2021-06-30-accounts

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

2

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Contents

	Page
Message from the Chair and Chief Executive	3
The year at a glance	4
Trustees’ Annual Report	5
– Charitable objectives	5
– Achievements and performance	5
– Plans for the future	7
Structure, governance and management	8
Finance review	10
Independent auditor’s report	12
Statement of financial activities	16
Balance sheet	17
Statement of cash flows	18
Notes to the financial statements	19

3

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Message from the Chair and Chief Executive

The past 12 months have been a year like no other for the families that we support in our community as they felt the impact of the pandemic and lockdown on their health, wellbeing, and social connections. Through these challenging months Albion in the Community has focussed on how we can best help people to get active, keep learning and staying well.

In 2021, the charity was named Best Football Community Scheme: Premier League at the Football Business Awards; this is the fifth time in six years that Albion in the Community has won its category at the football industry’s main annual showcase.

We have once again been reminded of how important our role is within the local community. As one family told us during the lockdown about their daughter who has spina bifida: “Lily doesn’t cope very well with change and found lockdown very challenging, so Albion in the Community’s support has been invaluable.”

“Lily doesn’t cope very well with change and found lockdown very challenging, so Albion in the Community’s support has been invaluable.”

Albion in the Community currently delivers 60 different initiatives and projects in the local community. The charity is widely regarded as one of the leading sporting charities in the UK and is one of the largest third sector community football schemes in the country.

A recent social and economic impact report that we commissioned from experts at Marshal Regen Ltd and the University of Chichester found the charity was having a positive impact on the local community in Sussex worth more than £28million a year. Based on an annual investment by Albion in the Community of over £3million, the report found the charity created £8.84 of social value for every £1 it received in grants or donations.

The charity is also considered an example of best practice in its sector in terms of safeguarding and governance and has worked with the Premier League and the British Standards Institute to help develop a kite mark for charity governance.

Despite the challenges in our society that have emerged because of the Covid pandemic, we are confident that this charity has the skills, resources, and expertise to continue to provide the vital support that is needed in these times. Football has the power to bring people together, inspire and engage in ways that many others cannot, and we are aware of the huge responsibility we hold to use this as an important engagement tool for our local communities.

Finally we would like to thank our staff and senior management team for their continuing hard work and commitment during the past very challenging 12 months. The importance of our role in the community has been heavily underlined throughout this period and everyone at AITC has worked exceptionally hard to ensure that those affected by the pandemic –particularly those who are most vulnerable have been contacted and have had support provided through this period.

Martin Perry Chair of trustees

Matt Dorn Chief Executive

4

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

The year at a glance

208 online sessions delivered.

4 902 , children participating in our community football programme.

1357 , people reached through our health initiatives. 394 participants in our disability football programme.

15 807 , followers on social media. 17549 , participants in our programmes.

Over 500 volunteers support our work. activity sessions delivered 6,627 in person. paid 172 staff.

activity sessions delivered in person.

5

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Trustees’ Annual Report

Vision

Our vision is to see lives changed in our communities through the power of football. We believe that we will achieve this by helping people to get active, learn new skills and live well in our communities.

Charitable objectives

Albion in the Community is the official charity of Brighton & Hove Albion, a Premier League football club based in the city of Brighton and Hove, in Sussex.

The charity uses the power of football and the popularity of Brighton & Hove Albion to inspire people to participate in physical activity, to raise the aspirations of our local community and to support people’s wellbeing.

It has been providing vital support to its local community for almost 30 years, reaching more than 40,000 people each year. The charity’s governing document, the memorandum and articles of association sets out its purposes for the benefit of the inhabitants of the City of Brighton and Hove, Sussex and elsewhere through:

• The advancement of education.

• The preservation and protection of good health.

• To provide or assist in the provision of facilities in the interests of social welfare for the recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disability, financial hardship or social circumstances with the object of improving their conditions of life.

• To promote such other purposes as are charitable under the law of England and Wales from time to time in particular through an association with football.

Values

We deliver our charitable objectives and vision with the following values:

• Teamwork

• Exceeding expectations

Achievements and performance

As with every charity, business and family in the UK, the Covid-19 pandemic has continued to cast a shadow over the work of Albion in the Community, its delivery, beneficiaries, and its finances during 2020-2021. Despite the operational and social challenges that the pandemic has created, we have still been able to deliver a rich programme of activities within our communities throughout Sussex. In total, delivering 6,627 activity sessions within the 12 month period.

Football participation

Many of the people who attend Albion in the Community’s regular sessions do so because they want to be more active. For example, 394 people took part in one of the charity’s 30 regular football sessions for people with a disability, benefiting from specialist coaching support and the chance to have fun, learn new skills, and make new friends. For many of these junior and adult players, the ability to get active and play sport on such a regular basis is key to managing their conditions and improving their overall health and wellbeing. In some cases, working with Albion in the Community has also drastically improved participants’ mobility and, while the focus is on getting active, the wider benefits of taking part in sport also have a huge impact on the lives of the charity’s participants off the pitch - helping raise aspirations, provide respite and support for family members, and teaching important life skills which can help at school or in accessing employment.

Albion in the Community successfully continued its work targeting young people living in areas of deprivation. More than 800 children and teenagers have taken part in one of the charity’s free football sessions which take place weekly at 40 venues across Sussex. Removing the financial barrier to regular participation in sport has proved vital in helping reach young people who may not otherwise engage with local support services. As well as providing free football, Albion in the Community’s coaches also offer mentoring, support, and guidance, and the charity delivers regular workshops on subjects like substance-misuse and discrimination.

Albion in the Community has also worked hard to encourage more girls to play football and participate in sport. Throughout the year 1,233 girls played football at one of the charity’s regular sessions.

• Aiming high

• Acting with integrity

• Making it special

More than 2,700 children and young people also attended a regular football session with Albion in the Community,

6

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Trustees’ Report

including many for whom that weekly session was their only form of structured, regular exercise.

Education and employability

Albion in the Community has a long and proud history of working with local schools while also providing people with an alternative to traditional further education.

The charity’s work with local schools involves a range of different projects and programmes including a thriving after school club programme which engaged 1,371 during the year.

Community after the initial ten-weeks of sessions has finished. During the year 238 people took part in Brighter Outlook.

Bespoke wellbeing support was also provided for 147 families to help improve healthy habits and follow a healthier diet. Support was provided on both a one-to-one basis and, in a group, setting to help people meet their health goals. In addition, 124 young people living in high need areas received one-to-one mentoring support who are referred to us by partner agencies to help them to develop the personal skills and support networks they need to achieve and move forward in their lives.

It also delivers the hugely popular Premier League Primary Stars and Premier League Inspires initiatives in Sussex, both of which use football and the popularity of the Premier League and, in this case, Brighton & Hove Albion, to engage pupils and students in their academic studies.

1,143 local pupils took part in Premier League Primary Stars, and 386 in Premier League Inspires.

Albion in the Community also works hard to train and upskill local teachers, particularly in the area of school sport and physical education; 44 teachers benefited from this training during the pre-lockdown period of this report.

The charity also works hard to support further education and employability with 99 young people aged under 21 years old supported with qualifications and additional support. A further 54 people over 21 years old were also supported as part of a programme of 154 vocational qualifications provided to local people.

Community wellbeing

Thousands of people benefit from Albion in the Community’s wellbeing programmes each year. Nowhere is that impact felt more keenly than among the participants on the charity’s Brighter Outlook project – an initiative which provides free, specialist support to anyone looking to stay active before, during, or after cancer treatment.

Research shows several significant benefits to staying active during this time, including improved mental health and a decreased risk of disease recurrence. Help is provided either on a one-to-one basis, or as a group activity, and anyone taking part is given on-going support by Albion in the

7

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Trustees’ Report

Plans for the future

While it has been a challenging year for Albion in the Community and the families that it supports because of the pandemic, there is no doubt that demand for activities that support wellbeing, in school learning and physical activity are needed more than ever as all aspects of our society recover from the impact of lockdown.

The charity heads into 2021/22 seeing an increase in demand for its activities and with a desire to meet the emerging needs of our communities.

A renewed focus on how the charity can use football to help people to get active, be used as engagement tool and context for learning in class and to support mental wellbeing is at the forefront of the charity’s plans for 2021/22.

During the upcoming period there will be a refresh of the charity’s long-term strategy, following the successful completion of the previous five-year plan, to drive significant and lasting change for the communities it serves postpandemic.

8

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Structure, governance, and management

Governing document

Fundraising

The organisation is a charitable company limited by guarantee, registered as a charity with the Charity Commission on 22 August 2005.

The company was established under a memorandum of association that established the objects and powers of the charitable company and it is governed under its articles of association.

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 30 June 2021.

Trustees

The charity’s fundraising activities are vital to generate restricted and unrestricted funds to deliver its charitable objectives and continue to improve the lives of people in our community. This is achieved by providing a comprehensive fundraising programme through which people can pledge their support by direct donation and participation in challenge events.

Albion in the Community is registered with the Fundraising Regulator and adheres to the standards outlined in the Fundraising Code of Practice.

No third parties were paid to undertake fundraising activities on behalf of Albion in the Community and there were no complaints received during the 2020-21 reporting year relating to the fundraising practice of the charity.

New Trustees are appointed according to the charity’s governing document, and to meet specified capability requirements. New Trustees go through a formal induction and training process and are encouraged to meet the charity’s beneficiaries to hear their experiences first-hand.

All Trustees give their time voluntarily and receive no benefits from the charity. No trustee claimed expenses from the charity in 2020-21.

A chief executive is appointed by the trustees to manage the day-to-day operations of the charity.

There were no changes in the trustee board during the year in review, however on 26 July 2021 D A Jones resigned from his roles as Trustee and Company Secretary. Two new trustees, P Bancroft and R A Read were appointed to the board on the same date, and P Baldwin was appointed Company Secretary.

Public benefit

The Trustees have referred to the guidance contained in the Charity Commission’s guidance on public benefit when reviewing the charity’s aims and objectives and in planning its future activities.

It is the opinion of the Trustees, that this report demonstrates how the charity provides public benefit.

9

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Structure, governance, and management

Reference and administrative details

Trustees

M J Perry (Chair) P Bancroft (appointed 26 July 2021) P C Frier D A Jones (resigned 26 July 2021) A R McCarthy P J Mullen R A Read (appointed 26 July 2021) J Richards S J Sheehan M Sugarman

Secretary

P Baldwin (appointed 26 July 2021) D A Jones (resigned 26 July 2021)

Senior Management Team

M Dorn – Chief Executive P Baldwin – Head of Finance and Operations M Barkaway – Head Marketing and Income Generation

Principal Office

American Express Community Stadium Village Way Brighton BN1 9BL

The charity is incorporated in England and Wales.

Company Registration Number

05122343

Charity Registration Number

1110978

Auditor

Chisnall Comer Ismail & Co Chartered Accountants & Registered Auditors Maria House 35 Millers Road Brighton BN1 5NP

10

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Finance review

The charity generated £3,142,810 (2020: £3,438,564) of income during the financial year, enabling it to invest £3,114,945 (2020: £3,406,936) of funds into delivering its work throughout Sussex. The charity generated a surplus of £27,865 (2020: £31,628) and increased its reserves to £685,963 at the year end. The charity has worked hard to develop sustainable income streams to ensure the long-term impact of its work remains secure, and this is reflected in a strong financial performance within a challenging economic climate.

The establishment of Brighton & Hove Albion FC as a Premier League club continues to have a positive effect on the charity through an increase in profile, both locally and nationally. It is not considered the charity’s long-term financial sustainability is dependent on the club’s top-flight status.

How the pandemic impacted the charity’s finances

As a result of the restrictions imposed from the national lockdown, the charity faced a considerable loss of income from charitable activity through the suspension of fee-based football programmes, the cancellation of scheduled mass participation fundraising events, the closure of schools and other venues for community delivery and the restrictions in place on social interaction.

The charity’s senior management and board of trustees were able to mitigate the financial risk to the charity by adapting delivery models, reducing costs, accessing the government’s Job Retention Scheme and successful fundraising for emergency funds.

Albion in the Community was able to ensure it fully delivered against its contractual targets for existing projects which had received grants and funding from external organisations. This not only meant that participants were given vital support in line with what had been expected and was needed, but also meant the charity was not left in the position of having to reimburse awarded funding.

Albion in the Community also played a key role in facilitating a local campaign to raise and distribute funds for local causes to help them navigate the pandemic through the creation of the Albion As One fund – an initiative launched by players of Brighton & Hove Albion FC and the club’s board of directors. After an initial donation by the players and club board members, Brighton & Hove Albion fans contributed by making donations or by waiving the right to ticket refunds to matches now forced to be played behind closed doors. This money was then

distributed as a crisis fund to local charities including Albion in the Community.

As a result of these interventions, the good governance structures in place, and the dedication of staff, the charity has been able to mitigate against the financial loss incurred without the need to draw down the financial reserves of the organisation. It is anticipated that through good management we will continue to deliver these vital services into 2022 without seeing the charity’s reserves fall outside of the reserve policy range.

Financial instruments

The charity’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Working capital

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity may use a mixture of long-term and short-term debt finance. Further details regarding liquidity risk can be found in the Statement of Accounting Policies in the financial statements.

The charity currently has no working capital facilities with any bank.

Cash flow is reviewed weekly with a monthly rolling forecast for the next 12 months.

No working capital deficiencies have been identified in the coming years.

Credit risk

The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables.

An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a

11

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Finance review

reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit rating agencies.

The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Remuneration – How we decide how much to pay our staff

Albion in the Community has a remuneration committee, comprising of the Chair of trustees and an elected member of the board of trustees. This committee meets annually to determine the remuneration for the entire staff team. The committee takes responsibility for ensuring that the charity pay levels are appropriate and competitive, and to recommend any potential annual cost of living increase.

This committee sets the salaries of the key management staff and reviews these arrangements on an annual basis. These salaries are benchmarked against comparative roles within the sector.

Reserves policy

The charity’s policy is to maintain an appropriate level of reserves to support the ongoing activities of the organisation. This is in order to:

along with the current and projected future levels of income and expenditure.

The charity’s available reserves at year end totalled £685,963, of which £679,340 were unrestricted. This is in line with the charity’s reserves policy.

Despite the financial impact of the Covid-19 pandemic, the charity’s reserve policy continues to remain within the same range for the year ahead. The policy will be reviewed on a regular basis in 2021/2022 by the Board of Trustees in light of the rapidly changing situation with the pandemic.

Statement of Trustees’ Responsibilities

The trustees (who are also the directors of Albion in the Community for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year. 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 charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

• Select suitable accounting policies and apply them consistently.

• Observe the methods and principles in the Charities SORP.

• Provide a sustainable and appropriate level of working capital.

• Allow for periods of unexpected drops in planned income.

• Cope with unexpected and short-term increases in planned expenditure.

• Provide cover for other risks, contingencies, or unforeseen events.

The charity’s policy and determination of the required level of reserves are set in accordance with Charity Commission guidelines and are reviewed by the trustees at each board meeting.

The current policy is to hold reserves within a range from £470,000 to £950,000 and that this is adequate for the charity to operate and considers any risks to which the charity is exposed,

• Make judgements and estimates that are reasonable 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 concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The annual report was approved by the trustees of the charity on 22 April 2022 and signed on its behalf by:

................................................................................................................. M J Perry - Trustee

12

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Independent Auditor’s Report to the Members of Albion in the Community

Opinion

We have audited the financial statements of Albion In The Community (the ‘charity’) for the year ended 30 June 2021, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, 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 United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and applicable law (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company’s trustees, 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 charity’s trustees 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 its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the financial statements:

• Give a true and fair view of the state of the charity’s affairs as at 30 June 2021 and of its results for the year then ended.

• Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.

• Have been prepared in accordance with the requirements of the Companies Act 2006.

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 are independent of the charity in accordance with the ethical requirements that are 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• The trustees use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• The trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, 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.

In connection with our audit of the financial statements, 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 or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

13

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Independent Auditor’s Report to the Members of Albion in the Community

• The information given in the Trustees’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The Trustees’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report.

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

• Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• The financial statements are not in agreement with the accounting records and returns; or

• Certain disclosures of trustees remuneration specified by law are not made; or

• We have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the (set out on page 11), the trustees 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise noncompliance with applicable laws and regulations;

• We identified the laws and regulations applicable to the charity through discussions with management and those charged with governance, and from our knowledge and experience of charitable concerns;

• We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act 2022, the Charity SORP, the Companies Act 2006, the Child Protection Act, Disability Discrimination Act, data protection, anti-bribery, employment and health and safety legislation;

• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

In preparing the financial statements, the trustees are responsible for assessing the charity’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 charity or to cease operations, or have no realistic alternative but to do so.

To address the risk of fraud through management bias and override of controls, we:

• Performed analytical procedures to identify any unusual or unexpected relationships;

• Tested journal entries to identify unusual transactions;

14

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Independent Auditor’s Report to the Members of Albion in the Community

• Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of those charged with governance and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

• Agreeing financial statement disclosures to underlying supporting documentation;

• Reading the minutes of meetings of those charged with governance;

• Enquiring of management as to actual and potential litigation and claims; and

• Reviewing correspondence with relevant regulators. and the charity’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards

Auditor’s responsibilities for the audit of the financial statements

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.

15

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Independent Auditor’s Report to the Members of Albion in the Community

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

.......................................................................................................

T G Humphries ACA FCCA (Senior Statutory Auditor) For and on behalf of Chisnall Comer Ismail & Co, Statutory Auditor

Maria House 35 Millers Road Brighton East Sussex BN1 5NP

Date: 22 April 2022

• Conclude on the appropriateness of the trustees use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the charity to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the charity audit. We remain solely responsible for our audit opinion.

16

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Statement of Financial Activities for the Year Ended 30 June 2021

(Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

	Note	Unrestricted funds (£)	Restricted funds (£)	Total 2021 (£)
Income and Endowments from:
Activities for generating funds	3	1,649,413	997,997	2,647,410
Investment income	4	3,665	-	3,665
Fundraising		447,322	44,413	491,735
Total Income		2,100,400	1,042,410	3,142,810
Expenditure on:
Charitable activities	5	(1,974,703)	(1,040,300)	(3,015,003)
Governance costs	5	(21,786)	-	(21,786)
Support costs	6	(78,156)	-	(78,156)
Total expenditure		(2,074,645)	(1,040,300)	(3,114,945)
Net income / (expenditure)		25,755	2,110	27,865
Net movement in funds		25,755	2,110	27,865
Reconciliation of funds
Total funds brought forward		653,586	4,513	658,099
Total funds carried forward	14	679,341	6,623	685,964
	Note	Unrestricted funds (£)	Restricted funds (£)	Total 2020 (£)
Income and Endowments from:
Activities for generating funds	3	1,821,120	1,003,048	2,824,168
Investment income	4	5,012	-	5,012
Fundraising		327,047	282,337	609,384
Total Income		2,153,179	1,285,385	3,438,564
Expenditure on:
Charitable activities	5	(2,029,239)	(1,288,163)	(3,317,402)
Governance costs	5	(24,612)	-	(24,612)
Support costs	6	(64,922)	-	(64,922)
Total expenditure		(2,118,773)	(1,288,163)	(3,406,936)
Net income / (expenditure)		34,406	(2,778)	31,628
Net movement in funds		34,406	(2,778)	31,628
Reconciliation of funds
Total funds brought forward		619,180	7,291	626,471
Total funds carried forward	14	653,586	4,513	658,099

All of the charity’s activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 14.

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021 17 Balance Sheet Balance Sheet as at 30 June 2021 Note 2021 (£) 2020 (£) Fixed assets Tangible assets 11 75,824 119,670 Current assets Debtors 12 294,332 414,543 Cash at bank and in hand 1,101,188 790,120 1,395,520 1,204,663 Creditors: Amounts falling due within one year 13 (785,380) (666,234) Net current assets 610,140 538,429 Net assets 685,964 658,099 Funds of the charity: Restricted funds 6,623 4,513 Unrestricted income funds Unrestricted funds 679,341 653,586 Total funds 14 685,964 658,099 These accounts are prepared in accordance with the special provision of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

Balance Sheet

The financial statements on pages 16 to 26 were approved by the trustees, and authorised for issue on Friday 22 April 2022 and signed on their behalf by:

.......................................................................................................

P J Mullen - Trustee

18

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Statement of Cash Flows for the Year Ended 30 June 2021

	Note	2021 (£)	2020 (£)
Cash flows from operating activities
Net cash income		27,865	31,628
Adjustments to cash flows from non-cash items
Depreciation	6	48,156	34,678
Investment income	4	(3,665)	(5,012)
		72,356	61,294
Working capital adjustments
Decrease / (increase) in debtors	12	120,211	163,171
(Decrease) / increase in creditors	13	119,146	(151,514)
Net cash flows from operatingactivities		311,713	72,951
Cash flows from investing activities
Interest receivable and similar income	4	3,665	5,012
Purchase of tangible fixed assets	11	(4,310)	(40,431)
Net cash flows from investingactivities		(645)	(35,419)
Net increase in cash and cash equivalents		311,068	37,532
Cash and cash equivalents at 1 July		790,120	752,588
Cash and cash equivalents at 30 June		1,101,188	790,120

All of the cash flows are derived from continuing operations during the above two periods.

19

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Notes to the Financial Statements for the Year Ended 30 June 2021

1. Charity Status

The charity is a company limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

Donations and other receipts from fundraising are reported gross and are accounted for on a receivable basis. Grant income received from HMRC for the Jobs Retention Scheme are to cover administration costs and are shown as charitable activities within the unrestricted funds.

Grants receivable

2. Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Albion in the Community 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 notes.

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Gift Aid

Incoming resources from tax reclaims are included in the Statement of Financial Activities at the same time as the gift to which they relate.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Going concern

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’ meetings and reimbursed expenses.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Income from contracts held is recognised when the charity has entitlement to the funds and any performance conditions attached to the contract have been meet.

Income received in advance of a provision of a specified service is deferred until the criteria for income recognition is met.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

20

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Notes to the Financial Statements for the Year Ended 30 June 2021

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class	Depreciation method and rate
Plant and machinery	25% on cost
Computer costs	33% on cost
Motor vehicles	25% on cost

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.

Trade debtors

Trade debtors are recognised when funding or donations arise that transfer economic benefits to the charity. These are measured at transaction value.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees’ discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

3. Activities for generating funds

Income from charitable activities

Unrestricted funds

	General (£)	Restricted funds (£)	Total 2021 (£)	Total 2020 (£)
Health	323,292	112,277	435,569	370,153
Schools	157,218	217,248	374,466	388,977
Disability	150,193	100,492	250,685	254,464
Skills training and employability	440,166	-	440,166	504,856
Football pathway	413,470	29,553	443,023	615,908
Inclusion	52,513	297,426	349,939	393,362
HMRC Grant for Job Retention Scheme	353,562	-	353,562	296,448
	1,890,414	756,996	2,647,410	2,824,168

4. Investment income

Unrestricted funds

	General (£)	Total 2021 (£)	Total 2020 (£)
Interest receivable and similar income;
Interest receivable on bank deposits	3,665	3,665	5,012

21

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Notes to the Financial Statements for the Year Ended 30 June 2021

5. Expenditure on charitable activities

Unrestricted funds

	Note	General (£)	Total 2021 (£)	Total 2020 (£)
Governance costs	7	21,786	21,786	24,612
	Unrestricted funds
	General (£)	Restricted (£)	Total 2021 (£)	Total 2020 (£)
Staff and coaching costs	1,350,629	1,040,300	2,390,929	2,503,735
Programme delivery costs	289,383	-	289,383	626,538
Operational costs	244,691	-	244,691	187,129
Charitable activities	1,884,703	1,040,300	2,925,003	3,317,402

£1,884,703 (2020 - £2,029,239) of the above expenditure was attributable to unrestricted funds and £1,040,300 (2020 - £1,288,163) to restricted funds.

6. Support costs

Unrestricted funds

	Note	General (£)	Total 2020 (£)	Total 2020 (£)
Rent and rates		30,000	30,000	30,000
Depreciation of plant and machinery		18,638	18,638	6,604
Depreciation of offce equipment		29,518	29,518	28,318
		78,156	78,156	64,922

7. Analysis of governance and support costs

Governance costs

Unrestricted funds

	General (£)	Total 2021 (£)	Total 2020 (£)
Audit fees
The audit of the charity’s annual accounts	9,600	9,600	9,300
Accountancyfees	12,186	12,186	15,312
	21,786	21,786	24,612

22

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Notes to the Financial Statements for the Year Ended 30 June 2021

8. Net incoming/outgoing resources

Net incoming resources for the year include:

Net incoming resources for the year include:
	2021 (£)	2020 (£)
Operating leases - other assets	30,000	30,000
Audit fees	9,300	9,300
Depreciation of fxed assets	48,156	34,292

9. Staff costs

The aggregate payroll costs were as follows:

The aggregate payroll costs were as follows:
	2021 (£)	2020 (£)
Staff costs during the year were:
Staff and coaching costs	2,099,800	2,193,026
Staff NIC (Employers)	162,113	189,399
Staff pensions	58,220	66,170
Consultancyand other staff costs	70,796	55,140
	2,390,929	2,503,735

The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:

	2021 (No)	2020 (No)
Permanent Staff	72	75
Casual Staff	100	101
	172	176

The number of employees whose emoluments fell within the following bands was:

		2021	(No)	2020	(No)
£60,001	- £70,000		1		1
£80,001	- £90,000		1		1

10. Taxation

The charity is a registered charity and is therefore exempt from taxation.

23

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Notes to the Financial Statements for the Year Ended 30 June 2021

11. Tangible fixed assets

11. Tangible fxed assets
	Offce furniture	Motor vehicles (£)	Total (£)
	and equipment (£)
Cost
At 1 July 2020	274,765	45,650	320,415
Additions	4,310	-	4,310
At 30 June 2021	279,075	45,650	324,725
Depreciation
At 1 July 2020	155,095	45,650	200,745
Charge for theyear	48,156	-	48,156
At 30 June 2021	203,251	45,650	248,901
Net book value
At 30 June 2021	75,824	-	75,824
At 30 June 2020	119,670	-	119,670

12. Debtors

	2021 (£)	2020 (£)
Trade debtors	114,782	45,957
Prepayments	5,344	-
Other debtors	174,206	368,586
	294,332	414,543

13. Creditors: amounts falling due within one year

13. Creditors: amounts falling due within one year
	2021 (£)	2020 (£)
Trade creditors	161,377	37,182
Other taxation and social security	62,067	175,817
Other creditors	37,055	17,718
Accruals	524,881	435,517
	785,380	666,234

24

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Notes to the Financial Statements for the Year Ended 30 June 2021

14. Funds

14. Funds
	Balance at	Incoming	Resources	Balance at
	1 July 2020 (£)	resources (£)	expended (£)	30 June 2021 (£)
Unrestricted funds
General
General fund	653,586	2,100,400	(2,074,645)	679,341
Restricted funds
Inclusion programmes	-	288,309	(288,309)	-
Football participation programmes	-	63,766	(63,766)	-
Education programmes	929	286,787	(287,716)	-
Health programmes	-	146,347	(140,962)	5,385
Disability programmes	3,584	212,788	(216,372)	-
Communityfund	-	44,413	(43,175)	1,238
Total restricted funds	4,513	1,042,410	(1,040,300)	6,623
Total funds	658,099	3,142,810	(3,114,945)	685,964
	Balance at	Incoming	Resources	Balance at
	1 July 2019 (£)	resources (£)	expended (£)	30 June 2020 (£)
Unrestricted funds
General
General fund	619,180	2,153,179	(2,118,773)	653,586
Restricted funds
Inclusion programmes	-	404,983	(404,983)	-
Football participation programmes	-	63,360	(63,360)	-
Education programmes	-	223,360	(222,431)	929
Health programmes	7,291	152,613	(159,904)	-
Disability programmes	-	158,732	(155,148)	3,584
Communityfund	-	282,337	(282,337)	-
Total restricted funds	7,291	1,285,385	(1,288,163)	4,513
Total funds	626,471	3,438,564	(3,406,936)	658,099

The specific purposes for which the funds are to be applied are shown on page 24:

25

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Notes to the Financial Statements for the Year Ended 30 June 2021

Inclusion programmes

We provide free weekly football and mentoring to people facing barriers to regular participation, including teenagers living in areas of deprivation, adults with historic substance misuse problems, or people experiencing challenges with their mental health. Many of our inclusion projects combine free weekly football with mentoring, regular lifestyle workshops and personal development courses. Funding is obtained from a variety of sources, including, but not limited to, the Premier League Charitable Fund and FIFA.

Football participation programmes

We endeavour to encourage people - particularly children and teenagers - to be physically active on a regular basis. This is often achieved by using the popularity of football or the appeal of Brighton & Hove Albion to motivate and encourage our participants. Sessions run throughout Sussex, with particular emphasis on increasing participation in traditionally underrepresented groups, such as teenage girls.

Education programmes

Among our varied education programmes are football themed numeracy and literacy lessons for local pupils, a project encouraging more girls to continue studying STEM subjects, and several nationally accredited further education qualifications offered to local people.

Health programmes

The health programmes aim to improve the mental and physical health of local people of all ages. Each programme is specifically tailored to address the bespoke health needs of communities in hyper-local geographical areas. Support and funding comes from several partner organisations.

Disability programmes

We are the largest provider of football opportunities to people with a disability living in Sussex, with 30 regular sessions now taking place. These are aimed at adult and junior players and offer participation at several stages of competitiveness, including regional and national levels. Our work is split into pan-disability sessions which are open to anyone with a disability, and disability-specific sessions, which allow participants to play within their own peer group and with tailored support appropriate to their needs. Many of our disability-specific sessions are also an introduction to national competition and development structures, which tend to overwhelmingly be organised along disability-specific lines.

Community fund

Money raised through donations to support local community initiatives.

15. Analysis of net assets between funds

Unrestricted funds

	General (£)	Restricted funds (£)	Total Funds (£)
Tangible fxed assets	75,824	-	75,824
Current assets	1,388,896	6,623	1,395,519
Current liabilities	(785,380)	-	(785,380)
Total net assets	679,340	6,623	685,963

26

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 2021

Notes to the Financial Statements for the Year Ended 30 June 2021

16. Related party transactions

Albion in the Community were charged by The Brighton and Hove Albion Football Club Ltd £30,000 (2020 - £30,000) for the rent of office facilities.

Three of the Trustees and Directors of Albion in the Community, are also Directors of The Brighton and Hove Albion Football Club Ltd, D A Jones, P Mullen and M L Sugarman. On 26 July 2021 D A Jones resigned from his role as Trustee and Director of Albion in the Community.

Albion in the Community were charged by The Brighton and Hove Albion Football Club Ltd £209,753 (2020 - £135,214) for programme delivery costs.

Included in creditors are amounts owed to The Brighton and Hove Albion Football Club Ltd amounting to £25,997 (2020 - £12,894).

The Brighton and Hove Albion Football Club Limited were charged by Albion In the Community £35,000 (2020 - £53,082) for services provided.

Included in debtors are amounts owed from The Brighton and Hove Albion Football Club Ltd amounting to £5,833 (2020 - £2,917).

P Bancroft and R A Read were appointed as Trustees and Directors of Albion in the Community on 26 July 2021. Four of the Trustees and Directors of Albion in the Community, are also employed by Brighton & Hove Albion Football Club Ltd. P Mullen is employed by Brighton & Hove Albion Football Club Ltd as Chief Operating Officer, P Bancroft is employed by Brighton & Hove Albion Football Club Ltd as Women’s and Girls’ General Manager, R A Read is employed by Brighton & Hove Albion Football Club Ltd as Head of People and Culture, and M Perry is employed by Brighton & Hove Albion Football Club Ltd as Honorary Vice President.

Albion in the Community received £Nil (2020 - £62,500) in grants from a charity, the Bloom Foundation. Mr M Sugarman and Mr A G Bloom are trustees of the Bloom Foundation.

The Brighton and Hove Albion Football Club Limited made donations to Albion In the Community totalling £982 (2020 - £58,786).

Albion in the Community, American Express Community Stadium, Village Way, Brighton BN1 9BL. Tel: [phone]. Company limited by guarantee in England and Wales (No. 5122343). Registered charity in England and Wales (No. 1110978).