**Company No. 2238901**
## **Charity No. 299332**
## **DEVELOPMENT THROUGH CHALLENGE**
(A company limited by guarantee)
**REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
**Development Through Challenge**
**Contents**
**For the year ended 31 December 2022**
||**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 – 18|
**Development Through Challenge Legal and administrative details For the year ended 31 December 2022**
|**Status**|The organisation is a charitable Company limited by guarantee,|The organisation 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**|Rod Leefe (new Chair)||
||Martin Soulsby|Resigned 27/06/22|
||Adam Blewett|Resigned 31/10/22|
||Brenda Taggart|Resigned 27/06/22|
||Calum Mclean||
||Carolina Filippini||
||Khatija Hafesji|Resigned 13/02/23|
||Chris Beal|Appointed 30/05/22|
||Michaela Clayton|Appointed 30/05/22|
||Daniel James Hobden|Appointed 30/05/22|
||Angharad Corona|Appointed 17/07/23|
||Naomi Goldberg|Appointed 17/07/23|
|**Principal Staff**|Dean Straw (Chief Executive Officer)||
|**Bankers**|National Westminster Bank||
||PO Box 3242, Albion Yard||
||331/335 Whitechapel Road||
||London||
||E1 1AU||
|**Solicitors**|Bates Wells||
||10 Queen Street Place||
||London||
||EC4R 1BE||
|**Auditors**|Goldwins Limited||
||Chartered Accountants||
||75 Maygrove Road||
||West Hampstead||
||London||
||NW6 2EG||
1
## **Development Through Challenge**
## **Report of the Trustees**
## **For the year ended 31 December 2022**
The Trustees present their report and the audited financial statements for the year ended 31 December 2022.
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).
## **Objectives and Activities**
The Charitable company's objectives are:
- the provision of public recreational facilities in the interest of social welfare and improving conditions of life for the benefit of the public;
- the promotion of community participation in healthy recreation and sport;
- the advancement of education for the benefit of the public with a non-exclusive focus on rescue training and rope handling to promote safety and prevent loss of life.
The company continued to operate Mile End Climbing Wall which remains our main source of income. Facilities were improved further with the provision of a gym. The company’s schools programme continued with individual sessions, general PE and focussed GCSE lessons. We partnered with Tower Hamlets community groups, providing over 300 free climbing sessions reaching over 2000 people of different ages and backgrounds.
The trustees have regularly considered the Charity Commission’s guidance on public benefit, both with regard to the services we provide and, specifically this year, with regard to the development of an investment policy.
We are very grateful to the 10 members of the newly formed stakeholder’s committee who give up their time once a quarter to contribute their thoughts about how well the charity is meeting the needs of the community and how it could improve further.
## **Achievements and performance**
Our intention is to make climbing accessible for all. Our focus on promoting health and wellbeing through sport and fitness has led to a positive impact on over 11,000 individuals and families across London in 2022. Almost 10% of these were children. We engaged our community and got them active and moving, helped to tackle obesity and promoted both the physical and mental health benefits of an active lifestyle. By addressing these issues, we are creating a lasting impact on our community and promoting positive change.
Our program supporting local schools continues to grow and develop as previously mentioned. We focused on making these sessions as financially accessible as possible. During the year, not only did we provide much needed financial support by heavily discounting all our sessions, but we also provided local schools with regular coached sessions at no cost at all. More information can be found in our ~~2022 impact report~~ which is available on our website.
Topics on which the trustees focused in 2022 included
- how to ensure Mile End Climbing Wall continues as a centre of climbing excellence
- improving our sustainability
- opportunities to improve and add to our facilities
- improving trustee and organisational diversity
- governance improvements
- better use of data
- and greater stakeholder input to decisions and activities
2
**Development Through Challenge**
**Report of the Trustees**
**For the year ended 31 December 2022**
## **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.
## **Financial Review**
Income from climbing facilities, our main source of income, increased 37% to £877,395 as we continued to recover from the Covid pandemic. Total income was down on 2021 levels, although this included the £500,000 business interruption insurance that was received in the year.
In total we incurred a small (£49,507) loss in 2022, which reduced our reserves slightly however the charity finished the year in a strong financial position with £849,487 of cash at the bank.
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.
At the year end the charity had reserves totalling £985,734 (with £7,466 restricted funds and £978,268 unrestricted.
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
## **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 are 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).
3
## **Development Through Challenge**
## **Report of the Trustees**
## **For the year ended 31 December 2022**
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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities Statement of Recommended Practice (SORP);
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards 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 charitable company will continue in business.
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
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 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 17th July 2023
And signed on their behalf by:
……………………………….
**Rod Leefe**
4
## **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 2022 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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 December 2022 and of its income and expenditure for the year then ended:
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 Auditor’s 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 auditor’s 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.
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
5
## **Independent Auditor’s Report**
## **To the members of**
## **Development Through Challenge**
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:
- the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ report (incorporating the directors’ report) have been prepared in accordance with applicable legal requirements.
## **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:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **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.
## **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.
6
## **Independent Auditor’s Report**
## **To the members of**
## **Development Through Challenge**
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:
- We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity's policies and procedures relating to the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
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.
## **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.
……………………………….
**Anthony Epton (Senior Statutory Auditor) for and on behalf of Goldwins Limited Statutory Auditor Chartered Accountants 75 Maygrove Road West Hampstead London NW6 2EG**
## **29 September 2023**
7
## **DEVELOPMENT THROUGH CHALLENGE STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Note**
**Income from:**
Donations and legacies
**3a.**
**Charitable activities:**
Climbing facilities
**3b.**
**Other trading activities:**
**3c.**
Sub letting
Café income
**Other income**
**3d.**
**Total income**
**Expenditure on:**
Advertising and fundraising
Café
Charitable activities:
Climbing facilities
**Total expenditure**
**4.**
**Net income / (expenditure)**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
**12.**|**2022**
**2021**
**Restricted Unrestricted**
**Total**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**£**
-
36,451
36,451
146,257
-
877,395
877,395
641,429
-
10,667
10,667
3,881
-
54,508
54,508
28,518
-
106
106
500,000|
|---|---|
||**-**
**979,127**
**979,127**
**1,320,085**
-
5,047
5,047
1,044
-
31,855
31,855
16,799
-
991,732
991,732
826,875|
||**-**
**1,028,634**
**1,028,634**
**844,718**|
||**-**
**(49,507)**
**(49,507)**
**475,367**
-
-
-
-|
||**-**
**(49,507)**
**(49,507)**
**475,367**
7,466
1,027,775
1,035,241
559,874|
||**7,466**
**978,268**
**985,734**
**1,035,241**|
All of the above results are derived from continuing activities.
There were no other recognised gains or losses other than those stated above.
The attached notes form part of these financial statements.
8
## **DEVELOPMENT THROUGH CHALLENGE BALANCE SHEET AS AT 31 DECEMBER 2022**
|**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**
**Creditors: Amounts falling due in more**
**than one year:**
**11.**
**Total net assets**
**Reserves**:
Restricted funds
Unrestricted funds
**13.**|**2022**
**£**
**£**
187,417
13,593
849,487
863,080
(64,763)
798,317
-
**985,734**
7,466
978,268
**985,734**|**2021**
**£**
**£**
203,218
26,456
971,027
997,483
(165,460)
832,023
-
**1,035,241**
7,466
1,027,775
**1,035,241**|**2021**
**£**
**£**
203,218
26,456
971,027
997,483
(165,460)
832,023
-
**1,035,241**
7,466
1,027,775
**1,035,241**|
|---|---|---|---|
|||||
||||**1,035,241**|
||||7,466
1,027,775|
||||**1,035,241**|
Approved by the Board of Trustees on …..............................and signed on its behalf by: 17th July 2023
……………………………………
**Rod Leefe Chairman**
**Company registration no. 02238901**
9
**DEVELOPMENT THROUGH CHALLENGE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Note**
**2022**
**£**
**14.**
**Cash flows from investing activities:**
Sale / (purchase) of fixed assets
**(31,132)**
**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
**Cash and cash equivalents at the end of the year**
**15.**
**Net cash provided by / (used in) operating activities**|**Note**
**2022**
**£**
**14.**
**Cash flows from investing activities:**
Sale / (purchase) of fixed assets
**(31,132)**
**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
**Cash and cash equivalents at the end of the year**
**15.**
**Net cash provided by / (used in) operating activities**|**2022**
**£**
**(90,408)**
**(31,132)**|2021
£
(72,712)|2021
£
520,045
(72,712)|
|---|---|---|---|---|
||||||
|||**(121,540)**
**971,027**||447,333
523,694|
|||**849,487**||971,027|
10
**DEVELOPMENT THROUGH CHALLENGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. Accounting policies**
## **a) Basis of preparation**
The financial statements have been prepared 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 2015) - (Charities SORP FRS 102) and the Companies Act 2006.
The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
## **b) Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
## **c) Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
## **d) Donations of gifts, services and facilities**
Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.
On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Fees income represents income derived from members to use facilities and is stated exclusive of value added tax. This includes a one off member charge which entitles the member to use the facilities thereafter. These membership charges are recognised when received.
## **e) 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.
## **f) Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of charity.
Restricted funds are funds which the funder has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.
Designated funds are unrestricted funds set aside by the Trustees for particular purposes.
11
**DEVELOPMENT THROUGH CHALLENGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. Accounting policies**
## **g) Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds comprise of trading costs and the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose.
- Expenditure on charitable activities includes the costs of delivering services and other activities undertaken to further the purposes of the charity and their associated support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **h) Allocation of support costs**
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity and its and activities. Support costs are allocated between cost of raising funds and charitable activities.
## **i) Tangible fixed assets**
Depreciation is provided at rates calculated to write down the cost of each asset on a straight-line basis to its estimated residual value over its expected useful life. The depreciation rates in use as follows:
> Leasehold improvements Over the remaining life of the lease or shorter, as appropriate Climbing wall 10 years Climbing equipment 5 years Office equipment 5 years
## **j) Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **k) 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 of three months or less from the date of acquisition or opening of the deposit or similar account.
## **l) Creditors and provisions**
Creditors 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 and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **m) Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
12
**DEVELOPMENT THROUGH CHALLENGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **2. Detailed comparatives for the statement of financial activities**
|**Income from:**
Donations and grants
**Charitable activities:**
Climbing facilities
**Other trading activities:**
Sub letting
Café income
**Other income**
**Total income**
**Expenditure on:**
Advertising and fundraising
Café
**Charitable activities:**
Climbing facilities
**Total expenditure**
**Net income / (expenditure)**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
**Donations, legacies and similar income**
Donations
Grants and other income
Gift aid
**Climbing facility income**
Climbing and equipment hire fees
Membership fees
Course fees|2021
2021
2021
Restricted Unrestricted
Total
Funds
Funds
Funds
£
£
£
3,381
142876
146,257
-
641,429
641,429
-
3,881
3,881
-
28,518
28,518
-
500,000
500,000
3,381 1,316,704 1,320,085
-
1,044
1,044
-
16,799
16,799
1,028
825,847
826,875
1,028 843,690 844,718
2,353
473,014
475,367
-
-
-
2,353
473,014
475,367
5,113 554,761 559,874
7,466
1,027,775 1,035,241
**2022**
2021
**Restricted Unrestricted**
**Total**
Total
**£**
**£**
**£**
£
-
249
**249**
16,445
-
4,000
**4,000**
106,444
-
32,202
**32,202**
23,368|2021
2021
2021
Restricted Unrestricted
Total
Funds
Funds
Funds
£
£
£
3,381
142876
146,257
-
641,429
641,429
-
3,881
3,881
-
28,518
28,518
-
500,000
500,000|
|---|---|---|
|||3,381 1,316,704 1,320,085
-
1,044
1,044
-
16,799
16,799
1,028
825,847
826,875|
|||1,028 843,690 844,718
2,353
473,014
475,367
-
-
-|
|||2,353
473,014
475,367
5,113 554,761 559,874|
|||7,466
1,027,775 1,035,241|
||**-**
**36,451**
**36,451**
146,257||
||**2022**
2021
**Restricted Unrestricted**
**Total**
Total
**£**
**£**
**£**
£
-
599,089
**599,089**
493,992
-
72,018
**72,018**
30,532
-
206,288
**206,288**
116,905||
||**-**
**877,395**
**877,395**
641,429||
## **3a. Donations, legacies and similar income**
## **3b. Climbing facility income**
13
**DEVELOPMENT THROUGH CHALLENGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **3c. Other trading activities**
|**Other trading activities**|||||||
|---|---|---|---|---|---|---|
||||||**2022**|2021|
||||**Restricted **|**Unrestricted**|**Total**|Total|
||||**£**|**£**|**£**|£|
|Subletting income|||-|10,667|**10,667**|3,881|
|Café income|||-|54,508|**54,508**|28,518|
||||**-**|**65,175**|**65,175**|32,399|
|**Other income**|||||||
||||||**2022**|2021|
||||**Restricted **|**Unrestricted**|**Total**|Total|
||||**£**|**£**|**£**|£|
|Bank interest|||**-**|106|**106**|-|
|Business interruption insurance claimed|||**-**|-|**-**|500,000|
||||**-**|**106**|**106**|500,000|
|**Total Expenditure**|||||||
||||||**2022**|2021|
||**Raising**
**funds**|**Café**|**Climbing**
**facilities**|
**Support**
**costs**|**Total**|**Total**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Staff cost (Note 6)|-|-|650,572|-|650,572|499,687|
|Premises|-|-|112,429|-|112,429|113,230|
|General office cost|-|-|67,719|-|67,719|67,768|
|Insurance|-|-|14,876|-|14,876|13,264|
|Legal & professional fees|-|-|-|28,024|28,024|29,741|
|Audit fees|-|-|-|6,600|6,600|5,750|
|Training costs|-|-|6,941|-|6,941|6,901|
|Contract climbing costs|-|-|14,628|-|14,628|9,755|
|Bank charges and interest|-|-|-|22,039|22,039|19,829|
|Advertising and promotion|5,047|-|-|-|5,047|1,044|
|Climbing equipment|-|-|8,420|-|8,420|2,759|
|Maintenance Wall|-|-|-|-|-|4,223|
|General repair and maintenance|-|-|12,551|-|12,551|10,364|
|Purchase of goods for resale|-|31,855|-|-|31,855|16,799|
|Depreciation|-|-|46,933|-|46,933|43,604|
|**Total**|**5,047**|**31,855**|**935,069**|**56,663**|**1,028,634**|**844,718**|
|**Support costs allocation**|**-**|**-**|**56,663**|**(56,663)**|**-**||
|**Total Expenditure 2021**|**5,047**|**31,855**|**991,732**|**-**|**1,028,634**||
||||||||
|**Total Expenditure 2020**|**1,044**|**16,799**|**826,875**|**-**||**844,718**|
## **3d. Other income**
## **4. Total Expenditure**
Support costs are allocated between activities on the basis of staff time spent.
Of the total expenditure £Nil was restricted expenditure (2021: £1,028) and £1,028,634 was unrestricted expenditure (2021: £843,690 ).
14
**DEVELOPMENT THROUGH CHALLENGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **5. Net income / (expenditure) for the year**
This is stated after charging / (crediting):
|**Net income / (expenditure) for the year**
This is stated after charging / (crediting):|||
|---|---|---|
||**2022**|2021|
||**£**|£|
|Depreciation|**46,933**|43,604|
|Auditors remuneration|**5,500**|5,417|
## **6. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel**
Staff costs were as follows:
|Salaries and wages
Social security costs
Pension costs
Other staff costs|**2022**
2021
**£**
£
**590,506**
453,676
**44,894**
24,363
**10,820**
14,284
**4,352**
7,364|
|---|---|
||**650,572**
499,687|
No employee earned more than £60,000 during the year.
The total employee benefits including Employer's NIC and pension contributions of the key management personnel were £64,283 (2021: £56,835).
No trustee received any remuneration during the year and no trustee was reimbursed for travel or any other expenses (2021 – Nil).
The average number of employees (head count based on number of staff employed) during the year was:
|Running of the climbing facilities
Management and administration|**2022**
2021
**No.**
No.
**35**
33
**1**
1|
|---|---|
||**36**
34|
## **7. Taxation**
The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
15
**DEVELOPMENT THROUGH CHALLENGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **8. Tangible fixed assets**
|**Cost**
At the start of the year
Additions in year
At the end of the year
**Depreciation**
At the start of the year
Charge for the year
At the end of the year
**Net book value**
**At the end of the year**
At the start of the year|**Improvement**
**to premises**
**Climbing**
**wall**
**Climbing**
**equipment**
**Office**
**Equipment**
**Total**
**£**
**£**
**£**
**£**
**£**
549,104
702,150
127,772
152,578
**1,531,604**
3,925
-
25,692
1,515
**31,132**|
|---|---|
||**553,029**
**702,150**
**153,464**
**154,093**
**1,562,736**|
||494,363
578,666
123,819
131,538
**1,328,386**
4,170
28,297
6,456
8,010
**46,933**|
||**498,533**
**606,963**
**130,275**
**139,548**
**1,375,319**|
|||
||**54,496**
**95,187**
**23,189**
**172,872**
**187,417**|
|||
||54,741
123,484
3,953
182,178
203,218|
All of the above assets are used for charitable purposes.
## **9. Debtors**
|Trade debtors
Other debtors and prepayments
**Creditors: amounts falling due within one year**
Taxation and social security
Other creditors and accruals
Deferred income|**2022**
2021
**£**
£
**6,096**
3,744
**7,497**
22,712|
|---|---|
||**13,593**
26,456|
||**2022**
2021
**£**
£
**24,154**
16,545
**34,169**
148,051
**6,440**
864|
||**64,763**
165,460|
## **10. Creditors: amounts falling due within one year**
Deferred income represents amounts received in advance for the events due to take place in next financial year
## **11. Creditors: amounts falling due after one year**
|**Creditors: amounts falling due after one year**||
|---|---|
|Bank loans|**2022**
2021
**£**
£
**-**
-|
||**-**
-|
The bank loans are secured against the charity's assets.
16
**DEVELOPMENT THROUGH CHALLENGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **12. Analysis of net assets between funds**
|Tangible fixed assets
Net current assets
Long term liabilities
**Net assets at the end of the year**
**Analysis of net assets between funds 2021**
Tangible fixed assets
Net current assets
Long term liabilities
**Net assets at the end of the year**|**Restricted**
**funds**
**Unrestricted**
**funds**
**Total**
**funds**
**£**
**£**
**£**
-
187,417
**187,417**
7,466
790,851
**798,317**
-
-
**-**|
|---|---|
||**7,466**
**978,268**
**985,734**|
||**Restricted**
**funds**
**Unrestricted**
**funds**
**Total**
**funds**
**£**
**£**
**£**
-
203,218
203,218
7,466
824,557
832,023
-
-
-|
||**7,466**
**1,027,775**
**1,035,241**|
## **13. Movements in funds**
|**Restricted funds:**
Squad funds
Andy Reid memorial funds
**General funds**
**Total funds**
**Movements in funds 2021**
Restricted funds:
Squad funds
Andy Reid memorial funds
General funds
Total funds|**At the start of**
**the year**
**Income**
**Expenses**
**Transfers**
**At the end**
**of the year**
**£**
**£**
**£**
**£**
**£**
5,113
-
-
-
**5,113**
2,353
-
-
-
**2,353**|
|---|---|
||**7,466**
**-**
**-**
**-**
**7,466**
**1,027,775**
**979,127**
**(1,028,634)**
**-**
**978,268**|
||**1,035,241**
**979,127**
**(1,028,634)**
**-**
**985,734**|
||**At the start of**
**the year**
**Income**
**Expenses**
**Transfers**
**At the end**
**of the year**
**£**
**£**
**£**
**£**
**£**
5,113
-
-
-
5,113
-
3,381
(1,028)
-
2,353|
||5,113
3,381
(1,028)
-
7,466
554,761
1,316,704
(843,690)
-
1,027,775|
||559,874
1,320,085
(844,718)
-
1,035,241|
17
**DEVELOPMENT THROUGH CHALLENGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **14. Reconciliation of net income / (expenditure) to net cash flow from operating activities**
|**Net income / (expenditure) for the reporting period**
**(as per the consolidated statement of financial activities)**
Depreciation
(Increase) / decrease in debtors
Increase / (decrease) in creditors
**Net cash provided by / (used in) operating activities**|**2022**
2021
**£**
£
**(49,507)**
475,367
**46,933**
43,604
**12,863**
(14,108)
**(100,697)**
15,182|
|---|---|
||**(90,408)**
520,045|
## **15. Analysis of cash and cash equivalents**
|**Analysis of cash and cash equivalents**||
|---|---|
|Cash at bank and in hand
**Total cash and cash equivalents**|**At the start**
**of the year**
**Cash flows**
**Other**
**changes**
**At the end**
**of the year**
**£**
**£**
**£**
**£**
971,027
(121,540)
-
849,487|
||**971,027**
**(121,540)**
**-**
**849,487**|
## **16. 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 (2021 – Nil).
18