LIVERPOOL FC FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31st May 2022 Charity No: 1096572 Company No: 04587220 ABXDX9VO* 1$10212023 COMPANIES HOUSE #192 LIVERPOOL FC FOUNDATION Annual Report and Flnanclal Ststements Contents Page Company Infom)atlon Trustees. Annual Report 2-12 Independent Auditors, Report 13-17 Statement of Financial Activitiès 18 Comparative Statement of Financial Activities 19 Balance Sheet 20 Statement of Cash Flows 21 Notes to the Flnancial Statements 22-37 LIVERPOOL FC FOUNDATION Charity Reference and Administrative Details 31st May 2022 Charity number. 1096572 Company number. 04587220 Trustees: Susan Black mon Bowers Billy Ho8an Davinder Jhamat Gavin Laws Matthew Parish Linda Pi2ZUti Tom Werner Laura Weston 5e¢reo•rv: Lynn Taylor Registered office: Anfield Road Liverpool L4 OTH Bankers: The Royal Bank of Scot13nd PIC l Dale Street Liverpool L2 2PP ststutory Audltors- Mitchell Charlesworth (Audit) ￿Mited Accountants 5 Temple Square Temple Street Liverpool L2 5RH LIVERPOOL FC FOUNDATION Truslees, Annual Report For the year ended 315t May 2022 The trustees present their report together with the audited financial statements of the charity for the year ended 31st May 2022. The trustees have adopted the provisions of the Statement of Recommended Practice ISORPI "Accounting and Reporting by Charities" IFRS1021 in preparing the annual report and financial Statements of the charity. The financial statements have been prepared in actordante wtth the accounting policies set out in note I to the financial statements and comply with the charitws governing document. the Charities Act 2011 and Accounting and Reporting by Charities- Statement of Recommended Practice applicable to tharities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republit of Ireland published in October 2019. Trustees of the charlty The directors of the charitable company are the trustees for the purposes of charity law. The trustees who have served during the year and sinte the year end were as follows: Susan Black Simon Bowers Billy Hogan Davinder Ihamat Gavin Laws Matthew Parish Linda Pi22Uti Tom Werner Laura Weston StNcture, Govefnance and Management Governing document The Charity is a company limited by guarantee, incorporated on Ilth November 2002, and 15 therefore governed by a Memorandum and Articles of Association. which are subject to regular review. The Articles of Association were fomially rewewed, updated. and adopted on 12th May 2021. Trustee appointment. induction, and training In accordance with the Artitles of Assotiation and the Trustee Recruitment Policy. all trustees are appointed following a formal process and with regard to a board skills analysis. The 12th May 2021 revision to the Articles of Association included provision to increase the size of the board from 10 to 12, with up to six trustees nominated by Liverpool FC. and up to six independent trustees appointed by the board. Each trustee automatitally becomes a member on their appointment to the Charity.. On appointment, trustees complete a registerof interests. The Foundation is committed to providing trustee5 with a thorough induction, and access to trainin& which includes safeguarding. Trustees are invited to key fundraising events. and to observe programme delivery in action. The chair of trustees is appointed by the board. 21Page LIVERPOOL FC FOUNDATION Trustees, Annual Report {contlnued) For the year ended 315t May 2022 Organisatlon The board of trustees, which, in accordance with the Articles of Association. shall be no less than three members, and a maximum of twelve. is responsible for the overall governance and strategic direction in accordance with legal and statutory regulations. Trustees meet a minimum of three times a yearand provide strategic advice to the Chariws senior leadership team. The Finance Sub-committee. chaired by the chair of trustees. reports back to the board of trustees. A CEO is appointed by the board to manage the day-to-day operation. To facilitate effective operations. the CEO, Matthew Parish, has delegated authority, within the Charivs Govemance Framework and Scheme of Delegation approved by the board of trustees annualfy. The CEO is appointed as a trustee by the Charity whith is allowed under the Articles of Association. The CEO leads a senior leadership team responsible for the day-to-day operation of the charity. The senior leadership team comprises.. CEO Head of Finance Governance Manager Head of Marketing and Business Development Head of Sport and Inclusion Head of Youth and Skills Policy on setting the remuneration of the senior Management Team The Charity facilitates a performance management framework for all staff. Remuneration of the Charivs staff is overseen by the LFC Foundation board of trustees. receiving advice from Liverpool FC HR benchmarking (referring to equivalent roles across the charity sector). Risk Management The trustees are aware of their responsibilities to identify. assess and manage the risks to which the Charity is exposed and to ensure appropriate controls are in place. The Risk Management Procedures is reviewed bv the board annually. the Risk Register is regularly reviewed at trustee board meetings. Safeguarding policy and procedures are in place and reviewed annually by the board of trustees. Safeguarding is reported at each trustee board meeting. The chair of trustees sits on the Liverpool FC Safeguarding Management Group. Trustees receive an annual safeguarding policy briefing by the LFC Director of Safeguarding. All staff are recruited in accordance wtth the Charivs Safer Recruitment Policy including DBS checks and undergo mandatory Safeguarding training. Financial risk5 are mitigated. The Reserves and Investments policies are subject to annual review. Internal and external investment is monitored. evaluated. and reported to tnjstees. 31Page LIVERPOOL FC FOUNDATION Trustees. Annual Report Icontinuedl For the year ended 31st May 2022 Oblective5 and activities The Charity provides community football and sports related physical activity, education. health. social inclusion, and other charitable activities on behalf of The Liverpool Football aub and Athletic Grounds Limited (Liverpool Football Clubl. The Charity's objects are for the benefit of the public generally, both in the United Kingdom and overseas and, in p3rticu13r, the inhabitants of Liverpool. Merseyside and their surrounding areas- to promote tommunity Participation in healthy recreation by providing facilities for the playing of association football and other sports capable of improving health- to provide and assist in providing facilities for sport. recreation or other leisure time occupation of such persons who have need for such facilities by reason of their youth, aBe. infirmity or disablement, poverty or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving their conditions of life- to advance the education of children and other persons through such means as the trustees think fit in accordance with the law of the charty- and for the general purposes of such charitable bodies or for such other exclusivety charitable purwses as the trustees may from time to time decide. Public Benefit The trustees have had due regard to the guidance published by the Charity Commission on public benefit. Rev•ew ot activities The LFC Foundation is the official charity of ￿VerpoOl Football Club. Our vision is to become the world's leading football dub foundation that changes the lives of young people and families. We share the values of Liverpool Football aub- ambition. commitment, unity. and dignity. Our mission is to bring together the LFC family to create life changing opportunities for young people and families in the most underserved communities within the Liverpool City Region and beyond. The primary funttion of the Charity is to deliver impoctful 3rtivities and services that improve the life and health chances of children and young people. and to generate income for sustainability through restricted (grant funding) and unrestricted income {fundraisingl. The Foundation mainly operates in areas of high deprivation across Liverpool City Region, which is the most deprived city region in England. We strategically target our work in the most deprived areas by operating in schools, community facilities. parks and open spaces to ensure we are able to engage directly with these hard-to-reach communities. 41Page LIVERPOOL FC FOUNDATION Trustees, Annual Report (continued) Foi the year ended 315t May 2022 Review of actlvlties (continued) We deliver our programmes across six key areas:. Sport and Physical Activity Health and Wellbeing Education and Life Skills Employment and Training Community Engagement Youth Interventions Foundotio LEC LFC Foundation: This is The Liverpool Way Strategy OveThiew 2021- 2025 Lknlty.Dlynity.AfftbttlonandCornrnlln%Di Ourofftbwo 51page LIVERPOOL FC FOUNDATION Trustees, Annual Report {continued} For the year ended 315t May 2022 Revlew of artivltles lcontlnued) Driving Sustainable Social Impact GDODHEILIH INOIYllL'.8DN£ QW¥f By 2025 we wlll: 17 SUSTAINA8LE For inforffla¢jgn Our key partner organisations who support our programmes financially include:_ Premier League Charitable Fund IPLCFI Professional Players Association IPLPFAI Steve Morgan Foundation Liverpool Football Club Merseyside Police Merseyside Fire and Rescue Service Action for Children Home Office Liverpool City Council Knowsley Council Sefton Council Standard Chartered Foundation Kodansha SC Johnson Nike Islamic Relief The National Lottery Community Fund Alder Hey Children's Hospital The Learning Foundry Violence Reduction Partnership Karlsson Jativa Charitable Foundation Trent Alexander Arnold Regenda Housing 61page LIVERPOOL FC FOUNDATION Trustees, Annual Report (continued) For the year ended 31st May 2022 Revlew of a¢tivities (continued) The location of our programme delivery tontinues to expand. Anfield Sport and Community Centre remains our home but we deliver across schools. parks, pitthes. leisure centres and community settings across the Liverpool City Region. We also run programmes with our international charity partner in Thailand and Senegal. This year we launched our Global Works programme in New York and New Jersey in partnership with the Standard Chartered Foundation. A breakdown of our programmes is shown below.. Premier League Primary Stars- works with local schools to develop skills and ambition of young people aged S to 11 years, in both a sports and classroom environment. The programme is offered free to all Primary Schools in the L4,5 & 6 postcodes and Kirkby. Premier League Inspire5 - uses the power of football clubs and the Premier League to engage young people who are not involved in education. training or employment and raise aspirations. It is delivered within High Schools in Liverpool. Into University North Liverpool - an education project run by national education charity Into University in partnership with the University of Liverpool and LFC Foundation. which aims to engage children and young people in areas of high deprivation, raise their aspirations and support them in their academic studies. County Lineslonside (Home OffKel - LFC Foundation and Merseyside Police have joined forces to help address the issues around youth and gang crime in conjunction with schools in Merseyside. Thi5 highly targeted programme provides students with key skills, confidence and the resilience needed to overcome obstacles and choose the right pathways in life. #iwill - £1.23m match funded project which seeks to increase participation in s￿131 action by young people aged 8 to 14 years old. The aim is to embed social action in young people's life choices, so tt becomes a lifelong behaviour. We also have an extension project that sits under the #l Will umbrella and focuses on engaging with young people from SEND and Alternative Education settings. SF)Ort Works - Targeted employability intervention working with young people aged 16-25 who have a passion for sport. The programme aims to upskill young people with the right qualifications to pursue a career in sport whilst supporting them with employability skills along the way. Delivered in partnership with Regenda Housing and with funding from PLPFA. Youth Works - working alongside Liverpool City Council to recruit young people with a passion for youth work into the sector. The programme will see eight younE people trained up as fully qualified youth workers through a two-year apprenticeship overall supporting the ciws youth provis￿n. This is funded via the PLPFA. Street Soccer - A focused 12-week employability programme for homeless young people aged 18-24. The programme develops employability skills through group work sessions whilst using football as the vehicle for engagement. Kicks Targeted - targeted 1-2-1 youth programme to support those identified by the local police into positive pathways. 71Page LIVERPOOL FC FOUNDATION Trustees, Annual Report (continued) For the year ended 31st May 2022 Review of artivities (continued) Volunteering- Our volunteering programme is delivered across our community hubs and with our university partners. Go Play - our family multi-sport and physical artivity project designed to 5UPPOrt families to be more active together- utilising parks. community venues and open spaces across the Liverpool City Region. The PL Kicks programme continues to support and engage teenagers at risk of crime. The programme now also incorporates our disability and girls football provision. We have expanded our Kicks delTvery and set up SMF Kicks which are new sessions funded through the Steve Morgan Foundation. Premier League Kicks Football+ - a joint initiative with Merseyside Fire and Rescue Service helping to reduce anti-social behavior and criminal artivity and encouraging long-term personal growth and development. We have expanded our offer to include an Inclusive programme and girfs only provision. Holiday Football Camp5- We provide a Iow-C05t football camp offer alongside free camps delivered in Anfield, Kirkby and Tomteth. Mini Players- paid for coaching session for young people aged 4-6 years old. Girls School Football-we deliver sessions for girls at lunchtime or after school across six schools in Liverpool. Military Veterans supports veterans in Liverpool City Region back into civilian life by offering football coaching sessions and local tournaments. This season we have expanded our provision to have a bigger emphasis on older veterans and 5UPPOrting veterans. families. MOVE - This programme is delivered in partnership with Alder Hey Children's Hospital. We support young people living with Cystic Fibrosis. respiratory conditions and endocrine patients in a hospital 5ettin& supporting them to take part in physical artivity in a community setting. We have expanded this model with funding from the PLPFA to include asthma and endocrine patients. SMF Kicks - The funding from the Steve Morgan Foundation has enabled us to grow our Kicks programme expanding our hub sites across the Merseyside region. SMF Works - Employability programme funded through the Steve Morgan Foundation. which seeks to support young people into work. education or training. SMF SEN Schools- We deliver PE sessions in 15 SEN schools across Merseyside funded via the Steve Morgan Foundation. SMF Community Hubs - We have created a community wellbeing hub model whith allows us to support community sites across six areas of Merseyside creating "community hubs" We have supported each hub with facility refurbishments and are now running our programmes from these hub sites. Game On-a multi-sport programme in partnership with thePLPFAand Nike. This programme supportsyoung people to try new sports creating a pathway into local sports clubs. We also run a coach mentoring programme through the additional funding from Nike. 81paee LIVERPOOL FC FOUNDATION Trustees, Annual Report (continued) For the year ended 31st May 2022 Revlew of actlvities (contlnuedl Player Development Centers- Paid for grassroots football coaching programme. Trent Alexander Arnold Games Programme - Fun football play sessions for children aged 4-6 years old. On Target- a school mental health programme funded by the PLPFA and Artion for Children. Mental Health Workshops together with the fan group Spirit of Shankly. we have started to deliver workshops and campaigns around suicide prevention in men. Robbie Fowler Education Football Academy IFEFAI- We partner with FEFA to deliver a post 16 education and football offer. New for 2021-2022 Onside (Alternative Educationl-The Onside, programme funded by the PLFPA aims to support a wide ranEe of young people aged 11-16-year-old in schools across Merseyside. The programme targets those who are at risk of leaving mainstream education andlor on the cusp of criminality and identified by Merseyside Police. Sound Minds- A music and mental health programme funded by the Karlsson Jativa Charitable Foundation SUPPOrting young people to manage their mental wellbeing effettively. National Citizen SeNice INCS) is a youth programme targeting 16-17 year-olds to entourage social mixing nd community engagement taking place across summer and autumn holiday periods. Global Works is a sport-based employability programme delivered across New York and New Jersey that also comprises corporate mentoring and tailored career SUPF)Ort that targets those furthest from the job market. Target- 160 participants each year. Man2Man - a new men's mental health programme in partnership with Sean'5 Place a Liverpool based charity supporting men from across the region. Intematlonal Development As the official charity of a truly global football club. the LFC Foundation has alway5 aspired to develop its international reach and impact. In October 2020 we launched the 'Side by Side. campaign. which is our official charity partnership with Right To Play an International charity that uses sport & play to empower children in some of the most underserved tommunities in the world. Currently we are operating in four hiEh need tommunities in Bangkok, Thailand. We also partneron a Girls Empowerrnent programme in Senegal. We have also been engaging the global LFC family through a new initiative called the This Means More Challenge., which encourages our Official Liverpool Supporters Clubs IOLSCS) to do something positive for their local community and take part in fun & creative challenges. 91Pa8e LIVERPOOL FC FOUNDATION Trustees, Annual Report {continued) For the year ended 31st May 2022 International Development (continued) In January 2022 we also launched our 'Works' employability & mentoring prog￿rnme in New York & New Jersey which like the programme in Liverpool use5 the power of LFC and sport to engage young people and work with them to develop their employability skills. The programme is run in partrbership with the Standard Chartefed Foundation. Achievements and Perfomiance As with most charities the global COVID pandemic presented challenges during the 2019120 and 2020/21 financial year, however most of the Foundations programmes and initiatives had resurned in full by the start of202112022. The biggest impact has been on our ability to generate unrestritted funds via events. most notablythe annual LFC Legends Charity game at Anfield stadium which have previously generated between £0.8m and £l.Om of unrestricted income per game. Initially cancelled in March 2020 when we were scheduled to play against Barcelona Legends. with the game having sold out within 6 weeks of launching in November 2019, again we were unable to njn the game in March 2021. We were finally able to run the event in March 2022 and Anfield was again sold out generating over £1.6m gross income and a surplus of £l.Im unrestricted income after costs. For the first time we also took a LFC Legends team to play Manchester United Legends at Old Trafford in May 2022. in a reciprocal arrangement. no fee was reteived but a return leg scheduled for Anfield in September 2022. Despite the challenges of the Pandemic the Foundation has grown and in fact had its highest ever turnover in 2020121 at £3.7m. This wa5 primarily achieved by securing additional restricted grant funding, m05t notably from the Steve Morgan Foundation, the Department for Digital. Cvlture, Media and Sport IOCMSI and Nike. This growth has continued this year with a turnover of £6.4m in 2021122. This has been achieved through maintaining existing restricted income via grants and growing unrestricted income via the Legends game. plus two new funding sources'Red Hearts, and being beneficiaries of LFCS NFf release. 'Red Hearts, was launched in June 2021 and was a major giving initiative encouraging donations to svpport the work of the Foundation, this resulted in just over £0.4m income during its first year. Liverpool Football Club released its first range of NFT digital collectables 'LFC Heroes. in April 2022 with the Foundation being beneficiaries from some of these sales and receiving £0.2m income to support Schools, Employment, and Inclusion programmes. The return to full stadiums also allowed us to run a full season of matchday lottery at every home LFC game. this generated net pr¢xeeds of £0.17m which is used to support adult health initiatives including the Military Veterans programme. The increased turnovèr allowed the Foundation to support 54,¢JX) people during the year as highlighted in our first ever Impact Report. The rewrt also showed that we produced a social return on investment of £15.29 for every £1 spent, with 54% of participants on Foundation programmes living in the top IO% most deprived local authority wards in the tountry. It also demonstrated that 85% of participants reported an improvement in their mental healthlwellbeing and 86% an improvement in their physical healthlfitne55. IOIPage LIVERPOOL FC FOUNDATION Trustees, Annual Report {continued) For the year ended 31st May 2022 Flnanclal review Income for the year was £6,373,183. Fundrng is a mixture of both restritted and unrestricted with any unspent amounts at the balance sheet date bein8 carried forward to be spent in the next financial year. At 31st May 2022 total reserves stood at £3,175,276 of which £2.651.397 were unrestrirted including a £150.000 cash reserve to ensure financial resilience {as per the reserves policy below). Reseryes poliry It has been agreed by trustees that it is prudent to have an amount of cash reserve to cover future unknowns in the receipt of unrestritted funds. This amount should be held separately from the Charity'5 Other cash balances. The Reseryes policy is reviewed annually in line with Charity Commission guidance. Our objective 15 to maintain a cash reserve of £150.Cm. Investment policv The investment policy of Liverpool FC Foundation aims to minimise risk and maintain liquidity. Funds will be diversified, where appropriate across banking institutions on short to medium term depDSlts. which can be easily accessed in line with the Charity's Reserves policy. Interest rates will be reviewed biannually to ensure the most competitive rates are sourced. Trustees will be briefed on the status of investment values and interest rates on a quarterly basis or more frequently ff $18nificant changes arise. The Investment Policy is reviewed annually in line with Charity Commission guidance. Plans for the future LookinE longer term. the charl￿sfIVe-veaT strategy will continue to be developed over the next year focusing on business planning for growth, continuing to deliver high quality and impactful programmes atross the Liverpool City Region and building an international platform for programme delivery through our partnership with Right To Play and by seeking to continue to engage LFC supporters around the world. As the profile of the LFC Foundation continues to grow we will progress opportunities to increase our impart and develop our partnership working to fully utilise the power of the LFC family and badge to improve lives and engage the very hardest to reach. Trustees. responsibillties statement The trustees (who are also direclors of bverpool FC Foundation for the purposes of company lawl are responsible for preparing the Trustees. Annual Report (including the Strategic Report) and the financial staternents in accordance with applicable law and United Kingdom Accounting Standards (United Kingdorn Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year, which give a trve and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. LIVERPOOL FC FOUNDATION Trustees. Annual Report Icontlnued) For the year ended 31st May 2022 Trustees, responslbllities statement Icontinuedl In preparing these financial statements. the trustees are required to- selert suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP 2019 IFRS 1021. make judgements and estimates that are re350nable and prudent. state whether applicable UK Accounting Standards have been followed. subject to any material departures disclosed and explained in the financial statements. prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable cornpany will continue in operation. The trustees are responsible for keeping adequate accounting retords that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2¢)J6. They are al￿ responsible for Safeguarding the assets of the charitable company and hence for ta￿n8 reasonable steps for the prevention and detection of fraud and other irregularities. We. the diredors of the company who held office until the date of approval of these financial statements as set out above each confirm. so far as we are aware. that- _ there is no relevant audit information of which the charitable companrfs auditor is unaware. and we have taken all steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information. and to establish that the compan￿$ auditor is aware of that information. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable compan￿5 website- legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Auditor Mitchell Charlesworth (Audit) Limited is willing to continue in office and a resolution for its reappointment was passed at the 2020 Annual General Meeting. Byorder ofthe Board Gavin Laws Trustee 8 February 2023 121Page Mitchell Charlesworth (Audit) Limited Accountants 5 Temple Square Temple Street Liverpool L2 5RH LIVERPOOL FC FOUNDATION Independent Auditorfs Report to the Members of Liverpool FC Foundation for the year ended 31st May 2022 Opinio We have audited the financial statements of Livèrpool FC Foundation (the'chariVI for the year ènded 31st May 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements. including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including FRS 102 The Financial Reporting Standard applicable in the UK and ftepijblic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion thè finantial statèments= give a true and fair view of the state of the charitsble company's affairs as at 31st May 2022 and of its incoming resources and applrcation of resources, for the year then ended. have been properly prepared in accordance wth United Kingdom Generally Accepted Accounting Prartice- and have been prepared in accordance with the requirements of the Companie5 Act 2(￿. Basis for opinion We conducted oijr audit in accordance with Intemational Standards on Auditin8 IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are fvrther described in the Auditor's responsibilrties for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical ￿quirementS that are relevant to ouraudit of the financial statements in the UK, including the FRC'5 Ethi£al Standard. and we have fulfilled our other ethical responsibilities in actordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a ba515 for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded that the trustees, vse of the Éoing concern basis of accountinÈ in the preparation of the financial statements 15 appropriate. Based on the work we have performed, we have not identified any material uncertainties relatin8to events or conditions that. individually or collectively. may cast SlEnificant doubt on the charitys ability to continue as a going concern for a period of at least twelve months from when the financial statements are authori5Èd for issue. Our responsibilities and the responsibiltties of the trustees wth respect to going concern are described in the relevant sections of this report. 131Page Mitchell Charlesworth (Audit) Limited Accountants 5 Temple Square Temple Street Liverpool L2 5RH LIVERPOOL FC FOUNDATION Indepeniient Auditorfs Report to the Members of Liverpool FC Foundation for the year ended 315t May 2022 Itmtinuedl Other Informatlon Thè other informatton comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible forthe other inforrnation contained within the annual report. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicitly stated in our report. we do not express anyform of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so. considèr whether the olhei infomi&ion is maierially inconsistent with the financial statements Of our knowledge obtained in the course of the audit. or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether this give5 rise to a material misstatement in the financial ststemènts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of thi5 Other information, we are required to report that fact. We have nothing to report in this regard. Op5nlons on other matters prescribed by the Companies A(t 21￿$ In our opinion, based on the work undertaken in the covrse of the audit= the information given in the trustees. report. which includes the directors. report and the strategic report prepared fof the purposes of tompany law. forthe financial yearforwhich the finantial statements are prepared is cortSi5tent with the financial statement5- and the strategic report and the directors. report included within the trustees, report have been prepared in accordance with applicable legèl requirements. Mattérs on whith we arè rèquiréd to rèport by èxception In the light of the kl￿WIedgt and undèrstanding of the chartty and its environment obtained in the course of the audit. we have not Identified material misststements in the strategic report or the directors. report included within the trustees, report. We have nothing to report in respect of the follow¢ng matters in relation to which the Cornpanie5 Art 2¢)06 requires us to report to you if. in tyjr opinion.. adequate accounting records have not been kept. or returns adequate for our audit have not been reteived from branches not visited by us.. or the financial statements arè not in agreement with the accounting records and ietums- or certain disclosures of trustees, remuneration specified by law arè not made.. or we have not received all the information and explanaiions we require for our audit. 141Pa8e Mitchell Charlesworth (Audit) Limited Accountants 5 Temple Square Temple Street Liverpool L2 5RH LIVERPOOL FC FOUNDATION Independent Auditorfs Report to the Members of Liverpool FC Foundation for the year ended 31st Alay 2022 (continued) ResponslbSlltles of trustees A5 explained more fulty in the Statement of trustees, responsibilities. the trustees. who are 3150 thè directors of the harity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that theygive a true and fair view. and forsuch internal control as the trustees determine is neces$3ryto enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the finat)cial statements. the trustees are responsible for assessing the charity's ability to conttnue as a going concern, disclosing. as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative bul to do so. Audltorfs responslbllltles for the audlt ol the firnanclal statements Our objectives are to obtain reasonable assurance about whether the finarKial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance Ts a high level of assurance but is not a guarantee that an audit conducted in accordance wilh ISAS IUKI will always detect a material misstatement when it exists. Misstatement5 can arise from fraud or error and arÈtonsidered material if. individually or in the aggregate, they could reasonably be expected to iTrfluen￿the economic decisions of user5 taken on the basis of these finanual statements. A further description of our re5pon5ibilities for the auditof the financial statements is located on the Financial Reporting Council'5 website at http'.I/wL¥W.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Irre8ularities. including fraud. are instances of non-compliance wth laws and regulations. We design procedures in line with our responsibilities. outlined above. to detett material misstatements in respect of irregulaiities. includin8 fraud. The extent to which our procedures are capable of detetting irregularities. including fraud. is detailed below. Éxtent to which the audit was cons•dered capable of detedin8 irregularities indudin8 fraud We identify and assess the risks of material misstatement of the financial statements. whether due to fraud or error, and then design and perform audit procedures responsive to those risks. including obtaining audit evidence that is sufficient and appropriate to pro￿de a basis for our opinion. 151Page Mitchell Charlesworth (Audit) Limited Accountants 5 Temple Square Temple Street Liverpool L2 5RH LIVERPOOL FC FOUNDATION Independent Auditorfs Report to the Members of Liverp¢)ol FC Foundation for the year ended 31st May 2022 Icontlnuedl Identifying and asses￿nE potentlal rlsks related to irregularities In identifying and assessing risks of material misstatement in respert of irregularities. includtn8 fraud and non- compliance with laws and regulations, we considered the following= the nature of the industry and se￿or. control environment and business performance: the charity's own assessment of the risks that irregularitbes may occur either as a result of Iraud or error,. the results of our enquiries of management and members of the Board of Trustees of their own identification and assessment of the risks of irregularities.. any matters we identified havinB obtained and reviewed the charitys documentation of their policies and procedures relating to.. identifyiftg. eval¢Jating and complying wth laws and regulations and whether they were aware of any instances of non-compliance.. and detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud.. and the internal controls established to mitigate risks of fraud or non-cornpliance with laws and regulations- and the matters discussed among the audit engagement team regarding how and where fraud might occur in the rinancial staternents and any potential indicators of fraud. As a result of these procedures. we considered the opportunities and incentives that may exist within the organisation for fraud and identified thè greatest potential for fraud in the followng areas: lil The presentation of thè charity's Statement of Financial Artivities, lill the charity's accountin8 policy for revenue recognition,. and liiil the overstatement of salaryand other costs. In common with all audits under ISAS IUKI, we are also required to perform specific procedures to respond to the risk of management override. We also obtained an undefstanding of the legal and regulatory framework that the charity operates in. focusing on provisions ol those laws and regulations that had a d7rert effect on the determinatton of matèrial amounts and disclosures in the financial statements. The key laws and regulations we considered in thi5 wntext included the UK Companies Act and the Statement of Re¢ommerbded Prartice - 'Accountin8 and Reporting by Charities, issued by the joint SORP making body. In addition. we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the chariws ability to tyerate or to avoid a material penalty. These included Safeguarding and Datè Protection Regulations. 161Page Mitchell Charlesworth (Audit) Limited Accountants S Temple Square Temple Street Liverpool L2 SRH LIVERPOOL FC FOUNDATION Independent Auditorf5 Report to the Members of Liverpool FC Foundation for the year ended 31st May 2022 Icontinuedl Audit response io risks Idemlfied As a result of perforrning the above. we identified the presentation of the charity'5 Statement of Financial Activities, revenue re¢ognitFon and overstatement of wages and other tost5 as the key audit matters related to the potential risk of fraud. The key audit matters section of our report explains the rnatlers in more detail and also describe5 the specifK procedures we performed in response to those key audit matters. In addition to the above, our procedures to respond to risks identifted inclvded the following.. reviewin8 the financial statement disclosures and testing to supporting documentstion to assess compliance with relevant laws and regulations described above as having a direct effect on the financial ststements,. enquiring of management and members of the Board of Trustees concerning actual and potential litigation and claims- performing analytical procedures io identify any unusual or unexpected relationships that may indicate risks of material misstatement d¢Je to fraud- reading minutes of meetings of those charged 4wth 8oveinènce and reviewing correspondence with relevant authorities where Matters identified were significant.. in addressing the risk of fraud throu8h management override of controls, testing thè appropriateness of loumal entries and other adju5tments.' a55essin8 whether the judgement5 made in makin8 accounting estimates are indicative of a potential bi35- and evaluating the bu5ine55 ratiorbale of any significant transactions that are unusual or outside the normal course of busfrnes5. We also communicated relevant identified laws and reBulations and potential fraud risks to all en8a8ement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Use of our report This report is made solely to the charitable companrfs members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been tjndertaken so that we might state to the charitable 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 charitable company and the Charitable compan*s members as a body. for our audit work. for this report, or for the opinions we have formed. Philip L Grlfflths BA FCA DChA Senior Statutory Auditor On behalf of Mitchell Charlesworth (Audit) Limited Statutory Auditor 8 February 2023 171Pa8e LIVERPOOL FC FOUNDATION Statement of Flnancial Activities (including Income and Expenditure Account) For the year ended 31st May 2022 Vnrestricted Funds Restrirted Funds 2022 Total 2021 Total Notes Intome from: Donations and legacies Charitable artivities Other trading artivities Interest received 1.329.263 510.242 2,242,041 918 63.834 2.226.885 1.393.097 2,737.127 2,242,041 918 1.037.195 2.513.657 172,497 932 Total Income 4,082,464 2,290,719 6,373,183 3,724,282 Expendtture on: Raising funds Charitable activities 997,305 1.952,208 997.305 4,041,402 195,026 3,465,082 2,089,194 Total expendlture 2,949,513 2,089.194 5.038.707 3,660,108 Net Incomellexpenditurel 1,132,951 201,525 1,334,476 64,174 Transfers between fvnds 3.376 13,3761 Net movement in fvnds 20 1,136.327 198.149 1.334.476 64,174 Reconclllatlon of fvnds: Total funds brou8ht forward 20 1,515,070 325,730 1,840.8CKJ 1,776,626 Totsl funds ¢arried for¥Ard 2.651,397 523.879 3,175,276 1.840.800 All income and expenditure derives from continuing artivities. The statement of financial actiwties indudes all gains and losses recognised during the year. The notes on pages 22 to 37 form part of these financial statements 181Pa8e LIVERPOOL FC FOUNDATION Statement of Financial Activities lindudlne Income and Expenditure Account) For the year ended 31st May 2022 Comparative information in respert of the preceding period És as folbws.. Unrestrirted Funds Restrirted Fur￿$ 2021 Total 2020 Totsl Incomè from: Donations and legacies Charitable artivitles Other trading attivities Interest received 977.195 468.564 172.497 932 1.037,19S 2.513.657 172.497 932 343.888 1,571.206 438.814 8,233 2.045.093 Total income 1,619.188 2,105,094 3.724.282 2.362,141 Expendlture on- Rai5in8 funds Charitable activities 195.026 1.576.86S 195.026 3.465.082 254.212 3,009.154 1,888.217 Total expendlture 1.771.891 1.888.217 3.660.108 3,263,366 Net Income/lexpenditurel {152.7031 216,877 64,174 (￿1,225) Transfers between funds 113,6251 13,625 Net movemènt in funds 20 1166,3281 230,502 64,174 {901,2251 Recontiliation of funds: Total funds brought forward 20 1,681.397 95,229 1,776,626 2,677,851 Total funds carrled fonward l.S15.069 325.731 1.840.8 1,776,626 The notes on pages 22 to 37 form part of these financial statements LIVERPOOL FC FOUNDATION Balance Sheet As at 31st May 2022 Notes 2022 2021 Fixed asxts Intangible assets Tangible assets Investments 14 15 16 66,354 88.908 66.355 88,909 Current Debtors Cash at bank and in hand 17 704.293 3.251.922 309,374 2.277,548 3,956,215 2.586.922 Creditors Amounts fallin8 due wthin one year 18 847,294 835,031 t4et current assets 3,108,921 1,751,891 Nèt assets 3,175.276 1.840,800 Funds Unrestricted funds General funds Designated fund5 Restricted funds 20 20 20 2.501.397 150.0 523.879 1.365,070 150,000 325,730 Tolal funds 3.175,276 1,840,800 The financial statements were approved by the Board of Trustees and authorised for issue on 8 February 2023 and signed on its behalf by= Gavin Laws Trustee Company Registration Number.. 04587220 The notes on pages 22 to 37 form part ofihese finan¢ial statements 20IPage LIVERPOOL FC FOUNDATION Statement of Cash Flows For the year ended 31st May 2022 Note5 2022 2021 Cash flow from optratinÈ artivities 22 997.530 155.5291 Cash Ilow from In￿stIng artivities Payments to acquire tangible fixed assets Interest received 124,0751 919 161,4081 932 Net cash flow from 5nvesting acti¥•tle5 123,1561 160,4761 Net decrease in cash ab)d ¢ash equi¥alents 974,374 1116,CK)51 Cash and cash equivalents at 1st June 2021 2,277,548 2,393,5S3 Cash and cash equivalents at 31st May 2022 3,251,922 2,277,548 Cash and cash eqvivalents con51Sts of:_ Cash at bank 3.251,922 2,277,548 Cash and cash equivalents at 3tst May 2022 3,251,922 2,277,548 The notes on pages 22 to 37 form part.of these financial statements 211Page LIVERPOOL FC FOUNDATION Noles to the Financial Statements For the year ended 31st May 2022 Summary of si8nificant •C¢4)unlin6 policies General informalion and basis Ot preparation Liverpool FC Foundation is a company limited by 8uarantee, and a re8iStered charity in England and Wales. In the event of the ch3rity bein8 wound up. the liability in respert of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information on page l of these financial statements. The nature of the tharivs operations and principal activities are described in the Trustees, Report on page 4. The charity constitute5 a public benefit entity a5 defined by FRS 102. The financial statements have been prepared in accordance ¥wth Accounttng and Reporting by Charities.. Statement of Recommended Practice applicable to charitiès preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019. the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland {FRS 1021. the Companies Att 2rM)6. and UK Generally Accepted Accounting Practice. The financial statements are prepared on a going concem basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the charity, and rounded to the nearest £1. The significant accounting policies applied in the preparation of these finan¢ial 5taternents are set out below. These policies have been consistently applied to all years presented unless Otherwise stated. Funds Unrestricted funds are funds available for use at the discfetion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated tund is set out in the notes to the financial statements. Restrirted fund5 are fund5 which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each festricted fund is Set out in the note5 to the financial statements. In