Research Quality Association Ltd (A company limited by guarantee)

Transcription

1 Unaudited Report and Financial Statements Year Ended 30 April 2017 Company Number

2 Association information Directors D Butler V Grant T Stiles A Wilkinson L Mawer R Cope Company secretary A Wilkinson Registered number Registered office 3 Wherry Lane Ipswich Suffolk IP4 1LG Accountants BDO LLP 16 The Havens Ransomes Europark Ipswich Suffolk IP3 9SJ

3 Contents Page Directors' report 1 Directors' responsibilities statement 2 Accountant's report 3 Statement of income and retained earnings 4 Statement of financial position 5 Notes to the financial statements 6-13 The following pages do not form part of the statutory financial statements: Detailed income and expenditure account and summaries 14-17

4 Directors' report The directors present their report and the financial statements for the year ended 30 April Principal activity The principal activity of Research Quality Association Ltd ("the association") during the year was that of the provision of information, training, conferences and meetings. Directors The directors who served during the year were: D Bailes (resigned 9 November 2016) D Butler V Grant R Hodges (resigned 30 June 2016) T Stiles A Wilkinson L Mawer (appointed 9 November 2016) R Cope (appointed 9 November 2016) In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act This report was approved by the board on and signed on its behalf.... A Wilkinson Secretary 1

5 Directors' responsibilities statement The directors are responsible for preparing the directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the association and of the surplus or deficit of the association for that period. In preparing these financial statements, the directors are required to: select suitable accounting policies and then apply them consistently; make judgements and accounting estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the will continue in business. The directors are 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 They are 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. 2

6 Chartered accountants' report to the board of directors on the preparation of the unaudited financial statements of Research Quality Association Ltd for the year ended 30 April 2017 In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Research Quality Association Ltd for the year ended 30 April 2017 which comprise the statement of income and retained earnings, the statement of financial position and the related notes from the company s accounting records and from information and explanations you have given us. As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at /members/regulations-standards-and-guidance/. This report is made solely to the board of directors of Research Quality Association Ltd, as a body, in accordance with the terms of our engagement letter dated 29 June Our work has been undertaken solely to prepare for your approval the accounts of Research Quality Association Ltd and state those matters that we have agreed to state to the board of directors of Research Quality Association Ltd, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Research Quality Association Ltd and its board of directors as a body for our work or for this report. It is your duty to ensure that Research Quality Association Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Research Quality Association Ltd. You consider that Research Quality Association Ltd is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or a review of the financial statements of Research Quality Association Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts. BDO LLP Chartered Accountants Ipswich United Kingdom BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). 3

7 Statement of income and retained earnings Note Turnover 4 1,058,071 1,167,931 Cost of sales (475,394) (704,092) Gross surplus 582, ,839 Administrative expenses (577,049) (519,925) Operating surplus/(deficit) 5,628 (56,086) Interest receivable and similar income 1,944 3,570 Surplus/(deficit) before tax 7,572 (52,516) Tax on surplus/(deficit) (387) - Surplus/(deficit) after tax 7,185 (52,516) Retained earnings Retained earnings at the beginning of the year 356, ,457 Surplus/(deficit) for the year 7,185 (52,516) Retained earnings at the end of the year 364, ,941 The notes on pages 6 to 13 form part of these financial statements. 4

8 Registered number: Statement of financial position As at 30 April 2017 Fixed assets Note Intangible assets 7 29,756 40,534 Tangible assets 8 11,012 13,695 Current assets 40,768 54,229 Stocks 9 5,122 9,365 Debtors: amounts falling due within one year , ,694 Current asset investments ,200 Cash at bank and in hand 458, , , ,521 Creditors: amounts falling due within one year 12 (501,255) (392,809) Net current assets 323, ,712 Net assets 364, ,941 Capital and reserves Income and expenditure account 364, , , ,941 The directors consider that the association is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the association to obtain an audit for the year in question in accordance with section 476 of Companies Act The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - small entities. The financial statements were approved and authorised for issue by the board and were signed on its behalf on... R Cope Director The notes on pages 6 to 13 form part of these financial statements. 5

9 Notes to the financial statements 1. General information Research Quality Association Ltd is a private company limited by guarantee incorporated in England and Wales under the Companies Act The address of the registered office is on the association information page and the nature of the association s operations and its principal activities are set out in the directors' report. 2. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A - small entities of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act The association adopted FRS 102 Section 1A - small entities for the first time in the current year. The transition date to FRS 102 Section 1A - small entities was 1 May 2015, being the start of the prior period of accounts. Information on the impact of first-time adoption of FRS 102 Section 1A - small entities is given in note 18. The preparation of financial statements in compliance with FRS 102 Section 1A - small entities requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the association's accounting policies (see note 3). The following principal accounting policies have been applied: 2.2 Turnover Turnover comprises revenue recognised by the association in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts. Turnover generated from the provision of information, training, conferences and meetings is recognised in the financial statements on inception of the service being provided. Invoices are raised in advance of the service being provided. Any income generated in a financial period that relates to services not provided at that date is deferred and included with other creditors. Turnover generated from subscriptions is recognised in the financial statements for the period in which the service is being provided to members. Membership services are for the period 1 January to 31 December therefore income is deferred from 1 May for the service not provided at that date and included with other creditors. 2.3 Investments In line with FRS 102 section 7, treasury deposits held at the year end which are not repayable on demand are included as current asset investments. 6

10 Notes to the financial statements 2. Accounting policies (continued) 2.4 Research and development Expenditure on pure and applied research is written off to the statement of income and retained earnings as incurred. Development costs on defined projects, which have been assessed for the technical feasibility and commercial viability, are capitalised and amortised in relation to the revenue flows originating from the use of the product. Amortisation is provided at the following rates: Development expenditure - 20% straight line 2.5 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. 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. Depreciation is provided on the following basis: Fixtures & fittings Computer equipment - 25% straight line - 25% straight line 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 income and retained earnings. 2.6 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 out basis. 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. 2.7 Cash at bank and in hand Cash is represented by cash in hand and deposits with financial institutions repayable on demand. 7

11 Notes to the financial statements 2. Accounting policies (continued) 2.8 Financial instruments Financial assets are initially measured at transaction price (including transaction costs) and subsequently held at cost, less any impairment. Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form. Financial liabilities are initially measured at transaction price (including transaction costs) and are subsequently held at amortised cost. 2.9 Foreign currency translation Functional and presentation currency The association's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Nonmonetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined Operating leases: the association as lessee Rentals paid under operating leases are charged to the statement of income and retained earnings on a straight line basis over the lease term Pensions Defined contribution pension plan The association operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the association pays fixed contributions into a separate entity. Once the contributions have been paid the association has no further payment obligations. The contributions are recognised as an expense in the statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the association in independently administered funds. 8

12 Notes to the financial statements 2. Accounting policies (continued) 2.12 Deferred taxation Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation. A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse. Deferred tax assets and liabilities are not discounted. 3. Judgements in applying accounting policies and key sources of estimation uncertainty In preparing these financial statements, the directors have made the following judgements: Determine whether leases entered into by the association either as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. Determine whether there are indicators of impairment of the association's tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. Other key sources of estimation uncertainty Tangible fixed assets (see note 8) Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. 4. Turnover 48% of the association's turnover ( %) is attributable to geographical markets outside the United Kingdom. 5. Employees The average monthly number of employees, including directors, during the year was 8 (2016-8). 9

13 Notes to the financial statements 6. Directors' remuneration Directors' emoluments 96,254 79,317 Company contributions to defined contribution pension schemes 5,819 7,471 Directors' emoluments and other benefits include all fees paid to directors or companies they have an interest in. Of the fees listed, a total of 21,300 ( ,350), were paid in relation to RQA professional development and elearning courses, seminars and the Annual Conference. 7. Intangible assets Cost Development costs At 1 May ,109 Disposals (55,286) At 30 April ,823 Amortisation At 1 May ,575 Charge for the year 10,778 On disposals (55,286) At 30 April ,067 Net book value At 30 April ,756 At 30 April ,534 Intangible assets represent development costs for elearning courses. Amortisation is charged from the date the course is put on sale. 10

14 Notes to the financial statements 8. Tangible fixed assets Cost Plant & machinery At 1 May ,599 Additions 2,866 At 30 April ,465 Depreciation At 1 May ,904 Charge for the year 5,549 At 30 April ,453 Net book value At 30 April ,012 At 30 April , Stocks Booklet and stationery stock 5,122 9, Debtors Trade debtors 91,455 46,767 Other debtors 23,058 1,176 Prepayments and accrued income 246, , , ,694 11

15 Notes to the financial statements 11. Current asset investments Short term cash investment - 104,200 In the prior year short term cash investments represented a treasury deposit account with a balance of 104,200 which matured in December Creditors: Amounts falling due within one year Trade creditors 75,266 72,706 Corporation tax Other taxation and social security 15,653 10,870 Other creditors 5,492 2,319 Accruals and deferred income 404, , , , Company status The association is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding 1 towards the assets of the association in the event of liquidation. 14. Capital commitments There is a capital commitment at the year end for the association to replace their client relationship management system. Costs totalling 141,953 ( ,327) were incurred relating to this prior to the year end and are currently included in prepayments due to the asset not yet being available for use. The further commitment made by the association at the year end date in respect of the new client relationship management system was 21,394 ( ,688). This system was brought into use on 7 June Pension commitments The association operates a defined contributions pension scheme on behalf of the employees. The assets of the scheme are held separately from those of the association in independently administered funds. The pension cost charge represents contributions payable by the association to the funds and amounted to 20,920 ( ,967). 12

16 Notes to the financial statements 16. Commitments under operating leases At 30 April 2017 the association had future minimum lease payments under non-cancellable operating leases as follows: Not later than 1 year 11,541 14,101 Later than 1 year and not later than 5 years ,268 12,362 25, Related party transactions During the year, course fees, subscriptions and other income received from the directors was 731 (2016-2,848). 18. First time adoption of FRS 102 The policies applied under the entity's previous accounting framework are not materially different to FRS 102 Section 1A - small entities and have not impacted on equity or surplus or deficit. 13

17 Detailed income and expenditure account and summaries Note Turnover 1,058,071 1,167,931 Cost of sales (475,394) (704,092) Gross surplus 582, ,839 Gross surplus % 55.1 % 39.7 % Less: overheads Administration expenses (547,541) (491,306) Establishment expenses (29,508) (28,619) Operating surplus/(deficit) 5,628 (56,086) Interest receivable 1,944 3,570 Tax on profit on ordinary activities (387) - Surplus/(deficit) for the year 7,185 (52,516) 14

18 Schedule to the detailed accounts Turnover Course fees 568, ,822 Conferences and meetings 197, ,772 Subscriptions 190, ,678 Publications 9,897 10,649 CPD 1,709 3,670 Masters 3,358 6,775 ELearning 38,520 32,630 Advertising and other income 45,932 30,036 Webinars 2,188 2,899 1,058,071 1,167,931 Cost of sales Courses 276, ,173 Conferences and meetings 125, ,453 Subscriptions 456 2,259 Publications 59,301 64,779 CPD Masters - 29 Advertising and sundry expenditure 12,836 4,095 ELearning 1,029 6, , ,092 15

19 Schedule to the detailed accounts Administration expenses Directors salaries 74,954 56,967 Directors national insurance 9,224 6,928 Directors pension costs 5,819 7,471 Staff salaries 209, ,974 Staff national insurance 18,094 18,786 Staff pension costs 15,101 13,496 Staff training 3,099 4,703 Recruitment Travel and motor expenses 9,332 5,272 Printing, stationery and postage 20,537 18,252 Telephone and internet 3,453 3,175 Legal and professional 2,681 2,809 Accountancy fees 20,375 8,623 Board and committees 13,328 16,094 Bad debts - 2,026 Difference on foreign exchange (1,980) (774) Sundry expenses Insurances 2,446 2,557 Depreciation - computer equipment 4,838 4,245 Depreciation - fixtures and fittings Amortisation - intangible fixed assets 10,778 22,310 Awards and gifts Irrecoverable VAT 12,752 12,840 Other fees 49,895 43,147 Bank and finance charges 16,919 15,326 Marketing 44,566 19, , ,306 16

20 Schedule to the detailed accounts Establishment Rent - operating leases 13,400 13,400 Rates 9,299 8,685 Light and heat 1,990 2,290 Cleaning 1,699 1,417 Repairs and renewals Car park permit 3,070 2,767 29,508 28,619 Interest receivable Bank interest receivable 1,944 3,570 17