PLANS

In 2019, SALTO developed a medium-term plan but this is now subject to review in light of the impact of COVID-19. The focus is now upon an effective reopening, initially complying with the prevailing Government and National Governing Body guidelines that will limit operations for a short period of time. Then a controlled yet sustained effort to rebuild membership numbers as well as new and existing services.

We will ensure we have the necessary financial and physical resources available to meet the demand from former and potential beneficiaries.

Our plans have 6 priority areas:

Health and Safety Management

SALTO is committed to maintaining a robust Health & Safety Management System, that ultimately ensures that all users of the SALTO Centre remain safe.

Community & Membership Define policies and COVID-19 Secure adapted procedures, that set out best practice, for the delivery of our charitable objects. To further the role that SALTO plays in its area of benefit and enhance its relationships with all stakeholders. EducationBy focussing& uponEmploymentthe needs of club, establish a framework for the investment in people, as soon as British Gymnastics Coach Education resumes, to fulfil their personal development goals whilst using these skills in the furtherance of our charitable objects.

Services & Events

Design a COVID-19 Secure programme of classes, activities and events that contribute to the furtherance of our charitable objects that are exciting, challenging, rewarding safe and fun. Ensure the SALTO Centre is equipped to the highest standards possible to aspire to be a centre of excellence to deliver same. We will devise development plans for our competitive squads to be ready to enter events as soon as permitted to do so.

Finance & Compliance

To ensure the long-term sustainability of the charity through prudential financial controls and policies and conforming with all legal requirements and regulations governing Charity activities.

ICT Systems

Ensure Management and Staff have all the tools necessary to fulfil their roles effectively. The impact of COVID-19 has demonstrated that ICT is an essential resource and is integral to all aspects of the Charity activities. We must strive to ensure the resources available are fit for purpose and compliant with GDPR.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The SALTO Foundation Limited is organised as a Company Limited by Guarantee (CLG) Company Registration Number 04794043. The CLG structure is widely used by charities because they not-for-profit companies - that is, they do not distribute their profits to their members but either retain them within the company or use them for some other charitable purpose. The SALTO Foundation Limited was also registered as a UK Registered Charity Number 1099407 in 1995. The SALTO Foundation Limited was originally established to facilitate the purchase of the SALTO Centre with the assistance of a commercial mortgage and to protect the Trustees and Directors running the company from personal liability for the company's debts. The liability of the Trustees and Directors is £1 (One pound sterling). As mentioned, SALTO Gymnastics Club's Charitable Activities were transferred to The SALTO Foundation Limited with effect from 31 December 2020.

Page 16

THE SALTO FOUNDATION LIMITED

REPORT OF THE TRUSTEES for the Year Ended 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Trustees The Board of Trustees are responsible for directing, controlling and running and operating the Charity on a day-to-day basis.

The Board should reflect the diversity of SALTO membership and the communities it serves in Luton and the surrounding towns and villages. The Board intends to comply with the new Charity Commission Governance Code and has noted the latest requirements regarding Equality, Diversity and Inclusion. These principles have been incorporated into a new Environmental, Social & Corporate Governance policy.

The Trustee's role requires lay people, parents and professionals who have a wide range of skills and experience to assist with the diverse strategic needs. Any individual, not disqualified from becoming a Trustee, may be invited to become a Trustee by an existing Trustee, on behalf on the existing Board. Such individuals shall be nominated and elected to the Board, at the earliest possible meeting of the Board after acceptance of such invitation and the appointment shall be confirmed at a General Meeting, following the appointment, or at an Extra General Meeting.

The schedule of meetings is now available on the club website. The Board is required to hold a minimum of 2 meetings per annum. Meetings have been held monthly through the COVID-19 crisis, but this frequency should reduce as external conditions permit. Trustee meetings usually have a session during which the General Manager and Coach Manager present commentary on progress against plan, covering the day-to-day administration of the Charity activities, review policies and seek decisions, before Board business is considered. Trustees' meetings agree the broad strategy and areas of activity for the Charity, including consideration of any bursary making, capital investment projects, reserves and risk management policies and performance. The Board actively seeks to improve its performance and actively encourages applications to joining the board by following the process described on the website and promoted via social media and annual member survey questions. New trustees ideally serve for five years after which they may put themselves forward for re-appointment. The Constitution provides for a minimum of three trustees, with no maximum number.

On appointment, new trustees sign a model trustee declaration statement committing them to giving of their time and expertise. The induction process for any newly appointed trustee, includes an initial meeting with the Chair and the Trustees, followed by a series of short meetings with the Chief Operating Officer, General Manager and Coach Manager. These meetings will include a brief history of the Charity, copy Board and Management Meeting minutes, a copy of the last three years of annual reports and accounts, a copy of the Articles of Association and a copy of the Charity Commission's guidance 'Charity Trustee: what's involved (CC3a)’ and ‘Public Benefit: running a charity’.

Trustees are required to disclose all relevant interests and register them with the Chief Operating Officer in accordance with the Charity's policy withdraw from decisions where a conflict of interest arises.

Approved by order ofthe board of trustees on £2. APA| Zo2

and signed on[its][ behalf][ by:]

| Mr J C Richardson - Trustee \ j

Page 17

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE SALTO FOUNDATION LIMITED independent examiner's report to the trustees of The Salto Foundation Limited (‘the Company’) I report to the charity trustees on my examination of the accounts ofthe Companyfor the year ended 31 December 2020.

Responsibilities and basis of report As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements ofthe Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examinationI have followed the Directions given by the Charity Commission under section {45(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. | can confirm that I am qualified to undertake the examination because ] am a registered member of Institute of Chartered Accountants in England and Wales which is one of the listed bodies.

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:

accounting records were not kept in respect of the Company as required by section 386 ofthe 2006 Act; or 2. the accounts do not accord with those records; or 3: the accounts 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
_ 4. Recommendedthe accounts havePractice fornot been accountingprepared andin reportingaccordanceby charitieswith the (applicablemethods andto charitiesprinciplespreparingof the theirStatementaccountsof in accordance with the Financial Reporting Standard applicable im 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 accounts to be reached.

Tara Aldwin ACA

Institute of Chartered Accountants in England and Wales FKCA Limited 260 - 270 Butterfield Great Marlings Luton Bedfordshire LU2 8DL

Date: .. 32. XPuil.. oSaS2h

Page 18

THE SALTO FOUNDATION LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 31 DECEMBER 2020

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |General|Property|Revaluation| |fund|fund|reserve| |Notes|=|£|£| |INCOME AND ENDOWMENTS FROM| |Grants,|Bursaries,|Fundraising|, Donations|and| |GiftAid|2|115,458|.|-| |Charitable|activities|4| |Charitable|activities|- Primary|purpose|trading|238,529|-|-| |Investment|income|3|9|-|-| |Trading|income|8,172|-|-| |Total|362,168|-|-| |EXPENDITURE ON| |Trading|expenditure|5|11,895|-|=| |Charitable|activities|6| |Charitable|activities|- Primary purpose trading|431,832|-|=| |Total|443,727|-|-| |NET INCOME/(EXPENDITURE)|(81,559)|-|-| |Transfers|between|funds|21|(14,137)|14,137|-| |Other|recognised|gains/(losses)| |Gains on revaluation|of fixed|assets|-|-|250,000| |Net movement|in|funds|(95,696)|14,137|250,000| |RECONCILIATION|OF FUNDS| |Total|funds brought|forward|300,375|469,860|319,070| |TOTAL FUNDS CARRIED|FORWARD|204,679|483,997|569,070| |2020|2019| |Restricted|Total|Total| |fund|funds|funds| |Notes|£|£|ri| |INCOME|AND ENDOWMENTS FROM| |Grants,|Bursaries,|Fundraising|, Donations|and| |GiftAid|2|75,550|191,008|45,060| |Charitable|activities|4| |Charitable|activities|- Primary|purpose|trading|-|238,529|495,557| |Investment|income|3|-|9|44| |The notes form|part|of these|financial|statements|

----- End of picture text -----

Page 19

THE SALTO FOUNDATION LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 31 DECEMBER 2020

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2020|2019| |Restricted|Total|Total| |fund|funds|funds| |Notes|£|£|£| |Trading|income|-|8,172|39,724| |Total|75,550|437,718|580,385| |EXPENDITURE|ON| |Trading expenditure|5|-|11,895|34,806| |Charitable|activities|6| |Charitable|activities|- Primary|purpose|trading|33,259|465,091|538,594| |Total|33,259|476,986|573,400| |NET INCOME/(EXPENDITURE)|42,291|(39,268)|6,985| |Transfers|between|funds|21|-|-|-| |Other|recognised|gains/(losses)| |Gains on|revaluation|of fixed|assets|-|250,000|-| |Net movement|in|funds|42,291|210,732|6,985| |RECONCILIATION|OF FUNDS| |Total funds|brought forward|3,941|1,093,246|1,086,261| |TOTAL FUNDS CARRIED|FORWARD|46,232|1,303,978|1,093,246|

----- End of picture text -----

The notes form part of these financial statements

Page 20

THE SALTO FOUNDATION LIMITED

BALANCE SHEET 31 DECEMBER 2020

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |General|Property|Revaluation| |fund|fund|reserve| |Notes|£|£|£| |FIXED ASSETS| |Tangible|assets|12|14,974|930,930|569,070| |Investments|13|1|-|-| |14,975|930,930|569,070| |CURRENT|ASSETS| |Stocks|14|2,882|“|-| |Debtors|15|246,872|-|-| |Cash|at|bank|and|in|hand|60,299|-|-| |310,053|-|-| |CREDITORS| |Amounts|falling due within one year|16|(37,016)|(47,183)|-| |NET CURRENT ASSETS|273,037|(47,183)|-| |TOTAL ASSETS|LESS|CURRENT| |LIABILITIES|288,012|883,747|569,070| |CREDITORS| |Amounts|falling due after more than one year|17|(83,333)|(399,750)|-| |NET ASSETS|204,679|483,997|569,070|

----- End of picture text -----

The notes form part of these financial statements

Page 21

continued...

THE SALTO FOUNDATION LIMITED

BALANCE SHEET- continued 31 DECEMBER 2020

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2020|2019| |Restricted|Total|Total| |Notes|fund|funds|funds| |FIXED ASSETS|£|Fd|£| |Tangible|assets|12|-|1,514,974|1,250,000| |Investments|13|-|1|1| |-|1,514,975|1,250,001| |CURRENT ASSETS| |Stocks|14|-|2,882|3,859| |Debtors|15|46,232|293,104|301,574| |Cash|at bank|and|in hand|-|60,299|6,445| |46,232|356,285|311,878|.| |CREDITORS| |Amounts|falling|due|within one year|16|-|(84,199)|(54,747)| |NET CURRENT ASSETS|46,232|272,086|257,131| |TOTAL ASSETS LESS CURRENT| |LIABILITIES|46,232|1,787,061|1,507,132| |CREDITORS| |Amounts|falling|due|after more than|one year|17|-|(483,083)|(413,886)| |NET ASSETS|46,232|1,303,978|1,093,246| |FUNDS|21| |Unrestricted|funds|1,257,746|1,089,305| |Restricted|funds|46,232|3,941| |TOTAL FUNDS|1,303,978|1,093,246|

----- End of picture text -----

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
(b) __ preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

The notes form part of these financial statements

Page 22

continued...

THE SALTO FOUNDATION LIMITED

BALANCE SHEET- continued 31 DECEMBER 2020

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the smal! companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on KR. ALE. ZAZA... and were signed on its behalf by:

; wi C Richardson - Trustee - Powell ~

The notes form part of these financial statements

Page 23

ACCOUNTING POLICIES

THE SALTO FOUNDATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the Year Ended 31 DECEMBER 2020

Basis of preparing the financial statements

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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. The Salto Foundation Limited meets the definition of a public benefit entity under FRS 102. The directors have considered the financial health of the company along with the various government measures in place to support businesses through this pandemic and with this in mind the directors believe that the company, at the date of signing, will continue as a going concern for the foreseeable future. The impact of COVID-19 has seen a major disruption to our activities in 2020. In 2021, there will continue to be additional costs associated with maintenance and hygiene arrangements associated with H&S Covid Secure measures. Furthermore, our income will be significantly reduced in 2021. At the date of approval of the accounts, it is too early to state with certainty what the impact of COVID-19 will have on the 2021 financial performance. Some details of the measures taken to date are detailed in this report.

The presentation currency of the financial statements is the Pound Sterling (£).

Preparation of consolidated financial statements

The financial statements contain information about The Salto Foundation Limited as an individual company and do not contain consolidated financial information as the parent of a group. The charity is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In order to properly apply the charity’s accounting policies, as described above, the Trustees are required to make judgements and estimates in respect of carrying values of assets and liabilities which may not be apparent from other sources of information. The Trustees base these critical accounting judgements and estimations on previous historical experience and other factors which the Trustees judge to be relevant. Judgements and estimates will invariably differ from actual results and hence such judgements and estimates are reviewed by the Trustees on an ongoing basis.

Key sources of estimation uncertainty

The key sources of estimation uncertainty which have a significant effect on the amounts recognised in the financial statements are described below:

Property valuation

The fair value of the property has been determined by an external valuer and is derived from the sale of similar buildings within a local radius.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Charitable Activities are divided between Primary Trading Income, Other Trading Income, Fundraising and Investment Income.

Page 24

continued...

THE SALTO FOUNDATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued for the Year Ended 31 DECEMBER 2020

1, ACCOUNTING POLICIES- continued

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Included within fixed assets is a freehold property which is used to further the charity's objectives.

Freehold property is stated at market value. Any aggregate surplus or deficit arising from changes in the fair value is recognised through the statement of financial activities and included in the designated revaluation reserve.

Improvements to property are recognised initially at cost and then subsequently measured at cost less depreciation over its estimated economic useful life and any adjustment for permanent impairment. The useful life for improvements to property are estimated at 10 years (straight line).

Stocks Stocks are valued 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.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Further explanation of the nature and purpose of each fund is included in the notes to the accounts.

Hire purchase and leasing commitments Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Donated services

In accordance with Charities SORP (FRS 102), the general volunteer time of our affiliates is not recognised. This is further discussed in the trustees annual report.

Page 25

continued...

THE SALTO FOUNDATION LIMITED

		NOTESTO	TOTHEFINANCIALSTATEMENTS- continued
			for the YearEnded 31 DECEMBER 2020
2.	GRANTS,BURSARIES,FUNDRAISING ,DONATIONSANDGIFTAID
				2020	2019
				£	£
	Donations Grants Government grants			3,720 92,750 82,857	6,560 28,500 -
	Gift aid			11,681	10,000
				191,008	45,060
	Government grants
	Government grants received,		included inthe above, areas follows:
				2020	2019
				£	£
	CoronavirusJobRetention Scheme(CJRS)			74,283	-
	COVID-19 Business	Support		6,471	-
	Intereston Coronavirus Business InterruptionLoanScheme (CBILS)			2,103	-
				82,857	-
3.	INVESTMENTINCOME
				2020	2019
				£	£
	Depositaccount interest			9	44
4.	INCOME FROMCHARITABLE ACTIVITIES
				2020	2019
			Activity	£	£
			Charitable activities - Primary purpose
	Subscriptions		trading Charitable activities - Primary purpose	214,068	405,631
	Gym Hire		trading	7,725	45,036
			Charitable activities - Primary purpose
	BAGA&BTFmembership __ trading Charitable activities - Primary purpose			-	900
	Badges		trading	1,023	5,475
			Charitable activities - Primary purpose
	Playgym		trading	11,214	26,500
			Charitable activities - Primary purpose
	Competition fees		trading	4,499	12,015
				238,529	495,557

GiftAid During the year, £14,321 (2019: £19,957) was received by Salto Gymnastics Club for GiftAid claims relating to the 2019 financial period (2019: 2013-2018 financial period).

A further £6,700 (2019: £10,000) of GiftAid income has been accrued which relates to the 2020 financial period (2019: 2019 financial period).

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THE SALTO FOUNDATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued

for the Year Ended 31 DECEMBER 2020

----- Start of picture text -----
|||||| |---|---|---|---|---| |55|TRADING EXPENDITURE| |Other trading activities|2020|2019| |£|£| |Clothing|for|sales|7,766|20,360| |Coffee|bar|4,129|14,446| |11,895|34,806| |6.|CHARITABLE|ACTIVITIES COSTS| |Support| |Direct|costs|(see| |Costs|note|7)|Totals| |£|£|£| |Charitable|activities|- Primary|purpose| |trading|391,614|73,477|465,091| |Ts|SUPPORT COSTS| |Management|Finance| |costs|Finance|costs|Totals| |£|£|é|£| |Charitable|activities|- Primary|purpose| |trading|$2;513|4,218|16,746|73,477| |8.|NET INCOME/(EXPENDITURE)|

----- End of picture text -----

Net income/(expenditure) is stated after charging/(crediting):

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2020|2019| |£|£| |Depreciation|- owned|assets|1,664|-| |Hire of|plant and machinery|3,616|7,341| |Other operating|leases|1,658|9,062| |Independent|examiners'|fees|- non assurance|14,920|2,857| |Independent examiners’|fees|1,680|1,680|

----- End of picture text -----

TRUSTEES' REMUNERATION AND BENEFITS

Trustees’ remuneration

During the year £1,762 (2019: £420) was paid to Mrs J B Large (Trustee) under a PAYE contract as a Gymnastics Coach providing temporary absence or maternity leave cover, this is included in the wages total in described in Note 10.

Aside from the above, there were no further trustees’ remuneration or other benefits for the year ended 31 December 2020 or for the year ended 31 December 2019.

Trustees' expenses

There were no trustees’ expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.

continued...

Page 27

THE SALTO FOUNDATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued

for the Year Ended 31 DECEMBER 2020

10. STAFF COSTS

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2020|2019| |£|£| |Wages and|salaries|233,058|256,865| |Social|security|costs|3,942|8,702| |Other pension|costs|3,731|4,240| |240,731|269,807| |The average monthly number of|employees|during the year was as|follows:| |2020|2019| |Average employees|39|39| |No employees received|emoluments|in|excess|of|£60,000.| |11.|COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES| |General|Property|Revaluation|Restricted|Total| |fund|fund|reserve|fund|funds| |£|£|£|£|£| |INCOME|AND| |ENDOWMENTS FROM| |Grants,|Bursaries,| |Fundraising|, Donations|and| |GiftAid|16,560|.|-|28,500|45,060| |Charitable|activities| |Charitable|activities|-|Primary| |purpose|trading|495,557|-|-|-|495,557| |Investment|income|44|-|-|-|44| |Trading|income|39,724|-|-|-|39,724| |Total|551,885|-|°|28,500|580,385| |EXPENDITURE|ON| |Trading expenditure|34,806|-|-|-|34,806| |Charitable|activities| |Charitable|activities|- Primary| |purpose trading|509,035|-|-|29,559|538,594| |Total|543,841|-|-|29,559|573,400| |NET| |INCOME/(EXPENDITURE)|8,044|-|-|(1,059)|6,985| |Transfers|between|funds|(47,183)|47,183|.|-|-| |Net movement|in|funds|(39,139)|47,183|-|(1,059)|6,985|

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THE SALTO FOUNDATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued for the Year Ended 31 DECEMBER 2020

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |11.|COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES|- continued| |General|Property|Revaluation|Restricted|Total| |fund|fund|reserve|fund|funds| |£|£|£|£|£| |RECONCILIATION|OF| |FUNDS| |Total|funds|brought| |forward|339,514|422,677|319,070|5,000|1,086,261| |TOTAL FUNDS CARRIED| |FORWARD|300,375|469,860|319,070|3,941|1,093,246| |12,|TANGIBLE|FIXED|ASSETS| |Improvements| |Freehold|to| |property|property|Totals| |£|£|£| |COST OR VALUATION| |At|1|January 2020|1,250,000|-|1,250,000| |Additions|-|16,638|16,638| |Revaluations|250,000|-|250,000| |At 31|December 2020|1,500,000|16,638|1,516,638| |DEPRECIATION| |Charge|for year|~|1,664|1,664| |NET BOOK VALUE| |At 31|December|2020|1,500,000|14,974|1,514,974| |At 31|December 2019|1,250,000|=|1,250,000|

----- End of picture text -----

The freehold property is recorded at fair value of £1,500,000 with the original cost, which would also be the carrying net book value under the cost model, set at £930,930.

The valuation was carried out by an external valuer, Berry's UK on 7 January 2021. The Trustees agree the value will not have changed between 31 December 2020 and the date of this valuation.

FIXED ASSET INVESTMENTS

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Unlisted| |investments| |£| |MARKET VALUE| |At|1|January 2020|and|31|December 2020|I| |NET BOOK VALUE| |At 31|December 2020|1| |At 31|December 2019|1| |There|were|no|investment|assets|outside the UK.|

----- End of picture text -----

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THE SALTO FOUNDATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued for the Year Ended 31 DECEMBER 2020

FIXED ASSET INVESTMENTS- continued The company’s investments at the balance sheet date in the share capital of companies include the following:

Salto Leisure Limited

Registered office: 260 - 270 Butterfield, Great Marlings, Luton, Bedfordshire, England, LU2 8DL Nature of business: Sports and recreation education

		%
	Class ofshare:	holding
	£1 ordinary	100	31.12.20	31.12.19
			£	£
	Aggregate capital and reserves		(176,191)	(212,167)
	Profit for theyear		36,137	59,926
14.	STOCKS
			2020	2019
			£	£
	Stocks		2,882	3,859
15.	DEBTORS:AMOUNTSFALLING DUEWITHINONEYEAR
			2020	2019
			£	£
	Amountsowedby subsidiary		243,273	288,679
	Accrued income		49,573	10,000
	Prepayments		258	2,895
			293,104	301,574
16.	CREDITORS:AMOUNTS FALLINGDUEWITHINONEYEAR
			2020	2019
			£	£
	Bank loans (seenote 18)		63,849	47,184
	Trade creditors		1,700	360
	Social securityand othertaxes		10,374	1,994
	Accruals		8,276	5,209
			84,199	54,747

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THE SALTO FOUNDATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued for the Year Ended 31 DECEMBER 2020

|17.||CREDITORS:AMOUNTSFALLINGDUEAFTERMORETHAN ONEYEAR2020||CREDITORS:AMOUNTSFALLINGDUEAFTERMORETHAN ONEYEAR2020|2019| |---|---|---|---| |||£|£| ||Bank loans (see note 18)|483,083|413,886| |18.|LOANS||| |||2020|2019| ||Bank loans: Mortgage|£|£| ||Repayable by instalments||| ||Less than ] year|47,183|47,184| ||1-5 years|188,732|188,732| ||More than 5 years|211,018|225,154| |||446,933|461,070| |||2020|2019| ||Bank loans: Coronavirus Business Interruption LoanScheme|£|£| ||Repayable byinstalments||| ||Lessthan 1 year|16,667|-| ||1-5 years|83,333|-| ||More than 5 years|-|-| |||100,000|-| |||2020|2019| ||Bank loans: Total|£|£| ||Repayable by instalments||| ||Lessthan 1 year|63,850|47,184| ||1-5 years|272,065|188,732| ||More than 5 years|211,018|225,154| |||546,933|461,070|

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continued...

THE SALTO FOUNDATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued for the Year Ended 31 DECEMBER 2020

19. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2020|2019| |£|£| |Within one year|3,337|4,039| |Between one|and|five years|4,417|8,457| |7,754|12,496| |SECURED DEBTS DEBTS| |The|following secured|debts|are|included|within|creditors:| |2020|2019| |£|£| |Bank|loans|$46,932|461,070|

----- End of picture text -----

20. SECURED DEBTS DEBTS

The bank loan is secured against the property in which it relates.

MOVEMENT IN FUNDS

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Net|Transfers| |movement|between|At| |At|1.1.20|in|funds|funds|31.12.20| |£|fe|£|£| |Unrestricted|funds| |General|fund|300,375|(81,559)|(14,137)|204,679| |Designated revaluation fund| |319,070|250,000|-|569,070| |Property|fund|469,860|-|14,137|483,997| |1,089,305|168,44}|-|1,257,746| |Restricted|funds| |Restricted|3,941|42,291|=|46,232| |TOTAL FUNDS|1,093,246|210,732|-|1,303,978|

----- End of picture text -----

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THE SALTO FOUNDATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued for the Year Ended 31 DECEMBER 2020

21. MOVEMENT IN FUNDS - continued

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

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Incoming|Resources|Gains|and|Movement| |resources|expended|losses|in|funds|.| |£|£|£|£| |Unrestricted|funds| |General|fund|362,168|(443,727)|-|(81,559)| |Designated|revaluation|fund| |-|.|250,000|250,000| |362,168|(443,727)|250,000|168,441| |Restricted|funds| |Restricted|75,550|(33,259)|-|42,291| |TOTAL FUNDS|437,718|(476,986)|250,000|210,732| |Comparatives|for movement|in|funds| |Net|Transfers| |movement|between|At| |At|1.1.19|in funds|funds|31.12.19| |£|£|£|£| |Unrestricted|funds| |General|fund|339,514|8,044|(47,183)|300,375| |Designated|revaluation|fund| |319,070|-|-|319,070| |Property|fund|422,677|-|47,183|469,860| |1,081,261|8,044|-|1,089,305| |Restricted|funds| |Restricted|5,000|(1,059)|-|3,941| |TOTAL FUNDS|1,086,261|6,985|-|1,093,246| |Comparative|net movement|in|funds,|included|in the above|are|as follows:| |Incoming|Resources|Movement| |resources|expended|in funds| |£|£|£| |Unrestricted|funds| |General|fund|551,885|(543,841)|8,044| |Restricted|funds| |Restricted|28,500|(29,559)|(1,059)| |TOTAL FUNDS|580,385|(573,400)|6,985|

----- End of picture text -----

continued...

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THE SALTO FOUNDATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued for the Year Ended 31 DECEMBER 2020

21. MOVEMENT IN FUNDS- continued

A current year 12 months and prior year 12 months combined position is as follows:

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Net|Transfers| |movement|between|At| |At|1.1.19|in|funds|funds|31.12.20| |£|£|£|£| |Unrestricted|funds| |General|fund|339,514|(73,515)|(61,320)|204,679| |Designated|revaluation|fund| |319,070|250,000|-|569,070| |Property|fund|422,677|-|61,320|483,997| |1,081,261|176,485|-|1,257,746| |Restricted|funds| |Restricted|5,000|41,232|-|46,232| |TOTAL FUNDS|1,086,261|217,717|-|1,303,978|

----- End of picture text -----

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Incoming|Resources|Gains|and|Movement| |resources|expended|losses|in funds| |£|£|£|£| |Unrestricted|funds| |General|fund|914,053|(987,568)|.|(73,515)| |Designated revaluation|fund| |=|-|250,000|250,000| |914,053|(987,568)|250,000|176,485| |Restricted|funds| |Restricted|104,050|(62,818)|-|41,232| |TOTAL FUNDS|1,018,103|(1,050,386)|250,000|217,717|

----- End of picture text -----

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continued...

THE SALTO FOUNDATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued for the Year Ended 31 DECEMBER 2020

21. MOVEMENT IN FUNDS - continued

Breakdown ofRestricted Income
Bedfordshire and LutonCommunity Foundation	£4,050
COVID-19Emergency Funding fordesignated costs.
LondonLutonAirportCommunity Fund	£5,000
Originally concessionary Pricing andBursaryFunding approved variationtosupport less
well offfamilies.
Sports England	£10,000
COVID-19EmergencyFunding fordesignated costs.
Baily Thomas CharitableFund	£1,000
COVID-19EmergencyFundingfordesignated costs.
SportEngland Returnto Play CommunityAssetFund	£50,000
Air,HeatLightProject -Ventilationandnew lighting.
Low Carbon Workplace Lighting Project. Air,HeatLightProject -Ventilation andnewlighting.	£5,000
Active Luton COVID-19 EmergencyFunding fordesignated costs.	£500
Totalrestrictedincome	£75,550

Transfers between funds

Funds transfered between the property and general fund are the transfer of cash held at bank and in hand to settle the loan paid off during the year.

Detail of funds

----- Start of picture text -----
Funds have been designated at the discretion of the Board of Trustees as follows:
----- End of picture text -----

General funds This is money that can be spent on anything which furthers the objectives of The Salto Foundation Limited.

Designated property fund The purpose of this fund is to separate the cost of the property and the corresponding bank loan. Dae i ‘casio find The purpose of this fund is to separate the revaluation of the property in previous years from the general and property fund.

Restricted funds Detail of this fund can be found in the Report of the Trustees.

Page 35

continued...

COMPANY LIMITED BY GUARANTEE

THE SALTO FOUNDATION LIMITED

NOTES TO THE FINANCIAL STATEMENTS- continued

for the Year Ended 31 DECEMBER 2020

RELATED PARTY DISCLOSURES

At the year end, The Salto Foundation Limited was owed £243,273 (2019: £288,679) by its subsidiary, Salto Leisure Limited. The balance is repayable on demand and is non-interest bearing.

At the year end, Salto Gymnastics club owed £15,108 (2019: £5,903) to Salto Leisure Limited. As part of the merger, the liability owed to Salto Leisure Limited was subsumed by The Salto Foundation Limited and is included within the totals above.

Prior to the date of merger, Salto Gymnastics club paid rent to Salto Leisure Limited during the year totalling £90,830 (2019 £98,200),

During the year, £30,000 (2019: £24,315) was paid to Discover Project Solutions Limited, a company which Mr J C Richardson (Trustee) is the controlling party, for the provision of consultancy and support services to Salto Gymnastics Club, including acting as Chief Operating Officer. This expense is included within management support costs.The contract for services complies with the statutory provision of the Charities Act 2011, Section 185.

Close family members of two Trustees were employed by the charity during the year, with total remuneration paid, under PAYE contracts, of £22,317 in 2020 (2019: £43,499).

ULTIMATE CONTROLLING PARTY

The charitable company's ultimate controlling party is the Board of Trustees.

The company is limited by guarantee and has no share capital.

Every member of the company undertakes to contribute to the assets of the company, in the event of winding up, such an amount as may be required not exceeding £1.

MERGER ACCOUNTING

On 31 December 2020, a merger took place merging the activities and net assets of Salto Gymnastics Club (SGC) (charity number 1051367) into The Salto Foundation Limited (TSFL). The registered address of this charity 260 - 270 Butterfield, Great Marlings, Luton, Bedfordshire, LU2 8DL.

The only significant adjustments to note as part of this merger are the merging of inter-charity balances (totalling £11,638 for 2020 and nil for 2019) and inter-charity donations totalling £47,120 from SGC to TSFL (2019: £52,178). No other adjustments have been made as a result of this merger.

ANALYSIS OF PRINCIPAL SOFA COMPONENTS FOR THE CURRENT REPORTING PERIOD

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |The|Salto|Salto| |Foundation|Gymnastics|Combined| |Limited|Club|Limited|Total| |£|£|£| |Total|income|2,103|435,614|437,717| |Total|expenditure|26,775|465,185|491,960| |Net|income/(expenditure)|(24,672)|(29,571)|(54,243)| |Other|gains/(losses)| |Net movement|in|funds|(24,672)|(29,571)|(54,243)|

----- End of picture text -----

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continued...

THE SALTO FOUNDATION LIMITED

ANALYSIS OF PRINCIPAL SOFA COMPONENTS FOR THE PREVIOUS REPORTING PERIOD

NOTES TO THE FINANCIAL STATEMENTS- continued for the Year Ended 31 DECEMBER 2020

	The Salto	Salto
	Foundation Limited	Gymnastics Club Limited	Combined Total
	£	£	£
Total income	-	580,385	580,385
Totalexpenditure Netincome/(expenditure)	19,900 (19,900)	553,501 26,885	573,400 6,985
Other gains/(losses) Netmovement in funds	(19,900)	26,885	6,985
Totalfunds brought forward	1,050,717	35,544	1,086,261
Total funds carried forward	1,030,817	62,429	1,093,246
ANALYSISOF NETASSETSATTHEDATE OFMERGER
	The Salto	Salto
	Foundation	Gymnastics	Combined
	Limited	Club Limited	Total
	£	£	£
Net assets	1,267,081	21,922	1,289,003
Represented by: Unrestricted funds	1,267,081	(24,310)	1,242,771
Restricted funds	-	46,232	46,232
Totalfunds	1,267,081	21,922	1,289,003

ANALYSIS OF NET ASSETS AT THE DATE OF MERGER
DEPARTURE FROM THE REQUIREMENTS OF THE COMPANIES ACT 2006

The Salto Foundation Limited have opted to report the combination of Salto Gymnastics Club and The Salto Foundation Limited using merger accounting principles. This is in accordance with section 27 of The Charities Statement ofRecommended Practice (SORP) but represents a departure from Companies Act 2006. The board of trustees have concluded that the financial statements present fairly the financial position and financial performance. The Salto Foundation Limited have complied with applicable legislation, aside from this departure (paragraph 10 of Schedule 6 of the Regulations as defined by FRS 102), in order to achieve a true and fair presentation.

The financial statements have been prepared on a merger accounting basis and the results for Salto Gymnastics Club for the 2020 and 2019 periods have been included within the financial statements.

The treatment that the applicable legislation required is the adoption of the acquisition method of a business combination. This treatment is deemed to be misleading as the boards of Trustees, for both charities, agreed to merge activities and have obtained confirmation from the Charity Commission of this arrangement.

Page 37

THE SALTO FOUNDATION LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

for the Year Ended 31 DECEMBER 2020

for thethe Year Ended 31 DECEMBER	2020
	2020	2019
	£	£
INCOMEANDENDOWMENTS
Grants, Bursaries, Fundraising , Donations andGiftAid
Donations Grants Government grants Giftaid	3,720 92,750 82,857 11,681	6,560 28,500 - 10,000
	191,008	45,060
Investment income
Depositaccount interest	9	44
Charitable activities
Subscriptions GymHire BAGA&BTFmembership	214,068 7,725 -	405,631 45,036 900
Badges Playgym Competition fees	1,023 11,214 4,499	5,475 26,500 12,015
	238,529	495,557
Tradingincome
Merchandise CoffeeBar Sales	4,595 S577	20,920 18,804
	8,172	39,724
Total incoming resources	437,718	580,385
EXPENDITURE
Other trading activities Clothing forsales Coffee bar	7,766 4,129	20,360 14,446
	11,895	34,806
Charitable activities
Wages Social security Pensions	233,058 3,942 3731	256,865 8,702 4,240
Hireofplant andmachinery Otheroperating leases Rates and water	3,616 1,658 9,353	7,341 9,062 12,048
Insurance Light and heat Carriedforward	3,955 3,835 263,148	4,210 11,518 313,986

This page does not form part of the statutory financial statements

Page 38

THE SALTO FOUNDATION LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 DECEMBER 2020

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2020|2019| |£|£| |Charitable|activities| |Brought forward|263,148|313,986| |Telephone|2,140|2,240| |Postage and|stationery|1,697|2,750| |Advertising|-|435| |Sundries|319|2,027| |Donations|(45)|5,909| |Subscriptions|and|licences|5,274|6,253| |Repairs|and|maintenance|4,505|1,511| |Repairs and|renewals|13,000|11,776| |Cleaning|and waste|disposal|9,082|21,056| |Membership|fees|-|2,585| |Turin cup|-|4,087| |Rent paid|-|Salto|Leisure|Limited|90,830|98,200| |Donations|-|50| |Concessionary hire|discount|-|1,140| |Improvements|to|property|1,664|-| |391,614|474,005| |Support|costs| |Management|costs| |Legal|and|professional|fees|5,413|7,953| |Consultancy|30,500|27,097| |Independent|examiners’|fees|- non|assurance|6,664|2,857| |Independent|examiners'|fees|1,680|1,680| |Independent examiners'|fees|-|payroll|costs|4,080|2,700| |Independent|examiners’|fees|-|payroll|costs| |(CJRS)|4,176|-| |52:513,|42,287| |Finance| |Bank charges|4,218|4,188| |Finance|costs| |Bank|Joan|interest|16,746|18,114| |Total|resources expended|476,986|573,400| |Net (expenditure)/income|(39,268)|6,985|

----- End of picture text -----

This page does not form part of the statutory financial statements

Page 39