The trustees present their annual report and financial statements for the year ended 30 June 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).
The company's objectives are to operate a sports specific centre for the provision of gymnastics facilities in Fife, and to encourage participation in the sport of gymnastics.
Business Review
The Trust was granted a license by Fife Council to operate the Bruce Street Gymnastics Centre in Dunfermline for the benefit of the local community. Following a refurbishment of the Centre , the licence commenced in January 2009. The Directors remain in negotiation with Fife Council to finalise and then sign the long lease on the premises which is at present in draft form.
During the year the three founder Member Groups of KGT, Dunfermline Zodiak Gymnastics Club, Carnegie Spartan Gymnastics Club and the Fife Gymnastics Network, continued to make full and comprehensive use of the specialist training facilities provided by KGT in the Bruce Street Gymnastics Centre at evenings and weekends.
During the daytime, Monday to Friday, a programme of two Pre-School Classes and eight recreational and development classes has been delivered by KGT. These classes run for 40 weeks each year in parallel with the school terms. Classes continue to operate at almost full capacity with a small waiting list for some classes. The numbers of pre-school and primary school age children attending these Classes amount to around 250 children every week.
The Trust traditionally runs Gymnastics Activity Camps for four separate weeks during the main school holiday periods, (summer, autumn and spring). These gymnastics-based activity sessions were open to any primary school age children and catered for a significant number of boys and girls. Some of the children were from KGT Classes whilst others were new to gymnastics.
Two part time staff members, a coach and an administrator are employed directly by KGT. They are supported in the delivery of the KGT classes by a group of qualified coaches and assistants who, on a sessional basis, help to run the daytime classes. In addition to this, a specialist Pre-School Gymnastics Coach is contracted to deliver the Pre-School Programme.
The Board is grateful to Fife Council who, in terms of the lease, continues to undertake maintenance work on the Gymnastics Centre to keep the building windproof, watertight and fit for purpose. KGT is responsible for the routine maintenance of the internal fabric and a range of basic repair and maintenance issues were tackled during the year.
The results for the year are set out on page 6 of the Accounts and show a deficit for the year of £6,380 which has been deducted from the reserves brought forward of £53,412 to give total reserves of £47,032 at the end of the year.
The Directors consider the overall financial state of affairs of the Trust to be satisfactory.
Reserves Policy and going concern
The Trust's reserves at the end of the financial year total £47,032. The Board has agreed that surplus funds will be held in a separate protected "Reserve Bank Account", with the remaining funds held in the Current Account as an operating surplus to assist with routine cash flow variations.
The Directors are aware of the need to grow reserves to be able to develop the activities of the charity into the future. In particular, the Directors would like to build up reserves to a level to meet three months' expenditure to cover eventualities should an emergency arise.
Looking further ahead, there is a need to build up reserves to cover the replacement of major items of gymnastics equipment, the maintenance of the interior of the building, and reinstatement of the building to 2008 standards which is a condition of the draft long-term lease.
The Directors have plans to continue with the development of the facilities and the interior layout of the building at Bruce Street but these are dependent upon finalising with Fife Council the long term lease on the premises.
The board is also looking at additional ways of generating revenue to obtain maximum benefit from the use of the premises and expanding the volume and scope of the Gymnastics Outreach Coaching in Primary Schools and other settings in furtherance of the Charitable Objectives of the Trust to promote widespread participation in the sport.
The company is a registered Charity (number SC040303). The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. It is a company limited by guarantee and the liability of each member of the charity in the event of winding up is limited to £1. The Directors have claimed exemption under Section 60 Companies Act 2006 from using "Limited" as part of the company name.
Directors
The Directors, who are directors for the purpose of company law and trustees for the purpose of charity law, who have held office since 1 July 2022 are:
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Chairperson: | Vacant
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Elected Trustees: | S Harper (Zodiak Gymnastics Club)
N Farr (Carnegie Spartans Gymnastics Club) (Resigned 29 January 2024)
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| G Struthers (Fife Gymnastics Network) (Resigned 21 November 2023) |
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The Directors are appointed by the three Founder Member Groups: Carnegie Spartans Gymnastics Club, Fife Gymnastics Network and Dunfermline Zodiak Gymnastics Club.
Following the resignation of N Farr and G Struthers, both Founder Member Groups are seeking to appoint new directors.
Recruitment and Appointment of Directors
Directors are nominated to the Board on an annual basis by each of the three Founder Member Groups (see above). The Directors may at any time appoint any persons to be a Director either to fill a vacancy or as an additional director.
Director Induction and Training
The induction and training of the Directors is carried out on appointment and continues during their term of service.
Reference and Administrative Information
Company Number | SC345046 |
Charity Registration Number | SC040303
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Registered Office | 40 Bruce Street Dunfermline Scotland KY12 7AG
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Independent Examiner | Andrew Croxford, CA 3 Castle Court Carnegie Campus Dunfermline KY11 8PB |
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Bankers | The Bank of Scotland 1 Bothwell Street Dunfermline Fife KY11 3AG |
Solicitors | Young & Partners LLP 1 George Square Carnegie Campus Dunfermline KY11 8PB |
The trustees, who are also the directors of Kingdom Gymnastics Trust for the purpose of company law, 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).
Company Law 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, including the income and expenditure, of the charitable company 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; 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 adequate 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 Companies Act 2006. 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.
The Board actively reviews the major risks which the charity faces on a regular basis and believes that the growing of financial reserves over a number of years, combined with regular reviews of controls over key operational and financial systems, will provide sufficient resources in the event of adverse conditions. The Directors continue to monitor the major operational and business risks faced by the charity and develop systems to mitigate any significant risks.
Fire Safety and Health and Safety requirements, and Standard and Emergency Operating Procedures, originally established in 2009/10, continue to be operated and kept under review. A detailed template has been prepared to be used as the basis for a comprehensive audit of a Health & Safety and Building Management Policies and Procedures by an independent external assessor.
The Board continues to review the Operational Management Structure of the Trust. It has been agreed that arrangements should be strengthened with the introduction of an Operational Management Committee reporting to the Board. Also, in order to spread the load, additional volunteers should be sought to join this Committee to assist with the overseeing and undertaking of specific tasks and responsibilities. Detailed arrangements are being developed for the introduction of the Operational Management Committee.
The trustees report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 30 June 2023, which are set out on pages 6 to 13.
The charity’s trustees, who are also the directors of Kingdom Gymnastics Trust for the purposes of company law, 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 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.
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.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
Kingdom Gymnastics Trust is a private company limited by guarantee incorporated in Scotland. The registered office is 40 Bruce Street, Dunfermline, KY12 7AG.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association , the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Gymnastics Provision
Gymnastics Provision
Hall and room hire
Coaching classes
Gymnastics Provision
Gymnastics Provision
Coaching fees
Repairs and maintenance
Heat and light
Sundry expenses
Cleaning
SGA membership fees
Insurance
Telephone
Bank Charges
The average monthly number of employees during the year was:
No members of the Board of Directors received any remuneration during the year.
During the year, coaching fees totalling £268 (2022 - £nil) were paid to Bracklinn Projects Limited, a company in which Scott Harper and his wife are directors and shareholders. During the year coaching fees totalling £5,138 (2022 - £4,226) were paid to director Gina Struthers. Further amounts totalling £2,669 (2022 - £1,395) were paid to her daughter for coaching fees. Amounts totalling £686 (2022 - £834) were paid to the son of director Nikki Farr.
No other trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year.
Since the end of the year, the trustees have been advised of a potential liability for water rates. In previous years the Trust applied for, and received, charitable exemption. The trustees have been advised that in the absence of an exemption application, the liability is payable. The trustees plan to appeal against any liability and no provision has been made for any potential liability should the appeal be unsuccessful.