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2021-03-31-accounts

COMPANY REGISTRATION NUMBER: 04294585 CHARITY REGISTRATION NUMBER: 1107773

City of Newcastle Gymnastics Academy Limited Company Limited by Guarantee Unaudited Financial Statements

31 March 2021

CENSIS

Chartered accountant Exchange Building 66 Church Street Hartlepool TS24 7DN

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Financial Statements

Year ended 31 March 2021

Page
Trustees' annual report (incorporating the director's report) 1
Independent examiner's report to the trustees 5
Statement of financial activities (including income and
expenditure account) 7
Statement of financial position 8
Statement of cash flows 10
Notes to the financial statements 11

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 March 2021

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 March 2021.

Reference and administrative details

Registered charity name City of Newcastle Gymnastics Academy Limited Charity registration number 1107773 Company registration number 04294585 Principal office and registered Benfield Road office Walkergate Newcastle Upon Tyne NE6 4NU

The trustees

J O'Neil G A Armstrong A Robinson K Scott H Bramald K Weir J Cairns N A Davidson (Appointed 8 May 2020) B Morrison (Appointed 4 June 2020) S K M Pateman

Company secretary

Censis Chartered accountant Exchange Building 66 Church Street Hartlepool TS24 7DN

Accountants

1

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2021

Structure, governance and management

The organisation is a charitable company limited by guarantee and registered as a charity on 25 January 2005. The company was established under a Memorandum of Association.

Governance arrangements

The Trustees of the charity are also known as the directors of the company for the purposes of this report.

Overall responsibility lies with the directors of the company. The number of directors shall not be less than 3, but shall not be subject to any maximum.

The directors have the power to appoint any person as a director. One third of directors each year retire on rotation, unless no one is willing to take up office.

All directors are provided with information regarding their responsibilities.

Day to day management is delegated to the Gymnastics Manager who is responsible for delivering the work programme, ongoing financial management and human resource matters.

Objectives and activities

Aims & Objectives

The charity was formed to promote and provide high performance gymnastics for members at all levels and abilities from elite gymnastics to foundation level and promote and provide high performance gymnastics facilities for the benefit of the inhabitants of the City of Newcastle and the surrounding areas. Together with the promotion of community participation in healthy recreation by the provision of facilities for the sport of gymnastics.

The Benfield Sport Centre is home to The City of Newcastle Gymnastics Academy, which was opened in 2001 by former Russian Olympic Gymnasts Svetlana Khorkina and Alexei Nemoz.

Our purpose-built gymnastic facility is one of the biggest and best-equipped training and competition venues in Europe, hosting regional, national and international events. Our aim is to provide a safe and challenging environment for gymnasts at all levels.

Heading our team is Chief Executive Karen Chapman, a High Performance Coach (HPC) and National Judge for British Gymnastics. Karen is supported by a strong and dedicated team of highly qualified and experienced coaches.

The centre is open 7 days a week and run a variety of classes to suit all age groups and abilities including pre-school, Recreational, general, Elite Artistic Gymnastics (Men's & Women's) and Team Gym.

The Academy has produced gymnasts who have qualified for the British National Gymnastics Squads in both Women's and Men's Artistic Gymnastics and European Squads in TeamGym.

At the City of Newcastle Gymnastics Academy we believe exercise is important for the future health and wellbeing of our children. Gymnastics teaches determination, drive, discipline and dedication. But above all - gymnastics is fun…..!!

2

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2021

Objectives and activities (continued)

Our Mission

The City of Newcastle Gymnastics Academy is committed to the provision of quality facilities and the development of gymnastics in the Newcastle and North Tyne area. The Gymnastics Academy provides opportunities for all abilities, from recreational classes, county and regional training squads through to international gymnastics.

Grants are considered for the following:

Grants will be considered for equipment that is necessary for a gymnast or gymnastics coach to progress in the sport.

Strategic report

The following sections for achievements and performance and financial review form the strategic report of the charity.

Achievements and performance

2020/2021 has certainly tested our resilience both from a performance and financial perspective. I am delighted to see that as ever we have spotted the opportunities in this adversity and finally used our reserves to improve the physical facility ensuring that CNGA is future-proofed and will meet its demand in the region. This is a credit to management and staff, especially the building project and 'comeback' teams. Well done.

The Trustees at the Academy have spent quite some time looking at board performance, make up and abilities. We are conscious of new requirements being placed upon charities to ensure their boards are effective and representative. Our governance issues are a regular topic in meetings, and we hope to expand the board of Trustees as soon as additions are identified. We have already begun the process of tenure limits, and will complete this within 2 years. We have also begun assessing and analysing risks through a Business Continuity Plan, which will be a working document to refer to continually.

Due to the COVID Pandemic there has been no competitions to report on.

The Trustees are happy that we are meeting our charitable objectives across all areas, and hope to produce Public Benefit reports from this point that outline succinctly our achievements."

3

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2021

Financial review

The statement of Financial Activities shows a deficit for the year of £79,507 and total reserves stand at £718,723.

Reserves Policy and Risk Management

It is the policy of the charity to maintain unrestricted funds which are the free reserves of the charity, at a level which equates to approximately four to eight months unrestricted expenditure. This provides sufficient funds to cover management and administration and support costs and to respond to emergencies.

The unrestricted reserves of the charity at 31 March 2021 amounted to £718,723 of which free reserves (i.e. those not tied up in fixed assets and designated funds) amounted to £190,185.

The trustees actively review the major risks which the charity face on a regular basis and believe that maintaining our free reserves at the levels stated above, will provide sufficient resources in the event of adverse conditions.

The trustees' annual report and the strategic report were approved on 20 October 2021 and signed on behalf of the board of trustees by:

J O'Neil Trustee

4

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of City of Newcastle Gymnastics Academy Limited

Year ended 31 March 2021

I report to the trustees on my examination of the financial statements of City of Newcastle Gymnastics Academy Limited ('the charity') for the year ended 31 March 2021.

Responsibilities and basis of report

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’).

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

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), 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:

  1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or

  4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

5

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of City of Newcastle Gymnastics Academy Limited (continued)

Year ended 31 March 2021

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.

CENSIS Chartered accountant Exchange Building 66 Church Street Hartlepool TS24 7DN

6

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

31 March 2021

2021 2021 2020
Unrestricted
funds Total funds Total funds
Note £ £ £
Income and endowments
Donations and legacies 5 191,232 191,232 193
Charitable activities 6 215,370 215,370 692,765
Other trading activities 7 14,607 14,607 72,607
Investment income 8 2,862 2,862 3,568
  
Total income 424,071 424,071 769,133
  
Expenditure
Expenditure on raising funds:
Costs of other trading activities 9 4,097 4,097 20,512
Expenditure on charitable activities 10 499,481 499,481 718,754
  
Total expenditure 503,578 503,578 739,266
  
  
Net (expenditure)/income and net movement in funds (79,507) (79,507) 29,867
  
Reconciliation of funds
Total funds brought forward 798,230 798,230 768,364
  
Total funds carried forward 718,723 718,723 798,231
  

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 11 to 18 form part of these financial statements.

7

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Statement of Financial Position

31 March 2021

2021 2020
£ £
Fixed assets
Tangible fixed assets 15 528,538 193,587
Current assets
Stocks 16 9,206 8,716
Debtors 17 10 18,182
Cash at bank and in hand 286,399 600,344
 
295,615 627,242
Creditors: amounts falling due within one year 18 55,430 22,598
 
Net current assets 240,185 604,644
 
Total assets less current liabilities 768,723 798,231
Creditors: amounts falling due after more than one year 19 50,000
 
Net assets 718,723 798,231
 
Funds of the charity
Unrestricted funds 718,723 798,231
 
Total charity funds 22 718,723 798,231
 

For the year ending 31 March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

The statement of financial position continues on the following page. The notes on pages 11 to 18 form part of these financial statements.

8

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Statement of Financial Position (continued)

31 March 2021

These financial statements were approved by the board of trustees and authorised for issue on 20 October 2021, and are signed on behalf of the board by:

J O'Neil Trustee

The notes on pages 11 to 18 form part of these financial statements.

9

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Statement of Cash Flows

Year ended 31 March 2021

2021 2020
£ £
Cash flows from operating activities
Net (expenditure)/income (79,507) 29,867
Adjustments for:
Depreciation of tangible fixed assets 25,552 23,632
Other interest receivable and similar income (2,862) (3,568)
Deferred income 51,566
Changes in:
Stocks (490) (2,762)
Trade and other debtors 18,172 (12,430)
Trade and other creditors (18,735) 19,234
 
Cash generated from operations (6,304) 53,973
Interest received 2,862 3,568
 
Net cash (used in)/from operating activities (3,442) 57,541
 
Cash flows from investing activities
Purchase of tangible assets (360,503) (37,399)
 
Net cash used in investing activities (360,503) (37,399)
 
Cash flows from financing activities
Proceeds from borrowings 50,000
 
Net cash from financing activities 50,000
 
Net (decrease)/increase in cash and cash equivalents (313,945) 20,142
Cash and cash equivalents at beginning of year 600,344 580,202
 
Cash and cash equivalents at end of year 286,399

600,344


The notes on pages 11 to 18 form part of these financial statements.

10

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2021

1. General information

The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Benfield Road, Walkergate, Newcastle Upon Tyne, NE6 4NU.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

11

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

12

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

3. Accounting policies (continued)

Tangible assets (continued)

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery - 10% reducing balance Equipment - 20% reducing balance

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

4. Limited by guarantee

City of Newcastle Gymnastics Academy Limited is a company limited by guarantee and accordingly does not have any share capital.

Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

13

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

5. Donations and legacies

Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Donations
Donations 1,731 1,731 193 193
Parents Fundraising Committee 11,500 11,500
Grants
Newcastle City Council - Covid grant 16,988 16,988
Job Rentention Scheme 161,013 161,013
   
191,232 191,232 193 193
   
6. Charitable activities
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Fee income 189,020 189,020 498,737 498,737
Centre Academy membership 17,505 17,505 26,079 26,079
Events/competitions/courses 721 721 159,563 159,563
Coaching staff & cleaners 8,124 8,124 8,386 8,386
   
215,370 215,370 692,765 692,765
   
7. Other trading activities
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Vending machines 5,000 5,000 30,000 30,000
Sale of merchandise & sport
equipment 6,164 6,164 29,330 29,330
Hire of centre 60 60 8,087 8,087
Advertising 650 650 1,772 1,772
Other 2,733 2,733 3,418 3,418
   
14,607 14,607 72,607 72,607
   
8. Investment income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Bank interest received 2,862 2,862 3,568 3,568
   

14

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

9. Costs of other trading activities

Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Opening stock 8,716 8,716 5,954 5,954
Closing stock (9,206) (9,206) (8,716) (8,716)
Tshirts 809 809 642 642
Chalk 523 523 760 760
Loops 275 275 563 563
Badges 960 960
Leotards 506 506 10,208 10,208
Shorts 21 21 962 962
Tracksuits 166 166 1,368 1,368
Wristbands 188 188 750 750
Leggings 181 181 1,731 1,731
Handguards 182 182
Hoodies 438 438 2,215 2,215
Joggers 184 184
Gym bags 436 436 1,173 1,173
Unitards 270 270
Gloves 20 20 30 30
Onsies 861 861 948 948
Jackets 72 72 328 328
Drinking Bottles 74 74
Pre School Starter 17 17
   
4,097 4,097 20,512 20,512
   
10. Expenditure on charitable activities by fund type
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
General fund 499,481 499,481 718,754 718,754
   
11. Net (expenditure)/income
Net (expenditure)/income is stated after charging/(crediting):
2021 2020
£ £
Depreciation of tangible fixed assets 25,552 23,632
 
12. Independent examination fees
2021 2020
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 720 720
 

15

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

13. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as The total staff costs and employee benefits for the reporting period are analysed as follows:
2021 2020
£ £
Wages and salaries 293,474 306,155
Social security costs 18,146 23,607
Employer contributions to pension plans 5,349 5,646
 
316,969 335,408
 

The average head count of employees during the year was 18 (2020: 17). The average number of full-time equivalent employees during the year is analysed as follows:

2021 2020
No. No.
Charitable activities 18 17
 

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

14. Trustee remuneration and expenses

No remuneration or other benefits from employment as trustees with the charity or a related entity were received by any the trustees.

15. Tangible fixed assets

Freehold Plant and
property machinery Equipment Total
£ £ £ £
Cost
At 1 April 2020 343,919 19,164 363,083
Additions 327,625 20,961 11,917 360,503
   
At 31 March 2021 327,625 364,880 31,081 723,586
   
Depreciation
At 1 April 2020 154,755 14,741 169,496
Charge for the year 23,458 2,094 25,552
   
At 31 March 2021 178,213 16,835 195,048
   
Carrying amount
At 31 March 2021 327,625 186,667 14,246 528,538
   
At 31 March 2020 189,164 4,423 193,587
   
16. Stocks
2021 2020
£ £
Raw materials and consumables 9,206 8,716
 

16

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

17. Debtors
2021 2020
£ £
Trade debtors 5,594
Other debtors 10 12,588
 
10 18,182
 
18. Creditors: amounts falling due within one year
2021 2020
£ £
Accruals and deferred income 52,286 720
Other creditors 3,144 21,878
 
55,430 22,598
 
19. Creditors: amounts falling due after more than one year
2021 2020
£ £
Bank loans and overdrafts 50,000
 
20. Deferred income
2021 2020
£ £
Amount deferred in year 51,566
 
21. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £5,349 (2020: £5,646).

22. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At At 31 March
1 April 2020 Income Expenditure 2021
£ £ £ £
General funds 798,230

424,071

(503,578)

718,723


17

City of Newcastle Gymnastics Academy Limited

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2021

23. Analysis of net assets between funds

Unrestricted Total Funds Total Funds
Funds 2021 2020
£ £ £
Tangible fixed assets 528,538 528,538 193,587
Current assets 295,615 295,615 627,242
Creditors less than 1 year (55,430) (55,430) (22,598)
Creditors greater than 1 year (50,000) (50,000)
  
Net assets 718,723 718,723 798,231
  

Net assets

18