British Parachute Association Limited

Transcription

1 British Parachute Association Limited Wharf Way, Glen Parva, Leicester, LE2 9TF Tel: Fax: Annual Report and Accounts

2 BRITISH PARACHUTE ASSOCIATION LIMITED (A Company Limited By Guarantee and not having a Share Capital under the Companies Act 2006) Company Registration No (England and Wales) REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE COMPANY INFORMATION Directors Secretary S Stanhope P Applegate M Bayada A Bond N.Bunting Y Molazadeh N Higman K Charters (Resigned ) C Poxon B Cumming M Soulsby B Vacher J D Gretton Company number Registered office Auditors Business Address CONTENTS 5 Wharf Way Glen Parva Leicester LE2 9TF Haines Watts Chartered Accountants and Statutory Auditors Sterling House 97 Lichfield Street Tamworth Staffordshire B79 7QF 5 Wharf Way Glen Parva Leicester LE2 9TF Page Council s report 2 Auditors report 3 Income statement 4 Statement of Financial Position 4 Notes to the Financial Statements 4 Reconciliation of Equity 6 Reconciliation of Profit 6 COUNCIL S REPORT FOR THE YEAR ENDED JUNE COUNCIL Chairman Vice Chairman Treasurer M Soulsby C Poxon Mrs D Carter Other Members P Applegate S Stanhope (From ) M Bayada (From ) B Cumming A Bond N Bunting (From ) N Higman B Vacher Y Molazadeh K Charters (Resigned ) J Bradford (To ) J Kelleher (To ) I Marshall (To ) I Rosenvinge (To ) G Macleod (To ) G Blamire (To ) M Lewis (Resigned ) PRINCIPAL ACTIVITIES AND REVIEW OF THE YEAR PRINCIPAL ACTIVITY The principal activity of British Parachute Association Ltd continues to be the promotion and encouragement of sport parachuting and the maintenance of safety standards. FINANCIAL PERFORMANCE We have seen an increase in membership numbers but, with subscriptions reduced, income has fallen by more than 30,000. Expenditure has risen by more than 50,500, largely due to costs associated with the office refurbishment. These have been offset by reduced Competition costs because of the timing of events. As planned, this has resulted in a reduced surplus of 296,121 for 2017 (2016: 262,166) to be carried forward. MEMBERSHIP BPA Membership totals for the membership year April to March , compared with the previous year, 2015/16: 2016/ /16 Variance Full 6,463 6,398 +1% Temporary (including Joint Services Adventurous Training) 2,652 2,552 +4% Student Provisional 60,489 58,792 +3% Weather is always a factor, sometimes a significant one, in year-on-year variance. Full BPA Membership grew by 1% year-on-year to reach a new record number of 6,463. GOVERNANCE The BPA s governing instrument, its Articles of Association, were updated at the 2016 AGM to bring them into line with best practice for good governance in sport and recreation. The newly-constituted Council of 12 (formerly 15) took their seats at the AGM on Saturday 28 January. Council comprises the Board of Directors of BPA Ltd, and all Council Members are non-executive directors. Ten seats are designated for members, who are elected by voting members (full members) and two seats are for independent non-executive directors from outside our Association. The new Nominations Committee of Council advertised these posts publicly in autumn 2016 and conducted interviews, recommending the two successful candidates to the AGM, where they were duly appointed. The period of tenure on Council under the updated Articles is three years (formerly one year) and transitional arrangements apply from to effect this change. The tenure of currently elected members varies between one and three years and the independents have been appointed for one and two years. This means that the next election, for 2018, will be for three seats and the Nominations Committee will be making a recommendation to the AGM 2018 on the appointment to one of the independent seats. REFURBISHMENT OF BPA HQ A 0.3m complete refurbishment of the BPA HQ in Leicester was carried out between June and December The refurbished building was officially BPA Annual Report and Accounts

3 opened on Tuesday 21 February The new facilities include a bigger conference room with easy access on the ground floor which can be partitioned to accommodate concurrent meetings. The office facilities on the first floor provide an improved working environment with better digital connectivity for staff to continue to provide an efficient and cost-effective service to members for years to come. STRATEGY Council held a strategy day in February as a springboard to develop its next five-year strategic plan. The previous five-year plan has been successfully completed with updating the Articles to follow best practice in good governance, an increase in full members of 13% over the last five years, improved retention, completion of the refurbishment of HQ and the pursuit of excellence across all areas of activity including safety and competitions. A review of the BPA s trading name and visual identity will be included in the plan, as we are considering adopting a trading name that follows the unambiguous naming convention now used by many National Governing Bodies of Sport, which in our case would be British Skydiving. SAFETY AND REGULATORY Safety within the sport continues to be the primary function of the BPA through our Civil Aviation Authority Approval. A focus of this is our Safety and Training Committee (STC), whose members are the Chief Instructors of the 26 BPA Affiliated Parachute Training Organisations (PTOs) who work with our professional technical staff of Tony Butler (Chief Operating Officer) and Jeff Montgomery (Safety and Technical Officer), who Chairs STC. Regrettably, there were two fatal sport parachuting accidents at BPA Affiliated PTOs in the year to June These were investigated by the BPA and the reports submitted to HM Coroner and STC, resulting in updates to the Operations Manual and other safety provisions as appropriate. New this year was a continuing personal development day for Tandem Instructors that was held on the day before the AGM and BPA Skydive the Expo in January, sponsored by UPT and the BPA s insurance brokers, Romero Sports and Leisure. The new EASA regulatory regime relating to parachute operations is now underway and its attendant upheaval is still being felt. However, airspace issues within the UK also remain of concern to all air sports, our own included, as demands from commercial operators for more controlled airspace become ever more acute. Work on updating the BPA Disciplinary Procedure was completed during the year. This was to bring it in line with best current practice, and the review included seeking independent external legal advice. The updated procedure was launched on July , just after the period of this report. Work will now begin on updating the BPA Grievance Procedure. COMMUNICATIONS, COMPETITIONS AND DEVELOPMENT COMMITTEES Changes to the composition of Council afforded the opportunity for members with appropriate skills to volunteer for committee service, which is a new opportunity for members to engage with their Association. This had already been pioneered in previous years with a number of discipline representatives on the Competitions Committee, and was extended in 2017 to the Development and Communications Committees. The Competitions Committee has reviewed and updated the criteria for funding, now termed BPA Sponsorship, of eligible top British teams to train to achieve peak performance representing us at World Parachuting Championships. Tangent, a creative technology agency based in London, won a competitive open tender to develop a new BPA website incorporating an online Personal Information Management System (PIMS), our next generation membership database. The project is being overseen by our Communications and Development Committees and is expected to go live later in 2017 or early in The Development Committee launched Rise Up, a mentoring network programme for and by members, devised and administered by Yassi Molazadeh, and launched early in 2017 and supported by a seminar at BPA Skydive the Expo in January In recognition of the growing importance of social media,, the BPA appointed its first Digital Editor, James Macca Macdonald, through a contract for services with the BPA s media partner, Archant Dialogue, working closely with Liz Ashley, Editor of Skydive the Mag, and the Dialogue team. Member activities, including members sporting achievements, in the calendar year 2017, and more on the work of BPA Committees, will be reported in the BPA Skydiving Year This non-statutory document will be published on the BPA website a few days before the AGM at EMCC Nottingham at 10:30 on Saturday 27 January AUDITORS A resolution proposing that Haines Watts Chartered Accountants be reappointed as auditors of the Association will be put at the Annual General Meeting. STATEMENT OF COUNCIL S RESPONSIBILITIES The council is responsible for preparing the Council s report and the financial statement in accordance with applicable law and regulations. Company law requires the Council to prepare financial statements for each financial year. Under that law, the Council have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law, the Council 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 Association and of the surplus or deficit of the Association for that period. In preparing these financial statements, the Council is required to: - Select suitable accounting policies and then apply them consistently; - Make judgements and estimates that are reasonable and prudent; The Council is responsible for keeping adequate accounting records that are sufficient to show and explain the Association s transactions and disclose with reasonable accuracy at any time the financial position of the Association and to enable them to ensure that the financial statements comply with the Companies Act The Council is also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So far as the council is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Association s auditors are unaware, and the Council have taken all the necessary steps that they ought to have taken as a Council in order to make themselves aware of all relevant audit information and to establish that the Association s auditors are aware of that information. AUDITORS The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting. The report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. On behalf of the Council: D Carter Treasurer October REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BRITISH PARACHUTE ASSOCIATION LIMITED We have audited the financial statements of the British Parachute Association Limited for the year ended June set out on pages 4 to 6. The financial reporting framework that has been applied in their preparation is 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). This report is made solely to the Association s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act Our audit work has been undertaken so that we might state to the Association s members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Association and the Association s members as a body corporate, for our audit work, for this report, or for the opinions we have formed. RESPECTIVE RESPONSIBILITIES OF COUNCIL AND AUDITORS As explained more fully in the Statement of Councils Responsibilities statement set out elsewhere on page 3, the Council is responsible for the preparation of the accounts and for being satisfied that they give a true and fair view. Our responsibility is to audit the accounts in accordance with applicable 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 accounts sufficient to give reasonable assurance that the accounts are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Association s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Council; and the overall presentation of the accounts. In addition we read all the financial and non-financial information in the Councils 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. BPA Annual Report and Accounts

4 OPINION ON FINANCIAL STATEMENTS In our opinion, the financial statements: give a true and fair view of the state of the Association s affairs as at June and of its surplus for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ; and have been prepared in accordance with the requirements of the Companies Act OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Council s Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Councils Report has been prepared in accordance with applicable legal requirements. In the light of our knowledge and understanding of the Association and its environment obtained in the course of the audit, we have not identified material misstatements in the directors report. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of Council s remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit; or The Council were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Council s Report. Stephen Butler BA FCA (Senior Statutory Auditor) For and on behalf of Haines Watts Chartered Accountants and Statutory Auditors Sterling House 97 Lichfield Street Tamworth Staffordshire B79 7QF INCOME STATEMENT FOR THE YEAR ENDED JUNE Note INCOME Members subscriptions Full 787, ,211 Temporary 4,332 4,239 Sales of manuals, safety information, badges 3,358 3,214 Magazine subscriptions Club affiliation 4,640 4,960 Instructor training Courses 12,239 16,088 Administration 21,733 19,750 Other income 15,031 19,775 Fair value gain on uplift of investments 6 113,260 17,504 Credit card commission receivable 1,053 1,041 Display team administration 1,350 1,150 TOTAL INCOME 965, ,106 INSURANCE Insurance received 853, ,881 Insurance paid 855, ,290 1,260 1,409 EXPENDITURE Operating costs 7 206, ,863 Staff costs 8 279, ,337 I.P.C conference 4,544 2,956 Manuals, safety information and badges 1,349 3,110 Magazine 42,224 33,766 Good governance 2,554 2,254 Miscellaneous meetings 9,292 7,252 Safety 9,292 11,202 Instructor training 31,701 33,075 Development Competitions 80, , , ,531 STATEMENT OF FINANCIAL POSITION AS AT JUNE SURPLUS FOR THE FINANCIAL YEAR 296, ,166 Note FIXED ASSETS Tangible Assets 9 387,743 62,017 Investments 10 2,202,408 2,199,587 2,590,151 2,261,604 CURRENT ASSETS Stock 2,012 2,053 Debtors , ,983 Cash at bank and in hand 12 1,118,202 1,239,828 1,244,649 1,389,864 CREDITORS amounts falling due within one year , ,058 NET CURRENT ASSETS 502, ,806 TOTAL ASSETS LESS CURRENT LIABILITIES 3,092,531 2,796,410 ACCUMULATED FUND Balance at July ,796,410 2,534,244 Surplus for the year 296, ,166 Balance at June ,092,531 2,796,410 The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. The financial statements were approved by the Council on October and were signed on its behalf by: M Soulsby Chairman 1. STATUTORY INFORMATION D Carter Treasurer British Parachute Association Limited is a private company, limited by guarantee, registered in England and Wales. The company s registered number and registered office can be found on the Company Information page. 2. STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with the provisions of Section 1A Small Entities of Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements have been prepared under the historical cost convention. Significant judgements and estimates In the application of the company s accounting policies, the Council are required to make judgement, estimates and assumptions about carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. BPA Annual Report and Accounts

5 The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods. Turnover Annual membership subscriptions are brought into account on an accruals basis, whilst temporary memberships are brought into account only when received. The accruals concept is also applied to the insurance premium which is incorporated into each membership regardless of type. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. Freehold property 2% on cost Office fixtures 20% on cost Exhibition equipment 25% on cost Training equipment 20% on cost Office equipment 25% on cost Stocks Stocks are valued at the lower of cost and net realisable value. Leasing All leases are operating leases and the relevant annual rentals are charged wholly to the income and expenditure account. Taxation Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable on taxable investment income using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. Grants Grants received from the Sports Council are dealt with as follows; Grants relating to specific capital expenditure are matched with expenditure when it is incurred. Grants relating to specific revenue expenditure are matched with expenditure when it is incurred. Pensions The company operates a defined contribution pension scheme. Contributions payable for the year are charged in the profit and loss account. Investments Investments are recognized initially at cost. Subsequently they are measured at fair value through statement of comprehensive income if the shares are publicly traded or can otherwise be measured reliably. 4. EMPLOYEES AND COUNCIL The average number of employees during the year was OPERATING SURPLUS Operating surplus is stated after charging: Auditors remuneration 3,665 3,140 Depreciation owned assets 22,521 5,016 Operating Lease Rentals 3,861 3, GAINS ON FAIR VALUE OF INVESTMENTS Gain on fair value of investments and gross interest received 115,796 18,417 Provision for Corporation Tax at 20% ( %) (2,536) (913) 113,260 17, OPERATING COSTS Rates, heat and light 7,870 6,129 Depreciation of fixed assets 22,521 5,016 Staff and Council expenses 10,814 8,514 Postage 14,047 15,322 Telephone and fax 3,482 3,738 Printing and stationery 27,838 17,508 General expenses 12,036 7,871 Hire of office equipment operating leases 3,861 3,581 Audit fee 3,665 3,140 Insurance 5,613 5,321 Legal and professional 11,212 15,221 Subscriptions 9,204 9,058 Bank charges 2,620 2,596 Credit card commissions 9,872 9,890 General meetings 4,378 6,569 Repairs and renewals 21,915 8,414 Office cleaning 3,564 2,740 Election of Council 3, CAA approval charge 27,874 27, STAFF COSTS 206, ,863 Wages and salaries 247, ,657 Social security costs 19,712 19,339 Pension contributions 8,099 9,097 Health insurance 4,363 4, TANGIBLE FIXED ASSETS 279, ,337 Competitions, Freehold Office training and land and fixtures and exhibition buildings equipment equipment Total COST OR VALUATION: At July , ,474 30, ,388 Additions 302,422 45, ,247 At June , ,299 30, ,635 Being: Improvements Valuation , ,000 DEPRECIATION At July , ,450 28, ,371 Charge for the year 7,682 14, ,522 At June , ,693 29, ,893 NET BOOK VALUE: At June ,250 37, ,742 At June ,150 6,024 1,483 62,017 The original cost of freehold land and buildings were 78,000. The brought forward freehold land and buildings were valued at estimated market value by the Council at June on the basis of continuing use. The book amount of the property has been tested for impairment in accordance with FRS102 and there is no indication that any impairment may have occurred. 10. INVESTMENTS The Association has purchased units in five investment bonds at a total cost of 2,032,667 (2016: 2,132,667). These investments are for terms of three to six years. At the Balance Sheet date, the units were valued and carried at their fair value. This represents a current valuation only and not a surrender value if the units were sold at the Balance Sheet date, as there would be costs associated with a disposal before maturity. It is the intention of the Association that these investments are held until maturity thus avoiding any costs associated with early redemption. BPA Annual Report and Accounts

6 11. DEBTORS Trade debtors 106, ,435 Other debtors 2,189 3,102 Prepayments and Accrued Income 15,783 15, CASH at bank and in hand 124, ,983 HSBC account balance 1,118,089 1,239,695 Petty cash account ,118,202 1,239, CREDITORS amounts falling due within one year Trade creditors 21,278 9,189 Corporation tax 4,725 2,319 Taxation and social security 5,443 5,418 Other creditors 208, ,723 British Team Fund 41,822 37,255 Accruals 250, ,839 Subscriptions in advance 148, ,387 Drop Zone Defense Fund 32,519 15,610 Risk Management Fund 28,756 18, LEASING COMMITMENTS Annual commitments under non-cancellable operating leases are: 742, ,058 Office equipment Operating leases which expire: Within one year 3,148 3,148 In the second to fifth year 3,622 6,770 In over five years CAPITAL COMMITMENTS 6,770 9,918 The Association had capital commitments for freehold land and buildings of 0 (2016: 249,409) at the year end, relating to the refurbishment of the existing premises. 16. RESERVES The Association aims to hold sufficient reserves to enable it to continue its activities as a going concern irrespective of any financial or operational difficulty and thus the continuance of sport parachuting in the UK. 17. LIMITATION BY GUARANTEE The Association is limited by guarantee. Each member has guaranteed a maximum of RELATED PARTY TRANSACTIONS Mr I Rosenvinge resigned as a director in the year. He is also a director of Peterlee Parachute Centre Ltd, a customer of British Parachute Association Ltd. Sales of 24,367 (2016: 39,493) were made to the company during the year. At the year end, the balance owed by Peterlee Parachute Centre was 0 (2016: 1,098). 19. PENSIONS The Association operates a defined contribution pension scheme. The assets of the scheme are held in a separate trustee administered fund. At the Balance Sheet date contributions of 0 (2016: 541) were outstanding. 20. NON AUDIT SERVICES In common with many other businesses of our size and nature, we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. 21. FIRST YEAR ADOPTION The company has adopted the provisions set out in FRS102 (Section 1A) for small companies. This is the first year that the company has prepared financial statements under the new regulatory framework. RECONCILIATION OF EQUITY JULY (DATE OF TRANSITION TO FRS 102) Effect of UK transition GAAP to FRS 102 FRS 102 FIXED ASSETS Tangible Assets 64,982-64,982 Investments 1,332,667 49,153 1,381,820 1,397,649 49,153 1,446,802 CURRENT ASSETS Stock 2,381-2,381 Debtors 132, ,547 Cash at bank and in hand 1,692,222-1,692,222 1,827,150-1,827,150 CREDITORS amounts falling due within one year 739, ,708 NET CURRENT ASSETS 1,087,442-1,087,442 TOTAL ASSETS LESS CURRENT LIABILITIES 2,485,091-2,534,244 ACCUMULATED FUND Balance at July ,165,191-2,165,191 Surplus for the year 319,900 49, ,053 BALANCE AT JUNE ,485,091 49,153 2,534,244 RECONCILIATION OF EQUITY JUNE Effect of UK transition GAAP to FRS 102 FRS 102 FIXED ASSETS Tangible Assets 62,017-62,017 Investments 2,132,667 66,920 2,199,587 2,194,684 66,920 2,261,604 CURRENT ASSETS Stock 2,053-2,053 Debtors 147, ,983 Cash at bank and in hand 1,239,828-1,239,828 1,389,864-1,389,864 CREDITORS amounts falling due within one year 853,358 1, ,058 NET CURRENT ASSETS 536,506 (1,700) 534,806 TOTAL ASSETS LESS CURRENT LIABILITIES 2,731,190 65,220 2,796,410 ACCUMULATED FUND Balance at July ,485,091 49,153 2,534,244 Surplus for the year 246,099 16, ,166 BALANCE AT JUNE ,731,190 65,220 2,796,410 RECONCILIATION OF PROFIT JUNE Effect of UK transition GAAP to FRS 102 FRS 102 TOTAL INCOME 893,039 16, ,106 EXPENDITURE Insurance (1,409) - (1,409) Administrative expenses (645,531) - (645,531) SURPLUS FOR THE FINANCIAL YEAR 246,099 16, ,166 Published November BPA Annual Report and Accounts