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2022-06-30-accounts

Rugby Football Foundation

Registered number: 04608134

Annual Report and financial statements

For the year ended 30 June 2022

RUGBY FOOTBALL FOUNDATION

COMPANY INFORMATION

Trustees
P R Johnson
S K Williams
K L C Marlor
R Clarke
S Mazumder
Company registered number 04608134
Charity registered number 1100277
Registered office Rugby House
Twickenham Stadium
200 Whitton Road
Twickenham
Middlesex
TW2 7BA
Company secretary C R Skaife
Independent auditor BDO LLP
55 Baker Street
London
W1U 7EU

RUGBY FOOTBALL FOUNDATION

Page
CONTENTS
Trustees’ Report 4 - 14
Trustees’ responsibilities statement 15
Independent auditor's report 16 - 19
Statement of financial activities 20 – 21
Balance sheet 22
Notes to the financial statements 23 - 33

RUGBY FOOTBALL FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2022

Introduction

The trustees, who are also the directors for the purposes of company law, submit their report and the financial statements of the Rugby Football Foundation for the year ended 30 June 2022.

Structure, Governance and Management

Incorporation

The Rugby Football Foundation, a company limited by guarantee, (No. 4608134) was incorporated on 4 December 2002 by a Memorandum and Articles of Association, and is a registered charity (No. 1100277). The registered office of the charity is:

Rugby House Twickenham Stadium 200 Whitton Road Twickenham Middlesex TW2 7BA

Trustees

In accordance with the memorandum and articles, one third of the trustees are required to retire by rotation, determined by how long they have been in office since their last appointment or reappointment. If no trustee agrees to resign, the longest serving trustees are put forward for retirement. If the Rugby Football Union (RFU) does not fill the vacancy, the retiring trustee shall, if willing to act, be deemed reappointed, unless the RFU decides not to fill the vacancy or not to reappoint the trustee. In the year, the RFU did not fill the vacancy and P Johnson was willing to be reappointed to the board of trustees.

The appointment of trustees is determined by the RFU Board of Directors. Trustees are appointed on the basis of the expertise that they can bring to the charity. An induction for new trustees is provided with access to previous trustee papers and an overview of the charity and its operations.

The trustees who have served during the year and to the date of this report were:

P Johnson S Williams R Clarke K Marlor S Mazumder (appointed 23 December 2021) M Wharton (resigned 31 July 2021)

Any decision which materially affects the operation of the charity and its objectives is determined by trustees’ majority vote.

The Trustees delegate the day to day management of the Foundation to Sue Day (Chief Operational and Financial Officer) and Steve Grainger (Rugby Development Director).

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RUGBY FOOTBALL FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2022 (continued)

Objects and Activities of the Foundation

The objects of the Foundation are for the benefit of the public to:

The Foundation is a public benefit entity, the Trustee’s have considered the guidance on public benefit and confirm that they have complied with their duty.

Powers

To further its objects the Foundation may:

Community Rugby Programme

During the year, the Foundation signed an agreement with the RFU, whereby the RFU grants a set amount each year to fund community work to further the charitable purposes of the Foundation, as set out in the objects above. The agreement was signed in July 2021 and adjusted later on in the year once a better understanding on the ability to deliver the community work with the grant for the year being £18,523,000 (2021: £14,149,000).

The Foundation's charitable objects include promoting community participation in rugby for the benefit of the public. A subsidiary of the Rugby Football Union, Rugby Football Development Limited, has the expertise and experience to run a community rugby development programme which encourages community participation. The core purpose is to "strengthen our member clubs and to grow the game in communities around them." Underpinning this are six key drivers:

  1. Retaining & Developing Players.

  2. Recruiting New Players.

  3. Recruiting & Retaining High Quality Coaches, Volunteers & Referees.

  4. Effective & Efficient Facilities.

  5. Effective & Efficient Management and Governance.

  6. Integration with the Local Community.

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RUGBY FOOTBALL FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2022 (continued)

It is accepted that regular participation in sport improves health and is of public benefit. The programme includes initiatives to promote wider participation in rugby especially among 14-24 year olds, expanding rugby in schools through the All Schools Programme and to promote school/club links to encourage school leavers to continue playing rugby. Women's rugby is another area where the programme seeks to encourage and develop more opportunities for women and girls to play at all levels of the amateur game.

The Foundation contracted with Rugby Football Development Limited (RFDL) for delivery of an agreed programme during the year. The agreement was signed in July 2021 and updated once it was better understood on the ability to deliver the agreed programme. The fee for this service was £18,523,000 (2021: £14,149,000). The activity ensuing from this arrangement has given rise to the restricted funds seen in this year's financial statements. The 17th year of this programme (the programme started on 1st July 2005) has been a successful one, with Rugby Football Development Limited delivering the programme within budget, in accordance with the charitable objects of the Foundation, and to a standard deemed satisfactory by the trustees. Details of expenditure is provided in the quarterly financial report sent to Trustees. This quarterly review of expenditure allows the Trustees to analyse how the funds are being used to grow the game.

Annual Review

One of the RFU’s Strategic Priorities is to enrich lives by introducing more people to rugby union and developing the sport for future generations.

Through RFDL, we began the implementation of this strategy during one of the toughest periods in rugby union’s history. With a new staffing structure in RFDL in place, we are focusing on three key areas: helping clubs to be self-sustaining, the development of coaches and match officials, and the competition structure and player experience.

The recovery of rugby is of fundamental and critical importance. The community game is the lifeblood of our sport and needs simple, focused support that delivers real benefit, including support to become commercially innovative and self-sustaining and campaigns and programmes to attract new audiences to the sport.

Significant work has been carried out in reshaping community game leagues. What is needed now is a period of certainty and stability as we emerge from COVID-19 and the RFU takes the leadership role in reshaping and improving the game for the benefit of all involved.

It is critical to continually update our understanding of the experiences of all participants in the game. The National Rugby Survey of 8,000 players, volunteers and staff in the community game in January 2022 showed that 80% of adult male players were satisfied or very satisfied with their overall experience in rugby over the season. An impressive 93% of age grade players were satisfied or very satisfied with their overall season’s experience and 78% of clubs reported that they were in the same or a better financial position in 2021 compared to pre-COVID-19. We monitored match completion rates and player affiliations, analysed player and volunteer demographics, interviewed young players, volunteers and infrequent players to understand their experiences of the 2021-22 season.

Reshaping our adult men’s community game leagues responded to feedback from the game and, together with the introduction of new formats, including the Touch Union and Game On adaptations, aims to improve current players’ experiences and to attract new players.

The success of the Red Roses continues to support the women’s and girls’ game to grow, Allianz Inner Warrior has seen 23,000 women attend Inner Warrior camps since the programme began in 2016. These camps, run by clubs nationwide, continue to be a great introduction to rugby for those that have never played or who want to return to the sport.

Our Club Support Webinar and Virtual Workshop programme has been key in upskilling volunteers in the community game. A total of 28 sessions had 1,388 attending and 3,000 views of recordings which enabled people to watch at convenient times. To avoid webinar fatigue, we plan to have 50% of our support sessions

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RUGBY FOOTBALL FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2022 (continued)

held live and to evolve other approaches such as Zoom events. We developed two further support resources, Volunteer Recruitment and Welcoming Club, delivered to clubs locally by the Club Developers.

Attendances on training courses returned to pre-pandemic levels and changes to England Rugby Coaching and Refereeing Awards, including online support, webinars and communities of practice, alongside face-toface training, saw more effective support for coaches and referees. In total, we recorded over 70,000 engagements, with huge numbers accessing video guides and resources on social media feeds and YouTube. Following a 12-month hiatus, 226 people completed the 10-month England Rugby Advanced Coaching Award. More than a thousand have completed the new Introduction to Refereeing Course launched in March. In 2022-23, we will continue to support the growth of the women’s and girls’ game and, as part of the Rugby World Cup Legacy, aim to support over 500 women coaches and referees

The debenture donation campaign that extended into the current financial year, allowed the RFU to buy back 75-year Debenture Loans at their present-day value, with debenture holders directing that such amounts be donated to the charity, was a great success thanks to our loyal and supportive debenture holders.

COVID-19 has had an impact in the current financial year and is likely to impact in years to come. The main source of revenue and expenditure relates to the Community Rugby Programme which is provided by the Rugby Football Union (RFU). The RFU have reshaped their business structure in response to the pandemic however this will not mitigate the lost revenue they have suffered from being able to host England games at Twickenham Stadium with full attendance. Due to this reduction in revenue the level of grant being provided is likely to be reduced to reflect the lower revenues.

Groundmatch and other RFF Grants and Loan Schemes

The loans and grants direct to clubs have moved to RFU and RFDL respectively. This change only impacted new awards made from July 2019 and have not impacted awards made before this date which have remained with the RFF.

While the impetus of social spaces in community clubs continues to improve the welcome to the whole rugby family, there is a substantial investment in grass pitches as the weather patterns become more challenging for club groundspeople.

The Interest Free Loan Budget for 2021/22 was set at £100k. £nil in total was advanced during the year meaning the budget for 2022/23 was set at £100k.

The monitoring and managing of repayment of existing loans remains extremely efficient while being supportive of clubs in genuine difficulty. In extreme cases restructuring is negotiated, typically by reducing the amount or frequency of payments to make it financially viable for the club.

World Rugby Museum

The operations of the World Rugby Museum were limited during the year due to the COVID-19 impact with groups not returning in the current year due to a lack of uncertainty in the prior year of any future restrictions. This combined with the impact of Brexit that has caused a reduction in school tours coming from the continent.

The day-to-day management of the World Rugby Museum was transferred from the RFU to Twickenham Experience Ltd in September 2020. This has no impact on the oversight and policy making performed by the RFF.

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RUGBY FOOTBALL FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2022 (continued)

The All Schools Programme

CBRE All Schools was started in 2012 to introduce rugby and its core values into state secondary schools with the aim of linking them to rugby clubs. In the process, the target is to make school life healthier and happier, reduce anti-social behaviour, enhance learning and increase self-esteem for students. It is a key legacy programme for Rugby World Cup 2015 which presented a once in a generation opportunity to deliver the greatest participatory legacy for the game.

The target of taking rugby to a further 750 state secondary schools was reached in September 2019 and celebrated at Luton’s Lealands High School, with the campaign’s ambassador, the Duke of Sussex, present. Representatives from All Schools then featured on the Twickenham pitch at the England v Wales Six Nations game.

Rugby United Project

Across the country there are individuals and communities who are missing out what rugby has to offer. The benefits to physical and mental health, the friendships and social connections, and the values and life skills it embodies. They are missing out not because they don’t enjoy the game or have a preference to other sports but rather due to lack of engagement, a lack of opportunity, and barriers to entry which infer that rugby is not for them.

Being true to our principles of rugby as a game for all, we must keep striving to engage with all parts of society to show what makes our sport the joy and passion for millions across the country. We must show that everyone is welcome into all aspects of the game, from playing and coaching to volunteering at a club or becoming a match official.

The RFU has a rich history of active engagement to bring rugby to targeted demographics. Since 2012 the All Schools programme brought rugby into more state schools and increased exposure to lower socioeconomic groups, it has transitioned over 10,500 schoolchildren into a club setting. Since 2017 the Inner Warrior campaign helps clubs recruit female players and has already led over 25,000 women and girls to access rugby via Warrior Camps. This outreach work continues today as we seek new ways to attract participation and secure the future of the game.

A new project -Rugby United- will empower community clubs who are seeking to make long term cultural change in how they engage and become more accessible to their local communities, in order to attract players, coaches, volunteers, and match officials from Black and South Asian groups

.

RFU baselining research has revealed a particular gap in the population of Black and South Asian people involved in rugby, 4% vs 20% by population. This project will offer resources, guidance and an opportunity to share learnings for clubs who are invested in engaging Black and South Asian groups, welcoming them into the rugby family and sharing what the sport has to offer.

This project will focus on three strands of activity:

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RUGBY FOOTBALL FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2022 (continued)

Rugby United will create 30 local projects across England over the next three years with each local project involving 2-3 community clubs working together in a similar geographic area as well as involving local schools.

Through the work and learnings made from this project, the RFU will construct a new framework and guidance for how clubs can engage their local communities, particularly Black and South Asian groups that have not been exposed to rugby before. Rugby United will champion the value of inclusion, communities and players, to secure and grow the future of rugby clubs and the sport.

The trustees in the year designated £1,000,000 of unrestricted funds to be spent on the project with the aim that this will be matched by fundraising another £1,000,000 over the next four years.

Reserves

At the year end, the total reserves of the charity were £10,552,581 (2021: £9,897,265). £80,786 of this was restricted to specific purposes (2021: £151,019), leaving £10,471,795 available for the general purposes of the charity (2021: £9,746,246). The increase from prior year in unrestricted is mostly due to Debenture Donation Programme continuing for the first six months of the financial year.

The trustees have reviewed the level of unrestricted reserves that are appropriate for the Foundation. Reserves are needed to cover any excess of expenditure over income, whether due to timing differences or to shortfalls in funding. From 2019/20 onwards the RFU has ceased to make its annual donation towards grants as those grants are no longer administered through RFF. However, it will provide support should the unrestricted reserves not be sufficient to support normal business activities.

It had been determined that the minimum level of unrestricted reserves that should be held at any time must be at least equal to a year's interest charge on the current balance outstanding on the RFU loan and six months' worth of the budgeted operating expenses, plus the value of approved but unpaid grants at the year end. This policy is reviewed by a sub-committee of two trustees on a regular basis.

The RFU is committed to paying any RFF grants that have been approved but not paid at year end, as they fall due. Therefore the trustees' consider that the minimum level of unrestricted reserves as at 30 June 2022 to be £72,614. The actual level of unrestricted reserves at 30 June 2022 was £10,471,795 which is comfortably in excess of our minimum required level. The trustees note that the excess of actual reserves over the minimum required level is reasonable, given that the Foundation has contingent liabilities of £4,784 in the form of approved grants and 12 months of budgeted overheads of £8,750. There have been no grants or loans approved in the year as these projects are now operated out of RFU and RFDL respectively with any balance remaining relating to grants approved in prior years not yet paid. The significant reserves have been earmarked to be spent on the Community Rugby Programme through various projects under the ‘Rugby for Good’ headline over a period of time within the means of the charity. The ‘Rugby for Good’ banner captures the Rugby United Project as well as supporting initiatives selected by the debenture holders.

Restricted funds comprise four funds, the World Rugby Museum, the Community Rugby Programme, Rugby United and Supporting Women entering rugby. The Community Rugby Programme is for the promotion of participation in rugby for the benefit of the public and the World Rugby Museum is for the exhibition of historical information and artefacts relating to Rugby.

Rugby United Project intends to make a long-term cultural change in the club setting, making them more accessible and inviting to communities and groups who may not previously believed that rugby is a sport for them with the initial metrics based on social inclusion, empowerment and perception. The Supporting Women Entering and Participating into Rugby is with the aim to encourage Women to join and take part in rugby.

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RUGBY FOOTBALL FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2022 (continued)

Reserves (continued)

The brought forward values of restricted funds relate to the Community Rugby Programme, as each year the World Rugby Museum breaks even. For the year ended 30 June 2022 income for the World Rugby Museum was £413,233 and expenditure was £413,233. The Community Rugby Programme fund has income of £18,523,000 and expenditure of £18,619,270.

Investment policy

It is the policy of the Foundation to place its investments in cash deposits which provide appropriate liquidity and which are deemed to be of low risk.

Strategic Report

Achievements, Performance and Financial Review

During the year the RFF received a grant of £18,523,000 (2021: £14,149,000) from the RFU to fund community work that further the charitable purposes of the Foundation. The Foundation entered into a contract with Rugby Football Development Limited (RFDL) to the value of £18,523,000 (2021: £14,149,000) for RFDL to deliver that work. This included an extensive programme for the development of the community participation in amateur rugby including supporting grassroot clubs to improve the playing environment for participants, improve coaching standards and club management via its community rugby development programme and its grants/loan programme.

In shaping the objectives for the year and planning activities, the Trustees have considered the Charity Commission’s guidance on public benefit and fee charging and given careful consideration to ensuring that support is targeted to maximise community participation and ensure accessibility for those on low income.

The net movement in Unrestricted funds was a profit of £725,549 and in Restricted funds was a loss of £70,233 during the year.

As a one-off exceptional transaction in December 2020, the RFU started to approach existing debenture holders offering them the opportunity to sell some or all of their debenture loans at their present value to the RFU on the basis that they direct any proceeds due to them to the Rugby Football Foundation (RFF). The purpose of the campaign is to secure funding of grassroots rugby close to pre-COVID-19 levels in future years. The campaign has seen 6,014 debentures donated and the funds will be used for a number of projects across the community game.

During the year, largely due to the extension of the Debenture Donation campaign, the Foundation received donations to unrestricted funds amounting to £856,593 (2021: £9,418,554).

The Foundation has made capital grants, amounting to £nil (2021: £13,933), and interest free loans, amounting to £nil (2021: £18,600), to rugby clubs during the year. The capital grants were available to amateur clubs and focus on helping them sustain their current activities and increase participation

At 30 June 2022 the Foundation have approved no further capital grants (2021: nil), and no further loans (2021: nil).

With net current assets sitting at £10,162,995 on the 30 June 2022, the assets of the Foundation will be Total net assets of £10,552,581, showing a very good long term position.

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RUGBY FOOTBALL FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2022 (continued)

Achievements, Performance and Financial Review (continued)

The long-term plan is for the Foundation to utilize the excess funds to enter into initiatives to increase the participation levels of rugby across England e.g. Rugby United and targeted projects to facilitate the playing of rugby by ensuring the support is there e.g. first aiders programme, encouraging referee numbers etc. The spends will be spent down over a time in a sustainable and targeted manner to ensure maximum effect.

The trustees carefully managed in 2022/23 to ensure the Foundation is in the best possible position.

Going concern

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

The Charity’s operations are self-sustaining in usual business conditions, and had net assets and net current assets as at 30 June 2022. Based on the forecast scenarios prepared by the Charity, the Trustees have a reasonable expectation that the Charity will continue to operate and meet its liabilities as they fall due for the foreseeable future.

The charitable activities of the Charity are dependent on the ongoing operations of the Rugby Football Union (RFU), its ultimate parent undertaking, and until charitable activities resume to an appropriate level, the Charity is dependent on the RFU for financial support in the form of non-recall of intercompany balances and certain operating expenditure. The RFU has confirmed to the Trustees its intention to continue to provide funding and to not recall intercompany balances unless the Charity has the financial means to do so and otherwise meet its liabilities as they fall due. Further detail can be found in note 1.3.

Risk Management

The Trustees have carried out a review of the charity's activities which sets out the risks to which it is exposed.

As part of this review the Trustees have implemented a risk management strategy which comprises:

The Trustees confirm that procedures are in place to manage the major risks which have been identified.

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RUGBY FOOTBALL TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2022 (continued)

FOUNDATION

Risk Management (continued)

Risk Detail Mitigation Action
Governance Charity Commission judges RFF
governance insufficient.		 Governance Improvement
has been implemented
by CFO, RDD and L&G
Director.		 To be monitored by
the trustees through
meetings and
constant dialogue.
Reliance on
member
organisation
(RFU)		 Dependency on the member
organisation reduces the control over
income streams and broader support.
If the RFU and group companies
were to call in inter-company
balances owed this would put a
significant financial strain on the
Charity.		 · Regular engagement with
RFU board/RFF trustees.
· Providing value and
demonstrating this to the
RFU for the grant provided.
· Maintain the minimum
reserves.		 · Keep dialogue open
between RFU board
and RFF trustees.
· Ensure not to over
commit financially to
projects.
RFF/RFDL
Contract		 RFDL not able to fulfill
responsibilities as set out in
the contract and there is no
alternative provider available.		 RFDL overseen by
experienced Rugby
Development director and
team minimising
likelihood. RD director also
attends RFF board so
could flag any issues early
so that they could be
managed.		 The Rugby
Development Director
to continue to provide
regular updates at the
RFF trustees meeting.
People RFF has no dedicated staff resource
and relies on the RFU capacity to
fulfill RFU functions. Risk that RFU
could divert all resource to RFU
matters.		 RFU Executive staff attend
RFF board and now
overseeing operational
plan. Specifically,
Company Secretary
team making sure actions
are followed up.		 Company Secretary
keeping an up to date
action log with
updates being
provided to the
trustees at meetings.
Significant
adverse
event
in the game		 Significant event (such as
safeguarding incident or catastrophic
injury) is traced back to funding
through the RFF which has a
reputational impact.		 Incidents of this type
managed through central
RFU risk management and
monitored by Board		 The RFU have a
strong governance
structure that is
proactive to minimize
the risk of such an
event occurring.
Loan
defaults		 Increase in incidents of defaulting on
loan payments.		 Scrutiny and Due Diligence
in advance of loans made.
Active policy of
collaboration with clubs if a
default occurs.		 Quarterly meetings
between finance and
the development team
to manage clubs that
missed payments are
unable to pay with
discussions on how to
assist them.

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Devolved
fundraising
and
awareness
function		 RFF fundraising team is part of the
wider RFU fundraising team. This
potentially introduces the risk of lack
of strategic alignment in actions and
messaging.		 · RFF trustees represented
by day to day managers.
· Regular engagement with
the RFU to ensure
consistent approach,
included as part of
fundraising strategy set
with clear objectives linked
to foundations’ objectives.
· A donation framework
has been introduced for
background checks on
potential donors. The RFF
trustees were represented
on the collaboration in
creating the policy.		 · Management ensure
that the donation
framework is followed
on a day to day basis
· The framework for
donations will be
monitored regularly to
ensure it remains
appropriate and fit for
purpose.
Decision
making		 Decisions with implications on the
RFF are not made with appropriate
scrutiny.		 Governance Improvement
plan has been
implemented by CFO, RDD
and L&G Director.		 Governance plan
continued to be
followed and key
decisions are made
by the trustees in
meetings.
Risks to
grassroots
participation		 Growing and sustaining the
community game at all levels, both
men’s and women’s and across all
age grades, is critical for the future
success of rugby in order to develop
the elite players of the future, and in
order to make sure that as many
people as possible benefit from
involvement in the game of rugby.
There is increased competition from
other forms of leisure activity, and a
new generation of consumers who
have different expectations present
potential risks to our participation
levels unless we adapt accordingly.		 To appeal to the new
player and fan base, new
opportunities to play
different forms to appeal to
them. Technology is
supporting this strategy
with new ways of engaging
with individuals with rugby
content, delivered digitally.		 Review of how the
community program is
being delivered to
appeal to the new
player and fan base
and to retain current
players to ensure the
growth of the sport.
COVID-19
impact		 The pandemic has had a significant
impact on all aspects of the
Community game with it stopping for
a period of time.		 The return has been
successful however has
been impacted due to past
lockdowns.		 To continue to
monitor and work with
Government if
required.

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RUGBY FOOTBALL FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 30 JUNE 2022 (continued)

Risk Management (continued)

In order to mitigate and spread the risks of the Foundation, and, although generous support was received during the year from the Rugby Football Union, it is the intention of the Foundation to continue to seek additional alternative sources of funding in the coming year. A key element in the management of financial risk is the setting of a reserves policy and its regular review by Trustees.

Fundraising Activities

Section 1 62a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. The legislation defines fundraising as “soliciting or otherwise procuring money or other property for charitable purposes”. The Foundation does not undertake fundraising from the general public but from time to time does apply for grant funding from grant-awarding entities. Any such amounts receivable are presented in the financial statements as ‘voluntary income’ and includes legacies and grants.

In relation to the above we confirm that all solicitations are managed internally, without involvement of commercial participators or professional fundraisers, or third parties. The day-to-day management of all income generation is delegated to the executive team, who are accountable to the trustees. The Foundation is not bound by any undertaking to be bound by any regulatory scheme.

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RUGBY FOOTBALL FOUNDATION STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RESPECT OF FINANCIAL STATEMENTS

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

BDO LLP were appointed to act as auditor for the Foundation for the 2021/22 year. This appointment is reviewed annually by the board under advice from the Rugby Football Union.

Each of the Trustees at the date of approval of this report confirms that:

  1. so far as the Trustees are aware, there is no relevant audit information of which the Foundation’s auditors are unaware; and

  2. the Trustees have taken all steps that they ought to have taken as a Trustee to make themselves aware of any relevant audit information and to establish that the Foundation’s auditors are aware of that information.

This report was approved by the Trustees and signed on their behalf by:

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INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF RUGBY FOOTBALL FOUNDATION

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of Rugby Football Foundation (“the Charitable Company for the year ended 30 June 2022 which comprise the statement of financial activities (incorporating an income and expenditure account), the charity balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Charitable Company in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report and financial statements, other than the financial statements and our auditor’s report thereon. 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 any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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 there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material

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misstatement of this other information, we are required to report that fact. INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF RUGBY FOOTBALL FOUNDATION (CONTINUED)

We have nothing to report in this regard.

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ responsibilities, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Charitable Company’s ability to continue 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 but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial 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 is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

17

INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF RUGBY FOOTBALL FOUNDATION (CONTINUED)

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

18

INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF RUGBY FOOTBALL FOUNDATION (CONTINUED)

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s 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 Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

|[NU] DocuSigned[tralford.] by:

Jill Halford (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor London, UK Date: 20 December 2022 BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

19

RUGBY FOOTBALL FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2022

Note
Income:
Donations:
Donations from the RFU
2
Other donations
2
Total donations income
Income from charitable
activities:
World Rugby Museum
Total income
Expenditure:
Expenditure on raising
funds:
Fundraising costs
Expenditure on charitable
activities
5
Total expenditure
8
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
Restricted
funds
Total
funds
Total
funds
2022
2022
2022
2021
£
£
£
£
-
18,523,000
18,523,000
14,149,000
771,191
85,402
856,593
9,418,554
771,191
18,608,402
19,379,593
23,567,554
-
413,233
413,233
337,025
771,191
19,021,635
19,792,826
23,904,579
(9,077)
(59,365)
(68,442)
(216)
(36,565)
(19,032,503)
(19,069,068)
(14,691,892)
(45,642)
(19,091,868)
(19,137,510)
(14,692,108)
725,549
(70,233)
655,316
9,212,471
9,746,246
151,019
9,897,265
684,794
10,471,795
80,786
10,552,581
9,897,265

The Statement of Financial activities includes all gains and losses recognised in the year.

The notes on pages 23 to 33 form part of these financial statements.

20

RUGBY FOOTBALL FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2021

Income:
Donations:
Donations from the RFU
Other donations
Total donations income
Income from charitable activities:
World Rugby Museum
Total income
Expenditure on:
Raising funds
Fundraising costs
Expenditure on charitable activities
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
Restricted
funds
Total
funds
2021
2021
2021
£
£
£
-
14,149,000
14,149,000
9,418,554
-
9,418,554
9,418,554
14,149,000
23,567,554
-
337,025
337,025
9,418,554
14,486,025
23,904,579
(216)
-
(216)
(9,815)
(14,682,077)
(14,691,892)
(10,031)
(14,682,077)
(14,692,108)
9,408,523
(196,052)
9,212,471
337,723
347,071
684,794
9,746,246
151,019
9,897,265

The Statement of Financial activities includes all gains and losses recognised in the year.

The notes on pages 23 to 33 form part of these financial statements.

21

RUGBY FOOTBALL FOUNDATION BALANCE SHEET AS AT 30 JUNE 2022 REGISTERED NUMBER: 04608134

2022 2021
Note £ £
Fixed assets
Loans due from clubs 9 5,498,704 6,462,997
5,498,704 6,462,997
Current assets
Debtors 11 18,461,914 14,249,704
Cash at bank and in hand 2,402,682 1,940,279
20,864,596 16,189,983
Total assets 26,363,300 22,652,980
Current liabilities
Creditors: amounts falling due within one year 12 (10,701,602) (6,082,913)
Net current assets/(liabilities) 10,162,994 10,107,070
Long-term liabilities
Creditors: amounts falling due after more than one
year 13 (5,109,117) (6,672,802)
Total liabilities (15,810,719) (12,755,715)
Total net assets 10,552,581 9,897,265
Charity Funds
Restricted funds 15 80,786 151,019
Unrestricted funds 15 10,471,795 9,746,246
Total funds 10,552,581 9,897,265

The Charity’s financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees and are signed on their behalf by:

The notes on pages 23 to 33 form part of these financial statements.

22

RUGBY FOOTBALL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

1.1 General Information

The Rugby Football Foundation is a company limited by guarantee and registered in England and Wales, registration number 04608134, and registered charity number 1100277. The registered office is Rugby House, Twickenham Stadium, 200 Whitton Road, Twickenham, Middlesex, TW2 7BA.

1.2 Basis of preparation of financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities, Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019 (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Rugby Football Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Charity has taken advantage of the exemptions under Financial Reporting Standard FRS 102 from preparing a cash flow statement as it is a wholly controlled subsidiary and Rugby Football Union’s consolidated financial statements include the cash flows of the Charity.

The Charity’s financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements are prepared in sterling (£) and rounded to the nearest pound.

1.3 Going concern

The financial statements have been prepared on a going concern basis. The Charity is a member of a group that shares financial resources between group members. The ultimate controlling party has confirmed to the Trustees its intention to continue to provide funding to enable the charity to meet its liabilities as they fall due for the foreseeable future. The Trustees have therefore prepared the financial statements on a going concern basis. Should such funding from the ultimate controlling party not be forthcoming, the going concern basis of preparation may no longer be appropriate and significant adjustments may be required to these financial statements.

The charitable activities of the Charity are dependent on the ongoing operations of the Rugby Football Union (RFU), its ultimate parent undertaking, and until activities resume to an appropriate level, the Charity is dependent on the RFU for financial support in the form of non-recall of intercompany balances and certain operating expenditure. The RFU has confirmed to the Trustees its intention to continue to provide funding and to not recall intercompany balances unless the Company has the financial means to do so and otherwise meet its liabilities as they fall due.

The RFF has received over the past two financial years £8.3m of donations from debenture holders which have improved the unrestricted reserve to £8.0m with a further £1.7m transferred from unrestricted to restricted in the year with spend aimed at certain projects. This has provided the charity with a greater degree of certainty over the resources available and support the conclusion it is appropriate to prepare the financial statements as a going concern.

The Trustees have reviewed financial projections for the Rugby Football Union that show it will be able to provide this funding and have therefore prepared the financial statements on a going concern basis. These assessments have factored in a number of scenarios with upside and downside to differing degrees factored in for the next financial year and beyond. The RFU has two committed facilities with a combined value of £90m with its bankers which expire in October 2024 with an option to extend for two years.

23

RUGBY FOOTBALL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued)

1.3 Going concern (continued)

Notwithstanding this uncertainty, the Directors have a reasonable expectation that the Charity as part of the wider RFU Group will have adequate resources to continue in existence for a period of not less than 12 months from the date of approval of these financial statements and have concluded that it is appropriate to adopt the going concern basis of preparation of these financial statements.

The Charity’s financial statements do not include adjustments that would result if the Charity were unable to continue as a going concern.

1.4 Donations and grants receivable

Donations and grants are recognised in the Statement of Financial Activities when there is entitlement, receipt is probable and the amount can be measured with sufficient reliability.

1.5 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Foundation.

Designated unrestricted funds represent approved grants where payment is subject to the recipient meeting certain conditions which have not been met at year end.

Restricted funds are incoming resources receivable specifically for the Community Rugby Programme, other project grants and the operation of the World Rugby Museum, as discussed in the Trustees' report.

1.6 Expenditure

Expenditure, including irrecoverable VAT, is accounted for in the Statement of Financial Activities on an accruals basis and classified under headings which aggregate all the costs which relate to that heading. Payments under contract are recognised to the extent that the contract has been completed in the year in question.

Support costs include the costs relating to the general administration of the charity within its objectives as opposed to the costs of issuing grants, Community Rugby Programme and operation of the World Rugby Museum.

1.7 Loans

Fixed asset investments are programme related investments and are a form of financial instrument. They are initially recognised at their transaction cost. They are subsequently measured at cost less impairment.

1.8 Grants

Grants awarded to clubs are recognised as a liability when approved by the Trustees, are communicated to the recipient and are subject to conditions that fall outside the control of the Foundation. In instances where such conditions fall within the control of the Foundation, the commitment is noted within contingent liabilities, as opposed to being recognised as a liability.

1.9 Debtors

Short term debtors are measured at the transaction price, less any impairment. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.10 Creditors

Short term creditors are measured at the transaction price.

24

RUGBY FOOTBALL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued)

1.11 Accounting judgements and estimates

The Trustees consider the significant accounting judgements and estimates that are relevant to the charity to be the consideration of recoverable value of the loans to rugby clubs, together with the timings and amounts repayable to the charity. A full review of loans repayable by clubs is performed on a quarterly basis. This review will consider if the loan in part or in full has become irrecoverable, an impairment loss is recognised in the statement of financial activities. From this year’s review, management have concluded there is no impairment necessary.

Other significant accounting judgements and estimates include the appropriate recognition of income from grants and donations according to their criteria.

2. Donations

Debenture Donations
Gift Aid
Other donations
Sub total
Total donations
Debenture Donations
Gift Aid
Other donations
Sub total
Donations from the RFU
Total donations		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2022
2022
2022
2021
£
£
£
£
615,218
-
615,218
7,690,155
143,198
-
143,198
1,708,514
12,775
85,402
98,177
19,885
771,191
85,402
856,593
9,418,554
-
18,523,000
18,523,000
14,149,000
771,191
18,608,402
19,379,593
23,267,554
Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2021
2021
2021
2020
£
£
£
£
7,690,155
-
7,690,155
-
1,708,514
-
1,708,514
-
19,885
-
19,885
5,296
9,418,554
-
9,418,554
5,296
-
14,149,000
14,149,000
24,100,000
9,418,554
14,149,000
23,567,554
24,105,296

3. Taxation

The Charity is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the charity’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.

RUGBY FOOTBALL FOUNDATION

25

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued)

4. Trustees expenses

During the year, no (2021: nil) Trustee received out of pocket expenses (2021: £nil) relating to travel, accommodation and subsistence costs.

The Trustees received no remuneration during the year (2021: nil). One trustee is an employee of the RFU. The trustee receives a salary from the RFU however this is not in relation to their role as a trustee of the RFF.

In the prior year, one Trustee made a donation to the Charity as part of the debenture waiver campaign totaling £6,531 with additional Gift Aid claimed of £1,633.

5. Analysis of expenditure on charitable activities

World Rugby Museum
Grants to clubs (see note 6)
Community Rugby Programme (see
note 7)
Club loans - RFU loan interest
Bad Debt Provision
Support costs (see note 10)
Total		 Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
2022
2022
2022
2021
£
£
£
£
-
413,233
413,233
337,025
-
-
-
13,933
-
18,619,270
18,619,270
14,345,052
23,067
-
23,067
6,673
-
-
-
(24,029)
13,498
-
13,498
13,454
36,565
19,032,503
19,069,068
14,692,108

6. Grants to clubs

. Grants to clubs
Groundsmatch grants
Helping hand grants
Exceptional grants
Total		 2022
2021
£
£
-
13,933
-
-
-
-
-
13,933

No grants were awarded in 2021/22.

26

RUGBY FOOTBALL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued)

7. Community Rugby Programme

Expenditure on the Community Rugby Programme is made up of the following:

Community rugby funding
Legacy Partners - Area 4
All Schools Programme
Total		 2022
2021
£
£
18,523,000 14,149,000
-
5,350
96,270
190,702
18,619,270 14,345,052

Expenditure on Charitable activities, the Community Rugby Programme, was £18,619,270 (2021: £14,345,052), all of which was restricted (2021: All restricted).

8. Expenditure

Total expenditure includes the following charges

2022 2021
£ £
Auditors' remuneration 6,930 6,600

The auditor's remuneration is solely for the performance of the year-end audit.

9. Loans

The loans, which have been made to rugby clubs, are interest free and repayable over a maximum period of 15 years.

A reconciliation from last year's loans to this year's is set out below:

Loans due from clubs at 30 June
Loans repaid
Loans advanced
Loans written off
Loans due from clubs at 30 June		 2022
2021
£
£
6,462,997
7,442,600
(964,293)
(1,022,232)
-
18,600
-
24,029
5,498,704
**6,462,997 **

27

RUGBY FOOTBALL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued)

10. Support Costs

0. Support Costs
Professional fees
Insurance
Bank charges
Other
Total		 2022
2021
£
£
8,488
12,197
4,462
590
548
451
-
216
13,498
**13,454 **

All support costs have been identified as Governance costs for the basis of apportionment. The Charity does not have any employees.

11. Debtors: Amounts falling due within one year

Amounts owed by group undertakings (see note 17)
Prepayments and accrued income
Total
2. Creditors: Amounts falling due within one year
Amounts owed to group undertakings (see note 17)
Accruals and deferred income
Total
3. Creditors: Amounts falling due after more than one year
Secured loan from the Rugby Football Union		 2022
2021
£
£
16,984,757
12,541,190
1,477,157
1,708,514
18,461,914
14,249,704
2022
2021
£
£
10,675,407
6,056,137
26,195
26,776
10,701,602
6,082,913
2022
2021
£
£
5,109,117
6,672,802

12. Creditors: Amounts falling due within one year

13. Creditors: Amounts falling due after more than one year

The loan has been borrowed to fund advances to rugby clubs to develop their facilities. The loan bears interest at the Bank of England base rate, capped at 5 per cent, per annum. The repayment schedule of the loan is dependent on repayments from clubs but no repayments are due within the next year. The Foundation has the ability to borrow up to a maximum of £8,000,000 (2021: £8,000,000) from the Rugby Football Union.

28

RUGBY FOOTBALL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued)

14. Analysis of net assets between funds

Loans
Cash at bank and in hand
Debtors
Creditors due within one year
Creditors due in more than one year
Total
Loans
Cash at bank and in hand
Debtors
Creditors due within one year
Creditors due in more than one year
Total		 General &
Restricted
Total
Designated
funds
funds
Unrestricted
Funds
2022
2022
2022
£
£
£
5,498,704
-
5,498,704
2,402,682
-
2,402,682
1,397,726
17,064,188
18,461,914
6,281,800
(16,983,402)
(10,701,602)
(5,109,117)
-
(5,109,117)
10,471,795
80,786
**10,552,581 **
General &
Restricted
Total
Designated
funds
funds
Unrestricted
Funds
2021
2021
2021
£
£
£
6,462,997
-
6,462,997
1,940,279
-
1,940,279
1,708,514
12,541,188
14,249,702
6,307,258
(12,390,169)
(6,082,911)
(6,672,802)
-
(6,672,802)
9,746,246
151,019
9,897,265

15. Movement in funds

Unrestricted funds

At 1 July
Net surplus for the year
Transfer to designated funds
At 30 June		 General
Designated
Total
Total
Unrestricted
Unrestricted
Unrestricted
Unrestricted
funds
funds
funds
funds
2022
2022
2022
2021
£
£
£
£
9,578,674
167,572
9,746,246
337,723
582,351
143,198
725,549
9,240,951
(1,688,473)
1,688,473
-
-
8,472,552
1,999,243
10,471,795
9,578,674

29

RUGBY FOOTBALL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued)

15. Movement in funds (continued)

General
Designated
Total
Total
Unrestricted
Unrestricted
Unrestricted
Unrestricted
funds
funds
funds
funds
2021
2021
2021
2020
£
£
£
£
At 1 July
149,545
188,178
337,723
646,726
Net surplus/(deficit) for the year
9,429,129
(20,606)
9,408,523
(309,003)
Transfer to restricted funds
-
-
-
-
At 30 June
9,578,674
167,572
9,746,246
337,723
Restricted funds
2022
2021
£
£
At 1 July
151,019
347,071
Net (deficit) for the year
(70,233)
(196,052)
At 30 June
80,786
151,019
Restricted funds
2021
2020
£
£
At 1 July
347,071
594,407
Net (deficit) for the year
(196,052)
(247,336)
At 30 June
151,019
347,071
Community
Rugby
Programme
World
Rugby
Museum
All
Schools
project
Legacy
Partners
Area 4
Rugby
United
Support
Women
into
Rugby
Total
£
£
£
£
£
At 1 July 2021
-
-
114,023
36,996
-
-
151,019
Net (deficit)/surplus
in the year
-
-
(96,270)
-
25,109
928
(70,233)		 General
Designated
Total
Total
Unrestricted
Unrestricted
Unrestricted
Unrestricted
funds
funds
funds
funds
2021
2021
2021
2020
£
£
£
£
149,545
188,178
337,723
646,726
9,429,129
(20,606)
9,408,523
(309,003)
-
-
-
-		 General
Designated
Total
Total
Unrestricted
Unrestricted
Unrestricted
Unrestricted
funds
funds
funds
funds
2021
2021
2021
2020
£
£
£
£
149,545
188,178
337,723
646,726
9,429,129
(20,606)
9,408,523
(309,003)
-
-
-
-		 General
Designated
Total
Total
Unrestricted
Unrestricted
Unrestricted
Unrestricted
funds
funds
funds
funds
2021
2021
2021
2020
£
£
£
£
149,545
188,178
337,723
646,726
9,429,129
(20,606)
9,408,523
(309,003)
-
-
-
-
9,578,674 167,572
9,746,246
337,723
2022
2021
£
£
151,019
347,071
(70,233)
(196,052)
80,786
151,019
2021
2020
£
£
347,071
594,407
(196,052)
(247,336)
151,019
347,071
Legacy
Partners
Area 4
Rugby
United
Support
Women
into
Rugby
Total
£
£
£
£
36,996
-
-
151,019
-
25,109
928
(70,233)
At 30 June 2022
-
-
17,753		 36,996
25,109
928
80,786

30

RUGBY FOOTBALL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued)

15. Movement in funds (continued)

Community World All Legacy Rugby Support Total
Rugby Rugby Schools Partners United Women
Programme Museum project Area 4 into
Rugby
£ £ £ £ £
At 1 July 2020 - - 304,725 42,346 - - 347,071
Net (deficit) in the - - (190,702) (5,350) - - (196,052)
year
At 30 June 2021 - - 114,023 36,996 - - 151,019

Restricted funds compromise of four funds, the World Rugby Museum, Community Rugby Programme (covering All Schools Project and Legacy Partners Area 4), Rugby United and Support Women entering into Rugby.

The Community Rugby Programme is for the promotion of participation in rugby for the benefit of the public and the World Rugby Museum is for the exhibition of historical information and artefacts relating to Rugby. Rugby United Project intends to make a long term cultural change in the club setting, making them more accessible and inviting to communities and groups who may not previously believed that rugby is a sport for them with the initial metrics based on social inclusion, empowerment and perception. The Debenture Donation Projects is a portion of the donation that has been restricted by the holders electing three projects for the funds to be spent on: grow referee numbers, supporting clubs grow the number of volunteers and grow the number of first aiders.

The brought forward values of the restricted funds relate to World Rugby Museum and Community Rugby Programme. The carried forward balance additionally includes the Rugby United Project and Debenture Donation Projects.

For the year ended 30 June 2022, the World Rugby Museum had income of £413,233 and expenditure of £413,233.

The Community Rugby Programme had income £18,523,000 and expenditure of £18,619,270.

Designated unrestricted funds represent 2 areas the first are approved grants where payment is subject to the recipient meeting certain conditions, which have not been met at year end. At the year-end these monies had not been paid and will be accounted for in 2022/23 provided that the conditions are met to the Foundation's satisfaction.

The second are funds that have been allocated for spend by the Trustees in the year on a number of projects. £1m has been designated by the Trustees to the Rugby United project with the intention to make long-term cultural change in the club setting, making them more accessible and inviting to communities and groups who may not have previously believed that rugby is a sport for them with initial metrics based on social inclusion, empowerment and perception. The remaining designation and receipt in the year of £688,473 has been designated by the Trustees after the Debenture Holders who donated voted for three projects to be spent on: growing referee numbers, supporting clubs grow the number of volunteers and grow the number of first aiders at club.

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RUGBY FOOTBALL FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued)

16. Contingent Liabilities

The Charity has classified the grant received from the Rugby Football Union, for the community rugby development programme, and the fee paid to Rugby Football Development Limited, as restricted funds.

Prior to 30 June 2022 the Rugby Football Foundation approached the Rugby Football Union to ascertain whether or not they would require that the net surplus/ (deficit) be returned to them, as is their right under the signed grant agreement. Consultation with the Rugby Football Union has confirmed that this will not be the case and therefore provision has not been made for this amount.

As explained in the Trustees' report, the Foundation no longer approves grants (2021: £nil) or loans (2021: £nil) although are committed to paying any grants and loans that have been approved but not paid, as they fall due.

17. Related party transactions

2022 2021
£ £
Amounts owed by RFU 16,984,757 12,541,190
Amounts owed by IPF - -
Amounts owed by RFDL - -
Amounts owed to RFU 5,109,117 6,672,802
Amounts owed to IPF 5,187 5,188
Amounts owed to RFU - loan interest 19,265 18,656
Amounts owed to RFDL 10,670,219 6,050,949

The Foundation is a quasi-subsidiary of the Rugby Football Union. All transactions conducted with the Rugby Football Union and Rugby Football Development Limited (a fully owned subsidiary of the Rugby Football Union) have been summarised in the table above and are disclosed as amounts owed by/to group undertakings within debtors and creditors.

In the year the following related party transactions have occurred:

18. Status of the company

The company is limited by guarantee.

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RUGBY FOOTBALL FhopefuOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 (continued)

19. Ultimate controlling party

The Rugby Football Foundation is limited by guarantee, so has no share capital and therefore no legal controlling party. On the basis of the Company being considered to be a quasi-subsidiary of the Rugby Football Union, its financial results and position are consolidated into the Group accounts of the Rugby Football Union. Copies of these Group accounts can be obtained from Rugby House, Twickenham Stadium, 200 Whitton Road, Twickenham, Middlesex, TW2 7BA, UK. RFU is a registered society in England (company number IP27981R).

The Directors consider the Company's ultimate controlling party to be the Rugby Football Union, the governing body for rugby in England.

20. Financial instruments

The Charity has basic financial instruments including debtors, creditors and intragroup balances. All debtors and creditors are financial instruments measured at amortised cost.

The Charity is exposed to credit risk in relation to financial assets such as debtors and intragroup receivables.

The Charity is not exposed to significant interest rate or foreign currency rate risk.

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