Charity Number 1197896 Pike Hills Golf Club (A Charitable Incorporated Organisation) Trustees. Report and Financial Statements for the year ended 31 December 2023
Contents
| Charity Information ..................................................................................................... 1 |
|---|
| Statement from Chair of Trustees .................................................................................. 2 |
| Report of the Trustees.................................................................................................. 3 |
| Independent Examiner s Report ..................................................................................... 9 |
| Statement of Financial Activities ................................................................................... 10 |
| Balance Sheet ............................................................................................................ 11 |
| Cash Flow Statement .................................................................................................. 12 |
| Notes to the Financial Statements ................................................................................ 13 |
Pike Hills Golf Club
Charity Information
Charity number 1197896
Registered Office Tadcaster Road Askham Bryan York YO23 3UW
Treasurer
Granville Miller
Trustees
Elizabeth Griffiths (Chair) Granville Miller David Chapman (resigned 20 February 2024) Nick Hutchings (appointed 21 February 2023) Cliff Gladwin (appointed 21 February 2023) Nigel King (appointed 20 February 2024)
Solicitors
Rollits LLP Forsyth House Alpha Court Monks Cross York YO32 9WN
Independent Examiner
Alan Sidebottom FCA Azets Audit Services Limited Triune Court Monks Cross Drive York YO32 9GZ
Bankers HSBC Newcastle upon Tyne City Branch 110 Grey Street Newcastle on Tyne NE1 6JG
1
Pike Hills Golf Club
Statement from Chair of Trustees
Once again, we come to the year end and I am pleased to be able to present the 2023 accounts.
This is the first full year accounts of the new charity. We have set up our new structure and continued to develop the management of the CIO and the club. Our new club house is finished and open and we now hope to move forward with new and exciting projects to enhance both the course and the Pike Hills Experience we have enjoyed over the years.
We now have a trustee board of five people which helps to segregate different skills and use them for the best advantage of our decision-making processes.
Whilst full day-to-day management of the golf club has been delegated to the Management Board, we need to ensure they do not exceed their brief. Our involvement is around governance and we have a watching brief, especially for contract work and out-of-budget spend, including non-statutory pay increases for staff.
We look forward to continuing in our growth and developing of the business of the charity over the coming years.
Liza Griffiths (Chair)
Date:
2
Pike Hills Golf Club
Report of Trustees for the year ended 31 December 2023
The Trustees are pleased to present their annual report together with the financial statements of the year ended 31 December 2023. The financial statements comply with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102) (effective 1 January 2019).
Reference and administrative details
The Charity Information on page 1 forms part of this report.
Structure, governance and management
The CIO is a registered charity, number 1197896 with the registration dated 14 February 2022. Its charitable objective is the promotion of community participation in healthy recreation by the provision of facilities for playing at Pike Hills Golf Club. On 1 April 2022 site specific assets were transferred to Pike Hills Golf Club from York RI CIO.
Pike Hills Golf Club has adopted the 'Association' model of the CIO constitution. Trustees are elected by the members of the charity at the Annual General Meeting each year, to serve for a period of up to three years. Membership of the charity is open to anyone (individual or organisation) who is interested in furthering its purposes, and who, by applying for membership, has indicated his, her or its agreement to become a member and acceptance of the duty of members set out in the constitution.
There are five Trustee positions on the Board, all of which are currently filled. To ensure continuity, one-third of the elected Trustees retire at each AGM by rotation. Retiring Trustees are eligible to put themselves forward for re-election and may serve for a maximum of three terms of three years before taking a break of at least three years. Vacancies on the Board during the year may be filled by cooption, co-optees serving until the next AGM.
The Trustee Board carries out an annual skills audit and seeks to actively recruit new candidates for Trusteeship who can contribute to filling identified gaps in the Board's knowledge, skills and experience. New Trustees receive a Trustee Handbook providing key information about the charity, Trustees and staff. The first Board meeting following the AGM will include an induction session for new Trustees.
The Board is aware of the need to ensure ongoing development of its members. The Trustee Board has met monthly, and it was hoped to change this frequency during 2023. This has not been possible due to the number of scope of events requiring trustee involvement and the establishment of clear reporting lines and frequencies. However, this will remain an aspiration during 2024. Each meeting will receive reports from the Management Board to whom specific responsibilities are delegated under a scheme of delegation. The Trustee Board has agreed delegated authorities for authorisation of expenditure and other commitments.
Finance Committee
The role of the Finance Committee is to:
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Ensure Pike Hills Golf Club has a consistent and effective approach to managing its resources. Evaluate the financial performance of the organisation and ensure financial resources are used appropriately and in accordance with the objectives of Pike Hills Golf Club.
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Ensure that appropriate advice and recommendations are made to the Board to ensure the ongoing viability of the organisation.
The Finance Committee is chaired by the Treasurer and its membership includes the Chair of the Management Board, the Vice Chair of the Management Board, one other committee member and the General Manager. The Management Board usually meets monthly. The Finance Committee also undertakes staffing issues, membership issues and infrastructure issues as appropriate, referring them to relevant external professionals as necessary.
3
Pike Hills Golf Club
Report of Trustees for the year ended 31 December 2023 (cont.)
Key management personnel
line with inflation, whilst being benchmarked with charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles. Increases are normally on 1 April of each year to coincide with changes to the national minimum wage.
Professional advice on staffing matters is obtained from ALT Legal Ltd on a point
The charity employed fourteen staff at the year end. The key management personnel of the charity are set out in note 6. Day-to-day management of staff is delegated to Alistair Burns as General Manager.
Trading subsidiary
Pike Hills Golf Club Trading Ltd was incorporated on 24 June 2016 and commenced trading on 1 July 2016. It became a wholly owned subsidiary of the Pike Hills Golf Club charity on 1 April 2022. On 27 July 2022 its name was changed to Pike Hills Golf Club Trading Limited.
Registered company number: 10250574
Registered office: Pike Hills Golf Club, Tadcaster Road, York, YO23 3UW
Directors: Anthony Todd (chair), Elizabeth Griffiths, Maxine Bailey,
The subsidiary is responsible for the operation of a variety of trading activities based at Pike Hills Golf Club, including the bar facilities and golf shop at Pike Hills. Pike Hills Golf Club Trading Ltd will donate any profits not required for maintaining its operations to Pike Hills Golf Club.
Risk management
The Board has paid attention to a range of risks faced by the charity and are implementing measures to reduce or mitigate these risks. The main risks identified by the Board during 2023 were:
Internal
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Problems of transition to new governance model.
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Ensuring a trustee group that were fit for purpose.
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Ensuring cash flow was continued through the year.
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Club house development difficulties
External
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Course development does not go ahead pushing forward other course development needs at our own cost.
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Building extension runs over time and budget.
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Continued high inflation especially in relation to utilities.
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Loss of membership due to home budget pressures.
The main risks in 2024 are seen to be:
Internal
- Continued difficulty in finding relevant trustees to fill volunteer roles. Pressure on staffing in relation to wages and terms and conditions. Old equipment wearing out beyond repair such as the sprinkler system.
4
Pike Hills Golf Club
Report of Trustees for the year ended 31 December 2023 (cont.)
External
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Mitigating the effects of higher-than-normal inflation.
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Loss of membership due to course closures for bad weather.
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Other weather impacts on income.
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Course Development Project impact on membership and cash flow
Main activities undertaken to achieve the charitable objects.
Pike Hills Golf Club fulfils its charitable objectives by providing a wide range of facilities to enable the general public to play amateur sports, participate in healthy recreation and to participate in the arts, musical and theatre productions and wider community-based activity. Pike Hills Golf Club develops and operates sporting, recreational, social and cultural activities for the benefit of the public.
The amateur sports for which the Pike Hills Golf Club provides facilities all promote health and fitness, particularly as regards stamina, strength, suppleness, as well as a high level of accurate technique (hand/eye co-ordination and skill).
Membership is open to all sections of the community and anyone who wishes to become a member of Pike Hills Golf Club may do so. Membership is affordable to maximise community participation and to ensure that no-one is excluded from participation because of inability to pay. The charity offers discounted membership rates for juniors, students and retired members, and free coaching for certain categories. Decisions on new activities or improvements to facilities are authorised by the Trustees following an appraisal of costs and public benefit. The Trustees have had regard to Charity Commission guidance on public benefit in their decision-making.
Strategy for the year
The main focus of strategy for this year has been the new extension. The provision of this facility is to enable the charity to comply with disability legislation and provide access for all. Accessibility has been of concern for many years, and the new extension addresses that shortcoming with the provision of a lift and adapted toilets facilities.
Priority 1: to maintain existing sports, cultural and recreational provision for the benefit of York residents.
Priority 2: to review the financial viability of the charity and put in place initiatives to maintain this. Priority 3: to review operational and staffing arrangements to ensure the charity is run efficiently and effectively.
Priority 4: t o work on a longer-term strategic plan for the charity, to enable it to maintain and develop excellent sporting and community facilities that will meet the needs of York residents in the long term.
Achievements and performance
Priority 1: To maintain existing sports, cultural and recreational provision for the benefit of York residents.
The site comprises a golf course, club house and driving range. Pike Hills Golf Club membership is open to all and is very competitively priced. There is a range of membership options available, as well as pay and play. The joining process is based on chronological order of application. Full Adult 7 Day Membership (Jan to Dec)
Adult 5 Day Membership (Monday to Friday)
Twilight (Mon to Fri after 3pm & Sunday after 1pm.Winter after 1pm) Twilight Plus (Mon to Sat after 3pm & Sunday after 1pm.Winter after 1pm)
Special rates for the following categories
Young Adult (18 - 20 years; 21 - 24 years ; Young Adult 25 - 29 years )
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Full time students under 25 and Juniors 12 17 years
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Rookies under 12 years
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Pavilion membership for those requiring mainly social but also non golf participation in activities.
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A points-based membership for people who are seasonal players or financially struggling.
5
Pike Hills Golf Club
Report of Trustees for the year ended 31 December 2023 (cont.)
The club has a junior section with coaching and competition costs met by the club, together with partnerships with local schools to encourage the development of junior golf.
Currently over 20 members under 18 are actual members of the club, with a waiting list for coaching we have grown the section. In 2024 under the guidance of a teaching professional we hope to continue to strengthen this aspect of the club.
The club provides buggy hire to encourage less physically able players to visit and play the course at reduced rates.
initiatives to encourage more female players, and to widen participation generally. We continue to ers the opportunity to ascertain if they would enjoy the game prior to joining.
Competitions are organised for all age profiles. All members are issued a club diary with competition dates and other events clearly marked up to a year in advance.
Our available tee times between 1 April and 31 December were over 23,000 of which approximately 36% were not used, mainly later in the day. Of booked times, 81% were used by members alone. 17% were used by visitors and societies and 2% for charity events.
Priority 2: To review the financial viability of some services/facilities and put in place initiatives to improve this.
During the year the Charity has focussed on enabling full access to the club during building work. Across Pike Hills Golf Club, income has been maximised when possible and expenditure only on the necessary. We have maintained a competitive membership fee and green fees for use of the course.
Priority 3: To review operational and staffing arrangements to ensure the charity is run efficiently and effectively
The Trustees have put in place arrangements for devolved management of the club through a volunteer Main Board. This ensures that day to day decisions can be taken at a specialised level and with input from the volunteers involved in running the various Section activities, whilst the Trustees retain overall control and responsibility.
Volunteers are an essential part of Pike Hills Golf Club's activities, fulfilling a wide range of roles including administration, committee members, coaching, organising competitions and events, and assisting with fund-raising and other activities. The planned to restructure the Main Committee to be a Management Board with fewer members has been enacted, and we now are consolidating the transition. We still struggle to attract volunteers in all areas.
Priority 4: To work on a longer-term strategic plan for the charity, to enable it to maintain and develop excellent sporting and community facilities that will meet the needs of York residents in the long term.
As a first stage in longer term planning, the Trustees agreed the following working framework:
Values:
The Trustees have put in place arrangements for devolved management of the club through a volunteer Main Board. This ensures that day to day decisions can be taken at a specialised level and with input from the volunteers involved in running the various Section activities, whilst the Trustees retain overall control and responsibility.
Volunteers are an essential part of Pike Hills Golf Club's activities, fulfilling a wide range of roles including administration, committee members, coaching, organising competitions and events, and assisting with fund-raising and other activities. The planned to restructure the Main Committee to be a Management Board with fewer members has been enacted, and we now are consolidating the transition. We still struggle to attract volunteers in all areas.
6
Pike Hills Golf Club
Report of Trustees for the year ended 31 December 2023 (cont.)
Our foundations are rooted in the spirit of sharing and mutuality of the historic Railway Institute, and we remain committed to working together to provide high quality, affordable and enjoyable experiences for all, regardless of ability or income.
We are a volunteer-led organisation which values the commitment and diverse contributions of all our users and members. Together, we encourage and enable everyone to achieve their aspirations, in a safe, sociable and welcoming environment.
Vision:
To maximise the opportunities for people to enrich the lives of the whole community by their open and committed participation, now and in the future.
Mission:
To become recognised as a leading provider of exceptional value environments where everyone can contribute and participate in a variety of activities. As stated earlier in this report Pike Hills Golf Club has restructured with effect from 1 April 2022.
Plans for the future.
Our plans for the future still include the development of the spare land to the north of the main course and improve the playability of the course to extend the season. Whilst we have now extended the clubhouse, creating facilities for those less able and to comply with the Disability Act 2010, we have also refurbished an area of the building to a more modern standard. However, more work is required over the next few years. In addition, we intend to continue the process of capital replacement for greens equipment.
Financial review
Overview
The Statement of Financial Activities shows total income for the year of £576,109 and total expenditure of £490,758 leading to a surplus for the year of £85,351.
The subsidiary trading company, Pike Hills Golf Club Trading Ltd, is responsible for all non-charitable activities such as bars and catering.
Fundraising policy
Most of the charity's income is derived from charges for services, together with a contribution from Pike Hills Golf Club Trading Ltd from any profits generated from non-charitable trading. No complaints have been received in the period relating to fundraising.
Reserves policy
The charity needs to maintain free reserves in order to manage variations in cash flow over the year, and to meet unexpected repair and maintenance needs as they arise. The Trustees have agreed that at this stage, an appropriate level of reserves would be the equivalent of three months running costs for the charity (£125k). At 31 December 2023 the free reserves (excluding long term liabilities) were in deficit of £62,994 (2022: £277,290).
The Trustees will be looking at ways to build reserves following the cash outlay involved in the completion of the new club house.
7
Pike Hills Golf Club
Report of Trustees for the year ended 31 December 2023 (cont.)
Trustees responsibilities for the financial statements
The Charity Trustees, are responsible for financial statements in accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the CIO and of the income and expenditure, of the charity for that period.
In preparing the 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 in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees report, was approved by the Board of Trustees and signed on its behalf by:
Liza Griffiths Chair of Trustees
Date:
8
Pike Hills Golf Club
Independent examiner s report to the Trustees of Pike Hills Golf Club
I report to the trustees on my examination of the financial statements of Pike Hills Golf Club for the year ended 31 December 2023.
This report is made solely to the Charity's Trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My independent examination 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 independent examination work, for this report, or for the opinions I have formed.
Responsibilities and basis of report
As the Charity trustees you are responsible for the preparation of the accounts in accordance with the
I report in respect of my examination of the Charity Act and in carrying out my examination I have followed all the applicable Directions given by the Charity commission under section 145(5)(b) of the Act.
Since the Charity 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, which is one of the listed bodies.
I have completed my examination. I confirm that no material 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 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.
Alan Sidebottom FCA
Date
Azets Audit Services Limited
Chartered Accountants
Triune Court Monks Cross Drive York YO32 9GZ
9
Pike Hills Golf Club
Statement of Financial Activities for the period ended 31 December 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Note | £ | £ | |
| Income from: | |||
| Donations and legacies: | |||
| Donations | 2 | 1,322 | 50 |
| Gift from York RI | 3 | - | 954,388 |
| Income from charitable activities: | |||
| Room and equipment hire | 1,121 | 1,120 | |
| Subscriptions and joining fees | 420,477 | 281,355 | |
| Green fees and other golfing income | 135,735 | 108,556 | |
| Other income from charitable activities | 5,374 | 2,577 | |
| Covenant from subsidiary | 2,455 | 8,741 | |
| Bank interest | 9,625 | 373 | |
| Total income | 576,109 | 1,357,160 | |
| Expenditure on: | |||
| Charitable activities | 490,758 | 350,542 | |
| Total expenditure | 4 | 490,758 | 350,542 |
| Net income for the period and net movement in funds |
5 | 85,351 | 1,006,618 |
| Funds brought forward | 1,006,618 | - | |
| Funds carried forward | 13 | 1,091,969 | 1,006,618 |
The statement of financial activities includes all gains and losses recognised in the period.
All income in the year was unrestricted.
All income and expenditure derive from continuing activities of the charity.
10
Pike Hills Golf Club
Balance sheet as at 31 December 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Note | £ | £ | |
| Fixed assets | |||
| Tangible assets | 7 | 1,110,541 | 706,152 |
| Investments | 8 | 100 | 100 |
| Investment property | 8 | 90,000 | 90,000 |
| 1,200,641 | 796,252 | ||
| Current assets | |||
| Debtors | 9 | 12,754 | 1,505 |
| Cash at bank and in hand | 318,169 | 593,709 | |
| 330,923 | 595,214 | ||
| Creditors: | |||
| Amountsfalling duewithinone year | 10 | (393,917) | (317,924) |
| Net current (liabilities)/assets | (62,994) | 277,290 | |
| Creditors: | |||
| Amounts falling due in more than one year |
11 |
(45,678) | (66,924) |
| Net assets | 1,091,969 | 1,006,618 | |
| Funds of the charity | 13, 14 | ||
| Restricted funds | - | - | |
| Unrestricted funds | 1,091,969 | 1,006,618 | |
| Total funds | 1,091,969 | 1,006,618 |
The notes on pages 13 to 22 form part of these financial statements.
These financial statements were approved by the Board of Trustees and were authorised for issue and signed on its behalf by:
Liza Griffiths
Chair of Trustees
Date:
11
Pike Hills Golf Club
Cash flow statement for the period ended 31 December 2023
| Cash flow statement for the period ended 31 December 2023 |
||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Net cash provided by operating activities (reconciliation below) | 181,497 | 617,922 |
| Cash flows from investing activities | ||
| Purchase of tangible fixed assets | (435,791) | (112,383) |
| Net cash used in investing activities | (435,791) | (112,383) |
| Cash flows from financing activities | ||
| Hire purchase payments in the year | (21,246) | (21,450) |
| Hire purchase advances in the year | - | 109,620 |
| Net cash used in financing activities | (21,246) | 88,170 |
| Change in cash and cash equivalents in the period | (275,540) | 593,709 |
| Cash and cash equivalents at the start of the period | 593,709 | - |
| Cash and cash equivalents at the end of the period | 318,169 | 593,709 |
| Reconciliation of net income to net cash flow from operating activities: | ||
| 2023 | 2022 | |
| £ | £ | |
| Net movement in funds | 85,351 | 1,006,618 |
| Gift fixed asset acquisition |
- | (619,184) |
| Gift Investment property acquisition |
- | (90,000) |
| Depreciation charge | 31,402 | 24,942 |
| (Increase) in debtors | (11,249) | (1,505) |
| Increase in creditors | 75,993 | 297,051 |
| Net cash provided by from operating activities | 181,497 | 617,922 |
Changes in net debt are shown in note 17.
12
Pike Hills Golf Club
Notes to the Financial Statements for the year ended 31 December 2023
1. Accounting policies
The prior year Financial Statements were prepared for the period from incorporation of the CIO on 14 February 2022 to 31 December 2022.
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
Charity information
Pike Hills Golf Club is a charitable incorporated organisation registered in England and Wales. The registered office is Tadcaster Road, York, YO23 3UW.
Accounting convention
The financial statements have been prepared on a going concern basis 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) (effective 1 January 2019) ( Charities SORP (FRS 102) ), the Financial Reporting Standard applicable in the UK and Ireland (FRS 102) and the Charities Act 2011.
Pike Hills Golf Club meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The financial statements are prepared in sterling, which is the financial currency of the charity. Monetary amounts in these Financial Statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention, modified to include the investment property at fair value. The principal accounting policies adopted are set out below.
Going concern
The Trustees have at the time of approving the financial statements a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The CIO has cash reserves sufficient to meet its immediate and ongoing requirements. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Fund accounting
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.
Restricted funds can only be used for restricted purposes within the objectives of the charity. These arise when funds are subject to specific restrictive conditions imposed by funders/donors or by the purpose of the grant. At the balance sheet date, there were no restricted funds.
Income
Income is recognised in the period in which entitlement arises, receipt is probable and the amount can be reliably measured.
Income is deferred:
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where the charity must fulfil conditions before becoming entitled to it,
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where the income is received specifically for expenditure in a future accounting period, or where donations, sponsorship and entry fees are received in anticipation of an event to be held in a future accounting period.
The gift from York RI was valued based on fair value at date of receipt.
Subscriptions
Income is recognised in the period to which the subscription relates. Income received prior to the period-end which relates to future periods, is deferred.
13
Pike Hills Golf Club
Notes to the Financial Statements for the year ended 31 December 2023 (cont.)
1. Accounting policies (continued)
Income (continued)
Gifts in kind
Assets and liabilities donated to the charity are included as donation income at market value or fair value at the date of receipt. No amounts are included in the financial statements for services donated by volunteers.
Room and equipment hire
Income is recognised in the period to which the hiring occurs.
Expenditure and irrecoverable VAT
Expenditure is included in the SoFA on an accruals basis inclusive of any VAT that cannot be recovered.
Expenditure is allocated directly to a particular activity where costs relate directly to that activity.
Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of the resources.
Operating leases
Rentals applicable to operating leases are charged to the SoFA on a straight-line basis over the term of the lease.
Pensions
The charity operates a defined contribution scheme for its employees. Contributions are charged as an expense to the SoFA in the period in which they fall due.
Staff costs
The costs of short-term employee benefits are recognised as a liability and an expense where settlement of obligations does not fall within the same period.
Investments
Investments in subsidiaries are stated at cost and the Trustees review the carrying value annually for indications of impairment.
Investment property
Investment properties which are properties held to earn rentals and/or for capital appreciation, are measured using the fair value model and are stated at their fair value at the reporting date. The surplus or deficit on revaluation is recognised in the SoFA.
Fixed assets and depreciation
Fixed assets are stated at cost. Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives as follows:
Plant and machinery 10 - 20% straight line Fixtures and fittings 10 - 20% straight line Computer equipment 33% straight line
Leasehold land and property has an outstanding lease term of over 50 years. not to provide depreciation on long leasehold property as, in the opinion of the Trustees, its estimated residual value at the end of its economic life is expected to be at least carrying value so that any deprecation charge would be immaterial. The Trustees will arrange periodic impairment reviews.
14
Pike Hills Golf Club
Notes to the Financial Statements for the year ended 31 December 2023 (cont.)
1. Accounting policies (continued)
Stocks
Purchased goods for resale are valued at the lower of cost and net realisable value.
Tax
Pike Hills Golf Club CIO is a registered charity and as such is a charity within the meaning of schedule 6 of the Finance Act 2010. Accordingly, the Charity is potentially entitled to tax exemption under part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 in respect of income and gains arising.
Financial instruments
The Charity
Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity held for working capital.
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the income and expenditure account.
Creditors, loans and provisions
Creditors, loans and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors, loans and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Financial liabilities are derecognised when, and only when, the obligations are discharged, cancelled or they expire.
Amounts recognised as provisions are best estimates of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Critical accounting estimates and judgements
In the application of the accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
15
Pike Hills Golf Club
Notes to the Financial Statements for the year ended 31 December 2023 (cont.)
1. Accounting policies (cont.)
Critical accounting estimates and judgements (cont.)
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Depreciation of tangible assets
Depreciation policies have been set according to management's experience of the useful lives of the assets in each category, something which is reviewed annually.
No depreciation has been charged on long leasehold buildings on the basis that the residual values are estimated to be such that any depreciation charge would be immaterial.
Investment property
The fair value of investment property is based on a reasonable estimate of its fair value.
2. Donations
| . Donations | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Donations | 1,322 | 50 |
3. Gift
On 31 March 2022 certain assets were transferred to the CIO from York RI. In the period leading up to 31 March 2022 the trustees of York RI resolved that due to the diversity of activities at multiple sites it was not effective from a governance perspective to operate York RI as had been. Under a transfer agreement dated 31 March 2022 the assets were gifted to independent charities, with the book value of assets transferred to Pike Hills Golf Club totalling £1,037,031.
These assets were assessed by the trustees of this charity as having a value of £963,129 (including £8,741 of gift aid to the parent charity from the trading subsidiary) and this was recognised as income in the period to 31 December 2022.
16
Pike Hills Golf Club
Notes to the Financial Statements for the year ended 31 December 2023 (cont.)
4. Expenditure
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Staff costs | 231,857 | 171,571 |
| Repairs and renewals | 69,791 | 35,334 |
| Ground costs | 29,224 | 31,204 |
| Office costs | 12,047 | 11,608 |
| Player support | 3,440 | 2,946 |
| Marketing and advertising | 4,208 | 4,879 |
| Subscriptions and licences | 31,791 | 17,014 |
| Cleaning and refuse | 19,752 | 12,700 |
| Rent, rates and utilities | 59,860 | 33,112 |
| Insurance | 13,707 | 678 |
| Depreciation | 31,402 | 24,942 |
| Training fees | 636 | 795 |
| Reclaim of VAT | (29,152) | (7,118) |
| Sundry | 2,293 | 920 |
| Open day prizes | 2,100 | - |
| Support costs: | ||
| Audit, independent examination and accountancy | 6,667 | 9,350 |
| Bank charges | 1,135 | 607 |
| 490,758 | 350,542 |
5. Net income
| Net income is stated after | Net income is stated after | charging: | charging: | 2023 | 2022 |
|---|---|---|---|---|---|
| £ | £ | ||||
| : | |||||
| - Examination |
1,850 | - | |||
| - Accounts preparation |
1,600 | - | |||
| Audit | - | 6,600 | |||
| Accounts preparation | - | 2,750 | |||
| Depreciation | 31,402 | 24,942 |
17
Pike Hills Golf Club
Notes to the Financial Statements for the year ended 31 December 2023 (cont.)
6. Staff numbers and costs
The average number of staff employed by the charity during the period was 16 (2022 16).
The aggregate payroll cost of these persons was as follows:
| The aggregate payroll cost of these persons was | as follows: | |
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Wages and salaries | 213,236 | 157,812 |
| Social security costs | 11,588 | 8,237 |
| Pension costs | 7,033 | 5,522 |
| 231,857 | 171,571 |
The Trustees do not receive remuneration or any other benefits. During the period, no expenses were paid to Trustees. Trustees are not included in the average number of employees.
No employees (2022: no employees) were paid over £60,000 in the period.
The key management personnel of the charity comprise the Trustees, general manager, facilities manager and head greenkeeper (2022 - Trustees, general manager and head greenkeeper). The total remuneration of key management personnel employed by the charity was £103,925 (2022: £66,228).
7. Tangible fixed assets
| Long leasehold | Fixtures, | Office and | |||
|---|---|---|---|---|---|
| land and | Plant and |
fittings and | computer | ||
| property | machinery | equipment | equipment | Total | |
| £ | £ | £ | £ | £ | |
| Cost or valuation | |||||
| At 1 January 2023 | 585,000 | 132,344 | 12,357 | 1,056 | 730,757 |
| Additions | 367,691 | 27,673 | 38,399 | 2,028 | 435,791 |
| At 31 December 2023 | 952,691 | 160,017 | 50,756 | 3,084 | 1,166,548 |
| Depreciation | |||||
| At 1 January 2023 | - | 20,154 | 3,395 | 1,056 | 24,605 |
| Charge for period | - | 26,103 | 5,186 | 113 | 31,402 |
| At 31 December 2023 | - | 46,257 | 8,581 | 1,169 | 56,007 |
| Net book values | |||||
| At 31 December 2023 | 952,691 | 113,760 | 42,175 | 1,915 | 1,110,541 |
| At 31 December 2022 | 585,000 | 112,190 | 8,962 | - | 706,152 |
Long leasehold land and buildings with a book value of £nil (2022: £585,000) were gifted as disclosed in note 3.
York RI granted a 99 year lease at a peppercorn rent on the property such that they cannot be disposed or developed without consent.
The net carrying value of tangible fixed assets held under hire purchase agreements is £76,003 (2022 - £95,004) and is held within plant and machinery.
18
Pike Hills Golf Club
Notes to the Financial Statements for the year ended 31 December 2023 (cont.)
8. Investments
| 8. Investments |
||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Shares held in subsidiary undertaking | 100 | 100 |
The charity owns 100% of the issued share capital of Pike Hills Golf Club Trading Limited, incorporated in England and Wales (Company Registration No. 10250574).
A summary of its trading results for the year ended 31 December 2023 is shown below:
| Profit and loss account | 2023 | 2022 |
|---|---|---|
| £ | £ | |
| Turnover: | ||
| Bar takings | 122,036 | 103,489 |
| Other takings | 141,616 | 121,829 |
| Total turnover | 263,652 | 225,318 |
| Cost of sales | (235,065) | (206,821) |
| Gross profit | 28,587 | 18,497 |
| Administrative expenses | (24,857) | (16,042) |
| Profit for the period | 3,730 | 2,455 |
| Retained earnings at 31 December 2022 | 2,455 | 8,741 |
| Distribution of earnings to parent | (2,455) | (8,741) |
| Retained earnings at 31 December 2023 | 3,730 | 2,455 |
| 2023 | 2022 | |
| £ | £ | |
| Fixed assets | 2,261 | 3,392 |
| Current assets | 98,725 | 33,517 |
| Current liabilities | (97,156) | (34,354) |
| Total net assets | 3,830 | 2,555 |
| Share capital | 100 | 100 |
| Profit and loss account | 3,730 | 2,455 |
| Total funds | 3,830 | 2,555 |
Investment property (long leasehold)
| 2023 | 2022 | ||||||
|---|---|---|---|---|---|---|---|
| £ | £ | ||||||
| Market value at | 1 | January and | 31 | December | 2023 | 90,000 | 90,000 |
| Historic cost | 90,000 | 90,000 |
The investment property relates to a plot of land held for redevelopment, currently let out for agricultural use. The Trustees estimate the fair value of the land with respect to recent market conditions and believe the valuation materially represents the fair value of the land at the balance sheet date. The investment property (long leasehold) formed part of the gift to the charity on 31 March 2022 and remains on a 99 year peppercorn lease from date of transfer.
19
Pike Hills Golf Club
Notes to the Financial Statements for the year ended 31 December 2023 (cont.)
9. Debtors
| 9. | Debtors | ||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Trade | debtors | 286 | 1,346 |
| Other | debtors | 12,468 | 159 |
| 12,754 | 1,505 | ||
| 10. | Creditors: Amounts falling due within one year | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Trade | creditors | 8,360 | 5,825 |
| Other | taxes and social security costs | 4,759 | 4,553 |
| Accruals and deferred income | 260,633 | 259,687 | |
| HP creditor | 21,246 | 21,246 | |
| Other | creditors | 14,449 | 5,222 |
| Amounts owed to subsidiary undertakings | 84,470 | 21,391 | |
| 393,917 | 317,924 |
Hire purchase liabilities are secured against the assets to which they relate.
Within accruals and deferred income is £239,529 (2022: £242,271) deferred income relating mainly to subscriptions paid in advance, see note 12.
11. Creditors: Amounts falling due in more than one year
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| HP creditor | 45,678 | 66,924 |
| Hire purchase liabilities are secured against the assets to which they relate. | ||
| 12. Deferred Income |
||
| 2023 | 2022 | |
| £ | £ | |
| Balance at 1 January 2023 | 242,271 | - |
| Balance released in the period | (242,271) | - |
| Amount deferred in the period | 239,529 | 242,271 |
| Balance at 31 December 2023 | 239,529 | 242,271 |
Deferred income relates in the main to golf club subscriptions paid in advance.
20
Pike Hills Golf Club
Notes to the Financial Statements for the year ended 31 December 2023 (cont.)
13. Statement of funds
| As at 1 | As at 31 | |||
|---|---|---|---|---|
| Period ended 31 December 2023 | January | December | ||
| 2023 | Income | Expenditure | 2023 | |
| £ | £ | £ | £ | |
| Unrestricted funds: | ||||
| General funds | 1,006,618 | 576,109 | (490,758) | 1,091,969 |
| Total funds | 1,006,618 | 576,109 | (490,758) | 1,091,969 |
| As at 14 | As at 31 | |||
| Period ended 31 December 2022 | February | December | ||
| 2022 | Income | Expenditure | 2022 | |
| £ | £ | £ | £ | |
| Unrestricted funds: | ||||
| General funds | - | 1,357,160 | (350,542) | 1,006,618 |
| Total funds | - | 1,357,160 | (350,542) | 1,006,618 |
Unrestricted funds
General funds represent the free reserves and fixed assets of the charity that are not designated or restricted for any particular purposes.
14. Analysis of Net Assets by Fund
As at 31 December 2023
| As at 31 December 2023 | |||
|---|---|---|---|
| Net current | Creditors | ||
| Fixed assets | (liabilities) | over 1 year | Total |
| £ | £ | £ | £ |
| Unrestricted funds | |||
| General 1,200,641 |
(62,994) | (45,678) | 1,091,969 |
| Total 1,200,641 |
(62,994) | (45,678) | 1,091,969 |
| As at 31 December 2022 | |||
| Net current | Creditors | ||
| Fixed assets | assets | over 1 year | Total |
| £ | £ | £ | £ |
| Unrestricted funds | |||
| General 796,252 |
277,290 | (66,924) | 1,006,618 |
| Total 796,252 |
277,290 | (66,924) | 1,006,618 |
21
Pike Hills Golf Club
Notes to the Financial Statements for the period ended 31 December 2023 (continued)
15. Commitments
The charity had no capital commitments at 31 December 2023 (2022: no commitments).
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Within one year | 689 | 776 |
| Between two and five years | 861 | 1,550 |
| Total | 1,550 | 2,326 |
16. Related parties
In the prior period, York RI made a gift of cash and assets to Pike Hills Golf Club of £1,037,031 in March 2022 which was revalued into the books of the charity as £963,129 (including £8,741 of gift aid to the parent charity from the trading subsidiary). At date of gift, Granville Miller was a trustee of both the charity and York RI.
At the period end there was a balance owing from the charity to Pike Hills Golf Club Trading Limited of £84,470 (2022: £21,391).
17. Analysis of changes in net debt
| At 1 | At 31 | |||
|---|---|---|---|---|
| January | New finance | December | ||
| 2023 | Cash flows | leases | 2023 | |
| £ | £ | £ | £ | |
| Cash at bank and in hand | 593,709 | (275,540) | - | 318,169 |
| Hire purchase contracts | (88,170) | 21,246 | - | (66,924) |
| 505,539 | (254,294) | - | 251,245 | |
| At 14 | At 31 | |||
| February | New finance | December | ||
| 2022 | Cash flows | leases | 2022 | |
| £ | £ | £ | £ | |
| Cash at bank and in hand | - | 593,709 | - | 593,709 |
| Hire purchase contracts | - | 21,450 | (109,620) | (88,170) |
| - | 615,159 | (109,620) | 505,539 |
22