BSAC

The British Sub Aqua Club
Annual Report & Accounts 2005
Notes to the Financial Statements

1. Accounting Policies

(a) Basis of Accounting
The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective June 2005).
The group financial statements consolidate those of the holding company, The British Sub-Aqua Club, and its wholly owned subsidiary, BSAC International Limited.

In accordance with the exemption granted by Section 230 of the Companies Act 1985, no separate income and expenditure account is presented for the parent company. The deficit for the company was £103,986.

The financial statements have been prepared on a going concern basis.

(b) Subscriptions
Subscriptions received in advance of performance are reflected as an obligation in the balance sheet and released to the profit and loss account over the period to which the subscription relates.

(c) Tangible Fixed Assets
Long leasehold properties are stated at cost or valuation where relevant.

All other fixed assets are stated at cost.

All long leasehold properties are externally valued at least every five years subsequent to acquisition. In the period between external valuations Council review the value of the properties. Any impairment in the value of a long leasehold property is recognised in the income and expenditure account.

Computer Equipment: 25% straight line
Motor Vehicles: 25% straight line
Fixtures & Fittings: 15-33% straight line

(d) Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

(e) Foreign Currency Translation
Foreign currency assets and liabilities are translated at the rate of exchange ruling at the balance sheet date and any gain or loss arising on exchange is included in the income and expenditure account. Income and expenditure transactions in foreign currencies are translated into sterling at the exchange rate in operation on the date of receipt or payment.

(f) Leased Assets
Rentals paid under operating leases are charged to the profit and loss account when incurred.

(g) Development Costs
Research and development expenses are charged to the income and expenditure account in the year in which they are incurred.

(h) Pension Contributions The group operates a defined contributions pension scheme. Contributions payable are charged to the income and expenditure account in the year to which they relate. (i) Campaign Sponsorship & Grant Funding
Income is accounted for within the income & expenditure account in the year of receipt.


2. The Status of the Company and BSAC Branches

The Company is a company limited by guarantee without share capital. The Council members control the activities of the Company. Under the terms of the Memorandum of Association, the liability of the members is limited and every member undertakes to contribute to the assets of the Company in the event of a winding up an amount not greater than £1.

As at 31 December 2005, there were 35,235 members (2003: 38,490).

3. Operating Surplus
The following items have been charged/(credited) in calculating the operating surplus:

	2005 Group £		2005 Company £		2004 Group £		2004 Company £
Auditors’ Remuneration	12,200		9,200		12,900		9,900
Directors’ emoluments	-		-		11,116		-
Depreciation	25,020		25,020		32,216		32,216
Profit on disposal of fixed assets	-		-		(400)		(400)
	______		______		______		______

4. Staff Costs

	2005 Group £		2005 Company £		2004 Group £		2004 Company £
Salaries	426,918		426,918		439,424		428,915
Social Security Costs	43,919		43,919		41,902		41,295
Pension Costs	14,243		14,243		16,520		16,128
	485,080		485,080		497,846		486,338

The average number of employees of the Group during the year was 23 (2004: 22).

The Members of Council, as executive directors, did not receive any remuneration for their services in that elected capacity, except reimbursed expenses as detailed in note17.

5. Taxation

	2005		2005		2004		2004
	Group		Company		Group		Company
	£		£		£		£
UK Corporation Tax�
Current year provision	5,012		5,012		16,227		13,985
Under provision in prior year	-		-		3,881		3,881
Total overseas tax	1,124		1,124		5,746		3,504
Relief for overseas tax	(1,124)		(1,124)		(5,746)		(3,504)
Movement on deferred tax provision	48,723		-		8,859		-
	______		______		______		______
	53,735		5,012		28,967		17,866

Included in the taxation charge to the income and expenditure account for the year is an adjustment for deferred taxation. This adjustment relates to the corporation tax paid by BSAC International Limited on the lump sum payment received from its activities in Japan. This lump sum payment relates to a licence fee for a ten-year period from July 2000 to June 2010. The agreement in relation to this payment was cancelled in May 2005 and consequently the remaining element of deferred taxation has been released to the income and expenditure account.

6. Tangible Fixed Assets

	Long Leasehold £		Computer Equipment £		Motor Vehicles £		Fixtures & Fittings £		Total   £
Cost or valuation
At 1 January 2005	400,000		66,473		6,500		224,244		697,217
Additions	-		15,278		-		4,730		20,458
Disposals	-		-		-		(69,641)		(69,641)
	______		______		______		______		______
At 31 December 2005	400,000		82,201		6,500		159,333		648,034
Depreciation
At 1 January 2005	-		34,934		813		213,795		249,542
Charge for the year	-		17,521		1,625		5,904		25,050
Eliminated on disposals	-		-		-		(69,641)		(69,641)
	______		______		______		______		______
At 31 December 2005	-		52,455		2,438		150,058		204,951
Net book value
At 31 December 2005	400,000		29,746		4,062		9,275		443,083
At 31 December 2004	400,000		31,539		5,598		10,449		447,675
	______		______		______		______		______

A grant of £125,000 was received from the English Sports Council in 1991 and was netted off against the initial purchase price of the long leasehold property. The grant is deemed by the English Sports Council to be amortised over 21 years. In the event of the long leasehold property being sold, any unamortised element of the £125,000 grant would become repayable to the Sports Council. The contingent liability at 31 December 2005 is £39,188 ( 2004: £45,140).

The long leasehold property was valued by Beresford Adams Commercial on 2nd December 2003 on an open market basis as office accommodation at £400,000.

The historical cost of this property at the balance sheet date is £362,588.

7. Investments

	Group £		Company £
At 1 January and 31 December 2005:
Shares in subsidiary undertakings	-		2
Unlisted investments at cost	8		8
	______		______
	8		10
	______		______

The unlisted investment at 31 December 2005 is 15% of the ordinary share capital of Telford's Quay Management Company Limited.

The investment in subsidiary undertakings at 31 December 2005 represents 100% of the ordinary issued share capital of BSAC International Limited.

8. Debtors - Amounts falling due within one year

	2005 Group £		2005 Company £		�2004 Group £		2004 Company £
Trade debtors	16,661		12,963		39,892		25,583
VAT	33,258		33,258		14,217		14,217
Prepayments	88,787		88,787		119,456		119,456
Accrued income	24,235		8,550		25,251		8,760
Deferred tax	-		-		48,723		-
	______		______		______		______
	162,941		143,558		247,539		168,016

9. Creditors
Amounts falling due within one year

	2005 Group £		2005 Company £		2004 Group £		2004 Company £
Bank loan and overdrafts	-		-		29,364		29,364
Trade creditors	221,859		215,071		157,281		157,281
Due to subsidiary undertaking	-		30,680		-		64,875
Corporation tax	3,888		3,888		10,481		10,481
Taxation and social security	25,500		25,500		14,247		14,247
General accruals	27,073		22,573		34,842		31,678
Deferred course income	20,088		20,087		16,010		16,010
Deferred Japan licence income	-		-		33,024		-
Deferred membership income	474,565		474,565		493,890		493,890
Deferred school fees	6,650		-		19,495		-
	779,623		792,364		808,634		817,736

Included in taxation & social security are pension contributions outstanding of £0 (2004: £964).

Amounts falling due after more than one year

	2005 Group £		2005 Company £		2004 Group £		2004 Company £
Deferred Japan licence income	-		-		148,630		-
	______		______		______		______
	-		-		148,630		-

See note 16.

Secured debts

The following secured debts are included within creditors.

	2005 Group £		2005 Company £		2004 Group £		2004 Company £
Bank overdraft	-		-		29,364		29,364
	______		______		______		______
	-		-		29,364		29,364

The bank facilities are secured by a debenture over the assets of the group.

10. Income & expenditure reserve

	Note	2005 Group £		2005 Company £
Accumulated fund
Surplus brought forward		185,198		231,484
Prior year adjustment	15	(212,904)		(212,904)
As at 1 January 2005 (as restated)	15	(27,706)		18,580
Retained surplus/(deficit) for year		29,324		(103,986)
Surplus carried forward		1,618		(85,406)

11. Reconciliation of Movements in Members' Funds

						as restated
		2005 Group £		2005 Company £		2004 Group £		2004 Company £
Opening members’ funds (originally £298,861 before deducting prior year adjustment of £212,904)		85,957		132,243		93,354		167,142
Surplus/(deficit) for the financial year		29,324		(103,986)		(7,397)		(34,899)
Revaluation reserve increase	13	-		-		-		-
Closing members’ funds		115,281		28,257		85,957		132,243

12. Operating Lease Commitments

The following payments are committed to be paid:

	2005 Group £		2005 Company £		2004 Group £		2004 Company £
Expiring:
Within one year	14,960		14,960		-		-
Between two and five years	11,237		11,237		30,205		30,205
Total lease commitments	26,197		26,197		30,205		30,205

13. Revaluation Reserve

	Group	Company
	£	£
Revaluation reserve brought forward	113,663	113,663
Revaluation reserve increase/(decrease)	-	-
	113,663	113,663

14. Guarantees and Financial Commitments
At the year the company has a contractual commitment with regard to the publication of Dive Magazine to the value of £117,450 (2004: £111,240).
15. Prior year adjustment
A prior year adjustment has been made to reflect a change in accounting policy. The treatment of subscription income, which was previously accounted for on a receipts basis, has now been changed to recognise the income over the period to which it relates. This is detailed under accounting policies (note 1b).
16. Exceptional overseas income
This income related to a ten-year licence fee paid by BSAC Japan for the period July 2000 to June 2010. The agreement in relation to this payment was cancelled in May 2005 and consequently the balance of £148,630 has been released to the income and expenditure account.

17. Details of Directors' and Vice Presidents' Expenses
The directors had no beneficial interest in the share capital of the company.

This note details the individual Directors' gross expenses for the financial year of 2005 during the time served as a Director of BSAC and BSAC International as appropriate. It also details individual Vice Presidents' expenses.

As some, if not most, are also involved in other activities and hold other positions as a volunteer on behalf of the Club the total value is not directly attributable to Council business alone. alone.

Name		Amount		Name		Amount
		£				£
M D Allen		231		E Haynes		1,286
M F G Allen		3,703		R Healey		1,543
Dr J Betts		228		R Higgie		-
A J Clarke		571		I A N Irvine		-
P M Coulthard		1,248		K T Lawrence		1,337
E F Crook		517		A J H Marshall		3,908
D S Dixon		1,816		A Moll		953
D Ellerby		7,351		C Peddie		5,629
H Gould		-		B J Pederson		139
A Hall		1,594		A Reed		2,139
P M Harrison		6,743		M K Todd		1,284