KINROSS_CURLING_TRUST - Accounts
KINROSS_CURLING_TRUST - Accounts
The Trustees present their annual report and financial statements for the year ended 30 April 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, 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 purposes of the Trust in relation to sport, and primarily the sport of Curling, are:
To provide or assist in the provision of recreational facilities, or to organise or assist in the organisation of the recreational facilities, with the object of improving the conditions of life for the public generally;
To encourage and actively promote public participation;
To provide training, coaching and education not only for those participating in sport but also the public generally about sport generally and Curling in particular;
To promote community participation in healthy recreation, in particular by playing the sport of curling.
The Trust will continue to actively engage members and the wider curling fraternity to support the aims of the Trust.
The Trust will also seek financial support from any relevant bodies who may be interested in these aims.
The Trustees have paid due regard to guidance issued by the OSCR in deciding what activities the charity should undertake.
The year has been very successful, both from a trading and operational perspective. Ice sales were back to pre-Covid levels and bar sales have exceeded recent years. The on-line booking system has bedded in well and is proving very popular and effective. Operationally, we have had an outstanding year. The challenges faced by the new ice and bar team were met with enthusiasm, competence and always with a strong customer focus. Our customers have responded magnificently with a much higher usage of our facilities and a real ‘club’ atmosphere apparent in the rink.
The huge strides that were made last year with curling development have continued apace with nearly 300, once again, attending our Try Curling events and 55 going on to attend the beginners’ courses. This, in turn has helped the Development Club to sustain a strong and vibrant profile as well as feeding new members into our clubs. Of course, crucial to running a successful programme for new curlers is have sufficient coaches. It is therefore very encouraging to see that the number of coaches and on ice assistants providing coaching has doubled over the past year. We have continued to explore and promote daytime leagues run by the rink. The Thursday League (now sponsored by Ness Plant) has become an established fixture and thus we have introduced a Monday Ladies league. We have also introduced an After School Club which is proving very successful.
We held a number of successful events; the International and Over 40’s Bonspiels, the Superspiel as well as hosting the incoming US Tour. A number of Kinross curlers also took part in the Strathcona Cup tour of Canada and the Ladies US Tour.
Ice bookings are up again for next year and we look forward to the season ahead with enthusiasm and confidence.
Last year, Ice Sales were 21% ahead of budget, which was very pleasing. The new ice team coped with this increase admirably and we are very appreciative of their efforts and the support from the curling community. The Bar Sales overturned a downward trend and returned a 78% increase on the previous year and a 47% increase on budget.
The Staff Costs were 15% higher than budgeted but the ratio to the sales fell from 46% to 42% due to the higher sales. We continue to have the benefit of energy contracts that were negotiated before the dramatic increase in energy costs. They cover us through until 2026.
The annual WCF loan repayment was deferred from August 2022 due to the crazy exchange rates at the time following the political crisis in Downing Street. It was eventually paid in April 2023, when the rates had eased a bit. We also had £32,500 of Personal Loan Capital Repayments in May/June 2022. No personal loan repayments are due this year.
We are indebted to all the staff who contributed to a most successful year but special mention is appropriate for Ross and Angie McCleary. Their efforts provided an incredible atmosphere about the rink, which was commented upon many times by curlers.
Funds Policy
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Risk Assessment
The Trustees have assessed the major risks to which Kinross Curling Trust is exposed, in particular, those related to the operations and finances of the company, and are satisfied that systems are in place to mitigate exposure to the major risks.
Kinross Curling Trust is a registered charity and is a company limited by guarantee. It was incorporated on 4 March 2009 and began trading in September 2013. The company was established under a Memorandum of Association which established the objects and powers of the company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The Board consists of up to eight elected directors and a maximum of one director nominated by the Royal Caledonian Curling Club. A further three directors may be co-opted at the discretion of the Board.
At each Annual General Meeting, one quarter of the Elected Directors are required to retire from office. A retiring Director shall be eligible for re-election, but no director can serve more than three terms of office, without at least one year out of office before being eligible again.
At 30th April 2023, membership was comprised of 263 founder members and 163 ordinary members.
All members are entitled to vote at all general meetings. In addition, Founder Member status entitles the subscriber to acknowledgement of their status as a founder member in future years.
The Trustees, who are also the directors of Kinross Curling 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;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping 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.
In accordance with the company's articles, a resolution proposing that Thomson Cooper be reappointed as auditor of the company will be put at a General Meeting.
The Trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 30 April 2023, which are set out on pages 6 to 18.
The charity’s Trustees, who are also the directors of Kinross Curling 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.
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.
INCLUDING INCOME AND EXPENDITURE ACCOUNT
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
INCLUDING INCOME AND EXPENDITURE ACCOUNT
Kinross Curling Trust is a private company limited by guarantee incorporated in Scotland. The registered office is 51 Atholl Road, Pitlochry, Perthshire, PH16 5BU.
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) 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 charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 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 £.
Kinross Curling Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
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. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay expenditure. All costs have been directly attributed to one of the functional categories or resources expenses in the SOFA.
Resources expended are included in the SOFA on an accruals basis, inclusive of any VAT which can not be recovered. Certain expenditure is directly attributable to specific activities and has been included in those cost categories.
Certain other costs, which are attributable to more than one activity, are apportioned across categories on the basis of an estimate of the proportion of time spent by staff on those activities.
Tangible fixed assets are initially measured at cost, 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).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
Grants receivable
Advertising and other income
Total
Total
Covid support income
Ice rink income
Bar income
Food, bar and other costs
Staff expenses
Rent
Heat & light
Insurance
Repairs & maintenance
Cleaning
Sundry costs
Telephone
Irrecoverable VAT
Loan interest
Time apportionment
The average monthly number of employees during the year was:
The Board of Directors are the key management personnel and they receive no remuneration or expenses (2022: £nil).
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988.
Other creditors comprise of loans from businesses and individuals to assist with funding the refurbishment of the ice rink and facilities. The loans which fall due for repayment within the next 12 months are shown in creditors within one year. The loan from RCCC was received on 1 September 2014 and is repayable over 10 years with a 2 year capital repayment holiday. The carrying value of the loan has been adjusted to reflect the remaining payments of $25,000 at the exchange rate at the balance sheet date resulting in a foreign exchange gain being recorded in the Statement of Financial Activities. The loan is interest free.
1 May 2021
1 May 2022
30 April 2023
Restricted funds are for the specific purpose of refurbishment.
1 May 2022
30 April 2023
Unrestricted
Restricted
Unrestricted
Restricted
The Trust is a company limited by guarantee and therefore has no share capital. The Trust has been granted exemption, under section 60 of the Companies Act 2006, from including 'Limited' in its name. The liability of each member of the Trust, in the event of winding up, is limited to £1.