Charity number: 1157394 South Durham Gymnastics Annual report For the year ended 30 June 2022
South Durham Gymnastics
Contents
| Page | |
|---|---|
| Reference and administrative details | 1 |
| Trustees' report | 2 - 5 |
| Trustees' responsibilities statement | 6 |
| Independent examiner's report | 7 |
| Statement of financial activities | 8 |
| Balance sheet | 9 |
| Notes to the financial statements | 10 - 18 |
South Durham Gymnastics
Reference and administrative details For the year ended 30 June 2022
| Trustees | Paul Anderson |
|---|---|
| Craig Bell | |
| Marion Gates | |
| Gordon McDonald | |
| Tracy McKeown | |
| Charity registered number 1157394 Principal office 1 Flambard Drive Bishop Auckland County Durham DL14 7GG Accountants UNW LLP Chartered Accountants Citygate St James' Boulevard Newcastle upon Tyne NE1 4JE |
Page 1
South Durham Gymnastics
Trustees' report For the year ended 30 June 2022
The trustees present their annual report together with the financial statements of the charity South Durham Gymnastics for the year ended 30 June 2022.
Objectives and activities
Policies and objectives
The principal objective of the charity is to promote the healthy recreational opportunities for the benefit of South West Durham residents as well as the wider community This is achieved through the provision of facilities for participating in gymnastics and gymnastic related activities under the guidance of qualified and enthusiastic coaches.
The activities of the charity, which is affiliated to British Gymnastics, include training and coaching for members, and the organisation of club and open gymnastics competitions.
In accordance with the Charities Act 2011, the trustees have referred to the guidance contained in the Charities Commission's general guidance on public benefit when reviewing the aims and objectives of the charity and when planning future activities.
Achievements and performance
Review of activities
The charity provides a safe, effective and child friendly environment in which members can participate in and explore gymnastics / gymnastic related activities at every level of participation, from birth to adults. This is delivered under the guidance of a board of trustees and two very experienced and dedicated Head Coaches, further supported by approximately 32 full and part time staff, and several volunteers.
The charity has circa 2,000 visits a week, made up of recreational participants (average of 775 per week), squad gymnasts (average of 175), adults, baby gym attendees, special needs, school visits, university students and underprivileged groups. Waiting lists continue to stand at around 1,000 people.
All age-appropriate squad gymnasts have the opportunity to take part in various competitions throughout the year, including Club, County, Regional and National events.
The successes this year have included:
-
Implementing a new timetable, combining operational methods from before and throughout the pandemic
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Introducing a new squad / competitive structure and pathway to allow for a more seamless transitions into, and between competitive groups
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Reintroduction of competitions hosted by the charity, the first since February 2020
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1 gymnast selected for England Squad
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20 gymnasts selected for the North of England Regional Squad
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Redesign and installation of 7 large feature canvasses throughout the gymnastics hall, representing the core values of the charity
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£18,000 secured from the local Area Action Partnership (Spennymoor AAP) to purchase new 4,000 foam units and socks to top up the 3 foam pits within the gymnastics hall
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£12,000 raised via Crowdfunder and an additional £6,000 secured from Sport England to replace and improve worn and torn equipment throughout the gym
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1 x staff member passing High Performance Coaching Qualification (Level 5)
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1 x staff member passing Level 4 Coaching Qualification
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3 x staff members passing Level 2 Coaching Qualifications
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2 x staff members passing Level 1 Coaching Qualifications
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1 x staff member passing Brevet Judging exam - now qualified as an International Judge
-
1 x staff awarded 2021 Home Nation Regional Award of Merit by British Gymnastics
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Recruiting a Level 1 coach to support the charity
Page 2
South Durham Gymnastics
Trustees' report (continued) For the year ended 30 June 2022
Achievements and performance (continued)
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Recruiting an Apprentice, associated with office administration and coaching
-
Policies & Procedures continue to be updated and improved, and the club works diligently to be continuously GDPR compliant
Financial review
The charity generated income of £536,825 (2021: £394,615) during the year and incurred expenditure of £648,665 (2021: £410,617). The trustees are very pleased with the results of the charity in its seventh year, considering it was forced to close due to the COVID-19 pandemic, and believe there is a solid foundation for the charity to develop in future years, as we emerge from the pandemic.
Reserves policy
Trustees aim to hold between three and six months running costs as free reserves. The charity's unrestricted reserves currently stand at £5,955, of which £64,616 is tied up in fixed assets leaving a deficit of £58,661 as free reserves. This is below the level set by the Trustees. However, given the economic circumstances caused by the Covid-19 pandemic and the higher than normal legal costs to challenge the suspensions of the 2 coaches, the trustees are satisfied with this position and will continue to aim to build reserves within the charity based on increasing capacity.
Going concern
Higher than planned expenditure has incurred as as result of challenging the rulings on the suspension of 2 coaches which are not expected to recur in future periods For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Cashflow forecasts are updated on a monthly basis and reviewed by management and trustees.
As a result, after making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they have adopted the going concern basis in preparing the financial statements.
Page 3
South Durham Gymnastics
Trustees' report (continued) For the year ended 30 June 2022
Structure, governance and management
Structure
The charity was incorporated as a Charitable Incorporated Organisation (registered charity number 1157394) on 9 June 2014.
Trustees
The management of the charity is the responsibility of the trustees who are elected and co-opted under the terms of the Trust deed. Induction is provided to new trustees if required.
Management
There are existing concerns for the Charity linked to the ongoing reports of abuse within gymnastics. Following complaints submitted against the Charity, two coaches have been suspended as investigations take place by British Gymnastics. Both the Charity and the coaches involved have been fully compliant throughout the investigation(s), which have been ongoing since April 2020. Trustees, coaches, gymnasts and parents have all participated in interviews / provided evidence to support the ongoing Whyte Review.
Furthermore, the Charity has conducted a full review of its Policies and Procedures and has continued to deliver training to its employees, as it does every year. In November 2020, the Charity was visited by the British Gymnastics Regional Welfare Officer (RWO). The RWO compiled a glowing 10-page report for the Charity, and released the following statement:
‘ The club has robust arrangements for safeguarding and a child-centred culture is evident. The welfare officer has an active and visible role in the club. The club is effectively engaged with the RWO. No significant areas of concern have been identified .’
The trustees have every confidence that suspensions will be lifted in the coming months and the coaches in question will be allowed to return to work.
Risk management
The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate their exposure to the major risks.
Given the situation described above, a full review of safeguarding risk has been carried out both during and since the period end and the trustees are satisfied that the charity are fully compliant with all regulations and provide a safe environment in which all gymnasts can thrive.
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South Durham Gymnastics
Trustees' report (continued) For the year ended 30 June 2022
Plans for future periods
Aims for the 2022/23 financial year include:
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Continuing to be a GDPR compliant club, ensuring relevant system and operating standard updates
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• Continuing to offer excellent customer service and coaching to everyone that enters the charity facility
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Streamlining the bespoke CRM system and website to increase capacity, functionality and efficiency
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Developing / running fundraising events and competitions to raise funds for the charity
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Reintroduction of the Pink Ladies Invitational for the first time since 2019
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1 x Level 3 coach to complete their course and assessment (delayed due to COVID)
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5 x Level 2 coaches to begin their Level 3 qualification
-
Increasing the number of Level 1 & 2 coaches in the club
-
Supporting staff members to complete / revalidate Club & Regional Judging courses
-
1 x coach to complete their National Judging course
Approved by order of the members of the board of trustees on 24 April 2023 and signed on their behalf by:
P Anderson (Trustee)
Page 5
South Durham Gymnastics
Statement of Trustees' responsibilities For the year ended 30 June 2022
The trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees on 24 April 2023 and signed on its behalf by:
Paul Anderson (Trustee)
Page 6
Independent examiner's report For the year ended 30 June 2022
Independent examiner's report to the trustees of South Durham Gymnastics ('the Charity')
I report to the charity trustees on my examination of the accounts of the charity for the year ended 30 June 2022.
Responsibilities and basis of report
As the trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').
I report in respect of my examination of the charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the Charity has prepared the accounts in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
This report is made solely to the charity's trustees as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my work or for this report.
Signed: Dated: 24 April 2023 Anne Hallowell BSc DChA FCA
UNW LLP Chartered Accountants Newcastle upon Tyne
Page 7
South Durham Gymnastics
Statement of financial activities For the year ended 30 June 2022
| Note Income from: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investments Total income Expenditure on: Charitable activities Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ 19,355 489,417 17,849 10,204 536,825 648,665 648,665 (111,840) 117,795 (111,840) 5,955 |
Total funds 2022 £ 19,355 489,417 17,849 10,204 536,825 648,665 648,665 (111,840) 117,795 (111,840) 5,955 |
Total funds 2021 £ 174,405 218,215 1,990 5 394,615 410,617 410,617 (16,002) 133,797 (16,002) 117,795 |
|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 10 to 18 form part of these financial statements.
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South Durham Gymnastics
Balance sheet
As at 30 June 2022
| Note Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current liabilities / assets Total assets less current liabilities Creditors: amounts falling due after more than one year 11 Net assets excluding pension asset Total net assets Charity funds Unrestricted funds 12 Total funds |
1,234 49,613 50,847 (72,008) |
2022 £ 64,616 64,616 (21,161) 43,455 (37,500) 5,955 5,955 5,955 5,955 |
4,579 92,042 96,621 (10,892) |
2021 £ 80,399 80,399 85,729 166,128 (48,333) 117,795 117,795 117,795 117,795 |
|---|---|---|---|---|
The financial statements were approved and authorised for issue by the Trustees on 24 April 2023 and signed on their behalf by:
Paul Anderson
(Trustee)
The notes on pages 10 to 18 form part of these financial statements.
Page 9
Notes to the financial statements For the year ended 30 June 2022
South Durham Gymnastics
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
South Durham Gymnastics constitutes a public benefit entity under FRS 102.
The financial statements are prepared in pounds sterling which is the functional currency of the charity and are rounded to the nearest £1.
1.2 Going concern
Higher than planned expenditure has incurred as as result of challenging the rulings on the suspension of 2 coaches which are not expected to recur in future periods For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Cashflow forecasts are updated on a monthly basis and reviewed by management and trustees.
As a result, after making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they have adopted the going concern basis in preparing the financial statements.
1.3 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charity, can be reliably measured.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
Page 10
Notes to the financial statements For the year ended 30 June 2022
South Durham Gymnastics
1. Accounting policies (continued)
1.4 Expenditure
Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity, including those incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.
Charitable activities and Governance costs are costs incurred on the charity's educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.
All expenditure is inclusive of irrecoverable VAT.
1.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
1.6 Tangible fixed assets and depreciation
All assets costing more than £500 are capitalised.
The estimated useful lives are as follows:
| Gym equipment | - 10 years |
|---|---|
| Office equipment | - 10 years |
1.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.8 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.9 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
1.10 Pensions
The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.
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Notes to the financial statements For the year ended 30 June 2022
South Durham Gymnastics
1. Accounting policies (continued)
1.11 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Investment income, gains and losses are allocated to the appropriate fund.
2. Critical accounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
In preparing these financial statements the trustees do not consider there were any significant areas of judgment that were required in applying the charity's accounting policies as set out above.
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South Durham Gymnastics
Notes to the financial statements For the year ended 30 June 2022
| 3. Donations Unrestricted funds 2022 £ Grants Grants 19,355 CJRS - Donations - 19,355 4. Income from charitable activities Unrestricted funds 2022 £ Subscriptions and classes 489,417 5. Income from other trading activities Income from fundraising events Unrestricted funds 2022 £ Fundraising 17,849 6. Analysis of expenditure by activities Activities undertaken directly 2022 £ Direct costs 455,724 |
Total funds 2022 £ 19,355 - - 19,355 Total funds 2022 £ 489,417 Total funds 2022 £ 17,849 Support costs 2022 £ 192,940 |
Total funds 2021 £ 26,487 146,418 1,500 |
|---|---|---|
| 174,405 | ||
| Total funds 2021 £ 218,215 |
||
| Total funds 2021 £ 1,990 |
||
| Total funds 2022 £ 648,664 |
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South Durham Gymnastics
Notes to the financial statements For the year ended 30 June 2022
6. Analysis of expenditure by activities (continued)
| Activities | |||
|---|---|---|---|
| undertaken | Support | Total | |
| directly | costs | funds | |
| 2021 | 2021 | 2021 | |
| £ | £ | £ | |
| Direct costs | 343,376 | 67,241 | 410,617 |
Analysis of direct costs
| Staff costs Depreciation Classes and competitions |
Activities 2022 £ 367,747 15,783 72,194 455,724 |
Total funds 2022 £ 367,747 15,783 72,194 455,724 |
Total funds 2021 £ 322,510 15,783 5,083 |
|---|---|---|---|
| 343,376 |
Analysis of support costs
| Building, rent and rates Office and administration Legal and professional Independent examination fee |
Activities 2022 £ 67,663 19,866 102,771 2,640 192,940 |
Total funds 2022 £ 67,663 19,866 102,771 2,640 192,940 |
Total funds 2021 £ 20,442 15,297 28,872 2,630 |
|---|---|---|---|
| 67,241 |
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South Durham Gymnastics
Notes to the financial statements For the year ended 30 June 2022
7. Staff costs
| Wages and salaries Social security costs Other pension costs |
2022 £ 325,401 18,827 23,519 367,747 |
2021 £ 288,444 16,019 18,047 322,510 |
|---|---|---|
The average number of persons employed by the Charity during the year was as follows:
| 2022 | 2021 | |
|---|---|---|
| No. | No. | |
| Employees | 28 | 34 |
No employee received remuneration amounting to more than £60,000 in either year.
No trustees received any remuneration, benefits or reimbursement of expenses for their services to the charity during the period.
8. Tangible fixed assets
| Cost At 1 July 2021 At 30 June 2022 Depreciation At 1 July 2021 Charge for the year At 30 June 2022 Net book value At 30 June 2022 At 30 June 2021 |
Gym equipment £ 139,239 139,239 68,121 13,924 82,045 57,194 71,118 |
Office equipment £ 18,586 18,586 9,305 1,859 11,164 7,422 9,281 |
Total £ 157,825 |
|---|---|---|---|
| 157,825 | |||
| 77,426 15,783 |
|||
| 93,209 | |||
| 64,616 | |||
| 80,399 |
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South Durham Gymnastics
Notes to the financial statements For the year ended 30 June 2022
9. Debtors
| Due within one year Grants receivable |
2022 £ 1,234 1,234 |
2021 £ 4,579 |
|---|---|---|
| 4,579 |
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South Durham Gymnastics
Notes to the financial statements For the year ended 30 June 2022
10. Creditors: Amounts falling due within one year
| Bank overdrafts Coronavirus bounce-back loan Other taxation and social security Accruals and deferred income |
2022 £ - 10,000 5,350 56,658 72,008 |
2021 £ 418 1,667 6,227 2,580 |
|---|---|---|
| 10,892 |
11. Creditors: Amounts falling due after more than one year
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Coronavirus bounce-back loan | 37,500 | 48,333 |
The Coronavirus bounce-back loan is 80% guaranteed by the UK Government. The loan is over a 6 year term with a payment holiday for the first 12 months. The loan is unsecured and accrues interest at 2.5% per annum. See note 10 for the amount due in less than 1 year.
12. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds Statement of funds - prior year Unrestricted funds General Funds |
Balance at 1 July 2021 £ 117,795 Balance at 1 July 2020 £ 133,797 |
Income £ 536,825 Income £ 394,614 |
Expenditure £ (648,665) Expenditure £ (410,616) |
Balance at 30 June 2022 £ 5,955 |
|---|---|---|---|---|
| Balance at 30 June 2021 £ 117,795 |
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South Durham Gymnastics
Notes to the financial statements For the year ended 30 June 2022
13. Pension commitments
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £23,519 (2021 - £18,047). Contributions totaling £nil (2021: £nil) were payable to the fund at the balance sheet date.
14. Operating lease commitments
At 30 June 2022 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
2022 £ 15,000 60,000 101,959 176,959 |
2021 £ 15,691 60,936 116,268 |
|---|---|---|
| 192,895 |
15. Related party transactions
Paul Anderson is a trustee and a director of Anderson & Co. During the year accountancy fees of £3,072 were paid to him by the charity (2021: £3,337).
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