Erewash Valley Gymnastics Club Ltd - Charities report - 18.1

REGISTERED COMPANY NUMBER: 08664338 (England and Wales)

REGISTERED CHARITY NUMBER: 1168497

Report of the Trustees and

Unaudited Financial Statements for the Year Ended

31 October 2017

for

Erewash Valley Gymnastics Club Ltd

Erewash Valley Gymnastics Club Ltd

Contents of the Financial Statements

for the year ended 31 October 2017

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 15

Erewash Valley Gymnastics Club Ltd

Report of the Trustees

for the year ended 31 October 2017

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 31 October 2017. 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 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity's objective is the promotion of community participation in healthy recreation for the benefit of

the inhabitants of Erewash and the surrounding area, by the provision of facilities and coaching for

gymnastics.

Our Vision

We want to make EVGC a centre of excellence for all abilities and to unlock every individual's potential.

To facilitate a diverse range of gymnastics and sporting activities. We want to bring the fun and benefits

of gymnastics to everyone in our community.

Public Benefit

The trustees confirm that they have referred to the Charity Commission guidance on public benefit and

meet the guidelines through the charity's aim and objectives and in planning future activities in the

provision of gymnastic activities.

EVGC operates over two sites and we aim to allow as many different people and organisations to use the

facilities. We want to encourage more people to get and remain active as sport participation has a

positive impact on health and wellbeing.

Our aim is to provide fitness, fun and friendship at an affordable price, offering places to all regardless of

age, ability or economic circumstances.

To this end we offer sessions from under 5's tots session to over 50's chair based exercise, recreational

level gymnastics to an elite squad training programme.

We also have additional facilities of meeting spaces and café area for organisations and individuals to

meet and socialise which are open to all.

EVGC offer space to other sports clubs, including providing a permanent home to a local boxing club

(LEABC).

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The charity's mission is to offer gymnastics for all by delivering a range of different opportunities to

participate in the gym. These include; Messy Play classes, Preschool session, age related fun recreational

level gymnastics sessions to squad level training, school holiday fun days, festivals, carnival and external

event participation, internal badge scheme, home school sessions, children's parties, 13+ and 16+

dedicated session freestyle and adults. We adapt our programme regularly to enable as many

organisational and individuals to participate and use the facility as possible.

In May 2017 EVGC moved into newer premises on New Tythe Street, Long Eaton increasing our

participation once again to offer more recreational level sessions in bigger premises.

We also purchased a building on Hallam Fields Road in Ilkeston. This marks the start of a new journey for

EVGC as this is our first owned building. Our plans in the first year are to renovate the building to convert

this to an operational gym which opened in September 2017 and then as we move forward into the next

year we aim to further expand the facility to achieve our goals of becoming a regional centre of

excellence on track to develop this as a regional centre of excellence, EVGC will be able to offer over

1500 places for children in our local communities.

FINANCIAL REVIEW

Financial position

The charity continued to grow in the year to 31st October 2017. Overall income increased from £424,464

in 2016 to £471,146 in 2017. A big factor in this increase was the receipt of grants towards the building

project at Ilkeston of £60,000 from British Gymnastics, £19,646 from Erewash Borough Council and

£3,000 from the Rank Foundation. A grant of £1,475 was also received from the Local Community

Volunteer Service towards the purchase of equipment.

Expenditure also increased during the year from £315,467 in 2016 to £445,333 in 2017. Wage costs have

increased from £149,036 in 2016 to £232,301 in 2017 as the charity has employed more staff. With the

purchase of the building at Ilkeston in 2016 and the refurbishment and development of it during the year

resulting in substantial capital expenditure, depreciation charged for 2017 was £42,788, compared with

£2,650 in 2016.

Despite these increased costs, the charity still made a surplus of £25,819 (2016: £109,957) for the year

to 31st October 2017.

Reserves policy

The charity has a policy for its reserves that we target to hold enough cash reserves for two month fixed

running costs and specific targets for the EVGC expansion project and for cyclical replacement of

gymnastics kit.

Cover running costs and unforeseen emergency - Income is seasonal and can drop off in July and

December so to support the operational requirement of seasonality we aim to have 2 months fixed costs

as a reserve (£25k payroll, Loans and Rentals £7k = £32k x 2 = £64k)

Equipment replacement costs - Gymnastics equipment is costly and requires a cyclical replacement

program - EVGC will look to place £1k per month from income into reserves to facilitate this replacement

in the coming year (there will be expenditure also in year) with a view to continuing to build this pot to

replace equipment as required.

As at 31 October 2017 the charity had unrestricted reserves of £136,953, this has reduced due to the

investment in the EVGC premises in 2017 and will continue to do so for the first half of 2018. (£2016:

£182,637).

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.

The charity is governed by its Memorandum and Articles of Association dated 27 August 2013, and

amended by special resolution on 27 June 2016.

Recruitment and appointment of new trustees

The minimum number of directors shall be three but is not subject to any maximum.

Directors / Trustees are appointed by ordinary resolution either by:

Appointment by other Directors / Trustees

EVGC Directors / Trustees are usually recruited by local advertising and recommendation, expression of

interests are submitted and these are voted on.

Organisational structure

Erewash Valley Gymnastics Club is managed by a Board of Directors who are trustees to the Charity. Our

Directors are volunteers who give of their time freely to the club. Their role is to develop the strategy for

EVGC, ensuring charity assets are managed and to support the Club Manager in the operational

management of the club.

Each Director has a specific area of the club that they support based on the skills they bring to the club

and each area has a lead director and a support director, this is mirrored in the club where these areas

are assigned to the club Manager, team leaders and full time staff to ensure we maintain focus on the key

areas which are: HR, Finance, H&S, Welfare, Classes, Fundraising, Business planning, Marketing,

Insurance and Community

Directors meet once a month for an official board meeting but often get involved with events and projects

running within the club.

EVGC has four directors and is currently looking to expand our board with other like-minded people who

can expand our expertise within this niche business.

Day to day running of the charity is designated to the Club Manager.

Induction and training of new trustees

New trustees are encouraged to familiarise themselves with charity laws, the financial reports of the club

and to attend staff meetings and events to gain knowledge of the operational workings of the club.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

08664338 (England and Wales)

Registered Charity number

1168497

Registered office

Hallam Fields Road

Ilkeston

Derbyshire

DE7 4AZ

Trustees

Mrs M S Marshall

Mrs H J Saunders

- resigned 16/1/2018

Mrs J Dulston

Mrs R C Harbey

- appointed 8/2/2017

Mrs K M Kearns

- appointed 10/1/2018

Company Secretary

Mrs J Dulston

Independent examiner

Douglas Perry

ACA

Clayton & Brewill

Chartered Accountants

Cawley House

149-155 Canal Street

Nottingham

Nottinghamshire

NG1 7HR

Approved by order of the board of trustees on 19 July 2018 and signed on its behalf by:

Mrs R C Harbey - Trustee

Independent Examiner's Report to the Trustees of

Erewash Valley Gymnastics Club Ltd

Independent examiner's report to the trustees of Erewash Valley Gymnastics Club Ltd ('the

Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 October 2017.

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 ACA 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

Douglas Perry

ACA

Clayton & Brewill

Chartered Accountants

Cawley House

149-155 Canal Street

Nottingham

Nottinghamshire

NG1 7HR

20 July 2018

Erewash Valley Gymnastics Club Ltd

Statement of Financial Activities

(Incorporating an Income and Expenditure Account)

for the year ended 31 October 2017

2017

2016

Unrestricted funds

Restricted fund

Total funds

Total funds

as restated

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

1,565

-

1,565

52,131

Charitable activities

4

General

326,871

84,121

410,992

319,748

Other trading activities

2

52,390

-

52,390

51,740

Investment income

3

2,155

-

2,155

31

Other income

4,044

-

4,044

814

Total

387,025

84,121

471,146

424,464

EXPENDITURE ON

Raising funds

15,994

-

15,994

6,370

Charitable activities

5

General

416,715

12,618

429,333

309,097

Total

432,709

12,618

445,327

315,467

NET INCOME/(EXPENDITURE)

(45,684

)

71,503

25,819

108,997

RECONCILIATION OF FUNDS

Total funds brought forward

182,637

-

182,637

73,640

TOTAL FUNDS CARRIED FORWARD

136,953

71,503

208,456

182,637

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

Erewash Valley Gymnastics Club Ltd

Balance Sheet

At 31 October 2017

2017

2016

Unrestricted funds

Restricted fund

Total funds

Total funds

as restated

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

11

628,220

71,503

699,723

318,038

CURRENT ASSETS

Debtors

12

3,532

-

3,532

29,429

Cash at bank and in hand

3,350

-

3,350

142,821

6,882

-

6,882

172,250

CREDITORS

Amounts falling due within one year

13

(99,270

)

-

(99,270

)

(59,638

)

NET CURRENT ASSETS/(LIABILITIES)

(92,388

)

-

(92,388

)

112,612

TOTAL ASSETS LESS CURRENT LIABILITIES

535,832

71,503

607,335

430,650

CREDITORS

Amounts falling due after more than one year

14

(398,879

)

-

(398,879

)

(248,013

)

NET ASSETS

136,953

71,503

208,456

182,637

FUNDS

16

Unrestricted funds

136,953

182,637

Restricted funds

71,503

-

TOTAL FUNDS

208,456

182,637

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 October 2017.

The members have not required the company to obtain an audit of its financial statements for the year

ended 31 October 2017 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

special provisions of Part 15 of the Companies Act 2006 relating to

charitable small companies.

The financial statements were approved by the Board of Trustees on 19 July 2018 and were signed on its behalf by:

Mrs M S Marshall -Trustee

Erewash Valley Gymnastics Club Ltd

Notes to the Financial Statements

for the year ended 31 October 2017

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 2015)', 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.

Financial reporting standard 102 - reduced disclosure exemptions

The charity has taken advantage of the following disclosure exemption in preparing these financial

statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and

Republic of Ireland':

-

the requirements of Section 7 Statement of Cash Flows.

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.

Freehold property

- 2% of cost or valuation

Fixtures and fittings

- 33% on cost

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.

Company status

The charity is a company limited by guarantee. In the event of the company being wound up, the

liability of each member is limited to £10 as defined by the articles of association.

2.	OTHER TRADING ACTIVITIES

2017

2016

as restated

£

£

Fundraising events

31,160

33,096

Shop income

21,230

18,644

52,390

51,740

3.	INVESTMENT INCOME

2017

2016

as restated

£

£

Rents received

2,150

-

Interest Received

5

31

2,155

31

4.	INCOME FROM CHARITABLE ACTIVITIES

2017

2016

as restated

Activity

£

£

Fees

General

281,378

270,492

Donated services & facilities

General

28,307

25,236

Room hire

General

16,175

15,073

Awards

General

1,011

548

Grants

General

84,121

8,399

410,992

319,748

Grants received, included in the above, are as follows:

2017

2016

as restated

£

£

Other grants

84,121

8,399

5.	CHARITABLE ACTIVITIES COSTS

Direct costs

Support costs

Totals

£

£

£

General

383,934

45,399

429,333

6.	NET INCOME/(EXPENDITURE)

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

2017

2016

as restated

£

£

Auditors' remuneration for non audit work

2,030

2,160

Depreciation - owned assets

42,788

2,650

Other operating leases

20,390

48,720

7.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 October 2017 nor for

the year ended 31 October 2016.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 October 2017 nor for the year ended

31 October 2016.

8.	STAFF COSTS

2017

2016

as restated

£

£

Wages and salaries

232,301

149,036

Social security costs

10,600

2,847

Other pension costs

2,283

-

245,184

151,883

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

2017

2016

Employees

27

24

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

Key management personnel comprise the trustees, the Club Manager and 3 team leaders. The

total employee benefits of the key personnel of the charity were £99,006.

9.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted funds

Restricted fund

Total funds

as restated

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

52,131

-

52,131

Charitable activities

General

319,748

-

319,748

Other trading activities

51,740

-

51,740

Investment income

31

-

31

Other income

814

-

814

Total

424,464

-

424,464

EXPENDITURE ON

Raising funds

6,370

-

6,370

Charitable activities

General

309,097

-

309,097

Total

315,467

-

315,467

NET INCOME/(EXPENDITURE)

108,997

-

108,997

RECONCILIATION OF FUNDS

Total funds brought forward

73,640

-

73,640

TOTAL FUNDS CARRIED FORWARD

182,637

-

182,637

10.	PRIOR YEAR ADJUSTMENT

The prior year figures on the Statement of Financial Activities (SOFA) have been reclassified in

these accounts.

Overall the total amount of income and expenditure remains unchanged, what has been changed is

the classification within income and expenditure.

2016

2016

Total

Total

funds

funds

as restated

Difference

£

£

£

INCOME AND ENDOWMENTS FROM

Donation and legacies

52,131

362,932

(310,801

)

Charitable activitiesGeneral

319,748

8,399

311,349

Other trading activities

51,740

52,288

(548

)

Investment income

31

31

-

Other income

814

814

-

Total

424,464

424,464

-

EXPENDITURE ON

Raising funds

6,370

246,122

(239,752

)

Charitable activities

General

309,097

69,345

239,752

Total

315,467

315,467

-

Net Income

108,997

108,997

-

This change has been made to more accurately reflect the nature of the charities income and

expenditure in relation to the activities that it carries out.

11.	TANGIBLE FIXED ASSETS

Freehold property

Fixtures and fittings

Totals

£

£

£

COST

At 1 November 2016

320,688

-

320,688

Additions

401,488

22,985

424,473

At 31 October 2017

722,176

22,985

745,161

DEPRECIATION

At 1 November 2016

2,650

-

2,650

Charge for year

32,043

10,745

42,788

At 31 October 2017

34,693

10,745

45,438

NET BOOK VALUE

At 31 October 2017

687,483

12,240

699,723

At 31 October 2016

318,038

-

318,038

12.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

as restated

£

£

Prepayments and accrued income

3,532

29,429

13.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

as restated

£

£

Loans and overdrafts (see note 15)

8,400

8,011

Other loans (see note 15)

61,488

-

Trade creditors

14,006

6,891

Social security and other taxes

12,625

2,444

Accruals and deferred income

2,751

42,292

99,270

59,638

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

2017

2016

as restated

£

£

Loans (see note 15)

240,367

248,013

Other loans (see note 15)

158,512

-

398,879

248,013