2020-08-31-accounts

Charity number: 800253

RICHMOND GYMNASTICS ASSOCIATION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

RICHMOND GYMNASTICS ASSOCIATION

CONTENTS

	Page
Reference and administrative details of the Charity, its Trustees and advisers	1
Trustees' report	2 - 7
Independent auditors' report on the financial statements	8 - 10
Statement of financial activities	11
Balance sheet	12
Statement of cash flows	13
Notes to the financial statements	14 - 29

RICHMOND GYMNASTICS ASSOCIATION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020

Trustees

Mrs C A Bailey, Vice Chairperson - Mrs S Wilson, Co Chairperson Mr S Kimberley, Treasurer Mrs C Brockbank - Mrs S Campbell, Co Chairperson Mrs C J Cason Dr H Gilbert Ms V Green Ms C Hewitt Ms J MacDonald Ms K Taylor (resigned 1 July 2021) Mr P Jeffcock, Chairperson (resigned 29 February 2020)

Charity registered number

800253

Principal office

Townmead Road Kew Surrey TW9 4EL

Independent auditors

Feltons 1 The Green Richmond Surrey TW9 1PL

Bankers

Handelsbanken 31 The Green Richmond Surrey TW9 1LX

Page 1

RICHMOND GYMNASTICS ASSOCIATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 September 2019 to 31 August 2020. The Trustees confirm that the Annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP).

Objectives and activities

a. Policies and objectives

General Polices

The policies of the Trustees are to ensure that the Trust operates in accordance with the rules laid down in its constitution and to continue with the provision of gymnastics facilities for the benefit of young people in its constituent area.

Narrative Information

The law requires all charities to demonstrate that their charitable purposes or aims are for the public benefit. The following Public Benefit Statement has been written with guidelines issued by The Charity Commission for England and Wales.

Charitable Purpose

The charitable purpose of Richmond Gymnastics Association is to provide the advancement of physical education, training and development of children and young people by providing and organising premises, equipment and coaching to enable them to undertake and participate in gymnastics and other forms of physical education.

Public Benefit

• Provision of gymnastics facilities for the benefit of children and young people in the local community.

• Provision of courses, lectures, demonstrations, displays and coaching for young people in the local community and for coaches who organise or supervise the teaching and coaching of gymnastics.

• Promotion and provision of the training of coaches for the purpose of training gymnasts.

• To equip and maintain gymnastics facilities for the teaching and training of gymnasts.

• To employ coaches and other staff to further the objectives outlined above.

Page 2

RICHMOND GYMNASTICS ASSOCIATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Objectives and activities (continued)

b. Strategies for achieving objectives

Richmond Gymnastics Association runs gymnastics classes at its purpose-built centre at Townmead Road in Kew and at six satellite centres in primary schools and halls across the London Borough of Richmond upon Thames, and provides coaches for gymnastic classes at four Borough sports centres. It works in partnership with Richmond Council to provide community gymnastics and has affiliations to British Gymnastics and London Gymnastics.

All gymnasts are members of the Association which is primarily financed from membership fees, but also donations and sponsorship. Reduced rates are offered to parents in receipt of income support or on low income. All gymnasts and coaches are members of, and insured by, British Gymnastics. Coaches are also British Gymnastics trained and qualified, and the Association supports coaches to qualify and upgrade their qualifications. On behalf of London Gymnastics, the Association hosts coaching courses and judging courses for general gymnastics, preschool, acrobatic gymnastics and tumbling, also mentoring club management and time to listen courses. Policies are in place for Child Protection, Equal Opportunities and Health and Safety, and there is a procedure for complaints.

c. Activities undertaken to achieve objectives

The Association provides pre-school gymnastics for children aged from 12 months to 5 years and general gymnastics for children aged from 5 upwards. It also runs gymnastics camps at its Centre in the Easter and Summer holidays, and supervised parties for children at weekends. All general gymnasts are encouraged to achieve British Gymnastics and Richmond Award Scheme badges and have the opportunity to take part in competitions organised by Richmond Gymnastics Association and other London Gymnastics clubs. Gymnasts who demonstrate natural ability and basic skills are invited to test for one of the Association’s competitive squads – acrobatic gymnastics, tumbling and floor and vault- competing at all levels including club, regional, national and international.

The Association offers gymnastics for young people with disabilities, offering integration into mainstream classes with one to one coaching where appropriate as well as separate classes, a competitive squad, and programmes to meet the needs of schools. Senior coaches who work with disabled gymnasts are British Gymnastics Disability Gymnastics qualified. Free “taster” gymnastic sessions, usually two or three a term, are also provided for schools that have units for young people with disabilities in the Richmond Borough.

The facilities provided by the Association at its Townmead Road Centre are outstanding and include two full-size performance floors, a separate training gym, and an international-length tumble track. The Centre is used seven days a week and is only closed for one week a year. However, the Centre is small, and demand for places far exceeds the supply available due to the small premises.

Achievements and performance

a. Review of activities

The results for the year are set out in pages 11 to 29. The Association has continued to provide courses, lectures, demonstrations, displays and coaching for young people in its constituent’s area and to provide or assist in the training of teachers and coaches for gymnastics purposes. Additional coaching capacity has helped members to achieve their goals of enhanced performance.

Page 3

RICHMOND GYMNASTICS ASSOCIATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Achievements and performance (continued)

b. Factors relevant to achieve objectives

The Association’s membership at September 2020 was 1,550 members. All classes are extremely popular and much in demand.

In the meantime, the Association has completed its planned programme of maintenance and improvements at the Centre in Kew.

The Association is committed to employing well-qualified and professional staff in order to maintain its high standards of coaching and coaches are offered a comprehensive training and development programme. Contracts of employment for coaching and administrative staff have been updated and Enhanced maternity and Contractual Sick Pay policies have been implemented. A pension scheme was introduced in January 2009. Salaries have been reviewed and increased and additional staff recruited in accordance with priorities identified by the Director of Coaching.

The final half of the year 2019/20 proved extremely challenging as it did for so many businesses and charities with the onset of a global pandemic. The Association was forced to close its doors to members in March 2020 as we went into lockdown and the majority of staff were furloughed.

The Association provided online sessions in the Summer term for both general and squad gymnasts endeavouring to keep everyone active and motivated during the final months until restrictions were lifted.

The Trustees would like to express huge gratitude to the Management Team and support staff for their hard work and proactive approach throughout, enabling the charity to survive the worst of the pandemic.

We are also indebted to the many members and their families who continued to support the charity financially during this time.

We began in September 2019 with everything running smoothly and according to plan. Gymnasts continued to achieve at a very high standard in what was to be a limited competition year.

The Trustees extend their warm thanks and good luck to Elizabeth Patkai, Head of Floor & Vault who is retiring and returning to her native Hungary. A new Head of Floor & Vault has been employed and the squad will continue to train and compete as usual.

We said goodbye to one long-standing and valued member of the coaching team, Shannon Hobbins and the Trustees extend their thanks and best wishes to Shannon.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Page 4

RICHMOND GYMNASTICS ASSOCIATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

b. Reserves policy

Apart from the restricted Townmead Project and Tumble Run funds and the Jack Petchey Foundation fund and other restricted funds and the assets purchased by those funds, all the Association and Tumble Run’s assets are available for its ongoing charitable objects as set out in its constitution. The current level of reserves is considered adequate for the Associations’ immediate requirements and it’s future plans, particularly the possibility of the Association extending the term of its existing lease with its freeholder, the London Borough of Richmond upon Thames.

c. Financial risk management objectives and policies

The Association was financially stable for financial year to 30th August 2020. Our overall net movement in funds for the year was £2,262 for the year, compared with £90,614 the previous year. The main reduction was due to the covid impact and closing of the club for a period in line with Government restrictions. It should be noted we received approx. £140k from the Government covid scheme during this period to help support our staff and club.

Our operational cost has remained similar to last year, but we made savings in the following areas due to the impact of Covid, competition costs and building operational costs.

The club is in the final process of signing an extension to our current lease for an additional 30 years with Richmond Borough Council. Our current lease ends in 2025, so the revised lease will be to 2055, which is safeguarding the legacy of Richmond Gymnastics Association.

Our net cash position decreased by £510k with the majority of this being spent on the new building in the year.

Structure, governance and management

a. Constitution

The Trust was incorporated on 12 November 1992 as an unincorporated association under the name “Richmond Gymnastics Association”. It is governed by its constitution, which was adopted by its members at the general meeting held at that date. The affairs of the Association and management of its funds are vested in its management committee.

b. Methods of appointment or election of Trustees

The Board of Trustees consists of three elected officers, namely the 2 Co-Chairs, Vice chair and Treasurer, together with up to ten members elected by the Annual General Meeting and up to four members who may be co-opted onto the committee by a majority vote of the committee members present and voting at the meeting at which such co-options are considered. At the Annual General Meeting, one elected officer and two elected members shall retire from office, but shall be eligible for re-election at the same Annual General Meeting.

Carol Bailey is the elected officer and C Hewitt and C Carson are the two elected committee members retiring by rotation. C Bailey, C Hewitt and C Carson are standing for re-election.

c. Policies adopted for the induction and training of Trustees

New Trustees are made aware of their responsibilities as Trustees and encouraged to undertake such personal training for their duties as they consider necessary. A knowledge of gymnastics is desirable.

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RICHMOND GYMNASTICS ASSOCIATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Structure, governance and management (continued)

d. Risk management

The Trustees have assessed the major risks to which the charity is exposed, in particular, those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

The Trustees have identified and actively reviewed the major risks to which the charity is exposed, as follow:

• a. Physical injury to staff or members in the performance of their Activities.

• b. Major costs of renewing and maintaining the Association’s premises.

• c. Loss of use of the Association’s premises due to fire or other risks and the consequential financial losses arising therefrom.

In each case, appropriate steps have been taken to mitigate these risks.

Plans for future periods

The Association aims to provide facilities suitable for the ongoing development of the competitive squads and to open classes to a wider membership. Thus, the Townmead Road extension is essential to meet this goal.

However, given the difficult 2020 and the ongoing uncertainty around Covid in 2021, plans for Phase 2 of construction will be put on hold, at least in the short term, until all normal activities resume in full, which together with fresh fundraising efforts, ensures the charity remains on a strong financial footing.

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the . They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6

RICHMOND GYMNASTICS ASSOCIATION TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Dis¢losure ol Informatlon to auditors Each ol th8 persons who are Trustees al the timè whèn this TrustÈes' report is approved has eonfirmod Ihat.. so lar as that Trustee 15 aware. there is no relevant audit information ol which the eharivs auditors are unaware, and that Trustee has taken all the Steps that oughl to have been taken as a Trustee in order 10 be aware of any relevant audil inforrnation and to estaNish that the charilys a￿JItors are awarè ol that inforrnation. Auditors The auditOTS, Fettons, hav8 indicated their willingness to continue in oifice. The desgnaled Trustees will propose a rnotion reappointing the auditors al a meetsng ol the Trustees. Approved by order of the mèmbers of the tM)8rd of Trustees on 21 Dece]nbei 2021 and signed on their tehalf by.. Mrs S Wilson Co-Chairper50n Page 7

RICHMOND GYMNASTICS ASSOCIATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RICHMOND GYMNASTICS ASSOCIATION

Opinion

We have audited the financial statements of Richmond Gymnastics Association (the 'charity') for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. 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).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

• give a true and fair view of the state of the charity's affairs as at 31 August 2020 and of its incoming resources and application of resources 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 Charities Act 2011.

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 Auditors' 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 United Kingdom, including the Financial Reporting Council's 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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RICHMOND GYMNASTICS ASSOCIATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RICHMOND GYMNASTICS ASSOCIATION (CONTINUED)

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 Auditors' report thereon. Our opinion on the financial statements does not cover the other information and 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees 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 charity's 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.

Page 9

RICHMOND GYMNASTICS ASSOCIATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RICHMOND GYMNASTICS ASSOCIATION (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Auditors' 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditors' 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Feltons

1 The Green

Richmond

Surrey

TW9 1PL

22 December 2021

Feltons are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 10

RICHMOND GYMNASTICS ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020

Note Income from: Donations and legacies 3 Charitable activities 4 Other income 5 Total income Expenditure on: Charitable activities 6 Total expenditure Net (expenditure)/income Transfers between funds 15 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Restricted funds 2020 £ 2,250 1,473 - 3,723 123,742 123,742 (120,019) 10,732 (109,287) 268,278 (109,287) 158,991	Unrestricted funds 2020 £ 207,363 863,607 2,034 1,073,004 950,723 950,723 122,281 (10,732) 111,549 613,738 111,549 725,287	Total funds 2020 £ 209,613 865,080 2,034 1,076,727 1,074,465 1,074,465 2,262 - 2,262 882,016 2,262 884,278	Total funds 2019 £ 23,250 1,212,751 1,666
				1,237,667
				1,147,053
				1,147,053
				90,614 -
				90,614
				791,402 90,614
				882,016

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 14 to 29 form part of these financial statements.

Page 11

RICHMOND GYMNASTICS ASSOCIATION BALANCE SHEET AS AT 31 AUGUST 2020 2020 2019 Note Fixed assels Tangible assets 12 869,701 439,265 B69,701 439.263 Cuirent assets Debtors Cash al bank and in hand 13 2.352 211,445 3.028 721,519 213.797 724,547 Gredilors.. arnounls falling due wthin one year 1199,2201 (281,794) Net eurrent assets 14.5TT 442, 753 Total assets less Current liabilities 884.278 882,016 Net assets excluding pension asset 884,278 882.016 Total net assets 884,278 882.016 Charlty funds Restri￿ed funds 15 158.991 725,287 268,278 613. 738 Unrestricted funds 15 Toial fund3 884,278 882.016 The financial statements werè approved and authorised for issue by the Trustees on 21 December 2021 S￿gned on their behalf by: and Mr S Kimbeiley Mrs S Wilso Thè not95 on p8ge5 14 10 29 lorrn part ol these financi41 statements. Page12

RICHMOND GYMNASTICS ASSOCIATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities Net cash provided by financing 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 The notes on pages 14 to 29 form part of these financial statements	2020 £ (13,219) (496,855) (496,855) - (510,074) 721,519 211,445	2019 £ 157,216 (126,086) (126,086) - 31,130 690,389 721,519

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RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. General information

Richmond Gymnastics Association is a charity set up in the United Kingdom and governed under the Charities Act 2011. The organisation is an unincorporated association, registered with the Charity Commission for England and Wales. The address of the principal office is Townmead Road, Kew, Surrey, TW9 4EL.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts.

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Richmond Gymnastics Association 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.

2.2 Going concern

The financial statements of the Charity are prepared on a going concern basis.

The ongoing Covid-19 outbreak has caused severe disruption to charities nationally, including the Charity. The Trustees have analysed and continue to carry out ongoing monitoring of the impact on the charity's financial position.

The Charity meets its day to day working capital requirements through its cashflows from operations.

The Trustees have also assessed the impact of the Covid-19 outbreak on its future financial and trading outlook and considered the impact on its cashflows, along with appropriate mitigation plans. The Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. As a result, they continue to adopt the going concern basis of accounting in preparing the financial statements.

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RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.

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RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.6 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 institution with whom the funds are deposited.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following bases:

• Leasehold Property 4% p.a. over the period of the lease. Tumble Run extension - equally over the remaining 5 years of the lease. The lease expires in May 2025. Office and gymnastic equipment - 3 - 5 years straight line basis. - Building under construction Nil depreciation until ready for use.

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

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RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.11 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.

2.12 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Income from donations and legacies

Grants, donations and legacies Market value rent on the association premises not charged by the freeholder Furlough Grants Total 2020 Total 2019	Restricted funds 2020 Unrestricted funds 2020 £ £ 2,250 44,104 - 21,000 - 142,259 2,250 207,363 2,250 21,000	Total funds 2020 £ 46,354 21,000 142,259 209,613 23,250	Total funds 2019 £ 2,250 21,000 -
			23,250

Page 17

RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

4. Income from charitable activities

Unrestricted activities Other income - parties, sales of kit, badges, coaching and competition Fund raising income - Elite squads Fund raising income - Building Total 2020 Total 2019	Restricted funds 2020 Unrestricted funds 2020 £ £ - 820,997 - 42,610 1,373 - 100 - 1,473 863,607 53,381 1,159,370	Total funds 2020 £ 820,997 42,610 1,373 100 865,080 1,212,751	Total funds 2019 £ 1,097,549 61,821 231 53,150
			1,212,751

5. Other incoming resources

Bank interest Total 2019	Unrestricted funds 2020 £ 2,034 1,666	Total funds 2020 £ 2,034 1,666	Total funds 2019 £ 1,666

Page 18

RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

6. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted activities Townmead Project Acro, tumbling and floor and vault fund Friends of Richmond Buildings fund The Jack Petchey Foundation Total 2019	Restricted funds 2020 Unrestricted funds 2020 £ £ - 950,723 36,432 - 1,090 - - - 85,638 - 582 - 123,742 950,723 112,228 1,034,825	Total funds 2020 £ 950,723 36,432 1,090 - 85,638 582 1,074,465 1,147,053	Total funds 2019 £ 1,034,824 36,432 489 77 74,995 236
			1,147,053

7. Analysis of expenditure by activities

Unrestricted activities Townmead Project Acro, tumbling and floor and vault fund Friends of Richmond Buildings fund The Jack Petchey Foundation Total 2019	Activities undertaken directly 2020 £ 560,534 36,432 1,090 - 85,638 582 684,276 673,234	Support costs 2020 £ 390,188 - - - - - 390,188 473,819	Total funds 2020 £ 950,722 36,432 1,090 - 85,638 582 1,074,465 1,147,053	Total funds 2019 £ 1,034,824 36,432 489 77 74,995 236
				1,147,053

Page 19

RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Unrestricted activities 2020 £ Staff costs 516,269 Depreciation 29,984 Other direct costs 6,782 Friends of Richmond expenditure - Governance costs 7,500 560,535 Total 2019 554,005 Staff costs Depreciation Other direct costs Friends of Richmond expenditure Governance costs Total 2019	Townmead Project 2020 £ - 36,432 - - - 36,432 36,432	Tumble Run 2020 £ - - 1,090 - - 1,090 489 The Jack Petchey Foundation 2020 £ - - 582 - - 582 236	Friends of Richmond 2020 £ - - - - - - 77 Total funds 2020 £ 516,269 66,416 94,092 - 7,500 684,277 673,234	Buildings fund 2020 £ - - 85,638 - -
				85,638
				74,995
				Total funds 2019 £ 513,913 67,132 85,112 77 7,000
				673,234

Page 20

RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

7. Analysis of expenditure by activities (continued)

Analysis of support costs

Unrestricted activities 2020 £ Salaries and payroll costs 172,090 Establishment costs 70,728 Bank and credit card charges 10,191 Repairs and maintenance 25,023 Telephone and computer 11,690 Printing, postage and stationery 4,714 Competition expenses 21,118 Sundry and other costs 13,737 Legal and professional costs 15,970 Kit, medals and other purchases 9,140 Bookkeeping 194 Cleaning 22,005 Training and travel 13,588 390,188 Total 2019 473,819	Total funds 2020 £ 172,090 70,728 10,191 25,023 11,690 4,714 21,118 13,737 15,970 9,140 194 22,005 13,588 390,188 473,819	Total funds 2019 £ 128,478 87,828 15,413 22,099 17,169 4,259 94,346 11,506 4,944 33,398 484 29,341 24,554
		473,819

8. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £7,500 ( 2019 - £7,000 ).

Page 21

RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

9. Staff costs

Wages and salaries	2020 £ 688,359 688,359	2019 £ 642,392
		642,392

The average number of persons employed by the Charity during the year was as follows:

Office and management Coaching	2020 No. 3 43 46	2019 No. 3 47
		50

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

		2020	2019
		No.	No.
In the band £60,001	- £70,000	-	2

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019 - £NIL) .

During the year ended 31 August 2020, no Trustee expenses have been incurred (2019 - £NIL) .

11. Taxation

The Association is a registered charity and as such no charge for corporation tax or capital gains tax will arise on its operating activities (2019 - £NIL).

Page 22

RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

12. Tangible fixed assets

Cost or valuation At 1 September 2019 Additions At 31 August 2020 Depreciation At 1 September 2019 Charge for the year At 31 August 2020 Net book value At 31 August 2020 At 31 August 2019	Long-term leasehold property £ 910,773 - 910,773 738,316 36,432 774,748 136,025 172,457	Plant and machinery £ 228,851 - 228,851 161,022 13,560 174,582 54,269 67,829	Fixtures and fittings Building under construction £ £ 399,708 151,621 6,016 490,839 405,724 642,460 352,351 - 16,425 - 368,776 - 36,948 642,460 47,357 151,621	Total £ 1,690,953 496,855
				2,187,808
				1,251,689 66,417
				1,318,106
				869,702
				439,264

The Association's leasehold premises are held on a lease for 25 years from 30 May 2000 at a 'peppercorn rent' providing that the Association continues to operate there as a gymnastics club. If the Association should cease to operate, full market rental would be payable and for this reason, no value is placed on the Association's leasehold interest in these accounts. The original market value rental at the commencement of the lease was £20,000 per annum.

A supplementary lease was granted to the Association on 27 June 2007 to run concurrently with, and on the same terms as the original lease, to cover the additional land required for the Tumble Run extension. The notional rent is £1,000 per annum.

The leasehold buildings and the Tumble Run extension relate to costs incurred up to 31 August 2009. These have been capitalised and are being depreciated over the period of the Association's lease referred to above.

Building under construction relates to a new extension which was brought in to use after the year end. As a result, there was no depreciation charge as at 31 August 2020.

Page 23

RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

13. Debtors

Due within one year Other debtors Prepayments and accrued income	2020 £ 2,352 - 2,352	2019 £ - 3,028
		3,028

14. Creditors: Amounts falling due within one year

Trade creditors Other taxation and social security Other creditors Accruals and deferred income Deferred income at 1 September 2019 Resources deferred during the year Amounts released from previous periods	2020 £ 7,557 - 11,911 179,752 199,220 2020 £ 243,464 84,829 (243,464) 84,829	2019 £ 13,021 10,665 7,644 250,464
		281,794
		2019 £ 274,705 243,464 (274,705)
		243,464

Fees for classes are charged in advance. September class fees are invoiced and payment received from the start of July. This fees are associated with next year's income and therefore the amount is deferred.

Also included as deferred income is an amount for part of the Summer term 2020 fees that due to the first Covid-19 lockdown, were carried forward and set against the September 2020 class fees.

Page 24

RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

15. Statement of funds

Statement of funds - current year

Unrestricted funds Designated funds Maintenance and asset replacement reserve General funds General Funds Total Unrestricted funds Restricted funds Townmead Project The Jack Petchey Foundation Acro, tumbling and floor & vault fund Friends of Richmond Fund Buildings Fund GMPD Fund Total of funds	Balance at 1 September 2019 £ 611,767 1,971 613,738 172,457 6,214 (401) 14,860 74,806 342 268,278 882,016	Income £ - 1,073,004 1,073,004 - 2,250 1,373 - 100 - 3,723 1,076,727	Expenditure £ - (950,723) (950,723) (36,432) (582) (1,090) - (85,638) - (123,742) (1,074,465)	Transfers in/out £ 113,520 (124,252) (10,732) - - - - 10,732 - 10,732 -	Balance at 31 August 2020 £ 725,287 - 725,287 136,025 7,882 (118) 14,860 - 342 158,991 884,278

The Townmead Project funds represents the monies originally raised to build the Association's premises and to equip it. These funds are being written off over the life of the Association's lease on the Townmead Road premises.

The cost of the Tumble Run expenditure has been capitalised and is being amortised over the remaining life of the Association's lease, initially against the Tumble run restricted fund and the balance against the Asset Replacement reserve. The Tumble Run restricted fund was fully utilised by 31 August 2017.

A grant was received from the Jack Petchey Foundation for the cost of the BG funding for gymnasts.

The Buildings Fund was to raise funds for the new extension for the club. The balance of this fund at year end is £nil.

Page 25

RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

15. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds Designated funds Maintenance and asset replacement reserve General funds General Funds - all funds Total Unrestricted funds Restricted funds Townmead Project The Jack Petchey Foundation Acro, tumbling and floor & vault fund Friends of Richmond Fund Buildings Fund GMPD Fund Total of funds	Balance at 1 September 2018 £ 466,526 - 466,526 208,889 4,200 (143) 14,937 96,651 342 324,876 791,402	Income £ - 1,182,036 1,182,036 - 2,250 231 - 53,150 - 55,631 1,237,667	Expenditure £ - (1,034,824) (1,034,824) (36,432) (236) (489) (77) (74,995) - (112,229) (1,147,053)	Transfers in/out £ 145,241 (145,241) - - - - - - - - -	Balance at 31 August 2019 £ 611,767 1,971 613,738 172,457 6,214 (401) 14,860 74,806 342 268,278 882,016

Page 26

RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16. Summary of funds

Summary of funds - current year

Designated funds General funds Restricted funds	Balance at 1 September 2019 £ 611,767 1,971 268,278 882,016 Balance at 1 September 2018 £ 466,526 - 324,876 791,402	Income £ - 1,073,004 3,723 1,076,727 Income £ - 1,182,036 55,631 1,237,667	Expenditure £ - (950,723) (123,742) (1,074,465) Expenditure £ - (1,034,824) (112,229) (1,147,053)	Transfers in/out £ 113,520 (124,252) 10,732 - Transfers in/out £ 145,241 (145,241) - -	Balance at 31 August 2020 £ 725,287 - 158,991
					884,278
					Balance at 31 August 2019 £ 611,767 1,971 268,278
Summary of funds - prior year
Designated funds General funds Restricted funds
					882,016

17. Analysis of net assets between funds

Analysis of net assets between funds - current period

Tangible fixed assets Current assets Creditors due within one year Total	Restricted funds 2020 Unrestricted funds 2020 £ £ 136,025 733,677 22,966 190,831 - (199,221) 158,991 725,287	Total funds 2020 £ 869,702 213,797 (199,221)
		884,278

Page 27

RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

17. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior period

Tangible fixed assets Current assets Creditors due within one year Total	Restricted funds 2019 £ 247,263 21,015 - 268,278	Unrestricted funds 2019 £ 192,001 703,532 (281,796) 613,737	Total funds 2019 £ 439,264 724,547 (281,796) 882,015

18. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the period (as per Statement of Financial Activities) Adjustments for: Depreciation charges Decrease in debtors Decrease in creditors Net cash provided by/(used in) operating activities 19. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents	2020 £ 2,262 66,417 676 (82,574) (13,219) 2020 £ 211,445 211,445	2019 £ 90,614 67,131 40,740 (41,269) 157,216 2019 £ 721,519 721,519

Page 28

RICHMOND GYMNASTICS ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

20. Analysis of changes in net debt

Cash at bank and in hand	At 1 September 2019 £ 721,519 721,519	Cash flows At 31 August 2020 £ £ (510,074) 211,445 (510,074) 211,445	Cash flows At 31 August 2020 £ £ (510,074) 211,445 (510,074) 211,445
			211,445

21. Related party transactions

The Charity has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the Charity at 31 August 2020.

Page 29

Richmond Gymnastics Association

Year ended 31 August 2020 Audit Findings Report

Feltons Chartered Accountants

Contents

• Introduction

• Matters from our audit

• Systems and controls issues

• Matters from last year

• Reporting audit adjustments

• Representation letter

• External developments that may affect you

Feltons Chartered Accountants

1. Introduction

We have pleasure in submitting our Audit Findings Report setting out the key matters identified and discussed with the charity’s management and finance team during our audit of the financial statements of Richmond Gymnastics Association for the year ended 31 August 2019.

Financial statements

The Trustees are responsible for the preparation of the financial statements on a going concern basis unless this basis is inappropriate. The Trustees are also responsible for ensuring that the financial statements give a true and fair view, that the process your management go through to arrive at the necessary estimates or judgements is appropriate, and that any disclosure on going concern is clear, balanced and proportionate.

Matters from our audit

We are required by International Standards on Auditing (UK and Ireland) (“ISAs”) to communicate to you our views about any significant qualitative aspects of the accounting practices of Richmond Gymnastics Association, including accounting policies, accounting estimates and financial statement disclosures, as well as any difficulties encountered during the audit, the written representations we are requesting and any other matters which we believe are significant to your oversight of the financial reporting process.

We are also required to communicate to you matters arising during the audit in connection with the entity's related parties, matters involving non-compliance with laws and regulations that come to our attention during the course of the audit, and if we have identified or suspect fraud involving management, employees who have significant roles in internal control or others where the fraud results in a material misstatement in the financial statements.

All matters arising from our audit which we wish to bring to your attention are set out in the following sections of this report.

We have also provided separately a draft of the representation letter for the charity which we will be requesting from the Trustees when the financial statements are approved.

Audit procedures

We have been able to undertake our work as set out in our engagement letter dated 8 August 2011 addressed to the Trustees. No restrictions were placed on our audit.

Our audit procedures, which are designed primarily to enable us to form an opinion on your financial statements, were carried out in accordance with International Standards on Auditing (UK and Ireland) (“ISAs”).

Our work continues to combine substantive procedures involving direct verification of balances and transactions, including obtaining confirmations from third parties where we considered this to be necessary, with a review of certain of your financial systems and controls. We also considered as a part of our audit the overall neutrality, consistency and clarity of the disclosures in your financial statements.

Feltons Chartered Accountants

1. Introduction

We are able to report that no major issues came to our attention from our review of the operation of your relevant systems and controls. However, we have included further comments later in this report where we have identified potential improvements during our audit work. You should note that our evaluation of the systems of control at Richmond Gymnastics Association was carried out for the purposes of our audit only and accordingly it is not intended to be a comprehensive review of your business processes.

Independence and ethics

As we have previously reported, we are not aware of any relationships between Feltons and Richmond Gymnastics Association which would threaten the firm’s audit independence or the objectivity of the audit partner and audit staff. We have not identified any further issues with regard to our integrity, objectivity or independence since the date of our Audit Planning. We have prepared the financial statements of the charity but have provided you with details of any adjustments made.

Legal and regulatory requirements

In undertaking our audit work, we considered compliance with the following legal and regulatory requirements, where relevant.

• Charities Act 2011

• The Charities (Accounts and Reports) Regulations 2008

• 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)). See below for details of this accounting standard.

• Applicable accounting standards

Acknowledgements

We would like to express our appreciation for the assistance provided to us by the finance team and the other staff at the association during our audit.

Use of this report

This report has been prepared for the private use of the Trustees of Richmond Gymnastics Association and its contents should not be disclosed to third parties without our prior written consent. We assume no duty, responsibility or liability to any other person who has access to this report.

Feltons Chartered Accountants

2. Matters from our audit

Our audit processes include reviewing the accounting practices of Richmond Gymnastics Association and the disclosures made in the statutory financial statements and the annual report of the Trustees. Details of key issues from this review and from our other audit work and related discussions with the charity’s management have been recorded below.

Issues and implications

Management’s comments

2.1 Opening balances difference

The 2019 year-end adjusting journals were not correctly processed in Sage.

The adjustments were posted after the year end rollover in Sage and then backdated, resulting in a difference on the brought forward opening balances.

We suggest in future that any year end journals posted after Sage has been rolled over be posted to retained earnings, rather than the individual income and expenditure account codes.

2.2 Sage trial balance

A year end rollover on Sage was carried out before any year end reports had been taken, as a result, we were not provided with a full detailed trial balance as at 31 August 2020.

Based on additional information provided to us, we were able to recreate a full trial balance to include the income and expenditure balances. However because the 2019 adjusting journals were not posted correctly (see note 1) there was a brought forward retained earning difference.

2.3 Opening balance difference on Tangible Fixed Assets

Longley concrete costs of £9,649 were capitalised again in the year, even though they were capitalised last year.

This error occurred because of the problems with the posting of the 2019 year end adjusting journals (see note 1).

Feltons Chartered Accountants

2. Matters from our audit

Issues and implications

Management’s comments

2.4 Missing authorisations from purchase invoices

During our purchase audit testing we noted that some purchase invoices were not marked as authorised.

2.5 Covid-19 and Going concern

Given the current Covid-19 situation and the sever disruption and impact on the general economy over the last 20 months, this is an area of general concern.

The Trustees confirm that, having considered the expectations and intentions for the next 12 months and the availability of working capital, the Association is a going concern. We have asked for confirmation of this in the letter of representation.

2.6 New constitution

As noted in previous years, the Association is unincorporated. You may wish to consider incorporation and professional indemnity insurance.

2.7 Leasehold information – Old Trustee Members

We note that the signatories on the lease agreement are no longer trustees of Richmond Gymnastics Association [RGA]. We recommend that current members of RGA are put on the lease if possible.

.

Feltons Chartered Accountants

3. Systems and controls issues

We have set out below certain potential improvements to the charity’s processes and controls which we noted during our audit work and which we would like to bring to your attention.

Our evaluation of the systems of control at of Richmond Gymnastics Association was carried out for the purposes of our audit and accordingly it is not intended to be a comprehensive review of your business processes. It would not necessarily reveal all weaknesses in accounting practice or internal controls which a special investigation might highlight, nor irregularities or errors not material in relation to the financial statements.

Issues and implications

Management’s comments

No significant issues noted.

Feltons Chartered Accountants

4. Matters from previous year

We have set out below the issues on which we reported after our audit last year together with an update on how the points raised have been addressed.

Observations from 2019 and previous years

Update 2020

4.1 Pending CRB Checks

We note that there are still some employees with CRB Checks that are ‘pending.’ Per the website: https://www.personnelchecks.co.uk/videos/how-long-do-crb-checks-take/ it states that CRB checks can take anywhere between 24hours to 6 weeks. We recommend that you chase up on any CRB checks that remain outstanding.

4.2 Leasehold information – Old Trustee Members

We note that the signatories on the lease agreement are no longer trustees of Richmond Gymnastics Association [RGA]. We recommend that current members of RGA are put on the lease if possible.

Included in 2020

4.3 Capital Commitments at year-end regarding the new Build Project

Phase 1 Contractors were removed due to a disagreement on the build works. As a result, construction on completing Phase 1 was halted until new contractors were appointed after the yearend. No going concern difficulties noted.

Dealt with during the year

Phase 2 & 3 so will only start after the successful completion of phase 1 and adequate resources have been raised.

4.4 Deferred Income

We noted that some of the June receipts included within deferred income related to term 3 and therefore should have been included as income in the accounts, rather than as deferred income at the year-end. The accounts have now been adjusted for this.

Dealt with during the year

Feltons Chartered Accountants

4. Matters from previous year

Observations from 2019 and previous years

Update 2020

4.5 Missing authorisations from purchase invoices

We noted from our purchases testing that some purchase invoices were not marked as authorised.

Included in 2020

4.6 New constitution

RGA is currently unincorporated. May want to consider incorporation and professional indemnity insurance.

Included to 2020

4.7 Payroll

We noted several small discrepancies within the payroll function. These included differences between timesheets and wages bank payments in comparison to the payroll figures.

4.8 On-line payments

We note that online payments of up to £25,000 may be made by a single person but understand that this limit is necessary due to the high nature of certain payments during the year. We suggest that any such large payments are authorised by a second trustee in advance. Previous years comments:

No action taken. RGA remain happy with the arrangement.

4.9 Late payment of National insurance and PAYE for July’18

We note that the payment for July 2018 was made in September 2018 and was therefore late. We recommend that all payments owing to HM Revenue & Customs are paid on time and in full to avoid late payment interest, penalties and charges.

Dealt with in previous years

Feltons Chartered Accountants

4. Matters from previous year

Observations from 2019 and previous years

Update 2020

4.10 Capital Commitments

We have asked the Trustees to confirm that there were no major costs contracted for at the year-end.

4.11 Related Party transactions

a) FRS102 requires disclosure of transactions with related parties and the definition of related parties includes close family. The actual amounts paid relating to salaries paid to the family members should be disclosed in the accounts, however the total amount has not been disclosed in prior years and instead, note 20 has stated that:

“Some of the Trustees have immediate family members working for the Association as employees, but their positions are not considered to have any influence on the way the Association is managed”.

The attached letter of representation asks the Trustees to confirm that this is still the case and that the relevant Trustees do not participate in decisions relating to the employment and agreement of the salaries of their family members.

We recommend that any conflicts of interest are recorded in the minutes and that the Trustees concerned do not take any part in the discussions and decisions regarding the terms and conditions of the family members' employment. Charity Commission authority is only required if there is a potential financial dependency between a trustee and connected person.

Feltons Chartered Accountants

4. Matters from previous year

Observations from 2019 and previous years

Update 2020

4.12 Self-employed coaches

We note that again during the audit that there are self-employed coaches in the year and understand that checks have been made and that as the individuals are classified as elite sportspeople, they are not treated as employed. We recommend that checks continue to be made yearly to ensure that the individuals cannot be considered as employed by RGA.

4.13 Maintenance and asset replacement reserve

This is an unrestricted designated reserve and we understand that it was set up some time ago but that there are few details as to what it relates.

In prior years, it was agreed to keep the fund under review.

Currently, as in previous years, a transfer from the general reserve to this reserve has been made to bring the general reserve to zero.

We recommend that the Trustees decide (and minute) the level at which to maintain the maintenance and asset replacement reserve.

Previous years comments:

The Trustees have confirmed that the general fund should be maintained at zero with any surplus / deficit being shown as a movement on the maintenance and asset replacement reserve.

Feltons Chartered Accountants

5. Reporting audit adjustments

International Standards on Auditing (UK and Ireland) require that we report to you all misstatements which we identified as a result of the audit process and which were not adjusted, unless those matters are clearly trivial in size or nature. “Trivial” is deemed to be £1,500.

Our audit approach is based on consideration of audit materiality. We determine materiality for the purposes of the charity’s statutory reporting by our judgement as to what adjustments would influence the readers’ perceptions of the financial statements. We do not therefore seek to review all immaterial amounts.

We seek to assist you in your responsibilities for governance and the systems of internal controls by reporting to you those matters which we encountered during the audit and which have been corrected or adjusted in the financial statements. These matters are listed below:

Feltons Chartered Accountants

Agreed adjustments

Net position per financial statements at start of audit Prior year adjustments to agree brought forward retained reserves balance Buildings Fund adjustment for prior year posting Total adjustments Net results / funds per financial statements presented to the Trustees	Net income increase /(decrease) £ 115,754 (103,843) (9,649) (113,492) 2,262	Assets increase /(decrease) £ (9,649) (9,649)	Liabilities increase /(decrease) £

Feltons Chartered Accountants

Unadjusted errors or differences

Net position per financial statements at start of audit Class refunds given post year end Depreciation recalculation during testing Deferred fees difference Pension liability difference Total adjustments Net results / funds per financial statements presented to the Trustees	Net income increase /(decrease) £ 2,262 (6,026) (2,573) 4,205 3,151 (1,243) 1,019	Assets increase /(decrease) £ (2,573) (2,573)	Liabilities increase /(decrease) £
			6,026 (4,205) (3,151) (1,330)

We have listed above the misstatements identified. As discussed you consider the effect of the adjustments to be immaterial, therefore we shall need written representation from you to that effect.

Feltons Chartered Accountants

6. Representation letter

SEE SEPARATE SCHEDULE

Feltons Chartered Accountants

7. External developments that may affect you

We have summarised below the recent changes in the Charity sector and other developments which we believe may be of interest and relevant to you. Please note that this information is provided as a summary only and that you should seek further advice if you believe that you have any specific related issues or intend to take or not take action based on any of the comments below.

7.1 DATA PROTECTION REFORM

On 25[th] May 2018 the Data Protection Act (DPA) changed to the General DATA Protection Regulation (GDPR). There were 12 key steps set out by the Information Commissioner’s Office (ICO) to prepare for the change:

• 1) Awareness – Decision makers and key personnel should be made aware the law is changing to GDPR and the impact it is likely to have.

• 2) Information you hold – Document what personal data you hold, where it came from and who you share it with. An information audit may be useful in helping to

• organise this.

• 3) Communicating privacy information – Review current privacy notices and plan any necessary changes in time for GDPR.

• 4) Individual rights – Ensure current procedures cover all the rights an individual has, including how you would delete personal data or provide data electronically.

• 5) Subject access requests – update procedures and plan how to handle requests within the new timescales and provide additional information.

• 6) Lawful basis for processing personal data – Identify the lawful basis for your processing activity in the GDPR, document it and update privacy notice to explain it.

• 7) Consent – Review how you seek, record and manage consent and whether any changes need to be made. Refresh existing consents now if they don’t meet GDPR standard.

• 8) Children – Consider whether you need a system to verify individuals ages and obtain parental or guardian consent for any data processing activity.

• 9) Data breaches – Ensure you have the right procedures in place to detect, report and investigate personal data breach.

• 10) Data protection by design and date protection impact assessments – Familiarise yourself with the ICO’s code of practice on Privacy Impact Assessments as well as the latest guidance from the Article 29 Working Party and work out how and when to implement them in your organisation.

• 11) Data protection officers – Designate someone to take responsibility for data protection compliance and assess where this role will sit within your organisation’s structure and governance arrangements. Consider whether you are required to formally designate a Data Protection Officer.

• 12) International – This would not apply to Richmond Gymnastics Association.

The above information, along with further detail can be found on www.ico.org.uk

Feltons Chartered Accountants

7. External developments that may affect you

7.2 NEW CHARITY GOVERNANCE CODE

New Charity Governance Code was published on 13 July 2017, the same time the Charity Commission withdrew its publication CC10. The code lays out the principles for seven key areas of governance, together with recommended practice for each principle. The principles are as follows:

• 1) Organisation purpose – The board needs to be clear about the charity’s aims and ensures that these are being delivered effectively and sustainably.

• 2) Leadership – Every charity is led by an effective board that provides strategic leadership in line with the charity’s aims and values.

• 3) Integrity – The board acts with integrity, adopting values and creating a culture which help to achieve the organisation’s charitable purposes. The board is aware of the importance of the public’s confidence and trust in charities, and trustees undertake their duties accordingly.

• 4) Decision making, risk and control - The board makes sure that its decision-making processes are informed, rigorous and timely and that effective delegation, control and risk assessment and management systems are set up and monitored.

• 5) Board effectiveness - The board works as an effective team, using the appropriate balance of skills, experience, backgrounds and knowledge to make informed decisions.

• 6) Diversity - The board’s approach to diversity supports its effectiveness, leadership and decision-making.

• 7) Openness and accountability - The board leads the organisation in being transparent and accountable. The charity is open in its work, unless there is good reason for it not to be.

The above information was taken from www.charitygovernancecode.org/en/about-the-code1/using-the-code

Richmond Gymnastics Association

Year ended 31 August 2020 Audit Findings Report

Feltons Chartered Accountants

Contents

• Introduction

• Matters from our audit

• Systems and controls issues

• Matters from last year

• Reporting audit adjustments

• Representation letter

• External developments that may affect you

Feltons Chartered Accountants

1. Introduction

We have pleasure in submitting our Audit Findings Report setting out the key matters identified and discussed with the charity’s management and finance team during our audit of the financial statements of Richmond Gymnastics Association for the year ended 31 August 2019.

Financial statements

The Trustees are responsible for the preparation of the financial statements on a going concern basis unless this basis is inappropriate. The Trustees are also responsible for ensuring that the financial statements give a true and fair view, that the process your management go through to arrive at the necessary estimates or judgements is appropriate, and that any disclosure on going concern is clear, balanced and proportionate.

Matters from our audit

We are required by International Standards on Auditing (UK and Ireland) (“ISAs”) to communicate to you our views about any significant qualitative aspects of the accounting practices of Richmond Gymnastics Association, including accounting policies, accounting estimates and financial statement disclosures, as well as any difficulties encountered during the audit, the written representations we are requesting and any other matters which we believe are significant to your oversight of the financial reporting process.

We are also required to communicate to you matters arising during the audit in connection with the entity's related parties, matters involving non-compliance with laws and regulations that come to our attention during the course of the audit, and if we have identified or suspect fraud involving management, employees who have significant roles in internal control or others where the fraud results in a material misstatement in the financial statements.

All matters arising from our audit which we wish to bring to your attention are set out in the following sections of this report.

We have also provided separately a draft of the representation letter for the charity which we will be requesting from the Trustees when the financial statements are approved.

Audit procedures

We have been able to undertake our work as set out in our engagement letter dated 8 August 2011 addressed to the Trustees. No restrictions were placed on our audit.

Our audit procedures, which are designed primarily to enable us to form an opinion on your financial statements, were carried out in accordance with International Standards on Auditing (UK and Ireland) (“ISAs”).

Our work continues to combine substantive procedures involving direct verification of balances and transactions, including obtaining confirmations from third parties where we considered this to be necessary, with a review of certain of your financial systems and controls. We also considered as a part of our audit the overall neutrality, consistency and clarity of the disclosures in your financial statements.

Feltons Chartered Accountants

1. Introduction

We are able to report that no major issues came to our attention from our review of the operation of your relevant systems and controls. However, we have included further comments later in this report where we have identified potential improvements during our audit work. You should note that our evaluation of the systems of control at Richmond Gymnastics Association was carried out for the purposes of our audit only and accordingly it is not intended to be a comprehensive review of your business processes.

Independence and ethics

As we have previously reported, we are not aware of any relationships between Feltons and Richmond Gymnastics Association which would threaten the firm’s audit independence or the objectivity of the audit partner and audit staff. We have not identified any further issues with regard to our integrity, objectivity or independence since the date of our Audit Planning. We have prepared the financial statements of the charity but have provided you with details of any adjustments made.

Legal and regulatory requirements

In undertaking our audit work, we considered compliance with the following legal and regulatory requirements, where relevant.

• Charities Act 2011

• The Charities (Accounts and Reports) Regulations 2008

• 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)). See below for details of this accounting standard.

• Applicable accounting standards

Acknowledgements

We would like to express our appreciation for the assistance provided to us by the finance team and the other staff at the association during our audit.

Use of this report

This report has been prepared for the private use of the Trustees of Richmond Gymnastics Association and its contents should not be disclosed to third parties without our prior written consent. We assume no duty, responsibility or liability to any other person who has access to this report.

Feltons Chartered Accountants

2. Matters from our audit

Our audit processes include reviewing the accounting practices of Richmond Gymnastics Association and the disclosures made in the statutory financial statements and the annual report of the Trustees. Details of key issues from this review and from our other audit work and related discussions with the charity’s management have been recorded below.

Issues and implications

Management’s comments

2.1 Opening balances difference

The 2019 year-end adjusting journals were not correctly processed in Sage.

The adjustments were posted after the year end rollover in Sage and then backdated, resulting in a difference on the brought forward opening balances.

We suggest in future that any year end journals posted after Sage has been rolled over be posted to retained earnings, rather than the individual income and expenditure account codes.

2.2 Sage trial balance

A year end rollover on Sage was carried out before any year end reports had been taken, as a result, we were not provided with a full detailed trial balance as at 31 August 2020.

Based on additional information provided to us, we were able to recreate a full trial balance to include the income and expenditure balances. However because the 2019 adjusting journals were not posted correctly (see note 1) there was a brought forward retained earning difference.

2.3 Opening balance difference on Tangible Fixed Assets

Longley concrete costs of £9,649 were capitalised again in the year, even though they were capitalised last year.

This error occurred because of the problems with the posting of the 2019 year end adjusting journals (see note 1).

Feltons Chartered Accountants

2. Matters from our audit

Issues and implications

Management’s comments

2.4 Missing authorisations from purchase invoices

During our purchase audit testing we noted that some purchase invoices were not marked as authorised.

2.5 Covid-19 and Going concern

Given the current Covid-19 situation and the sever disruption and impact on the general economy over the last 20 months, this is an area of general concern.

The Trustees confirm that, having considered the expectations and intentions for the next 12 months and the availability of working capital, the Association is a going concern. We have asked for confirmation of this in the letter of representation.

2.6 New constitution

As noted in previous years, the Association is unincorporated. You may wish to consider incorporation and professional indemnity insurance.

2.7 Leasehold information – Old Trustee Members

We note that the signatories on the lease agreement are no longer trustees of Richmond Gymnastics Association [RGA]. We recommend that current members of RGA are put on the lease if possible.

.

Feltons Chartered Accountants

3. Systems and controls issues

We have set out below certain potential improvements to the charity’s processes and controls which we noted during our audit work and which we would like to bring to your attention.

Our evaluation of the systems of control at of Richmond Gymnastics Association was carried out for the purposes of our audit and accordingly it is not intended to be a comprehensive review of your business processes. It would not necessarily reveal all weaknesses in accounting practice or internal controls which a special investigation might highlight, nor irregularities or errors not material in relation to the financial statements.

Issues and implications

Management’s comments

No significant issues noted.

Feltons Chartered Accountants

4. Matters from previous year

We have set out below the issues on which we reported after our audit last year together with an update on how the points raised have been addressed.

Observations from 2019 and previous years

Update 2020

4.1 Pending CRB Checks

We note that there are still some employees with CRB Checks that are ‘pending.’ Per the website: https://www.personnelchecks.co.uk/videos/how-long-do-crb-checks-take/ it states that CRB checks can take anywhere between 24hours to 6 weeks. We recommend that you chase up on any CRB checks that remain outstanding.

4.2 Leasehold information – Old Trustee Members

We note that the signatories on the lease agreement are no longer trustees of Richmond Gymnastics Association [RGA]. We recommend that current members of RGA are put on the lease if possible.

Included in 2020

4.3 Capital Commitments at year-end regarding the new Build Project

Phase 1 Contractors were removed due to a disagreement on the build works. As a result, construction on completing Phase 1 was halted until new contractors were appointed after the yearend. No going concern difficulties noted.

Dealt with during the year

Phase 2 & 3 so will only start after the successful completion of phase 1 and adequate resources have been raised.

4.4 Deferred Income

We noted that some of the June receipts included within deferred income related to term 3 and therefore should have been included as income in the accounts, rather than as deferred income at the year-end. The accounts have now been adjusted for this.

Dealt with during the year

Feltons Chartered Accountants

4. Matters from previous year

Observations from 2019 and previous years

Update 2020

4.5 Missing authorisations from purchase invoices

We noted from our purchases testing that some purchase invoices were not marked as authorised.

Included in 2020

4.6 New constitution

RGA is currently unincorporated. May want to consider incorporation and professional indemnity insurance.

Included to 2020

4.7 Payroll

We noted several small discrepancies within the payroll function. These included differences between timesheets and wages bank payments in comparison to the payroll figures.

4.8 On-line payments

We note that online payments of up to £25,000 may be made by a single person but understand that this limit is necessary due to the high nature of certain payments during the year. We suggest that any such large payments are authorised by a second trustee in advance. Previous years comments:

No action taken. RGA remain happy with the arrangement.

4.9 Late payment of National insurance and PAYE for July’18

We note that the payment for July 2018 was made in September 2018 and was therefore late. We recommend that all payments owing to HM Revenue & Customs are paid on time and in full to avoid late payment interest, penalties and charges.

Dealt with in previous years

Feltons Chartered Accountants

4. Matters from previous year

Observations from 2019 and previous years

Update 2020

4.10 Capital Commitments

We have asked the Trustees to confirm that there were no major costs contracted for at the year-end.

4.11 Related Party transactions

a) FRS102 requires disclosure of transactions with related parties and the definition of related parties includes close family. The actual amounts paid relating to salaries paid to the family members should be disclosed in the accounts, however the total amount has not been disclosed in prior years and instead, note 20 has stated that:

“Some of the Trustees have immediate family members working for the Association as employees, but their positions are not considered to have any influence on the way the Association is managed”.

The attached letter of representation asks the Trustees to confirm that this is still the case and that the relevant Trustees do not participate in decisions relating to the employment and agreement of the salaries of their family members.

We recommend that any conflicts of interest are recorded in the minutes and that the Trustees concerned do not take any part in the discussions and decisions regarding the terms and conditions of the family members' employment. Charity Commission authority is only required if there is a potential financial dependency between a trustee and connected person.

Feltons Chartered Accountants

4. Matters from previous year

Observations from 2019 and previous years

Update 2020

4.12 Self-employed coaches

We note that again during the audit that there are self-employed coaches in the year and understand that checks have been made and that as the individuals are classified as elite sportspeople, they are not treated as employed. We recommend that checks continue to be made yearly to ensure that the individuals cannot be considered as employed by RGA.

4.13 Maintenance and asset replacement reserve

This is an unrestricted designated reserve and we understand that it was set up some time ago but that there are few details as to what it relates.

In prior years, it was agreed to keep the fund under review.

Currently, as in previous years, a transfer from the general reserve to this reserve has been made to bring the general reserve to zero.

We recommend that the Trustees decide (and minute) the level at which to maintain the maintenance and asset replacement reserve.

Previous years comments:

The Trustees have confirmed that the general fund should be maintained at zero with any surplus / deficit being shown as a movement on the maintenance and asset replacement reserve.

Feltons Chartered Accountants

5. Reporting audit adjustments

International Standards on Auditing (UK and Ireland) require that we report to you all misstatements which we identified as a result of the audit process and which were not adjusted, unless those matters are clearly trivial in size or nature. “Trivial” is deemed to be £1,500.

Our audit approach is based on consideration of audit materiality. We determine materiality for the purposes of the charity’s statutory reporting by our judgement as to what adjustments would influence the readers’ perceptions of the financial statements. We do not therefore seek to review all immaterial amounts.

We seek to assist you in your responsibilities for governance and the systems of internal controls by reporting to you those matters which we encountered during the audit and which have been corrected or adjusted in the financial statements. These matters are listed below:

Feltons Chartered Accountants

Agreed adjustments

Net position per financial statements at start of audit Prior year adjustments to agree brought forward retained reserves balance Buildings Fund adjustment for prior year posting Total adjustments Net results / funds per financial statements presented to the Trustees	Net income increase /(decrease) £ 115,754 (103,843) (9,649) (113,492) 2,262	Assets increase /(decrease) £ (9,649) (9,649)	Liabilities increase /(decrease) £

Feltons Chartered Accountants

Unadjusted errors or differences

Net position per financial statements at start of audit Class refunds given post year end Depreciation recalculation during testing Deferred fees difference Pension liability difference Total adjustments Net results / funds per financial statements presented to the Trustees	Net income increase /(decrease) £ 2,262 (6,026) (2,573) 4,205 3,151 (1,243) 1,019	Assets increase /(decrease) £ (2,573) (2,573)	Liabilities increase /(decrease) £
			6,026 (4,205) (3,151) (1,330)

We have listed above the misstatements identified. As discussed you consider the effect of the adjustments to be immaterial, therefore we shall need written representation from you to that effect.

Feltons Chartered Accountants

6. Representation letter

SEE SEPARATE SCHEDULE

Feltons Chartered Accountants

7. External developments that may affect you

We have summarised below the recent changes in the Charity sector and other developments which we believe may be of interest and relevant to you. Please note that this information is provided as a summary only and that you should seek further advice if you believe that you have any specific related issues or intend to take or not take action based on any of the comments below.

7.1 DATA PROTECTION REFORM

On 25[th] May 2018 the Data Protection Act (DPA) changed to the General DATA Protection Regulation (GDPR). There were 12 key steps set out by the Information Commissioner’s Office (ICO) to prepare for the change:

• 1) Awareness – Decision makers and key personnel should be made aware the law is changing to GDPR and the impact it is likely to have.

• 2) Information you hold – Document what personal data you hold, where it came from and who you share it with. An information audit may be useful in helping to

• organise this.

• 3) Communicating privacy information – Review current privacy notices and plan any necessary changes in time for GDPR.

• 4) Individual rights – Ensure current procedures cover all the rights an individual has, including how you would delete personal data or provide data electronically.

• 5) Subject access requests – update procedures and plan how to handle requests within the new timescales and provide additional information.

• 6) Lawful basis for processing personal data – Identify the lawful basis for your processing activity in the GDPR, document it and update privacy notice to explain it.

• 7) Consent – Review how you seek, record and manage consent and whether any changes need to be made. Refresh existing consents now if they don’t meet GDPR standard.

• 8) Children – Consider whether you need a system to verify individuals ages and obtain parental or guardian consent for any data processing activity.

• 9) Data breaches – Ensure you have the right procedures in place to detect, report and investigate personal data breach.

• 10) Data protection by design and date protection impact assessments – Familiarise yourself with the ICO’s code of practice on Privacy Impact Assessments as well as the latest guidance from the Article 29 Working Party and work out how and when to implement them in your organisation.

• 11) Data protection officers – Designate someone to take responsibility for data protection compliance and assess where this role will sit within your organisation’s structure and governance arrangements. Consider whether you are required to formally designate a Data Protection Officer.

• 12) International – This would not apply to Richmond Gymnastics Association.

The above information, along with further detail can be found on www.ico.org.uk

Feltons Chartered Accountants

7. External developments that may affect you

7.2 NEW CHARITY GOVERNANCE CODE

New Charity Governance Code was published on 13 July 2017, the same time the Charity Commission withdrew its publication CC10. The code lays out the principles for seven key areas of governance, together with recommended practice for each principle. The principles are as follows:

• 1) Organisation purpose – The board needs to be clear about the charity’s aims and ensures that these are being delivered effectively and sustainably.

• 2) Leadership – Every charity is led by an effective board that provides strategic leadership in line with the charity’s aims and values.

• 3) Integrity – The board acts with integrity, adopting values and creating a culture which help to achieve the organisation’s charitable purposes. The board is aware of the importance of the public’s confidence and trust in charities, and trustees undertake their duties accordingly.

• 4) Decision making, risk and control - The board makes sure that its decision-making processes are informed, rigorous and timely and that effective delegation, control and risk assessment and management systems are set up and monitored.

• 5) Board effectiveness - The board works as an effective team, using the appropriate balance of skills, experience, backgrounds and knowledge to make informed decisions.

• 6) Diversity - The board’s approach to diversity supports its effectiveness, leadership and decision-making.

• 7) Openness and accountability - The board leads the organisation in being transparent and accountable. The charity is open in its work, unless there is good reason for it not to be.

The above information was taken from www.charitygovernancecode.org/en/about-the-code1/using-the-code