Financial Statements

Transcription

1 Financial Statements Badminton Union of Ireland CLG For the financial year ended 31 December 2016 Registered number:

2 Company Information Directors Kenneth George Nixon Breda Connolly (resigned 28 May 2016) Nicky Jermyn Ronan Rooney John Kelly Paul Dolan Liam Chadwick Catherine Smyth Betty Thompson (appointed 28 May 2016) Company secretary Kenneth George Nixon Registered number Registered office Irish Sports Campus Snugborough Road Blanchardstown Dublin 15 Independent auditors Grant Thornton Chartered Accountants & Statutory Audit Firm Molyneux House Bride Street Dublin 8 Bankers Allied Irish Banks PLC West End Retail Park Blanchardstown Dublin 15 Solicitors LK Shields Solicitors Upper Mount Street Dublin 2

3 Contents Directors' Report 1-2 Page Directors' Responsibilities Statement 3 Independent Auditors' Report 4-5 Statement of Comprehensive Income 6 Statement of Financial Position 7 Statement of Changes in Equity 8 Statement of Cash Flows 9 Notes to the Financial Statements The following pages do not form part of the statutory financial statements: Detailed Income and Expenditure Account and Summaries 19-21

4 Directors' Report The directors present their annual report and the audited financial statements for the year ended 31 December Principal activities The principal activity of the company during the year was the development, promotion and advancement of badminton. Principal risks and uncertainties The Board of Badminton Ireland (B.I.) takes responsibility for the oversight of risk. B.I. Risk Management Strategy has been to identify, evaluate, assess, monitor and oversee & support the C.E.O./Management Team in their implementation of B.I. Business Plans/Operations, against the key performance targets set and agreed by the Board. The key risk for B.I. is not being able to meet objectives and achieve its business plans. The C.E.O. of B.I. updates the Corporate Risk Register for the Board to review on a quarterly basis. The Chairman and Treasurer as Non-Executive Directors take the lead on behalf of the Board in reviewing the Register with the C.E.O. Badminton Ireland exposure to risk arises at 3 levels:- Corporate Strategic Risk Management Level Risk Operational Risk The Board review risk under the following key headings:- Governance Strategy Finance Legal High Performance Development There are processes and controls in place to identify, assess and evaluate the risks Badminton Ireland could be exposed to. Plans are put in place to manage and reduce the level of risk identified. A traffic light system is used, Green/Amber & Red. There are no significant risks to report to members and there are systems in place to manage the risks identified. The Board are of the view that the level of risk exposure to B.I. is minimal and at an acceptable level. Results The surplus for the year, after taxation, amounted to 14,552 ( ,741). Page 1

5 Directors' Report (continued) Directors The directors who served during the year were: Kenneth George Nixon Breda Connolly (resigned 28 May 2016) Nicky Jermyn Ronan Rooney John Kelly Paul Dolan Liam Chadwick Catherine Smyth Betty Thompson (appointed 28 May 2016) Accounting records The measures taken by the directors to ensure compliance with the requirements of Sections 281 to 285 of the Companies Act 2014 with regard to the keeping of accounting records, are the employment of appropriately qualified accounting personnel and the maintenance of computerised accounting systems. The company's accounting records are maintained at the company's registered office at Irish Sports Campus, Snugborough Road, Blanchardstown, Dublin 15. Events since the end of the year There have been no significant events affecting the company since the year end. Future developments The company plans to continue in its present activities. Statement on relevant audit information Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information. Auditors The auditors, Grant Thornton, continue in office in accordance with section 383(2) of the Companies Act This report was approved by the board on 28 April 2017 and signed on its behalf. Ronan Rooney Director Nicky Jermyn Director Page 2

6 Directors' Responsibilities Statement The directors are responsible for preparing the Directors' Report and the financial statements in accordance with Irish law and regulations. Irish company law requires the directors to prepare the financial statements for each financial year. Under the law, the directors have elected to prepare the financial statements in accordance with Irish Generally Accepted Accounting Practice in Ireland, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland' and promulgated by the Institute of Chartered Accountants in Ireland and Irish law. 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 assets, liabilities and financial position of the Company as at the financial year end date, of the profit or loss of the Company for that financial year and otherwise comply with the Companies Act In preparing these financial statements, the directors are required to: select suitable accounting policies and then apply them consistently; make judgments and accounting estimates that are reasonable and prudent; state whether the financial statements have been prepared in accordance with applicable accounting standards, identify those standards, and note the effect and the reasons for any material departure from those standards; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The directors are responsible for ensuring that the Company keeps or causes to be kept adequate accounting records which correctly explain and record the transactions of the Company, enable at any time the assets, liabilities, financial position and profit or loss of the Company to be determined with reasonable accuracy, enable them to ensure that the financial statements and Directors' Report comply with the Companies Act 2014 and enable the financial statements to be audited. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in Republic of Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. On behalf of the board 28 April 2017 Ronan Rooney Director Nicky Jermyn Director Page 3

7 Independent Auditors' Report to the Members of Badminton Union of Ireland CLG We have audited the financial statements of Badminton Union of Ireland CLG for the year ended 31 December 2016, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes. The financial reporting framework that has been applied in their preparation is Irish law and accounting standards issued by the Financial Reporting Council and promulgated by the Institute of Chartered Accountants in Ireland including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland This report is made solely to the Company's members, as a body, in accordance with Section 391 of the Companies Act 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. Respective responsibilities of Directors and the Auditor As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view and otherwise comply with the Companies Act Our responsibility is to audit and express an opinion on the financial statements in accordance with Irish law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: give a true and fair view in accordance with Generally Accepted Accounting Practice in Ireland of the assets, liabilities and financial position of the Company as at 31 December 2016 and of its surplus for the year then ended; and have been properly prepared in accordance with the requirements of the Companies Act Page 4

8 Independent Auditors' Report to the Members of Badminton Union of Ireland CLG Matters on which we are required to report by the Companies Act 2014 We have obtained all the information and explanations which we consider necessary for the purposes of our audit. In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited. The financial statements are in agreement with the accounting records. Matters on which we are required to report by exception We have nothing to report in respect of the provisions in the Companies Act 2014 which require us to report to you if, in our opinion, the disclosures of directors' remuneration and transactions specified by law are not made. Molyneux House Bride Street Dublin 8 NOEL DELANEY, FCA for and on behalf of Grant Thornton Chartered Accountants & Statutory Audit Firm 28 April 2017 Page 5

9 Statement of Comprehensive Income Note Turnover 4 1,148,321 1,179,377 Gross profit 1,148,321 1,179,377 Administrative expenses (1,134,989) (1,154,395) Operating profit 5 13,332 24,982 Interest receivable and similar income 7 1, Profit before tax 14,552 25,741 Profit for the year 14,552 25,741 Other comprehensive income for the year Total comprehensive income for the year 14,552 25,741 All amounts relate to continuing operations. The notes on pages 10 to 18 form part of these financial statements. Page 6

10 Statement of Financial Position As at 31 December 2016 Fixed assets Note Tangible assets 9-20,540 Current assets - 20,540 Stocks 10 68, ,618 Debtors: amounts falling due within one year 11 23,943 36,133 Cash at bank and in hand , , , ,898 Creditors: amounts falling due within one year 13 (329,480) (382,464) Net current assets 261, ,434 Total assets less current liabilities 261, ,974 Net assets 261, ,974 Capital and reserves Profit and loss account 261, ,974 Shareholders' funds 261, ,974 Ronan Rooney Director Nicky Jermyn Director Date: 28 April 2017 The notes on pages 10 to 18 form part of these financial statements. Page 7

11 Statement of Changes in Equity Retained earnings Total equity At 1 January , ,974 Comprehensive income for the year Profit for the year 14,552 14,552 At 31 December , ,526 Statement of Changes in Equity For the Year Ended 31 December 2015 Profit and loss account Total equity At 1 January , ,233 Comprehensive income for the year Profit for the year 25,741 25,741 At 31 December , ,974 The notes on pages 10 to 18 form part of these financial statements. Page 8

12 Statement of Cash Flows Cash flows from operating activities Profit for the financial year 14,552 25,741 Adjustments for: Depreciation of tangible assets 20,540 32,808 Interest received (1,220) (759) Decrease/(increase) in stocks 117,759 (56,376) Decrease in debtors 12,190 11,733 (Decrease)/increase in creditors (52,984) 68,010 Net cash generated from operating activities 110,837 81,157 Cash flows from investing activities Purchase of tangible fixed assets - (8,504) Interest received 1, Net cash from investing activities 1,220 (7,745) Net increase in cash and cash equivalents 112,057 73,412 Cash and cash equivalents at beginning of year 386, ,735 Cash and cash equivalents at the end of year 498, ,147 Cash and cash equivalents at the end of year comprise: Cash at bank and in hand 498, , , ,147 Page 9

13 Notes to the Financial Statements 1. General information Badminton Union of Ireland CLG is a company limited by guarantee, which is registered and incorporated in the Republic of Ireland. The Company's registered office is at Snugborough Road, Blanchardstown, Dublin Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and Irish statute comprising of the Companies Act The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied: 2.2 Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: the amount of revenue can be measured reliably; it is probable that the Company will receive the consideration due under the contract; the stage of completion of the contract at the end of the reporting period can be measured reliably; and the costs incurred and the costs to complete the contract can be measured reliably. 2.3 Tangible fixed assets Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The Company 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 Company. 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. Page 10

14 Notes to the Financial Statements 2. Accounting policies (continued) 2.3 Tangible fixed assets (continued) 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: Hover courts Software development Office equipment - 4 years - 4 years - 4 years 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 the Statement of Comprehensive Income. 2.4 Stocks Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. 2.5 Debtors Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. 2.6 Cash and cash equivalents Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the 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 Company's cash management. 2.7 Financial instruments The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. Page 11

15 Notes to the Financial Statements 2. Accounting policies (continued) 2.7 Financial instruments (continued) Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are measured: at fair value with changes recognised in the Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably; at cost less impairment for all other investments. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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. Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives. 2.8 Creditors Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. Page 12

16 Notes to the Financial Statements 2. Accounting policies (continued) 2.9 Interest income Interest income is recognised in the Statement of Comprehensive Income using the effective interest method. 3. Judgments in applying accounting policies and key sources of estimation uncertainty Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgments and estimates have been made include: Useful lives of depreciable assets The annual depreciation charge depends primarily on the estimated lives of each type and component of asset and, in certain circumstances, estimates of fair values and residual values. The directors annually review these asset lives and adjust them as necessary to reflect current thinking on remaining lives in light of technological change, prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have significant impact on depreciation charges for the period. It is not practical to quantify the impact of changes in asset lives on an overall basis, as asset lives are individually determined, and there are a significant number of asset lives in use. The impact of any change would vary significantly depending on the individual changes in assets and the classes of assets impacted. 4. Turnover An analysis of turnover by class of business is as follows: Sport Ireland 578, ,722 Other income 293, ,960 Affiliations 276, ,695 1,148,321 1,179,377 All turnover arose in Ireland. Page 13

17 Notes to the Financial Statements 5. Profit on ordinary activities before taxation The operating profit is stated after charging: Depreciation of tangible fixed assets 20,540 32, Employees Staff costs were as follows: Wages and salaries 244, ,947 Social insurance costs 25,429 21, , ,304 Capitalised employee costs during the year amounted to NIL ( NIL). The average monthly number of employees, including the directors, during the year was as follows: No. No. Management staff Interest receivable Other interest receivable 1, , Page 14

18 Notes to the Financial Statements 8. Taxation The company is not liable to Corporation Tax as it is a non-profit organisation. 9. Tangible fixed assets Hover courts Software development Office equipment Total Cost or valuation At 1 January ,120 10,807 58, ,412 At 31 December ,120 10,807 58, ,412 Depreciation At 1 January ,375 10,807 44, ,872 Charge for period on owned assets 6,745-13,795 20,540 At 31 December ,120 10,807 58, ,412 Net book value At 31 December At 31 December ,745-13,795 20,540 Page 15

19 Notes to the Financial Statements 9. Tangible fixed assets (continued) In respect of prior year: Hover courts Software development Office equipment Total Cost or valuation At 1 January ,120 10,807 49, ,908 Additions - - 8,504 8,504 At 31 December ,120 10,807 58, ,412 Depreciation At 1 January ,346 8,927 30,791 84,064 Charge for period on owned assets 17,029 1,880 13,899 32,808 At 31 December ,375 10,807 44, ,872 Net book value At 31 December ,745-13,795 20,540 At 31 December ,774 1,880 19,190 44, Stocks Finished goods and goods for resale 68, ,618 68, , Debtors Other debtors Prepayments and accrued income 23,695 35,885 23,943 36,133 Page 16

20 Notes to the Financial Statements 12. Cash and cash equivalents Bank and cash balances 498, , Creditors: Amounts falling due within one year Trade creditors 21,087 72,071 Taxation and social insurance 2,040 4,459 Accruals 203, ,541 Deferred income 102, , , ,464 Other taxation and social insurance PAYE/PRSI control 2,040 4,459 2,040 4, Financial instruments Financial assets Financial assets measured at fair value through profit or loss 498, ,147 Financial assets that are debt instruments measured at amortised cost , , ,495 Financial liabilities Financial liabilities measured at amortised cost (224,584) (273,612) (224,584) (273,612) Financial assets measured at amortised cost comprise of cash at bank and other debtors. Financial Liabilities measured at amortised cost comprise of trade creditors, accruals and payroll taxes. Page 17

21 Notes to the Financial Statements 15. Company status The company is 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. 16. Approval of financial statements The board of directors approved these financial statements for issue on 28 April 2017 Page 18

22 Detailed profit and loss account Turnover 1,148,321 1,179,377 Gross profit 1,148,321 1,179,377 Less: overheads Administration expenses (1,134,989) (1,154,395) Operating profit 5 13,332 24,982 Interest receivable 1, Profit for the year 14,552 25,741 Page 19

23 Schedule to the Detailed Accounts Turnover Sport Ireland Grant 320, ,223 Sport Ireland HP grant 197, ,499 Sport Ireland Women in sport 40,000 40,000 Sport Ireland exceptional 21,600 - Affiliations - Connaught 26,803 24,579 Affiliations - Leinster 139, ,191 Affiliations - Munster 73,420 60,789 Affiliations - Ulster 36,795 37,136 Commercial 58, ,861 Events income 124, ,262 Coaching income 26,653 34,647 Camps / squads 15,726 22,759 Schools 5,435 9,572 Income from core activities 6,505 52,377 Academy 56,510 46,482 1,148,321 1,179,377 Page 20

24 Schedule to the Detailed Accounts Administration expenses Staff salaries 244, ,947 Staff national insurance 25,429 21,357 Staff training 12,011 11,235 Hotels, travel and subsistence 18,072 30,274 Marketing 8,966 9,798 Legal and professional 8,332 15,251 Auditors' remuneration 5,535 5,535 Accountancy fees 17,712 17,241 Bank charges 1,702 7,955 Rates 14,222 16,121 Insurances 26,333 28,486 Depreciation 20,540 32,732 Ulster branch 16,519 17,020 Women in Sport 40,837 40,140 Office costs 43,145 53,260 Munster branch 16,419 15,406 Leinster branch 47,562 44,330 High performance 154, ,871 Events 110, ,730 Development 127,323 92,489 Academy 60,334 71,090 Camps / squads 40,553 42,004 Court officials 9,059 17,139 Core activities 29,289 28,044 Connaught branch 6,917 5,020 Coaching 28,225 23,920 1,134,989 1,154,395 Interest receivable Bank interest receivable 1, , Page 21