Registered number:
(A company limited by guarantee)
FOR THE YEAR ENDED 31 MARCH 2023
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
COMPANY INFORMATION
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
CONTENTS
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The Directors present their Strategic Report on the group for the year ended 31 March 2023.
The Board of British Gymnastics (BG) is committed to the highest standards of corporate governance. The Board and its committees discharged its duties effectively throughout the year holding four Board meetings and a one- day strategy meeting with the attendance record below. In addition, all Board Committees met and operated within their terms of reference, reporting their activities to the Board.
In November 2022, BG appointed a new role of Head of Corporate Governance who is responsible for assuring BG’s compliance with the Code for Sports Governance. This includes new requirements relating to diversity and inclusion, welfare and safety, people planning, environmental social governance and the implementation of good governance standards across the organisation and the wider gymnastics community.
BG submitted evidence to UK and Sport England the new Code requirements at the end of April 2023 and has been advised that compliance has been achieved (excluding actions relating to diversity and inclusion that are not due for submission until March 2024). As part of BG’s broader commitment to having a positive societal impact, an Environmental & Social Governance (ESG) Group has been established that will seek to understand the actual and potential risks, impacts and opportunities associated with BG activities and oversee the development and implementation of a strategically aligned ESG plan. To ensure that all BG policies remain relevant, a Policy Register and review schedule is presented to the Board at each meeting. BG has also implemented a new policy framework, to support continuous improvement in the development, implementation, monitoring and review of policies. The Leap Group (formerly the Operations group) brings together Directors and Heads of Department with the aim of galvanising a collective direction across the organisation and ensuring a meaningful and practical connection to BG's strategic plan and values.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Overview
A message from our CEO: As BG members, you are all an important part of the BG community and contribute to the success of the sport and the work we are doing to improve it. When I joined BG, the sport was in the middle of the Whyte Review, and there was a shared sense of responsibility for the concerns being raised and our collective failures. This could be felt at all levels of the organisation because of the genuine care for and commitment for gymnastics and for our members that exists within everyone at BG. Now, I am starting to see the reforms being put in place and the confidence and passion returning. We are at the beginning of our reform journey, and I am fully aware that meaningful change takes time, but we will not shy away from the challenges we face, and we will be relentless in our commitment to everyone being safe and welcome, as we deliver an uplifting experience for all. This starts by really listening to people’s first-hand accounts, those of gymnasts, parents, club owners or coaches. While some of these stories and experiences may be hard to hear, what underlies them all is a deep love for the sport. It is that which will unite us and enable us to deliver a gymnastics experience of which we can all be proud. I have been able to visit many clubs in the last year, right across the country, and have never failed to be impressed by the dedication and commitment shown by all involved in supporting the clubs’ owners, coaches and many volunteers who enable the clubs to thrive. From navigating the challenges of the pandemic, to the training and educating of coaches and the continual drive to provide the best experiences possible, we are lucky and grateful to have such dedicated members. The past 12 months have also seen us complete an ambitious full competition programme, including creating special memories from a home World Artistic Championships, and it has been incredible to see everyone back in full swing following the full lifting of the restrictions of the pandemic. The performances across all disciplines have been an absolute pleasure to witness, with the camaraderie and joy of performing clear to see. Congratulations to each and every one of you who has represented Great Britain, an achievement for you and those close to you to be extremely proud of. Sarah Powell, British Gymnastics To view our full Membership Annual review 2022/2023 on our website our via this link: www.british-gymnastics.org/articles/gymnastics-uplifted-british-gymnastics-membership-review-2022-2023
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Our vision at a glance
A significant moment for the future of our sport came earlier this year with the launch of ‘Leap Without Limits’, setting out our united vision for gymnastics in the UK to deliver an uplifting gymnastics experience for all. Through the ‘Shape Our Future’ workshops and surveys, it’s a vision that has been shaped by you, the gymnastics community, and it is a vision for you. It’s made up of three key elements: ’Uplifting’ – to represent the many physical and mental health benefits of gymnastics, and the enjoyment it brings. ‘Experience’ – making positive experiences for everyone central to everything we all do, including the way we involve and treat people and how we deliver gymnastics. ‘For All’ – for everyone in gymnastics no matter how you are involved, and ensuring gymnastics is welcoming for people who haven't been involved in the past. Never have all of the governing bodies across our home nations of England, Northern Ireland, Scotland and Wales come together with the sole aim of creating a bright future for our sport with you, the gymnastics community, at the heart of everything we do. The new vision is supported by a clear purpose so that together we ensure gymnastics is enjoyable, safe and open to everyone, and three shared values that we want every aspect of gymnastics to reflect and embody – inclusive, supportive and aspirational. You can access the full Leap Without Limits document which outlines how we will be making the new vision a reality here: (https://www.british-gymnastics .org/vision) WATCH: Our vision is so much more than simply words on a page, and you can see it brought to life by watching our Leap Without Limits video here, featuring members of our community across England, Scotland, Northern Ireland and Wales (https://youtu.be/-ioAF7bkzBE)
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Reform ‘25 - Reset, refocus and rebalance.
BG is committed to meaningful change. We know there are challenges and, while change won’t happen overnight, we will ensure it happens for the long term by working collaboratively with you, our members. We have to acknowledge and learn from the past, and by doing so are making steady progress towards a brighter future with Reform ‘25 – our two-year comprehensive programme of transformational activity which prioritises the safety and wellbeing of everyone involved in the sport. With our initial focus on improving our internal systems now well underway, the next 12 months will begin to see those changes rolled out to involve, and benefit, our members. We appreciate your patience as we work towards this and achieve our collective goal of a safe and fair sport for all. Following your feedback, we’ve added an additional action to our Reform ‘25 plan - focusing on listening to the parent voice and building it into our thinking, plans and actions. We remain on track to deliver what is a comprehensive programme of transformational activity up to 2025. Of the initial 40 actions included in the plan, 11 have now been completed including: • Refocusing on the joy our sport can provide with the launch of our new vision for gymnastics • Creation of new advisory groups representing gymnasts, coaches, and clubs to help us listen better to our members • Prioritising safety and wellbeing of members with significant increases in staffing and resource in Welfare, Safeguarding and Complaints • Driving change with the appointment of key leadership roles in Education, Welfare & Safe Sport, and Performance
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
A huge thank you!
We wanted to take a moment to give a special mention to our dedicated workforce of coaches, club owners, judges, technical officials and safeguarding officers – all supported by an amazing army of parents and other volunteers working tirelessly behind the scenes. We are grateful to each and every person who makes up the broader gymnastics family for everything you do for the sport. After being hard hit by the pandemic, we could not be prouder of our clubs and members who have worked so hard to get the sport back up and running again. As our gymnastics family continues to grow and thrive, we wanted to share a snapshot of just what that looks like in numbers. We hope you are proud to be part of the BG family, one of the largest membership communities in UK sport: Figures for England also include Channel Islands, Isle of Man and Gibraltar. Club Roles are based on having one of the following active clublinks: 'Secretary', 'Treasurer', 'WelfareOfficer', 'MembershipAdmin', 'ClubSecretary', 'ChildProtectionCoordinator'
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Financials
During the year BG undertook a review of its operations and structure. This resulted in a significant restructuring taking place in September 2022 which led to a circa 40 headcount reduction representing a minimum of £1.1M cost reduction per annum. This was a difficult decision impacting all areas of the organisation but enabled a fit for purpose structure to be implemented. Continued cost reduction exercises and controls remain in place ensuring spend is only incurred on areas supporting the strategic vision of BG. As well as effective cost controls, BG also re-evaluated its VAT structure. Working with our tax advisors and third parties we managed to recover £650K in backdated VAT and ensure the most efficient tax structure is in place. BG made a pre tax loss of £2.9M compared to last year’s loss of £4.1M. Costs have been tightly controlled and operational savings have been generated where possible to minimise the need to pass on inflationary and cost of living increases.The planned loss for the year is funded by free cashflow and its managed investment portfolio. This has been a challenge given the economic impacts due to Russia’s War in Ukraine, the cost-of-living crisis and rising inflation. This investment is governed by an investment policy approved by the Board, and the primary investment objective is to achieve sustainable capital growth within a cautious to balanced risk environment. The portfolio is managed by an external management company and on 31st March 2023 the market value of the investment portfolio was £3.2m. During the year the portfolio dropped in value by £434K which is all attributable to the economic slowdown and War in Ukraine. Club Capital has continued to grow and by the end of the financial year had helped 22 clubs secure access to low interest rate loans with total loans issued amounting to £2.9M benefiting 18,317 members. As part of its impairment review, it became necessary to write down the recoverable grant made to Club Capital by £837K. Although club default rates remain within forecast the economic crisis has severely impacted any growth in free cash the fund held. Costs incurred to support the work under Reform 25 and ongoing independent investigations amounted to £764K during the year. These costs are forecast to reduce next year. In the main, this is related to third party legal and related consultancy charges. The impact of the Pandemic continued into 2022, with membership income being 94% of pre COVID-19 levels. Other income streams in the main have now recovered back to pre COVID-19 levels with the exception of our commercial shop revenue which remains significantly below these levels. The Board recognises the need to increase revenue through more commercial activity along with maintaining tight controls over expenditure to protect the organisation’s reserves going forward.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Effective risk management processes are essential in ensuring the ongoing success of the organisation. The principal risks and controls are reviewed at each Board meeting. The key strategic risks are as follows:
Safeguarding and wellbeing Safeguarding continues to be a priority for BG as well as supporting the wellbeing of our members. The implementation of Reform 25 is well underway, with action plans, agreed timelines and assigned responsibilities. The Reform '25 Oversight Board is in place to monitor and reflect on progress and reflect and regular review meetings take place with UK Sport and Sport England. This incorporates a variety of new and updated policies and procedures. BG has appointed Geraldine Costello as Director for Welfare and Safe Sport, who joined BG in June 2023. Financial Due to the increased cost across our operating base, the cost-of-living crisis and War in Ukraine, it was necessary to pass some of the costs onto our members with fee increases. A commercial strategy has been approved and BG continues to secure new sponsors and activate new commercial opportunities. Good relationships continue to be maintained with our funding partners. Maintenance and growth of membership BG membership proposition needs to meet the needs of clubs as well as members. Some clubs are dual registering which is in contravention of BG rules. This could lead to a fall in membership, loss of talent and potential insurance conflicts. A dual membership policy has been developed and improvements in customer support are being driven by insight from across the gymnastics community. BG is reinvesting in our IT platforms and systems to ensure the organisation is fit for purpose and offers members excellent user experience. Data Protection BG, like all organisations face significant data protection risks, particularly relating to an increase in cybercrime including phishing emails, which have the potential to cause major disruption. BG continues to improve its cybersecurity position and has revised business continuity plans to ensure effective recovery in the event of a significant security incident. BG has made improvements to our policy and IT architecture, increased compliance team capacity and continues to upskill staff to ensure data is appropriately handled and protected.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Membership recovery - membership numbers is closely monitored by the Board. For the membership year 2022/2023, membership ended at 94% of pre-COVID 19 levels, slightly ahead of forecast.
Profit and loss reserve account – close monitoring of our closing reserves and overall net balance sheet position with regular reporting to the Board. For the year ended 31st March 2023 the closing balance sheet position for the group was positive £306K compared to £3.109M in 2022. Cash and cash equivalents is the key metric measured by the Board. Detailed monthly and medium term cashflow forecasts are presented and reviewed ensuring sufficient funds are available to meet current liabilities and operational costs.
This report was approved by the board and signed on its behalf.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The Directors present their report and the financial statements for the year ended 31 March 2023.
The Directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the surplus or deficit of the Group for that period.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The deficit for the year, after taxation, amounted to £2,803,455 (2022 - deficit £4,171,754).
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The Directors who served during the year were:
In order to achieve its strategy, BG has embarked on major investment programmes involving facility development, coach education, improved customer experience and support for members and clubs. This will involve increased expenditure on staff and resources over this period.
There have been no significant events affecting the Group since the year end that would impact these financial statements.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The auditors, WR Partners, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
We have audited the financial statements of British Amateur Gymnastics Association (The) (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity 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).
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 Group 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.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE) (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE) (CONTINUED)
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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and the Group and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR). We understood how the Company and the Group are complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements. We assessed the susceptibility of the Company and Group's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the 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.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE) (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members 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 Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Belmont House
Shrewsbury Business Park
Shropshire
SY2 6LG
Date:
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
REGISTERED NUMBER: 01630001
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 23 to 44 form part of these financial statements.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
REGISTERED NUMBER: 01630001
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
Page 20
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Page 22
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The Company is a private company limited by guarantee and is incorporated in England. The Company has a wholly owned subsidiary, Gymnastics Enterprises Limited, the results of which are included in the consolidated financial statements. The address of the registered office is Lilleshall National Sports Centre, Newport, Shropshire, TF10 9AT.
The principal activity is supporting gymnastics in Britain.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The Group has net current liabilities of £3,387,550 (2022: £3,638,081). The Group also holds listed investments totalling £3,225,459 (2022: £5,658,609) which could be liquidated if required to support the going concern status of the Group.
After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Financial resources include the investment portfolio which can be drawn upon if the need arises. The Group therefore continues to adopt the going concern basis in preparing its financial statements.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates, will by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Valuation of Intangible Fixed Assets Intangible fixed assets relate to development expenditure and are held at cost less impairment. No amortisation has been applied to the development expenditure as the assets are still within the development phase. Management perform an internal assessment of the carrying value of intangible fixed assets and consider whether any indicators of impairment are present. No impairment requirement has been identified in the year ended 31 March 2023. The carrying value of intangible fixed assets for the Group is £842,921 (2022: £1,082,055) of which £809,640 (2022: £979,899) relates to development expenditure.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 30
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 31
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 32
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
12.Taxation (continued)
From 1 April 2023, the main rate of corporation tax is due to increase from 19% to 25% for companies with profits exceeding £250,000.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The deficit after tax of the parent Company for the year was £
Page 34
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
15.Intangible assets (continued)
Page 35
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 36
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
16.Tangible fixed assets (continued)
Page 37
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 38
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 39
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 40
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Other creditors greater than one year relate to grant funded assets that are being amortised over the life of the asset.
Bank loans are secured by a fixed charge over fixed assets and stock held by the Company.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Other reserves
Profit and loss account
Page 42
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The Company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.
The Group Action civil claim bought against the organisation and it’s insurers in 2022 is still in progress. Within the Group Action, two claims pre-date the insurance coverage retroactive date, and as such will financially revert to BG in the event of the claims being successful. Outside of the Group Action there are two independent claims that also pre-date the insurance provision, which will also financially revert to BG. Quantum and timing for all uninsured claims is unknown at this point.
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BRITISH AMATEUR GYMNASTICS ASSOCIATION (THE)
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 44
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