4Motion Darlington - Charities report - 20.2

REGISTERED COMPANY NUMBER: 08504871 (England and Wales)

REGISTERED CHARITY NUMBER: 1153042

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 30 April 2020

for

4Motion Darlington

Page

Report of the Trustees

1

to

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Balance Sheet

6

to

7

Notes to the Financial Statements

8

to

13

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 April 2020. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

To promote for the benefit of the inhabitants of Darlington and the surrounding areas, the provision of facilities for recreation or other leisure time occupation, in particular but not exclusively roller-skating, scootering, skateboarding and biking, for individuals who have need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving the condition of life of the said inhabitants.

To promote such other charitable purposes as the company in its absolute discretion shall from time to time consider can be appropriately carried on in conjunction with the activities carried on pursuant to first object mentioned above.

Public benefit

The charity's aims and achievements are set out within this report. The activities set out in this report have been undertaken to further the charity's charitable purposes for the public benefit. The charity trustees have complied with their duty to have due regard to the guidance published by the Charity Commission on public benefit.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

4Motion Darlington has now been established for nearly seven years. We provide an indoor skatepark for all and a variety of coaching and development opportunities for children and young people.

The skatepark has now been open for six years and awareness of the facility continues to grow. The past 12 months has seen the highest attendances since opening.

The skatepark closed on the 25th March 2020 due to Covid-19. We had a total of 26,592 attendances (11 months) in 2019/20 compared to 20,775 in 2018/19.

We continue to provide a variety of coaching opportunities for children and young people that include, mountain bike coaching at west park and learn to ride, scooter, skateboard and BMX coaching at the skatepark. Young people also help run these coaching sessions either as volunteers, trainees or paid staff.

We encourage use of the park with a wide variety of users and groups including, home schooling, special needs/behavioural schools, toddlers, and community associations to ensure the skatepark is available to all and with entry prices the same for the last four years keeping it affordable for all individuals.

We have provisional approval from British Cycling of a grant that will cover 50% of the costs to build the mezzanine floor and upstairs multi-functional room. The key condition is that we extend our lease, as it currently runs until September 2023. We have started the discussions with the landlord to finish the current lease and agree terms for a further 10 years.

In April 2020 the charity received a grant of £25,000 from the Government to help towards the running costs and we placed all staff, except for the manager, on furlough.

Post the balance sheet date, we applied to Sport England for a grant to help cover the running costs during lockdown (manager and ongoing bills excluding rent) and secured funding of £6,942. As a result of the surplus and generous government support, the Sport England grant, means the charity has been able to protect employment and continues to be a going concern.

FINANCIAL REVIEW

Investment policy and objectives

The Charity does not have a policy for the selection of investments or for the selection of those who might receive monetary grants out of the assets of the charity.

Reserves policy

It is the Charity's policy to work towards setting aside, in reserves, an amount equivalent to three months operating costs calculated and reviewed annually.

Funds in deficit

The Charity does not have any funds in deficit.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

4Motion Darlington welcomes new trustees. The board members themselves take a proactive approach to this, speaking with people they feel would have something to contribute to the Charity at the board level.

Prospective Management Committee members start with the charity as formal attendees/ co-opted members until the Annual General Meeting takes place and they either become Directors/ Trustees or they remain formal attendees/ co-opted members because that fits in with their role and demands on their time.

Organisational structure

The charity has a board of trustees which has overall control and responsibility for policy and all major decisions. All members of the board are directors and trustees.

Induction and training of new trustees

As part of their induction, new board members are familiarised with the charities objectives and activities together with the accounts and workings of the charity. Each new board member is provided with a copy of the Memorandum and Articles of Association and relevant information provided by the charity commission regarding Trustees Duties.

New members will be invited to look around the skate park and meet the staff and volunteers from various work streams. They will be invited to other internal and external opportunities where they can improve the knowledge, skills and understandings relevant to the voluntary work they do for the Charity.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

08504871 (England and Wales)

Registered Charity number

1153042

Registered office

9 Clare Avenue

Darlington

Co. Durham

DL3 8SJ

Trustees

N R Leeming

D Woodcock

C P Tervit

P E Gwyther

Independent Examiner

Chrichard & Co

23 Woodland Road

Darlington

Co. Durham

DL3 7BJ

Approved by order of the board of trustees on 19 January 2021 and signed on its behalf by:

N R Leeming - Trustee

Independent examiner's report to the trustees of 4Motion Darlington ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 April 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of FCCA which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Michael Chrichard

FCCA

Chrichard & Co

23 Woodland Road

Darlington

Co. Durham

DL3 7BJ

19 January 2021

2020

2019

Unrestricted

Total

fund

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

180

358

Charitable activities

3

General grant

218,319

140,859

Other trading activities

2

38,861

31,024

Total

257,360

172,241

EXPENDITURE ON

Charitable activities

General grant

218,304

184,739

NET INCOME/(EXPENDITURE)

39,056

(12,498

)

RECONCILIATION OF FUNDS

Total funds brought forward

34,259

46,757

TOTAL FUNDS CARRIED FORWARD

73,315

34,259

2020

2019

Unrestricted

Total

fund

funds

Notes

£

£

FIXED ASSETS

Tangible assets

7

57,216

71,001

CURRENT ASSETS

Stocks

8

3,177

3,509

Debtors

9

12,383

13,535

Cash at bank and in hand

76,032

30,628

91,592

47,672

CREDITORS

Amounts falling due within one year

10

(19,045

)

(17,241

)

NET CURRENT ASSETS

72,547

30,431

TOTAL ASSETS LESS CURRENT LIABILITIES

129,763

101,432

CREDITORS

Amounts falling due after more than one year

11

(56,448

)

(67,173

)

NET ASSETS

73,315

34,259

FUNDS

13

Unrestricted funds

73,315

34,259

TOTAL FUNDS

73,315

34,259

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 April 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 April 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 19 January 2021 and were signed on its behalf by:

N R Leeming - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Shop income food and drink

38,861

31,024

3.	INCOME FROM CHARITABLE ACTIVITIES

2020

2019

General

Total

grant

activities

£

£

Skate park entry fees

169,850

127,641

Grant

25,000

-

Goods for resale

23,469

13,218

218,319

140,859

4.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2020

2019

£

£

Depreciation - owned assets

14,080

17,508

Rent

33,947

31,828

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 April 2020 nor for the year ended 30 April 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 30 April 2020 nor for the year ended 30 April 2019.

6.	STAFF COSTS

The average monthly number of employees during the year was as follows:

2020

2019

Coaching and park management

7

11

No employees received emoluments in excess of £60,000.

7.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

COST

At 1 May 2019

5,484

136,881

142,365

Additions

295

-

295

At 30 April 2020

5,779

136,881

142,660

DEPRECIATION

At 1 May 2019

2,195

69,169

71,364

Charge for year

538

13,542

14,080

At 30 April 2020

2,733

82,711

85,444

NET BOOK VALUE

At 30 April 2020

3,046

54,170

57,216

At 30 April 2019

3,289

67,712

71,001

8.

STOCKS

2020

2019

£

£

Stocks

3,177

3,509

9.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

2,444

1,720

Prepayments

9,939

11,815

12,383

13,535

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Other loans (see note 12)

8,609

8,892

Trade creditors

7,445

5,589

Social security and other taxes

436

255

VAT

121

348

Other creditors

120

144

Accrued expenses

2,314

2,013

19,045

17,241

11.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Other loans (see note 12)

56,448

67,173

12.

LOANS

An analysis of the maturity of loans is given below:

2020

2019

£

£

Amounts falling due within one year on demand:

Other loans

8,609

8,892

Amounts falling between one and two years:

Other loans - 1-2 years

8,609

8,005

Amounts falling due between two and five years:

Other loans - 2-5 years

47,839

59,168

13.	MOVEMENT IN FUNDS

Net

movement

At

At 1.5.19

in funds

30.4.20

£

£

£

Unrestricted funds

General fund

34,259

39,056

73,315

TOTAL FUNDS

34,259

39,056

73,315

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

257,360

(218,304

)

39,056

TOTAL FUNDS

257,360

(218,304

)

39,056

Comparatives for movement in funds

Net

movement

At

At 1.5.18

in funds

30.4.19

£

£

£

Unrestricted funds

General fund

46,757

(12,498

)

34,259

TOTAL FUNDS

46,757

(12,498

)

34,259

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

172,241

(184,739

)

(12,498

)

TOTAL FUNDS

172,241

(184,739

)

(12,498

)

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.5.18

in funds

30.4.20

£

£

£

Unrestricted funds

General fund

46,757

26,558

73,315

TOTAL FUNDS

46,757

26,558

73,315

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

429,601

(403,043

)

26,558

TOTAL FUNDS

429,601

(403,043

)

26,558

14.	RELATED PARTY DISCLOSURES

The trustee Mr N R Leeming is owed at the balance sheet date £2,400 (2018: £7,600) within the loan balance.