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2020-12-31-accounts

Company No. 2238901

Charity No. 299332

DEVELOPMENT THROUGH CHALLENGE

(A company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Development Through Challenge

For the year ended 31 December 2020

Contents

Page
Legal and Administrative Details 1
Report of the Trustees 2 – 4
Independent Auditors’ Report 5 - 7
Statement of Financial Activities 8
Balance Sheet 9
Statement of Cash flows 10
Notes to the Financial Statements 11 – 19

Development Through Challenge Legal and administrative details For the year ended 31 December 2020

Status The organisation is a charitable Company limited by guarantee, is a charitable Company limited by guarantee,
incorporated on 23 March 1988 and registered as a charity on 24 May
1988.
Governing Document The Company was established under a memorandum of association, which
establishes the objects and powers of the charitable Company and is
governed under its articles of association.
Company number 2238901
Charity number 299332
Registered office and
operational address Mile End Climbing Wall
Haverfield Road
London
E3 5BE
Honorary officers Tim Nash (ex Chairman) Resigned 20/04/20
Rod Leefe (new Chair) Appointed 20/04/20
Martin Soulsby Hon Treasurer
Kevin Murphy (ex Secretary) Resigned 07/09/20
Adam Blewett (new Secretary) Appointed 22/03/21
Brenda Taggart
Calum Mclean Appointed 28/09/20
Salim Hafejee Resigned 22/03/21
Matt Teague Resigned 22/03/21
Hiren Joshi Resigned 22/03/21
Carolina Philippini Appointed 22/03/21
Khatejia Hafesji Appointed 22/03/21
Principal Staff Andy Reid Chief Executive Officer to January 2021
Dean Straw Chief Executive Officer from 24/03/21
Bankers National Westminster Bank
PO Box 3242
Albion Yard
331/335 Whitechapel Road
London
E1 1AU
Solicitors Bates Wells Braithwaite
10 Queen Street Place
London
EC4R 1BE
Auditors Goldwins Limited
Chartered Accountants
75 Maygrove Road
West Hampstead

1

London NW6 2EG

Development Through Challenge

Report of the Trustees

For the year ended 31 December 2020

The Trustees present their report and the audited financial statements for the year ended 31 December 2020.

Legal and administrative information is set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice – Accounting and Reporting by Charities: (FRS 102).

Objects of the Charity

The aims of Development through Challenge (DTC) are to help people to develop themselves through challenging physical activity, principally climbing and mountaineering.

Its principal facility is the Mile End Indoor Climbing Wall, a centre for bouldering and climbing. Recreational climbers attend to train both for an active lifestyle within the urban environment and for climbing expeditions throughout the world. Professional instruction is provided for our own climbing courses and for schools.

The Year’s Activities

A wide range of people and groups visit and benefit from the facilities, including recreational climbers both adult and children; youth groups and schools. Interest in indoor climbing is growing as participants recognise it as an exciting option of exercise in the urban environment.

MECW continues to support the development of the National Indoor Award Scheme (NICAS). Our CEO sits on their board of trustees and the scheme continues to expand.

Achievements and performance

During 2020 Covid-19 measures restricted the ability of many organisations from achieving as much as they had in previous years. We are no exception. Along with other indoor sporting venues we were obliged to close for much of the year. This meant that not only could we not trade but also that we could not benefit climbers, schools or the local community. We supported our staff, taking advantage of the furlough arrangements and other resources.

The reserves we have accumulated over the years allowed us to weather the months we spent closed and permit us to approach the future with confidence.

We’re very grateful to our staff for their loyalty and goodwill during difficult times for them and the organisation.

The Future

As the country tentatively reopens in 2021 we continue to improve our facility with a strong focus on safety and safeguarding as well as the integrity and quality of our climbing surfaces and experience. We have a new leadership team focused not only on the continual improvement of our operation but also on making a greater positive impact on our climbing and local communities.

3

Development Through Challenge

Report of the Trustees

For the year ended 31 December 2020

Governance and Staffing

A Board of Trustees who initiate, assess and review the work of DTC, its staff and resources undertake the government of the charity. The audited accounts and the annual report are reviewed and approved at a Trustee Meeting.

Reserves Policy

It is the policy of DTC to maintain, where possible, sufficient general reserves to allow DTC to maintain the climbing wall, premises and core staff and remain open while sustaining a significant temporary drop in customers and revenue. DTC also carries insurance for loss of income arising from any major disruption to the activity of the climbing wall.

Risk Statement

The Trustees of DTC, together with the auditors, conduct regular risk reviews of the activities. Apart from normal commercial risk, the principal areas requiring management are: Health and Safety, internal control and the segregation of duties, and the loss of customers to competing facilities.

A governance document is in place setting out the roles and responsibilities and financial authorities of the trustees and management. All staff have written job descriptions. Financial procedures and internal controls have been reviewed; and monthly management accounts on a full accrual basis is produced.

The Trustees consider that adequate systems exist to identify major risks and that adequate steps have been taken to mitigate those risks currently identified.

Statement of the responsibilities of the Trustees

The Trustees (who are also directors of the Charitable Company for the purposes of company law) 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).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding

4

Development Through Challenge

Report of the Trustees

For the year ended 31 December 2020

the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors

Goldwins Limited have expressed their willingness to continue in office and in accordance with Section 485(2) Companies Act 2006, a resolution for their reappointment will be laid before the Annual General Meeting.

Statement as to Disclosure of Information to Auditors

The Trustees in office at the date of approval of this report have confirmed that, as far as they are aware, there is no relevant audit information of which the auditors are unaware. Each of the Trustees has confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditors.

Approved by the Trustees on 28 June 2021

And signed on their behalf by:

……………………………….

Rod Leefe

5

Independent Auditor’s Report

To the members of

Development Through Challenge

Opinion

We have audited the financial statements of Development Through Challenge for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, statement of cash flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Opinion on financial statements

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorʼs responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRCʼs Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditorʼs report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

6

Independent Auditor’s Report

To the members of

Development Through Challenge

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the Trustees’ Responsibilities Statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charityʼs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

7

Independent Auditor’s Report

To the members of

Development Through Challenge

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorʼs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councilʼs website at: [www.frc.org.uk/auditorsresponsibilities]. This description forms part of our auditor’s report.

8

Independent Auditor’s Report

To the members of

Development Through Challenge

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Date: ……………………………… 9 September 2021

………………………………. Anthony Epton (Senior Statutory Auditor) for and on behalf of Goldwins Limited Statutory Auditor Chartered Accountants 75 Maygrove Road West Hampstead London NW6 2EG

9

Development Through Challenge

Statement of financial activities (incorporating income and expenditure account)

For the year ended 31 December 2020

Income from:
Note
Restricted
£
Unrestricted
£
Donations and grants
3a
1,338
221,811
Charitable activities:
§
Climbing facilities
3b
-
513,924
Other trading activities:
3c
§
Sub letting
-
2,890
§
Café income
-
21,961
_
_
Total income
Expenditure on:
1,338
760,586
§
Advertising and fundraising
-
2,351
§
Café
-
16,435
Charitable activities
§
Climbing facilities
157
1,018,826
_
______
Total expenditure
4
157
1,037,612
Net income / (expenditure)
1,181
(277,026)
Transfer between funds
-
-
Net movement in funds
13
1,181
(277,026)
Funds at the start of the year
3,932
831,787
Funds at the end of the year
5,113
554,761
2020
Total
£
223,149
513,924
2,890
21,961
_
761,924
2,351
16,435
1,018,983
__
1,037,769
(275,845)
-
(275,845)
835,719
559,874
2019
Total
£
7,978
1,340,138
2,981
59,646
__
1,410,743
696
38,852
1,131,389
__
1,170,937
239,806
-
239,806
595,913
835,719

All of the above results are derived from continuing activities. There are no other recognised gains or losses other than stated above.

10

Development Through Challenge

Balance Sheet

As at 31 December 2020

Note
Fixed assets
Tangible fixed assets
8
Current assets
§
Debtors
9
§
Cash at bank and in hand
Creditors: amounts falling due within one year
10
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after one year
10
Net assets
11
Funds
12
Restricted funds
Unrestricted
§
General funds
Total funds
£
12,348
523,694
536,042
(100,278)
2020
£
174,110
435,764
609,874
(50,000)
_
559,874
5,113
559,874
554,761
2019
£
156,031
70,066
691,427
761,494
(81,805)
679,688
835,719
-
_
835,719
3,932
835,719
831,787

28th June

Approved by the directors on ……………………………… 2021 and signed on their behalf by:

………………………….

Rod Leefe Chairman

Company No. 2238901

11

Development Through Challenge

Statement of Cash Flows

For the year ended 31 December 2020

Note
Net cash provided by / (used in) operating
activities
14
Cash flows from investing activities:
Interest/ rent/ dividends from investments
Sale/ (purchase) of fixed assets
Cash provided by / (used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Change in cash and cash equivalents due to
exchange rate movements
Cash and cash equivalents at the end of the year
2020
£
(102,606)
-
(65,127)
(166,733)
(167,733)
691,427
-
523,694
2019
£
255,020
-
(1,701)
(1,701)
253,319
438,108
-
691,427

12

Development Through Challenge

Notes to the Financial Statements

For the year ended 31 December 2020

1. Accounting policies

Development Through Challenge meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost.

Management and administration costs include the management of the charity’s assets, organisational management and compliance with constitutional and statutory requirements.

13

Development Through Challenge

Notes to the Financial Statements

For the year ended 31 December 2020

Accounting policies (continued)

Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their realisable value and value in use.

14

Development Through Challenge

Notes to the Financial Statements

For the year ended 31 December 2020

2. Detailed comparatives for the statement of financial activities

Income from:
2019
Restricted
£
2019
Unrestricted
£
Donations and grants
4,523
3,455
Charitable activities:
§
Climbing facilities
-
1,340,138
Other trading activities:
§
Sub letting
-
2,981
§
Café income
-
59,646
Total income
Expenditure on:
4,523
1,406,220
§
Advertising and fundraising
-
696
§
Café
-
38,852
Charitable activities
§
Climbing facilities
4,946
1,126,443
Total expenditure
4,946
1,165,991
Net income / (expenditure)
(423)
240,229
Transfer between funds
-
-
Net movement in funds
(423)
240,229
Funds at the start of the year
4,355
591,558
Funds at the end of the year
3,932
831,787
2019
Total
£
7,978
1,340,138
2,981
59,646
1,410,743
696
38,852
1,131,389
1,170,937
239,806
-
239,806
595,913
835,719

15

Development Through Challenge

Notes to the Financial Statements

For the year ended 31 December 2020

3a. Donations, legacies and similar income

Restricted Unrestricted 2020 Total 2019 Total
£ £ £ £
Counter Donations - 6,468 6,468 776
Grants and other donations 1,338 213,477 214,815 6,153
Gift Aid - 1,866 1,866 1,049
Total 1,338 221,811 223,149 7,978

3b. Climbing facility income

2020 Total 2019 Total
£ £
Climbing and equipment hire fees 413,474 931,619
Membership fees 25,910 63,825
Course fees 74,540 344,694
513,924 1,340,138

3c. Other trading activities

2020 Total
£
Subletting income
2,890
Café income
21,961
24,851
2019
Total £
2,981
59,646
62,627

16

Development Through Challenge

Notes to the Financial Statements

For the year ended 31 December 2020

4. Total Expenditure

Advertising /
Fundraising
£
Staff cost (Note 6)
-
Premises
-
General office cost
-
Insurance
-
Legal & professional fees
-
Audit & accountancy
-
Training costs
-
Contract climbing costs
-
Bank charges and interest
-
Advertising and promotion
2,351
Climbing equipment
-
Maintenance Wall
-
General repair and
maintenance
-
Purchase of goods for
resale
-
Depreciation
-
Total
2,351
Support costs allocation
-
Total Expenditure 2020
2,351
Total Expenditure 2019
696
Café
£
-
-
-
-
-
-
-
-
-
-
-
-
-
16,435
-
16,435
-
16,435
38,852
Climbing
facilities
£
Support
Costs
£
643,662
-
108,635
-
89,027
-
10,666
-
-
25,641
-
6,560
1,786
-
21,030
-
-
16,951
-
-
9,752
-
12,709
-
25,516
-
-
-
47,048
-
969,831
49,152
49,152
(49,152)
1,018,983
-
1,131,389
-
2020
Total
£
643,662
108,635
89,027
10,666
25,641
6,560
1,786
21,030
16,951
2,351
9,752
12,709
25,516
16,435
47,048
1,037,769
-
1,037,769
2019
Total
£
673,949
42,640
97,396
21,911
36,333
6,420
2,793
113,753
27,170
696
14,104
33,199
25,099
38,852
36,622
1,170,937
1,170,937

Support costs are allocated between activities on the basis of staff time spent.

Of the total expenditure £157 was restricted expenditure (2019: £4,946) and £1,037,612 was unrestricted expenditure (2019: £1,165,991).

17

Development Through Challenge

Notes to the Financial Statements

For the year ended 31 December 2020

5. Net income / (expenditure) for the year

This is stated after charging:

his is stated after charging:
2020 2019
£ £
Depreciation 47,048 36,622
Auditors’ remuneration 6,560 6,300

No trustee received any remuneration during the year and no trustee was reimbursed for travel or any other expenses (2019 – Nil).

6. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Other Staff costs
2020
£
586,431
36,784
20,447
643,662
2019
£
621,672
42,420
9,857
673,949

Total employee benefits including pension contributions of the key management personnel were £61,448 (2019: £60,285).

No employee earned more than £60,000 during the year. The average number of employees during the year was as follows:

2020 2019
No. No.
Running of the climbing facilities 42 44
Management and administration 1 1
43 45

7. Taxation

The Charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. No tax charges have arisen in the Charity.

18

Development Through Challenge

Notes to the Financial Statements

For the year ended 31 December 2020

8. Tangible fixed assets

Improvement
to premises
£
Climbing
wall
£
Climbing
equipment
£
Office
Equipment
£
Cost
At the start of the year
489,961
661,517
121,184
121,103
Additions
3,438
25,638
6,588
29,463
At the end of year
493,399
687,155
127,772
150,566
Depreciation
At the start of the year
489,961
519,508
117,171
111,094
Charge for the year
344
30,782
4,605
11,317
At the end of the year
490,305
550,290
121,776
122,411
Net book value
At the end of the year
3,094
136,865
5,996
28,155
At the start of the year
-
142,009
4,013
10,009
Total
£
1,393,765
Total
£
1,393,765
65,127

1,458,892
1,237,734
47,048

1,284,782
174,110
156,031

9. Debtors

Trade debtors
Other debtors and prepayments
Creditors: amounts falling due within one year
Taxation and social security
Accruals and other creditors

Deferred income
Creditors: amounts falling due after one year
Bank loan
2020
£
4,929
7,419
12,348
2020
£
16,968
83,310
-
100,278
2020
£
50,000
50,000
2019
£
66,270
3,796
70,066
2019
£
26,190
50,431
5,184
81,805
2019
£
-
-

10. Creditors: amounts falling due within one year

11. Creditors: amounts falling due after one year

19

Development Through Challenge

Notes to the Financial Statements

For the year ended 31 December 2020

12. Analysis of net assets between funds

Restricted
Funds
Analysis of net assets between funds 2019
Restricted
Funds
£
Tangible fixed assets
-
Net current assets
3,932
Net assets at the end of the year
3,932
£
Tangible fixed assets
-
Net current assets
5,113
Long term liability
-
Net assets at the end of the year
5,113
General
funds
General
funds
£
156,031
675,756
831,787
£
174,110
430,651
(50,000)
554,761
Total
Funds
Total
Funds
£
156,031
679,688
835,719
£
174,110
435,764
(50,000)
559,874

Analysis of net assets between funds 2019

13. Movements in funds

At
of
Restricted funds:
Squad funds
General funds
Total funds
the start
the year
£
3,932
3,932
831,787
835,719
Income
£
1,338
1,338
760,586
761,924
Expenses
£
Transfers
£
At the end
of the year
£
(157)
-
5,113
(157)
5,113
(1,037,612)
-
554,761
(1,037,769)
-
559,874

20

Development Through Challenge

Notes to the Financial Statements

For the year ended 31 December 2020

Movement in funds 2019

At
of
Restricted funds:
Squad funds
General funds
Total funds
the start
the year
£
4,355
4,355
591,558
595,913
Income
£
4,523
4,523
1,406,220
1,410,743
Expenses
£
Transfers
£
At the end
of the year
£
(4,946)
-
3,932
(4,946)
3,932
(1,165,991)
-
831,787
(1,170,937)
-
835,719

Purpose of restricted funds

Squad fund: this fund represents amounts received and spent on the training and development of climbing squad.

14. Reconciliation of net income / (expenditure) to net cash flow from operating activities

activities
Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation
(Loss)/ profit on the sale of fixed assets
(Increase)/ decrease in debtors
Increase/ (decrease) in creditors
Net cash provided by / (used in) operating activities
2020
£
(275,845)
47,048
-
57,718
68,473
(102,606)
2019
£
239,806
36,622
-
1,923
(23,331)
255,020

15. Related party transactions

No trustee or other person related to the Charity had any personal interest in any contract or transaction entered into by the Charity during the year (2019 – Nil).

21