## We Are Martial Arts Trustees’ Annual Report and Financial Statements For year ended 30 April 2023 We Are Martial Arts (WAMA) is a Scottish Chariable Incorporated Organisation (SCIO), regulated by the Scottish Charity Regulator (OSCR), Scottish Charity Number: SC048286 We Are Martial Arts ## **Contents** Trustees’ Annual Report ......................................... 2 – 6 Independent Examiner’s Report ............................. 7 Receipts & Payments Financial Statements. ........... 8 Statement of Balances ............................................ 9 Notes to the financial statements ........................... 10 – 13 Trustees’ Report For the year ended 30 April 2023 We Are Martial Arts ## **This Report** In this report, the trustees present their annual report together with financial statements for the year ended 30 April 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). ## **Reference and Administrative Information** **Charity name** We Are Martial Arts **Charity alternative name** WAMA **Charity number** SC048286 **Date of registration** 11 April 2018 **Registered address We Are Martial Arts Website** www.wama.org.uk **Facebook** https://www.facebook.com/wamauk/ **The following served as charity trustees during the year and up to the date of this report:** 2 Trustees’ Report For the year ended 30 April 2023 We Are Martial Arts ## **Structure, Governance and Management** ## **Constitution** We Are Martials Arts (WAMA) is a Scottish Incorporated Charitable Organisation (SCIO) registered on 11 April 2018 and is governed by its written constitution. From 30 April 2020 until 21 February 2021, it had a two-tier structure, with a board of trustees and a body of members. From 22 February 2021, the board of trustees unanimously voted to change WAMA’s structure to a single-tier SCIO with a revised constitution. ## **Appointment of trustees (and membership)** Trustees are elected at the annual general meeting by the board (and any additional members for when WAMA had a two-tier structure). Trusteeship is open to all who can significantly help advance WAMA’s charitable purposes. Candidate trustees are reviewed by the board of trustees for eligibility before being put forward for election. The charity must have a minimum of three trustees, and no more than ten. ## **Charitable purposes, activities and achievements** ## **Charitable purposes** The charity’s purposes are: - (a) The advancement of public participation in sport - (b) The provision of recreational facilities, or the organization of recreational activities with the object of improving the conditions of life for the persons for whom the facilities or activities are primarily intended WAMA exists to improve the physical and mental wellbeing of local communities through martial arts, and sports by providing: - (1) a programme of relevant activities; and - (2) the facilities to carry out such activities. Through lowering the barriers to participation, WAMA aims to help all members of the local community but especially those from underrepresented groups such as: girls, women, those in low income situations, BAME communities and the elderly. WAMA’s long term goals include establishing programmes of activities tailored to serve local communities and improve their wellbeing through the many benefits of martial arts. 3 Trustees’ Report For the year ended 30 April 2023 We Are Martial Arts ## **Activities and achievements** WAMA remains a community-oriented martial arts hub, encouraging children and adults from all walks of life to improve their wellbeing through the practice of martial arts, sports, and fitness-related activities. WAMA has continued to support the local community through its activities, and this has been a steady year for the charity. WAMA’s blue sky aim remains to make martial arts and sports activities affordable for all. ## **Financial review** WAMA’s main source of income is typically class fees, ranging from “pay as you go” options to monthly memberships for kids, youth, adults and concessions for students. At the discretion of the charity’s board, these fees are waived for the unemployed and for those in exceptional financial hardship. This year however, funding was WAMA’s main source of income. With a total income of **£22,872 (2022: £23,035)** , **94% (£21,472)** was from class fees and **6% (£1,400)** from funding. WAMA’s long-term goal remains to substantially reduce class fees, with the ultimate “blue sky” goal of eliminating fees altogether. This is only possible with increased funding support. WAMA hopes to obtain further funding in the coming year to continue reducing class fees. The charity’s main costs this year come from fulfilling its charitable purposes, namely: (1) providing a programme of activities (coach hire) and (2) the facilities in which to host them (premises rent and operation costs). Additionally, the gym space has required some improvement. The total cost of charitable activities has reduced compared to last year at **£35,785 (2022: £40,804)** . The charity’s governance costs at **£250** are negligible in comparison, resulting in a total expenditure of **£36,035 (2022: £41,449)** for this year **.** ## **Reserves policy** The trustees’ policy is to maintain unrestricted funds (i.e., funds not committed or invested in fixed assets) at a level that equates to a minimum of **£1,500** . This has decreased from previous years due to the lack of funding received this year and equates to enough to cover one month’s worth of operational costs. The charity’s unrestricted reserves as of 30 April 2023 totalled **£5,110 (2022: £18,273)** , which is **above** the required level that is considered acceptable by the board of trustees. 4 Trustees’ Report For the year ended 30 April 2023 We Are Martial Arts ## **Future plans** Despite being a small charity, WAMA’s ambitions remain big. We will continue to work towards our “blue sky” goals of improving the wellbeing of local communities through accessible martial arts and sports activities, and of providing community-oriented facilities in which to host these activities. WAMA’s plans for the coming year remain much the same as previous years, and include, but are not limited to: - Continue engaging with local community groups, schools, youth groups and similar - Extend and expand programme of activities - Apply for funding to, for example, reduce class fees and provide equipment and travel bursaries - Find ways to reduce the operational costs of charitable activities - Create programmes of activities tailored to help reduce the barrier of participation from underrepresented groups - Promote the benefits of engaging in martial arts, sports and related activities. 5 Trustees’ Report For the year ended 30 April 2023 We Are Martial Arts ## **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 Scotland 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 the incoming resources and application of resources of the charity for that year. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. This report was approved by the trustees on 15 July 2024 and signed on their behalf by: Chair 2 We Are Martial Arts ## **Independent Examiner’s Report to the Trustees of We Are Martial Arts SCIO** I report on the financial statements of the charity for the year ended 30 April 2023, which are set out on pages eight to thirteen. ## **Respective responsibilities of trustees and examiner** The charity’s trustees are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The charity's trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention. ## **Basis of Independent Examiner’s statement** My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements. ## **Independent Examiner’s statement** In connection with my examination, no matter has come to my attention: - (a) which gives me reasonable cause to believe that in any material respect the requirements: - (i) to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and - (ii) to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations; - have not been met or - (b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached. Thomson Cooper 3 Castle Court Carnegie Campus Dunfermline Fife KY11 8PB Dated: 15 July 2024 7 We Are Martial Arts Receipts and Payments Account for the year ended 30 April 2023 Unrestricted furK15 Year endin8 Year endin8 30 April 2023 30 April 2022 Receipts Funding grants and donations 2,100 Charitable activities- class fees and external events 21.472 20,935 Rental Income Governance operations- bank rewards, etc. Total receipts 22.872 23,035 Payments 35,785 Cost of charitable activities Governance costs 250 645 Total payments 36.035 41.449 Surplus/{Deficit) for the year 113.163} (18,414) We Are Martial Arts Statement of Balances as of 30 April 2023 BANK AND CASH IN HAND Unrestricted funds Unrestricted funds 2023 2022 Opening balances Surplus / Ideficitl for the year 18.273 113,163) 36.687 118,4141 Closing cash at bank and in hand 5,110 18,273 The notes on pages 10-13 form an integral part of these accounts. Approved by the trustees on 15 July 2024 and Signed on their behalf by Chair We Are Martial Arts ## **Notes to the financial statements for the year ended 30 April 2023** ## **1. Accounting policies** ## **Charity information** We Are Martial Arts SCIO is a Scottish Charitable Incorporated Organisation. ## **1.1 Basis of accounting** These accounts have been prepared on the Receipts and Payments basis in accordance with the Charities & Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). ## **1.2 Nature and purpose of funds** Unrestricted funds are those that may be used at the discretion of the trustees in furtherance of the objects of the charity. The trustees maintain a single unrestricted fund for the day-to-day running of the club. This is currently the only type of fund held by the charity. ## **1.3 Grants and donations** WAMA received several Small Business Relief funding grants from Falkirk Council. WAMA did not receive any donations or gifts this year. ## **1.4 Charitable activities income** ## Class Fees We charge the public fees for participating in classes and activities in WAMA's Community Martial Arts Hub. This is so the charity has a minimal baseline income to become operational and remain operational whilst we become further established and receive funding support. Class fee options range from "pay as you go", to monthly memberships, for kids (6 - 11 years), youth (12 - 17 years), adult (18 + years) and concessions (students). We also offer free classes for the unemployed and those in exceptionally difficult financial situations. We also offer beginner courses, paid for in cash or by direct debit. Very occasionally we have had to refund course fees due to cancellations, and a few memberships that were erroneously charged twice. Thanks to the relief funds WAMA received this year, it was possible to maintain the reduced monthly membership prices. Class fees are very affordable for the number of classes available e.g. 1 adult or kids’ class costs less than £1. 10 We Are Martial Arts ## Cash fee payments We accept cash payments for "pay as you go" memberships. Though rare, we also accept cash monthly payments. All cash transactions are recorded. ## Direct debit fee payments Monthly memberships are paid for by direct debit and processed by GoCardless. This incurs a fee of 1% per payment or £0.2, whichever is the greater. GoCardless became legally required to charge VAT on its fees from September 2020. WAMA became exempt from paying VAT on GoCardless fees from October 2020. ## **1.5 Charitable activities expenditure** ## Rent and Non-Domestic rates WAMA's Community Martial Arts Hub is in a very good location for being accessible to communities within and outwith Falkirk. One of WAMA's largest monthly costs is rent for the Community Hub premises. ## Class management system costs We use a discounted club management software system to manage class memberships. ## Equipment and daily running costs We purchased additional training equipment to prepare use of WAMA's Community Hub premises for post-lockdown Covid-19 measures. We also ordered wipeable canvas floor and wall coverings from Rebel Canvas, to further ensure safe use of the premises after the first lockdown. ## Audit and accountancy and bank costs Audit and accountancy costs come from hiring an Independent Examiner to audit and assess WAMA's annual report and accounts. ## Coach fees and expenses WAMA does not employ any staff. We hire a freelance Head Coach and, if needed, any additional specialist coaches to inform and support our programme of activities. Our Head Coach is responsible for overseeing the daily activities of the Community Hub. Their expertise and knowledge inform the types of activities WAMA undertakes. For the many hours our Head Coach works for WAMA, they also volunteer to work many hours for free, to help support the charity and all its activities. All other coaches and assistant coaches are volunteers and as such do not get paid. ## **1.6 Governance costs** The charity has minimal governance costs. To date, these are: an annual fee to maintain a registered address and independent examination fees. 11 We Are Martial Arts 1.7 Taxation The charity is not liable to income tax or capital gains tax on its charitable activities. The charity is not VAT registered, and any expenditure includes any VAT charged. Grants and donations Unrestricted funds 2023 Unrestricted funds 2022 2,100 Funding grants Non-gift aid donations Total income from grants and donations 2,100 Charitable artivities Unrestricted funds 2023 Unrestricted funds 2022 22,131 254 11,4501 20,935 Class fees direct debit Class fees cash Class fee refunds 20,660 1.142 13301 21,472 Total income from charitable activities Charitable activities Unrestricted funds Unrestricted funds 2022 2023 Coach fees 18,640 16.550 696 Cla55 management 5y5tem Go Cardless fees 369 307 Equipment Total charitable activities costs 145 4,554 22,107 19.934 12 We Are Martial Arts Support and governance costs Support costs Governance Unrestricted funds 2022 costs Community hub rent Premises costs Operational costs Media and publicity Bank charges Insurance 13.080 13,080 1.764 1.764 127 127 Independent Examination Registered address fees Totsl support and governance costs 250 250 15,852 250 16,102 Forthe year ended 30 April 2022: Support costs Governance costs Unrestrirted funds 2021 Community hub rent Premise5 costs Operational costs Media and publicity Bank charges Insurance Independent Examination Registered address fees Total support and governance costs 12.0(Xi 2,327 3,526 12,000 2,327 3,526 48 178 618 250 178 618 250 395 395 18,697 645 19,342 All support costs are all¢xated on a direct basis. Transartions with trustees or connerted persons No charrty trustee or person connected with a charity trustee received remuneration during the year. No charity trustee received expenses during the year. Employees The charity had no employees during the year (2022: none). 13